Commonwealth Numbered Regulations - Explanatory Statements

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AIRPORTS REGULATIONS (AMENDMENT) 1997 NO. 104

STATUTORY RULES 1997 No. 104

Issued by the authority of the Minister for Transport & Regional Development

Airports Act 1996

Airports Regulations (Amendment)

Section 252 of the Airports Act 1996 (the Act) allows the Governor-General to make regulations prescribing matters that are required or permitted by the Act to be prescribed, or that are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Act imposes limitations on, amongst other things, the ownership of leased airports by foreign persons. The ownership provisions of the Act are set out in Part 3 of the Act and the Schedule to the Act.

Part 3 limits foreign ownership of an "airport-operator company" (ie a lessee or management company for a leased airport) to 49%. It obliges airport-operator companies to take all reasonable steps to ensure that the limit is not exceeded, and provides for a penalty of $50,000 for a breach of this obligation. It also provides for the Minister or an airport-operator company to apply to the Federal Court for remedial orders if the limit is exceeded.

The Airports Regulations (Amendment) provides a mechanism under which the Minister may give an airport-operator company a period of grace of up to 180 days to adjust its foreign ownership level where necessary to ensure compliance with the 49% limit. The Regulations recognise the difficulties faced by listed companies in complying with strict limits.

Details of the Regulations appear in the Attachment.

The Regulations commenced on notification in the Gazette.

Attachment

Clause 1 -Amendment

Regulation 1.1 provides that the Airports Regulations are amended as set out in these regulations. These regulations will commence an Gazettal.

Clause 2 - New Part 3

Regulation 2.1 inserts into the Airports Regulations a new Part 3, which is set out in the Schedule.

SCHEDULE - NEW PART THREE TO BE INSERTED

The schedule contains details of the new Part 3.

PART 3 - OWNERSHIP OF AIRPORTS

Division 3.1 - If unacceptable foreign ownership situation exists

Clause 3.01 - Minister to give notice before applying to Court

Subregulation 3.01(1) requires that the Minister give an airport-operator company written notice, if he or she forms the opinion that the 49% limit on foreign ownership may be exceeded by the company, before applying to the Federal Court for remedial orders.

Subregulation 3.01(2) provides that the notice may among other things state that, unless the company provides the Minister within 180 days of the notice evidence that establishes to the Minister's reasonable satisfaction that the limit is not breached, the Minister may apply to the Federal Court for remedial orders.

Clause 3.02 - Airport-operator company's obligations not affected

Subregulation 3.02(1) clarifies that the giving of notice under regulation 3.01 does not detract from the obligation of an airport-operator company under the Act to take all reasonable steps to comply with the 49% limit on foreign ownership.

Subregulation 3.02(2) clarifies that the giving of notice under regulation 3.01 does not detract from the Commonwealth's ability to prosecute an airport-operator company at any time for a breach of its obligation to take all reasonable action to comply with the limit.

While prosecution action would not normally be considered within the 180 day period of grace, this regulation enables prosecutions to be brought in appropriate cases.