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2008
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SYDNEY AIRPORT DEMAND MANAGEMENT AMENDMENT BILL 2008
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Infrastructure, Transport,
Regional Development and Local Government
the Honourable Anthony Albanese, MP)
SYDNEY AIRPORT DEMAND MANAGEMENT AMENDMENT BILL 2008
OUTLINE
The Sydney Airport Demand Management Act 1997 (the Act) sets the maximum movement
limit to apply at Sydney Airport outside the curfew period and provides for the monitoring of
compliance with that limit. The Act also facilitates the implementation of a regime for the
allocation of slots and compliance through the establishment of the Slot Management Scheme
and the Compliance Scheme.
The Australian National Audit Office (ANAO) tabled its report into the Implementation of the
Sydney Airport Demand Management Act 1997 in March 2007. The ANAO findings
highlighted the complex nature of aircraft operations and the need for flexibility to maintain
certainty for airline schedules, maximise operational efficiency and avoid unnecessary
disruption of scheduled passenger services, while implementing arrangements designed to
alleviate the impact of aircraft noise on the community.
In particular, the ANAO found that working definitions for key terms in both the Sydney
Airport Demand Management Act 1997 (the Act) and the slot management and compliance
schemes associated with the Act are inconsistent and that criteria for the allocation of slots are
not sufficiently clear.
The primary purpose of the Sydney Airport Demand Management Amendment Bill, which
amends the Act, is to clarify the operation of the slot management regime and allow
resolution of the administrative issues identified by the ANAO. The amendments will
provide for a slot management approach that is consistent with international practice and is
based on the scheduled arrival and departure time of an aircraft at the gate. The concept of a
"gate movement" will relate to the allocation of slots and slot compliance. The concept of an
"aircraft movement" will be maintained for enforcing the movement cap, but the allocation of
"gate movements" will need to have regard to the corresponding "aircraft movements" to
ensure that the allocation of slots is consistent with the movement cap.
There will be no change to the maximum movement limit which will continue to be a measure
of aircraft movements on and off the runway.
The Bill also provides the Minister with the power to vary the operation of the compliance
regime should it become necessary in exceptional circumstances and enables the compliance
regime to apply to certain gate movements occurring during the curfew period.
The Bill will enable the Minister to delegate his power to appoint the Compliance Committee
to the Secretary or Senior Executive Service officer in the Department. The Compliance
Committee consists of seven members and is chaired by the Department. The Committee
comprises representatives of domestic, regional and international airlines, Airservices
Australia and Sydney Airport Corporation Limited. The members are not appointed by the
Government and each member is nominated by their respective organisation. Changes to the
membership of the Committee are generally the result of personnel changes in the respective
organisations. In these circumstances, the delegation will simplify the process for the
appointment of members to the Compliance Committee.
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Financial impact statement
There is no financial impact.
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SYDNEY AIRPORT DEMAND MANAGEMENT AMENDMENT BILL 2008
NOTES ON CLAUSES
Clause 1: Short Title
1. Clause 1 is a formal provision specifying the short title of the Act.
Clause 2: Commencement
2. Clauses 1 to 3 will commence on the day on which the Act receives Royal Assent. The
items in the Schedule will commence on a day to be fixed by Proclamation. If the Act
does not commence within 6 months from the day on which this Act receives the Royal
Assent, they commence on the first day after the end of that period.
Clause 3: Schedule
3. This provision provides for amendments to the Sydney Airport Demand Management Act
1997.
SCHEDULE 1 - Amendments
Item 1 - Subsections 4(1) and (2)
This item clarifies that the maximum movement limit is specifically related to aircraft
movements.
Item 2 - Subsection 4(3)
This item specifies that penalties in Part 3 relate to offences in relation to gate movements.
Item 3 - Subsection 4(5)
This item adds that Part 5 will also deal with the ability of the Minister to determine
modifications of the Compliance Scheme.
Item 4 - Subsections 6(4)
This item provides that "aircraft movements" that are associated with "gate movements"
which are exempt from the slot provisions by Division 5 of Part 3 of the Act will not be
counted for the purposes of monitoring the maximum movement limit.
Item 5 - Subsection 6(5)
This item provides that the Slot Management Scheme is to be consistent with the maximum
movement limit.
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Item 6 - Subsection 8(4)
This item will correct a misstatement of the short title of the Legislative Instruments Act 2003.
Item 7 - Part 3 (heading)
This item reflects that penalties will relate to offences in relation to "gate movements".
Item 8 - Section 10
This item will clarify the relationship between the Sydney Airport Demand Management Act
1997 and the Sydney Airport Curfew Act 1995 for the purposes of determining offences under
the Act.
If a gate movement and its associated aircraft movement are scheduled to occur during the
curfew period between 11pm and 6am, a slot is not required to be allocated for the gate
movement and the aircraft movement will be regulated under the provisions of the Curfew
Act.
If a slot has been allocated for a gate movement because the gate movement and its associated
aircraft movement were scheduled to occur outside the curfew period and that gate movement
actually occurs during the curfew period then the gate movement is subject to the civil penalty
provisions of the Demand Management Act. If the associated aircraft movement also occurs
during the curfew period it will be regulated by the Curfew Act. If the associated aircraft
movement requires a dispensation under the Curfew Act but does not get the dispensation
then neither the gate movement nor the aircraft movement can occur in the curfew period.
If a gate movement and its associated aircraft movement are scheduled to occur during the
curfew period in accordance with authorisations under sections 12 and 13 of the Curfew Act
but the gate movement actually occurs outside the curfew period then that gate movement is
not subject to the civil penalty provisions of the Demand Management Act.
With the exception of those movements that are exempt under the Demand Management Act,
all aircraft movements during the non-curfew period will be monitored for the maximum
movement limit.
Item 9 - Subsection 11(1)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 10 - Subsection 11(2)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 11 - Paragraph 11(2)(b)
This item removes the suggestion that an off-slot movement is related to an aircraft
movement.
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Item 12 - Subsection 11(3)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 13 - Paragraph 11(3)(b)
This item removes the suggestion that an off-slot movement is related to an aircraft
movement.
Item 14 - Subsection 11(4)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 15 - Subsection 11(6)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 16 - Subsection 11(6) (note)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 17 - Section 12
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 18 - Section 13
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 19 - Section 29
This item reflects that the definitions of take off and land are removed and that the terms are
replaced by the concept of a "gate movement".
Item 20 - Paragraph 29(b)
This item reflects that the definitions of take off and land are removed and that the terms are
replaced by the concept of a "gate movement".
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Item 21 - Paragraph 30(a)
This item clarifies that if an emergency aircraft leaves from Sydney Airport in response to an
emergency then the return of that aircraft to Sydney Airport is a movement in connection with
the emergency and the flight does not require a slot to be allocated.
The return flight will also not be counted for the purposes of monitoring the maximum
movement limit.
Item 22 - Subsection 31(1)
This item reflects that the definitions of take off and land are removed and that the terms are
replaced by the concept of a "gate movement".
Item 23 - Subsection 31(1)
This item reflects that the definitions of take off and land are removed.
Item 24 - Subsection 31(2)
This item reflects that the definitions of take off and land are removed and that the terms are
replaced by the concept of a "gate movement".
Item 25 - Subsection 33(2)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport. The allocation of slots must also take into account
the maximum movement limit for aircraft movements.
Item 26 - Subsection 34(1)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 27 - Subsection 34(1)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 28 - Subsection 34(3)
This item provides that other laws will apply to gate movements as well as aircraft
movements.
Item 29 - Subsection 35(1)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
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Item 30 - Subsection 35(1)
This item removes the reference to "other than movements during the curfew period" because
the phrase is unnecessary since a slot cannot be issued for a gate movement that is scheduled
to occur in the curfew period.
Item 31 - Subsection 35(1A)
This clause replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 32 - After Subsection 35(1A)
This item inserts a new subsection which specifies that slots must not be allocated for gate
movements scheduled to occur during the curfew period.
Item 33 - Subsection 35(2)
This item clarifies that the maximum movement limit relates to aircraft movements.
Item 34 - Subsection 35(4)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 35 - Subsection 35(8)
This item clarifies that the maximum movement limit relates to aircraft movements.
Item 36 - Subsection 36(1)
This item clarifies that the maximum movement limit relates to aircraft movements.
Item 37 - Subsection 46(3)
This item clarifies that the maximum movement limit relates to aircraft movements.
Item 38 - Subsection 46(6)
This item will correct a misstatement of the short title of the Legislative Instruments Act 2003.
Item 39 - Subsection 49(1)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
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Item 40 - Subsection 49(6)
This item removes the requirement for the Compliance Scheme to include definitions of take
off and land. The definitions are not necessary on the basis of the new definition of a slot as a
gate movement.
Item 41 - New Division 3
This item enables the Minister to make a determination to modify the operation of the
Compliance Scheme. Such a modification would only be used in relation to potential off-slot
movements where there are considered to be exceptional circumstances. Exceptional
circumstances will be events, such as major changes to the operations of all airlines for
reasons beyond the airlines' control, that impact on airline on-time performance for a period
of time. The last similar occasion was immediately following September 11 and the collapse
of Ansett in 2001.
The ability to vary the Compliance Scheme will not affect no-slot movements and all gate
movements (except those exempted by the Act) will require a slot to be allocated for the day
of operation.
A determination under this provision will be a legislative instrument under the Legislative
Instruments Act 2003 with the exception of the disallowance provisions. The urgency and
immediacy of the determination warrant an exemption from the disallowance provisions. The
determination and the associated statement of reasons will be registered on the Federal
Register of Legislative Instruments and be subject to the tabling and sunset provisions of the
Act.
Item 42 - Paragraph 70(1)(a)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 43 - Saving of section 70
This item ensures that an evidentiary certificate by the Slot Manager made before the
commencement of this item continues to have effect.
Item 44 - Section 71
This item enables the Minister to delegate his power to appoint the members of the
Compliance Committee under subsection 66(3) of the Act to the Secretary of the Department
or a Senior Executive Service officer in the Department.
Under section 71 of the Act, the Minister has the power to delegate his powers to give
approvals and make determinations in relation to amendments of the Slot Management
Scheme under section 44 of the Act and to give approvals and make determinations in relation
to amendments of the Compliance Scheme under section 58 of the Act.
This clause also clarifies that the Minister may delegate one or more of his powers to the
Secretary or a member of the Senior Executive Service of the Department.
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Item 45 - Saving of existing delegations
This item ensures that any delegations issued under section 71 of the Act before the
commencement of this item continues to have effect.
Item 46 - Paragraph 74(2)(d)
This item enables regulations to prescribe penalties not exceeding 50 penalty units for
offences against the regulations.
Item 47 - Clause 1 of Schedule 1 (paragraph (a) of the definition of aircraft movement)
This item reflects that landing is no longer a defined term.
Item 48 - Clause 1 of Schedule 1 (paragraph (b) of the definition of aircraft movement)
This item reflects that taking off is no longer a defined term.
Item 49 - Clause 1 of Schedule 1
This item inserts a new definition of associated to link "aircraft movement" and a
corresponding "gate movement".
Item 50 - Clause 1 of Schedule 1 (at the end of the definition of Compliance Scheme)
This item includes in the definition of Compliance Scheme any determinations that are made
by the Minister under new subsection 59A(1).
Item 51 - Clause 1 of Schedule 1
This item inserts a new definition of "gate movement" to reflect a scheduled gate movement
as the time that an aircraft operator is scheduled to arrive at or depart from Sydney Airport.
Item 52 - Clause 1 of Schedule 1 (definition of land)
This item removes the definition of land.
Item 53 - Clause 1 of Schedule 1 (definition of operator)
This item replaces "aircraft movement" with the concept of a "gate movement". A slot is a
permission for a scheduled gate movement or the time that an aircraft operator is scheduled to
arrive at or depart from Sydney Airport.
Item 54 - Clause 1 of Schedule 1 (definition of take off)
This item removes the definition of take off.
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