Warren Truss (Wide Bay, National Party, Shadow Minister for Infrastructure and Transport and Local Government) Share this | Link to this | Hansard source

The Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008 implements elements of the previous coalition government’s 2005 aviation discussion paper. It will address some regulatory issues associated with oversight of the system of international airline licences and mandatory airline insurance. The international airline licence system, established under the Air Navigation Act 1920 and its accompanying regulations, ensures that scheduled international air services occur in accordance with bilateral air services agreements struck between Australia and our international aviation partners.

There are, however, inefficiencies associated with the administrative framework of international airline licences. One such problem is that, once issued, international airline licences remain in force indefinitely and the conditions associated with that issuance are difficult to vary. This has led to licences remaining in force even though the airlines they were issued to have ceased to exist or to operate services to Australia. Licences also may not reflect new requirements, creating discrepancies based on the time of issuance. Interestingly, this system of perpetual licensing was introduced in 1994 by the Keating Labor government, and the previous coalition government recognised the need for it to be modernised.

This bill will end perpetual licensing. It will implement a scheme where existing international airline licences will be cancelled and reissued with standardised and updated conditions. The bill will enable the making of regulations to achieve this objective. Airlines will have to demonstrate their compliance with safety, security and insurance regulations to be reissued with a licence. This change will ensure that international airline licences remain consistent with the latest aviation practice and relevant international agreements. Regulations are disallowable instruments, and the coalition will ensure that any regulations made are appropriate—that they protect the safety of Australians who travel by air but do not impose unreasonable burdens on the aviation industry.

The new system will allow airlines to appeal to the Administrative Appeals Tribunal in the event an international airline licence is not granted by the Civil Aviation Safety Authority. It will also clarify the application of international airline licences to common commercial aviation agreements such as code sharing, where two airlines sell tickets for the same flight, and wet leasing, where one airline sells tickets for a scheduled international service but hires the aircraft and crew from another airline to operate the flight. Additionally, the Civil Aviation Safety Authority is currently limited in its ability to regularly audit and enforce the rules regarding non-voidable insurance for passenger-carrying air operators. Under the proposed new system, the entire regulatory framework for international airline licences will move under the Air Navigation Regulations 1947. This will simplify the current system.

The bill proposes that air carriers be required not to obtain a certificate of compliance from the Civil Aviation Safety Authority before operating a flight but to provide a declaration that they have appropriate insurance. Failure to provide such a declaration would incur a minor administrative penalty. The authority to carry passengers, however, will only be valid whilst carriers hold appropriate insurance. If the insurance were to lapse, the authority to carry passengers would automatically lapse. Carrying passengers under these circumstances would trigger criminal sanctions.

The Civil Aviation Safety Authority will also be given authority to regularly audit air carriers and ensure that they are in compliance with mandatory insurance rules. This will streamline the administrative processes and enable the Civil Aviation Safety Authority to proactively enforce insurance requirements for air carriers. To date, the current system surrounding the issuing of international airline licences and carriers’ liability insurance has not resulted in any major breaches of public safety, and such a breach may never occur. The coalition accepts, however, that this regulatory framework can be finetuned and improved. That is why, under the previous government, the then Department of Transport and Regional Services issued a discussion paper in 2005 proposing a number of changes to Australian aviation regulatory processes. Such changes included revising the system of perpetual licensing introduced in 1994 and the system of mandatory carriers’ liability insurance introduced following the Monarch Airlines crash in 1993.

The coalition discussion paper also suggested that Australia should accede to the Montreal convention. Parliament has now approved a bill doing just this and the coalition—in fact, all parties—were happy to support our accession to that convention. Likewise, the coalition are willing to support further implementation of the changes suggested in the paper, such as finetuning the system of perpetual international air licences and the rules regarding mandatory carriers’ liability insurance. The discussion paper was widely circulated amongst the Australian air travel industry in 2005, and its proposals met with the approval of key aviation stakeholders. Further consultation with carriers, including our major airline operators in Australia, has confirmed that these measures still enjoy industry support. The coalition are proud of our efforts in government to modernise Australia’s aviation legislation. We supported acceding to the Montreal convention and are happy to support the latest round of changes to improve efficiency in the air travel industry and to protect Australian passengers.

Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

I am pleased to be one of the first speakers on the Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008. This is obviously an important bill for the future protection of standards in airline licensing and for improving insurance compliance issues, but it is also an important bill in that it continues to build a regulatory regime that creates a stable and secure environment for operators in the industry. This bill also gives me the opportunity to talk about the establishment of Avalon as a future international airport site and how important this is to the future of my region. But I will get to that later.

Firstly, the thrust of the bill, the direction of the bill, is about maintaining Australia’s reputation for having the safest, best regulated and best quality airline industry in the world. Mr Deputy Speaker, it probably would not surprise you if I said that there was often a lot of hyperbole in this place. There have been times when there has been an overstatement or two, but it is not an overstatement to say that Australia does have the reputation for the safest airline industry in the world, and the importance of that reputation cannot be overstated. Just on this note, I cannot let the moment go without mentioning what seems to be a worrying spate of recent incidents with an important Australian airline. I am, like many Australians, watching this very closely. I am sure the airline is watching this closely and checking its systems, and I hope this run of incidents does not continue. However, that matter aside, this amendment bill is another step in ensuring that we keep the mantle of having the world’s safest airline and the world’s best airline industry.

The Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008 will improve two regulatory programs related to the aviation industry. It will amend the system of international airline licences so that the conditions attached to those licences can be standardised and the government’s capacity to audit compliance can be enhanced. It will also amend Australia’s system of mandatory carriers’ liability insurance to streamline the administrative processes and grant the civil aviation authority, CASA, improved powers to audit and enforce compliance with this scheme.

There are two important decisions. Having standardised, agreed licence conditions which are of a high standard is a big step forward in the airline industry. However, having standard conditions for licences is one thing; the real test is enforcement of those conditions. How many times have we seen good laws and good regulation become useless laws and useless regulation because of a lack of compliance? I have seen that a lot in my lifetime, particularly in my time on council, and it is certainly something that I look forward to ensuring does not happen in this place. Another important purpose of this amendment is to make sure that there is not another example of that. This amendment actually improves the capacity of the government to audit international airline licences so that compliance is improved. In my view, that is extremely important. It is absolutely important in this industry that we have rigorous and uncompromising compliance regimes.

This amendment also deals with insurance. Insurance is an integral part of the airline industry. Insurance is a significant cost to the industry. The Civil Aviation (Carriers’ Liability) Act 1959, the carriers’ liability act, requires carriers to maintain minimum levels of insurance to protect passengers in the event of an accident. The scheme is supplemented by provisions in the Civil Aviation Act 1988 which allow CASA to enforce the requirements as a part of their management of safety issues via the air operator certificate process. This bill improves the ability of CASA to proactively enforce insurance requirements for air carriers. Importantly, for operators, the bill also streamlines administrative processes.

Going into a bit of detail on this bill, it is important to know that the system of international airline licences is established under the Air Navigation Act 1920 and the regulations that go with it. International airline licences make sure that we comply with bilateral air service agreements and arrangements. These are important agreements between Australia and our international aviation partners. International airline licences must be compliant with these agreements because they are effectively final checking mechanisms of various safety and security protocols that must be in place before commencement of operations.

After consultation with the industry, it was clear that a number of technical problems exist with the existing administrative framework for international airline licences. To give you just one example: under the current provisions of airline licensing, once a licence is granted it lasts forever unless an airline contravenes a provision in the Air Navigation Act 1920, the Air Navigation Regulations 1947 or the conditions in the licence itself. Today licences exist for airlines that were long ago defunct. The bill will move the entire regulatory framework for international airline licences into the Air Navigation Regulations 1947 and give the regulations the capacity to deal with the granting, variation, suspension and cancellation of international airline licences by the security of the Department of Infrastructure, Transport, Regional Development and Local Government. The regulations will then be updated to rectify the current administrative deficiencies in the international airline licences system and enhance auditing processes. I think this builds on an already strong regulatory system for our airlines; it improves them even more. The strength and robustness that our airline licensing and regulatory system generates generally is important when establishing new airport facilities.

I want to take this opportunity to talk about a very important aviation licensing issue in the region of which my electorate forms a part. I also note that the federal member for Corio is here. I think the strength of the airline regulatory system overall bodes well for the ultimate establishment of Avalon Airport, not just as a domestic airport but ultimately as one of Australia’s most important international airports and a very important airport for my region. It is very important that these sorts of regulatory systems are in place so that people have the confidence in new and establishing airports like Avalon. I do believe that one day we will see Avalon as an international airport. I note that the Australian government, the Rudd Labor government, has no objection in principle to the establishment of an international terminal at Avalon Airport and encourages new international services.

I would like to put on record my sentiments about Avalon and its importance to the region. Firstly, I want to say this: clearly if Avalon went international the tourism industry in my region would go to a whole new level. In short, tourism would go ballistic. The boost to existing levels of tourism in the city of Geelong, the Otways and of course the Great Ocean Road would be just huge. Job numbers and the range of jobs in tourism would just explode. Tourism would also explode across the Bellarine Peninsula, the Surf Coast, Colac Otways and of course Geelong itself. Local jobs for tens of thousands of people moving into the area are very important. That is just the most obvious impact.

Of greater significance again would be the broader industry benefits, and those are the real key. Geelong is currently at the start of a major industry transition process. We are diversifying from traditional manufacturing and looking to future industries. There is a wide range of industry groups, academics and companies working on this transition. The greater Geelong region today has its eyes firmly focused on the future. We are looking at high-tech manufacturing, advanced health research and bioindustries. An international airport at Avalon is absolutely vital in assisting the region in diversifying from traditional manufacturing and to high technology and high-skill industries in the future. An international airport at Avalon would boost all these industries. An international airport would bring specialist service skills in itself. It would also give us the ability to bring in products just in time for other industries and to export products more efficiently. It could spawn new aquaculture or other food product industries, for example, and our region is doing a lot of work on that. It would allow visiting experts and delegations to land on our doorstep in a fully modern city.

The establishment of an international airport at Avalon would benefit our region immensely, and I am 100 per cent behind that push. I also understand the caution that is needed to get it right. An international airport at Avalon would mean moving Australia’s border to our very own doorstep. Avalon would become Australia’s border. There are very important issues of security, quarantine and customs. This would require a very thorough major development plan. It would require not just a good licensing and airline insurance system but an airport plan that would serve us all well for decades to come. As I understand it, the landowner of Avalon, the Australian Department of Defence, would be pleased to receive a fresh major development plan for consideration. I also understand Avalon are keen for the development of international services from the airport and will be submitting a new proposal for the consideration of Defence, hopefully in the not-too-distant future. I hope very much for the sake of the region, for the future of the region, that this goes ahead.

This bill that we are considering today, which is about the integrity of our airline licensing system, gives me confidence. It gives me confidence that we have the regulatory structures in place to protect air travellers, protect operators and one day allow the people of Geelong to fly overseas from Avalon with all of the confidence in the world of making it there and back safely. It also gives me confidence that the local airline industry in our region can one day soon have international carrying capacity, bringing new industries to our region and exporting our products to the world. Avalon is very important for our future in our region. I commend this bill to the House.

Richard Marles (Corio, Australian Labor Party) Share this | Link to this | Hansard source

I think this is the first occasion on which I have followed my colleague and neighbour the member for Corangamite either in the House or here in the Main Committee. Clearly it is Geelong day today in the Main Committee, as evidenced by the member for Corangamite and me being here now—as it will be of course at the MCG in just over a month! We wait with great anticipation for that event. I congratulate the member for Corangamite on what he has just said about Avalon and echo his sentiments in relation to that. What you have just heard is a very erudite rendition of the issues which face Avalon and why Avalon is so important for the Geelong region, and I completely concur with my colleague’s statements in relation to that. I will refer to Avalon a bit later in my speech, but I think he has put the issues very well and it is very important for us as a country to deal with that.

I rise today to speak in support of the Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008. It seeks to amend the Air Navigation Act 1920, the Civil Aviation (Carriers’ Liability) Act 1959 and the Civil Aviation Act 1988. This bill will introduce and amend measures in relation to international airline licences and carriers’ liability insurance. On international airline licences, in essence this bill moves the regulatory framework into the Air Navigation Regulations 1947, which exist as part of the Air Navigation Act 1920. It will put into the power of the Secretary of the Department of Infrastructure, Transport, Regional Development and Local Government the ability to deal with licence alterations. It will also update existing administrative deficiencies in the international airline licence system. In relation to insurance, this bill will toughen, it will improve, the insurance requirements for international airlines and it will enable CASA to have better abilities to audit and enforce those insurance requirements while also improving the administrative processes which surround that. The culmination of all of this will be to provide greater clarity and assistance to Australian aviation operators in dealing with all of these administrative processes. It will enhance insurance provisions and it will ensure the interests and safety of the Australian travelling public.

The aviation industry, in particular the international aviation industry, is a growing industry worldwide—it is certainly a growing industry in this country. The first scheduled international service arrived in Australia in December 1934, and the international aviation industry as it stands now would be beyond the wildest imaginations, one expects, of the pilots who flew that first plane back then. Just over 50 years later, in June 1985, there were 30 licensed international carriers trafficking just under five million passengers in and out of Australia. Now, two decades on from that, we see that these figures have grown exponentially again: in 2007, 22.7 million passengers travelled with 55 licensed carriers on almost 120,000 separate flights in and out of Australia. This is an industry which is growing despite the whole lot of adversity it has experienced over the last decade. We have seen jet fuel prices in Australia more than double in the five years from June 2002. We saw rising insurance costs in the wake of September 11 2001, and we saw a decline in international aviation travel as a result of that event. And we have seen increased airport usage costs which, in turn, when one thinks about security, relate to that event as well.

But in the face of that we have seen an industry which has continued to grow such that in the June quarter of last year the aerospace industry in this country accounted for almost three-quarters of one per cent of national GDP. Yet it is an industry which was consistently let down by the former government, and the delay in this needed legislation reaching this parliament is another example of that. On 28 May this year I rose to speak in support of the Civil Aviation Amendment (1999 Montreal Convention and Other Measures) Bill 2008. That was in essence a bill which ratified Australia’s obligations in relation to international carrier liability insurance as prescribed under the Montreal convention. It was in June 1999 that the then Minister for Transport, the then leader of the National Party and Deputy Prime Minister, John Anderson, the former member for Gwydir, announced a consultative process with a view to ratifying the Montreal convention. That occurred in June 1999. Yet by the time of the November election last year, in 2007, absolutely nothing had been done to ratify that convention. It took this government to pull that off the shelf, dust it off and put it into action. The Civil Aviation Amendment Bill was ultimately passed by this parliament on 26 June this year.

In this bill we have another example of failure on the part of the previous government to do anything meaningful for the aviation industry in this country. We have seen a complete lack of will on the part of the conservative parties in this country to put their shoulder to the wheel and do some hard work in the area of aviation. We saw an inability on their part to commit resources to assisting one of this nation’s most important and growing industries to conduct their business better and to conduct it with greater security and at the same time with less red tape.

The origins of this bill in relation to international airline licences can be traced back to September 2005 when the then government released a discussion paper. Shortly after that the feedback from the stakeholders was received and collated; it was positive in relation to moving down the path that we are currently moving down today. So from the start of 2006 until the end of the Howard government in November 2007 they were completely aware that the aviation industry wanted the measures that we have before us today, yet they did absolutely nothing. For more than half of their final term in office, the Howard government did absolutely nothing on the issue that we are talking about today except squabble amongst themselves as to who should be the leader and look in desperation at the election which they had to face at the end of last year. While busy with its infighting, the Liberal Party did nothing to help an industry which now represents almost three-quarters of one per cent of national GDP—an industry which, as I said, ferries 22 million international travellers in and out of this country. It is an industry which is absolutely integral to the future of this country, and the Howard government did nothing about it. But this country can now relax in the knowledge that the Rudd government is in place and is here to support the nation’s aviation industry and the nation’s travelling public. That is what we did when we passed the civil aviation bill earlier this year and that is what we are doing in dealing with this bill today, the Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008.

Going to the bill specifically, previously I noted that this can be thought of in two distinct parts. The first is in relation to improving the system of international airline licences and the second is in relation to improving the system of mandatory airline insurance. I will start with international airline licences. The international airline licence system that we have in this country was established under the Air Navigation Act 1920. The licences which are provided under that act serve an important purpose. They serve for scheduled international air services the function of making sure that there is compliance with bilateral air service agreements and with the arrangements which exist between Australia and its international aviation partners. As well they provide a final checking device to ensure that the safety and security obligations of the international airlines which currently operate in our skies meet the obligations under those airline licences. So these international airline licences, as a piece of architecture, are clearly critical to the whole system of air safety in this country. The amendments in this bill in relation to that system will strengthen the existing provisions and safety guards which are provided under those licences and in the same breath remove the excessive complexity which exists around them.

The current situation pertaining to international airline licences is one which sees international airline licences, once given, remain in force indefinitely—barring, of course, a contravention by the licence holder of any of the obligations contained in the licence. That has over the years become out of date, if you like, and created a range of anomalies. It has given rise to the situation where a number of licences exist for airlines which no longer operate in Australian skies. It has also given rise to other anomalies by virtue of the changing nature of the regulatory regime over the years. Depending on when a licence was given, the obligations under it may differ from those of a licence given at a different time. So for each of the licences that now apply there are different obligations. That gives rise to inconsistent regulation across the whole sector. It also gives rise to a nightmare for the regulatory authorities trying to audit these licences and ensure that there is compliance, because the obligations under the regulations differ from one licence to the next.

This bill, first of all, seeks to rectify that situation. It does so through a number of means, and there are two that I specifically want to refer to. Firstly, it moves the regulatory framework for all international aviation licences into the Air Navigation Regulations. In doing so, it gives the power to the Secretary of the Department of Infrastructure, Transport, Regional Development and Local Government for the granting, variation, suspension and cancellation of international airline licences. That is an important administrative step forward. Significantly, this bill will also provide for time constraints on the licences—that is, the licences will exist for a particular period of time and there will be an obligation on the part of the holders of international airline licences to have those licences renewed on a periodic basis. That in turn will mean that the regulations and obligations which flow from those licences will be consistent from one carrier to the next.

This begs the obvious and important question about whether or not that will increase regulatory burden on the licence holders. But I am happy to report to the Committee that there has been extensive consultation with the currently operating international airlines in this country on this provision. They do not anticipate that there will be any problems with complying with these requirements and they are quite happy to do that. It is important to note that, in circumstances where for whatever reason a licence is withheld as a result of measures in this bill, an appeal process will allow review by the Administrative Appeals Tribunal. The government believes that the provisions contained in this bill, as they relate to international airline licences, will provide the travelling public with much greater safety by standardising the requirements of international carriers operating in Australia and will assist the operators themselves in clarifying and simplifying their regulatory and administrative obligations under the international airline licence system. As I stated, this is a measure which is long overdue.

In relation to airline carriers’ liability insurance, the existing provisions can be found in the Civil Aviation (Carriers’ Liability) Act 1959, which are supplemented by provisions in the Civil Aviation Act 1988. These acts in combination require that carriers operating in Australia maintain minimum levels of insurance to cover passengers for loss in relation to any accident. They also enable CASA to enforce insurance requirements as part of the air operators certificate process. This bill also puts in place important reforms in relation to that process. It will make it absolutely clear that an air operators certificate is only valid—and, as a consequence, the operator is only legal to fly—if there is insurance maintained under it. If, for whatever reason, that insurance lapses then the certificate lapses and it becomes illegal for operators to fly in those circumstances. It becomes illegal in circumstances where there will be significant penalties imposed upon the operators themselves—penalties which ultimately go to criminal sanctions. So this is a very important strengthening and toughening of the regime in relation to insurance.

To complement that, this bill also provides for improved auditing powers on the part of CASA in relation to enforcing air operators’ insurance requirements. We are beefing up the powers of the regulatory authority to ensure that the insurance is in place. In the same breath as doing that we are easing the regulatory burden and cutting the red tape for these airline operators when it comes to meeting their insurance requirements. Currently it is incumbent upon these airlines to obtain a certificate of compliance from CASA in relation to their insurance. What will be sought as a result of this bill is simply a declaration from the operators that they have that insurance in place. Indeed, a failure to meet that particular notice requirement will be met with a small administrative penalty, but it will not prevent an airline from flying—provided, of course, that the insurance is actually in place. So while on the one hand we are toughening up the substance of this regime, on the other hand we are actually cutting the red tape to make it easier to comply with on the part of the airlines.

The member for Corangamite, who has just spoken, mentioned Avalon Airport. I want to briefly mention it as well. He has said how important Avalon Airport is to my electorate of Corio, to his electorate of Corangamite and to the entire Geelong region. At the moment it is a domestic airport which links into an international network. But, as the member for Corangamite said, we have very strong aspirations for this airport to in time become an international airport. I have spoken on that often in this place and I do not intend to repeat that now other than to say that it is absolutely imperative, as the member for Corangamite has said, that Avalon does become an international airport.

In that context, this bill becomes very important. If Avalon becomes an international airport we will of course see as a result more Geelong people travelling internationally. So this regime, which puts in place more secure and safer airline travel—and airline travel which has more comprehensive insurance requirements as part of it—will be very important for both my constituents and the constituents of my colleague, the member for Corangamite. It is a very important measure for our country; it is a very important measure for the city of Geelong.

In conclusion, this is another piece of legislation which should have been before the House years ago. It has a very small impact on the public purse. It is ultimately another example of the failure of the Howard government; it is another example of the inaction of the Howard government—particularly during its death throes in its last term in office. This is something that has been sitting on the books for years now and should have been before us way before this time. But it is good news that it is before this chamber now and that we have in place a government which is committed to ensuring the future of the Australian aviation industry. It is doing the detailed work to make sure that we have a safer and more secure industry for those who are travelling on airlines but also an industry which has the red tape removed from it so it is easier for those airlines to conduct their business in this country. This bill supports the interests of the aviation industry. This bill also increases the safety of travel for the Australian travelling public. I commend this bill to the House.

Jason Clare (Blaxland, Australian Labor Party) Share this | Link to this | Hansard source

I welcome the opportunity to make a contribution to this important debate on the Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008. It is an important bill because it will facilitate the much needed overhaul of two important aviation industry programs. Firstly, it will amend the system of international airline licences, IALs, so that the conditions attached to the licences can be standardised and the government is able to check that airlines are complying with licence conditions. Secondly, it will amend Australia’s system of mandatory airline insurance to streamline the administrative process and grant the Civil Aviation Safety Authority, CASA, improved powers to audit and enforce compliance with the scheme. The system of international airline licences will be revamped so that existing licences can be reissued with standardised and consistent conditions. Our system of IALs makes sure that flights are conducted in accordance with the bilateral agreements Australia has with our aviation partners. It also provides for a final checking system to make sure that all the safety, security and insurance approvals are in place before an airline starts services.

The system that has been evolving for decades has been hampered by the government’s limited ability to cancel, amend and audit licences. Under the existing system, licences are on issue to airlines that no longer exist or that no longer fly to Australia. Different licences are subject to different conditions, and the government has limited ability to check that airlines are actually complying with the conditions. This bill will remove the entire regulatory framework for IALs in the Air Navigation Regulations 1947. Regulations will later be drafted to deal with the granting, variation, suspension and cancellation of IALs, rectifying the current administrative deficiencies of the system. This bill will give regulations the capacity to deal with the granting, variation, suspension and cancellation of international airline licences by the Secretary of the Department of Infrastructure, Transport, Regional Development and Local Government.

The bill also amends Australia’s system of mandatory carriers’ liability insurance to streamline the administrative processes and grant CASA improved powers to audit and enforce compliance with the scheme. The Civil Aviation (Carriers’ Liability) Act 1959 requires carriers to maintain minimum levels of insurance to protect passengers in the event of an accident. The scheme is supplemented by the provisions of the Civil Aviation Act 1988, which allow CASA to enforce requirements as part of their management of safety issues via the air operator certificate process. Under the new system, carriers will no longer need to obtain a certificate of compliance from CASA before flights are operated. Instead, operators will be obliged to provide CASA with a declaration indicating that they have obtained that insurance. If the operator allows its insurance to lapse, authorisation to carry passengers will automatically lapse. The authorisation will automatically be reactivated as soon as the operator secures the appropriate insurance. If at any time an operator carries passengers without appropriate insurance, it will be subject to administrative and criminal sanctions under the Civil Aviation Act in addition to the criminal penalties that are currently imposed under the carriers’ liability act. The bill will also streamline administrative processes. It will cut down the paperwork for CASA’s oversight of the mandatory insurance scheme for airlines. It will also improve the ability of CASA to proactively enforce insurance requirements for air carriers.

The Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008 will provide significant and long overdue improvements to the aviation industry. Can I also use this opportunity to commend the Minister for Infrastructure, Transport, Regional Development and Local Government for his focus on and the attention he has given to aviation issues in the short time that he has been minister—and some of those issues, it should be pointed out, bear heavily on his electorate. There has been the development of Australia’s first ever aviation white paper as well as his decision—and this was important—not to allow the expansion of Bankstown Airport as Sydney’s second airport.

Unlike the situation in Avalon described by the members for Corangamite and Corio earlier today, a major passenger airport is not wanted at Bankstown. Bankstown Airport is already the main general aviation airport for the Sydney region and—this may surprise some members—it is one of the busiest airports in the world. The threat of more movements and large passenger aircraft is not one that is welcomed by my local community but, under the master plan that was approved by the previous government, it is one that could occur. It just requires the runway at Bankstown to be lengthened and strengthened. Because this work—the lengthening and strengthening of the runway—would cost more than $20 million, it therefore constitutes a major development and so requires the approval of the federal government. My community was very relieved and very grateful when earlier this year the minister ruled out any expansion of the airport to become Sydney’s second airport. It is a good example of the difference a Labor government makes. Bankstown Airport is a great place to create local jobs but it is a bad place for large passenger aircraft. The minister recognised this and recognised that Bankstown is not the place for such an airport, so I thank him very much for that.

Airports are a key part of our economic infrastructure. They provide jobs, they move freight and they underpin our economic growth. But they also have an impact on the communities that live around them. They create extra noise and extra traffic and, as I said earlier, the minister understands this better than most. The people of Blaxland are very grateful for his decision in relation to Bankstown Airport, and I, as the member for Blaxland, thank him on their behalf. I look forward to the aviation white paper when it comes forward and I also look forward to the feasibility study that is currently being conducted on the M5 East duplication in Sydney’s west. It is a project that will help Sydney airport and make it work more effectively and more efficiently. It will reduce congestion between Sydney airport and my electorate and it will make the electorate of Blaxland a better place to live and work. With those remarks, I commend the bill to the House.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

in reply—I thank all members for their contributions to this debate on the Aviation Legislation Amendment (International Airline Licences and Carriers’ Liability Insurance) Bill 2008. I particularly thank the member for Blaxland for his very generous comments. In the short time he has been the member for Blaxland, he has been an outstanding representative of his local community and has made strong representations about Bankstown Airport and other infrastructure issues involving Western Sydney.

This bill streamlines and improves two aviation regulatory schemes. The international airline licence system will be updated to enhance the Australian government’s ability to ensure that airlines are complying with licence conditions. The bill will also improve the Civil Aviation Safety Authority’s ability to ensure that airlines hold an appropriate contract of insurance to compensate passengers in the event of an accident. These changes will streamline the mandatory aviation insurance scheme and cut down the paperwork for airlines and the Civil Aviation Safety Authority alike. It is in the context of developing a national aviation strategy that the government continues to pursue reforms through the two pieces of aviation legislation which will be carried by the House of Representatives today.

As the member for Blaxland mentioned, we also need to embark on a national aviation strategy. It is something that we have never had from any Australian government before now. I had a successful meeting this morning with my department again on the work leading up to the production of the aviation green paper. As an island continent, we rely very much on aviation—more so than most countries on earth—for our economic productivity and our cultural and other links with the rest of the world. That is why, whilst individual pieces of legislation such as this are important, it is also important that we actually have a strategic, long-term framework. That is what the government is doing in producing a green paper, which will lead to a national aviation strategy through a white paper process in 2009. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that the bill be reported to the House without amendment.