Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

On 15 April 2014 the Australian government announced that the site for Western Sydney’s new airport will be Badgerys Creek. This delivers on a government promise when in opposition to make a decision on Sydney’s future airport needs during its first term in office.

It demonstrates the government’s commitment to the Western Sydney region. A new airport will be a major boost for the local economy and create thousands of jobs during construction and a pipeline of jobs once an airport becomes operational. These benefits are being seen already with the start of construction of road upgrades to support the proposed new airport.

The government continues to deliver on this commitment with the progression of formal consultations with Sydney Airport Group on developing the proposed airport and the commencement of a new environmental impact assessment for the Badgerys Creek site.

A new airport for Western Sydney will create infrastructure for the 21st century and generate jobs and economic growth in Western Sydney.

To ensure these outcomes can be realised as soon as possible, the Airports Amendment Bill 2015 amends the Airports Act 1996 to provide for the creation of an airport plan for the proposed Western Sydney Airport. The Airports Act provides the framework to manage and operate Australia’s federally leased airports.

The airport plan will authorise the initial development and specify the Australian government’s requirements for the airport.

It will do this by taking processes ordinarily relating to master plans and major development plans currently in the Airports Act and combining them into a single streamlined process applicable to a greenfield airport development.

In doing so, the bill recognises the importance of the environmental assessment process currently underway for the airport and confers an approval function on the environment minister in relation to environmental matters.

The usual process in major development plans is for a referral to be made to the environment minister for the project to be assessed under the Environment Protection and Biodiversity Conservation Act 1999 if required and for the environment minister to provide advice to the Minister for Infrastructure and Regional Development, who is the final decision maker on the plan.

Badgerys Creek is a greenfield development, and preparation of an environmental impact statement is underway and will be finalised under the EPBC Act. This bill will require the Minister for Infrastructure and Regional Development to incorporate in the plan any environmental conditions imposed by the Minister for the Environment following completion of the EIS.

The community will have the opportunity to comment on both the environmental impact statement and airport plan as consultation on each will occur at the same time.

Once the airport plan is in place, no further planning or development approvals will be required prior to initial construction commencing. It will enable detailed design and construction planning to commence as soon as possible after contract signature.

This is a practical, common-sense measure that recognises the unique circumstances of a greenfield airport development.

The bill also includes measures that would help the government pivot to ready alternatives if Sydney Airport Group turns down an offer to develop and operate the proposed airport.

Under the 2002 sale agreement for Sydney Kingsford Smith Airport, the owners of Sydney Airport have a right of first refusal to develop and operate a second major airport within 100 kilometres of Sydney’s centre.

Once the consultation period is complete, the government will come to a decision on the need for and nature of a second airport in Western Sydney. This is a contractual step required before the government can make an offer.

This offer must be made to Sydney Airport Group first. If it declines to accept, the offer can be made to third parties or the Commonwealth can undertake the project itself.

However, the Airports Act currently effectively prevents the Commonwealth from taking either of these actions in the event that the Sydney Airport Group declines to accept the offer.

Section 18 of the Airports Act requires that the airport lessee companies for Sydney's Kingsford Smith Airport, and any airport site declared to be the Sydney West Airport, as it is referred to in the Airports Act, must be subsidiaries of the same company. This is a legacy provision from the Airports Act as originally passed in 1996.

While the government is contractually obliged to engage commercially with the Sydney Airport Group and is not opposed to a common ownership situation, it needs to be legislatively possible for the two airports to be under different ownership in the event that Sydney Airport Group turns down an offer to develop and operate the airport.

The Airports Amendment Bill removes the requirement for common ownership, providing the Commonwealth with the commercial flexibility to deal with third parties or to develop the airport itself if required.

The bill also removes the airport cross-ownership restrictions currently placed on Sydney West Airport. These restrictions prevent cross-ownership of more than 15 per cent between Melbourne, Brisbane or Perth airports and a new airport at Badgerys Creek. The amendment will help maximise the success of any market offering in the event Sydney Airport Group choose not to exercise an option to develop and operate the airport.

This amendment is about giving the government the commercial flexibility it requires to get the best outcome for the people of Western Sydney and the Australian economy more broadly.

Separately, the bill contains some mechanical provisions to facilitate declaration of the airport site and other preparatory work.

The Airports Amendment Bill 2015 will help ensure the economic and social benefits of an airport for Western Sydney can be realised as soon as possible.

I commend the bill to the House.

Debate adjourned.