Helen Polley (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Aged Care) Share this | Hansard source

I am pleased to be able to speak to the Airports Amendment Bill 2015 today. The bill addresses deficiencies in regard to the Airports Act 1996 as these deficiencies create uncertainty and confusion about the process for establishing a second Sydney airport. Labor believe that Sydney needs a second airport sooner rather than later. We on this side of the chamber recognise that such infrastructure development is vital to continue economic growth. It is in this context that Labor support this bill.

The Airports Act 1996 was initially developed to address issues associated with the ongoing ownership and operation of our major airports following a process of privatisation that occurred in the early 1990s. It is focused on regulating ownership, planning and development of 21 federally leased airports. These 21 include all the main capital city airports around Australia. One of those privatisations was the lease of Sydney's Kingsford Smith Airport, which was a transaction that occurred in 2002 under the Howard government. The legislation before us today seeks to deal with some of the unintended consequences of that transaction.

This bill also addresses the fact that the proposal for Sydney's second airport is based upon a greenfield development, and is something not contemplated by the regulatory structure of the current act. It also envisages the mandatory adoption of the environmental conditions in any airport approval. The opposition welcome that move because we believe that environmental best practice must underpin the development of Sydney's second airport. Sydney is a global city. Its efficient operation is central to the economic productivity, not just for New South Wales, but for the entire nation. Sydney's economic productivity is currently constricted by infrastructure limitations resulting in limited space and bottlenecks in the traffic network. There is broad consensus across experts that a second Sydney airport is needed.

The New South Wales and federal governments commissioned the joint study into Sydney's aviation needs which was commenced and completed under the former federal Labor government, reporting in March 2012. It warned that the economic consequences of inaction would be dire, including a $6 billion loss in national GDP by 2035. The key recommendation of the 3,000-page report was the development of a second Sydney airport. Handled properly, a second airport can provide important employment opportunities and jobs for tens of thousands of people in Western Sydney. The joint study found that, in the absence of a second airport in Sydney:

The number of total jobs that will not be created is estimated to grow over time as unmet demand increases. This is averaged to be 12,700 in NSW and 17,300 nationally over the period from 2011. In 2060 alone, the annual estimate of foregone jobs is approximately 57,000 in NSW and 77,900 nationally.

The Grattan Institute undertook detailed research last year, identifying geographic locations in which high-paying, high-productivity jobs are located. It noted:

Inner city areas and secondary commercial hubs, such as those around large cities’ airports, also tend to be more productive than other locations.

New employment opportunities generated by a new Sydney airport are not restricted to the airport site. Airports attract industry to their precincts. The importance of this cannot be overstated.

The 2013 State of Australian cities report made clear that Australia is undergoing a shift whereby jobs growth is moving from the suburbs to the inner city. Notwithstanding this shift in jobs to the city, housing remains most affordable in suburban areas. The result is that many Australians have to commute from their homes in the suburbs to their jobs in the city. The social consequences of this trend are significant. Many Australian parents are now spending more time commuting than they spend playing with their children. The construction of a second airport in Sydney would go a long way to addressing this challenge for families in Western Sydney. A second Sydney airport would not only increase economic growth but improve the lives of thousands of people who would be able to live closer to their workplaces. That means less time on the road for parents and more time with their family and friends.

The Airports Act was designed to deal with existing federally leased airports and does not address the development of an entirely new airport. This bill provides for the development of a master plan focused on the strategic and conceptual elements of the development proposal, as well as a process for initial major development plans. Once the development of the new airport is complete, the standard five-yearly approval arrangements that exist for all other federally leased airports will come into effect.

Importantly, Labor welcomes the bill's proposed strengthened role for the environment minister in making mandatory environmental conditions rather than, as is currently the case for other airports, making non-binding recommendations to the infrastructure minister. Labor emphasises that the EIS process which is being conducted under the Environment Protection and Biodiversity Conservation Act 1999 needs to be thorough, evidence based and transparent, with conditions that address environmental amenity as required. We welcome the commitment from the minister to allow a full process of concurrent community input into both the airport plan and the EIS later this year.

In conclusion, after working in government to lay the groundwork for the development of a second Sydney airport, Labor will continue to play a constructive role in making the project a reality. But in doing so we insist on proper process, including public consultation and assessment of environmental impacts. The project must focus on optimising the economic outcomes of such a development, including maximising employment opportunities for Australians. I commend the bill to the Senate.