Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Assistant Treasurer, Senator Sherry. In February this year the ACCC found that airports drive away competition from other parking venues and bus operators by imposing excessive access levies and controls on the available space for those operators. I note that Australia has some of the highest on-airport car park fees in the world. But in August the Productivity Commission's draft report on economic regulation for airport services said:

Access charges paid by competitors to on-airport car parking are not so high as to impede competition …

Does the government side with the ACCC or the Productivity Commission when it comes to competition at airports, and does it believe the ACCC currently has sufficient powers to deal with excessive airport charges?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Thank you, Senator Xenophon, for the question. The Gillard government has asked the Productivity Commission to investigate airport pricing, investment and services as part of a major public inquiry into the economic regulation of major Australian airports. Having established an inquiry, it is important that I do not pre-empt the outcome of that inquiry by going to a specific response on at least some of the issues that Senator Xenophon has raised.

As far as the ACCC submission goes, there is no doubt it will form a significant part of the Productivity Commission's deliberations. I have no doubt about that—the ACCC is a highly authoritative and knowledgeable organisation in the area of competition. It is important to note that, whatever the outcome of the PC's reviews, there are already measures in place to deal with market power issues in airports and other sectors of the economy. For example, section 46 of the Competition and Consumer Act 2010 prohibits the misuse of market power. In 2006 the Productivity Commission conducted a review of the regulatory arrangements for pricing airport services, and that review examined the price monitoring regime that had replaced the price capping—

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Max Moore-Wilton had the fix put in. You might remember that, Nick. Oh, and then he went and got a job there.

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Stephen, is there no-one you won't slur?

John Hogg (President) Share this | Link to this | Hansard source

Order! When there is silence on both sides, we will proceed. Senator Xenophon is entitled to hear the answer and be able to listen to it without the noise.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

I did not think I was being that provocative, frankly, until Senator Conroy started interjecting on me. I am just outraged at the misbehaviour that we are seeing at times in this chamber!

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

He's still upset about Collingwood.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Well, I'm a Geelong fan. It is no wonder he is upset about Collingwood. (Time expired)

John Hogg (President) Share this | Link to this | Hansard source

Excuse me, we are not discussing football.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. We are talking about $15, $20 or $30 an hour that consumers are being slugged. Does the government support the ACCC submission to the just released draft Productivity Commission report where it argues that 'more monitoring and more inquiries will not constrain the exercise of airports' market power and does not provide an effective ongoing solution'? Does it support the ACCC's proposal for a deemed declaration regime for aeronautical services under part IIIA of the Competition and Consumer Act, as well as mandatory access undertakings for services such as car parking?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Senator Xenophon, I certainly do understand your concern at the level of the charges—$15 to $20 an hour or more. I appreciate the concern of consumers about this issue. By way of illustration, I fly in and out of Devonport Airport. I know that is across the other side of Bass Strait, but it does illustrate the point. At Devonport Airport you can park for $1 forever—there is no limit. So I think that illustrates the comparative—

Richard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | Link to this | Hansard source

Shhh!

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

I am being told not to disclose the secret. Sorry, Senator Colbeck. As a senator from Devonport, it has been one of the less advertised advantages of flying in and out of Devonport Airport. But I think it does illustrate the comparative charge rate when you can have $15 to $20 an hour in Melbourne and $1 forever, for weeks— (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given the ACCC reported that Melbourne airport makes almost $104 million a year from parking alone and Sydney airport makes $95 million, is the government conceding that as a result of the privatisation contracts and a weak regulatory environment competitive car park prices at Australian airports will never in fact be achieved?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

I think I have already conceded. I can understand the concern of consumers at that level of pricing at Melbourne and Sydney. I take your figures as being accurate in terms of the quantum of profitability from car parking at those two airports, particularly when I compare it to what occurs in Devonport—albeit Devonport's is a slightly more modest airport than Melbourne's or Sydney's. However, it is not for me to pre-empt the outcome—

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Only fractionally.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Fractionally, yes, but a wonderful airport, a wonderful part of the world that I would encourage people to visit. Come through Burnie, Wynyard or Devonport airports—a wonderful part of the world. But, to come back, as I have said, there is concern. That is why we have established the inquiry. That is why we have asked the Productivity Commission— (Time expired)