Introduction
Business establishment in Australia just as in any other part of the world has regulatory standards and measures that have to be adhered to. The regulations and legislation are meant to ensure fair competition, sufficient protection for the participating parties and maintenance of integrity in the market. Business regulatory requirements in Australia are determined by the Australian government, State and respective territory government agencies. It is very necessary for the public good and ensuring sanity in business. Legislation and regulatory measures are critical for the establishment and operation of airports. It is a state corporation and, therefore, the Australian government is solely responsible for its construction, improvements and safety. It is a major entry point into the country by crucial persons and business persons. It, therefore, forms the image of the country and thus it is the government’s obligation to ensure safety, standards and competitive is maintained. Regulation is done in accordance to the various airport Acts as discussed in the paper.
Airport Regulation
In Australia, all leased federal airports are required to observe the following regulations: Lease of federal airports subject them to rules and procedures of the commonwealth. It is according to Australian Government; Department of Infrastructure and Regional Development, 2014. Other provisions that relate to airport lease are found in part 2, divisions 2-8 of the airport Act of 1996.There is a restriction on the ownership and control of airport infrastructure. It is meant to maintain the airports as a state corporation. They are required to protect the airspace around the airports. In addition; they are required to observe economic regulations. It includes reporting the charges for aeronautical services and facilities. It is done through issuance of financial statements and quality of service information in federal airports such as Sydney, Adelaide, Melbourne, Perth and Brisbane airports. The airports have an obligation to observe the parking infringement notices scheme, administration of liquor licensing regime, curfews and slot management scheme. Finally, they are required to adhere to building control and environmental managements.
Airport Planning
The airport Act of 1996 in Australia provides that all leased federal airports are supposed to adhere to the planning framework of the Act. All airports are subject to the Act except the Tennant Creek and Mount Isa. During the planning of the framework, it a requirement that airports prepare a master plan that incorporates an environmental strategy. It is aimed at mitigating the associated environmental destruction that may be accrued to the establishment of the airport. In Australia, the master plan is a twenty-year strategic vision of the business and in this case the airport. It outlines the site of the airport, future land uses of the airport, environmental impacts of the project, types and permitted developments around the port and issues to do with noise.
The master plan is renewed after five years. The environmental strategy is meant to help the airport administration manage environmental issues within the five year and beyond that time. Commonwealth measures the environmental performance of the airport based on the period that the airport has set to manage environmental issues. It is also based on the documented determination of environmental responsibilities by the airport tenants. The following legislation are relevant in the planning and regulation of airports especially, leased airports. The Legislations are developed from the building Act of 1996.
1. Airports Regulations 1997
2. Airports (Building Control) Regulations 1996
3. Airports (Control of On-Airport Activities) Regulations 1997
4. Airports (Environment Protection) Regulations 1997
5. Airports (Ownership Interests in Shares) Regulations 1996
6. Airports (Protection of Airspace) Regulations 1996
7. Sydney Airport Demand Management Act 1997
8. Sydney Airport Demand Management Regulations 1998
Airports have to publish a preliminary draft of the master plan that they are developing so as to allow public participation in terms of how the construction would affect their daily lives; especially those residing or other establishments in the neighborhood. In other words, consultations must be conducted in the drafting of the master plan with relevant stakeholders. After a public consultation, it a requirement by the law that the draft master plan be submitted to the minister for infrastructure and regional development for evaluation before giving a decision. The minister with his team of professionals has to scrutinize every detail of the draft master plan to ensure that it is drafted in accordance to the set procedures and Acts (Australian Government; Australian Trade Commission, 2014).
The minister has sixty working days to either approve the draft master plan or reject it. However, if he fails to issue a response with a given period, it is assumed that he or she has approved it. Furthermore, all leased federal airports are expected by the law to develop major development plans for the airport site. In addition, as a routine the draft version of the major development plan must be subjected to public scrutiny before submission to the Infrastructure and Regional Development minister for approval.
The government of Australian has developed a guide that assists the lessee company understand are comply with the requirements of the Airport Act of 1996 for the master plan. The guidelines give the objectives of the master plan amendments. It as well explains how the changes in the airport were planning complement planning of other airports in the country. It also outlines other airport planning initiatives and legislative demands. The laws and Acts put in place are aimed at ensuring safety of the service consumers and maintaining sanity in the business. Since January 2011, Australia developed one national law to facilitate fair trade and protection of the consumers. It is known as the Australian Consumer Law. The law bounds business owners and consumers. According to the law, both the consumer and the business have similar rights and obligations.
The Australian Consumer Law was established to reform business in the country. It has reformed the Council of Australian Government’s “National Partnership Agreement to deliver a seamless National Economy.” The law helps in reducing business complexities and duplication for the consumers and businesses. It, therefore, helps to streamline business in Australia. The law applies to all states, territories and has replaced consumer protection provisions. The law covers national unfair contract terms. It covers standard consumer contracts and ensures that everyone benefits. It guarantees consumer rights and ensures national safety law and enforcement mechanisms. It gives lay-by agreement and issues penalties on its breach. The law operates in entire business activities in Australia (Australia Consumer Law, 2010:1-5).
Environmental Management Airport
The commonwealth has established its integrated system to ensure that the environment at leased airports is protected. All airport operators are required to implement their various airport environmental strategies to the latter. The main role of environmental protection at the airport is the responsibility of the airport operator. However, everyone or firm that is working or operating at the airport has a responsibility to contribute to environmental protection by observing the environmental legislation and policies. There is an appointed officer (airport environmental officer) at the airport to oversee that everyone at the airport adheres to the environmental obligations. The officer is charged with the responsibility of overseeing the day to day activities at the airport.
Building legislation in Australia
The Australian Building Codes Board has the overall responsibility to address all issues relating to safety, amenity, health and sustainability in the designing and operation of a building; especially for commercial purposes. The board addresses the concerns through the National Construction Code (NCC) series. The NCC has developed effective regulatory systems to ensure that the codes are observed to the latter. It has as well established non-regulatory measures.
The Australian Building Regulation Bulletin (ABRB) is a mechanism used to deliver and raise awareness of technical issues to the building and plumbing industries and the community directly. The electronic publications provide an easy means of delivering information on building codes. It also provides expert information on key technical and regulatory themes. ABRB is produced thrice a year and provides information to users on the national construction code. The publication is also available at their website. The latest addition of ABRB contains information on historical reforms, NCC 2015 public comment draft, standard winter update, weather proofing building and improvements to early response to residential fires through interconnection of alarms.
Buildings and construction activities at any leased airport has to be approved by the Airport Building Controller (ABC). The ABC is appointed under the law of the commonwealth. The holder of the position has to administer the airport building control regime. In the event, the airport-lessee company must as well approve the activity. Its decision is based on the planning and airport operation perspective. The regulation is meant to ensure that there is effective and efficient contribution to the development of well-organized airport sites.
Investigation of sale methodology in Australia
Early on in history local communities in Australia had to bear the burden of developing their aerodromes until in the 1941 when the government introduced maintenance grants. The grants were for all aerodromes that had regular passengers transport services. After the World War II, there was an immense increase in aerodromes for use by civilians. Growth in air traffic pushed the federal governments to fund the busiest airports that served larger aircrafts. As time went, it agreed that aerodromes that served locals had to be owned, maintained and operated by the communities that it served.
The government offered to transfer its aerodrome to the local authorities free of charge. It entered into an agreement with the local government that it has to pay half of future developments and maintenance for a given period. The national government had a responsibility to collaborate with the local authorities in the maintenance of the aerodromes where necessary. Over the next two decades from 1958, the government financial costs increased as it included general aviation and aerodrome mission stations. The successive government, therefore, agreed to accelerate local ownership programs to enable the government divest itself. The government owned 81 civil airports, and 12 operated by the department of defense (Hooper et al., 2000:183-188). It is how private ownership of airports in Australia began and has continued to date.
The sale Process
The sale is meant to reduce the government financial burden on the maintenance and development of the airports and increase private ownership. The government does this so as to concentrate on improving and developing major airports that are capable of handling larger aircrafts. It is also aimed increasing local investments in the transport sector. The sale is a form of getting profits from the transactions in large amounts at once and uses the funds to develop other agents sectors of the economy.
The process involves the government publishing a white paper on employment and growth stating that it plans to sell Federal Corporation Airport (FCA) the airport in principle. A feasibility study is carried out to determine the sale of FAC network. A report on the post-sale regulatory requirement is then to be done. Scoping study is done to advise the government and provide a timetable within which the process is to be achieved. Call for expression of purchase is made to the public through gazette notices. Requirements for participations in the bid are issued. It includes the process and the basis of shortlisting of the successful bidders of the consortia. Marketing and tendering and bid evaluation and contract negotiations are done. A bill is later introduced to parliament for the members of parliament to scrutinize the motives and procedure adherence. The airport bill establishes a regulatory framework for the post-privatization or after sale. It is in the Airport bill of 1995. The bill facilitates the sale of the lease. The office of the attorney general appoints a time of advisers to provide legal advisory services to the government on the sale. The department of finance forms a task force to manage and complete the sale after there has been adequate public participation. It develops legislation and regulations from the transport policy perspectives (Hooper et al., 2000:189-192).
Conclusion
In conclusion, airport operation is critical in the development of any country. Airport in Australia are owned by the government (major airports) and aerodromes are owned by local communities in which they are located. It is done to reduce government financial burden in the maintenance and development of the aerodromes. However, there is collaboration in the development of the aerodromes. The objective is into enhancing quality service delivery and private ownership. The sale of airports has to follow the laid down rules and procedures so as to ensure that safety, health and environmental issues are adhered to in accordance to the commonwealth.
Reference List
Australian Government; Australian Trade Commission (2014). Understanding Australian business regulation. Available online at: http://www.austrade.gov.au/Invest/Doing-business-in-Australia/Investor-Guide/Running-a-business/Understanding-Australian-business-regulation
Australia Consumer Law (2010). Available online: http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm
Australian Government; Department of Infrastructure and Regional Development (2014). Airport Planning and Regulation. Available online at: http://www.infrastructure.gov.au/aviation/airport/planning/
Hooper, P, Robert. C. and Sandy W. (2000). Transport Research Part E 36: The Privatization of Australia’s Airports. Available online: https://wiki.umd.edu/lei/images/7/7c/Hooper2000.pdf
