Address at the NZ Airports Association conference
Today I want to talk about the important role airports play in the New Zealand economy and local communities. I will also discuss some of the issues I see for airports, along with government initiatives in the aviation sector.
First, let me say that airports are vital to the growth of the New Zealand economy and our communities. Approximately 8.8 million travellers annually pass through six of our international airports, spending money on goods and services at local businesses and providing local jobs.
The Government's top priority for transport is to maximise its contribution to economic growth and productivity. Tourism and moving freight are key to achieving this, and airports have a crucial role to play. I'd also like to acknowledge the important contribution aviation makes to New Zealand's tourism industry.
I'm sure that Associate Minister of Tourism Hon Dr Jonathan Coleman would have discussed this yesterday.
The current global recession has had a huge impact on the aviation industry. Among other things, our local industry is seeing a decline in the number of domestic and international passengers, meaning we really need to work hard to promote New Zealand.
With this in mind, I'm pleased to see Rotorua Airport now linked directly to Australia. This is another step in making New Zealand more accessible by air.
But it's not just about getting people to our shores. Of equal importance is the need for our people to get around our country.
To put it simply, airports help get people from A to B. They are hugely important to their communities. Each community places high value on having their airport, because it enables Kiwis, local businesses and international visitors to access New Zealand's main centres - and the rest of the world - with ease.
This access has been increased by new airlines entering our country. I'm sure you were pleased to see new services from Pacific Blue and Jetstar come to New Zealand recently.
It's worth noting that New Zealand's major airports are one sector of the economy where investment in infrastructure has matched growing demand and technological change.
I know that the Commerce Commission is developing airport pricing guidelines for the new information disclosure regime applicable to the Auckland, Wellington and Christchurch airports. I understand that these airports and the association have been contributing to the current consultation process.
I recognise that airport pricing issues have been the subject of ongoing debate between airlines and airports, and that there will continue to be differing views about the appropriate scope of economic regulation of airports. New Zealand is not alone in this debate.
Earlier this year Cabinet considered a report on the nature and scope of regulation and pricing issues at regional airports. I understand a Ministry of Transport representative briefed you about this on Wednesday.
Cabinet considered that no regulatory change is needed at this stage as there is currently no evidence of regional airports exercising market dominance over airline users. We will continue to monitor regional airports so, if needed, we can reconsider our position.
There will always be an element of tension - healthy I hope! - in the relationship between airlines and airports. However, I understand that there is a spirit of willingness to work together. I encourage you to maintain this approach.
I hear the Association is also beginning to look at ways in which small regional airports can assist each other in developing landing charges while being mindful of the need to avoid the perception of collusion in price setting practices. This is good to see.
What the government is doing
Safety
This is also an industry where safety is of upmost importance. Safety affects people's lives and wellbeing, and so is always a priority.
Times may be tough, but this is more reason to ensure New Zealand's aviation industry maintains the high standard that the travelling public has come to expect and demand. It's very important we don't lose sight of this overarching objective.
The current reviews of wildlife management by the Department of Conservation (DOC), especially in relation to bird control near airports, is one safety issue of interest to the industry. I understand that a paper was presented on this earlier in the conference.
Bird strike is a serious threat to aviation safety - the recent incident at New York's La Guardia Airport shows the danger Canada Geese pose to aircraft, pilots and, consequently, passengers.
As you will know, the Civil Aviation Authority (CAA) is currently undertaking a review of Rule Part 139, the regulations governing the certification, operation and use of aerodromes.
Airport certification has been in the media recently as a result of the tragic mid-air collision in Paraparaumu. It's important that we do fully consider the issues at the smaller airports. The review is due to be completed in September next year.
Security
Another important issue for the sector is security.
You will be aware that in May this year Transport Minister Hon Steven Joyce announced the findings of the Domestic Aviation Security Review.
The Government considered a range of security measures to improve domestic aviation security, including a suite of measures proposed by your Association and Air New Zealand. I would like to thank airports for their valuable contribution to the review.
The Government decided that it would not extend security screening for domestic air travel. While there will always be some risk with unscreened passengers on domestic aircraft, the cost of implementing additional screening would have a disproportionate impact on domestic aviation and is therefore unjustified at present, particularly in these tough economic times.
The Government instead agreed to implement a range of alternative security measures.
One of these is to create airport security committees at all airports that service regular air transport passenger services on aircraft of 19 or more passenger seats.
We see security committees playing a key role in creating a collective security culture at airports, where stakeholders work together to improve security awareness.
The Ministry of Transport has developed a plan to establish airport security committees at the 21 airports around the country that do not currently have them. I understand the plan was recently discussed at an Association meeting.
The plan identifies eight priority airports where we would like at least two airport security committee meetings to be held between now and September 2011 - the start of the Rugby World Cup.
These airports are: Nelson, New Plymouth, Tauranga, Whangarei, Hawke's Bay, Invercargill, Blenheim and Gisborne. Establishing security committees at the remaining airports will follow.
Although the Government has agreed that no additional screening is required at this time, this stance would of course be revisited if New Zealand's threat level changed.
For this reason, I strongly encourage you to consider how your airport could implement additional passenger, crew, carry-on baggage and hold baggage screening if required, and incorporate these considerations in any terminal upgrade and development work that you undertake.
Streamlining trans-Tasman border
Those of you from international airports will have been interested in the work to streamline current New Zealand and Australian border processes as quickly as possible.
In the future, most Trans-Tasman passengers will have little interaction with border agencies because security and biosecurity screening will happen behind the scenes.
The expectation is that arrivals processing for immigration purposes will be completed at the departure point, and New Zealand's strict bio-security requirements will be met by electronic transfer of data across the Tasman while the baggage is in flight, and most trans-Tasman passengers will experience a streamlined exit from the airport at the end of their journey.
Both countries have agreed to install SmartGate, an automated passenger clearance system that will use ePassport and facial recognition technology to perform customs and immigration checks on Australian and New Zealand e-passport holders.
It should be installed at Auckland airport from December 2009, and Christchurch and Wellington during 2010. At this stage SmartGate is not planned for installation at the regional airports, although the proposals for front-loading processes and x-ray image transfer will apply.
There will also be changes to biosecurity screening in New Zealand from 2010, including risk profiling to identify high and low risk passengers and a proposed increased infringement fine for failing to declare or dispose of biosecurity risk goods.
Relationship between NZ Airports Association and government
Before I wrap up, I would like to congratulate the Association on your recent governance restructure, appointing your first full time Chief Executive and establishing an Executive Committee.
The effects of this are already evident in the Association's ability to more actively represent airports' interests at a central government level, and I know the Ministry of Transport and CAA have a good working relationship with you.
Finally, thank you again for the opportunity to speak with you today.
I look forward to working with you and furthering the relationship between the government and your organisation. Thank you.