Opening Speech to NZ Airports Annual Conference 2010
Good morning and thanks to the Chair of New Zealand Airports, Steve Fitzgerald, for inviting me to speak to you today.
Today I'd like to outline the government's current policies and thinking on some important issues that affect New Zealand's airports.
Queenstown Airport
Queenstown is a very appropriate venue for this annual conference given the theme of "Connecting New Zealand."
Despite being one of our smaller regional centres, Queenstown is one of the busiest airports in the country for take-offs and landings of all aircraft types.
It has the third largest number of international visitors passing through, and a significant chunk of the domestic market.
International numbers are expected to grow a further 60% in coming years, with passenger numbers expected to reach one million next year. This is a great achievement, and a challenge, for any regional airport.
It makes the various upgrades happening here very important. Construction on a new baggage handling facility began last month, and there are plans to install lights on the runway.
Next month Jetstar will begin international services, and Air New Zealand's new fleet of A320s begin arriving in January next year.
Congratulations on the good relationships you've developed with your airline customers and security providers to make sure you can handle these new services.
Tourism
I spoke to your organisation a few months ago at a function in Parliament's Grand Hall, and I made it clear the government's top priority for transport is to maximise its contribution to economic growth and productivity.
Airports have a huge role to play in that as our international gateways for tourism and trade. As a small nation a long way from our potential visitors and trading partners, it's essential that we're well connected to the rest of the world.
Of course, it's been a tough couple of years for tourism and therefore for airports. The global recession has had a major impact on the number of domestic and international passenger numbers around the world.
Our numbers have held up reasonably well though. April's research report for the Ministry of Tourism showed that, on average, every half hour, six hundred and ninety New Zealanders start a domestic holiday, and forty-two Australian visitors start a New Zealand holiday.
In addition, two-thirds of New Zealanders say they want to travel more in New Zealand.
As the research report stated, domestic tourism is big. It's worth more to us in a year than international tourism. This is good news for all airports, particularly the twenty-five that don't cater directly for the overseas market.
I urge those who haven't to read the Domestic Tourism Segmentation report to understand how to maximise the economic opportunities from the domestic market. It's available online at www.tourismresearch.govt.nz.
There are encouraging signs that the economy is getting back on its feet and reasonable growth is forecast for the next few years.
Prime Minister John Key, in his capacity as Minister of Tourism, has announced thirty million dollars of new funding for tourism, so the time is right for everyone in the aviation industry to be promoting their regions and New Zealand as a destination.
Rugby World Cup 2011
Of course, next year New Zealand is hosting our biggest sporting event ever with the Rugby World Cup.
This is a huge opportunity to open up new markets, and exploit existing connections to the rest of the world.
We're expecting something like eighty-five thousand international visitors, many of them from Australia and the UK which are our two biggest existing overseas tourist markets.
Something many New Zealanders may not realise is that in those two countries, Rugby Union is largely a middle and upper class sport. Many visitors are likely to be high-income earners and keen to explore New Zealand's culture, scenery and cuisine.
Many tourists will be passing through our smaller regional airports, as well as the major international terminals, as they follow their teams in 13 different venues.
We need to make sure all our visitors receive a warm Kiwi welcome and have a great time here in New Zealand. Our airports are critical to our motto of ‘Giving it one hundred per cent' to make the Rugby World Cup a success and ensure visiting teams and supporters have an unforgettable experience.
Airport security committees
Part of creating that experience will be making sure our airport security systems are up to scratch, while at same time ensuring that security concerns aren't a barrier to people enjoying their travels here.
The Ministry of Transport is working on Cabinet's decision to establish security committees at the twenty-one airports around the country that haven't had them.
We see these committees playing a major role in developing high-quality security at airports, with all stakeholders working together to improve awareness at airports.
Security committees have now been successfully established at Nelson, New Plymouth, Tauranga, Whangarei, Hawkes Bay, Invercargill, Blenheim and Gisborne Airports. I appreciate the cooperation and support those airports have shown to get the committees up and running.
The CAA is continuing to develop a security Rule which includes a requirement to form airport security committees. The CAA expects to release the draft rule for comment next March.
New Zealand's terrorism threat level remains unchanged and we still maintain that no extra security screening is required. We'll revisit this if the situation changes, particularly in the run-up to the Rugby World Cup.
I would like to reiterate what I said to you at your conference last year, which is that I recommend you consider how you could implement additional passenger, crew and baggage screening if needed.
It is worth taking this into account for any upgrade work you're planning at your airports before the Rugby World Cup.
Trans-Tasman border streamlining
Aside from the Rugby World Cup, there are plenty of opportunities to help make travelling easier for our Australian visitors, and trips over the Tasman easier for Kiwis. We're making good progress on the various initiatives that came out of Prime Ministers Key and Rudd's agreement in August last year to streamline the trans-Tasman border.
Both countries are committed to the eventual goal of a common border between our countries, but in the short term the focus is on continual improvements.
SmartGate is now in place for passengers arriving at Auckland, Wellington and Christchurch airports, as of yesterday. It uses facial recognition software to perform the checks normally done by a Customs officer.
By the middle of next year the government intends to have SmartGate in place for passengers departing from those airports as well. There is discussion on how to further expand this scheme to improve the passenger travelling experience, so watch this space.
The government is also planning to implement x-ray image transfer next year to make the process for passengers even smoother.
This means that x-ray images will be reviewed by Biosecurity Officers while the aircraft is en route to New Zealand, allowing officers to identify potentially risky goods before the aircraft has landed.
The majority of trans-Tasman passengers, who generally don't have risky goods in their bags, will be able to leave the airport more quickly. This initiative will be implemented in 2011.
In the meantime, the Ministry of Agriculture and Forestry/Biosecurity New Zealand has introduced a low intervention lane at Christchurch for passengers identified as low risk, and at Auckland for all Australian and New Zealand passport holders.
In general, these low intervention lanes enable low risk passengers to exit the airport more quickly, and for the Ministry to focus on higher risk items. Plans are also underway for a lane at Wellington airport.
CAA funding review
As you'll probably be aware, the CAA will soon be consulting on its Funding Review. While this may not affect you directly, it will affect providers of aviation services, such as small airlines, that use your facilities.
The current funding situation makes it difficult for the CAA to be effective. It needs to keep up to date with developments in aviation technology and become a more risk-focused regulator.
The CAA will consider all submissions on its proposed changes before making final recommendations to my colleague Steven Joyce, the Minister of Transport.
You can find the consultation documents on the CAA website and I ask you to consider making a submission, as we need to hear feedback from across the aviation industry.
Rule Part 139
Of more direct impact is the CAA review of Rule Part 139. For those of you who manage non-certificated airports with scheduled air transport operations, the proposed changes will have a major impact.
Of particular note is the extension of certification requirements to aerodromes supporting aircraft that carry 10 to 30 passengers, and the requirement for all other non-certificated aerodromes open for public use to meet some very basic design and reporting requirements.
As many of you appreciate, this review is required to bring New Zealand aerodromes up to International Civil Aviation Organisation standards and recommended practices.
The Rule Design Document is scheduled to be reviewed by the Project Working Group in November this year, followed by public consultation on the Notice of Proposed Rulemaking, known as NPRM, in April next year. I encourage all of you to participate.
Air Services Review
Looking further afield, the Ministry of Transport is about to begin work on a review of New Zealand's international air transport policy.
We want to ensure it is supporting economic development and that regulatory frameworks are responsive and flexible to change.
Our international air transport policy was established in 1985 and restated in 1998. The 1998 policy set out the overall objective of air transport as being to maximise economic benefits to New Zealand, including trade and tourism, consistent with foreign policy and strategic considerations.
This has resulted in the most liberal and flexible air services arrangements possible with other countries, and a whole range of new agreements over the last 25 years.
It has meant increased opportunities for airlines, more tourists into the country and it has helped many New Zealanders see the world.
It's been a dramatic few decades for the aviation industry. We've seen rapid growth and expansion, but we've also had global challenges such as terrorism, pandemics, volatile fuel prices and the worst recession in generations.
We've also seen continuing expansion of global airline alliances, and a trend towards regional, rather than bilateral, air services agreements between governments.
Given all this, we think a review of the current policy is timely.
Virgin Blue-Air New Zealand alliance
Another issue on your radar will be the proposed merger of trans-tasman services by Air New Zealand and Virgin Blue.
Now that the airlines have submitted an application for authorisation to the Ministry of Transport, the Ministry must evaluate the application using statutory and public interest criteria before reporting to my colleague Steven Joyce, the Minister of Transport, in due course.
Emergency Management
Finally, after recent events in the Canterbury region it's worth touching on emergency management.
We know that an event like this can strike anytime, anyplace.
I know the transport sector agencies have some learnings from this about how to improve individual organisational responses and coordination across the sector.
Many of you will have participated in exercises such as Capital Quake (a major earthquake Wellington) and Exercise Ruamoko (a volcanic eruption in Auckland).
Next week, on the 20th, there's Exercise Tangaroa, a tsunami coming across the Pacific towards the east coast of New Zealand, with potential to severely impact our airports.
There are a number of airports which could be directly affected by a tsunami or may need to provide a ‘safe haven' for aircraft in a real event. I hope you are using this opportunity to test your readiness for these kind of events.
In summary, I hope you will take up the various opportunities I've raised to have an input into the Government's work programme for the aviation sector.
Airports make a huge contribution to New Zealand's economy and the government wants to see that continue. Your industry has faced a number of challenges in recent years but has a bright future.
All the best for the rest of your conference.