Commonwealth Numbered Regulations - Explanatory Statements

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AIRPORTS REGULATIONS (AMENDMENT) 1997 NO. 269

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 269

Issued by the authority of the Minister for Transport and Regional Development

Airports Act 1996

Airports Regulations (Amendment)

Section 252 of the Airports Act 1996 (the Act) allows the Governor-General to make regulations prescribing matters that are required or permitted by the Act to be prescribed, or that are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the amending regulations is to ensure that the regulatory requirements placed on existing subleases and licences can reasonably be met by existing airport tenants.

Sections 34A and 35A of the Act provide that the regulations may prohibit specific kinds of terms from being included in airport subleases or licences, respectively. Airport subleases or licences authorise commercial trading activities at the airports. Regulations 2.08 and 2.16 of the Airports Regulations (the Regulations) prohibit a term in a sublease or licence, respectively, that imposes an obligation inconsistent With an obligation under the Act. These broadly worded regulations create unintended contractual difficulties for airport tenants and are unnecessary for regulatory purposes. These Regulations repeal regulations 2.08 and 2.16.

Sections 34B and 35B of the Act provide that the regulations may require that specified kinds of terms must be included in subleases or licences, respectively. Regulations 2.09 and 2.17 of the Regulations prescribe certain mandatory terms which must be included in subleases and licences, such as a sublease or licence is automatically terminated if a person, either alone or with associates, is able to exercise control over either the whole or a substantial part of the airport concerned.

The Airports Regulations (Amendment) amends Regulations 2.09 and 2.17 to clarify that the mandatory terms apply to a sublease or licence only if its terms are varied after the commencement of the proposed Regulations.

Details of the Regulations appear in the Attachment.

These Regulations will commence on notification in the Gazette.

Attachment

Clause 1 - Amendment

Regulation 1.1 provides that the Airports Regulations are amended as set out in these regulations. These regulations will commence on Gazettal.

Clause 2 - Regulation 2.08 (Prohibited terms in leases)

Regulation 2.1 omits from the Regulations regulation 2.08. Regulation 2.08 prohibits a term in a sublease which is inconsistent with an obligation under the Act.

Clause 3 - Regulation 2.09 (Mandatory terms in subleases)

Regulation 3.1 inserts into regulation 2.09 of the Regulations a new subregulation (2), which provides that the mandatory terms to be contained in a sublease under subregulation (1) do not have to be contained in a sublease existing when the airport was leased until the sublease is varied.

Clause 4 - Regulation 2.16 (Prohibited terms in licences)

Regulation 4.1 omits from the Regulations. regulation 2.16. Regulation 2.16 prohibits a term in a licence which is inconsistent with an obligation under the Act.

Clause 5 - Regulation 2.17 (Mandatory terms in licences)

Regulation 5.1 inserts into regulation 2.17 of the Regulations a new subregulation (2), which provides that the mandatory terms to be contained in a licence under subregulation (1) do not have to be contained in a licence existing when the airport was leased until the licence is varied.


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