Report on airport pricing postponed

By DANIEL RIORDAN

The Commerce Commission now plans to finalise its report on airport price control in the second quarter of next year.

It originally hoped to report to Commerce Minister Paul Swain last Friday, although it had allowed slippage up to August 1 next year.

After releasing a draft report in July, the commission received cross-submissions over 10 days of public hearings in September.

Director of business competition Geoff Thorn said the commission was working through a range of complex issues and needed to consider all the information received.

Auckland Airport managing director John Goulter criticised the delay, saying the commission put pressure on all parties to abide by its tight timetable and did not allow requests for amendments.

But he accepted the commission's judgment that it needed more time to give "a fully considered final report".

The commission's draft report on whether price control should be imposed on Auckland, Wellington and Christchurch airports found that it was warranted in Auckland as its landing charges included monopolistic returns beyond allowable limits.

Auckland has disputed the finding, arguing that under the present "light-handed" regulatory regime a form of price control already exists.

The dispute hinges on how to value airport assets.

Other monopolies, including ports and electricity companies, are watching the debate with interest.