1 00:00:00,160 --> 00:00:02,600 Speaker 1: Now was it a surprise the Commerce Commission has decided 2 00:00:02,640 --> 00:00:04,640 Speaker 1: not to look into pricing at the airport's in New Zealand. 3 00:00:04,680 --> 00:00:07,040 Speaker 1: Not happy. Not surprisingly they claim four hundred and seventy 4 00:00:07,080 --> 00:00:10,400 Speaker 1: six million alone by twenty thirty two. ComCom did say 5 00:00:10,400 --> 00:00:13,560 Speaker 1: there needs to be early oversight of large airport spending. 6 00:00:13,560 --> 00:00:15,800 Speaker 1: Now CATHERL. Brian's executive director of course for the Border 7 00:00:15,840 --> 00:00:18,599 Speaker 1: beir owned Representatives and it's back. Well, this's Kath morning 8 00:00:18,640 --> 00:00:18,960 Speaker 1: to you. 9 00:00:19,600 --> 00:00:20,280 Speaker 2: Good morning Mike. 10 00:00:20,360 --> 00:00:21,120 Speaker 1: Are you happy or not? 11 00:00:22,320 --> 00:00:24,880 Speaker 2: Look? I am happy that the Commerce Commission is doing 12 00:00:24,960 --> 00:00:28,360 Speaker 2: everything in its power to take a look at very 13 00:00:28,440 --> 00:00:33,559 Speaker 2: large airport price airport costs. So they proposed some changes 14 00:00:33,600 --> 00:00:36,919 Speaker 2: to the regulation that they look after so that they 15 00:00:36,960 --> 00:00:40,720 Speaker 2: will take a careful look at large proposals for airport 16 00:00:40,760 --> 00:00:45,199 Speaker 2: building ahead of that building being committed to. And I 17 00:00:45,240 --> 00:00:49,440 Speaker 2: think that is really important and really good and set 18 00:00:49,440 --> 00:00:52,680 Speaker 2: definitely something we need to do. So the second thing 19 00:00:53,080 --> 00:00:56,560 Speaker 2: is that the Commission has said that they can't run 20 00:00:56,560 --> 00:01:01,560 Speaker 2: an investigation, or that running an investigation wouldn't give the 21 00:01:01,640 --> 00:01:05,119 Speaker 2: right outcomes that they're looking for, essentially because the inquiry 22 00:01:05,319 --> 00:01:10,000 Speaker 2: process in the Commerce Act is complicated and expensive, and 23 00:01:10,160 --> 00:01:13,160 Speaker 2: when you run it. It means that you have to 24 00:01:13,240 --> 00:01:16,040 Speaker 2: apply the findings to all of the airport's, not just one, 25 00:01:16,680 --> 00:01:19,280 Speaker 2: So it's sort of not it's the purpose, right, and 26 00:01:19,319 --> 00:01:22,160 Speaker 2: so they can't use it. It's not so much. 27 00:01:22,040 --> 00:01:24,880 Speaker 1: That they don't want to, they don't have the tools 28 00:01:24,880 --> 00:01:26,000 Speaker 1: of the rules to be able to do it. 29 00:01:26,280 --> 00:01:29,200 Speaker 2: Yeah, yeah, yeah. And the other sort of interesting thing 30 00:01:29,280 --> 00:01:32,440 Speaker 2: is that MB ran a review into airport regulation just 31 00:01:32,520 --> 00:01:36,280 Speaker 2: earlier this year and they found the same thing. So 32 00:01:36,360 --> 00:01:38,960 Speaker 2: now the ComCom and mb agree with each other that 33 00:01:39,000 --> 00:01:42,840 Speaker 2: the Commerce Act needs an update to actually be used properly. 34 00:01:42,880 --> 00:01:44,559 Speaker 1: For you, I'm very glad we got you on the program, 35 00:01:44,600 --> 00:01:46,680 Speaker 1: Cas because I didn't understand that part. So that doesn't 36 00:01:46,680 --> 00:01:48,720 Speaker 1: mean they don't want to or couldn't or shouldn't. It 37 00:01:48,800 --> 00:01:51,040 Speaker 1: just means they're not allowed to currently. So maybe somebody 38 00:01:51,080 --> 00:01:52,840 Speaker 1: needs to change their rules of engagement. 39 00:01:53,640 --> 00:01:55,720 Speaker 2: Yeah. Well, it means if they did run an inquiry 40 00:01:55,800 --> 00:01:58,560 Speaker 2: it would take probably two years. It would be appealed 41 00:01:58,600 --> 00:02:01,880 Speaker 2: before the courts, so two years will be a short run. 42 00:02:02,320 --> 00:02:04,800 Speaker 2: And then once you got to the very end of it, 43 00:02:04,840 --> 00:02:07,240 Speaker 2: if you ever did, you'd have to apply those findings 44 00:02:07,280 --> 00:02:08,800 Speaker 2: to Auckland, Wellington and christ Church. 45 00:02:09,040 --> 00:02:12,200 Speaker 1: Should I be exercised because the New Zealand line is 46 00:02:12,200 --> 00:02:14,160 Speaker 1: that it all gets passed on to the punter anyway, 47 00:02:14,200 --> 00:02:17,160 Speaker 1: and so whatever price goes up, the ticket user pays 48 00:02:17,160 --> 00:02:19,680 Speaker 1: the price. So we should all be energized to some degree, 49 00:02:19,680 --> 00:02:20,200 Speaker 1: shouldn't we? 50 00:02:21,040 --> 00:02:22,800 Speaker 2: Yeah, well, I think we should be. I mean what 51 00:02:22,800 --> 00:02:25,160 Speaker 2: we've seen here is Auckland Airport put up this you know, 52 00:02:25,280 --> 00:02:28,919 Speaker 2: multi billion dollar capital plan six plus billion dollars, and 53 00:02:29,400 --> 00:02:33,560 Speaker 2: that has has come forward as cost to airlines. And 54 00:02:33,639 --> 00:02:35,560 Speaker 2: I can I can fairly in New Zealand's paint on 55 00:02:35,560 --> 00:02:38,440 Speaker 2: this because they pay the majority of that cost because 56 00:02:38,440 --> 00:02:41,720 Speaker 2: they are the majority airline and that location, so I 57 00:02:41,720 --> 00:02:45,440 Speaker 2: can see why they have strong views. But that cost 58 00:02:45,440 --> 00:02:50,079 Speaker 2: has come in at a time when the returns for 59 00:02:50,560 --> 00:02:53,600 Speaker 2: airports are quite high. So for every dollar that Capixiokland 60 00:02:53,600 --> 00:02:55,560 Speaker 2: Airport's going to make seven point eight two percent once 61 00:02:55,600 --> 00:02:59,760 Speaker 2: that our set is completed. So that's seven point two 62 00:03:00,160 --> 00:03:02,360 Speaker 2: bad right, And so that's a really good incentive to 63 00:03:02,440 --> 00:03:05,720 Speaker 2: build an expensive airport. When I started in this business, 64 00:03:06,440 --> 00:03:09,000 Speaker 2: returns to airports we're in the fours and fives. So 65 00:03:09,040 --> 00:03:12,399 Speaker 2: now we're in the sevens and eighth and maybe nine, 66 00:03:12,800 --> 00:03:14,720 Speaker 2: and so it's a great time to build a really 67 00:03:14,760 --> 00:03:20,160 Speaker 2: expensive asset, and so I think the COMMICS Commissioner is like, huh, 68 00:03:20,400 --> 00:03:23,600 Speaker 2: we'd better actually try to get in front of this 69 00:03:24,360 --> 00:03:26,000 Speaker 2: rather than behind it, which is where they are at 70 00:03:26,040 --> 00:03:26,360 Speaker 2: the moment. 71 00:03:26,480 --> 00:03:29,040 Speaker 1: Great insight, Kath, well done, Appreciate it very much. Kath O'Brien, 72 00:03:29,120 --> 00:03:31,480 Speaker 1: executive director for the Border Berline Represented. Don't you like 73 00:03:31,520 --> 00:03:34,680 Speaker 1: bright people? Tell you what the com com did yesterday. 74 00:03:34,680 --> 00:03:35,880 Speaker 1: I don't have time to tell you now, but I 75 00:03:35,920 --> 00:03:38,200 Speaker 1: will tell you later. They hold into a couple of 76 00:03:38,200 --> 00:03:40,720 Speaker 1: brick layers in Marlborough. No wonder they didn't have time 77 00:03:40,720 --> 00:03:42,760 Speaker 1: to look at Auckland Airport. They're busy with the bricklaying 78 00:03:42,800 --> 00:03:43,760 Speaker 1: business in Marlborough. 79 00:03:44,160 --> 00:03:47,040 Speaker 2: For more from the Mic Asking Breakfast, listen live to 80 00:03:47,160 --> 00:03:47,720 Speaker 2: news talks. 81 00:03:47,720 --> 00:03:50,920 Speaker 1: It'd be from six am weekdays, or follow the podcast 82 00:03:50,960 --> 00:03:51,840 Speaker 1: on iHeartRadio.