| The Commonwealth Government today announced the strategy for the sale of Bankstown, Camden and Hoxton Park Airports, known as the Sydney Basin Airports.
The Government announced its decision to sell the airports by way of a 100% trade sale in March 2001.
No changes to the operation of Bankstown or Camden airports are required or are being proposed as part of the sale, and therefore the sale is not expected to impact on the local communities.
“Changes to the aviation environment since 11 September 2001, the collapse of Ansett and the trend to using larger aircraft, particularly on regional routes, means there is no longer a need for Bankstown Airport to develop an overflow capacity to supplement Sydney Airport,” Mr Tuckey said.
“The sale will go ahead without development obligations on any of the three airports.”
Senator Minchin said that in line with Government policy on asset sales, the proceeds of the sale would be used to reduce Commonwealth net debt.
“This is the last in a series of successful airport sales which, to date, have generated approximately $8.3 billion in net sale proceeds and led to significant investment and improved facilities at Australias airports,” Senator Minchin said.
“The sale will be managed by the Department of Finance and Administration in consultation with the Department of Transport and Regional Services and other relevant agencies.
“A range of specialist advisers including Caliburn Partnership, Australian Government Solicitor and Gavin Anderson & Company will assist in the implementation of the sale.”
Key components of the strategy include:
- The Governments preference for all three airports to be packaged together for sale as a group;
- Consistent with previous airport sales, the Commonwealths shareholdings in Bankstown Airport Limited and Camden Airport Limited will be sold with their existing lease terms which have about 45 years to run with an option to renew for a further 49 years;
- Hoxton Park Airport Limited will be sold with a shortened airport lease of five years with the land then converting to freehold title. (The five year airport lease can be extended a further two years upon agreement between the Commonwealth and the new owner);
- No specific development obligations will be imposed on the new airport owner to upgrade Bankstown Airport;
- No specific development obligations will be required at Camden Airport or Hoxton Park Airport.
“At the end of the shortened lease for Hoxton Park, freehold title will transfer to the owner of the lease and it will be up to the new owner to determine the best use for the site, consistent with relevant state and local government planning laws,” Mr Tuckey said.
“The lease term of five years with option to extend will provide adequate time for consultation and forward planning should the new owners contemplate changes to current operations at Hoxton Park.”
The sale is expected to be completed by the end of September 2003.
Media Contacts
| Graeme Hallett ( Minister Tuckey’s Office ) |
0419 688 440 |
| Jennifer Eddy ( Minister Minchin’s office ) |
0419 432 664 |
Information Note:
The Commonwealths objectives for the sale of the Sydney Basin Airports are:
- Optimise sale proceeds within the context of other sale objectives and broader Government policy;
- Minimise the Commonwealths exposure to residual risks and liabilities;
- Ensure that the new airport operator(s) has (or have) the appropriate management expertise, capability and commitment to operate the airport(s) and provide airport services;
- Ensure that the new airport operator(s) has (or have) the necessary financial capabilities to operate the airport(s) and maintain the aviation infrastructure over the term(s) of the airport lease(s);
- Ensure that the new airport operator(s) is (or are) committed to environmentally appropriate investment in a timely manner consistent with the term(s) of the airport lease(s) and Government policy;
- Ensure that the sale outcome complies with relevant airport and other legislative and regulatory requirements and is consistent with Government policy requirements; and
- Ensure fair and equitable treatment of employees including preservation of accrued entitlements.
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