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    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

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Airports Association to appeal Commerce Commission decisions over asset values

February 1, 2024
in Business
Airports Association to appeal Commerce Commission decisions over asset values
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An Air New Zealand aircraft parked at Auckland airport.

NZ Airports Association says the Commerce Commission’s latest rules “introduced considerable uncertainty when it came to long-term investments”.
Photo: 123RF

The NZ Airports Association will appeal the merits of the Commerce Commission’s recent decisions on how the value and costs associated with airport assets are set.

The commission completed its review of input methodologies for key regulatory assets in December, which also included rules for electricity lines and gas pipelines.

“Our concern is reinforced by some material technical errors that we have identified in the commission’s final report,” Airports Association chief executive Billie Moore said.

The commission’s rules were meant to ensure airports and the energy sector could make a fair return on long-term infrastructure investments, while ensuring consumers were not overcharged for those services.

However, Moore said the latest rules were fundamentally different from the previous set of rules, and introduced considerable uncertainty when it came to long-term investments.

“With the commission’s previous approach to input methodologies we had a more objective, well-tested foundation for airports to fund long-run investment. We consider this is no longer the case and we are concerned that consumers will ultimately bear the cost.”

She said Auckland, Wellington and Christchurch Airports were also seeking a merits review.

“Airports must plan decades in advance to ensure New Zealand’s connectivity can grow, regions can develop, and infrastructure is ready for decarbonised aviation technology,” Moore said.

“This investment requires regulation that is stable, consistent and aligned with regulatory best practice so airports can confidently plan and finance multigenerational infrastructure projects for the benefit of New Zealand.

“This applies not only to our larger international airports, but also affects our smaller airports which are essential to keep regional New Zealand connected.”

The deadline to appeal the commission’s input methodologies to the High Court is today (1 February).

The commission said it was considering a response to the appeals as part of the court process.

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