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Clause 7 - Market power determinations

Civil Aviation Bill – in a Public Bill Committee at 5:30 pm on 28th February 2012.

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Question proposed, That the clause stand part of the Bill.

Photo of Theresa Villiers Theresa Villiers The Minister of State, Department for Transport

I will be brief, because clause 7 is relatively straightforward. Subsection (1) empowers the CAA to determine whether the market power test is met in relation to an airport area whenever it considers it appropriate to do so. To comply with provisions in the airport charges directive, subsections (2) to (4) of clause 7 also require the CAA to make a market power determination in respect of an airport area if it is requested by the operator of that area or by a person who is likely to be materially affected by the determination; if the request consists of or includes all or part of the core area of the airport—broadly speaking, at least one of the runways and associated facilities, passenger terminals or cargo processing areas; and if the request concerns an airport with more than five million passenger movements in the previous year.

Under subsection (5), the obligation on the CAA to conduct a market power test on request does not apply if it has previously made a market power determination and considers that there has not been a material change of circumstance since that determination. That is because such a determination should not differ from the previous one, so it would be a waste of time and resources to carry out a new one.

Question put and agreed to.

Clause 7 accordingly ordered to stand part of the Bill.