Sydney airport expansion plans a worry for residents

March 23, 2004

Sydney airport expansion plans a worry for residents 
ABC Online, Australia

TONY EASTLEY: As many as one million Sydney residents
will be severely affected by aircraft noise as a
result of a new Government plan, according to the
Federal Opposition. Transport Minister John Anderson
has agreed to a new master plan, which could greatly
expand services from Sydney airport.

The Chairman and Chief Executive of Sydney Airport,
Max Moore-Wilton, has told Finance Correspondent
Stephen Long, he couldn't guarantee that more
residents wouldn't suffer.

MAX MOORE-WILTON: No, I can't give that assurance, and
nobody could because that's a complete misapplication
of the plan.

The plan is an indication of what would happen over
the next 20 years if technology does not change,
broadly speaking. Now, aircraft noise at the moment is
actually less than it was four years ago. 

We actually have fewer landings and departures at
Sydney Airport at the moment, than we had before the
Olympics.

STEPHEN LONG: But it's vital to the expansion plans of
the airport that you achieve these extra flights, and
you're saying there is a possibility of a trade-off,
that people could actually suffer some loss of
amenity, if the airport expands at the pace it does,
even accepting your assurances about quieter, more
modern technology?

MAX MOORE-WILTON: I mean, that's the whole point. It's
in a sense saying, are we going to expect today that
we'll be driving the same type of automobile in 20
years time as we're driving today?

Aircraft today, modern aircraft, are much more
efficient, much less polluting than they were 20 years
ago. Already we have aircraft which are going to be
double the size of the aircraft that are flying today,
which means that if you took it to the extreme, you'd
actually have no more landings or take-offs if you
used very large aircraft, but we're not taking it to
that extreme.

STEPHEN LONG: But you are looking at more landings and
take-offs?

MAX MOORE-WILTON: We are saying, if we have the sort
of mix that we have today, with some increase in size
of aircraft, there will be an increase in landing and
take-offs over 20 years. But I am saying the
technology… nobody at this stage knows how the
technology is going to change, except we do know that
aircraft are going to be bigger and quieter.

STEPHEN LONG: So in a sense, this is a blank cheque?

MAX MOORE-WILTON: No, it's not a blank cheque because
it provides an indication for the Government, for the
community and for the airport and its users, of what
could happen, given today's level of knowledge. The
important thing is that the Federal Government reviews
this plan every five years.

STEPEHN LONG: Well, how much credit can you personally
claim for the approval of the new master plan for
Sydney Airport?

MAX MOORE-WILTON: I wouldn't personally claim any
credit for it. I mean, it's a very, very major study,
which was undertaken by consultants on a very
professional basis, and submitted to the Federal
Government, and the Federal Department, where their
expert officers looked at the whole thing in great
detail.

STEPHEN LONG: Well, you used to head the Office of
Prime Minister and cabinet. Your connections played no
part in the decision?

MAX MOORE-WILTON: Not that I'm aware of.

STEPHEN LONG: What assurances did Macquarie and
Southern Cross consortium have about expansion of the
airport and the number of flights, when they bought
Sydney Airport for $5.6 billion?

MAX MOORE-WILTON: I'm not aware that they had any
assurances. I mean, I understand that it was an open
tender process. All of the tenderers, and they were
not only the successful consortium, were given exactly
the same information. There were no assurances given.

STEPHEN LONG: Yes, but the consortium was willing to
pay a lot more than other bidders, and most analysts
thought the price was on the high side. Does it
surprise you as a businessman that they paid that much
without assurances about expansion?

MAX MOORE-WILTON: Well, I mean I wasn't there at the
time and I wasn't involved, but I've seen that. The
reality is the Airport's results are showing that they
paid at the price that was appropriate to service the
price they paid. So I think analysts… I think
hindsight is a wonderful thing.

TONY EASTLEY: Max Moore-Wilton, Chairman and Chief
Executive of Sydney Airports, speaking there to
Finance Correspondent Stephen Long. 



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