[1]

CABi

ET-IN-Co NFIDEN

Copy No.

CAB ^NET

43

Mr NUTE

Canberra, 21. March L989

No. 1.2357

Submtssi. on No. 6278

Sydney Reg, .on Atrport Needs

Further to Cab, .net M, .nute 1.234J. of 9 March 1.989,

the Cab, .net agreed that : ( a)

the M, .ni. ste, = for Transport and Coinmunt. cat, .ons

announce the estabLl. shinent of a rev, .ew of

traffl. c management arrangements at XI. rigsford

Sinl. th ALT. port ( KSA ) to be undertaken ,. n
consuLtati. on w, .th atr, .,. nes, State Government and
other ,. riterested part, .es ;
(b)

the terms of re^e, :ence for the revt. ew be as set

out at Attactunent D to the Subm, .ss, .on;

(c)

an 13nvi. roomentaL Tinpact SI:atement ( ETS ) on the

tinp1.1.0att. ons of construct, .rig a th, .rd, med, .unspaced, paraLl. eL runway at KSA commence
tnned, .ate, .y on the basts that construct, .on w, .,. J.
proceed I. ^ there ,. s a sat, .sfactory outcome ;

This document is the property of the Australian Government and is riot to be copied or reproduced

CABINET-IN-CON IDEN

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, SINE

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2.

No. 1.2357 (Contd)

( d)

preparat, .on of the ETS take i. nto account the

proposed mode of operat, .on wh, .ch wouLd riot aLLow

departures from the new runway to the north and

wouLd conf, .ne use of the east-west runway to
c, .,=Gumstances when adverse weather cond, .tt. ons

precLude use o^ other runways for safety

reasons;

(e)

a generaL avi. atton fact. L, .ty be deveLoped

tinnedLateLy as a f, .r'st stage at Badgery' s Creek;

(^)

on the basts that the second stage at Badgery' s

Creek w, .L, . provi. de for both domest, .c and
trite mati. on aL serv, .ces = -

(I. )

detai. .I. ed des, .gn work for such a

factl. I. ty tinned, .ateZ. y be commenced ;

( ,.,. )

funds of the order 0^ $5 in, .,. Li. on be

a, .Located for th, .s purpose ; and

( I. I. I. )

tinned, .ate consuLtat, .ons be undertaken

w, .th the NSW Government on such ,. ssues

as road and ra, .,. access, provt. SLon o^

State ut, .,.,. tl. es, Land use zorii. rig and
the need for rel. ocat, .on of ex, .st, .. rig
I. nfrastructure ;

. . . 13

This document is the property of the Australian Government and is riot to be copied or reproduced
A

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A

FD

3.

No. L2357 (Contd)

(g)

Land acqui. si. ti. on at the Badgery^ Creek SI. te be

acceLerated, i. f necessary by use o^ coinpuLsory

acqui. SLti. on procedures, to enabLe the earL, .est
pract:,. cabJ. e commencement: of construction and
reLated act, .vi. ti. es ;
(h)

the FederaL Government assume respons, .bi. Li. ty for

some LocaL road upgrading in the Badgery^ Creek
area ;

(t)

the Fede, :aL Atrports Corporati. on be requested to

commence preL, .ini. na, =y des, .gn work as soon as

possi. bLe on the deveLopment o^ a medi. urn-spaced

para, .I. eL runway at KSA and aLso that desi. gn work
be commenced tinnedLateLy on the deveLopment of a
generaL avi. atton factLi. ty at Badgery^ Creek;
(J )

a coinmun, .ty ,.,. at. son and pubLi. c i. nfo, =mat, .on
program on the background and reasons for the
Government ' s dec^. si. on be undertaken over the

next 3-4 months at an esti. mated cost of $0.75

inI'LL^. on wi. th the resuLts bei. rig used as an triput:

to the ETS process; and
(k)

no act, .on be taken to ei. the, = d, .spose of the

Schofi. eJ. ds ae, =odrome or otherwi. se deveLop the
s^. te i. n a way whi. ch wouLd prejudice i. {:s future
use as a major generaL avi. atton ^actl. I. ty.

11^

Secretary to Cabi. net

This document is the property of the Australian Government and is riot to be copied or reproduced

..

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CA ^INET-IN-

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NC
Copy No

CAB TNET

Mr NUTB

Canberra, 9 March 1.989

No. L2341.

Submi. ssi. on N0 . 6278

Sydney Region ALTport Needs

Further to Mt. nute 1.2302 of 6 March 1.989, the

Cabi. net resumed i. ts consi. derat, .on of the Submi. ssi. on and

agreed to continue di. scussi. on on Tuesday 1.4 March 1.989 .

A-^

Secretary to Cabi. net

This document is the property of the Australian Government and is riot to be copied or reproduced

CABIN T- N-CONF D NC

43

[5]
A

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.

CAB TNET

F .E

MrNUTB

Canberra, 6 March L989

No. 1.2302

Submi. SSLon No. 6278

Sydney Regi. on Airport Needs

The Cabinet commenced cons, .derati. on o^ the

Subm, .ssi. on and agreed to resume di. scussi. on at a Later date.

A-^

Secretary to Cab, .net

This document is the property of the Australian Government and is riot to be copied or reproduced

T-IN C .

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6278

FOR CA

IN T

SYDNEY REGTOIT ATRPORT NEEDS

Title

The Hon RaLph Wi. LLi. s, MP, Mini. ste, , for Transport and

Minister

Coinnuni. cat, .ons

To canvass opti. ons for meeting future atI:'port needs i. n

Purpose/Issues

the Sydney Regi. on.

.
Tt has been longstandi. rig Government po, .i. cy (most
recentLy reaffi. ,:med in Cabi. net Decisi. on No ,. L766 of 1.8
August ,. 988) riot to but. I, d a thi. ,:d runway at Sydney
Kings^ord Sini. th Ai. ,:port (KSA) .
Relation to

A substanti. aL proporti. on of the travel. Li. rig pubLi. c, al. L

existing policy

major airl. i. nes, tourist industry bodi. es and the State

Government support deveLopment of a third runway at KSA

.
.

in preference to development of the Second Sydney

ALEpo, :t. at Badgery's Creek. I. ^ocaL Counci. I'S and

Sensitivity/Criticism

Legislation

Attorney-GeneraL's Department advises that no

Legi. SLati. on, other than appropri. ati. ons , woul. d be
necessary to tinpl. ement the recommendati. ons i. n the

involved

Submi. SSLon.

ncy

C Itical/significant
dates

coinnuni. ty groups strongLy oppose any further runway

development at KSA.

Congestion at 1<SA i, s now a major pubLi. c issue.

Government i. s betng subjected to incl:'eastng cri. ti. ci. sin
for riot havi. rig a cLea, ? strategy to deal. wi. th the
probLem.

Prime Mini. ste, ? and Cabi. net ; Treasury ; Fi. nance ; Defence ;

suitation:

Ministers/Depts
consulted

Attorney General. ' s ; Arts , Sport , Environment, Touri. sin

and Tenri. tortes ; Admi. ni. stirati. ve Servi. ces.

(See Attachment 1<, p55) . Fi. nance and Treasury

support constructi. on of a third runway at 1<SA rather
than commencement of deveJ. opment at Badgerys Creek.

No .

. Is there

agreement?

As soon as possi. bLe after decisi. on. Proposed medi. a

Timing/handling of

rel. ease is at Attachment A, page 21.

announcement

Cost

Fin Yr (

$6611

1.99, .-92

1.99 0-91.

,. 989 -9 O

Fin Yr (

$ 9,011

Fin Yr (

$,. 00M

Thi. s exc, .udes ' on budget ' operati. rig subsidy to the
whi. ch wouLd need to be negotiated wi. th the FAC.

This document is the property of the AUStra/^^n Government and is not to be copied or reproduced
^

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BACKGROUND

L.

Options for the future deveLopment O^ Sydney's ai. EPOrt

system have been the subject of both numerous studies and

c o n s I d e r a b I. e p ub L I c d i. s c12. s s I o n o v ex' in a n y y e a I:' s .

Tn

October 1.982, the Frase, , Government announced its I. ritenti. on

to build a thi. rd runway at KSA (east of, and paraLLel. to,
the existing north-south runway) . I:t has been Longst;andi. rig
Government POLLcy riot to bull. d a thi. rd runway at KSA.
On coining to of^ice in 1,983, we announced the immediate
cessation of pLanni. rig work associ. ated wi. th the thi. ,:d runway
proposaL and mittated a comprehensive study to determine a
site ^or the deveLopment o^ a Second Sydney ALL'port.

Tn

February 1.986, we announced that the Second Sydney ALL'port

would be devel. oped at Badgerys Creek. ACqtii. siti. on o^ Land
on the Badgerys Creek SLte has' been proceed trig since that
time. A Jotnt CommonweaLth/NSW Offi. ci. aLS Task Force has
recentLy prepared a report on the future airport needs o^
the Sydney Region. The Fede, =aL Airports Corporation aLso
comintssi. oned Bechte L AVI ati. on S e, =vi. ce s , an i. rite mati. on a, .
c o n s u L t a ncy ^ L rin , t o und eI:'ta ke c onceptua L engi. neeri. rig
studi. es In reLati. on to options for devel. opi. rig Badgerys Creek
as weLL as deveLopment of a medium spaced paraLLeL runway at
KSA.

Copies of both the Joint Task Force Report and the

BechteL Reports are avai. LabLe ^1.0m the Cabinet Office.

TSSUES

2.

Signi. etcant tra^fi. c growth in the past five year's (20^

for totaL tra^tic and 62^ for internati. on aL movements) has

led to LeveLS of tzar^IC Congesti. on and deLayS to at, :CZa^t
and passengers at 1<SA whLch are wideLy regarded

as

uriacceptabLe by the traveLLi. rig publ. IC, the aviation industry

and coinmerci. aL interests. The annuaL traffic demand

(207,000 aircraft movements in 1.988) has now al. most reached

the assessed annuaL capacity of the at, =port (some 220,000) .
Tt Is parti. cuLarLy signi. ^ICant that tra:Eelc aL, ready exceeds

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CABINET-IN

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the handLi. rig capacity o^ the airport for si. gritfi. cant pertods
of the day. This situati. on i, s compounded when capaci. ty is
reduced by adverse weather, resul. ti. rig in widespread and
extended deLays. Delays at KSA aLso have an impact on
airLi. ne scheduLes nation aLLy because of Sydney' s pivotaL
roLe In the national. avi. atton network. Strong growth is
forecast to continue (2.9^ pa ^or total. movements to 3.995
and 4.4^ pa for internati. on aL movements) . Detai. Ls are at
Attachment B, page 23 .

DeLays duri. rig peak periods can be

expected to increase (at a rate in excess of traffic growth)

unless urgent acti. on Is taken.
3.

The Long standing cur^ew arrangements which appl. y at

KSA Limit the fLexi. bi. Lity of internati. on aL airLi. nes a rid
freight operati. ons, and have the potential. , particuLai:I. y
with strong forecast growth i. n i. riternati. on aL demand, to push
ino re I riternati. on aL movements towards the morning domestic
peak, thus exacerbati. rig the current probLems .
4.

These probl. ems wi. I. L reqtii. re concerted attention by means

of a combi. natton of s

tinmedi. ate and tritensi. ve tra f fi. c management measures,

particuL arLy pendi. rig the construction o f addi. t. tona L
runway capaci. ty ; and
the constructi. on o f si. gni. f i. c a n t a ddi. ti. o n a L runw a y
capacity In the Sydney region which WILL take 4-6 year's
dependi. rig on the LeveL -of deveJ. opment.
Traffic Mariaqement

5.

The Joint Task Force on Sydney Basin Airport Needs

identified a range of traffic management measures whi. ch

ini. ght possi. bLy be impLemented at KSA to provi. de some
i. mined late reLi. e^ from congesti. on and to o^fset to some
extent the e^^ects of t, :at^i. c growth, parti. cuLarLy pendi. rig

CABIN T- N-CONFl.

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BINET-IN-CONFIDENC
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the construction of additiona3. runway capacity In the Sydney

Regi. on .

POS SLbl. e measures Inc Lude capacity enhan c eme n t

(improved air traffic controL and/or reLaxati. on of noise

abatement procedures ) and demand management ( pricing , s L ot.

aLLocati. on, or simple excLusi. on by reguLati. on of some

categories o^ Light aircraft. ) . Detail. s o^ possi. bLe tzar^IC
management measures and the concerns they are Ii. keLy to
raise are at Attachment C, page 24 .

Tf t, =a^Etc management

measures are to be e^recti. ve they must necessari. I. y have a

substanti. al. impact on some user's (eg operators of commuter
services to regionaL areas and NewcastLe) . The concerns of

at^ected groups must be tackled in a consuLtati. ve way.

Dra^t terms of re^erence for a consuLtati. ve process

invoLvi. rig the atI:'Lines , State Government and other I riterest

groups, are at Attachment D, page 31. . These req\ILEe a
report back to Cabinet i. n three months .
DeveLoomenl: of Addition aL Airport Capa. e. ^. t, \Z

6. Traffic management cannot reaLi. sti. caLLy be expected to

do more than temporari. I. y arrest further deter to rati. on of

current congesti. on probLems at KSA. ^t does riot obvi. ate the
need for signi. fi. cant addi. ti. on aL runway capacity to be
provided as soon as possi. bJ. e. For additional. runway capaci. ty
to be provi. ded wi. thin the next 5-6 year's deci. siCns have to
be taken now on where and to what scaLe. Attachment ^, page
.

33 summari. ses the interaction between capacity, demand

management and t, ,a^etc growth.

We must accept that a second major airport WILL

eventuaLLy be requi. red in Sydney. A strict coinmerci. aL
approach wouLd suggest that the deveLopment of a second
major airport ^actLi. ty shouLd be deferred so Long as
greater returns can be obtained ^1:0m increment aL investment
7.

at KSA.

CoinmerCi. al. consider at 1.0nS, however, are riot the

onLy reLevant factor; considerati. on aLso cLearl. y needs to be

given to the environment aL Impact of any opti. ons to further

CABINET-IN-

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d e v e I o p K S A , p a I:' t I c u I. a I:' L y t h e i. inp a c t o n n e i. g h bouri. rig

communities. The impact of vari. ous options on our major

i. n It I a ti. ve to de reguL ate domesti. c airL ine services a L s o

needs to be taken into account .

OPTTONS

8. Options whi. ch would increase capacity by adding

In c r em enta L Ly to exi. sting at I:'port i. n f Eastructure be f ore
mai or deveLopment at Badgerys Creek are :
Octi. on I.

ExcLusi. on of commuter operators from 1<SA

dun. rig peak periods with ini. nor redeveI. opment
of Bankstown ALL'port t:o absorb them, together
wi. tti initi. aL development of Badgerys Creek to
a C C e p t s p i. I. I. o v e I:' g e n e r a l. av i. a t i. o n f I:' Qin
Bankstown;

Option 2

Constructi. on of a third runway at KSA,

together with i. ni. ti. aL deveLopment o^ a generaL
avi. atton tactLi. ty at Badgerys Creek.

A third option is to commence a mai or at, :port tinned LateLv at

Badgerys Creek with sub-opti. ons of :
00ti. on 3 (a)

DeveLopment o^ an airport to cater for

domestic traf etc of al. ,. types at moderate
traf fi. c vol. umes ;

Option 3 (b)

DeveLopment o^ an airport to cater for aLL

cLasses of domestic tzar tic at Larger
voLumes;

Option 3 (c)

DeveLopment o^ an ai. ,=port to cater ^or aLL

trite I:'nati. on aL sex'vi. ces by 1.996 and some
domestic services .

CABINE

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These options are discussed below. A fuLL comparison of the

costs for the period to 1994/95 (incLudi. rig LikeLy budgetary
impLi. cations and indicative cash fLows) is at Attachment F,
page 37.

Option (,. I : ExcLusi. on of commuters and qeneraL aviation

^I:'om beak Denods at KSA toqethe, r with minor redeveLooTn. ent
of Bankstown AirDort and commencement of deveLooment of
Bad e, : s Creek Air ort

This option wouLd invoLve the toLLowi. rig e, .ements :

excJ. us ton of sinaJ. Lei:. regILLar pubLi. c transport (RPT) and
non-essenti. aL generaL avi. atton atrc, :att from KSA duri. rig
peak periods;
minor works at Bankstown Airport ( eg aprons,

car

parki. rig, access road and a minor terminal. factLi. ty) to

enabLe use by sinaLL RP'T atrc, :att (at an estimated cost
o^ $1.511) ;
a major change in air tra^tic control. procedures at
Bankstown whi. ch wouLd effecti. veLy reduce the capacity
of the at EPOrt by some 200,000 movements pa (mostI. y
tLyi. rig trai. rimg) ;
c o nti. nu ed p rogres SLve L and acqui. siti. on at Badgerys
Creek (esti. mated cost $56M) ;
tinmedi. ate development of Badgerys Creek as a generaL
avi. atton at, =port (at an esti. mated cost of $40M) and a
three year impl. ementati. on pertod ;
,. ocaL road access improvements in the Badgerys Creek
area (at an esti. mated cost of $2011) ; and

CA

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CABINET-IN-CONFIDENCE

a totaL cost to 3.994/95 of $1.3, .M (of which $76M wouLd

be on budget) .
LO.

This option would represent a quick and reLati. veLy Low

cost way o^ creating addition aL capacity at KSA to handLe
hi. gh vaLue major ai. I'LLne user's by provi. di. rig rel. Ie^ from the
current Level. 0^ congesti. on in the peak periods unti. L 19952000 (depending on the size of aircraft excLuded and the

rate of increase i. n demand post dereguLati. on) . Potenti. al.

new entrants wouLd be assisted by the freeing up o^ some

peak peri. od capacity at KSA. ICt wouLd aLso provide a

tangi. bJ. e start to the estabLi. shinent o^ Badgerys Creek and
aLl. ow progressive deveLopment i. n Li. ne with growth in demand
and tinp, ,ovements in access to the Sydney Centi:'aL Bustness
District (CBD) .
I. I. .

The trans^er of sinaLLe, : RPT operati. ons to Bankstown

wouLd be unpopuJ. air with both operators and the patrons of

these services (aLthough Less so than Badgerys Creek) .

Commuter operators would face a choice o^: staying at KSA

but moving off peak; consoLi. dati. rig passengers at regional.

hubs and ^Lyi. rig i. nt0 1<SA in Larger at ECL'a^t duri. rig peaks
(assumi. rig they are aLLowed some Li. ini. ted peak peri. od access) ;
^Lying to Bankstown wi. th sinaLL atrcraft ; or ceasi. rig servi. .ce.
There wouLd be some Loss i. n patronage for these services .
There wouLd be a major impact i. n reLati. on to passengers
seeking to connect with other atI:',. i. ne fLi. ghts.
1.2 . The Bankstown resi. denti. aJ. coinnuni. ty wouLd be concerned

about the noise of Larger aircraft and the impLi. cations of

up 91:'adj. rig the atrport (aLttiough there WILL be 200,000 ^ewer
training movements each year) . Some bustness acti. vi. ti. es
currentLy Located on Bankstown at, :port (eg fl. yi. rig schooLs)
wouJ. d be adverseLy a^fected.

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O tLon

Third__ runwav deveLooment at KSA with

commencement of devel. o merit at Bad er s Creek

,. 3 .

The eLements of this opti. on woul. d be :

deveLopment of a medi. urn spaced paraLLeL runway to the
east of the existi. rig north-south runway at 1<SA
invoLvi. rig :
an estimated cost o^ $ L7011 I^ sand fi. I. L is

avai. LabLe from dredging wi. thi. n Botany Bay or $I. 8511
if fi. I. L i, s obtained from dredging outside but cLose
to Botany Bay (transporting fi. LL by road from a
Land based source is riot considered a practi. caL
option) ,
some upgradi. rig of access roads in the vi. Gini. ty o^
KSA wi. LL be requi. ,:ed together with deveLopment of
major Links to the CBD and to Parramatta Road F4
freeway at an esti. mated cost of $230M; these
projects woul. d be LikeLy to attract at Least some
State ^undi. rig and to be spread over sever aL years
riottonaL provi. SIon o^ some $2511 per annum o^
Federal. ^undi. rig ^rom 1.992-93 ^or ^tve years ini. ght
be made (see Attachment G, page 39) ,
preparation of a major envi. roninentaL impact
statement, and

an esti. mated deveLopment period of 4 1.12 to 5 year's

( incLudi. rig envi. roninentaL assessment) ;
deveLopment of an mittaL generaL avi. ati. on ^actLi. ty at
Badgerys Creek invoJ. ving :
an estimated cost of' $4011 and three year
deveLopment period as described under Opti. on I. ;

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continuati. on o f progre s s tv e L and acqui. siti. on a t

Badgerys Creek (estimated cost $56M) ;
IOCaL access road upgrading in the Badgerys Creek
area ( estimated cost of $201.1) ; and

a totaL indicative cost to 1,994-95 of $375M (0^ whi. ch

$1.5011 wouJ. d be on budget) .

1.4 . Constructi. on o^ a medi. urn spaced para, .LeL runway at 1<SA

wouLd provide an esti. mated 37 per cent increase in present
traf^IC handl. i. rig capacity with no heavy domestic or
Internati. on aL aircraft operations to and ^I:'Qin the north on
the new runway or on the existing east-west runway (weather

permitting) . The increase in capaci. ty VCULd be some 40

percent with no restrictions on aircraft: operati. ons to and
^EQm the north on the new runway but with no heavy domestic

or internati. on aL aircra^t operati. ons (weather permi. tti. rig)

on

the east-west runway. Thi. s increase i. n capaci. ty wouLd

provide reLi. ef ^EQm current I. eveLs of Congesti. on at KSA

unti. L possi. bLy 2005 to 20, .0 (assumi. rig adopti. on of tritensi. ve
ti=at^IC management measures and depending on the LeVeL of
post-dereguJ. atton tzarfi. c demand) . There is a cLea, r market
demand for such a factLi. ty; i. t woul. d be the most convenient

SOLuti. on for a substantial. segment of the traveLLi. rig pubLi. c

(in parti. cuLa, : those Li. nki. rig with other fLi. ghts) and i, s the
SOLuti. on pre^erred by the major airLi. nes, major coinmerci. aL
interests, the touri. st industry and the State Government.
The constructi. on of addi. ti. on aL runway capacity at 1<SA wouLd

in a ximi. z e exi. sti. rig i. n fI:'a s tructure Inv e s tin e n t s In c I. u d i. n g

c uI:' r e n t t e rin In a L a rid f a ci. I. i. t L e s upg ra d I rig s t o ta L L i. rig
approxi. mateJ. y $40011 and wouLd faci. Litate the entry o^ new
airLi. nes into the market.

3.5 .

DeveLopment o^ a thi. ,:d runway at KSA wi. LL be strongLy

opposed by LocaL counci. Ls and residents groups, aLthough

this opj?OSIti. on ini. ght be SLi. ghtLy ini. ti. gated by a deci. SLon

ABINE

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LU

in

<

[16]

CABINE -IN-C . N ID NC
- I. L -

(a)

development o^ an airport to cater for aLL CLasses of

domestic traf^IC at moderate ini. ti. aL vol. umes. This
wouLd invoLve:

c o n s t I:' u c t I o n o ^ I: u n w a y sI t a x Iwa y SI a pI:'o n s t o

accommodate services up to Boeing 767 (2600 metre
.

major runway) and a domestic terminal ^actLi. ty

broadJ. y equivaLent to the Canberra Airport Termi. naL
( at an i. ridi. cati. ve cost

^or airport factLit Ies

onI. y - of $390M) ,
a c ceL erated acqui. s It ton o ^ L and ( e sti. mated cos t
$5611) ,
ini. ti. aL upgrading o^ regionaL Link roads (at an
indicative cost of around $40011 - riot currentLy
provi. ded ^or In FederaL or State road ^undi. rig
programs to 1.995) ; coinpLeti. on of F5 freeway from
AmCLI^fe to Moorebank (at an estimated cost of
.

$340M) is Li. keLy to be undertaken by the State as a

toLL road or accorded high prtori. ty ^or FederaL
fundi. rig withi. n th e Au s tI:'a L i. a n C e nt enni. a L Ro a d
.

DeveLopment Program and Ls therefore riot an

addition aL cost. to the project

costs to existing major domestic airLines
associated with estabLi. shing dupLi. cate operations
at Badgerys Creek (notional. esti. mate $1.00M) ,
provi. si. on of State uti. Liti. es (i. .e. water, power,
sewerage) to ai. rpol=t site (no cost estimate
avai. LabLe) ,
possi. bLe need for reLocati. on o^ exi. sti. rig
infrastructure at or near the si. te (e. g. 330 kv
p owe I:' L i. n e , E'I. e uI:' s Ra di. o T e L e s c o p e , O T C Ra d, . o
Recei. ving Station) - (no cost estimate avail. abLe) ,

BIN T-IN-

ONFl.

[17]

ABINET

IN-

ONFIDEN
- I. 2 -

totaL costs abLe to be Indicative I. y estimated of

$9501f o^ which $450M wouLd be on budget (there
wouLd be a further budget subsidy to the FAC which
wouLd need to be negotiated) , and
an i. ridi. cati. ve deveLopment peri. od of 4-5 years'
(b)

deveLopment o^ a

more

sub stanti. aL domesti. c at I:. port

invoLvi. rig :
construction of a SLi. ghtLy Longer (3000 metres)
I:' u n w a y

s u i. t a b L e f o I:' u n I:' e s t I: i. c t e d d om e s t I c

operati. ons and a Larger domestic termi. na, . broadLy

equi. vaL ent to the exi. sting AUStI:'a I. I a n A LI:'I. i. n e s
termi. naL in Sydney (at an indi. cati. ve cost - ^or
airport ^actLi. ti. es onLy - 0^ $4501. I) ,
acce Lei:'ated Land acqui. SLti. on, up91:'adj. rig o^ roads ,
establ. ishment of atI:'Li. ne f actl. it Ies , pI:'ovi. SI on o f
uti. Liti. es and reLocati. on o^ exi. sti. rig infrastructure
(as ^or Option 3 (a) above) ,
totaL costs abLe to be i. ridi. cati. veLy esti. mated of
$1. ,00011 of whi. ch $45011 wouLd be on budget (there

wouLd be a further budget subsidy to the FAC whi. ch

wouLd need to be negotiated) , and
an i. ridi. cati. ve deveLopment peri. od of 4-5 years'
(c)

deveLopment o^ an at I:'port to cater for all

internati. on aL services . This wonLd invoLve ;

coinpuLsory reLocati. on of aLL internati. on aL

sei:'vz. ces

from KSA to Badgerys Creek i. n 1.996,

.

constructLon o^ runways to accommodate sei:'vLces up

to Boeing 747 (3500 metres) , major internati. onal.

BINE

-I

-CONFl. E

[18]

AB NET-IN-CONFl. ENCE
-L3-

termi. naL factLi. ti. es and L I in Ited dome sti. c telmi. na L

^actLi. ties (at an indicative cost

for airport

factLi. ties onLy - of $L200M) ,

acceLerated Land acquisition ($5611) ,
upgrading o^ LocaL regional. Link roads as weLL as
coinpLeti. on o^ a ^uLL freeway Link to KSA and the
CBD (via the F'5 freeway) wouLd be requi. red ( at an
indicative cost of $540M) wouLd be Leglitred,
reLocati. on of substanti. aL support factl. i. ties ( I . e .
matntenance base, fLi. ght catering and freight
^ a c t I. I t I e s ) f o r I n t e I:' n a t I o n a L o p e I:' a t o I:' s
(indi. cations from Qantas suggest that thi. s couLd
cost i. n excess of $800M) ,
provi. SLon for pi. pel. i. ne (at an estimated cost o^
$5011) or ratL transport of EUe, . to the airport site
proposaL to estabLi. sh a pipeJ. me couLd require
an Environment a, . Tinpact Statement
provi. si. on of State uti. Li. ti. es as above (no cost
esti. mate avai. LabLe) ,
possi. bLe reLocati. on of a range of exi. sting Local.
.

in^rast, ructure as in Opti. ons 3 (a) and 3 (b) above

(no cost esti. mate avai. LabLe) ,
^

consi. derati. on of a ratL 1.1. nk to the si. te,

totaL costs abLe to be IndicativeLy estimated of
$2.65 bi. I. Lion of whi. ch $600M wouJ. d be on budget
(there wouLd be a further very major budget subsi. dy
to the FAC which wouLd need to be negotiated) , and

CABINE

-IN-co

F10

NCE

[19]

BIN T-IN-CONFl. EN

- I. 4 -

an

indicative devel. opment peri. od of 6 year's .

1.8. General. Considerations. An announcement o^ the

immediate commencement of construction of a major airport

factl. i. ty at Badgerys Creek (i. e. any o^ the above options)

would be cLearLy consistent with Long standing Government
.

POLICY to deveLop Badgerys Creek in preference to KSA.

Tt

wouL d avoid the di. f ticuL t envi. roninentaL issues associ. ated

wi. th 1<SA. Tt woul. d remove current urice, :tatnti. es rel. at trig to

.

Land use in the Badgerys Creek area and sti. inuLate Local.
deveLopment. Such an ai. ,=port wouLd provide a cur^ew free
envi. roninent that couLd be parti. cuLarLy attractive to
internati. on aL and firei. ght operators. To the extent that It
.

attracted domestic services i. t wouLd aLso provi. de a more

conventent airport ^or many restdents o^ Sydney' s west.
,. 9. On the other hand there i. s LittLe indi. cation that any

major regu, .air pubLi. c transport operators wouL d VC Luntari. Iy

reLocate sei:'vi. ces to Badgerys Creek. The deveLopment of a

major factLi. ty at Badgerys Creek wou, .d therefore be he avi. ,. y

dependent on the tinposi. ti. on o^ a traf^IC management regime
at KSA which wouLd have the e^rect of uLti. mateLy forci. rig

some user's to reLocate i. ^ they wish to conti. nue operating

.

services Into and out of Sydney.

20. Earl. y commencement of construction of a major airport

devel. opment IfouL d requi. re c Qinpu L s o ry L a rid a c qui. s i. ti. o n
procedures to be i. nvoLved ( see Attachment T , page 44 ) . There
w o u L d b e c o n s I d e r a b L e o f ^ a i. I:. p o r t i. n ^ r a s t r u c t u I:. e

impLi. .cati. ons for any major deveLopment at Badgerys Creek.

At a intrLimum regi. on al. Li. nk roads would need to be upgraded
(at an indi. cati. ve cost 0^ $40011 to 1.995) with further
expenditure LikeLy to be required on freeway I. i. nks i. ^ hi. gher
ai. EPOi=t t. I:'a^^i. c voLumes are to be handJ. ed (see Attachment a',
page 48) . State cooperation wouLd be necessary to ensure
ti. meLy provi. SLon of uti. Liti. es to the site and mai. ritenance of
adequate Land use controLs consistent with curfew free

CABIN T-IN-CONFl. EN

[20]

CABINET-IN-CONFID N

- I. 5 -

operatIons. Some of^ airport fact Liti. es (e. g. E'Leurs Radio

Telescope, OTC Receiving Station) may be adversel. y affected
and require reLocati. on.
21. .

BStabl. ishment of Badgerys Creek as a major airport

faci. Lity woul. d requi. re the cLosure of nearby Hoxton Park

aerodrome and Limit the avai. LabLe airspace for general
aviation fl. ying trai. ni. rig at both Bankstown and Camden
ae, =odromes. Thi. s situation couLd be parti. aLLy al. Leviated by
the opening of Scho^IeLds aerodrome (currently a part of

HMAS Nil:'jinba) for EULl. time ci. vi. I. usage although thi. s wouLd
.

require an environment aL assessment and is aLso LikeLy to

meet strong resident OPPosi. ti. on. Any action which wouLd
prejudi. ce ^titui:e usage of Schofi. .el. ds as a general. avi. atton
factLi. ty shouLd be deferred.
22. Domestic Factl. it

O ti. ons 3 a and 3 b

A domestic

factLi. ty at Badgerys Creek wouLd provide capaci. ty for those

services uriabLe to gai. n access to KSA. The ini. ti. aJ. LeveL of
major airLi. nes traffi. c wi. LL depend on the nature of the
traf tic management measures adopted at KSA and the rate of
growth in traffi. c demand post dereguLati. on. Unti. L such ti. me
as

s I grit f i. c a nt re L o c at Io n o f mai or domesti. c operators

occurs, i. t wouLd be unLi. keLy that the at, :port wonl. d generate
suf fi. Glent revenue to cover ei. their operating or capitaL
costs, necessi. tati. rig a substantial. ongoing subsi. dy.
23.

Transit ti. mes to the CBD and KSA (notwithstanding

prospective road improvements )

are

LikeLy to be a major

i. nconveni. ence and possi. bLe deterrent to many pas sengers .

Some commuter services wouLd probabLy riot remain viabLe at
Badgery:s Creek and major domestic operators wouLd be
reluctant incur the expense o^ estabLi. shi. rig a dup, .i. cation of
their operati. ons at Badgerys Creek, parti. cuLarLy i. n the
Li. ght of the substanti. aL investment whi. ch they are about to
.

incur on addi. ti. on aL termi. naL factLi. ti. es at 1<SA. Tn these

circumstances it i. s possi. bLe that operators , even when ^aced

Bl

ET-IN-CONFIDE

[21]

ABINET-IN-CONFID

NC

- 3.6 -

with Li. ini. ted availabi. I. i. ty of SLots at KSA, wouLd seek to

restructure thei. I:' operations (e. g. by increasing capacity of

aircra^t servicing 1<SA or by having some services bypass
.

Sydney aLtogethe, =) rather than move to Badgerys Creek.

24. Trite mati. onaL Fact, .itv (ODti. on 3 (c) I The relocation o^

al. L internati. on aL services to Badgerys Creek woul. d provide a

guaranteed core group of user's when the new factLi. ty comes

i. nto operati. on, with the further prospect that some domestic
.

s e rv Ic e s ini. ght b e i. riduc ed t o re L ocate . Trite, =nattona L

.

services are arguabLy the least time sensi. ti. ve traf^i. c and

internati. on aL operators in parti. CUI. ar ini. ght seek to take

advantage of the cur^ew free ai. ,=port.
25.

The tinnedi. ate devel. opment of Badgerys Creek to take aLl.

internati. on aJ. servt ces wouLd cL ear, .y i. nvoLve an enormous

Level. of investment (and add, .ti. on a, . pubLi. c sector
borrowings) over the next ^ew year's.

There WILL aLso be

very substanti. aL addi. ti. on al. costs incurred by internati. on aL

operators in the re-establ. i. shinent o f support f act L i. t i. e s

( in a i. n t e n a n c e , c a t eI:. i. rig , b a gg a g e h a ridl. I rig ) wh i. ch a I:. e

currentJ. y i. n pi. ace at or near KSA, as weLL as ^or the staf ^
empLoyed at or near KSA. Qantas in parti. cuLa, : wouLd be
severeLy di. sadvantaged SLnce KSA i. s Its mai or operati. on aL
base . The costs o^ reLocati. on wonLd have a sei:'i. ous impact on

its profitabi. Lity and couLd gLve ri. se to demands for

increased LeveLs of equi. ty from the CommonweaLth. Costs
wouLd aLso be incurred for freight forwarders and other's
with a major internat. ionaL business component.
26. Based on overseas expertence, there i. s a I:'i. sk that the
rel. ocati. on o^ trite mati. on aL services at Badgerys Creek wouLd
.

adverseLy affect demand ^or internati. on aJ. services i. n and

out of Sydney (and possi. bLy AUStral. i. a) wi. th impLi. cati. ons ^or

the touri. sin i. ridustry. Off ai. ,:port i. nfrastrticture needs wouLd
be moire pressing and potenti. aLLy much more expensi. ve.

B NET-IN

CON

ID

[22]

INET-IN-CON ID EN
- ,. 7 -

27. Removal. of aLl. internati. on aL sei:'vi. ces from KSA wouLd

provide onLy Limited reLi. ef to peak period congestion internati. on aLs account for about ,. 5 per cent of totaL
movements in the peaks.
EruAllC^L T^LTCATTONS

28. The i. ridi. cati. ve costs whi. ch are abl. e to be estimated for

each o^ the opti. ons to ,. 994195 are set out bel. ow.

Costs are

in a number of cases based on indicative estimates onI. y.

To tai. Cost

On Budget Cost

to L994/95

to 1.994/95 (*)

$in

$in

Opti. on I.

,. 3 ,.

76

Option 2

375

1.5 O

Option 3 (a)

950

450

Option 3 (b)

3.000

450

Option 3 (c)

2650

600

ExcLudes signi. ^i. cant budgetary i. in PI. i. cati. ons o f any

arrangements wtii. cti might be negotiated wi. th Federal.
At, =ports Corporati. on f o r C OI:'p o ra tio n t o a s s ume
re sp o n s i. bI L i. ty ^or deveJ. opment and operati. on o f
proposed major ^aci. Liti. es at Badgerys Creek.
CONCTXi'STOll

29.

The deci. SLon on the future deveLopment: of ai. rport

capacity in the Sydney regi. on is a major eLement o^ our

stiructu, :aL adjustment POLLcy. UnLess we make a deci. SLon now
we WILL riot be abLe to accommodate projected aviation Levels
in our mai or ci. ty within a few year's.

CA

INET-IN-C . NFID

NCE

ON^01^NOO-Nl-J. Nl

vO

' AeupKs u:re'^. sep^ .:re'^. no uT seTqqoT q. zod^:T e-o. 7d

pue uoTbe. :I a. QOSP, I allq. UT SdnOZb a. ZOd. :LTE-T'^. Up Aq enjooTe^ aq
pTnott q. nq AqqoT TETo. :rearunoo pue . :I'ST znoq. ' uo T q. ET Ae pas Tug6zo
T Te^ e Aq pesoddo AT6uo;I:q. s aq pTno^ q. T

' snOnPO atIq-

pUP aTTqnd all'^. 3:0 uoTq. e'^. Dadxe allq. pue ADTTod bUTq. STXe Ljq. T, ^
pzoooe UT OSTP ST 4. T

' pe:ETnbe. :t qi^.^0;Lb aT^:31PZq. SE UOTSUPdXe

Teq. UeuiezouT ;tellq. ;trig: aTqeue pTno^ pue (0) S PUP (q) e sUOT'^. do
up11q. sseT a. SOD PTno^ 'uoTq. do zeqq. o AUP up11q. AT>toTrLb exoui
pepTAozd aq oq. Aq. Toedeo Ae^un;I q. PIiq. aTqeue pTno^ (P) E UOTq. do
' ( z ) zo ( T ) suoTq. do up 114 Aq. Toedeo Ae^unz oq. uoT'^. Tppe ;req. ee. :rb
e apTAO;Id pUP ':^.;rod;LTV AeUPKS PUOOeS aqq. 3:0 '^. UaurdoTeAep allq.
3:0 Aq. TTTqeq. TAeuT allq. '^. deooe (0) pue (q) ' (e) g suoTq. do ' ZE
' ADTTOd 6UTPUPq. S bUOT 3:0 TES^aAe;Z allq. a:tTnbe. :I
OSTE PTnO^ q. T

' aTqPq. deooeun uoTq. do up qons ^:apue;I PTnoo

qOTLj^ '^. UeUieq. eq. S '^. aedlllT Tea. U8UIUOZTAUg: Up 3:0 q. ae gqns atIq. aq
Oq. peeU PTn0^ 110Tq, \ S'^. Dag:g:a Tea. UeunlOZTAUe aAPLl pTnO^ q. T PUPq

;ranq. o allq. uo 'A. :rnq. ueo axeu TTq. Un '^. zod. :rTV AeupKs puooes eqq.
SE >tae^O SK. :tabpeg 3:0 q. ueuidoTeAep .:Log: peeU all'^. auodq. sod pTno^
pUP '6UTop OS 3:0 Sueeiii aATq. Dag:g:a q. SOD a. soul allq. sT 'Aq. Toedeo
A e ^ u n:r T e u o T a. T pp P T e T q. U eq. s qn s s ap T AD ^ d a u o T a. do ' T e
' SeUTTZTP Ze^. nun00 9:0 suoTq. e:redo allq.
s^. dn:LSTP ATq. ea:r6 pue Aq. Toedeo Ae, Iun:I puedxe oq. aTq. q. TT saop
q. T SE asUodsez A;roq. oeg:sTq. es e apTAO:Id q. ou saop T uoTq. do

'OS

-8T-

ON

[23]

01 NOO-Nl-I. ^NIBVO

[24]

INE

-IN-

F10

- I. 9 -

REco, "^DATTONS

33.

T recommend that Cabinet agree that :

(a)

T announce the estabLi. shinent of a review o^ traffic

management arrangements at KSA to be undertaken in

consuLtati. on with air, .tries, State Government and other

interested parties ;
(b)

the terms of reference for the revi. ew be as set out at

Attachment D;

(c)

there be an earLy announcement that the Government

proposes to proceed wi. th the immediate deveLopment of
the Badgerys Creek airport to cater for aLL classes of
domestic traffic (Opti. on 3 (a) ) ;

(d)

the Mi. ni. sters ^or Transport and Coinmuni. cati. ons and
Finance commence negoti. attons with the Federal. Airports
Corporati. on i. n reLati. on to the arrangements under whi. ch
r e s p o n s Ib I L Ity f o r deve L opi. rig a rid op e r a tI. rig th e
Badgerys Creek airport i. s to be transferred to the
Corporati. on ;

(e)

Land acqui. SLti. on at the Badgerys Creek si. te be

acceLerated, If necessary by use of coinpuLsory
a c gut s i. ti. o n p1:0 c edu re s , t o e n a b L e t h e e a I:' I. i. e s t
PI=acti. cabL e commencement o f construction and rel. ated
acti. vi. ties ;

( t)

addi. ti. on al. Federal. fundi. rig of $40011 be provided over

the next five year's (over and above ino1, i. es whi. ch wi. Ll.
be provi. ded through the AUStraLi. an Centennial. Roads
DeveLopment Program) to acceLerate the deveLopment of
access roads from the Badgerys Creek at, =port to the
Sydney CBD and KSA;

CABl

ET-I

F10EN

[25]

, =I

ONFl.

CE

-20-

(g)

no action be taken to either dispose of the Scho^i. el. ds

ael:odrome or otherwi. se deveLop the site in a way which
wouLd prejudi. ce its future use as a major general.
aviation ^actLi. ty.

3 MARCH 3.989

ABIN

RALPH WTLLTS

IN-CONFl. ENC

[26]

AB NE

-I

Fir ENC

- 21. ATTAC}111ENT A

DRAFT PRESS RET. ^ARE

''DeveLopment of a new airport for the Sydney Region WILL

begin immediateLy at Badgerys Creek" , the Minister ^or
Transport and Communications, Mr RaLph WILLi. s MP, announced
today.

"The new at EPO, =t WILL be capabLe of handling aLJ. cJ. asses of

domestic aviation traf fi. c and wi. LL ensure that Sydney ' s
at EPOrt needs are met wei. I. i. nto the next century", he said.
The Mini. ster said that the project wi. LL i. ncLude the
constructi. on of two new runways, an eight gate domestic
.

termi. naL and anci. LLary factLi. ties. Tt i, s expected to be

coinpLeted by 1.994 at a cost of $390 ini. LLi. on.
"This WILL finaLLy put to rest specuLati. on about the
constructi. on of a third runway at Sydney' s Xi. rigs^ord Sini. th
Airport", Mir WILLi. s sai. d.

"The Government is convinced that

the constructi. on of a thi. I:. d runway at KSA wou, .d at best be a

short-term, band-atd SOLuti. on that wouLd riot cater ^or
demand beyond the immediate future. Tt wouLd riot avoi. d the
eventuaL need for a second airport and wouLd adversely
affect the Li. ves of a Large number of Sydney residents for
no Lasti. rig bene^it.
.

"The Government is determined to provide a Long term

SOLuti. on that wi. LJ. aLLow the prtvate sector to pLan ^or the
future wi. th con^i. dence", the Mintster satd.
"Neverthe Less It is essenti. aL that KSA conti. nues to operate
as

e^tici. entLy as possi. bLe to ensure that growi. rig t, =at^i. c

demands can be met unti. L the new airport i, s coinpLeted.

To

thi. s end T have asked for an tinned Late review of KSA tzar^IC

management arrangements to ensure the most e^fi. Glent use of

airport factl. i. ti. es. "

ABIN

N-CONFID

NC

[27]

CABINET-IN-CONFID

CE

-22ATTAC}D, IENT A

"T have al. so asked for consultati. ons to be undertaken with

a, .I i. riterested parties, Incl. udi. rig the airLi. nes and the State
Government and for a report to be with me In three months" ,
he sai. d .

Mr WILLi. s said that considerable emphasis wi. LL be gi. ven over

the next five years to upgradi. rig major Link roads in the
vi. ci. nity of Badgerys Creek and that the deveLopment of
adequate Long term road Li. nks to metropoLi. tan Sydney and to
KSA wi. LL be taken up with the IISW Government as soon as

possi. bLe.
"Tn conjuncti. on with the State Government we WILL aLso be
revi. ewi. rig prtoI:'it Ies f or the AUStraLi. an Centenni. aL Roads
DeveJ. opment Program in view of our commitment to the ^uture
of Badgerys Creek", Mr WILLi. s said.
The Mt. ni. ste, = conc Luded that trite mati. on aL sei:'vi. ces woul. d

continue to operate ^iron 1<SA for the foreseeabl. e future.

This re^Lected the Government ' s concern that Sydney and
Alls t r a L i. a reinai. n an attractive des ti. . nati. on ^or overs ea s
VLSItors and to ensure that the extensive ^actLi. ties

exi. sti. rig at 1<SA continue to be used producti. vel. y.

CABINET-IN-C . N ID ENC

[28]

AIRCRAFT MOVEMENTS 1980-1988

YEAR

o
.,

INTERNATIONAl. S

TRUNK

REGIONAL

COMMUTER

GENERAL AVIATION

1980

18,543

57,349

29,399

35,606

41,352

182,249

1981

17,669

54,341

27,148

36,824

42,333

178,315

1982

18,637

52,280

22,748

45,165

36,599

175,429

1983

18,663

48,518

23,089

39,200

38,649

168,119

1984

19,613

46,075

27,818

35,555

43,814

172,875

in

1985

20,069

48,893

32,246

34,191

48,559

183,958

1986

22,083

53,450

32,716

29,478

53,240

190,967

1987

Z4,856

57,184

33,198

32,774

48,091

196,103

1988

31,871

62,286

31,099

39,337

42,100

206,693

co

^Z

C r<

^:^I-I

in
-

>I^
HD
::dco
O baa

'Z

^^

Nj
by

r-a

co

FORECAST AIRCRAFT MOVE, ^S 1990-2010

,I
.
YEAR

INTERNATTONALS

DOMESTICS

COMMUTERS

GENERAL AVIATION

TOTAL

34,800

97,700
4.4*

1995

43,200

40,900

116,800

53,900

^^

co 10

43,700
2. 0*

45,100

C>

217,100
1.9*

48,100

3,125

253,200

3.7*

140,100

in

in

3.6*

4.5%
2000

o
PI,
1.3

Z
1990

3:1^
OH
< 1.3
t, I >
^ H
1.3 ^:,

C>
>

>^

TOTAL

3.2%

49,800

53,000

>,
,-a
^
>I
C>
:^

296,800

=
4.8%
2005

68,000

3.6*

167,200

2.095

55,000

3.3*

58,300

L, I

z:
1.3

348,500
03

4.7*

2010

85,700

3.5%

198,300

2. 0*

60,800

1.9%

64,200

3.3%

409,000

[29]

CA

INET

N-CON IDEN
-24ATTAC1{1.1ENT C

us A TE^FFTC ^NAG^T
OVERVTE, , OF TSSUES

CURRENT SLTtlATTON

There is currentLy no systematic reguLati. on o^ the

schedul. trig of ai. ,=craft departures and arrival. s duri. rig the
non-curfew periods at KSA (with the exception of
internati. onaL services where scheduLi. rig Is arranged wi. th a
view to ensuri. rig that adequate processing infrastructure Is
avai. ,. abJ. e within the international. terminal. ) .
The movement of aircraft i. s reguLated by Air Traffic ControL
(ATC) on the basis of established operation aL priori. ties.
The ATC adopt fLow control procedures to optimise the
traffic ^Low. Tn pertods o^ congesti. on, a system of ar, ri. vaL
SLots and start up cLearances are used which, ^or exampLe,
would invoLve hoLdi. rig a Sydney bound aircra^t on the ground
at its departure point unti. I. a designated time SLot for
Landing at 1<SA has been establ. i. shed. On days when the
tra^fIC handLi. rig capaci. ty of the airport i. s he avi. Ly
restri. cted by adverse weather, a voLuntary arrangement among
atI'LLnes ^or sharing the Li. ini. ted ti. me SLots for an:tval. s and
departures appLi. es .
Traf etc congesti. on and deLays to atrcraft/passengers at KSA
have reached a Level. at whi. ch they are wideLy consi. dered to
be uriacceptabLe. The probLem i, s LargeLy attri. butabLe to a
Lack of runway capaci. ty to cope wi. tti current peak traffic
demands * Tt i, s exacerbated by a Lack of any mechantsm to
rationaLi. ze the Level. and scheduLi. rig o^ those peak traffic
demands.

Tra^etc demands at KSA are forecast to increase even before

the Impact of deregulation is taken into account. As

ABl

T-I

-Co

.E

[30]

ABINE

N-Co

F10

NC

- 25
ATTAC}{I, IEN'I' C

traffic increases, deLays wi. IL aLso

a. ncrease

(and at a much

faster rate) .

No major expansion in runway capacity at airports in the

Sydney Regi. on is possi. bLe inside at Least a 4-5 year period.
Measures to manage the traf ^IC demands at KSA during the
i. riterveni. rig peri. od are therefore necessary.
087ECTTVES FOR 'PRAFFTC MANAGEMENT MEASURES

Tt a. s proposed that traf^IC management measures at KSA

should be directed towards achieving

ef^i. ci. ency in the uti. LIzatton o^ ai. rport factLit Ies
incLudi. rig runways and termi. naLs

e f fi. ci. ency i. n at I:'Li. ne operati. ons through reduction in

unpredi. ctab L e a rid un s cheduI. ed d eI a y s t o a Ir cI:'a f t
(Incl. udi. rig deLays due to cLuster scheduLi. rig)
maintenance of coinpeti. ^i. on i. ncLudi. rig fact Li. tati. on o f
new entrants to the industry
absoLute consi. stency with estabLi. shed safety standards
and procedures .

The pursui. t of these objecti. ves wi. LL be const, =atned to some

extent by the need to provide ^or equity reasons an

appropri. ate LeveL o^ access to 1<SA by specified atI:'craft

types and user groups . The speed at which tra^tic management
controls are t. i. ghtened wouLd aLso need to take into account
the pace at which the aviation industry can be expected to
reconfigure Its operations.
A major consider atton WILL be the treatment of sinaLL

Intrastate commuter ai. I'LLnes which currentLy account for

around 25 per cent of peak hour' movements in atI:'craft but

Bl

ET-IN-C .

. ENC

[31]

CA

IN T

N-CONFIDE

CE

-26ATTAC}11^IENT C

on I. y account for some 3 per cent of the peak period

p a s s e n g e r h a n dl. In g c a p a c Ity .

Tt. Is arguabLe that, If

effi. ci. ent uti. Li. zati. on i, s to be made of scarce peak period
capacity at KSA, access by these operators shouLd be as far
as possi. b, .e in Larger aircraft wi. tti some consoLi. dation of
Loads at regionaL hub airports outside Sydney. There wi. LL be
some Iead time invoJ. ved in making these changes.
Access by generaL avi. atton aircra^t which are invoLved in
emergency services WILL of course need to be accommodated.

OPTTONS

There are two broad groups of opti. ons for providing some
measure of short term reLi. e^ to the current traf^IC

congesti. on probLems at KSA. These are

capaci. ty enhancement

demand management.

Cabaci. tv Enhancement

Over and above runway capacity, factors which constrai. n the

rate at which traf^i. c can be handLed incLude air traffic

controL faci. Liti. es, standards and procedures as weLL as

noise abatement procedures.
Tt is consi. dered unJ. IkeLy that there WILL be technoLogi. caL
advances or changes to air traffi. c controL procedures that

wi. LL signi. EtcantLy increase t'Ie at, =craft hand Ling capacity
of the present 1<SA runway system within the ti. metrame

required to pLan and construct new airport factLi. ti. es.

The purchase of a new radar system Is expected to add onI. y

marginaLLy to the t, =at^IC handLi. rig capaCi. ty o^ the at I:'port ;

CABINET-I

-C . N I.

NCE

[32]

BINET

IN-

ON

ID ENC

-27-

ATTAC}111ENT C

the major benefit of the new radar is LikeLy to be the

facilitation of the task of air traftic controLLers in

handLi. rig the traffic volume.

The major current possi. bi. Lity for achi. evi. rig an increase in
capacity would be the reLaxati. on of current day time noise
abatement procedures.

To minimize the noise impact

On

surrounding restdenti. aL areas, a preferred runway

uti. 1.1zat. ion pattern (invoJ. ving take-0^^s to the south, and
Landi. rigs from the north and west) is adopted whenever
possi. bLe. Tt has been estimated that the handLi. rig capacity
o^ the exist trig runway system might be increased by around
1.5 per cent i. f the preferred runway arrangements were riot to

appLy. The issue wouLd be a highLy sensitive one with LocaL

council. s and restdents in the areas a^fected.

Demand Mariaqement

The objecti. ve of any demand management regime wouLd be to

reduce the Leve, . of traffic using KSA in peak pertods to a

Level which more cLoseLy approximates the eftici. ent handLi. rig
capaci. ty of the airport. Further management measures in, .gbt

be Incorporated to aLJ. ocate airri. vaL and departure times

between those user's retaining access to KSA i. n peak pertods .
There are a range of possi. bLe mechanisms whi. ch ini. ght be

considered f or the purpose of a more rati. on aL management of

the current pattern of arrival. s and departures of aircraft
at KSA. Some of these are bri. efLy canvassed be Low. Tt wouLd
of course be possi. bLe to combine some eLements of one
approach with eLements of another.

Tndust, ,v consul. tati. on. Thi. s approach wouLd normaL Ly be

undertaken through the estabLi. shinent of airport scheduJ. trig

committees. Zt has been tried (with apparently Limited

success) i. n the Uni. ted States. Current SLot aLLocati. ons ^or

CABINET-I

-CON

ID

NC

[33]

IN T

-co

F1. ENC

-28ATTAClll, IENT C

adverse weather condi. ti. ons at KSA have aLso been arrived at

through a scheduLi. rig comintttee approach .

The potenti. aL attraction of scheduling coinmi. ttees Is that
they put the on us back on t;he industry to resolve its own
prob L ems . Howev e r , t h e hi. gh L y c omp e t i. t Iv e o p eI:' a t I rig
envI roninent ( parti. CUI. arl. y post-dereguJ. atton) i, s LikeLy to

in ILLtate agai. nst any I. a sting co-operati. on among exi. sting

operators and severeLy Limit OPPo, :tuni. ties for new entrants.
Admini. stirati. ve deter ini. nat i. o n . T h i. s a p pI:' o a c h w o u I. d

involve the rati. oning of demand by way of a determinati. on by

Government (or the at I:'port authori. t. y) . The deterini. nation

might: seek to Li. ini. t usage to aircra^t meeting speciei. ed

criteria ( e. g. sSLze
'

or

performance standards ).

Alter nati. veLy it might seek to aLLocate a speci. Etc quota of

avai. LabLe SLots according a formuLa (whi. ch ini. ght incLude

Weightings for ^actor's such as existing SLot al. Locati. ons,
traffic voLumes and network SLzes) .
The admini. stirati. ve aLLocati. on method has the potential. to
enab, .e Government objectives (e. g. access by new entrants
and some sinaLl. er atrcraft) to be met. On the other hand,
the basts ^or the deterini. nation must i. nevi. tabLy i. nvoLve
vaLue judgments and as a consequence is LikeLy to be a
source o^ conti. nutng debate wi. th trite rested parties.
Prtci. n Measures.

Thi. s approach encompasses SLot

auction/tradi. rig arrangements as weLJ. as the estabLi. shinent of

charging regimes whi. ch appLy a premium for use of' runway

space during periods of peak demand .
ALL things being equal. , prtci. rig measures o^fez the advantage
of rationing avai. LabLe SLots in accordance with economi. c
ef etci. ency prtnci. pLes .

, = INET-IN-C . NFIDENC

[34]
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<

[35]

ABl

N-C .

F10E

-30-

ATTAC}D^IENT C

d e t e rin I n I n g a I:' r a n g ein e n t s

to

apply

to

ad

hoc

(unschedul. ed) user's

testing the c ons tItutIo na LI I. ega L va L IdIty o f any

p r o p o s e d a p p I:' o a c h ( i. n c L udi. rig , f or e x a inp L e , t h e
impL ICati. ons f or exi. sting b L L a t e r a L Int e rn a t Io n a I.
avi. ati. on agreements ) .

These issues should desi. ,:abLy be canvassed in a consuLtati. ve

process which wouLd i. nvoLve in particul. ar the airLi. ne
industry as weLL as the State Government and other
interested groups.

CABINE

-IN

CONFIDENC

[36]

CAB NET-IN-C . NFIDEN

- 31. ATTACHMENT D

RrvTE, , OF Tl^FFTC D/ANAGl^^T ER^G^ms AT usA

DRAFT T^ OF REF^CE

The Review is to exami. ne and report on mechanisms for

aChi. evi. rig the ino st e f f ICi. ent uti. Li. sati. on of ^actl. i. ties at

Sydney ( Ki. rigs f ord Sini. tti) Ai. I:'port pending deve L opme n t o f
mai or new runway capacity In the Sydney Regi. on.
The Revi. ew wi. Ll. examine the ^eastbi. Li. ty of ImpLementI rig
speci. f i. c measures to improve the ti=at etc handLi. rig capaci. ty
of 1<SA as wei. I. as measures to deal. wi. th coinpeti. rig demands
for access to runways, taking account of other rel. evant

studies aL, =eady undertaken or in progress .

Tn examini. rig the feaSIbi. Lity o^ particul. air me a sures the
Review WILL take into account :

the Government ' s recent announcement regarding at, =port

d eve L opment at Badgery s Creek, p arti. cu L a r L y t h e

estimated pLanni. rig and construction period of 4-5

years'

the range of aircraft and passenger traffi. c growth

scenarios ^or KSA ;

the need to provide access to services to the maxi. mum

PI:'acti. cabl. e number of passengers ;

the need to retain OPPo, rtuni. ty for regi. on aL servi. ces to
access 1<SA at conventent times ;

the scope ^or consoLi. dating some services at regi. onaL

centres so that access to KSA can occur in at I:'craft

with Larger passenger Loads;

ABIN

-IN-

. NFl

[37]

CABl

T-IN-CON

DENC

-32-

ATTACH^IENT D

the need to preserve opportunities for competitive

entry to the airLi. ne industry following dereguLati. on in
,. 990 ;

the capabi. Lity o^ other ai. rports in the Sydney region

to accommodate any traffic di. verted from KSA; and
the rate at which the

i. rid u s t r y and sei:' v L c e

in^rast. ,:ucture provi. ders can reasonabl. y be expected to

adj ust to changes .

The report i, s to be subit!i. tted by ,. 5 June 1989 .

ABINET-IN-CONFIDEN

[38]

CA

INET-IN-C . NF .

NC

-33ATTAC}111ENT E

us A DinlanD FORECASTS AND mr^FTC ^PACTTY

.TnnL_ICati. Ons of unconstrained demand

At current Level. s o^ congestion, an average of 45

movements per hour' are handLed at KSA duri. rig the
morning peak peri. od (refer Figure I. attached) .
re demand i. s uriconstrai. ned, by 1.995 forecast average
hourLy movements WILL i. ncrease to 54, representing a 20
per cent increase compared to the current situati. on.
Tn these ci. I:. cumstances, the comintssi. oni. rig of a medi. urn
spaced paraLLeJ. runway at KSA in ,. 995 wouLd onLy

provide temporary reLi. ef. By the year 2000, the

addition aL capaci. ty wi. LL have been taken up and
congesti. on WILL have returned to 1.988 LeveLs.
AccordingLy significant capacity wouLd have to be

avai. LabLe at Badgerys Creek by the year 2000, impLyi. rig

a start to constructi. on in ,. 995.

Demand Maria ement Re line

Figure 2 ILLust, :ates projected demand assumi. rig a demand

management regime i, s adopted at 1<SA which
removes aLL but emergency general. avi. ati. on fl. i. ghts
^zori the KSA peak
p I:' O g I:' e s s Iv e L y I:' e d u c e s p e a k p eI:'i. o d c Qinmu t eIr
movements to 50 per cent of the current LeveL by
1.995

accordi. rigJ. y a L L ows the EUl. L ^orecast

domestic and tritemati. onaL fLi. ghts.

ABINE

-I

-CONFIDENC

Lncrease Ln

[39]

CABINET-IN C

NCE

-34ATTACHMENT E

With the addition of a medi. urn spaced paraLLeL runway in

1.995 additionaL capacity is provided unti. L around 2005
at whi. ch PCi. nt commuter movements wouLd have to be
s evere Ly rationed I^ I riternati. on aL and domes ti. c

fl. i. ghts were to be aL, .owed to mai. ntai. n thei. r growth

rates.

The bassenqe, , productivity o^ the airport wouLd

increase very significantLy as a resuLt o^ the aircraft

.

in I. X .

By the year 2000 the annuaL passenger throughput wouLd

have increased by an enormous margin as compared with

1,988.

On thi. s scenari. 0 :. t VCULd be necessary to commence

major at EPOrt construction at Badgerys Creek in the
year 2000.

ICt wonLd aLso be Li. keLy that changes in technoLogy and

ai. I:' t, :a^etc control. procedures wouLd have Led to higher
movement hand, .trig rates.
Runwav Producti. vi. tv

Thi. s i. ncreased runway productivity wouLd provide a

but^e, , agai. nst faster than expected growth i. n movements
or aLternati. veLy a further postponement o^ a
commencement of a major at rpcrt ^act, .i. ty at Badgerys
Creek.

ABIN T- N-

ONFID

NC

[40]

o
>

o
>

co

U.

100

Z
90

80

T.

or 60
n

GA

C>

.~.

I:=- ~ ~

-,

co 50

COMMUTER

1988 hondling rote

I-Z

-"--^.

.,,.

1/1 40

Z
o

u;Z

1988 hondling rote

with third runwoy

O 70

Z
.

or
.-)

o
^

Z
in
^

.,,,,",,

Z
,I

.^
.^

.^^

in

.. ^

^..
^

.,,,

111

::, 50
o

DOMESTIC

~,
^..

20

---- -^.-,-~

>
Fa
1.3

>

10

INTERNATIONA
^

o1988

1990

>a

1995

YEARS

2000

2005

FIGURE I FORE CAST AVERAGE HOURLY TRAFFIC PROF! LE AT 1<SA.

UNCOilSl'R/*1111. D DEMAND \NE'E'KDAYS. 0700- I 000.

2010

L, ,

[41]

>

U.

U,
^

80

^
^

Z
in

1988 hondling rote

with third runwoy

70
DC
D

I I
byZ
'1

O 60
:I. .

C>
.

DC 50
Ul
O. .

..

In 40

in

'O

..

1988 hondling rote

^
I.

UJ 30
^S

GA

----

.^

..

,..."..

,I

..~,-,

COMMUTER __._...------"

~---

in

:" 20
in

Z
o

DOMESTIC

::^
>
Fa

10

1-3

INTERNATIONAL
O --- - - ---- ----I^----^
1988
1990
1995

>I
C>

YEARS 2000

2005

2010

FIGURE 2 AVERAGE HOURLY TRAFFIC PROFILE WITH TRAFF IC In ANAGEME:rlT

AT KSA, WEEKDAYS, 0700 I 000.

Z
1.3
DJ

in

[42]

CA

IN

N-CON

. ENCE

-37-

ATTAC}11.1ENT F

SYDNEY ATRPORTS DEVELOP, ^ OPTTOllS

TDEITTT^LED COSTS To 1.994/95 ($111
Note :

On Budget costs shown with asterisk

89 90 90 91. 91.92 92 93 93 94

94 95

TOTAL

OPTTOll L
.

Badgerys Creek

Land acquisition
- GA constructi. on

roads ( access )
.

1.5 *
4
2*

L5 *

L5 *

,. 8

I. 8

9*

Lj. *

56*
40

9*

2 0*

I. 5

Bankstown
- commuter works

,. O

TOTAL COST

23

52

45

1.1.

Total. ' on Budoet '

Combonent

1.7 *

24*

24*

I. L *

I. O

I. O

60

60
25*

Z. 31.

76*

OPT, :ON 2
.

1<SA

- medi. urn spaced

paraLl. eL runway
roads ( access )
.

45
25*

3.85
25*

75*

Badgerys Creek

Land acqui. siti. on

- roads (access)

I. 5 *
4
2*

,. 5 *
,. 8
9*

TOTAL COST

3 I.

52

Total ' on Budoet '

Combonent

1.7 *

24*

- GA construction

BINE

1.5 *
,. 8
9*
I. 02
24*

1.1. *

56*
40
2 0*

96

70

25*

376

36*

25*

25*

I. 5I. *

-IN-CONFl. ENC

[43]

CA

INET-

-CONFl. ENC

-38-

ATTAC}.{1.1ENT' F

89 90

90 91

91.92

9293

93 94

94 95

TOTAL

OP'Troll 3 tai
.

Badgerys Creek

Land acquisition
- airport

56 *
LO

60

L4 O

1.4 O

I. 0 *

9 0*

LOO*

I. O O *

I. O O *

56*

40

39 O

construction

roads ( access )
- domesti. c at. I:'I. i. nes

400*

1.0
250

50

40

LOO

290

1.8 O

946

I. O O *

456*

50

56*
450
400*

TOTAL COST - (Note L)

76

Total 'on Budaet'

Combonent

66 *

9 0*

I. O O *

I. O O *

56*
1.0

70

I. 60

1.60

3.0 *

90*

I. O O *

I. O O *
50

I. O O*
40

1.0 O

270

31.0

1.9 O

1.006

I. 00 *

I. O O *

,. O O

,. 5 O

OPTTON 3 fbl
.

Badgerys Creek

Land acquisition
airport
constructi:on

roads ( access )
domestic airl. tries

1.0

TOTAL COST - (Note L)

76

Total. ' on Budoet '

Combonent

66*

1.6 O
9 0*

456*

OPTTON 3 f c)

Badgerys Creek

- Land acqui. siti. on

airport

56*

construction

1.0
,. 0 *

roads ( access )
Qantas

56 *

,. O O *

1.0 O

250
1.10 *

350
Ll. 0 *

,. O O

I. O O

200

^ueL pi. peLi. ne

TOTAL COST - (Note L)
Total ' on Budget '
Combonent

76
66*

350
,. 3. 0 *
200
25

1.4 O

j. O O *
200

800

25

50
2646

300

460

660

685

465

,. O O *

,. O O *

I. I.

I. I. 0 *

I. O O *

NOTES

( I. )

There wouLd be a substantial ongoing subsidy to the FAC

whi. ch has riot been IncLuded and whi. ch wouLd be ' on

budget'.

ABINE

-IN-

. NFl. ENC

1.200
54 0*

596*

[44]

ABIN T-IN-C . NF DENC

39
ATTACHMENT G

1<TNGSFORD SMITH ATRPORT' ROAD ACCESS OPTTONS

The ^o L Lowi. rig es ti. mates o ^ road acces s reqLitrement. s

to se, =vi. ce the growth i. n passenger movements whi. ch
wonLd be progressi. ve ^,=Qin any upg, :adj. rig o^ ECLngs^ord
Sini. tti ALEpo, :t (KSA) from 1995 are i. ridi. cati. ve onLy.

Costs are i. n L988/89 prtces. A det. ai. Led evaLuati. on

of transpoz't needs and cost wonLd need to be
undertaken i. n consuLt. ati. on wi. th the NSTi Government.

Roads reLevant to the upgradi. rig of KSA are shown on

E'i. guz=e 3 . These roads are the Li. nks between KSA
ai. EPOzt and the Ci. ty of Sydney and connecti. ons to
the matn artezi. aL It11ks to the west.

'The esti. mates ^or the cost o:6 upg, :adj. rig the roads
have been made on the asstzrnpti. on that ^Loin 1995
pas senger movements generated by ECSA \I. LL LITczea. se

progressi. veLy to an uLti. mate LeveL i. n excess 0^ 40^

above exi. sti. rig movements .

As sumi. rig inczeas e i. n ai. EPOrt as SOCi. ated tz:a ^ ^i. c

takes pLace over ti. me ^:=Qin L995, It wonLd be
desi. LabLe to have tile connectLons ^2:0m tile domestLc

C , = INET-IN-

ONFID

NC

[45]

INET-IN-CONFID

40
ATTACHMENT G

and Lntei=nattonaL termLnaLs to Southern Cross DLLve

and PELnces Hzghway, respecCLVeLy operati. on aL as

soon as possLbLe therea^tez:. The connections wouLd

cost around $20 ini. ILLon. The E'5 freeway, whi. cti wLLL
signi. ^i. cantLy tinp, =ove access to the south west, i. s
expected to be substanti. aLLy coinpLeted as a PELvate
toLLway by 1995.

As CTaf^i. c increased i. t wonLd be hi. gilly desLrabLe to

construct the "Southern artezi. aL route whi. ch wi. IL

ILnk the F5 and the PELnces 11i. ghway to the

Py, =mont/Botany Nation aL arteri. aL . The estLmated

cost of this Li. nk is $110m. As tz:a^Etc voLrunes

generated by the at, =port ( and other sources )

i. ncz:ease , the economi. c returns ^Loin a much i. inproved
ItItk to the north west to connect to Parr'am atta Road

at an estimated cost o^ $ Loom would be hi. gh.

The tota. L cost o^ these addi. ti. on aL works i. s $230m I. n

L989 PELces. It couLd be expected that, gi. Yen the

New South ViaLes Government support ^or the 1<SA
deveLopment, the progressi. ve nature o^ the
expendi. tLITe requi. cement and the ILLgti generaL
economi. c be neti. ts ^2:0m these Li. Itks, 50^ or so o^ the

^unds should be ^orcticomi. rig ^,:Qin the State.

It

would be des, .Table to augment the ACRD by $25m per

annum i. n 1989 prices i. n the year's L993-98 LncLusi. .ve.

BINET-IN-co

IDE NC E

[46]
Pa rra nid, ,a

^::, <\^

,,,*, *,,,

River

' , ' RAMATTA

\)~

PORT JACKSON

$140M
^44,

$164M

YDNEY

1.1
>

I^,

.~

^
Q

OAD

co
co

ROAD

o=
o
Z

\I

cC

$100M

o
Q

LU

^
I. -

^,,

110M

$40M
C

BRAMATTA
^!'

xi^10"'

BANKSTOWN
AIRPORT

.^.

<5

$340M

.^:.
,>
F1

<7

O^,
^/11

LIVERPOOL

KINGSFORD
SMITH
AIRPORT

^.

.^.
<9
*b

<^,

BOTANY BAY

^,.

$40
o
Q, -.

Orbital Route

River

2 Lanes

^.

4 Lanes

Freeway

Proposed Tollway
\

.^.

co

O'

IZA BE 7H

^.

National Arterial

KINGSFORD SMITH

^{I^(!

[47]

ET-

-CON I.

NCE

-42ATTAC}I^, IENT H

KSA IQEDTD, I SPACED PAPAT. T. ^L RUNWAY

FORECAST NOTSE T^PACT

The e^fects of aircra^t noise are i. LLustrated by the

Austra 11 an Notse Exposure Forecast (ANEF) system. Thi. s

invoIves the construction of contours I Inki. ng togetheI:'
points of equal cumulative noise exposure. The contours are

derived ^,=Qin an assessment of fLi. ght patterns, the number o^

dai. I. y at I:'craft operations by type of airc, :a^t and ti. me o^
day or ni. ght, noise characteristics o^ each aircraft type
d u I:' I n g t a k e - o f f a rid L and i. rig , a n d runway u t i. L ,. s a t i. o n
patterns. The contours usual. ,. y pLotted are 20, 25, 3 0 and
4 0 ANEF uni. ts. The sever, .ty of riotse effect increases with
the ANEF vaJ. ue .

The 25 ANEF' contour i. s regarded by the Commonwea, .th and the

Standa rds As SOCi. atton o f AUS t r a L i. a a s th e a ppI:' op ri. a t e
cri. t eri. on f or I. tintti. rig residenti. aL Land use near at, =ports ,
aLthough i. t i, s recogni. sed that some peopLe may ^ina exposure
to the 20 AN^F' I. eveL sti. ,. L uriacceptabl. e.
An app, =opri. ate SLngl. e ^i. gti, =e that i, s useruL as an estimate
of the number of peopLe at'^ected by noi. se and to compare
various options Is the number o^ peopl. e "sen. ousLy a^^ected"
as defined by the NattonaL ACousti. c Laboratori. es. TILLS
concept takes account o^ noise exposure down to 1.5 ANEF' and
.

is weighted towards the higher exposure LeveLs.

The toLLowi. rig tabLe sets out estimates o^ the popuLat. ion
currentLy a^fected by aircraft noise from KSA as weLJ. as
esti. mates of population Li. keLy to be a^^ected i. n the future
.

under di. ^fezent. runway operati. rig scenarios .

CABIN

-IN-

ON IDENCE

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[48]

[49]

ABIN T

IN-CONF .

CE
ATTACHMENT I

-44-

SECOND SYDNEY AIRPORT - BADGERYS CREEK

ACQUISlnON PROGRAM - CURRENT POSITION
243

Number of properties to be purchased

Number of properties acquired to date
1985/86

1986/87

52

1987/88

50

1988/89

6
}11

TOTAL

132

Number of properties still to be purchased

Total Estimated Cost of Purchase of Site $82m
Expenditure to date

(to Feb 89)

1985/86

$0.510m

1986/87

$9,778m

1987/88

$14,469m

1988/89

$1,776m

TOTAL

$26,533m

1988/89

Program

Funds allocated

$15,855m

(Expenditure to date (Feb 89)

$1,776m

(See note)
$14.079m

Balance of funds

Notes

The considerable public debate about the relative merits of development options at

Kingsford-Smith Airport and/or Badgerys Creek has produced a very pronounced

reluctance by property owners at Badgerys Creek to negotiate the sale of t eir
properties to the Commonwealth. The imminent passing of the new Lands
Acquisition Act also appears to have caused property owners to delay entering into
meaningful negotiations about the sale of their properties. This has resulted in only
six properties being purchased so far this financial year even though formal offers
have been made to all owners whose properties were scheduled for acquisition is
financial year. In addition formal offers are being made now to some owners
scheduled for next year's programme.

, 31

-IN-

ON

IDEN

ATTACHMENT T

CABINET

-CON

ID

NCE

-45-

SECOND SYDNEY AIRPORT - BADGERYS CREEK

ACQUISlnON PROGRAM - PROCESSES FOR ACQUIRING THE REMAINING 1.32

PROPERTES IN THE SITE

In February 1986 the Government selected an area of some 1776 hectares at

Badgerys Creek as the site for development of a second Sydney airport and agreed
to an immediate start on the acquisition of properties by agreement.

As a direct result of that decision the Commonwealth offered to acquire by

agreement any property in the selected area, at a fair price, on receipt of a
written request from the owner.

The compulsory acquisition process is not being used. However because of the

nature of the project and in keeping with the spirit of the new lands acquisition
legislation, in addition to being paid fair market value for their properties owners
are being paid the costs incurred by them that are a direct consequence of the
acquisition as would be the case if the properties were acquired compulsorily. (e. g.
valuation and relocation costs).

The acquisitions are being authorised PUTSuant to the provisions of the existing
legislation - the Lands Acquisition Act 1955.
New Lands Acquisition legislation is presently being considered by the Parliament
and it is expected to come into force during May 1989 replacing the 1955 Act. The

new legislation has received considerable attention from the public. The present
second Sydney airport situation has been a feature of the debate and given that a
prime objective of the new legislation is the protection of individuals whose land

the Commonwealth wants to acquire it would riot be appropriate to compulsorily

acquire the remaining properties at Badgerys Creek using the 1955 Act.

The procedures leading to acquisition under the new lands acquisition legislation
are as follows=

Owners are issued a pre-acquisition declaration;

Owners may seek Ministerial reconsideration of the decision to acquire.

Owners have 28 days to seek reconsideration);
If the Minister confirms his decision owners may have the Administrative

Appeals Tribunal (AAT) review the Minister's decision to acquire Owners

have 28 days to seek AAT review).

Bl

-I

ONFIDENC

[50]

ATTACHMENT T

CABIN T-I

-co

ID

NCE

-46-

The worst case scenario from a timing point of view is where an owner seeks
Ministerial reconsideration and review by the AAT and waits out the full time
given for him to decide to appeal. The total elapsed time taken from issue of the
pre-acquisition declaration to acquisition is dependent on how long the AAT takes
to review the matter and make a recommendation to the Minister. If it is assumed

that the AAT takes 3 months to review the Minister's decision the total elapsed
time from issue of a pre-acquisition delcaration to acquisition is 6 months for this
worst case scenario.

The AAT's Secretariat has indicated that the 3 months time estimate for AAT

review is reasonable provided that there was sufficient political pressure to have

the hearing as soon as possible. The time estimate also assumes that the parties
appealing have, in the AAT's view, sufficient time to develop their case.

If an owner does not seek to have the decision to acquire reconsidered by the
Minister, then that property could be acquired 2 months after issue of the preacquisition declaration.

Regarding taking vacant possession, the new legislation provides that an owner may
stay in occupation for six months after compulsory acquisition. However the
Minister is able to declare that vacant possession is required immediately if he is
satisfied that it is essential that possession of the land is required urgently.

BINE

-IN-CONFIDEN

[51]

ATTACHMENT T

NE

-IN

CONFIDENC

-47-

SECOND SYDNEY AIRPORT - BADGERYS CREEK

ACQUISmON PROGRAM - PROCESS FOR DEALING WITH REVENUE LEASES
OF ACQUIRED PROPERTIES

Of the properties so far acquired by the Commonwealth 1.8 are currently leased to
former owners and 87 are currently leased to others. Of the leases in existence 62
have an expiry date of 31 December 1990.

The balance have various earlier expiry dates. None has an expiry date beyond 31
December 1990.

Should it become necessary to obtain possession of leased properties (prior to lease

expiry dates) the Commonwealth would need to negotiate earlier termination dates
and if necessary pay compensation to lessees for the acquisition of the unexpired
portion of the term of the lease together with all associated costs in accordance
with the new legislation.
SUMMARY

In summary the current position is that properties are being acquired by agreement

under the provisions of the existing legislation only if they are offered for sale to
the Commonwealth. The compulsory acquisition process is not being used. If it
became necessary to use the compulsory acquisition process it would not be
appropriate to initiate action under the existing legislation. Accordingly any
compulsory acquisition would need to await the commencement of the new

legislation which is expected in late May 1989. The balance of the site could
progressive!y be acquired from July 1989 however using the worst case scenario
outlined above, the Commonwealth could not realistically expect to gain possession
of the total site, using the compulsory acquisition process, before December 1989
(on the basis of a May 89 commencement date).

ABIN T

ON IDENCE

[52]

[53]

ABINET- N

ONFIDENC
48
ATTACHMENT J

BADGERY ' S CREEK ROAD ACCESS

The toLLowi. rig estimates o^ road access requirements to

service the Badgery' s Creek a:. EPOrt are indicative onLy. AL
costs are in L98889 prices. A detai. Led evaLuati. on o^
transport needs and costs wouLd. need to be undertaken prior
to any ^11:'in proposaLs be, .rig aeveLoped.

ProposaLs for upgrading the transport system wouLd aLso need

to be considered in consuLtati. on with the New South WaLes
Government .

Roads reLevant to the deveLopment o^ an airport at Badgery' s

Creek are at F'19ures L & 2. These roads Link the Badgery ' s
Creek airport to the arteri. aL road system, main centres o^
popuLatIon and empLoyment and the 1<1rigs^ord Sini. t. h atzport.
O P'I' I ONS

4.

Estimates o^ the cost o^ upgrading roads have been made ^or

the toLLowi. rig options s

DeveLopment by L995 0^ Badgery' s Creek as a domestic

at I:'por t w L t. h Ini. t I a L Ly L ow t za ^ ^i. c 'L eve L S IncI: ea s I rig
over time to a ^uLLy operation aL domestic airport.

(2)

DeveLopment by L995 0^ Badgery ' s Creek as a ^uLLy

opeI:' at, . on a L Int ernati. on a L at EPOr t. wi. th Low dome s t Ic

tra^Etc LeveLs.

CAB

ET- N-Co

F DENCE

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[57]

ABIN T-I

ONFl.

NC
ATTACHMENT J

L6. To accomodate these prior:. ties, ^unds wouLd need to be

redLzected ^EQm projects aLready approved in Newcast. Le,

WOLLongong, on the Pact^IC Highway and EUraL New South WaLes.
Industry and motor, .st groups would cr:. ticLse these
reaLLocat. tons. I^, to avoid this cz3. tic, .sin, these roads were

to be ^unded as a net addi. tLon to the ACRD program, outlays

under the ACRD program wouLd have to be increased by the
order 0^ $260m ^or roadworks and $Loom-$200m ^or Land

acquJ. siti. on Ie a totaL 0^ $360m-$460m over the ^tve year

perIod .
(2)

InternattonaL Airport at Badgery ' s Creek

It i's estimated that the requirements wouLd. be the same as

that ^or the ^uLLy operation aL domestic airport, as set out

above, expect that BringeLLy Road wouLd need to be brought to
a ^Leeway standard and connected wLth the E'5. The
deveLopment o^ the ^reeway Link ^zom the F5 to the CBD ( the

Southern arteri. aL) be^ore, or as soon as possi. bLe a^ter, L996

wonLd aLso be highLy desi. LabLe. Because o^ the acceLerat. ion

o^ the timescaLe the State i, s LikeLy to argue for ^uLL

CommonweaLth ^undi. rig o^ the $LLOm cost. Together with the
extra cost o^ constructing BringeLLy Road to ^Eeeway standard
( $20 inILLi. on) this wouLd bring the CotaL priority roadworks
to $490m-$590m. It wouLd be particuLarLy important to have
aLL or as many as possi. bLe o^ these I. inprovemerits coinpLeted by
1996. This wouLd require suppLementati. on o^ the ACRD by
$ 490 -$ 590m .

CABIN T-IN-C . NFl.

NC

[58]

P. rr. in. It a

PE"RITH
GREAT WESTERN H, GHWAY

PORT JACKSON

n, ,,,

RAM

I^c^

TA

R" FREEWAY

$140M

2M

$ 164M,

SYDNEY

,,...

>
,
Q

4?r
ROAD

a
q

",
o
"
o
Z
C

ROAD

^ $40M
o
C
o

"

$1 10

"
.

$10M

Z
,-

a
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un

~
I

40M

$30M

$5M

A"ATTA R

EL, ABE7

BETH

BANKSTOWN

BADGERYS

CREEK

'91/6

LIVERPOOL

a,

AIRPORT ^

^:^

*, *

.$,
,*
BOTANY BAY

*-

^$8M

>

"
U

^.

BRINGELLY ROAD

2 Lanes

50M

Freeway

Proposed Tollway
National Arterial

*-

R, v. r

4 Lanes

$.

$15M

$ 40M

AIRPORT

*
*-

8
q

KINGSFORD
SMITH
AIRPORT

<^.

%/
Orbital Route

<
Z
o

444'

10 kin

BADGERYS CREEK-DOMESTIC
'00

AMPBELLTOW"

HACK, NG

[59]

PENRITl. I

p. r, .in. ,I.

GREAT I, ESTER" ", GHWAV

RJ, .,

TA

AM
"

PORT JACKSON

" FREE"AV

$2M

$140M

$164M

YD"EY

*4?

>
C
Q

ROAD
o
"

^ $40M
C
o

10M

$40M

$30M , ,

BADGERYS

CREEK
AIRPORT

Z.

^,

t.

'a.

o
t

^$8M

KINGSFORD
SMITH
AIRPORT

491*^LIVERPO

a
o
in

ADOATTA

I-

0'

E ZABE7"

ABETH

<$1
Lfl

$11

"

$5M

co
co
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C
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Z

ROAD

BANKSTOWN
AIRPORT

.4

.$,
^

BonNV BAY

$40

o
Q

00

BRINGELLY ROAD

2 Lanes

70M

4 Lanes

^.

Freeway
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~
V

$15M

*-

National Arterial

<3'

Orbital Route

%*

<
Z

10 km

4^.
40

AMPBELLTOW"

ADGERYS CRE

-INTEi

ATIONAL

HACKl"G

[60]

ABINET

-CONFIDENCE
-55ATTACHMENT K

DEPARTMENTAL co- ORDTNATTON coiniENTs

Tireasurv

I. .

Tirea sury c o n s Id eI:' s th e in o s t e f ^ IC Ie n t tinm edi. a t e

response to congesti. on at KSA i. s the i. ntroducti. on o^ PI:. i. cmg

mechantsms to smooth the current peaking of demand, reduce
the extent o^ cLuster scheduJ. trig and divert Lower val. ued

fLi. ghts to other airports when switching between times i. s

uneconomLc.

Re c Qinmendati. on ( aLS
) i. s there ^ore supported

provided it does not unduLy deLay the introducti. on of

tinproved demand management arrangements.
2.

Figure 2 in Attachment E to the submission indi. cates

that, with more effi. ci. ent PI:'i. cing, growth in Sydney's
international. and domesti. c ti=at^IC couLd be met over the

next 5 year's provided there was additional. capacity for

commuter and GA operations. The most cost-e^^ecti. ve way of
meeti. rig ttii. s demand i. s Opti. on I. .
3.

To accommodate the projected growth i. n RPT traf ^i. c

beyond about 1.994 the Submi. SSLon makes it clear that

deveLopment of a thi. ,:d runway at KSA (Opti. on 2 ) wouJ. d be the

most cost effective SOLuti. on and the one whi. ch wou, .d no

doubt be seLected on a commercial basis by the FAC.

4.

This i, s rejected i. n the submi. ss, .on in favour of an

earLy start to Large scaLe deveLopment at Badgerys Creek on

SOCi. aL and envi. roninenta, . grounds. However, the data on
noise impacts provi. ded in Attachment H demonstrate that the
number of peopLe a^^ected by aircra^t noi. se i, s expected to
faLJ. i. n the year's ahead and that the i. ntroducti. on of a

medium spaced paraJ. l. eL runway at KSA wouLd riot increase the

number atfected compared with the present conei. gurati. on.

CA INET-IN-CON IDENCE

[61]

CA

ET

IN-CONFID

NC

56 ATTAC}-{LIENT K

Restrictions on jet operations to the north of the runway

wouLd further reduce the noise impact.
5. Tinmedi. ate adoption of Opti. on 3 (a) is clearLy riot

justi. ^led on economic grounds and would requi. re the payment

of Large (but unspeci. fled) subsidies to the FAC. Thi. s woul. d
cut across the whoLe thrust o^ recent policy to improve the
efetci. ency of the aviation industry and to make the
operation of airports more commercial. .
6. We there^ore support Option 2 for the deveJ. opment o^ a
thi. rd runway at KSA. DeveLopment o^ Badgerys Creek beyond
that provided under Option 2 may eventuaLLy become
necessary, but the timing o^ that deveJ. opment i, s cruci. aL and

is a matter best Left to the coinmerci. a, . judgement of the FAC

Finance

7.

Finance supports recommendati. ons (a) and (b) for an

urgent review of tra^^i. c management arrangements at KSA and

suggests that Minister's di. rect that pricing measures receive
particuLar attention in that context.
8. F'i. nance aJ. so supports recommendation (9) that any
decision on the future of Schofi. eLds aerodrome be deferred

p e n d In g d e ci. s Io n s on detail. ed arrangement s f oI:' gene I:'al.

avi. at ion in the Sydney regi. on.
9.

However , Finance strongLy opposes recommendations ( c )

to (f) for an earLy start to a substanti. aL domestic ^aci. Lity

at Badgerys Creek. Tt suggests i. nstead that the Government
announce a decision in prtnci. PI. e to proceed with a thi. r. d
runway at KSA wi. th cominttment to specific ^undi. rig to be
dependant on further advice (see bel. ow) .

The announcement

Of Such a deci. SIon WILL give a cLeai: sense of directi. on

which wi. 1.1. factl. it ate these ^u, :theI:. studies and PI. anrimg.

CABINET-IN-co F10ENC

[62]

CA

-I

-co

F10

NC

57

ATTAC}11.1ENT K

I. 0 .

Tn thi. s regard Finance notes that whi. Le (as the

Submission makes cl. ear) all cost estimates are very rubbery,
the economic case in favour of KSA i. s overwheLmi. rig (Indeed
the ^i. quires in paragraph 28 grossLy underestimate the cost

disadvantage of Badgerys Creek versus KSA) .

The mai or

environmental. problem - noise - can as the submission states

be expected to be reduced (in terms of popuJ. atton affected
by severe riotse) by the thi. ,:d runway at KSA.
1.1. .

Tn rel. atton to the $375M esti. mate for the KSA option

the need for any early commencement of faci. LitLes at

Badgerys Creek (estimated cost $3.1.6M) in conjunction with
the thi. rd runway has riot been demonstrated in the Submission
and wouLd in any event need review i. n the Light of the
results of the demand management study. The $75M proposed
for access roads to KSA couLd be absorbed within approved
Level. s of Commonwealth roads funding or met by the State
which a^tel:. al. L WILL recei. ve much of the be neti. ts of the

Sydney airport development.

1.2 .

The $1. bn estimate for Badgerys Creek excLudes $340M

for the F5 ^reeway from Aimc, .itee to Moorebank and makes no

provi. SLon for the Cost of the provi. SIon o^ State uti. Liti. es
(water, power, sewerage) .

Nor is there

any provLSJ. on

f oI:'

the substanti. al. annuaL subsidy which the FAC wou, .d require
to carry out this uneconomi. c i. nvestment. Whi. I. e some
aLLowance Ls made for the estabLi. shinent of dupl. i. Gate
f act I. Iti. es by the exi. sting mai or do in e s t IC a Ir L i. n e s ,

nO

aLLowance is made for the cost of major disruption to other

elements of the industry or the traveLLi. rig pubLi. c.
3.3 .

Pi. nance suggests that the FAC be asked to come back

with detaiLed proposaLs for the deveLopment of a third

runway at KSA i. nc L udi. rig ^i. ,:in cost es ti. mates , construction

ti. in trig, and arrangements ^Or Cost recovery fI:'Qin the

industry .

ET

N-CONFIDE

[63]
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59
ATTACHliENT K

programmed revenue for 198889 of some $10M.

The current

status of Schofi. eLds i. n reLati. on to Government deci. SLons on

the Housing Task Force Report also needs to be noted.

L8 . The Department of the Arts, Sport, the Envi. rooment,
Touri. sin and Te, :,=i. tortes agrees that urgent acti. on i. s
Legui. red to address the PICObLem of at, :craft congest. ton at
1<SA. On the baLance o^ touri. sin and envi. ,:oninentaL

consi. der. ati. ons, and bean. rig i. n ini. rid that traf Etc esti. mates
i. n the Submi. SSLon are parti. aLl. y based on touri. sin forecasts
whi. ch may prove to be conse, :vati. ve, the Department consi. ders
that the acceLeJ:ated development of Badgerys Creek i. s
uriavoi. dabLe. The LeveL of deveLopment requi. ,=ed wouLd depend
on the success of the measures to tinp, :ove tJ:at Etc management
and on actual. rates of tJ:at^i. c growth achi. eved.
L9 . The Departments of the Prtme MintsteJ: and Cabi. net
and Adriii. ni. stz=at tve Services were uriabJ. e to provide comments
i. n the ti. me avai. LabLe .

ON^ . I^N . 0-Nl-

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