Pursuant to section 52W(2) of the Commerce Act 1986 (“Act”), the Commerce Commission (“Commission”) gives notice that it has amended the input methodologies applicable to specified airport services.

Specified airport services provided by Auckland International Airport Limited, Christchurch International Airport Limited and Wellington International Airport Limited are regulated under Part 4 of the Act.

The input methodologies that have been amended are set out in the Commerce Act (Specified Airport Services Input Methodologies) Determination 2010 (Decision No. 709, 22 December 2010).

The amended input methodologies are set out in the Airport Services (Land Valuation) Input Methodologies Amendments Determination 2016 [2016] NZCC 3 (“Amendment”).

The Amendment comes into effect on the date of this notice.

The Amendment is part of our review of input methodologies under section 52Y of the Act, and was completed under the Commission’s “fast-track” process for review of the input methodologies specifying the application of the market value alternative use (“MVAU”) land valuation methodology for specified airport services.

The Amendment updates the input methodologies for land valuation to align them with current international valuation standards and practices, remove potential sources of ambiguity, and narrow the potential range of airport land values derived under the MVAU land valuation methodology by clarifying the starting special assumption for zoning.

The Amendment incorporates the following standards by reference in accordance with Schedule 5 of the Act:

• IVS 101 – Scope of Work;
• IVS 102 – Implementation;
• IVS 103 – Reporting; and
• ANZVGN 1 – Valuation Procedures Real Property.

Copies of the Amendment and reasons paper are available on the Commission’s website at

comcom.govt.nz/regulated-industries/input-methodologies-2/input-methodologies-review/airport-fast-track-processes-for-im-review

Copies of the Amendment, reasons paper, IVS standards and ANZVGN 1 – Valuation Procedures Real Property are available for inspection free of charge at the Commission (during ordinary office hours).

Copies of the Amendment and reasons paper are available for purchase at a reasonable price at the Commission, 44 The Terrace, Wellington.

Copies of the IVS standards are available for purchase at

www.ivsc.org

Copies of the ANZVGN 1 – Valuation Procedures Real Property are available for free at

www.api.org.au/assets/media_library/000/000/037/original.pdf?1303874625

Dated at Wellington this 23rd day of February 2016.

COMMERCE COMMISSION.