REPORT
Aerodrome licence fee 2010
Background
The Civil Aviation (Jersey) Law 2008 came into force on 1 January 2009. The Law provides that the aerodrome (Jersey Airport) must be licensed in order that aircraft can use it, subject to certain exemptions.
A licence may only be granted by the Director of Civil Aviation providing that certain requirements are met, in particular that the aerodrome fulfils the requirements of the Chicago Convention on international civil aviation, 1944, and related Annexes regarding international standards and recommended practices.
An application for a licence also requires the payment of a licensing fee. The fee is intended to cover the costs of the Office of the Director of Civil Aviation (DCA), including services commissioned from external agencies, for example the UK Civil Aviation Authority (CAA). Previously these costs would have substantially been borne directly by the Airport; however, the establishment of an independent regulator for civil aviation involves the transfer of the relevant resources from the Airport to the DCA.
It is emphasised that there is no overall additional cost to the States, since the payment of a licence fee merely involves the transfer of existing resources from one Department to another.
Determination of the fee
The aerodrome licence was first issued in 2009 at a cost of £198,000. After discussing the fee with the Aerodrome Director and the Finance Director, the DCA has proposed that the 2010 budget for the Office of the DCA should be set at £150,000 (representing a 24% reduction on the 2009 budget figure).
It should be noted that a significant element of the budget is a provision to pay for the
support services provided to the DCA by the UK Civil Aviation Authority (International). This figure varies from year to year depending on the number of audits and amount of support required. In 2010 there is a large provision in support of the approval process for the new Air Traffic Control Centre, due to be commissioned in May 2010. Future years shall see a reduced figure for this element.
Prior to the Chief Minister’s determination of the fee, he is required to seek and to receive the advice of the Minister for Treasury and Resources and the Minister for Economic Development. Such consultation has taken place with the respective Ministers and they are content with the proposed fee for 2010 of £150,000.
Conclusion
The Chief Minister is recommended to determine a licence fee for Jersey Airport in 2010 of £150,000.