Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201-

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A decision made 2 April 2015:

Decision Reference: MD-E-2015-0031
Decision Summary Title :	Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201-		Date of Decision Summary:	27 March 2015
Decision Summary Author:	Strategic Policy Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title :	AR(J)L and AN(J)L Miscellaneous Provisions		Date of Written Report:	27 March 2015
Written Report Author:	Strategic Policy Manager		Written Report : Public or Exempt?	Public
Subject: Approval of the draft Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201-
Decision(s): The Minister approved the draft Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201-for lodging, and directed that the document should be lodged au Greffe so as to allow the Law to be debated by the States.
Reason(s) for Decision: In order to formally establish and subsequently deliver the Jersey Aircraft Registry, and its services, it is necessary to have the requisite miscellaneous legislative provisions in place. While matters relating to the Air Navigation (Jersey) Law fall under the responsibility of the Minister for External Relations, the proposed provisions in this piece of primary legislation are of a consequence of the establishment of the Jersey Aircraft Registry which is the Minister for Economic Development’s responsibility. The Law Officers’ Department has confirmed that the draft Law is compliant with the European Convention on Human Rights.
Resource Implications: There are no financial and manpower implications as a result of the States adopting the draft Law.
Action required: Forward the signed Ministerial Decision to the Greffe; Forward the draft Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201- and report to the Greffe to be lodged; and request the Greffier of the States to arrange for the project to be lodged 'au Greffe’
Signature: Senator L J Farnham		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201-

WRITTEN REPORT

Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201- (the “draft Law”)

Background

The draft Law is the result of further consultation on the Aircraft Registration (Jersey) Law 2014 (the “Aircraft Registration Law”) in advance of the launch of the Jersey Aircraft Registry (the “JAR”). This further consultation has occurred due to the Government being encouraged to consider having ratification of the Cape Town Convention on International Interests in Mobile Equipment (the “Cape Town Convention”) extended to Jersey. The United Kingdom are currently moving towards imminent ratification of the Cape Town Convention and have asked the Crown Dependencies to confirm their position on this matter to ascertain whether a single method of ratification with the Crown Dependencies is possible.

Consultation has indicated that it appears desirable that the Cape Town Convention is extended to Jersey. There are, however, various options and declarations that can be made in respect of the convention which have been included in the consultation. It is anticipated that draft Regulations will be lodged for debate by the States Assembly in the very near future.

There is also a miscellaneous amendment to the Air Navigation (Jersey) Law 2014 (the “Air Navigation Law”) as a result of the extension of the United Nations Convention on Transnational Organised Crime the “Palermo Convention”).

i) Article 1 of the draft Law – amendment to Article 29 and 30 of the Aircraft Registration Law

The amendments made by Article 1 of the draft Law to the Aircraft Registration Law which amends Article 1 and 29 and repeals Article 30 are specifically made after consultation with the financial services industry regarding the registration of aircrafts on the JAR that wish to be registered with foreign law mortgages.

These amendments intend to put the position beyond doubt that recognition and enforcement of an aircraft mortgage or aircraft engine mortgage can occur regardless of whether the “aircraft mortgage” or “aircraft engine mortgage” (as defined in the Aircraft Registration Law) is created under Jersey law or under foreign law.

The revision of the definitions in respect of “aircraft mortgage” and “aircraft engine mortgage” by virtue of Article 1 also seeks to address the issue of the type of interest that is created. The addition of the words “whether or not title in the aircraft is transferred to the mortgagee” clarifies the position that a relevant interest can still be created in the absence of transfer of title. The introduction of these words recognize that valid “aircraft mortgages” and “aircraft engine mortgages” can be created under the Aircraft Registration Law but that in the case of some foreign law interests this may not occur by virtue of transfer of title.

In making these amendments, significant consultation has occurred with the financial services industry, the Financial Services Unit of the Chief Minister’s Department, the Economic Development Department, the Law Officers’ Department and the Viscount regarding this issue.

Importantly, the Viscount has confirmed that he is satisfied that the Aircraft Registration Law, as amended by the draft Law, will allow for the recognition and enforcement of foreign law interests that are registered on the JAR.

ii) Article 1 of the draft Law – amendment to Articles 11,13, 40, 41, 43, 44, 45, 46, 48, 50, 51 and 52 of the Aircraft Registration Law

Article 1 of the draft Law amends the Aircraft Registration Law to give a mortgagee the option to exercise powers of enforcement in respect of an aircraft mortgage or aircraft engine mortgage by leasing the aircraft or aircraft engine. It also makes provision for a prescribed fee to be payable for the issuance of a new certificate upon a change being made in the Register. Associated amendments are also made to Article 45 of the Aircraft Registration Law with the aim of clarifying the position as to gross proceeds of a lease.

Consideration of this amendment occurred through discussions over ratification of the Cape Town Convention and it was felt that this optionality was advantageous to those considering using Jersey as a jurisdiction which provides potential creditors with optionality and flexibility.

iii) Article 1 of the draft Law – amendment to Article 65 of the Aircraft Registration Law

Article 1 of the draft Law amends the Aircraft Registration Law to allow the Minister, by power of an Order, to make provisions for fees in addition to any fees prescribed in the Aircraft Registration Law. These fees will include, but are not limited to, grant issues or renewals of any other certificates, letters, permissions, approvals validations, variations or exemptions.

iv) Article 1 of the draft Law – amendment to Article 52 of the Aircraft Registration Law

Article 1 of the draft Law also amends the Aircraft Registration Law by repealing Article 52(3) of that Law. This has been done to ensure consistency in relation to the powers of the Viscount across legislation dealing with secured lending and further to consultation with the Viscount.

v) Article 2 of the draft Law – amendments to the Air Navigation Law

Article 2 of the draft Law makes an amendment which is required due to the recent extension to Jersey of the Palermo Convention. At the time the Convention was extended, Jersey did not have an active Aircraft Registry. However, when the Aircraft Registration Law is brought into force the requirements of Article 15 of the Palermo Convention would be applicable in the event that certain offences, such as may involve links to organised crime, money laundering or corruption, might be committed on any aircraft registered in Jersey, or in respect of an offences committed on a foreign-registered aircraft by a British national resident in Jersey.

The Convention requires that there is a power to provide the courts in Jersey with the jurisdiction to deal with –

(a) an offence committed by a person whilst on board an aircraft registered in Jersey and at the time the offence is committed the aircraft is outside Jersey; or

(b) an offence committed by a person whilst on board an aircraft registered in a country other than Jersey and that person is a British citizen ordinarily resident in Jersey and is not a national of the country in which the aircraft is registered.

Article 2 of the draft Law makes these amendments by inserting a new Article 173A into the Air Navigation Law.

Human Rights Compatibility

The attached Memorandum in respect of the draft Aircraft Registration and Air Navigation (Miscellaneous Provisions) (Jersey) Law 201- has been prepared by the Law Officers’ Department. The document summarises the principle human rights issues arising from the contents of the draft Law and explains why, in the Law Officers’ opinion, the draft Law is compatible with the European Convention on Human Rights as implemented under the Human Rights (Jersey) Law 2000.

These notes are included for the information of States Members. They are not, and should not be taken as, legal advice.

Financial and Manpower Implications

There are no financial and manpower implications as a result of the States adopting the draft Law.

Summary

As the draft Law amends two Laws which are the separate responsibilities of the Minister for Economic Development (in respect of the Aircraft Registration Law) and the Minister for External Relations (in respect of the Air Navigation Law), and that the matters in question relate to financial services (for which the Chief Minister has responsibility) the draft Law has been formed in consultation with the Chief Minister’s Department and the Ministry of External Relations.

STRATEGIC POLICY MANAGER

ECONOMIC DEVELOPMENT DEPARTMENT

31 MARCH 2015