Aerodrome Licence Fee 2014

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A decision made 3 December 2013:

Decision Reference: MD-E-2013-0114

Decision Summary Title:

DS - Aerodrome Licence Fee 2014

Date of Decision Summary:

25 November 2013

Decision Summary Author:

Group Safety, Security and Compliance and

Manager

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

WR - Aerodrome Licence Fee 2014

Date of Written Report:

25 November 2013

Written Report Author:

Group Safety, Security and Compliance and

Manager

Written Report :

Public or Exempt?

Public

Subject: Aerodrome Licence Fee 2013

Decision(s): The Minister approved expenditure of £139,000 for the issue of the Jersey Airport Aerodrome Licence for 2014 by the Director of Civil Aviation

Reason(s) for Decision:

The Civil Aviation (Jersey) Law 2008 provides, amongst other matters, that the aerodrome may be licensed and that the Minister for External Relations shall determine and publish the fee payable on the grant or renewal of a licence.

The Law also requires that the Minister for External Relations shall not determine the fee until he has sought and received the advice of the Minister for Treasury and Resources and the Minister for Economic Development.

The Minister agrees the proposed licence fee, with the proviso that such fee may be adjusted by the Minister for External Relations during the year if necessary after further advice is received from the Director Of Civil Aviation.

The fee has been set to take into account –

• The cost of maintaining the Directorate of Civil Aviation, shared equally with Guernsey, which has responsibilities for the regulatory oversight of civil aviation safety and aviation security for Jersey Airport,

• The cost of regulatory audits and investigations commissioned by the DCA in respect of Jersey airport from professional agencies, including the Civil Aviation Authority.

Resource Implications: The proposed fee of £139,000 represents an 18% reduction on the previous year’s costs of £169,000, and 22% reduction on the 2012 fee.

Action required:

The Economic Development Department is to –

• Inform the States Greffe of the decision and to request the Ministerial Decision is published in the usual manner;

• Agree the payment of the sum of £139,000 is paid to the Chief Minister’s Department by Jersey Airport in order that the Director of Civil Aviation may issue an Aerodrome Licence for 2014.

Signature:

Position:

Assistant Minister – Economic Development

Date Signed:

Date of Decision:

States of Jersey Financial Reporting Manual

WRITTEN REPORT – AERODROME LICENCE FEE

BACKGROUND

The Civil Aviation (Jersey) Law 2008 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. The DCA also provides regulatory oversight of aviation security, in accordance with international and UK standards. The cost is equally shared with Guernsey.

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 2014 Fee

There is always some uncertainty about the nature and extent of services that will be commissioned from the CAA, for example, or additional audits that may arise due to unexpected eventualities. However, an estimate of costs can be based on known fees, office expenses etc. and the planned programme of safety and security audits (see attached).

Prior to the Minister for External Relations 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. It is proposed that the fee should be set subject to a proviso that the Minister for External Relations may decide to adjust the fee either way, if necessary, during the year after discussion with the Minister for Economic Development and Minister for Treasury and Resources.

The interval between successive Aerodrome audits is typically 15 months, and the oversight audit of the Air Navigation Service Provider (Jersey Air Traffic Services) is 20 months (maximum 24 months). Both of these audits were completed during 2013 and, therefore, are not required during 2014. This results in a net saving of 18% on the licence fee from 2013, and 22% saving on 2012.

Conclusion

The Economic Development Minister is recommended to –

• Approve the payment by Jersey Airport for an aerodrome licence fee for Jersey Airport in 2014 of £139,000.

Group Safety Security and Compliance Manager

Ports of Jersey

25 November 2013