Jersey Aircraft Registry: Law: Establishment

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A decision made on 19 September 2013:

Decision Reference: MD-E-2013-0089
Decision Summary Title :	Establishment of the Jersey Aircraft Registry including necessary development or amendment of appropriate legislation		Date of Decision Summary:	17 September 2013
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 :	Establishment of the Jersey Aircraft Registry		Date of Written Report:	17 September 2013
Written Report Author:	Strategic Policy Manager		Written Report : Public or Exempt?	Public
Subject: Establishment of a Jersey Aircraft Registry to increase the suite of offerings the Island can extend including the Jersey Shipping Registry. Development of an Aircraft Registry (Jersey) Law, the primary legislation for the operation of the Jersey Aircraft Registry and any other supportive legislation to enable the establishment and operation of a Jersey Aircraft Registry
Decision(s): The Minister made a policy decision to establish a Jersey Aircraft Registry
Reason(s) for Decision: The Minister made a policy decision in September 2013 to establish a Jersey Aircraft Registry, following a joint political decision with his counterpart, the Minister for Commerce and Employment, in Guernsey not to proceed with a joint Channel Islands Aircraft Registry. A Working Group has been established with key personnel from both the private and public sector, under agreed Terms of Reference, to develop and establish the ideal operational model for the Jersey Aircraft Registry in early 2014, alongside the development of the necessary legislative framework to support the Registry. This decision will allow the immediate commencement of drafting the Jersey Aircraft Registry legislation
Resource Implications: While a decision is still needed to be made on the preferred operational model, it is envisaged that the Registry established will have little on-going resource implications once the set-up phase has been completed
Action required: The establishment of a Jersey Aircraft Registry Working Group; and A request for law drafting time to develop the necessary legislative framework to establish the Jersey Aircraft Registry The Minister to sign and date the Ministerial Decision and for it to be returned to the States Greffe.
Signature: Senator A.J.H.Maclean		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Jersey Aircraft Registry: Law: Establishment

Establishing the Jersey Aircraft Registry

Background

Following lengthy discussions over a number of years between Jersey and Guernsey about the establishment of a joint Channel Islands Aircraft Registry at a meeting in August 2013, between the Minister for Economic Development and the Commerce and Employment Minister, a decision was made not to proceed.

It had become apparent over recent months – after both jurisdictions having taken independent expert legal opinion – that a single registry could not meet the separate operational and commercial interests of both Islands. It was therefore decided that each jurisdiction would move ahead with separate plans.

While Guernsey is proceeding with its own Registry, due to be launched in December 2013, the Minister for Economic Development indicated his decision for Jersey to establish its own registry, to be launched with a target date of the end of Quarter 1, 2014.

While the initial strategic outline case for a Jersey Aircraft Registry was very positive, in economic terms, the data used was based on statistics compiled before the pre-2008 economic downturn. Before proceeding with the development of the Registry, it will be prudent to revisit the initial report to determine if the economic returns are still sound

On the basis that the outline business case is still viable, a business model for the delivery of the Registry will need to be developed and agreed. In the meantime, progress is being made to develop the necessary legislative framework.

It has been agreed, with the full support of the Minister, to set up a Jersey Aircraft Registry Working Group (JARWG), chaired by Deputy James Baker and comprising representatives from the private sector having aviation experience, along with a number of senior officers from the States of Jersey.

Terms of Reference

The Terms of Reference for the JARWG are as follows:

To define the optimum operational and governance structure and make a recommendation to the Minister for Economic Development to implement as necessary.
To develop business operations and ensure they will be subject to rigorous independent commercial challenge in a manner which enhances governance.
To act as a consultative body for stakeholders/stakeholder bodies, to channel their views on the business model.
To undertake any other appropriate roles as agreed with the Minister for Economic Development.

While a target date has been set for the end of Quarter 1, 2014 for the Registry to be officially launched, the timeline will ultimately be determined by the progress of legislation by the Privy Council, and their acceptance of the operational model which will be subject to their confidence that there are no financial or reputational liabilities that could be borne upon by the UK authorities.

Resource Implications:

The JARWG will consider and agree upon the optimum operational structure to deliver the Registry. The intention will be to make the Registry as commercial and competitive as other jurisdictions as well as determining what makes the Jersey Aircraft Registry, the Register of choice.

Currently, it is uncertain as to actual resource implications, but it is highly unlikely that the Registry will be operated through the States of Jersey, following similar jurisdictions such as the Isle of Man, Malta, San Marino and Guernsey who have all chosen an outsourced solution, at minimal outline set-up cost.