Aerodrome Licence Fee 2011

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A decision made 15 December 2010 regarding: Aerodrome Licence Fee 2011.

Decision Reference: MD-C-2010-0092
Decision Summary Title :	Aerodrome Licence Fee 2011		Date of Decision Summary:	10 December 2010
Decision Summary Author:	International Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Aerodrome Licence Fee 2011		Date of Written Report:	10 December 2008
Written Report Author:	International Relations		Written Report : Public or Exempt?	Public
Subject: Aerodrome licence fee 2011
Decision(s): The Chief Minister decided in pursuance of Article 14 of the Civil Aviation (Jersey) Law 2008, after receiving the advice of the Minister for Treasury and Resources and the Minister for Economic Development, to – determine the aerodrome licence fee for 2011 of £130,000; authorise the return to Jersey Airport of a rebate of £31,000 on the 2010 aerodrome licence fee.
Reason(s) for Decision: The Civil Aviation (Jersey) Law 2008 provides, amongst other matters, that the aerodrome may be licensed and that the Chief Minister shall determine and publish the fee payable on the grant or renewal of a licence. The Law also requires that the Chief Minister 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 respective Ministers have agreed the proposed licence fee, with the proviso that such fee may be adjusted by the Chief Minister during the year if necessary after further advice is received from each Minister. As a result of a rescheduled work programme in 2010 the Director of Civil Aviation has been able to reduce the cost of audits commissioned from the CAA during the year, resulting in a budget surplus of approximately £31,000 in 2010.
Resource Implications: The payment of a fee involves the transfer of revenue from Jersey Airport to the Directorate of Civil Aviation. However, there is no overall net cost to the States, as any expenditure arising (for example, commissioning services from external providers) would previously have been borne by the Airport directly rather than by the Director of Civil Aviation.
Action required: International Relations to – inform the States Greffe of the decision and to request it is published in accordance with the Law; on behalf of the Director of Civil Aviation, issue an invoice for £130,000 to Jersey Airport to request the agreed licence fee for 2011 is paid to the Chief Minister’s Department; request Jersey Airport to issue an invoice for £31,000 to the Chief Minister’s Department for rebate on the 2010 aerodrome licence fee payment.
Signature:		Position: Senator T.A. Le Sueur, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

Aerodrome Licence Fee 2011

Chief Minister’s Department

Ministerial Decision Report

Aerodrome License 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 license 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 license 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 license fee merely involves the transfer of existing resources from one Department to another.

Determination of the 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 audits.

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 2011 of £130,000 subject to the proviso below. This fee is a significant £20,000 (13%) reduction on the fee for 2010.

It is proposed that the fee should be set subject to a proviso that the Chief Minister 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.

Rebate on 2010 license fee

As a result of a rescheduled work programme in 2010 the Director of Civil Aviation has been able to reduce the cost of audits commissioned from the CAA during the year. Consequently, there has been a budget surplus in the Directorate of Civil Aviation of approximately £31,000 in 2010. It has therefore been agreed that this sum should be returned to the Jersey Airport trading account.

Conclusion

The Chief Minister is recommended to –

determine a license fee for Jersey Airport in 2011 of £130,000, subject to the above proviso; and
authorise the return to Jersey airport of a rebate of £31,000 on the 2010 aerodrome license fee.