Aerodrome Licence Fee 2009.

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A decision made (24/12/2008) regarding: Aerodrome Licence Fee 2009.

Decision Reference: MD-C-2008-0038
Decision Summary Title :	L:\International\Chief Minister decisions\Aerodrome licence fee 2009.doc		Date of Decision Summary:	23 December 2008
Decision Summary Author:	International Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Aerodrome licence fee 2009		Date of Written Report:	23 December 2008
Written Report Author:	International Relations		Written Report : Public or Exempt?	Public
Subject: Aerodrome licence fee 2009
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 2009 of £198,000.
Reason(s) for Decision: The Civil Aviation (Jersey) Law 2008 comes into force on 1 January 2009. The Law 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.
Resource Implications: The payment of a fee involves the transfer of revenue from Jersey Airport to the Chief Minister’s Department (Director of Civil Aviation). However, there is no net cost to the Sates, 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 – published the information in accordance with the Law; request Jersey Airport to authorise transfer of the licence fee to the Chief Minister’s Department.
Signature:		Position: Chief Minister
Date Signed: 24 December 2008		Date of Decision (If different from Date Signed):

Aerodrome Licence Fee 2009.

REPORT

Aerodrome licence fee

Background

The Civil Aviation (Jersey) Law 2008 was adopted by the States on 13 May 2008 and, following an Appointed Day Act, comes 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

As this is the first year that an aerodrome licence has been issued in Jersey, there is some uncertainty about the precise costs involved and, for example, the nature and extent of services that will be commissioned from the CAA. However, an estimate can be based on known salary costs, office expenses etc. and previous years’ expenditure on services commissioned by the Airport.

As the Director of Civil Aviation is due to leave States employment in March 2009, it is possible that a part-time replacement will be appointed, resulting in a cost saving. Conversely, additional costs may be incurred that have not yet been identified.

Given the uncertainties, it has been proposed that the fee should be set subject to the proviso that the Chief Minister will adjust the fee either way, if necessary, during the year after discussion with the relevant Ministers.

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 2009 of £198,000, subject to the above proviso.

Conclusion

The Chief Minister is recommended to determine a licence fee for Jersey Airport in 2009 of £198,000, subject to the above proviso.