Aerodrome License Fee 2013

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A decision made on 28 December 2012:

Decision Reference: MD-E-2012-0169
Decision Summary Title:	DS - Aerodrome License Fee 2013		Date of Decision Summary:	12 December 2012
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 2013		Date of Written Report:	12 December 2012
Written Report Author:	Group Safety, Security and Compliance and Manager		Written Report : Public or Exempt?	Public
Subject: Aerodrome License Fee 2013
Decision(s): The Minister approved expenditure of £169,000 for the issue of the Jersey Airport Aerodrome License for 2013 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 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 Minister agrees 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 the Chief Minister. 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 £169,000 represents a 5% reduction on the previous year’s costs to £178,000.
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 in accordance with the Civil Aviation (Jersey) Law 2008; • agree the payment of the sum of £169,000 to is paid to the Chief Minister’s Department by Jersey Airport in order that the Director of Civil Aviation may issue an Aerodrome License for 2013.
Signature:		Position: Minister – Economic Development
Date Signed:		Date of Decision:

Aerodrome License Fee 2013

Written Report

MD-E-2012-0169

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 2013 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 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. 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.

Variation of 2012 Fee

The 2012 aerodrome licence fee agreed by the Chief Minister, in consultation with the Minister for Economic Development and the Minister for Treasury and Resources, was subject to a proviso that it might be adjusted by the Chief Minister during the year if necessary after further advice is received from each of the two other Ministers.

Due to unanticipated lower costs associated with the airspace redesign project, it has been possible for the DCA to make savings within the year of approximately £30,000 during 2012. The licence fee is paid from Jersey Airport’s trading funds and is intended to reflect the actual costs of maintaining the DCA. It is therefore recommended that the unspent balance of the licence fee in 2012 should be returned to Jersey Airport at the year end.

Conclusion

The Economic Development Minister is recommended to –

• Approve the payment by Jersey Airport for an aerodrome licence fee for Jersey Airport in 2013 of £169,000, subject to the above proviso;

Group Safety Security and Compliance Manager

Ports of Jersey

12 December 2012