Aerodrome Licence Fee: 2014

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A decision made 5 December 2013:

Decision Reference: MD-C-2013-0148
Decision Summary Title :	Aerodrome licence fee 2014.doc		Date of Decision Summary:	5 December 2013
Decision Summary Author:	External Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Aerodrome licence fee 2014		Date of Written Report:	27 November 2013
Written Report Author:	External Relations		Written Report : Public or Exempt?	Public
Subject: Aerodrome licence fee 2014
Decision(s): The Minister for External Relations 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 Jersey aerodrome licence fee for 2014 of £139,000.
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 respective Ministers have agreed the proposed licence fee for 2014. 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 payment of a fee involves the transfer of revenue from Jersey Airport to the Directorate of Civil Aviation, which is administered through the Chief Minister’s Department. The expenditure arising for commissioning services from external providers would previously have been borne by the Airport directly rather than by the Director of Civil Aviation. The proposed fee of £139,000 represents an 18% reduction on the previous year’s fee of £169,000.
Action required: The Chief Minister’s Department is to – inform the States Greffe of the decision and to request the Ministerial Decision is published in the usual manner and in accordance with the Civil Aviation (Jersey) Law 2008; on behalf of the Director of Civil Aviation, issue an invoice for £139,000 to Jersey Airport to request the agreed licence fee for 2014 is paid to the Chief Minister’s Department.
Signature: Senator Sir Philip Bailhache		Position: Minister for External Relations
Date Signed:		Date of Decision (If different from Date Signed):

Aerodrome Licence Fee: 2014

Decision Summary

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 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 2014 of £139,000.

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 Chief Minister is recommended to determine an aerodrome licence fee for Jersey Airport in 2014 of £139,000.

M Entwistle

27 November 2013