Jersey Aircraft Registry: Memorandum of Understanding

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 8 February 2019

Decision Reference: MD-E-2019-00
Decision Summary Title :	Jersey Aircraft Registry – Memorandum of Understanding		Date of Decision Summary:	6th February 2019
Decision Summary Author:	Interim Private Secretary, EDTSC		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Jersey Aircraft Registry – Memorandum of Understanding		Date of Written Report:	6th February 2019
Written Report Author:	Director, EDTSC		Written Report : Public or Exempt?	Public
Subject: Jersey Aircraft Registry – Memorandum of Understanding
Decision(s): The Minister, pursuant to Article 2(3) and Article 3(2) (c) of the Aircraft Registration (Jersey) Law 2014 approved and signed a Memorandum of Understanding with Ports of Jersey Limited concerning the planned transfer to Ports of Jersey of operational responsibility for the Jersey Aircraft Registry.
Reason(s) for Decision: The Minister was satisfied that the terms and obligations set out in the appended Memorandum of Understanding provided a suitable basis for executing the transfer of operational responsibility, as originally proposed in the Minister’s letter to the Group Chief Executive of Ports of Jersey Limited dated 16th March 2018.
Resource Implications: There are no financial or manpower implications.
Action required: Director to communicate this decision to Ports of Jersey Limited and oversee the operational transfer.
Signature: Senator L J Farnham		Position: Minister for Economic Development, Tourism, Sport and Culture
Date Signed:		Date of Decision (If different from Date Signed)

Jersey Aircraft Registry: Memorandum of Understanding

Jersey Aircraft Registry

Formal Transfer of Operational Responsibility

BACKGROUND

On 16th March 2018 and following extended negotiations between Ports of Jersey the Minister wrote to the Group Chief Executive Officer, Ports of Jersey Limited (PoJL) inviting the company to assume operational responsibility for the Jersey Aircraft Registry (JAR).[1] Operational responsibility was defined as including integrated operational management of personnel, equipment, marketing, sales functions, materials and information technology. A copy of the 16th March correspondence is appended to this report.

The March correspondence prompted a further round of engagement and negotiation between the Minister, PoJL and a potential third party services provider that was provisionally understood to be well placed to assist PoJL with a substantially revised business model for the JAR.

PROGRESS
Negotiations between States officials and PoJL are now at the point of concluding and the Interim Group Chief Executive Officer has confirmed to Senator S. Pallett (in his capacity as Assistant Minister with delegated political oversight authority for the JAR) and the Director – EDTSC that the company is now content to assume operational responsibility for the JAR on terms similar to those outlined in the Minister’s letter of 16th March 2018 (attached).

TERMS

The Minister intends to transfer to PoJL operational responsibility for the JAR on the understanding that PoJL will achieve all of the following objectives -

The JAR will be maintained and operated in the manner best calculated to secure sustainable growth for the economy of Jersey in the medium to long term,
The JAR will be operated in accordance with international standards recognised by the UK Civil Aviation Authority and in a manner that ensures Jersey complies fully with all relevant international obligations,
The JAR will be maintained to the satisfaction of the Director of Civil Aviation (DCA),
PoJL will adopt and refine as necessary a business model that will aim to secure the financial viability of the JAR in the medium to long term and enhance the reputation of Jersey,
PoJL will (so far as within its powers) employ or engage suitably qualified persons or will ensure that suitably qualified persons are contracted or subcontracted in order to deliver the full range of commercial, operational and technical services necessary to operate the JAR,

PoJL will operate the JAR in a manner that does not generate a direct cost to government (it being noted that the administration of the JAR may have a negative impact on the profitability of POJL and/or cause PoJL to sustain losses), save that the engagement of the Registrar will remain a matter for the Minister,
PoJL will supply to the Minister during the first quarter of each full year of operation an annual report regarding the operation of the JAR during the previous year. The report will summarise –
1. performance,
2. key events
3. developments during the preceding year
4. details of internal or external factors that are deemed to have affected JAR operations;

In contracting with any other parties for the purposes of operating the JAR, PoJL will ensure that the Minister is –

not prevented from contacting registered aircraft owners or their agents for the purposes of upholding his statutory obligations
not in any way responsible for the management of any contract or relationship with third parties

That a contract between PoJL and an operational services provider to the JAR will specify or otherwise recognise that –

The third party must have an office in Jersey or must incorporate and establish such an office before commencing provision of operational services
PoJL will not approve any business plans required by contract between the parties without first consulting the Minister
PoJL will not vary the contract with the operational services provider without prior consultation with the Minister
Both parties must agree and uphold their respective responsibilities in respect of the Data Protection (Jersey) Law 2018
The Minister will conduct a full-scale review of the performance of the JAR at 5-yearly intervals and retains the right to close the JAR in the event of significant underperformance,

Both the Minister and PoJL retain the right to withdraw from the draft MoU in specified circumstances (see Termination). The above – and further – matters and obligations are set out in the appended draft MoU.

In agreeing to assume operational responsibility, PoJL understands that the Minister is himself committing to a series of specific obligations, as set out at paragraph 8 of the report.

RESOURCE IMPLICATIONS

PoJL’s offer to assume operational responsibility is made on the basis that it may rely on the above commitments. In this regard, it should be noted that policy development resource of the order of 1 FTE at Grade 11 or above is likely to be required for a period of approximately 12 months in order to fulfil these commitments. Further oversight will be necessary after that initial period in order to sustain several of the commitments and maintain appropriate oversight.

RECOMMENDATION

The appended MoU is understood to satisfy the strategic and policy imperatives set by the Minister and his Assistant Minister regarding the future of the Jersey Aircraft Registry. On that basis, the Minister is recommended to –

(a) Sign the appended Memorandum of Understanding with Ports of Jersey Limited as a precursor to finalising the transfer of responsibility for administering the office of the Registrar of Aircraft, in accordance with Article 2(3) and Article 3(2)(c) of the Aircraft Registration (Jersey) Law 2014, and

(b) instruct the Director to use best endeavours to finalise the operational transfer as soon as practicable.

Director, EDTSC

6th February 2019

[1] A related proposal that PoJL employ a person to serve as Registrar of Aircraft was subsequently withdrawn, the Minister having agreed to directly appoint an Interim Registrar of Aircraft pending a formal appointment in 2019. .