Aerodrome Licence Fee 2013

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 21 December 2012:

Decision Reference: MD-C-2012-0133
Decision Summary Title :	Aerodrome licence fee 2013		Date of Decision Summary:	21st December 2012
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 2013		Date of Written Report:	21st December 2012
Written Report Author:	International Relations		Written Report : Public or Exempt?	Public
Subject: Aerodrome licence fee 2013
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 Jersey aerodrome licence fee for 2013 of £169,000; with the agreement of the Minister for Treasury and Resources and the Minister for Economic Development, to credit to Jersey Airport the unspent balance of £30,000 from the 2012 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 of the two other Ministers. 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. The proposed fee of £169,000 represents a 5% reduction on the previous year’s costs to £178,000. In addition, due to lower than anticipated costs associated with the airspace redesign project, further savings of approximately £30,000 have been achieved in 2012. Accordingly, it is recommended that this unspent balance should be credited back to Jersey airport at the year end.
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 unspent balance from 2012 results in a credit in favour of Jersey Airport’s accounts.
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 in accordance with the Civil Aviation (Jersey) Law 2008; issue an invoice for £169,000 to Jersey Airport to request the agreed licence fee for 2013 is paid to the Chief Minister’s Department, on behalf of the Director of Civil Aviation; arrange for a credit of £30,000 to be made from the DCA 2012 budget in favour of Jersey airport.
Signature:		Position: Senator I.J. Gorst, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

Aerodrome Licence Fee 2013

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. Such consultation has taken place with the respective Ministers and they are content with the proposed fee for 2013 of £169,000 subject to the proviso below.

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 Chief Minister is recommended to –

determine an aerodrome licence fee for Jersey Airport in 2013 of £169,000, subject to the above proviso;
credit to Jersey Airport the unspent balance of £30,000 from the 2012 licence fee.

M Entwistle

11 December 2012