Review of CAA fees, levies and charges 2020 PUBLIC AND SECTOR M - PowerPoint PPT Presentation

Review of CAA fees, levies and charges 2020 PUBLIC AND SECTOR M EETINGS AUCKLAND | QUEENSTOWN | CHRISTCHURCH | P ALM ERSTON NORTH | NELSON | WELLINGTON John Kay | Deputy Chief Executive

Ground to cover • Background to the 2020 pricing review • The scope of this particular review • An update on the CAA’s finances • A general summary of the proposed changes • An explanation of the agriculture levy price rise • The next steps in the review process • Time for questions from the floor REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

Background to this review • Ever y t hree years w e review our fees, levies and charges t o ensure t he Aut horit y cont inues t o have t he funding it needs t o responsibly regulat e New Zealand aviat ion • For m any years w e have been using an out dat ed t echnology plat form , ASM S, w hich is long past it s shelf life, hard t o m aint ain, and has no int erface for part icipant s • A new t echnology and int elligence plat form is essent ial t o ensure t he safet y of t he New Zealand aviat ion sect or in com ing years – but t his is a significant invest m ent REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

In scope for this review • The current pricing levels of CAA levies, fees and charges, w hich includes us allow ing for t he replacem ent of t he CAA’s obsolet e t echnology plat form • Tw o specific policy issues relat ing t o RPAS operat ions and t he Agricult ural Operat ions Safet y Levy • A review of Airport Ident it y Card charges and operat ing cost s • A review of Regulat ed Air Cargo Agent securit y vet t ing charges REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

Out of scope • The funding fram ew ork – t he policy basis on w hich levies are set • The funding t he CAA receives from t he Governm ent (t hrough t he Budget ) • Reassessing t he funding m ix bet w een airlines and general aviat ion • The pricing of t he passenger securit y levy, w hich funds Avsec REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

Our projected finances If we carry on with our current pricing levels for our fees, levies and charges, we would be facing a deficit of $7.8 million over the next three years, hampering our regulatory work Uncertain passenger numbers for the next three years also mean we need to be prepared for lower passenger levy revenue REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

Summary of proposals • 5.3% increase on all levies, fees and charges ot her t han t he Agricult ural Operat ors Safet y Levy (AOSL) • 80% rise in t he AOSL t o cover t he cost s of t he new Hazardous Subst ances and New Organism s (HSNO) responsibilit ies • No change t o be m ade t o t he basis for t he AOSL • Increase in price of t em porary and decrease in perm anent AIC cards • Decrease in price for RACA securit y checks REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

Changes to the Agriculture Operations Safety Levy • The Gover nm ent ’ s f unding of our enf or cem ent of t he Hazar dous Subst ances and New Or ganism s Act (HSNO) has ended • Our enf or cem ent act ivit ies sur r ounding ‘ t he dischar ge of hazar dous subst ances f r om an air cr af t ’ r elat es pr edom inant ly t o agr icult ur al oper at or s • In pr act ice t his m eans w e invest igat e incident s such as inst ances of ‘ spr ay dr if t ’ or t he m isapplicat ion of pest cont r ol pr oduct s • W e believe it is appr opr iat e t o appor t ion t he m ajor it y of t hese cost s t o t he agr icult ur al sect or t hr ough t he Agr icult ur al Oper at ions Saf et y Levy (AOSL) • W e have consider ed changing t he basis of t he levy (cur r ent ly levied on t onnes applied) but have pr oposed keeping t he st at us quo • An 80% r ise in t he AOSL w ill cover m ost of t he cost s of t he CAA’ s ongoing HSNO m onit or ing and enf or cem ent r esponsibilit ies REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

Next steps • Consult at ion closes on 14 February 2020 – please subm it your feedback via t he CAA w ebsit e or by em ailing consult at ion@caa.govt .nz • The pricing review t eam w ill consider and analyse all feedback received • This could result in som e of t he current proposals changing • Furt her changes in passenger num bers m ight affect t hese proposals • Cabinet t hen needs t o approve our final recom m endat ions • Im plem ent at ion of any new rat es is t arget ed for 1 July 2020 REVIEW OF CAA FEES, LEVIES AND CHARGES 2020

Questions?