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Section 4 : Other Reporting Requirements

4.1: PURCHASER-PROVIDER ARRANGEMENTS

CASA will be developing a purchaser provider arrangement with DOTARS to cover the provision of transport safety assistance to Indonesia. An agreement between the parties will be developed to define responsibilities and control arrangements.

Resourcing

Funds for the project are to be appropriated to DOTARS with $2.2m to be provided to CASA in 2007-08.

4.2: COST RECOVERY ARRANGEMENTS

Cost recovery for regulatory services forms part of CASA's LTFS that was approved by the Government in the 2005-06 Budget process. CASA is implementing its regulatory services cost recovery in three phases. Phase 1 commenced on 1 January 2006 with a targeted cost recovery amount of $10.5m in 2006-07. Phase 2 commences on 1 July 2007 with a target cost recovery amount of $15.0m in 2007-08 and Phase 3 commences on 1 July 2008 with a target cost recovery amount of $20.0m in 2008-09.

In November 2005, CASA became an issuing body for ASIC and AVID cards on a cost recovery basis. The costs associated with issue and renewal of these cards increases CASA's cost recovery amounts. The price charged for the cards is directly related to the costs incurred.

A new cost recovery arrangement is proposed for airspace regulation. The Airspace Act 2007 provides for the airspace regulation function to be transferred from Airservices Australia to CASA on 1 July 2007 and it is intended that initially, the cost will be recovered from Airservices Australia.

The following table shows expected revenue from cost recovery.

  2006-07 2007-08 2008-09 2009-10
LTFS Regulatory service fees $10.5m $15.0m $20.0m $20.0m
ASIC/AVID issue and renewal $1.5m $4.3m $2.8m $5.4m
Airspace regulation - $2.6m $2.7m $2.7m
Total $12.0m $21.9m $25.5m $28.1m

Summary of Cost Recovery Impact Statements (CRIS)

Regulatory service fees - Phase 2 Cost Recovery

A CRIS was prepared in 2005 before the commencement of Phase 1 Cost Recovery. The current CRIS relates to the implementation of Phase 2 in 2007-08 and includes ASIC/AVID issue and renewal.

Under Phase 1 cost recovery, fees apply to more than 180 regulatory services including issuing of licences and ratings, examinations, aircraft registrations, certificates, permits, exemptions, approvals and authorities. Fees are either a fixed amount per service or are based on one of two hourly rates - $130 per hour or $150 per hour. In Phase 2, fees remain as fixed fees or an hourly rate, now one of four hourly rates - $100, $130, $160 or $190 per hour. The two top rates include the cost of domestic travel which had previously been charged separately. While many fees remain unchanged, some have increased while others have decreased and a number of new fees have been introduced. New fees introduced include: appointment of a person as an authorised person for the Civil Aviation Orders ($160/$190 per hour); permission for a foreign registered aircraft to operate on regulated domestic flights without an aircraft operator certificate ($160 / $190 per hour); issue of a student flight engineer licence ($50); and renewal of an ASIC ($186).

CASA collects fees for regulatory services in accordance with the Civil Aviation (Fees) Regulations 1995 and these regulations are currently being amended to reflect the changes associated with the commencement of Phase 2.

Consultation was conducted with the aviation industry in setting the fee schedule for 1 January 2006 and more extensive consultation has been undertaken in setting the Phase 2 fee schedule to commence on 1 July 2007. It is intended that further consultation will be conducted prior to the implementation of Phase 3 cost recovery on 1 July 2008.

Regulatory services fees will be subject to review over the next two years as part of the implementation of the Long Term Funding Strategy. Subsequent reviews will be conducted in accordance with the Australian Government Cost Recovery Guidelines.

Office of Airspace Regulation

A CRIS has been prepared in connection with charging for services to be provided by the Office of Airspace Regulation. The Airspace Act 2007 provides for regulations to be made to allow CASA to charge for airspace regulation functions. However it is intended that initially, the cost of the function will be recovered from Airservices Australia under a letter of agreement. The agreement allows two types of costs to be recovered. Costs for routine airspace functions are fixed at $1.4m yearly, with annual indexation based on the Consumer Price Index. Costs associated with major airspace reform functions are capped at $1.2m but may be increased in accordance with an agreed scope of work.

The proposed cost recovery from Airservices is consistent with Australian Government Cost Recovery Guidelines, as full costs are being recovered.

Aviation industry consultation was not required for the recovery of costs from Airservices. Any future decision by CASA to impose charges directly on the aviation industry for airspace regulation will require further consultation with stakeholders in accordance with Government cost recovery policy.

The Airspace Act 2007 provides for a review of the Australian Airspace Policy Statement to be performed at least once every three years. It is likely that charges for airspace regulation will be considered in such reviews. In addition CASA will review charges for airspace regulation in accordance with the Australian Government Cost Recovery Guidelines.

4.3: AUSTRALIAN GOVERNMENT INDIGENOUS EXPENDITURE (AGIE)

Table 4.1: Australian Government Indigenous Expenditure

CASA has no Australian Government Indigenous Expenditure.

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Budget 2006-07