Aviation: Regulatory Burden

Lord Rotherwick Excerpts

Tuesday 21st January 2014 Grand Committee

Asked by

[Lord Rotherwick]

To ask Her Majesty’s Government what steps they intend to take to reduce regulatory burdens relating to general aviation.

[Lord Rotherwick (Con)]

My Lords, I am most grateful to those noble Lords taking part in this debate today and for this timely opportunity to draw to your attention some important developments in UK general aviation. GA involves far more aircraft and perhaps twice as many flights per annum as does commercial air transport. These are small aircraft in the main but there are significant gains in terms of economic and social benefit. If we effectively encourage the GA community there could be far more gains. An appropriate regulatory environment is fundamental to this.

Last year, a particularly successful effort was made in the aviation red tape challenge, the RTC. For reinvigorating and driving through this endeavour, I offer my thanks and congratulations to the work of my right honourable friend the Minister without Portfolio, Grant Shapps, and the chief executive at the UK Civil Aviation Authority, Andrew Haines.

I am a private pilot and have fully declared my interests in aviation. The General Aviation Alliance, of which I am vice-president, is an important grouping of GA voluntary organisations. It represents, particularly, sports recreation aviation, which includes parachuting, hang-gliding, gliding, ballooning, plus sports and recreation flying in light and microlight aircraft and helicopters. The GA Alliance represents some 72,000 members, including the operators of around 60% of the UK’s registered aircraft fleet, and perhaps 70% of the total fleet.

The GA Alliance engages with the Government, the CAA and other bodies on regulatory matters concerning aviation. Last year there was a strong response to the aviation RTC, identifying many instances of unnecessary restrictions of gold-plated regulations. The CAA, as the UK’s national aviation regulator, had the task of processing this input. To give it credit, its response was generally strong and well considered. It consisted of a document entitled CAP 1123, describing a strategy for improvement. One key change is the setting up of a GA unit within the CAA, recognising the interests of that community and how different it is from the airline focus. I welcome this unit. The GA Alliance now looks forward to an early dialogue and consultation on the promised full reform programme for the sports and recreation sector.

The CAA’s response highlights two guiding principles within a more proportionate, risk-based regulatory regime. I welcome these principles and urge the CAA to hold firmly to them, although I wish to highlight the need to fully evaluate the consequences in consultations with stakeholders.

The CAA’s first principle is to deregulate wherever possible. This contains three aspirations which I strongly support. First, the removal of CAA oversight rule making in areas where the UK has no specific EU obligation. Secondly, identification of areas that could be removed from EASA oversight, primarily those that are nationally based and where previous self-regulation regimes had good safety records—for example, gliding and ballooning. Finally, the CAA wishes to take an evidence and risk-based approach proportionate to the risk appetite of participants. An informed consent concept will move the onus on to participants to demonstrate their awareness of the risks involved in GA activities. To be effective this initiative must reduce opportunities for speculative litigation. At present aviation associations are the targets of litigants seeking damages for unfortunate events that were outside their control.

The CAA’s second principle will maximise delegation of regulatory activities,

“to the extent that industry appetite and competence and resilience are the only constraints”.

The CAA would necessarily retain overall accountability but responsibility for delivery of regulation would be delegated to so-called qualified entities. These might be commercial or they could indeed be the existing GA associations. For example, the Light Aircraft Association—the LAA—of which I am a director, as is my noble friend Lord Goschen, holds an approval to regulate the airworthiness of several thousand aircraft on behalf of the CAA. Interestingly, the CAA charges this association for the privilege of carrying out this work.

I want to see delegation possibilities considered across the entire sports and recreation sector, ranging from CAA oversight through delegated accountability to full delegation where a competent body is available. The GAA’s member associations are mature national bodies with effective governance, run on behalf of their members. They are not commercial organisations and will be concerned by the entry of commercial qualified entries into their sector. Such competitive positioning would inevitably seek to cherry pick the best business opportunities while leaving the less lucrative activities to the associations. This would not promote the social or economic benefits that I referred to. In a worst case scenario, capable voluntary organisations might be damaged to the point of liquidation.

I have expanded on the two principles at some length but CAP 1123 also identifies other general areas raised by the RTC. I found the general tone of the CAA and the Department for Transport helpful and flexible, but I also noted how responses sometimes only reiterate the current approach. In two key areas, further change is needed. First, CAA fees and charges are annually brought before its influential Finance Advisory Committee, which has long been dominated by commercial interests. CAP 1123 merely reiterates this status quo without an apparent intent to promote fair stakeholder representation. Better pre-discussion with GA and a wider consideration of CAA costs and their proportionate allocation are essential.

Secondly, I must mention airspace, the allocation of which is a key CAA function. The ever expanding UK controlled airspace is a major concern because it increasingly excludes light aircraft from large areas of our country. Sadly, there is not the time today to discuss the details of this complex issue.

Finally, I should mention implementation. The CAA’s response is strong on announcement and intent but, for real success, it also needs outstanding implementation, including consultation with stakeholders. Currently there is a mechanism—the challenge panel—involving GA experts selected to help the Department for Transport and the CAA to move forward. Timescales for this process are short, and I am concerned that it may run out of time before enough has been achieved.

All parties need clarity on the likely “steady state” shape of regulation in 12 to 18 months’ time. This is essential, as much work will be required from organisations using volunteer resources. Partnership mechanisms must now be established to achieve effective and sustainable change. A dynamic and expanding GA sector can nurture new opportunities and jobs across the country, from a reinvigorated flight training industry, through aircraft manufacturing, to the many professions and industries needed to support thousands of light aircraft.

Overregulation has been one of the main problems faced by general aviation in the UK. It is good that this is now being vigorously addressed. This is a once-in-a-lifetime opportunity; we cannot allow it to fail.