Civil Aviation Bill (HL Bill 36)

(3) The qualifying period is the last regulatory year ending on or before the day on
which the notice proposing the penalty is given under section 41(1) (“the notice
day”), except in the cases described in subsection (4).

(4) Those cases are—

(a) 5where P was not the operator of an area at the qualifying airport
throughout the last regulatory year that ends on or before the notice
day;

(b) where there is no regulatory year or the last regulatory year ended
more than 12 months before the notice day;

(c) 10where P has not provided the CAA with accounts prepared in
accordance with the licence for the last regulatory year that ends on or
before the notice day.

(5) In those cases—

(a) if P was the operator of an area at the qualifying airport on the notice
15day, the qualifying period is the year ending with the notice day (or, if
shorter, the period ending with the notice day during which P was the
operator of such an area), and

(b) if P was not the operator of such an area on the notice day, the
qualifying period is the year ending with the last day before the notice
20day on which P was the operator of such an area (or, if shorter, the
period ending with that day during which P was the operator of such
an area).

(6) P’s qualifying turnover for a qualifying period is to be taken to be the
qualifying turnover for that period as reported in accounts which P is required
25to prepare by a licence condition, unless regulations under subsection (7)
provide otherwise.

(7) The Secretary of State may by regulations—

(a) amend or otherwise modify the definition of qualifying turnover, and

(b) make provision about how a person’s qualifying turnover for a
30qualifying period is to be calculated.

(8) The regulations may, in particular—

(a) make provision about cases in which turnover is or is not to be treated
as qualifying turnover for a qualifying period,

(b) provide that a person’s qualifying turnover for a qualifying period is to
35be taken to be the qualifying turnover reported in accounts specified or
described in the regulations, and

(c) provide that a person’s qualifying turnover is to be calculated entirely
or partly using accounting rules specified or described in the
regulations.

(9) 40In this section “regulatory year” means a year for which P was required to
prepare accounts by a licence condition in respect of an area at the qualifying
airport.

45 Amount of penalty: daily amounts

(1) In relation to a penalty under section 39 or 40, a daily amount is an amount
45payable where the contravention in respect of which the penalty is imposed
continues after it is imposed.

(2) A penalty under section 39 may not consist of or include a daily amount unless
that contravention has been continuous since the end of the representation
period for the contravention notice in which the contravention was specified.

(3) A daily amount must not exceed 0.1% of the person’s qualifying turnover for
5the qualifying period.

(4) A daily amount is payable in respect of each day in a period specified by the
CAA in the notice under section 42 stating that it has imposed the penalty.

(5) A specified period during which daily amounts accumulate must be such
period as the CAA considers appropriate, subject to subsections (6) and (7).

(6) 10The period must begin after the day on which the CAA gives the notice under
section 42.

(7) The period must end before—

(a) the day on which the contravention specified in the notice under
section 42 ceases, or

(b) 15if more than one contravention is specified in that notice, the day on
which the last of those contraventions ceases.

(8) In this section “qualifying turnover” and “qualifying period” have the same
meaning as in section 44.

46 Use of powers under Competition Act 1998

(1) 20Before exercising a power listed in subsection (3), the CAA must consider
whether it would be more appropriate to proceed under the Competition Act
1998.

(2) The CAA must not exercise such a power to the extent that it considers that it
would be more appropriate to proceed under the Competition Act 1998.

(3) 25Those powers are—

(a) the power to give a contravention notice under section 31;

(b) the power to give an enforcement order under section 33;

(c) the powers to give and confirm an urgent enforcement order under
sections 35 and 36;

(d) 30the powers to impose penalties under sections 39 and 40.

47 Appeals against orders and penalties

Schedule 3 (appeals against orders and penalties) has effect.

Revocation of licence

48 Revocation of licence

(1) 35A licence may be revoked by the CAA by giving a notice to the holder of the
licence.

(2) The CAA may give a notice revoking a licence only in circumstances specified
in the licence in accordance with section 17.

(3) Before revoking a licence, the CAA must—

(a) notify the holder of the licence that it intends to revoke the licence,
giving its reasons, and

(b) give the holder of the licence an opportunity to make representations.

(4) The CAA must not give a notice revoking a licence before the end of the period
5of 30 days beginning with the day on which the CAA notifies the holder of the
licence in accordance with subsection (3), unless the holder of the licence agrees
otherwise.

(5) A notice revoking a licence takes effect at the end of the period specified in the
notice (subject to paragraph 1(3) of Schedule 4).

(6) 10The period specified in the notice must be a period of not less than 30 days
beginning with the day on which the notice is given.

(7) The CAA may extend the period specified in the notice at any time before the
end of that period by giving a notice to the holder of the licence.

(8) The CAA may only extend the period once and only by up to 30 days.

(9) 15The CAA may withdraw a notice revoking a licence at any time before it takes
effect by giving a further notice to the holder of the licence.

(10) A notice under subsection (1) or (9) must give the CAA’s reasons for revoking
the licence or withdrawing a notice revoking the licence (as appropriate).

(11) As soon as practicable after giving a notice under subsection (1), (7) or (9), the
20CAA must—

(a) publish the notice, and

(b) send a copy of the notice to such bodies representing airport operators
or providers of air transport services as the CAA considers appropriate.

49 Appeals against revocation of licence

25Schedule 4 (appeals against revocation of licence) has effect.

Obtaining information

50 Power to obtain information

(1) The CAA may by notice require a person to provide—

(a) information, or

(b) 30a document that is in the person’s custody or under the person’s
control.

(2) The CAA may give a notice under this section only in respect of information or
documents that it reasonably requires for the purpose of carrying out its
functions under this Chapter.

(3) 35The notice may require the information or document to be provided—

(a) at a time and place specified in the notice, and

(b) in a form and manner specified in the notice.

(4) The notice may not require a person to provide information or documents that
the person could not be compelled to provide in evidence in civil proceedings
40before the appropriate court.

(5) “The appropriate court” means—

(a) in relation to England and Wales and Northern Ireland, the High Court,
and

(b) in relation to Scotland, the Court of Session.

51 5Enforcement of information notice

(1) If a person fails to comply with a notice under section 50 without reasonable
excuse, the CAA may do either or both of the following—

(a) impose a penalty on the person;

(b) enforce the duty to comply with the notice in civil proceedings for an
10injunction or, in Scotland, for specific performance of a statutory duty
under section 45 of the Court of Session Act 1988.

(2) The amount of the penalty must be such amount as the CAA determines to
be—

(a) appropriate, and

(b) 15proportionate to the failure in respect of which it is imposed.

(3) A penalty may consist of either or both of the following—

(a) a fixed amount;

(b) an amount payable in respect of each day in a period specified by the
CAA (a “daily amount”).

(4) 20A fixed amount must not exceed £2,000,000.

(5) A daily amount must not exceed £100,000.

(6) A specified period during which daily amounts accumulate must be such
period as the CAA considers appropriate, subject to subsections (7) and (8).

(7) The period must begin after the day on which the CAA gives the notice under
25section 54(1) stating that it has imposed the penalty.

(8) The period must end before the day on which the person provides the
information or documents specified in the notice under section 50.

(9) The Secretary of State may by regulations replace the amount for the time being
specified in subsection (4) or (5).

52 30Penalty for providing false information, destroying documents etc

(1) The CAA may impose a penalty on a person if, in relevant circumstances, the
person provides information to the CAA that is false or misleading in a
material respect and—

(a) the person knows that the information is false or misleading, or

(b) 35the person is reckless as to whether the information is false or
misleading.

(2) A person provides information in relevant circumstances if the person does
so—

(a) in accordance with a licence condition,

(b) 40in response to a notice under section 50, or

(c) knowing that the CAA is likely to use the information for the purpose
of carrying out its functions under this Chapter.

(3) The CAA may impose a penalty on a person if the person intentionally alters,
suppresses or destroys a document that the person is required to produce by a
notice under section 50.

(4) The amount of a penalty imposed on a person under this section must be such
5amount as the CAA determines to be—

(a) appropriate, and

(b) proportionate to the action in respect of which it is imposed.

53 Procedure before imposing penalty

(1) Before imposing a penalty on a person under section 51 or 52 the CAA must—

(a) 10give the person a notice about the proposed penalty,

(b) publish the notice as soon as practicable,

(c) send a copy of the notice as soon as practicable to such bodies
representing airport operators or providers of air transport services as
the CAA considers appropriate, and

(d) 15consider any representations made about the proposed penalty in the
period specified in the notice (and not withdrawn).

(2) The notice under subsection (1) must—

(a) state that the CAA proposes to impose a penalty,

(b) state the proposed amount of the penalty, and

(c) 20give the CAA’s reasons for imposing the penalty.

(3) In the case of a penalty under section 51 calculated entirely or partly by
reference to a daily amount, the notice under subsection (1) must specify—

(a) the day on which daily amounts would begin to accumulate, and

(b) the day on which, or the circumstances in which, they would cease to
25accumulate.

(4) The period specified in the notice under subsection (1) for making
representations must be a period of not less than 21 days beginning with the
day on which the notice is given to the person.

(5) Before varying the proposed amount of the penalty, the CAA must—

(a) 30give the person on whom the penalty is to be imposed a notice about
the proposed variation,

(b) publish the notice as soon as practicable,

(c) send a copy of the notice as soon as practicable to such bodies
representing airport operators or providers of air transport services as
35the CAA considers appropriate, and

(d) consider any representations made about the proposed variation in the
period specified in the notice (and not withdrawn).

(6) In the case of a penalty calculated entirely or partly by reference to a daily
amount, the reference in subsection (5) to varying the proposed amount of the
40penalty includes varying—

(a) the day on which daily amounts would begin to accumulate, and

(b) the day on which, or circumstances in which, they would cease to
accumulate.

(7) The notice under subsection (5) must—

(a) 45specify the proposed variation, and

(b) give the CAA’s reasons for the proposed variation.

(8) The period specified in the notice under subsection (5) for making
representations must be a period of not less than 21 days beginning with the
day on which the notice is given to the person.

(9) 5The CAA may withdraw a notice under subsection (1) or (5) at any time by
giving notice to the person on whom it proposed to impose the penalty.

(10) As soon as practicable after giving a notice under subsection (9), the CAA
must—

(a) publish the notice, and

(b) 10send a copy of the notice to such bodies representing airport operators
or providers of air transport services as the CAA considers appropriate.

54 Procedure after imposing penalty

(1) As soon as practicable after imposing a penalty on a person under section 51 or
52, the CAA must—

(a) 15give a notice to the person on whom the penalty is imposed,

(b) publish the notice, and

(c) send a copy of the notice to such bodies representing airport operators
or providers of air transport services as the CAA considers appropriate.

(2) The notice must—

(a) 20state that the CAA has imposed the penalty,

(b) state the amount of the penalty,

(c) give the CAA’s reasons for imposing the penalty, and

(d) specify a reasonable period within which the penalty must be paid or
reasonable periods within which different portions of the penalty must
25be paid.

(3) In the case of a penalty under section 51 calculated entirely or partly by
reference to a daily amount, the notice must specify—

(a) the day on which daily amounts begin to accumulate, and

(b) the day on which, or the circumstances in which, they cease to
30accumulate.

(4) As soon as practicable after daily amounts cease to accumulate, the CAA
must—

(a) give a notice to the person on whom the penalty was imposed
confirming the day on which they ceased to accumulate,

(b) 35publish the notice, and

(c) send a copy of the notice to such bodies representing airport operators
or providers of air transport services as the CAA considers appropriate.

55 Appeals against penalties

Schedule 5 (appeals against penalties: information) has effect.

Penalties

56 Imposing penalties

(1) The CAA may not impose a penalty on a person under section 39, 40 or 51 for
an act or omission if it has imposed a penalty on the person under one of those
5sections in respect of the same act or omission.

(2) Subsection (1) does not prevent the CAA imposing more than one penalty on
a person in respect of acts or omissions that take place at different times or over
different periods.

57 Recovering penalties

(1) 10This section applies if all or part of a penalty imposed on a person under this
Chapter is not paid within the period specified in the notice given in respect of
the penalty under—

(a) section 42, or

(b) section 54.

(2) 15The unpaid balance carries interest from time to time at the rate for the time
being specified in section 17 of the Judgments Act 1838.

(3) The CAA may recover from the person as a debt due to the CAA—

(a) the unpaid balance, and

(b) any interest on the penalty that has not been paid.

(4) 20Any sums received by the CAA by way of a penalty or interest under this
Chapter must be paid into the Consolidated Fund.

58 Statement of policy on penalties

(1) The CAA must prepare and publish a statement of its policy with respect to—

(a) imposing penalties under this Chapter, and

(b) 25determining their amount.

(2) The CAA may revise the statement of policy and, if it does so, it must publish
the revised statement.

(3) When imposing a penalty under this Chapter, or determining the amount of
such a penalty, the CAA must have regard to the last statement of policy
30published before the act or omission in respect of which the penalty is to be
imposed.

(4) When preparing or revising a statement of policy, the CAA must consult such
persons as it considers appropriate.

Disclosing information

59 35Disclosing information

(1) Nothing in this Chapter requires the CAA to publish or otherwise disclose any
information which it is satisfied is—

(a) commercial information, the disclosure of which would, or might in the
CAA’s opinion, significantly harm the legitimate business interests of
an undertaking to which it relates, or

(b) information relating to the private affairs of an individual, the
5disclosure of which would, or might in the CAA’s opinion,
significantly harm the individual’s interests.

(2) Schedule 6 (restrictions on disclosing information) has effect.

CHAPTER 2 Competition

60 Functions under Part 4 of Enterprise Act 2002

(1) 10The functions of the Office of Fair Trading (“the OFT”) specified in subsection
(2) are to be concurrent functions of the CAA and the OFT.

(2) Those functions are the OFT’s functions under Part 4 of the Enterprise Act 2002
(market investigations) so far as they relate to the provision of airport
operation services, other than functions under sections 166 and 171.

(3) 15References to the OFT in the following are to be read as including a reference
to the CAA—

(a) Part 4 of the Enterprise Act 2002, other than sections 166 and 171, and

(b) provisions of that Act applied by that Part.

(4) But subsection (3) applies—

(a) 20only so far as it is consequential on subsections (1) and (2), and

(b) only if the context does not otherwise require.

61 Enterprise Act 2002: supplementary

(1) Before the Office of Fair Trading (“the OFT”) or the CAA first carries out
functions specified in section 60(2) (“relevant 2002 Act functions”) in relation
25to a matter it must consult the other.

(2) If the OFT or the CAA has carried out relevant 2002 Act functions in relation to
a matter, the other must not carry out those functions in relation to that matter.

(3) Subsections (4) to (6) apply if, in carrying out relevant 2002 Act functions, the
CAA makes a reference to the Competition Commission.

(4) 30The CAA must give the Competition Commission any information in the
CAA’s possession or control—

(a) which is requested by the Commission for the purpose of the reference,
or

(b) which the CAA considers it appropriate to give to the Commission for
35that purpose.

(5) The CAA must give the Competition Commission any other assistance
requested by the Commission for the purpose of the reference which it is
within the CAA’s power to give.

(6) In carrying out its investigation on the reference the Competition Commission
40must take account of any information given to it under subsection (4).

(7) If a question arises as to whether a relevant 2002 Act function must or may be
carried out by the CAA in relation to a particular case, the question must be
referred to and determined by the Secretary of State.

(8) No objection may be taken to anything done by or in relation to the CAA under
5Part 4 of the Enterprise Act 2002, other than section 166 or 171, on the ground
that it should have been done by or in relation to the OFT.

(9) The CAA may, when carrying out relevant 2002 Act functions, have regard to
any matter in respect of which a duty is imposed by section 1(1) to (3) of this
Act if it is a matter to which the OFT may have regard when carrying out
10relevant 2002 Act functions.

(10) Section 4 of the Civil Aviation Act 1982 (CAA’s general objectives) does not
apply in relation to the carrying out by the CAA of relevant 2002 Act functions.

(11) In section 136(7) of the Enterprise Act 2002 (investigations and reports on
market investigation references: relevant sectoral enactments), at the end of
15paragraph (g) insert “or section 60 of the Civil Aviation Act 2012;”.

62 Functions under Competition Act 1998

(1) The functions of the Office of Fair Trading (“the OFT”) specified in subsection
(2) are to be concurrent functions of the CAA and the OFT.

(2) Those functions are the OFT’s functions under Part 1 of the Competition Act
201998 (competition) so far as they relate to anything which—

(a) is mentioned in subsection (3)(a) to (d), and

(b) relates to the provision of airport operation services,

other than functions under sections 31D(1) to (6), 38(1) to (6) and 51.

(3) Those things are—

(a) 25agreements, decisions or concerted practices of the kind mentioned in
section 2(1) of that Act,

(b) conduct of the kind mentioned in section 18(1) of that Act,

(c) agreements, decisions or concerted practices of the kind mentioned in
Article 101 of the Treaty on the Functioning of the European Union, or

(d) 30conduct which amounts to abuse of the kind mentioned in Article 102
of that Treaty.

(4) References to the OFT in Part 1 of the Competition Act 1998, other than in
sections 31D(1) to (6), 38(1) to (6) and 51, are to be read as including a reference
to the CAA.

(5) 35But subsection (4) applies—

(a) only so far as it is consequential on subsections (1) and (2), and

(b) only if the context does not otherwise require.

63 Competition Act 1998: supplementary

(1) No objection may be taken to anything done by or in relation to the CAA under
40a provision of Part 1 of the Competition Act 1998, other than sections 31D(1) to
(6), 38(1) to (6) and 51, on the ground that it should have been done by or in
relation to the Office of Fair Trading.

(2) The CAA may, when carrying out relevant 1998 Act functions, have regard to
any matter in respect of which a duty is imposed by section 1(1) to (3) of this
Act if it is a matter to which the Office of Fair Trading may have regard when
carrying out relevant 1998 Act functions.

(3) 5Section 4 of the Civil Aviation Act 1982 (CAA’s general objectives) does not
apply in relation to the carrying out by the CAA of relevant 1998 Act functions.

(4) In this section “relevant 1998 Act functions” means functions specified in
section 62(2).

64 Review etc of airport operation services

(1) 10The CAA must, so far as it appears to it practicable to do so—

(a) keep under review the provision of airport operation services in the
United Kingdom and elsewhere, and

(b) collect information about the provision of such services in the United
Kingdom and elsewhere,

15with a view to facilitating the carrying out of its functions under this Chapter.

(2) The CAA must provide information, advice and assistance to the Secretary of
State and the Office of Fair Trading (“the OFT”) regarding any matter in respect
of which the CAA has a function under this Chapter if—

(a) it thinks it expedient to do so, or

(b) 20it is asked by the Secretary of State or the OFT to do so.

(3) Subsection (2)(b) applies only so far as it appears to the CAA practicable for the
CAA to provide the information, advice or assistance requested.

(4) The CAA may—

(a) prepare reports relating to competition in markets for airport operation
25services, and

(b) arrange for such reports to be published.

(5) The CAA may exclude from publication under subsection (4)(b) any
information which it is satisfied is—

(a) commercial information, the disclosure of which would, or might in the
30CAA’s opinion, significantly harm the legitimate business interests of
an undertaking to which it relates, or

(b) information relating to the private affairs of an individual, the
disclosure of which would, or might in the CAA’s opinion,
significantly harm the individual’s interests.

(6) 35For the purposes of carrying out its functions under this section the CAA may
carry out, commission or provide financial or other support for research.

65 Power to modify CAA’s competition powers

(1) The Secretary of State may by regulations modify sections 60(2) and 62(2) by
providing that the functions of the Office of Fair Trading mentioned in those
40provisions—

(a) do not include functions relating to the provision of particular airport
operation services, or

(b) include functions relating to the provision of particular services at an
airport that are not airport operation services.