Memorandum by the Federation of the Electronics
Industry (PPP 02)
THE PROPOSED PUBLIC-PRIVATE PARTNERSHIP FOR
NATS
INTRODUCTION
The Federation of the Electronics Industry is
the leading UK Trade Association representing the Information
Technology, Telecommunications, Aerospace and Naval Electronics
and Components Industries. The Federation represents some 300
companies ranging from world leaders through medium to small enterprises,
including service as well as manufacturing operations. We welcome
this opportunity to submit evidence to the Sub-committee on the
proposed Public-Private Partnership for NATS.
We support the Government's decision to separate
NATS from the CAA. The separation will allow the CAA to concentrate
on tough, effective regulation and the new NATS to attract the
investment it needs to remain at the forefront of technological
development necessary to deal with the increasing volume of air
traffic. We are also of the view that the Government has endeavoured
to construct a partnership scheme that is in the interests of
the NATS staff. It protects their pension entitlements and through
shareholding gives them incentive to make the enterprise a success.
Our remarks are directed to the question "what implications
the public-private partnership as currently proposed will have
for safety standards . . .".
COMMENTS
The aviation transport sector has a first class
safety record, due in great part to the highly respected safety
regulation and enforcement regime currently in place. To make
changes would, in our view, be counter productive at a time of
increasing pressure on the whole aviation community.
Safety regulations are formulated and enacted
under the auspices of the Civil Aviation Authority established
by Act of Parliament and are rightly prescriptive in comparison
with other sectors. They are also highly specialised and established
through close consultation with industry and the international
aviation community. Each transport sector has developed in a way
that best suits its particular circumstances. The aviation sector
in particular is highly international in its nature and there
is a need to ensure conformity of approach with its international
collaborators.
We do not believe there is scope for increasing
efficiency by bringing all of the regulatory activities under
a single authority. To do so would create an increased level of
bureaucracy, a dilution of specialist attention to air safety
issues and an increase in costs. However, across transport sectors
there are areas of commonality and we would encourage the formation
of a National cross modal co-ordinating body tasked with ensuring
effective transfer of best-practice techniques between the transport
sectors.
The proposal to establish a European Aviation
Safety Authority needs to be taken into account. We believe that
the formation of this Authority is vital to the progress of industrial
development and enhanced safety standards. The Authority should
be a legal entity with both regulatory and enforcement power which
subsumes the National agencies. The excellent reputation of the
CAA puts it in a strong position to influence the formation of
the European body, a position which would be jeopardised if it
were subsumed into a single UK trans-sector body.
CONCLUSION
We support the main thrust of the Government's
initiative to privatise NATS. NATS has a skill base and experience
which is not available in any other Government Department or body
and we welcome its retention as a single entity. In the event
of it becoming a private company, it will quickly need to attract
to itself commercial, project and contract management skills.
The need to accommodate increasing capacity demands encompasses
airport services and the Government needs to pursue an active
role in ensuring consistant and co-ordinated measures to achieve
the necessary improvements.
The Federation wishes to thank the Sub-committee
for this opportunity to express our Members' views. It is hoped
that these comments are seen as constructive and will be helpful
in the Sub-committee's deliberations.
A. Parish
Director General
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