Select Committee on Transport Minutes of Evidence


Examination of Witnesses (Questions 180-195)

5 MAY 2004

SIR ROY MCNULTY, MR JOHN ARSCOTT, AND MR ALEX PLANT

  Q180 Chairman: Do not be coy! It will become public. Would you be of the opinion that public service obligations should be written in, or would you be of the opinion that trading in slots?

  Mr Plant: I think my opinion would be that public service obligations can be a necessary step in certain circumstances, but you need to use them quite carefully otherwise you may have a proliferation of public service obligations which can have some hidden costs on the efficient operation of airports. So yes, in certain circumstances.

  Q181 Chairman: What is the CAA view on the introduction of the trans-Atlantic common aviation area?

  Mr Plant: It is something we would support strongly.

  Q182 Chairman: And would it cover the whole of the EU and the USA?

  Mr Plant: Yes, that would be the aim. It would be a single market, such as we have in Europe, but bringing the US into that single market.

  Q183 Chairman: Since decisions can be taken by a qualified majority vote, how would you protect the interests of the British?

  Mr Plant: There is a certain legal complexity to any agreement because it would be a mixed agreement. Some elements of it are the Commission's competence and some elements remain within national competence, as I understand it.

  Q184 Chairman: Given that life is never simple, how can you protect the interests of the British people, the consumer and the British airlines?

  Mr Plant: Absolutely. Firstly, the best way of ensuring that the United Kingdom's interests as a whole are protected is to engage vigorously with the Commission through the Special Committee, which we attend along with our colleagues from the Department of Transport, and recognising the fact that the United Kingdom has 40% of the total EU/US market, I think the UK has a strong voice in those discussions.

  Q185 Chairman: We did control the whole of the fishing, but it did not seem to produce very good results.

  Mr Plant: I cannot comment on the success or otherwise of the fishing scenario.

  Q186 Chairman: So you are playing an active role, either through the Safety Regulation Group or the Directorate for Airspace Policy in developing a Single European Sky air traffic control, are you?

  Sir Roy McNulty: Very much so, yes.

  Q187 Chairman: How many people do you have working on that?

  Mr Arscott: Not continually but about 20 or 25.

  Q188 Chairman: What percentage of the work at CAA these days is directly connected with European Union issues?

  Mr Arscott: In the Directorate of Airspace Policy I would have thought about 20%.

  Q189 Chairman: Finally, if the CAA accept that aircraft have an internationally accepted certification standard, are going to insist on the special conditions to meet British civil airworthiness requirements?

  Sir Roy McNulty: Where we think there is a valid case to be made, we will put to the European Aviation Safety Agency that they should encompass in their regulations some of the special requirements we have. We understand that a number of other nations, including the French and the Germans, have put forward similar special requirements and the European Aviation Safety Agency will consider those. So that if we think there is something needed to maintain our safety standards, we will seek to get the European Aviation Safety Agency to adopt that.

  Q190 Chairman: What happens if they say "No"?

  Sir Roy McNulty: I think if we have made a properly reasoned technical case they will accept it. That so far is the indication from the cases they have so far reviewed; they will accept it.

  Q191 Chairman: You have a Greek belief in logic.

  Sir Roy McNulty: We have to get by somehow, Madam Chairman.

  Q192 Chairman: I am always interested in a man who has been as long in public service as you have, who still retains his illusions! Can I ask you this, finally? We are aware of at least three different incidents, and I will not name them now, where commercial arrangements that would have been in place already had it simply been a matter of British control are being held up by the fact that the Commission has given no decisions. Are you aware of particular commercial instances where British operators are being disadvantaged by the fact that they are awaiting decisions at European level?

  Mr Plant: One that springs to mind is the Hong Kong deal, on which I was a member of the negotiating team, and we negotiated a provisional deal which was held in abeyance until the Commission had ratified it, but that has not yet come to pass.

  Q193 Chairman: There are at least two others. Is there any evidence of any cost benefit analysis of any of these absurd changes—these fantastically unnecessary changes?

  Mr Plant: I have not seen a cost benefit analysis, no.

  Q194 Chairman: Is there anyone either amongst the operators or in the industry who is ever going to do a calculation of what these changes are costing?

  Sir Roy McNulty: I have not yet seen anybody addressing their mind to that.

  Q195 Chairman: It is nice to be rich! Thank you, gentlemen. You have been very helpful and we are, as always, extraordinarily grateful and delighted to see you.

  Sir Roy McNulty: It is, as ever, our pleasure, Chairman.





 
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