Documents considered by the Committee on 9 December 2009 - European Scrutiny Committee Contents


5 Aviation security charges

(30645)

9864/09

+ ADDs 1-2

COM(09) 217

Draft Directive on aviation security charges

Legal baseArticle 80(02) EC; co-decision; QMV
DepartmentTransport
Basis of considerationMinister's letter of 7 December 2009
Previous Committee ReportHC 19-xxi (2008-09), chapter 2 (24 June 2009), HC 19-xxv (2008-09), chapter 4 (21 July 2009) and HC 19-xxvi (2008-09), chapter 4 (10 September 2009)
To be discussed in Council17-18 December 2009
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

5.1 Regulation (EC) No 300/2008 updated legislation establishing common standards for civil aviation security and creating a system of inspections.[18] During the conciliation procedure before adoption of the Regulation the European Parliament requested that the Commission report on the principles of financing the costs of civil aviation security measures, and on adoption of the Regulation the Commission undertook to do this. In February 2009 the Commission published such a Report and indicated that it would continue preparing a legislative proposal based on the assessment in it. [19] In March 2009 Directive (EC) No 12/2009 on airport charges in general (the Airport Charges Directive) was adopted. However the question of security charges was not addressed during the negotiation of this Directive, as the findings of the Commission's Report were still awaited.[20]

5.2 In May 2009 the Commission presented this draft Directive on aviation security charges which would require:

  • airport managing bodies to provide each user annually with information on the components serving as a basis for determining the level of all security charges levied at an airport;
  • Member States to undertake impact assessments for all new and current measures that are more stringent (referred to as More Stringent Measures) than the standard Community-wide requirements;
  • Member States to ensure that security charges are used exclusively to meet security costs; and
  • Member States to nominate or establish an independent body to ensure the correct application of these measures.

5.3 The Airport Charges Directive sets out principles for how airports should set airport charges and their relationship with airports. It covers many of the same areas mentioned in the draft Directive, such as non-discrimination, consultation requirements, providing information about underlying costs and how charges are set and a right of appeal to a regulator. However, the draft Directive differs from the Airport Charges Directive in a number of ways, including that:

  • the Airport Charges Directive only covers airports with an annual traffic of five million or more passenger movements, but there is no size threshold in this proposal; and
  • the Airport Charges Directive allows multi-annual agreements whereas this proposal requires annual agreements.

5.4 When we considered this document in June 2009 we noted that:

  • the Government welcomed the broad thrust of the Commission's Report on aviation security charges;
  • it was still considering the policy and operational implications of the draft Directive, including whether it conformed to the subsidiarity principle;
  • however, it already had concerns about some of the provisions in the draft Directive;
  • it would be seeking clarification from the Commission on the various issues and the views of stakeholders to inform its negotiating position; and
  • it was still analysing the Commission's impact assessment and considering the financial implications for the UK.

5.5 We concluded that although the matter of aviation security charges clearly had to be addressed, this draft Directive presented some problems. So we asked, before considering it further, to hear from the Government about developments on:

  • its view of subsidiarity;
  • More Stringent Measures;
  • the differences between the Airport Charges Directive and this proposal;
  • the potential impact on small airports;
  • separately identified security charges;
  • the Government's analysis of the Commission's impact assessment and of the financial implications of the proposal; and
  • its consultations.

5.6 When we considered the matter again, in July 2009, we heard, in an interim report, that

  • at the June 2009 Transport Council, during discussion following a Commission presentation on the draft Directive, the Government outlined its wishes for the proposal — the charging elements of the proposed Directive to match those in the Airport Charges Directive as closely as possible, certainty that Member States' ability to swiftly impose More Stringent Measures when the situation demanded it was in no way restricted and the proposal to be line with subsidiarity and proportionality principles and not cause unnecessary administrative burdens on public authorities and private businesses;
  • at an initial presentation of the proposal by the Commission to the Council Aviation Working Group on 2 July 2009 it was clear that many Member States were unenthusiastic about aspects of the proposal and the Government flagged up some key questions about what the costs and benefits of the proposal would be and whether it would be more appropriate to amend the existing Airport Charges Directive;
  • in relation to the Government's consideration of the detail of the proposal, it was working closely with the Civil Aviation Authority and involving other industry stakeholders and the Devolved Administrations, it was seeking detailed views from UK stakeholders through a public consultation over the 2009 summer, in the meantime its approach at the working group meetings would be to continue to ask key questions and to pursue in more detail the headline messages that it gave at the June 2009 Transport Council and it consider it important to continue to emphasise that "the user pays principle" applies to aviation security measures;
  • in relation to costs and impact assessment, it was not possible to quantify the security requirements imposed on the aviation industry in financial terms, but the Government recognised that security measures must be proportionate to the changing threat, which was why they are subject to continuous review and why it was continuing to consult the aviation industry to ensure that measures were proportionate and appropriate, it was finalising an initial, partial impact assessment as part of a public consultation package and it expected, however, that a fuller understanding of the exact impacts would not be possible until the consultation was underway.

5.7 We commented that, although grateful for the interim account of where matters stood on the draft Directive, we would not be able to give more detailed attention to the document until the Government was able to respond more fully to the points we had raised in our earlier report.

5.8 When we last considered the matter, in September 2009, we heard that:

  • the working group considered the draft Directive in detail on 10 and 23 July 2009;
  • after the first detailed discussion the Swedish Presidency agreed to consider and put forward some initial drafting suggestions regarding references to an 'airport managing body' and impact assessments for More Stringent Measures;
  • one of the suggestions, which the Government very much supported, included insertion of text which clarified the right of Member States to take emergency measures on the basis of imminent and identified threats without the need to carry out an impact assessment first;
  • this amendment dealt with the Government's main reason for its subsidiarity concerns (and it was not the only Member State to have raised a concern about the original text);
  • the Government was not yet in a position to report any developments on its preference for the charging elements of the proposed Directive to match those of the Airport Charges Directive as closely as possible (the proposal differs in terms of scope and the proposed transparency and consultation requirements), as these elements of the proposal had not yet been substantively discussed at the working group;
  • Working Group discussion was scheduled to continue on 10 and 24 September 2009 when the Government was expecting issues such as the possibility of alignment with the Airport Charges Directive, which a number of Member States were interested in, to be covered;
  • in relation to the Government's concerns about the potential impact on small airports, including those in the Highlands and Islands, of the draft Directive the Government hoped that working group discussions on the scope and a potential applicability threshold would go a large way to reducing any potential impact on these airports;
  • while the Government did not consider that the proposed Directive would have a significant effect on charges levied by UK airports, it did consider that there were potential benefits for UK airlines operating out of other Community airports and consequently for UK passengers;
  • the proposal could bring greater visibility of charges, especially in countries which were less market based or had limited regulation, and it therefore might help to drive down costs;
  • the Government's principal concern in the negotiations had been to ensure that Member States' ability to put in place More Stringent Measures swiftly should not be restricted and this point had now been resolved;
  • there were further issues still to be discussed and the Government's final view on the proposal ahead of the October 2009 Transport Council, at which the Presidency hoped to be able to secure a general approach, would depend on the planned further working group discussions as well as on stakeholder responses received as a part of the public consultation (which was not closing until 27 September 2009); and
  • the Presidency's aim to resolve the outstanding issues in time to achieve a general approach at the forthcoming Council was ambitious, but it was possible that a position would be reached by then which was acceptable to the majority of Member States and which the Government would wish to support.

5.9 We noted that the Government might wish to support a general approach at the Transport Council on 9 October 2009, if such a stage, which the Government considers reasonable, is reached. However, we commented that:

  • whilst we recognised the case the Government was making for the likely utility of this proposal, if amended satisfactorily in all the aspects drawn to our attention, we felt the prospect of such comprehensive amendment was not, as yet, sufficiently secure as to allow us to clear the document from scrutiny — so the document would continue to remain under scrutiny; and
  • we did not wish the Government to agree to a general approach until we had had the opportunity to consider a further report, detailing a more certain outcome of the negotiations, (and to even consider whether a debate might be necessary).[21]

The Minister's letter

5.10 In the event a general approach on this draft Directive was not adopted at the October 2009 Transport Council and the Parliamentary Under-Secretary of State, Department for Transport (Paul Clark), writes to tell us where matters now stand on this proposal. He says that:

  • it is now looking likely that a general approach will be sought at the Transport Council on 17-18 December 2009; and
  • there are still a number of issues, however, that Member States were not able to resolve in the working group, so it is possible that after the proposal is discussed at COREPER on 9 December 2009 it may only be the subject of a progress report.

5.11 Turning to the substance the Minister:

  • says that the Working Group has considered the proposal in detail at a number of meetings over the last few months, most recently on 3 December 2009;
  • recalls that earlier negotiations had included the insertion of text which clarifies that a Member State does not need to do an impact assessment where More Stringent Measures target a specific threat and are intended to be of limited duration and that the Government welcomed this sensible approach;
  • reports that 23 organisations responded to the Government's consultation, that the Government's analysis and response are still in preparation but that what is clear is that airlines in particular would welcome transparency of charges, smaller airports expressed concern at the administrative burdens they would face if the qualifying threshold was to be below five million passenger movements and impact assessments for More Stringent Measures were broadly welcomed;
  • continues that in relation to the Government's concerns about the potential impact on small airports, including those in the Highlands and Islands, the smaller airports and representative organisations also raised concerns about the costs of implementing the proposed Directive in their responses to the consultation;
  • says that at a recent Working Group meeting the Presidency indicated that it is minded to align the scope of the proposal with the Airport Charges Directive, that is a five million passengers per annum threshold, but unlike that Directive not to include the largest airport in a Member State if no airport exceeds five million passenger movements; and
  • comments that the Government welcomes this change as it brings the provision largely into line with the Airport Charges Directive and smaller airports, such as those in the Highlands and Islands, would not be covered by the proposed Directive.

5.12 The Minister then says that:

  • the Government's principal security concern in the negotiations was to ensure that Member States' ability to swiftly put in place More Stringent Measures should not be restricted and this point has now been addressed in the revised text;
  • there are, however, a number of issues still to be addressed, there is still no consensus among Member States and many questions remain unresolved;
  • there would be a further discussion of the proposal at COREPER on 9 December 2009 and by Ministers at the Transport Council itself later in the month;
  • the Government thinks that the proposal still requires significant further work and that it is not ready for a general approach;
  • it has made these points strongly to the Presidency — nevertheless, the Presidency still hopes that it will be possible to reach a general approach at the Council;
  • the Government intends, therefore to take the line that any agreement needs to ensure a genuine level playing field in all Member States, that the appeals mechanism should be aligned with that in the Airport Charges Directive and that provisions on cost-relatedness should strike a fair balance between passengers and airport operators; and
  • unless these issues can be resolved at the COREPER meeting or at the Council itself the Government is minded to inform the Council that it abstains from any agreement to a general approach.

5.13 Finally the Minister tells us that:

  • the European Parliament held its first discussion of this proposal at a TRAN Committee meeting on 10 November 2009 and the Rapporteur is to report back in January 2010;
  • the Committee's main concern was that the proposed Directive did not include any proposals on the financing of aviation security measures by Member States; and
  • as noted previously the Government's position on this is that the user should continue to pay.

Conclusion

5.14 We are grateful for the Minister's latest account of where matters stand on this draft Directive. We note the helpful improvements to the proposal already secured. But we note also that there are issues still outstanding that mean the Government would not yet wish to acquiesce in a general agreement — a position which we applaud. We are not now minded to recommend the draft Directive for debate. But before considering the matter again we wish to hear of further improvements to the draft text — meanwhile the document continues to remain under scrutiny.


18   (26861) 12588/05: see HC 34-viii (2005-06), chapter 4 (2 November 2005), HC 34-xv (2005-06), chapter 2 (18 January 2006) and HC 34-xxi (2005-06), chapter 1 (8 March 2006) and Stg Co Deb, European Standing Committee, 7 March 2006, cols 3-16. Back

19   (30429) 6074/09: see HC 19-xi (2008-09), chapter 14 (18 March 2009). Back

20   (28346) 5887/07 + ADDs 1-2: see HC 41-xi (2006-07), chapter 3 (28 February 2007), HC 16-ii (2007-08), chapter 4 (14 November 2007) and HC 16-iv (2007-08), chapter 22 (28 November 2007). Back

21   See headnote. Back


 
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