Clause 15 - Granting licence

Part of Civil Aviation Bill – in a Public Bill Committee at 10:15 am on 1st March 2012.

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Photo of Theresa Villiers Theresa Villiers The Minister of State, Department for Transport 10:15 am, 1st March 2012

I welcome the contributions made by the shadow Minister and the hon. Member for North West Durham. They are both correct in that it is extremely important that we ensure that the economic regulatory framework proposed in the Bill is proportionate and takes proper account of its cost impact on the airport and aviation sector. As the shadow Minister mentioned, yesterday I reported to the Committee the Government’s assessment of the overall impact of the Bill as a whole and that is, as I have said, a net reduction of £150 million net present value over 20 years. That includes a reduction in costs, as a result of economic regulation, of £160 million, but because of various other provisions in the Bill there are some additional costs in relation to security. So the net figure is £150 million. It is a reduction following on from the assessment that the Government have done on this matter.

That is an important starting point. I would also completely agree with what has been said; it is important that the CAA conducts high quality and proper analysis before making its decisions on licence conditions. The Government fully agree with that sentiment. I hope I can reassure both hon. Members that that kind of analysis is already required by the Bill. The provision proposed by the Transport Committee, while understandable, is not necessary.