Commentary on Sections Note on abbreviations Section 10: Funding of Air Travel Trust Fund by contributions paid by air travel organisers
52.Section 71 of the CA Act 1982 currently allows the Secretary of State to make regulations in relation to the provision of flight accommodation, under which powers the Civil Aviation (Air Travel Organisers' Licensing) Regulations 1995 have been made.
53.Section 10 adds two new sections (71A and 71B) to the CA Act 1982 providing the Secretary of State with powers to make regulations requiring persons applying for licences by virtue of section 71 to make contributions to the Air Travel Trust. The contributions are to be in respect of the period for which the licences are to be issued.
54.New section 71A provides as follows.
55.Subsection (1) confers the general power to make such regulations, while subsection (2) sets out particular matters for which the regulations will be able to make provision.
56.Subsection (2)(a) permits the regulations to prescribe the factors the CAA is to use when calculating contributions payable by applicants for licences.
57.Subsection (2)(b) permits the regulations to authorise the CAA, with the consent of the Secretary of State and after consultation, to set the rates and dates for the payment of those contributions by different descriptions of persons.
58.Subsection (2)(c) permits the regulations to require contributions to be paid, or undertakings to pay contributions to be given, before a licence is issued under section 71.
59.Subsection (2)(d) permits the regulations to require licence holders to pay additional contributions where the contribution rate increases during the licence period.
60.Subsection (2)(e) permits the regulations to require persons applying for the variation of a licence to pay additional contributions.
61.Subsection (2)(f) permits the regulations to make provision for persons, in prescribed circumstances, to be reimbursed in respect of payments which they have made.
62.Subsection (2)(g) permits the regulations to make provision for the payment of interest in relation to unpaid contributions and for this interest to be recoverable as a debt due to the Air Travel Trust.
63.Subsection (2)(h) permits the regulations to make provision for the CAA to act as agent for the trustees of the Air Travel Trust in collecting and recovering contributions from licence holders, and for the reimbursement of associated costs.
64.Subsection (2)(i) permits the regulations to make provision for the CAA to suspend the requirement to make contributions in respect of a period either generally or for a particular description of persons.
65.Subsection (2)(j) permits the regulations to make provision for the CAA, after consulting the Secretary of State, to make exemptions from the requirement to make contributions on such conditions as the CAA thinks fit.
66.Subsection (2)(k) permits the regulations to make provision to require the CAA to publish prescribed matters in a prescribed manner; this would allow regulations to require publication of details of exemptions in the CAA’s Official Record.
67.Subsection (2)(l) permits the regulations to make provision for creating criminal offences to be tried summarily and punishable with a fine which does not exceed level 5 on the standard scale (currently £5,000).
68.Subsection (3) permits the regulations to authorise the CAA: a) to refuse to issue a licence to a person; b) to refuse to vary a licence held by a person and c) to vary, suspend or revoke a licence held by a person, if the person concerned has failed to comply with a prescribed requirement of the regulations or has breached an undertaking in relation to the payment of contributions.
69.Subsection (4) disapplies section 4 of the CA Act 1982 in relation to any functions conferred on the CAA by regulations made under this new section. Section 4 relates to the performance by the CAA of its general functions.
70.Subsection (5) defines the Air Travel Trust for the purposes of the new provisions of the CA Act 1982.
71.New section 71B provides as follows.
72.Subsection (1) obliges the Secretary of State to consult the CAA and the trustees of the Air Travel Trust before making regulations under new section 71A.
73.Subsection (2) requires the CAA, on being so consulted, to consult those who hold licences issued in accordance with section 71 and any other person who appears to the CAA to have an interest in the matter, so far as it considers it reasonably practicable to do so.