NZ Airports submission on CAA funding review
10 Oct 2024
NZ Airports has supported increases to the CAA and AvSec levies in principle, but questions the resourcing decisions behind the government’s proposals. We also make recommendations to identify efficiencies and achieve better results with levy spend.
Summary of recommendations:
- Include the aviation-related functions of the Ministry of Transport, MBIE, Customs and Biosecurity NZ, and Airways, in the scope of the first principles review of CAA in order to ensure cross-agency efficiencies and system gaps can be captured during the process.
- Monitor the health of the domestic air transport network, including through the new monthly airline performance reports.
- Require agencies consulting on aviation-related fee and levy increases to undertake demand modelling in a cooperative manner in order to provide holistic advice to Ministers. As a first step, the Ministry of Transport should undertake demand modelling capturing all fee and levy increases at the border since 2023.
- Use public and private good criteria when evaluating where cost increases should fall to specific user fees versus passenger fees.
- Maintain resourcing for rules alignment with ICAO standards to avoid further drift away from international best practice. Reinstate CAA performance measures around ICAO rules alignment.
- Prioritise digital innovation. Consider an external panel to support the adoption and integration of digital solutions.
- Establish a process to gather industry input on rule priorities at the total resourcing level.
- Carefully evaluate options for truncated rule change processes.
- Leverage international partnerships to reduce New Zealand-specific rule evaluations and certifications.
- Assess ways for CAA to provide clearer views to industry on regulatory questions.
- Progress the consultation on the delivery of aviation security services as a way to explore long term solutions.
- Undertake an external benchmarking process before confirming AvSec FTE increases, with support from independent aviation security experts.