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MonthDecember 2016

EXECUTIVE SUMMARY

December 12, 2016 / / 0 Comments
EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

THE CIVIL AVIATION AUTHORITY OF NEW ZEALAND Establishment as a Crown entity The CAA was established in 1992. It is a Crown entity in terms of the Public Finance Act 1989 and is subject to the financial reporting requirements in Part V of that Act. Statutory functions The principal objective of the CAA — derived from one of the Minister’s objectives — is to undertake its safety, security, and other functions in a way that contributes to the aim of achieving an integrated, safe, responsive, and sustainable transport system. In support of its objective the CAA has a number of specific statutory functions listed in the Civil Aviation Act 1990.

The Authority Governance of the CAA is vested in the Authority, a five member ‘Board’ reporting directly to the Minister of Transport. Neither the Director of Civil Aviation nor any other CAA employee may be a member of the Authority, nor may any person concurrently holding any office or appointment under the Transport Accident Investigation Commission Act 1990.

Chief Executive/Director of Civil Aviation The Authority is required from time to time to appoint a Chief Executive, to be known as the Director of Civil Aviation. The Director has overall responsibility for day-to-day management of the CAA and a wide range of more technical responsibilities conferred on the position both directly under legislation and by delegation from the Authority. Director’s statutory functions The Director’s direct statutory functions include:

• exercising control over the entry of individuals and organisations into the civil aviation system by granting aviation documents; and

• taking appropriate enforcement action in the public interest, including the carrying out of inspections and audits. The Civil Aviation Act states that the Director must act independently and is not responsible to the Minister or the Authority in respect of any particular case relating to the above
functions.

Delegated functions The Authority and the Director exercise functions and powers delegated by the Minister, including those related to the Crown’s obligations as a Contracting State to the International Civil Aviation Organisation (ICAO). Civil Aviation Authority of New Zealand 6 Aviation Security The Authority is responsible for governance of the New Zealand Aviation Security Service. You will receive a separate brief from the General Manager of the Service on its functions and responsibilities.

Funding

The Crown pays the CAA for the services it provides to Government. Direct Crown funding currently comprises seven percent of total CAA revenue and a further five percent is paid through the Ministry of Transport for Civil Aviation Rules development. The remainder of the CAA’s annual funding is obtained from the aviation industry in the form of regulated fees and charges for specific services, and levies for activities related to the industry as a whole. Staffing The current maximum number of CAA staff permitted within budget limits is 181, with 171 “Full Time Equivalent” (FTE) staff currently employed. Quality management The CAA is certificated by Bureau Veritas Quality International to ISO 9001:2000 as a quality assured supplier. ACCOUNTABILITY TO THE MINISTER Legislation requires the Authority to provide certain reports and other information to the Minister, including:

• An annual Performance Agreement,
• an annual Statement of Intent
• a Service Charter
• an Annual Report
• quarterly reports.
Additionally the Director provides regular “No Surprises” reports and briefings on emerging issues and keeps the Minister fully informed on major aviation issues. Civil Aviation Authority of New Zealand 7 CURRENT KEY ISSUES

Air New Zealand reorganisation

Aviation Security

On 19 December 2005 Air New Zealand announced the re-organisation of one of its business units – Air New Zealand Engineering Services (ANZES) – with a resultant reduction of approximately 320 staff. The re-organisation removes the aero-engine overhaul capability at its Auckland facilities and some of the ‘heavy’ maintenance capability. Air New Zealand Engineering Services will retain the ability to conduct ‘heavy’ maintenance on the Boeing B747 and B737 and a limited capability for the B767 and B777 aircraft. ANZES management and organisational structure changes bring the company back into Air New Zealand as a Technical Operations organisation that provides maintenance services to the airline. The changes are major and are having a significant effect on the CAA’s monitoring and certification activities over the transition period. The transitional plan for the changes will be reviewed and accepted by the CAA prior to implementation. ANZES also holds a number of certificates issued by other regulatory authorities, eg, the Civil Aviation Safety Authority Australia, the European Aviation Safety Agency, and the United States Federal Aviation Administration. The scope of these certificates will be
affected by the changes.

The CAA and ANZES management teams have adopted a project and risk management approach to these tasks and are holding regular meetings to ensure that the oversight measures are effective and timely. Current oversight arrangements are:

(a) the previous scheduled audit programme has been cancelled and a new programme established to include only the areas unaffected by the changes;

(b) special purpose audits have been arranged to ensure close monitoring of the areas affected during the transition period; and

(c) certification activity has been increased to provide timely implementation of the changes. Air New Zealand management review and reduction Air New Zealand announced in early February that the company is conducting a major review and reduction of its management staff, co-incidental with the review of ANZES and heavy maintenance. The 470 management staff members who may be affected by this review come from all areas of the airline. The CAA will maintain full oversight and give prior
approval of all proposed changes.

CURRENT KEY ISSUES

December 12, 2016 / / 0 Comments

CURRENT KEY ISSUES

Mr D N (Darryll) Park (Member) Darryll Park joined Air New Zealand’s commercial graduate scheme in 1973 and spent his
last six years with the company as South Island Manager. In 1998, he established Civil Aviation Authority of New Zealand 14 Christchurch and Canterbury Marketing Limited, where he was Chief Executive Officer. He is now Managing Director and part owner of corporate travel provider, Signature Travel. He is also a Fellow of the New Zealand Institute of Management, a Director of the Canterbury Rugby Union, and a member of the Institute of Directors. Mr Park’s current appointment expires on 30 November 2007 Mrs R (Robyn) Reid (Member) Robyn Reid established and managed a successful helicopter business from 1983 until 2002. She was Chairman of the Helicopter Division of the Aviation Industry Association in 1996 and 1997, and a trustee of the Aviation Trust Fund Board. She was a member of the Nelson/Marlborough Conservation Board from 1999 to 2002, and is a member of the Small Business Advisory Group and Nelson Tasman Tourism Services.

Mrs Reid’s current appointment expires on 30 November 2006 Mrs S (Susan) Hughes (Member) Susan Hughes has been a partner in Govett Quilliam, Barristers and Solicitors, since 1987. She was a member of the Criminal Justice Advisory Council from 1988 until 1991, Chairman of the Care and Protection Resource Panel from 1990 to 1993, and Chairman of the Criminal Legal Aid Sub-Committee until 1998. Mrs Hughes’ current appointment expires on 30 November 2007 Director of Civil Aviation Appointment The Director of Civil Aviation appointed by the Authority as Chief Executive of the CAA with overall responsibility for its day-to-day management, including the appointment of all other CAA employees.

Statutory functions

In addition to his role as Chief Executive of the CAA, the Director has a wide range of statutory functions and technical responsibilities, conferred on the position both directly under legislation and by delegation from the Minister and the Authority. The Director’s direct statutory functions include responsibility for exercising control over entry into the civil aviation system and taking appropriate enforcement action in the public interest. A large range of related powers and functions are conferred on the Director under the Civil Aviation Act 1990 and Civil Aviation Rules. Section 72I of the Act specifically empowers the Director of Civil Aviation to:

• exercise control over entry into the civil aviation system through the granting of aviation documents (licences, certificates, etc) under the Act; and

• take such action as may be appropriate in the public interest to ensure compliance with the provisions of the Act and of regulations and rules made under the Act, including the carrying out or requiring of inspections and audits.

• monitor adherence to regulatory requirements relating to safety and security; including personal security, access and mobility, public health, environmental sustainability, and any other matter.

• ensure regular reviews of the civil aviation system to promote improvement and development of its safety and security. Statutory Independence

Under section 72I(4) of the Civil Aviation Act, the Director must act independently and is not responsible to the Minister or the Authority for the performance or exercise of the following functions or powers in respect of any particular case:

Current Director

Mr Jones came to the CAA in 2001 from Mount Cook Airlines where he had been Manager Flight Operations. He began flying in 1963 and during his career logged over 18,000 hours flight time in various roles in general aviation and airline operations, predominantly in New Zealand and the South Pacific. He is a former President of New Zealand’s Aviation Industry Association and is a Fellow of the Royal Aeronautical Society. Mr Jones’ contract is not finite.

Delegated functions

In addition to their direct statutory functions and powers, both the Authority and the Director of Civil Aviation currently exercise powers and functions delegated by the Minister of Transport by Instrument of Delegation dated 31 August 1992 issued under section 22 of the

Civil Aviation Act 1990.

These delegated responsibilities relate to international obligations relating to the International Civil Aviation Organisation (ICAO) and the Convention on International Civil Aviation signed in Chicago on 7 December 1944. Under this delegation, in relation to the Crown’s ICAO obligations, the CAA is designated: (d) The Meteorological authority. The CAA undertakes those ICAO responsibilities of a technical or safety regulatory nature associated with, but not limited to, the work of the ICAO Air Navigation Bureau and the Technical Co-operation Bureau, and administers New Zealand’s participation in all forums
associated with those areas of ICAO’s work. Aviation security

The functions of establishing and administratively supporting the Aviation Security Service were added to the Authority’s other functions by amendment to the Civil Aviation Act in 1993. The Service is operated as a separate business unit of the CAA. Its specific functions, responsibilities, and activities are detailed in a separate brief provided for you by the Service.

Pacific Islands Responsibilities

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Pacific Islands Responsibilities

New Zealand’s involvement in civil aviation in the Pacific region has resulted from New Zealand’s past and, in some cases present, political responsibilities for certain territories and its willingness to provide competent technical advice and assistance to its Pacific neighbours. The Authority or the Director provides aviation safety and security assistance and advice to Samoa, the Cook Islands, Tonga, and Niue. From time to time New Zealand is also requested by other Pacific States to provide civil aviation advice or assistance on a case-by-case basis.

Samoa

The inter-government agreement on civil aviation of 1999 delegated to the New Zealand Director of Civil Aviation substantial aviation safety and security governance. During the past six years the CAA has assisted the Government of Samoa to modernise Samoa’s civil aviation legislation and regulatory accountabilities. A new Samoa Civil Aviation Act came into effect in the latter part of 1999, incorporating New Zealand Civil Aviation Rules into the Samoa aviation regulatory system by reference.

Cook Islands

The inter-government agreement of 1 April 1986 provided for the New Zealand Director of Civil Aviation to also have that role in the Cook Islands for a period of five years. With the assistance of the CAA the Cook Islands Civil Aviation Act was passed into law in May 2002. The legislation is similar to the Samoan legislation in that it incorporates New Zealand Civil Aviation Rules. On 4 April 2003 the Director was re-appointed pursuant to the provisions of the new Cook Islands Civil Aviation Act, and on 8 May 2003 an agreement for the provision of technical advice and assistance by New Zealand was signed. The Director’s appointment remains in effect until cancelled. The Cook Islands and New Zealand governments have an agreement for provision of services
the same as that in effect with Samoa. Niue

The 1986 inter-government agreement requires the New Zealand Director of Civil Aviation to provide advice to Niue on activities including administration of civil aviation; recruitment, training and conditions of staff for Niue airport; facilities and buildings; airworthiness; airport security; and emergency services. That agreement was replaced on 14 March 2000 Civil Aviation Authority of New Zealand 17 with an agreement for the provision of advice and technical assistance on aviation safety and
security.

With the CAA’s assistance Niue passed legislation in 1999 to modernise its aviation system and to incorporate New Zealand Civil Aviation Rules. The aviation industry in Niue (one international airport and support infrastructure) now implements safety and security processes with oversight provided by the CAA as required.

Pacific Aviation Safety Office

The Pacific Aviation Safety Office (PASO) is an initiative of Pacific Forum Ministers aimed at establishing a cooperative arrangement for the provision of safety regulatory oversight services to less developed States within the South Pacific region. It has been a difficult and protracted process to get the office established. A General Manager is now in place and the office has secured a promise, subject to conditions, of loan and grant funding from the Asia Development Bank. This will enable it to begin recruiting a limited number of technical staff. New Zealand, like Australia, is a member of the PASO council although we expect to be providing services, not seeking them. In time, we hope the PASO will be in a position to take over some or all of our present bilateral arrangements with individual States.
Civil aviation safety funding

At present the CAA recovers 88 percent of the costs associated with provision of its services to the aviation industry from two main sources: direct fees and charges for services, and aviation safety levies. Crown funding is provided for services specified in the Performance Agreement with the Minister, namely: policy advice, Rules development, and costs incurred
in meeting those international civil aviation obligations undertaken by the CAA on behalf of the Minister and the Government of New Zealand.

Those services provided to the industry that are client-specific — such as issue or renewal of personnel licences, aircraft certification, operational approvals, or the audit of an organisation — are recovered through direct fees and charges, making up 13 percent of total CAA revenue.

Those safety related services that cannot be billed to a specific client include services such as the provision of safety information and education, accident and incident investigation, law enforcement, and safety analysis. The costs associated with the provision of these services are recovered through Civil Aviation Safety Levies, making up 75 percent of total CAA
revenue. Staffing

Staff numbers In 1988 the Swedavia-McGregor review proposed a staff level for the CAA of 154. When the CAA was established in 1992 staff numbered 120. Pressure from the aviation industry for a further reduction, and concern within the CAA that it could not satisfactorily fulfil its safety functions at that level led to a full review of staffing during 1996. The review identified an optimum staff level of 148 but noted that the CAA could not employ extra staff within the existing budget. The government addressed the funding problems and the CAA recruited the extra staff required, particular emphasis being given to increasing the numbers of technical staff in the critical areas of safety certification, audit and monitoring, and safety investigation. The present maximum number of CAA staff permitted within budget limits is 181, with 171 “Full Time Equivalent” (FTE) staff currently employed. Terms and conditions of employment

As a Crown entity, the CAA is not subject to the State Sector Act 1988. However, various principles of the Act were carried over into the Civil Aviation Act, including provisions for the Chief Executive to undertake the role of employer, and related “good employer” and equal employment opportunities (EEO) requirements.

Quality management

December 12, 2016 / / 0 Comments

Quality management

The statement of forecast service performance must describe the classes of proposed outputs. Service Charter Section 72G of the Civil Aviation Act 1990 requires the CAA to make available to the public a Service Charter which includes: •

A statement of the standards of service which the public may expect to apply to the carrying out of the CAA’s functions; • the procedures to be followed where it is alleged that the standards were not met; and • the remedies available where it is established that the standards were not met. The current version of the CAA’s Service Charter was published in 2004. It can be viewed on the CAA’s web site. There are two principal reasons why the CAA believes it is essential to maintain a quality management system to implement civil aviation safety regulatory activities, namely: 1. The CAA’s regulatory philosophy is based on the premise that organisations exercising privileges in the aviation system are responsible for the management of the safety of their operation. This includes, in particular, ensuring that their standards and procedures are adequate to ensure compliance with appropriate safety standards and that all staff are complying with them. The CAA has taken the view that it cannot “sell” this philosophy to industry unless it adopts the same approach to its responsibilities.

2. It is imperative that the CAA manages its limited resources, strives to become more efficient, and maintains a high standard of performance of its work. The quality management system is a powerful and effective tool to support and facilitate these requirements. CAA certification to ISO 9001:2000 All CAA Groups, and consequently the CAA as a whole, have been assessed by Bureau Veritas Quality International and found to be in accordance with the relevant ISO quality standard. The CAA was first certified to ISO 9001:1994 on 1 December 1995. The CAA maintained that certification until 10 November 2003 when it was reassessed and certified to ISO 9001:2000. The latest assessment and certification were completed in December 2005. Civil Aviation Authority of New Zealand 20 ACCOUNTABILITY TO THE MINISTER Performance Agreement Section 72F of the Civil Aviation Act 1990 requires the Authority to give to the Minister a draft Performance Agreement which must include: (a) A statement of objectives in terms of section 41(2)(d) of the Public Finance Act 1989;

(b) the methods by which performance against those objectives will be measured;
(c) reporting arrangements;
(d) liabilities intended to be incurred during the year; and
(e) financial forecasts for the subsequent two years.

The Crown entities Act 2004 removes the requirement for a Performance Agreement starting with the financial year 1 July 2006 – 30 June 2007 and substitutes the nomination of provision of an Output Agreement. Statement of Intent A Statement of Intent has been prepared for the financial year 1 July 2005 – 30 June 2006 to meet the requirements of section 41D of Part V of the Public Finance Act 1989, which requires the document to include:

(a) the objectives of the Crown entity,
(b) the nature and scope of activities to be undertaken,
(c) performance targets and measures and other measures by which performance may be judged relative to the objectives,
(d) a statement of accounting policies,
(e) a statement of output objectives specifying the classes of outputs to be produced,
(f) any activities (other than those related to output classes) for which compensation will
be sought from the Crown, and
(g) other matters, including information to be supplied, as may be agreed between the responsible Minister and the Crown entity. The Statement of Intent for 1 July 2005 – 30 June 2006 also includes, where appropriate and feasible, the provisions of section 141 of the Crown Entities Act 2004, which require the Civil Aviation Authority to provide in a Statement of Intent for the financial year, 1 July 2006 – 30 June 2007 the following:
(a) Key background information on the Crown Entity and its operating environment, and
(b) forecast financial statements prepared in accordance with generally accepted accounting practices.

Reporting requirements

December 12, 2016 / / 0 Comments
Reporting requirements

Reporting requirements

Annual Report Under clause 38 of the Third Schedule to the Civil Aviation Act 1990 and Part V of the Public Finance Act 1989 the Authority must provide the Minister with an Annual Report for the financial year 1 July – 30 June each year containing:  A statement of the CAA’s activities during that year;
• the annual financial statements prepared under Part V of the Public Finance Act 1989, including:
• the management report required under section 42 of Part V, and
• the audit opinion of the Audit Office required under section 43 of Part V in respect of the annual financial statements;
• the Performance Agreement between the Minister and the Authority for that year;
• an analysis of the CAA’s performance compared with the Performance Agreement, including an analysis and comparison of the actual measures of performance with the objectives and performance targets (financial and non-financial) in the Agreement;  a statement of the extent to which the CAA’s equal employment opportunities programme for the year was complied with; and  any other matters the Minister may from time to time require in writing. The current Performance Agreement also requires the Annual Report to contain:
• Descriptions of any Ministerial policy directions received during the year and how they were complied with;
• reports on any functions and powers that are delegated or contracted out in terms of sections 23B or 72E of the Civil Aviation Act 1990;

and a report on the impacts and consequences that the actual outputs of the CAA during the year had on a safe civil aviation system compared with the estimates in the Performance Agreement, and the achievement of the aviation safety output targets in a cost-effective manner. Quarterly Reports Under clause 7 of the current Performance Agreement the Authority is required to provide a Quarterly Report to the Minister within 20 working days of the end of each quarter (40 working days for the 4th quarter). The actual form of the quarterly report, which includes both financial and non-financial information, is agreed on the Minister’s behalf by the Ministry of Transport in consultation with the Authority. It must contain actual output and outcome performance information compared with forecast and intended – as well as unintended – results. The present report format is in a concise ‘overview’ style comprising no more than 10 pages but providing sufficient information to give a clear overall picture of achievements.

A cover sheet in bullet point format is also provided, showing key outcome performance indicators Current and emerging issues The CAA practises a “No Surprises” approach, with the Director keeping the Minister informed of all current and emerging issues in the CAA and the aviation sector of the transport industry on a regular basis. A report is despatched to the Minister’s Office every Friday outlining issues of which the Minister needs to be aware and which may arise in the succeeding week. In addition a special report is provided whenever the Minister needs to be urgently informed of significant events. The Director also provides briefing notes on major issues of which the Minister should be informed in a timely manner. Ministerial correspondence on aviation matters Ministerials on aviation matters which require a draft reply for the Minister to sign are normally directed initially to the Ministry of Transport. The Ministry normally forwards them to the CAA with a request for a draft reply or comments.

Alternatively, the Minister’s Office may decide that the letter should be referred directly to the Director for reply to the inquirer on the Minister’s behalf. Parliamentary Questions The Ministry of Transport requests CAA technical input to responses to Parliamentary Questions on aviation matters.
Media contact The CAA follows the Communications Protocols laid down in the Ministry of Transport “Guidelines and Protocols for the Handling of Legislative and Administrative Matters”. All media releases concerning issues within existing policy and within the CAA’s operational responsibility are copied to your Office no later than the time of release to the media.

Policy Directions Section 72C of the Civil Aviation Act 1990 (as inserted in 1992) requires the Authority to comply with government civil aviation policies including related directions given in writing by the Minister. Only one Policy Direction has been issued to date. On 1 September 1992 the Minister issued a Policy Direction to the Authority to establish an arrangement with the
Occupational Safety and Health Service of the Department of Labour for consideration of issues relating to the health of aircrew.

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