Mr. Ronan Gallagher:

I thank the committee for facilitating our appearance before it this morning to discuss the proposed draft Bill. The Minister has asked me to convey his apologies for not being here this morning as he is required in the Dáil Chamber to answer parliamentary questions.

Before addressing the more detailed aspects of the proposed legislative amendments contained in this relatively short draft Bill, I would like to set out the broader policy and operational context and also explain what, in essence, the draft Bill seeks to do. Civil aviation security, which includes security arrangements at our airports and security practices and procedures amongst companies operating at our airports, including airlines, cargo companies, is a highly regulated area. In this regard, there are extensive and detailed rules and obligations set out in international agreements, specifically the Chicago convention, and also in EU law. There is regular and high level engagement on aviation security issues at the UN International Civil Aviation Organisation, which manages the Chicago convention and, similarly, at EU level among member states. There is also high level regular engagement between the EU and the US on a bilateral basis.

The committee will be aware that airports and aircraft for a long time now have been a particular focus for terrorist attacks and over time, and especially since the 9/11 attacks, a huge amount of work has been put into counteracting this threat. In Ireland, the National Civil Aviation Security Committee, which is chaired by my Department, brings together all relevant State agencies and industry stakeholders to ensure that Ireland keeps pace with developments in this area. The committee will appreciate that there are constant developments in this area, new intelligence of new threats, changes to threat levels, changes to the source of threats and, therefore, it is a constantly evolving picture. The National Civil Aviation Security Committee plays a hugely important role in making sure that Ireland does what it needs to do, developing strategies and co-ordinating responses across the sector.

The other key component of Ireland’s civil aviation security regime is the Irish Aviation Authority, IAA, which since 2013 has been the principal body in Ireland responsible for the oversight and inspection of civil aviation security. At the heart of this proposed legislative amendment is a provision that will allow the Irish Aviation Authority to invest in more resources to allow it to bulk up its oversight and inspection capabilities with regard to civil aviation security as demand increases from increased activity and volumes linked to economic growth. As mentioned, since 2013, the IAA has been the principal body responsible in Ireland for the oversight and inspection of civil aviation security but at that time no arrangements were made to provide it with a revenue stream to support these additional functions. It is proposed to address this now. The Minister is of the view that we need a sustainable funding model that is fair and transparent. Ireland is currently an outlier in the EU as it is the only member state with no formal mechanism for funding this activity. All other EU member states have a mechanism in place to cover the cost associated with the oversight of aviation security, for example, through central Exchequer funds, some form of aviation security taxation on airspace users or through the levying of direct fees on regulated entities. The Government has decided that the regime in Ireland should be funded by way of a new industry levy in the form of fees payable by regulated companies. Up to now, the IAA has drawn on income from other sources.

What is proposed is the same charging model applied in other areas of aviation regulation by the IAA and by regulators in other sectors in Ireland. The Minister considers the provision of this levy and the additional resources it will provide to be a matter of utmost national interest on a number of fronts. As we develop increased connectivity through our State airports, as part of the Government's broader economic development policy, the State needs to ensure that it has an aviation security regime that is able to meet the future demands of that increased connectivity; Ireland needs to continue to keep pace with international developments and ensure that it meets the ever-increasing demands coming from the International Civil Aviation Organisation, ICAO, and from the EU in the area of civil aviation security; and, as an exporting economy, one that relies heavily on Dublin Airport in particular for access to international markets, the State needs to make sure that this key component of our international supply chain is highly secure.

The aviation security approval of Irish air carriers and certification of known consigners operating within the international supply chain provided by the IAA is recognised throughout Europe and internationally and allows our companies and airlines to trade across Europe. For example, there are approximately 200 Irish based manufacturing companies exporting through our airports, many of them multinationals. The status they are awarded by the IAA, which is known-consigner status, which is given on the basis of the IAA being satisfied as to the security arrangements applied by the companies when goods are packaged for export, means there is no need for re-screening at the airports. This is hugely beneficial in terms of reducing the cost of the supply chain and avoiding delays and it is highly valued by the companies.

There is a considerable workload associated with this function. More than 500 relevant entities operate in the Irish aviation market, including companies that operate or provide services at Irish airports, which the IAA has to regulate for the purposes of civil aviation security. The largest, unsurprisingly, is Dublin Airport, but the list also includes non-aviation companies that move and export cargo through the airports, which also have security obligations under the regulations. As mentioned, our airlines depend on it, as their ability to provide services throughout Europe depends on the IAA validating their security programmes.

The IAA envisages that its new charges for civil aviation security, which will follow the user pays principle, will be applied proportionately, depending on the scale of the operations of the regulated entity. These charges will be directly associated with the level of inspection and oversight provided by the IAA to ensure that the entities comply with EU security requirements and those of ICAO.

The other element of the draft Bill involves technical provisions to formally align the existing system of regulatory oversight provided by the IAA with ICAO Annex 17, which sets out standards and recommended procedures in the area of civil aviation security. As mentioned earlier, in 2013 responsibility for civil aviation security, as set out under EU law, was transferred from the Department to the IAA. This was done through secondary legislation. Primary legislation is required to do the same for the largely overlapping ICAO provisions, and so this Bill also provides an opportunity to do so. In practice, since 2013, the IAA has maintained regulatory oversight against the national civil aviation security programme, which includes all national and international civil aviation security requirements, including EU and ICAO requirements.

I will now turn to the specific draft heads of the Bill, as presented to the committee, of which there are three. The proposed amendments are interlinked, and I hope they are satisfactorily explained in the explanatory note included in the general scheme circulated to the committee.

The purpose of head 1 is to formally designate the IAA as the appropriate authority for the purpose of ICAO Annexe 17 and, therefore, to allow it to make orders and charge fees in relation to civil aviation security oversight and inspection. Head 2 is related to head 1, in so far as it provides an amendment to section 14(1) of the Irish Aviation Authority Act 1993 to include within the objects of the company activities related to civil aviation security. Again, this serves to provide a legal basis for charging on a cost recovery basis.

Head 3 is required to ensure that the Act reflects current policy regarding the role of the IAA in the area of civil aviation security oversight and inspection. It provides for the deletion of section 5 (10) of the Act. This overall approach follows the policy principle that underpins cost recovery for civil aviation regulation in other areas. Under the revised Act, the IAA will be required to consult regarding the manner and level of the new fees, and these fees will be required to be proportionate. For the benefit of the committee's consideration of this aspect, it is important to note that the fees currently charged by the IAA with respect to its other regulatory functions are very competitively priced within a European context.

The broader context for our ongoing work in this area is that airports and aviation have traditionally, and continue to be, a focus for terrorist attacks. As we have unfortunately seen too much of in recent times, such terrorist attacks can strike at any time in any place without warning. Quietly, in the background, as part of a wider counter terrorism strategy, all States are making efforts to reinforce existing controls at airports and within the aviation environment. These legislative amendments are part of the process to ensure Ireland continues to have a robust civil aviation security oversight regime, and is seen by the international community as having such a regime. It is also hugely important for the aviation industry in Ireland that it can rely on a robust aviation security regime. This is also the case for our exporting companies, which depend on the airports to get their goods to overseas markets.

I look forward to hearing the views of the committee this morning, and I hope we will be able to provide the members with as much information as is required to satisfy them as to the merits of this proposed legislative amendment. If the Chairman and the members are agreeable, I may from time to time defer to my colleague from the Irish Aviation Authority on specific matters relating to operations, as opposed to policy. In that respect, however, it is also necessary to point out that some operational matters are of a highly confidential nature and, therefore, there may be certain instances where we will be unable to comment in any great detail, certainly on specific operational practices, which might risk compromising the security regime. I hope this will not prove to be too much of an issue during the course of the committee's deliberations this morning.