Ivor Callely (Dublin North Central, Fianna Fail)

I thank you, a Chathaoirligh, and the House for accommodating this Bill. Many people have asked me what the Bill is all about. In brief, the Air Navigation (Eurocontrol) Bill 2005 is all about improving and modernising Eurocontrol in air traffic management. The benefits to the commuter should be the prevention of airline delay, improved safety and integration with other European players. The main purpose of this Bill is to give effect to the International Convention relating to Co-operation for the Safety of Air Navigation signed at Brussels on 13 December 1960, as consolidated by the protocol signed at Brussels on 27 June 1997.

Eurocontrol, the European organisation for the safety of air navigation, was established by an international convention in 1960. The provisions of the 1960 convention were given effect in the Air Navigation (Eurocontrol) Act 1963. The formal accession of Ireland to the Eurocontrol organisation came into force on 1 January 1965. Membership of the organisation has continued to grow and has now reached 35 states, including all EU member states except Estonia, Latvia and Lithuania. The accession of the European Community to Eurocontrol took place on 8 October 2002.

Eurocontrol is the European organisation for the safety of air navigation. It currently numbers 35 member states and has as its primary objective the development of a seamless, pan-European air traffic management system. The achievement of this objective is a key element to the present and future challenges facing the aviation community, which are to cope with the forecast growth in air traffic, while maintaining a high level of safety, reducing costs and respecting the environment.

Eurocontrol develops, co-ordinates and plans for the implementation of short, medium and long-term pan-European air traffic management strategies, and their associated action plans, on a collaborative basis. It is a collective effort involving national authorities, air navigation service providers, civil and military airspace users, airports, industry, professional organisations and relevant European institutions. Its core activities span the entire range of gate-to-gate air navigation service operations, from strategic and tactical flow management to controller training, from regional control of airspace to the development of leading edge technologies and procedures, and the collection of air navigation charges.

Since the 1960 convention a number of protocols have been adopted. Two of these dealt with tax provisions while the third protocol of 12 February 1981 was a multilateral agreement on route charges. This provided for a common policy and joint system for the establishment and collection by Eurocontrol, on behalf of the contracting parties, of en-route air traffic control charges in European airspace covered by the agreement.

The convention provisions and its subsequent protocols were given effect in Irish legislation by the Air Navigation (Eurocontrol) Acts 1963 to 1983. These Acts were subsequently repealed and the provisions of the convention and subsequent protocols given effect in the Irish Aviation Authority Act 1993. The Irish Aviation Authority is required under that Act to implement specific provisions of the Eurocontrol convention.

A revised Eurocontrol convention was concluded following several years of negotiation. The changes represent a major revision of the convention and are designed to update it to take into account progress made in the area of air navigation services. The final Act to the convention and the protocols amending and consolidating the text of the Eurocontrol international convention were signed by Ireland, subject to ratification, on 27 June 1997. The revised convention will come fully into force when it is ratified by all member states. To date 26 of the 35 member states have ratified it.

The amendments are designed to strengthen the co-operation between contracting parties via joint activities in the field of air navigation. These objectives do not prejudice the principle that every state has complete and exclusive sovereignty over the airspace above its territory, nor the capacity of each state to exercise its prerogatives with regard to security and defence in its national airspace.

The main provisions of the revised convention include the following: an updating of the objectives of the organisation, commensurate with its current and possible future activities; a new institutional structure for formulating and implementing the organisation's policy; an expansion of the tasks of the organisation to achieve a European air traffic management system; more effective decision making based on majority voting; and an enabling provision for European Community membership of Eurocontrol. At approximately the same time as the signature of the revised convention, EU member states agreed in principle to Community membership of Eurocontrol as the most appropriate way for the Community to exercise its competence in air traffic management. Negotiations between the European Commission and EurocontroI subsequently resulted in the text of an agreed accession protocol in 2002.

Signature of the accession protocol took place at a diplomatic conference held on 8 October 2002. Signature of the final Act and the protocol on the accession of the European Community by Ireland was approved by Government at a meeting held on 11 June 2002. This Bill contains a reference to the protocol in the definition of the Eurocontrol convention, which will allow Ireland to ratify the accession protocol. The accession of the European Community to Eurocontrol was the culmination of negotiations aimed at ensuring consistency between the two organisations as they work together to develop the European air traffic management system. This move was followed by the conclusion of a memorandum of co-operation between the two organisations in December 2003, establishing a framework for mutual co-operation and support in five areas, namely, the implementation of the single European sky, research and development, data collection and analysis in the areas of air traffic and environmental statistics, satellite navigation and international co-operation in the field of aviation.

It is important to explain what is meant in this context by the single European sky. The European Union's single sky and the revised Eurocontrol convention are deeply interlinked initiatives designed to tackle structural inefficiencies in European air traffic management. The approach represents, in many respects, a marriage of the technical expertise of Eurocontrol with the political and legal wherewithal of the Union. In the late 1990s the sharp rise in European air traffic led to substantial air traffic control delays. People here may have experienced such delays, but we hope to avoid them in the future. We manage traffic on the ground. Therefore, it is only right that we manage the growth in air traffic with our partners to avoid delays so that air passengers can travel safely without delay.

The delays experienced prompted the European Commission to launch its own initiative, with the issue in December 1999 of its communication on the creation of the single European sky. Significant progress has been made on the move towards implementing the single European sky policy, which attempts to reform the current air traffic management system. Air traffic management in Europe, with 73 air traffic control centres operating in the pan-European airspace, is fragmented and faces capacity constraints. An estimated 350,000 flight hours a year are wasted due to inefficient air traffic management and airport delays.

The European Commission has proposed a regulatory approach in the area of air traffic management with the objective of achieving a harmonised approach to safety, the regulation of air traffic services, technical interoperability of systems and airspace design and management at a European level. A key element of the institutional arrangements is the single sky committee which provides a mechanism for collaboration between member states' civil and military authorities on airspace allocation and use. The single sky is the best means of overcoming the current institutional and structural problems that exist in the European air traffic management system and offers an effective process for securing member states' compliance with agreed system improvements.

The single European sky initiative marks the beginning of a new dramatic and exciting chapter in European air traffic control. The development of the proposals is both a challenge and an opportunity for air navigation service providers to demonstrate in a practical way the greater efficiencies that can be obtained through the integration and development of services on a European scale while ensuring uniformly high safety standards throughout Europe. A single sky committee, chaired by the Commission, will oversee the preparation of implementing measures to establish the appropriate regulatory framework.

These proposals envisage Eurocontrol acting as the technical advisor to the single sky committee and playing a significant role in defining and developing rules in accordance with mandates given by the European Union. The Commission sees Eurocontrol reflecting the single European sky rules across its membership and therefore achieving some of the single sky objectives in the wider European sphere. At the same time, the intention is that the single sky committee would adopt Eurocontrol's own rules when these were considered appropriate. In this way, the synergies between the two organisations can be meaningfully developed.

The single European sky legislation has implications for the organisation and management of air traffic control services in Ireland and will require changes to the Irish Aviation Authority as service provider and regulatory authority for air navigation services. These developments and other evolving policies at international level give rise to the need for a critical examination of the structure and functions of the IAA, with a view to ensuring continuation of the highest safety standards, maximising organisational and operational efficiency and ensuring alignment with international and European air navigation and safety policies.

The single European sky regulations require that all air navigation service providers be certified. Certification encompasses air traffic services, meteorological services for air navigation, aeronautical information services and communications, navigation and surveillance services. Common requirements for the certification of air navigation service providers, when adopted, will cover a range of criteria including technical and operational issues. Air navigation service providers will also be required to demonstrate suitability in the areas of ownership and organisational structure and human resources, including adequate staffing plans and security.

These criteria provide the foundation for national supervisory authorities to certify service providers. Only validly certified air navigation service providers can then be designated to provide air traffic services on an exclusive basis within specified, constituent airspace blocks of the national airspace. The safety regulation division of the Irish Aviation Authority has been nominated as Ireland's interim national supervisory authority.

While Eurocontrol was previously almost exclusively concerned with air traffic management activities for the en route segment, the revised convention has considerably extended the scope of its activities to include the entire spectrum of air traffic services. These changes enable the following: the introduction of independent performance review and target setting; improvements to safety regulation; strengthened policy and planning for the airport air traffic system interface as part of the gate-to-gate concept; improved airspace design processes; improved standards making; the provision for common design and procurement of systems; enhanced research, development, trials and evaluation and more effective introduction of new technology; enhanced user consultation and/or involvement; and enhanced global co-operation and influence.

With the growth in air traffic and the expansion in membership, it was recognised that the previous unanimous decision-making structure was unwieldy. Under the revised convention, most decisions can be taken by a majority vote. The revised convention will enable Eurocontrol to pass binding decisions on contracting parties in the fields of air safety, which is seen as a significant step in the right direction towards a more harmonised and safer European air traffic management system.

Even though the revised convention will not come into force until all contracting parties have individually ratified it, contracting parties agreed to implement certain provisions of the revised convention early. These have included the expansion of the scope of the organisation's activities, establishment of the provisional council and advisory bodies to it and delegation of broader executive powers to Eurocontrol and its director general for the day-to-day running of the organisation. These important developments have enabled Eurocontrol to function more effectively.

The Commission sees Eurocontrol reflecting the single sky rules across its membership and therefore achieving some of the single sky objectives in the wider European sphere. At the same time, the intention is that the single sky committee would adopt Eurocontrol's own rules when these were considered appropriate. In this way, the synergies between the two organisations can be developed, which is the correct way to move forward. Eurocontrol can play an important role in bridging the gap between EU states, under the new ATM regulatory structure being devised under single sky, and the non-EU contracting parties and will also continue to act as the main technical support body for Europe's air traffic management industry.

The Bill amends the Irish Aviation Authority Act 1993 and also makes provision for related matters. Specifically, the Bill reflects changes in the management structure of Eurocontrol and provides for the making of regulations requiring the Irish Aviation Authority to comply with any conditions laid down for the operation of a common European air traffic flow management system at a common international centre. Eurocontrol already operates such a centre, the central flow management unit based in Brussels, which has worked well with national air traffic service providers over a number of years. Furthermore, the Bill provides that Eurocontrol officers may give evidence in Irish courts and also provides for such officers to carry out on-the-spot inspections.

Government policy on air navigation services is designed to ensure that Irish-controlled airspace is operated safely with maximum efficiency and effectiveness and that the highest internationally set and agreed safety standards are applied to the operations of Irish airspace and those using it. This policy is based on standards that are set internationally, mainly through the International Civil Aviation Organization convention to which Ireland is a signatory. Effect is given to this policy through the Air Transport and Navigation Acts and the Irish Aviation Authority Act 1993. Both Government policy and the development of these standards are designed to ensure continuing acceptable passenger and aircraft safety levels.

Having regard to the largely executive nature of air navigation and safety regulatory functions, the requirement to ensure that these remain responsive to market needs and the desirability of capitalising on its potential for additional commercial and employment opportunities, the Government assigned these functions to the Irish Aviation Authority in 1994. The Irish Aviation Authority has responsibility for regulating the technical and safety aspects of civil aviation and the provision of air traffic standards. In its regulatory capacity, it oversees the safety standards in the operation, maintenance and airworthiness of Irish registered aircraft, the Irish air navigation services, Irish airlines and aircraft maintenance organisations, the competency of Irish pilots and aircraft maintenance engineers and the operation of Irish aerodromes. In fulfilling its role, the Irish Aviation Authority operates to international safety standards and procedures as laid down by the International Civil Aviation Organization and all other European and international regulatory organisations.

I now turn to the main provisions of the Bill. Section 1 defines the 1993 Act as the Irish Aviation Authority Act 1993, while section 2 provides for miscellaneous amendments to the 1993 Act reflecting the new and more streamlined organisational arrangements within Eurocontrol and updating the penalties contained in section 74 of the 1993 Act. Section 3 provides for amendment of Part III (Eurocontrol Convention) of the 1993 Act to delete references to the statute of the agency and the multilateral agreement on route charges, which are incorporated into the new convention. This section also empowers the Minister to make regulations for the purpose of giving effect to the common European air traffic flow management system at a common international centre, specified in Articles 2(e), 7.2(d) and 19 of the new convention, and ensuring compliance with that system by way of random checks and inspections and evidence in proceedings. Eurocontrol already operates such a centre, the central flow management unit based in Brussels, which has worked well with national air traffic service providers over a number of years.

Section 4 repeals section 67 of the 1993 Act on detention of aircraft. Subsections (a), (b) and (c) of section 67 relate to the transfer of powers from the Minister to the Irish Aviation Authority set out in section 32 of the Air Navigation and Transport Act 1988. Section 32 was repealed by the Air Navigation and Transport Act 1998 so these subsections are already in fact redundant. Subsections (d) and (e) of section 67 of the 1993 Act comprise textual amendments to section 41 of the 1988 Act, which also relates to the transfer of powers from the Minister to the Irish Aviation Authority. I am advised that the repeal of section 67 of the Act of 1993 in its entirety does not now affect the status of section 41 of the 1988 Act, as amended by section 67. I hope Senators have been able to follow all of that. Section 5 is a standard legislative provision that provides for the Short Title while the Schedule reproduces the text of the consolidated Eurocontrol Convention.

I have been advised that the Air Navigation (Eurocontrol) Bill 2005 represents a progressive and pragmatic way of managing the European air traffic control network in an efficient manner. It will reduce journey times, increase efficiency and improve safety. I am happy to commend the Bill to the House. I look forward to the contributions and comments of Senators.