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Aviation: CAA Funding

Volume 689: debated on Tuesday 20 February 2007

asked Her Majesty's Government:

Whether they have any plans to review the funding arrangements for the Civil Aviation Authority. [HL1944]

The Government have no plans to review the Civil Aviation Authority (CAA) funding model. The House of Commons Transport Committee reported in 2006 saying “the basic principle of the existing model, in which the CAA recovers its costs from those it regulates, is fair, and we are reassured to note that other European states are moving towards this model”. The committee did, however, recommend reviewing the level of the CAA's required rate of return on capital employed. The Government will respond to the committee's report shortly.