Presentation Title SESSION 4: THEME 2

1
Presentation Title SESSION 4 THEME 2
Establishing and Sustaining an RSOO              
              Topic 2.2 Funding, financial and
technical assistance                           
2.2.1 Establishment of a funding mechanism to
ensure the sustainability of an RSOO

• Name of presenter
• Seiuli Alvin W. Tuala
• Title of presenter,
• General Manager, Pacific Aviation Safety Office
  (PASO)
• ICAO International Symposium on RSOO, Montreal,
  Canada, 26-28 October 2011.

2
Establishing and Sustaining an RSOO

• Establishment of a funding mechanism to ensure
  the sustainability of an RSOO.
• The Pacific Aviation Safety Office (PASO) is the
  Regional Safety Oversight Organisation in the
  Pacific carrying out functions under the PICASST
• PASO was created to provide services utilising a
  number of technical experts to members on a
  fee-for-service basis.
• This arrangement in an area of limited aviation
  activity requires a wide utilisation of services
  by all States to be effective and ensure self
  sufficiency.
• This type of regional approach is supported by
  ICAO for use in regions with limited activity and
  resources such as the Pacific Island region.

3
Establishing and Sustaining an RSOO

• Hurdles
• Utilisation of PASO services has been hampered
  due to the funding mechanisms employed.
• States are required to provide large pre-payments
  for annual work plans including unscheduled work.
  
• Existing system is ultimately a user-pays model,
  the nature of highly concentrated large payments
  make the system difficult for States to budget
  for.
• large amounts requested of governments for
  pre-payed work plans.
• Difficulties in dealing with operators that
  receive large invoices for work completed and
  collection of payments.
• As a guide the annual work plans for PASO states
  range from AUD30,000 for small States up to
  AUD300,000 for larger States.

4
Establishing and Sustaining an RSOO

• PASSENGER LEVY MODEL
• the most effective and attractive system
• commonly used by regulatory authorities
  internationally, including two of our members,
  (Australia and New Zealand)
• removes the requirement for central government
  funds for oversight
• gradually collected over the year from airlines
  through the revenues from passenger tickets.
• allows State approved oversight activity
• relieves many of the larger financial issues for
  governments, regulators and operators while still
  achieving the appropriate user pays regime
  intended by the operation of an RSOO (PASO).
• Upper Airspace funds for safety oversight.

5
Establishing and Sustaining an RSOO

• Conclusion
• It is anticipated that following the
  implementation of an appropriate funding
  mechanism, the uptake of regulatory oversight
  services will significantly increase due to
  removal of major financial restrictions from
  government funding requirements.
• Compliance levels with ICAO Standards will
  increase due to higher levels of oversight and
  RSOOs like PASO will achieve self sufficiency
  within a time frame to ensure ongoing oversight
  services can be maintained by member states.

6
Establishing and Sustaining an RSOO

• Faafetai/Thank you
• Seiuli Alvin W. Tuala
• General Manager
• Pacific Aviation Safety Organisation
• PO Box 139, Port Vila
• Republic of Vanuatu,  (UTC 11) 
• Phone [phone]
• Fax     [phone]
• Mob    678 5544404
• Email gm_at_paso.aero
• Website www.paso.aero