TNAG-1518-FCO40-2079-Hong-Kong-International-Airport-1986 — Page 34

1'

3.

(a)

2

to evaluate the advice given by HMG in relation to

limitations placed upon the overall level of surplus

which may be generated on Airport and Route Air

Navigation facilities and the extraction of any part of

that surplus as "community dividend";

(b)

arising out of (a) to consider alternative medium term

charging policies and the implications thereof;

(c)

arising out of (b) to recommend to the DCA a favoured

medium term charging policy.

2.2

The report and recommendations which follow address these

terms of reference.

2.3 Membership of the WG comprised:

C.E. Jones, Chief Treasury Accountant, CAD

P.J. Heady, Principal Assistant Secretary, ESB

P. Brooke, Finance Officer (MA), FB

Evaluation of HMG Advice

3.1

An exchange of correspondence and notes of a meeting between

one WG member and DTP representatives provide the substance

of HMG advice. These are reproduced at Appendix 1.

3.2

Inter alia, HMG's advice takes into account:

(a) Statements of the International Civil Aviation

Organisation (ICAO) on User Charges;

(b)

the charging policies adopted by the British Airports

Authority (BAA) in the light of earlier disputes

between the BAA and airlines, the related HMG/USA

Government Memorandum of Understanding etc.; and