International Civil Aviation Organization Presentation Title SESSION 4: THEME 2 – Establishing and Sustaining an RSOO Topic 2.2 – Funding, financial and technical assistance – 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, October 2011.

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. 2Project title (Insert, Header & Footer)

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 AUD$30,000 for small States up to AUD$300,000 for larger States. Project title (Insert, Header & Footer)

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. 4Project title (Insert, Header & Footer)

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. 5Project title (Insert, Header & Footer)

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: Fax: Mob: Website: 6Project title (Insert, Header & Footer)