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1 Civil aviation Bill 1 (1977)

handle is hein.pio/hcbillaaozl0001 and id is 1 raw text is: Civil Aviation Bill LISI.,.tgli EXPLANATORY AND FINANCIAL MEMORANDUM Clauses 1 to 4 of the Bill provide for an Aviation Security Fund from which payments may be made in respect of expenses incurred for the purpose of protecting aircraft, aerodromes or air navigation installations against acts of violence or in connec- tion with the policing of airports. The Protection of Aircraft Act 1973 enables reimbursement of aviation security expendi- ture to be made to airlines, airport authorities and authorities responsible for air navigation installations in the United Kingdom out of monies voted by Parliament ; and the Policing of Airports Act 1974 enables reimbursement out of such monies to airport authorities of the costs attributable to aviation security measures under the Act. Clause 1 establishes the Aviation Security Fund and provides that payments under the 1973 and 1974 Acts shall normally be defrayed out of the Fund. Clause 2 sets out the bases for regulations requiring con- tributions to be made by aerodrome authorities to the Fund. Clause 3 deals with the Secretary of State's borrowing powers in respect of the Fund. Clause 4 enables the Fund to be wound up. Clause 5 provides for an increase in the borrowing powers of the Civil Aviation Authority and the British Airways Board. The Civil Aviation Act 1971 imposes a limit of £75 million on the aggregate of the CAA's initial debt and borrowings and this limit would be raised to £125 million. There is also pro- vision for the CAA to borrow in excess of that amount for the purpose of paying off a loan or the initial debt ; the BAB already has this power. The clause provides for the limit upon borrowings by the BAB to be increased by affirmative resolu- tion from £700 million to a maximum of £850 million. The clause also amends section 8(1) of the Act of 1971 to allow the CAA to borrow temporarily from the Secretary of State as well as from others with his consent or authorisation, given with the approval of the Treasury. Clause 6 requires the CAA to act on lines approved by the Secretary of State in carrying out proposals involving the hiring, as an alternative to purchase, of equipment which, if purchased outright would involve substantial capital outlay. The CAA is already required to act in this way in respect of capital purchases. Bill 41 47/4 1 97 7 - 7 E'3

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