Airport Authority Lease Monitoring
Description of the Initiative
To reduce the burden on airport authorities related to lease monitoring, Transport Canada (TC) will complete the implementation of its risk management strategy with a view to reducing red tape for airport authorities, notably in minimizing the number of physical site audits.
How will Red Tape be reduced?
Red tape will be reduced by continuing to refine the airport and port authority stewardship program through a three year process that began in 2009-10. A new risk management strategy has been developed and is being implemented at all airports that form part of the National Airports System. This strategy evaluates the level of risk associated with each aspect of an airport authority’s contractual obligations and focuses monitoring activities on high risk/high impact areas, thus reducing the frequency of on-site monitoring. This initiative has also led to the centralization in Headquarters of the property management and governance aspects of these program functions. The result is a streamlined airport lease monitoring process, with increased efficiency.
How will business benefit?
Business will benefit in the following ways:
- Improved timelines for the review and approval of lease monitoring reports.
- Reduced frequency of on-site monitoring visits. Through the use of the new risk management strategy, on-site visits for lease monitoring purposes will be on a 3-5 year cycle, instead of the current annual visits. Safety and security-related visits will remain on their normal schedules.
- Increased efficiency through the identification and delineation of high and low-risk focus areas. Low-risk routine monitoring items will be addressed through signed attestations from airport authorities, allowing for on-site visits to focus on high-risk areas and outstanding issues.
It is anticipated that the overall result will be a process that is less repetitive, more efficient, and less imposing on the time and resources of airport authorities. This will benefit airport authorities by reducing the number of times they must host a site visit (audit), and therefore, the number of times they collate information for said audit. It is estimated that individual audits occupied 3-4 days for each airport authority (includes preparation work and site visit). Before the implementation of this risk-based approach, 22 audits were conducted annually. With this new approach, it is expected that as few as 5 audits will be carried out annually, typically lasting 1-2 days.
It is anticipated that this initiative will result in average annual reductions of administrative burden on airport authorities of between $20,000 and $30,000.
Who are the participating Departments?
What are the implementation milestones?
Given that the commencement of this initiative preceded the red tape reduction exercise, many of the facets of its implementation are already established and the results are already being experienced.
By 2012/13, the following milestones are expected to be fully achieved:
- $1.7 million in departmental savings
- Compliance baseline for each NAS site
- Positive overall feedback (i.e. 60% of respondents respond positively to new approach)
- The average number of days/hours spent on lease monitoring site visits and report preparation activities will be 2 days per airport per year
- No severe compliance issues and less than 4 recurring or unresolved compliance issues.
The benefits of reduced administrative burden related to lease monitoring activities will accrue to most of the airport authorities by 2012/13.
What are the performance indicators?
Indicators of how well the plan is implemented:
- Positive feedback received from the airport authorities and a positive assessment of the types of complaints, if any, received from the airport authorities.
- The average number of days/hours spent on lease monitoring site visits and report preparation activities should meet the target of 2 days per airport per year.
Indicators of how well the plan has achieved its objectives:
- Departmental financial savings target achieved through the implementation of the response plan.
- The number of lease monitoring site visits conducted over a 3 year period of time should meet the target of 1 per airport authority.
- The number and severity of compliance issues identified under the new approach should be reduced.
For more information
- Government-Wide Forward Regulatory Plans
- The Cabinet Directive on Regulatory Management
- The Red Tape Reduction Action Plan
- The Canada–United States Regulatory Cooperation Council
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