I move: "That the Bill be now read a Second Time."
The purpose of the Bill is to close a loophole in the Air Navigation and Transport Act, 1965, which has been revealed by a recent case. Under the Air Navigation and Transport Act, 1965, an authorisation is required from the Minister for Transport and Power to operate an air service. Air service is defined in the Act as a "flight carrying passengers, cargo or mail for reward". In 1966 the then Minister made an order under the Act which grants a general authorisation mainly for flights which are the subject of international agreements such as scheduled flights governed by bilateral agreements. Other air services including most charter or non-scheduled flights require my specific authorisation. In considering applications for authorisations from foreign carriers for charter flights, whether passenger or cargo, my Department have regard, inter alia, to Aer Lingus and Aer Turas, a cargo carrier.
Recently a US owned and registered aircraft carried cattle from Shannon to the Continent on behalf of a farmer, without an authorisation. It was claimed that the aircraft was leased to the owner of the cattle and that consequently the flights, not being carriage for reward, did not fall within the definition of air service under the Act. The lease in question, the validity of which has been challenged by me, provided for the hire of the aircraft for one month at a cost of $10 plus other, unspecified, valuable considerations. The matter is the subject of High Court proceedings.
The case, however, reveals a loophole in the provisions of the 1965 Act relating to the operation of air services. Anyone who has goods or people to transport on own account by air could do so without an authorisation by entering into an arrangement to lease an aircraft for a very short period or even for one flight. A group of persons or firms could combine to lease an aircraft between them and use it freely for the carriage of goods owned by each of them individually. Such an arrangement could apply to incoming as well as outgoing flights. There are many foreign non-scheduled air carriers and leasing companies who would be only too anxious to enter into such arrangements and by price cutting to undermine the services provided by the Irish carriers and by reliable and reputable foreign carriers.
Such a device, if extensively used, would frustrate the objectives of the relevant provisions of the Air Navigation and Transport Act, 1965. Apart from the protection of the Irish carriers, the application and administration of the provisions of the Act make for orderly development of civil aviation, an objective enshrined in the Chicago Convention of 1944 subscribed to by most countries of the world engaged in civil aviation.
The effect of the proposed amendment would be to bring all flights where passengers, cargo or mail are carried within the scope of the authorisation provisions of the Act. This is necessary in order not only to cater for the case of leasing but also the possible cases of temporary and doubtful "sales" of aircraft effected for the purpose of circumventing the provisions of the Act. The proposed new control encompasses certain classes of flights hitherto not subject to authorisation and which are freely allowed. These include emergency flights, pleasure flights, flights by small aircraft. I propose to authorise such classes of flights by way of including them under the general authorisation effected by the Air Services Authorisation Order, 1966 and so removing from them the requirement of obtaining individual authorisations.
In recommending this Bill to the House, I should like to emphasise that it is not to be taken as an attempt by the legislature to over-rule the Judiciary. The Bill is merely for the purpose of plugging a loophole in the statutory controls which the case in question has revealed.
