ICB Industry Consultation Body

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1 ICB Industry Consultation Body ICB Position on evolution PRB 16/06/2016 Issue Proposed Position Paper Evolution of the PRB from 2017 The designation of EUROCONTROL as the Performance Review Body (PRB), acting through its Performance Review Commission (PRC) and supported by its Performance Review Unit (PRU) is due to expire at the end of This ICB position paper is based on a proposal for the evolution of the PRB set-up from 2017 developed by CANSO, IACA and IATA as part of the bilateral meetings and further developed and approved by the ICB. The Single Sky Committee will discuss and vote upon the set-up of the group of experts designated as the PRB of the Single European Sky from 2017 at the upcoming SSC meeting (SSC/61) on the 21 st -22 nd June. This paper is intended to inform this decision. Issue 1

2 1 BACKGROUND Industry Consultation Body The designation of EUROCONTROL as the Performance Review Body (PRB), acting through its Performance Review Commission (PRC) and supported by its Performance Review Unit (PRU) is due to expire at the end of The existing set-up of the PRB is outlined in Figure 1 below. Over a number of years, stakeholders have expressed concerns about the independence, transparency, stakeholder consultation and overall governance of the PRB. This resulted in the European Commission presenting a discussion during 2014 on the options for the setup of the PRB beyond the end of the current designation. No decision was made and during 2015 the Commission ran a competitive tendering process to source technical support for PRB from a third party contractor, i.e. from outside EUROCONTROL. However, this was cancelled late in 2015 with the EUROCONTROL designation being extended to the end of The Commission has now indicated that it will be bringing forward proposals with possible options for a future set-up of the PRB during This had been expected at SSC 60 (February), but was dropped from the agenda and is now timetabled for SSC 61 (June) including a vote. Figure 1 Existing set-up of the PRB Issue 2

3 2 PRB PROPOSAL FROM 2017 The main element of the proposal relates to the set-up of the PRB and its powers to oversee and manage the technical work required to implement the SES Performance Scheme. At the centre of the proposal is the full separation of the Performance Review Body from EUROCONTROL. This entails establishing an independent body, potentially as an EC agency, that advises the Commission on the implementation of the SES Performance Scheme. For the purpose of this proposal, that body is referred to here as New PRB. In order for New PRB to discharge its responsibilities as set out in the Performance Regulation (390/2013) 1, it would select, manage and fund technical support work from EUROCONTROL, PRU, EASA or, if required, other sources where determined appropriate, e.g. 3rd party commercial organisations. The decisions regarding which tasks to request from individual suppliers would be made by New PRB based on a clear work programme for 2017 onwards. In order to ensure the transparency of the New PRB, it is proposed that the New PRB selects the appropriate stakeholder consultation process to support them in their tasks and decision making, for subsequent approval by the Commission. Note that the current roles and responsibilities of the European Commission, PRB and the National Supervisory Authorities (NSA) in terms of target setting process, performance monitoring etc. are unchanged from the provisions set out in the Performance Regulation (390/2013). Figure 2 below outlines the proposed structure on the following page. 1 Scope of the Performance Scheme is as set out in the Performance Regulation (Commission Implementing Regulation (EU) 390/2013 laying down a performance scheme for air navigation services and network functions) and the Charging Regulation (Commission Implementing Regulation (EU) 391/2013 laying down a common charging scheme for air navigation services) Issue 3

4 Figure 2 Proposed set-up of the PRB from KEY FEATURES OF THE PROPOSAL A new entity New PRB : A body with appropriate legal personality, potentially an agency, to be established by the European Commission fully outside the EUROCONTROL organisation. Based on a selection process steered and managed by the EC, the New PRB would consist of a board of wise people drawn from relevant backgrounds and with appropriate skill sets, including ATM, airline, economic regulation (also from other industries), financial, etc. It is likely that they would need to be supported by a small programme management office carrying out the executive tasks, i.e. interfacing with the technical support suppliers. Transparent funding: The funding for the New PRB is expected to come from the European Commission. It would cover the necessary budget for all technical support services which New PRB would have authority to disburse as appropriate. Enhanced industry participation: The New PRB would select its own industry consultation mechanism, with approval by the Commission. The industry consultation mechanism would offer advice to the New PRB and review key outputs/inputs/processes ie the work programme, specification of tasks, priorities, allocation of funds to support activities, consultation processes, etc. This consultation mechanism would involve all industry stakeholders, with a broad geographical scope; it would not replace other stakeholder consultation arrangements. 2 Note: ATCEUC/ IFATCA/ IFATSEA have particular concern about ensuring that this Advisory Body does not compromise the independence of the PRB, and that new bodies are not created unnecessarily. Issue 4

5 Technical support from PRU and potentially other suppliers where appropriate: The New PRB would have the authority to select technical suppliers according to the required tasks. Decision making and Approval: The New PRB would be overseen by the European Commission who would approve the major decisions made by the New PRB, e.g. initial set-up, work programme, selection of technical supplier, etc. 4 RECOMMENDATIONS The ICB recommends that a new independent body is set up, New PRB, fully separated from EUROCONTROL, acting as an advisory body to the European Commission on the implementation of the SES Performance Scheme. This would ensure full independence from regulated entities, clear governance and improved transparency in the tasks and decisions of the New PRB. It is also recommended that the New PRB selects an appropriate industry stakeholder consultation mechanism (with the approval of the Commission) to provide greater visibility of the management processes of the Performance Scheme with the expectation that this should improve many processes, e.g. scoping of analysis tasks, stakeholder consultation, etc. resulting in improved implementation and stakeholder confidence in the Performance Scheme. The ICB recognises that this new set-up of the PRB is an intermediary step in the long term vision for an Independent Performance and Economic Regulator, the proposal for which the ICB will continue to develop. Issue 5