Some background. Cost recovery will be here to stay.
Cost recovery has been a feature of the provision of aviation regulatory services since 1956. The first in-depth approach to develop a policy for recovery of aviation fees and charges was the 1984 Report of the Independent Inquiry into Aviation Cost Recovery, known as the Bosch report after its Chairman, Mr Henry Bosch. The review considered all Government aviation costs of which the costs generated by the safety regulation function was only a small component. This component was specifically addressed by the review and their conclusions (Chapter 19 of the Bosch Report). In summary, the Bosch Report recommended that the Government continue to fund the standards setting and compliance functions of the regulator and to increase the level of cost recovery for aviation safety regulatory services, achieving full cost recovery over a ten year period.