Senator CONROY: Is it still the case that CASA has been asked to identify the $12 million dollars in savings to industry within your portfolio?
Mr Farquharson : That is correct.
Senator CONROY: Can I refer to the one saving identified by CASA—and you may have heard it mentioned already today—part 21: which additional countries—and I think we may have got some information earlier today, Mr Mrdak?
Mr Mrdak : We did.
Senator CONROY: But for the purpose of mutual recognition in relation to aircraft airworthiness, I think we got that list earlier. Do you have it handy, Mr Farquharson?
Mr Farquharson : Mr Boyd will be able to assist us.
Mr Boyd : I do not have the list in front of me, but I think your question referred to some savings that were identified—
Senator CONROY: I am asking which countries under a particular one—21?
Mr Boyd : That are listed as preferred countries, we have—
Senator CONROY: That are now recognised by Australia for the purposes of mutual recognition, which has been done as a saving?
Mr Boyd : Years. That particular exercise was not part of the savings for that particular point you are making. That part 21 provision that claimed the savings was actually against defects that were being assessed against various defects within aircraft. In fact, the saving was not against the provisions for the recognised countries; it was actually another part of 21.
Senator CONROY: Okay. Could you explain to the committee how those savings have been calculated? Are you finding fewer defects or are you looking for fewer defects?
Mr Boyd : No, it was a mechanism allowing operators and maintenance control organisations to be able to manage the defects in a manner that was both safe but also more effective.
Senator CONROY: And what was that process change?
Mr Boyd : Perhaps I could call on our executive manager standards to give you more technical details.
Senator CONROY: Yes, that would be great.
Mr Ward : In relation to the cost saving that you are inquiring about, the amendment was made to part 21 to provide the operators with greater opportunity and flexibility to manage the deferral of defects on their aircraft. The deferral of those defects in all cases needs to be assessed against the appropriate design and certification standards for the aircraft.
It introduced some additional flexibility that the operators did not have and would, in other circumstances, have required them to revert to CASA to get that approval.
Senator CONROY: So they do not have to tell you anymore that they have done it?
Mr Ward : No, what they have to do is defer the defect in accordance with a process and procedure and make the engineering assessment to the design standard that is applicable to the deferral of that defect.
Senator CONROY: Unfortunately, it is late at night so I am not just quite following exactly what that means in English.
Mr Ward : Okay. There are a number of mechanisms that allow an operator to defer a defect on an aircraft.
Senator CONROY: What does 'defer a defect' mean? A defect is still a defect; what you mean is defer the repairs to a defect?
Mr Ward : That is correct—defer the repair of the defect. In some cases, the manufacturer will provide pre-approved documentation that will allow you to defer the repair of the defect to a later point in time. In other cases, the deferral of the defect to a later point in time can be justified through engineering analysis of the defect to the design standard for the aircraft.
Senator CONROY: Okay. So this is a paperwork issue that allows you to defer repairs to defects?
Mr Ward : That is correct.
Senator CONROY: So currently, you require them to repair the defect? They do not have access to this pre-approved paperwork?
Mr Ward : They have access to some of the pre-approved paperwork, but what the change to the legislation did was to introduce or allow another mechanism that they previously did not have access to. So it gave them greater flexibility.
Senator CONROY: So what was the other mechanism?
Mr Ward : That was to allow them to do the assessment against the design standard. Previously they would have had to approach CASA for an exemption to operate the aircraft.
Senator CONROY: Right. Okay—I might come back to that in a second. I just want to come back to your answer, Mr Boyd. Did you provide us with the answer to question 74 from the last estimates?
My reading of that answer is the exact opposite to the answer you have just given us, which is that it was not part of the savings. My reading of this answer is that it is part of the savings.
Dr Aleck : We do not appear to have question 234 in our packs. Could you read it to me?
Senator CONROY: It says:
The Civil Aviation Safety Authority … is progressing initiatives to change a number of regulatory and service delivery processes to minimise the regulatory compliance and/or administrative burden …
These initiatives include:
- amendments to Part 141 of the Civil Aviation Safety Regulations … to reduce the complexity of flight training organisation approvals;
- amendments to CASR Part 61 …
… … …
- amending CASR Part 21 …
You state that this is part of this and then you just told the committee a moment ago that it was not part of this.
Mr Boyd : The part that we did amend, that was part 21, as Mr Ward just explained, to do with the defect referral process. That is part of part 21.
Senator CONROY: Maybe it is late and I am still a bit slower than I should be. You are saying that this is not part of a savings-to-industry measure?
Mr Boyd : What I am saying is that CASA part 21 was part of the industry savings measures, but the provision within part 21 was the provision that Mr Ward has just explained.
Senator CONROY: So it is part of the savings measures?
Mr Boyd : Yes.
Senator CONROY: Which was the part that was not part of the savings measures?
Mr Boyd : The part to do with the recognition of other approvals from overseas.
Senator CONROY: That was done and has nothing to do with this?
Mr Boyd : No, it had nothing to do with the savings measures.