The professional team did the necessary research and investigations, and reported the results of the research and investigations to MANCOM and MINCAAM in working documents. The following working documents were prepared during the course of the study:

• Situational assessment, dated 12 August 1996
• Report on the formulation of policy on airspace management in New Zealand, dated September 1996
• Background information for the first plenary meeting, dated 17 September 1996
• Report on the first plenary meeting held on 17 September 1996, dated 27 November 1996
• Special report on the consolidation of issues for the MINCAAM workshop, dated 31 January 1997
• Issues document, dated 18 March 1997
• Working document on guidelines for a national policy on airports and airspace management arising from broad government policy, dated 6 March 1997
• Green Paper on National Policy on Airports and Airspace Management, dated June 1997.

Stakeholders were consulted at two plenary meetings which were held on 17 September 1996 and 19 May 1997 respectively, and at nine provincial workshops which were held during October and November 1996.

This document consists of six sections, the first of which is this introductory section.

Policy guidelines are formulated in Section 2. These were derived from broad government policy.

In Section 3, policies on airports and their operation are put forward, while Section 4 is devoted to airspace matters. Policies concerning the integration of airports into their environment are contained in Section 5. Human resource development and training are attended to in Section 6.

Annexure A provides a list of the terms and their meanings used throughout the White Paper. Annexure B contains a list of organisations, institutions and individuals who participated in the policy formulation process, and Annexure C, a list of organisations, institutions and individuals who submitted comments on the Green Paper. The abbreviations and acronyms used in this White Paper are listed in Annexure D.

This section describes the policy environment in which the policy on airports and airspace management was formulated. The section is concluded with the strategic objectives for this new policy, as well as the proposed basic principles on which the policy is to be based.

The policy on airports and airspace management has to be consistent with and complement the Government's broad strategic, economic and social objectives. For this reason it was necessary to consider the broad policy framework within which this functional policy had to be formulated. Broad government policy is contained in various policy documents, and implemented through various Acts of Parliament.

For the purposes of this study, the following four tiers of government policies were considered:

• The constitutional level
• General social and economic policies
• Transport policy
• Aviation policy.

The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), and the Constitutional Transformation Project (CTP) are documents of national importance and are discussed in detail later in this section.

The Government's policies on social and economic aspects are contained in a number of documents. Some of the more salient ones which were also considered during this study, are listed below:

• Reconstruction and Development Programme (RDP), 1994
• RDP White Paper, 1994
• Development Facilitation Act, 1995 (Act No. 67 of 1995)
• White Paper on the Development and Promotion of Tourism in South Africa, June 1996
• National Framework Agreement, February 1996
• Growth, Employment and Redistribution: A Macro-economic Strategy (GEAR), June 1996
• National Strategic Vision, 1996
• Discussion Document by the Government of National Unity on the Consultative and Implementation Framework for the Restructuring of State Assets, July 1995
• Proposal for a National Spatial Development Framework, August 1995
• Towards a National Growth and Development Strategy, 1996
• White Paper on National Defence, 1997
• White Paper on the Environment, August 1997
• Skills Development Bill, 1997.

The most recent transport policy directive issued by the Government is the White Paper on National Transport Policy. This White Paper reflects the Government's transport priorities in the context of its broad social and economic policies, hence the special attention given to this document. A detailed summary of transport policy objectives and principles is presented later in this section. The recently approved National Transport Bill, 1997, is also an important document, especially in the context of integrating airports into the land transport planning process.

The following aviation policies, along with the various aviation related legislation, were taken into consideration during this study:

• Domestic air transport policy, May 1990
• International aviation policy, March 1992
• Policy on State airports and air traffic and navigation services, July 1992.

Due to their importance, the Constitution, 1996, and the recently published White Paper on National Transport Policy, are discussed in more detail in the following subsections.

The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), which came into effect on 4 February 1997, provides for the supremacy of the Constitution and states that any law or act inconsistent with its provisions shall be of no force and effect, to the extent of such inconsistency. This means that all airports and airspace management legislation and policies must conform to the provisions of the Constitution, 1996, in order to be of any force or effect. For this reason, special attention was given to the provisions of the Constitution, 1996, in so far as these could have had an effect on the new policy on airports and airspace management. The Constitution, 1996, also specifically refers to airports, when allocating functions to national, provincial and local governments. Furthermore, some of the other functions allocated to the various spheres of government, in terms of the Constitution, 1996, also impact on airports and airspace management.

Schedule 4 of the Constitution, 1996, lists Functional Areas of Concurrent National and Provincial Legislative Competence. The functions which impact on airports and airspace management include -

• airports, other than international and national airports
• environment
• public transport
• regional planning and development
• road traffic regulation
• tourism
• trade and
• urban and rural development.

Part B of Schedule 4 lists local government functions. Those which are of relevance in the context of this policy, include -

• municipal airports and
• municipal public transport.

Schedule 5 of the Constitution, 1996, lists Functional Areas of Exclusive Provincial Legislative Competence. Some of the functions which are relevant in the context of this policy are-

• provincial planning and
• provincial roads and traffic.
• Schedule 5 also has a Part B, for local government matters. Some of the relevant matters listed in Part B include -
• municipal roads
• noise pollution and
• traffic and parking.

With regard to the functional areas listed in Schedule 4, both the national and provincial spheres of government may pass legislation. If there is any conflict, the provincial legislation prevails over national legislation, except in the following instances where national legislation prevails over provincial legislation:

• National legislation deals with any matter that cannot be regulated effectively by individual provincial legislation
• National legislation provides for necessary uniformity by establishing norms and standards, frameworks or national policies
• National legislation is necessary for the maintenance of national security or economic unity, the protection of the common market or the environment, and the promotion of economic activities across provincial boundaries and of equal opportunity or equal access to government services
• National legislation is necessary to prevent unreasonable action by a province, where such action is prejudicial to the economic, health or security interests of another province, or to the country as a whole.

Although the functional areas in Schedule 5 are exclusive provincial competencies, Parliament may, when it is necessary to maintain national security, economic unity and/or essential national standards, intervene in order to establish the minimum standards necessary for the rendering of services, or to prevent unreasonable action of one province towards another or to the whole country.

Chapter 11 of the Constitution, 1996, refers to the role of the security services. In particular, the South African National Defence Force (SANDF) is tasked to defend and protect the Republic. This role of the SANDF impacts on this policy and needs to be considered where necessary.

It is clear that the Constitution, 1996, does not provide detailed solutions for the allocation of functions and responsibilities between the three spheres of government, but only provides the principles and broad guidelines. The more detailed allocation must be negotiated between the different spheres of government. During 1994, the national Minister of Transport and the nine provincial Ministers of Transport negotiated such a division or allocation of functions and responsibilities through the CTP, which was finally approved by MINCOM on 23 January 1995.

The CTP concludes that civil aviation will remain primarily a national function, with the exception of airports other than international and national airports. The reasons for this are, firstly, that the main component of civil aviation entails the setting of minimum standards which are developed from international standards and recommended practices set by the International Civil Aviation Organisation (ICAO), established in terms of the Convention on International Aviation, 1944 (the Chicago Convention). The South African Government is a contracting State to the Chicago Convention and, therefore from a national level, obliged to adhere to these standards. Secondly, the DOT is involved with international air services which occurs within the framework of international bilateral agreements. Since both the setting of minimum standards and international relations vest in the national Government, the major part of civil aviation should be a national function. The CTP document also states that the administration of civil aviation functions by the DOT, in the guise of the CCA and the CDCAA, shall continue as in the past.

The CTP document points out that while the Constitution, 1996, refers to airports other than international and national airports, it does not provide any criteria for the classification of international, national and other airports. It goes on to suggest that the most appropriate interpretation (for its purposes) is that the reference to airports other than international and national airports is a reference to all airports other than those airports owned by ACSA. In other words, according to the CTP, the international and national airports referred to in Schedule 4 of the Constitution, 1996, are the airports owned by ACSA. (Refer to the latest developments regarding international airports of this White Paper).

The CTP further concludes that, in view of the overlap between civil aviation matters and other areas in which the provinces exercise powers, a consultative and coordinative relationship should be developed between the national and provincial governments. This could be achieved in a Civil Aviation Committee which would be similar to the Committee of Land Transport Officials (COLTO) and other coordinating committees, and which would also fall under MINCOM.

With regard to policy development, it is stated in the CTP document that civil aviation policy would largely be administered from one sphere of government. Provinces may develop their own policies with regard to airports other than international and national airports, but such policies will have to be addressed as part of the consultative process between national and provincial governments in the proposed Civil Aviation Committee.

Referring to the planning, construction and development of airports, the CTP document states that because of its safety regulation function in terms of international conventions, the national Government has an interest in the planning and location of all airports. The provinces' interest in all airports, irrespective of their classification, relates to the impact which any airport development may have on their other functions, for example with regard to -

• regional planning and development
• urban and rural development
• the environment
• tourism and trade and
• industrial promotion.

The CTP concluded, at that stage of the implementation of the Interim Constitution, that all airports not belonging to ACSA, local government or private owners would become provincial assets. These include airports at Mmabatho, Bisho, Umtata, Thohoyando, Thaba Nchu and Pilanesberg.

In conclusion, the CTP could be summarised as follows:

• Civil aviation will remain primarily a national function
• Consultation on matters relating to airports must take place between national and provincial governments
• The national Government's interest in the planning and location of airports relates to safety aspects, while provincial governments' interests relate to the impact of airports on other provincial functions
• All airports not belonging to ACSA, local government or private owners, would become provincial assets.

The White Paper on National Transport Policy acknowledges that the role of transport is the smooth and efficient interaction which allows society and the economy to assume their preferred roles. To perform this role, the White Paper states that policies in the transport sector must be outward-looking, shaped by the needs of society in general and the users or customers of transport, and by the economy that transport has to support. The White Paper also acknowledges that the priorities in providing and using the transport system should be consistent with those that have been set for the country as a whole. These priorities are summed up in the elements of the RDP. The White Paper therefore presents an interpretation of national priorities and policies for transport in general, but makes specific reference to aviation. Accordingly, the strategic objectives and policy principles embodied in the White Paper are of particular relevance to the formulation of a national policy on airports and airspace management.

The content of the White Paper is briefly summarised under the following headings:

• Visions and missions
• Transport goals
• Principles.

The White Paper on National Transport Policy sets out various visions and missions. Some of the more salient ones are quoted below:

Firstly, the overall transport vision for South Africa is important

"Provide safe, reliable, effective, efficient, and fully integrated transport operations and infrastructure which will best meet the needs of freight and passenger customers at improving levels of service and cost in a fashion which supports government strategies for economic and social development whilst being environmentally and economically sustainable." 

Secondly, airports and the airspace are part of the broader aviation sector. The aviation mission is therefore also significant:

"To maintain a competitive civil aviation environment which ensures safety in accordance with international standards and enables the provision of services in a reliable and efficient manner at improving levels of service and cost while contributing to the social and economic development of South Africa and the region. "

Thirdly, airports and the country's airspace are important components of the South African transport infrastructure. The vision for transport infrastructure is therefore quoted below:

"As part of the overall long-term vision for the South African transport system, transport infrastructure will -

Fourthly, the mission for transport infrastructure is equally important in this regard, and reads as follows:

"To provide an integrated, well-managed, viable and sustainable transport infrastructure meeting national and regional goals into the 21^st century, in order to establish a coherent base to promote accessibility and the safe, reliable, effective and efficient movement of people, goods and services." 

Fifthly, the mission for land passenger transport is also important because of the impact that airports have on their environment. The mission is quoted below:

"The promotion of a safe, reliable, effective, efficient, coordinated, integrated, and environmentally friendly land passenger transport system in South African urban and rural areas, and the southern African region, managed in an accountable manner to ensure that people experience improving levels of mobility and accessibility."

The above missions and visions were all considered in the formulation of the policy.

The transport goals in the White Paper on National Transport Policy can be summarised as follows:

• To support the goals of the RDP for meeting basic needs, growing the economy, developing human resources, and democratising decision-making
• To enable customers requiring transport for people or goods, to access the transport system in ways which best satisfy their chosen criteria
• To improve the safety, security, reliability, quality and speed of transporting goods and people
• To improve South Africa's competitiveness and that of its transport infrastructure and operations, through greater effectiveness and efficiency, to better meet the needs of different customer groups, both locally and globally
• To invest in infrastructure or transport systems in ways which satisfy social, economic, or strategic investment criteria
• To achieve these objectives in a manner which is economically and environmentally sustainable, and which minimises negative side effects .

The White Paper on National Transport Policy also defines a number of policy principles. These are summarised below. 

The White Paper recognises the fact that public policy-making is carried out in various spheres of government. This leads to national policy being broad in nature and providing the framework within which more detailed policy can be made in provincial and local government spheres. Relationships between the various spheres of government, therefore, need to be spelled out clearly in any functional policy.

Inter-governmental matters are the exclusive responsibility of the national Government. Therefore the national Government is responsible for liaising with the governments of other countries or with inter-governmental organisations.

The national Government will consult with provinces, where appropriate, with regard to relations between South Africa and its neighbouring countries, especially SADC countries.

On a regional basis, integrated transportation systems are required to link the South African economy with those of the region.

Shared responsibilities regarding certain transport activities will be a matter of negotiation and agreement between the national and provincial governments.

Where it is in the national interest to have uniformity, the national Government will play a major role. Where flexibility is required, or where there are reasons for different approaches in the different provinces, a joint approach may be appropriate, with the provinces legislating and implementing such approach as appropriate.

The integration and coordination of policy between national and provincial levels will be facilitated through MINCOM.

The devolution of responsibilities could be phased in, to enable the establishment of capacity in the provinces.

Relationships between provincial and local governments should be able to function with little involvement by the national Government.

The institutional positions of non-governmental statutory bodies, such as ACSA, Sun Air and Transnet are under review as part of the process of restructuring State assets, and proposals for structural, institutional and ownership arrangements have been accepted by Cabinet. In this regard, Sun Air, was privatised and the process of engaging a strategic equity partner in ACSA is underway.

The White Paper highlights the fact, and accepts as a principle, that certain elements of Government's current activities could be undertaken more efficiently and cost-effectively in specialised environments, resulting in higher levels of service to customers, and in such services being possibly paid for by direct or indirect user charges. This approach will be considered in cases where "economic infrastructure" is concerned, where skills are required which government departments have difficulty in retaining and where, within the current legal, financial, and institutional framework, the Government has difficulty in operating. Aviation safety is, for instance, one of the identified areas, and hence the current investigation into the restructuring of the CDCAA.

The White Paper distinguishes between elements of "economic" infrastructure and operations which are able to provide a measurable economic or financial return, and elements of infrastructure and operations which cannot, or should not, be paid for by the user, but which provide social benefits.

The first category includes infrastructure, such as primary roads, railways, airports and ports, where the principle of user charging or cost recovery from direct users will be applied as far as possible. The Government will, in the case of such infrastructure and services, strive to prevent any actions of State from distorting pricing.

In the case of socially necessary infrastructure and services, the Government will contribute financing. It will also strive to level the playing fields in this case, and will promote competition where appropriate.>

The Government will strive to link the cost of management, regulation and control, with the tangible and intangible benefits thereof. In principle, such benefits should be higher than their cost. The Government also intends to regulate only where it is essential.

The Government will move towards a culture in which labour is seen as a resource and not merely a production cost.

The Government will assume some responsibility for enhancing capacity and for improving the human resource pool in the transport sector. The Government, however, does not accept sole responsibility for human resource development, and looks to the private sector to assist in overcoming the challenge.

The following strategic objectives were derived from the above policy framework:

• To provide accessible, safe, secure, reliable, effective, efficient and, where appropriate, integrated transport operations and infrastructure
• To meet the needs of all users
• To continually improve levels of service and cost-effectiveness
• To support the Government's strategies for economic and social development (nationally and provincially)
• To be environmentally and economically sustainable, where appropriate
• To foster a sound financial base for aviation infrastructure
• To promote the national interests of South Africa in general, and to facilitate and enhance the expansion of trade and tourism in particular
• To further promote the development of an efficient and productive aviation industry which is capable of competing both domestically and internationally
• To create a competitive environment with a view to enhancing consumer choice and maximising the satisfaction of needs
• To support the RDP's goals and objectives, including the development of human resources, meeting basic needs and broadening participation in the economy through aviation
• To support the protection of the sovereignty of the country's airspace, which is vested in the State
• To promote relations with other countries, groups of countries and related regional and other international organisations
• To promote South Africa's competitiveness and that of the provinces
• To ensure compatibility with global and regional planning as envisaged by ICAO
• To improve the level of safety, security, reliability and effectiveness at airports generally
• To ensure optimal use of the country's airspace and associated infrastructure, in the most flexible way, with the minimum constraints
• To promote familiarisation with the aviation industry and an understanding of its contribution to the economy
• To promote a national network of sustainable airports and air traffic service (ATS) providers
• To clearly designate responsibilities with regard to airport and airspace management
• To ensure integrated aviation planning with regard to airports and airspace management.

The following basic principles were formulated to focus the new policy further and to ensure that it is in line with broad government policies:

• Aviation safety is of paramount importance and should be highlighted as far as possible
• Users' needs and views should specifically be taken into consideration
• Civil aviation will primarily remain a national function, especially the regulation of safety standards in accordance with international standards
• The national Government will retain its regulatory role to ensure the unbiased regulation of safety and quality in accordance with international standards
• Regulation should be kept to a minimum, but without compromising aviation safety
• Participants in the market should be treated equally before the law
• The Government will reduce its direct involvement in operations and in the provision of airport and air navigation infrastructure
• Airports and infrastructure associated with air navigation are essentially "economic" infrastructure, hence the principle of user charging or cost recovery from direct users should be applied as far as possible
• Sovereignty of the country's airspace should be retained and should continue to be vested in the State
• Competition should be promoted as a means of improving levels of service and decreasing costs
• Subject to market discipline, the necessary funding for the establishment and maintenance of airports and air navigation infrastructure should be arranged through one of the following options:

• Subject to the type of demand, the development of airports and air navigation infrastructure should be justified by one of the following options:
• Commercial justification
• Socio-economic justification
• A combination of the above.

The planning and integration of airports into the broader transport network should be coordinated in the appropriate sphere of government, for example international planning and integration at national government level, regional planning and integration at provincial/regional government level, and localised planning and integration at a local government level.

Section 3

This section deals with policy on airports and their operation.

An airport, including a heliport, is defined as follows:

The term airport is used rather than the term aerodrome, which is more generally used in legislation and ICAO publications. The two terms are considered synonymous for the purpose of this document. In airspace matters the term aerodrome is, however, preferred as can be seen in the section on airspace matters, since it is more peculiar to the technical terminology used in that sector.

This key policy area provides national policy on civil aviation airports. Military airports are only dealt with in so far as they interface with civil aviation airports.

In South Africa there are approximately 150 licensed public-use airports, including the nine ACSA airports (owned by ACSA) and the 14 provincial airports (owned by provincial governments), and approximately 60 licensed private-use airports. Public-use airports, in this context, refer to airports which are accessible to the general public. Private-use airports refer to airports which can only be used with the prior permission of the owner or licensee. It is estimated that there are approximately 600 unlicensed airports. Licensing is the instrument which the Government uses to exercise safety controls. The current policy on the licensing of airports is elaborated on the section on airport licensing.

The provincial airports have mainly been inherited from the former independent States and self-governing territories. The majority of airports in South Africa are currently owned at a local government level.

Approximately 40% of the aircraft in South Africa are used for non-commercial sport and leisure aviation, and many of them operate from the smaller airports which are not necessarily viable. These airports thus fulfil a very specific function.

This national policy on airports will provide a framework within which airport institutions - government (provincial and local), statutory (e.g. ACSA) and private sector - should tailor their own individual policies and strategies. In addition, this policy is intended to provide direction on the need for, and the development and management of, these airports.

The White Paper on National Transport Policy states that as a result of the commercialisation of the former State airports and the provisions of Schedule 4 of the Constitution, 1996, (i.e. that certain airports are a concurrent national and provincial function), the question arises as to what role national and provincial governments should play in respect of airports.

There is no definition of "international and national" in the Constitution, 1996, although the CTP interpreted this as those airports owned by ACSA at that time. ACSA currently owns and operates the nine previously State-owned airports and is a public company established in terms of the Airports Company Act, 1993 (Act No. 44 of 1993), and registered under the Companies Act, 1973 (Act No. 61 of 1973).

All shares in the company are currently held by the State. The company is operated as a commercial entity at arms length from the sole shareholder. The Government does not subsidise the company and loans to the company are obtained on a commercial basis from third parties. The Government does not guarantee these loans.

In this section, the following topics are addressed:

• Vision for airports in South Africa
• Sustainability and viability of airports
• Commercial principles for the funding of airports
• Efficient operation of airports
• Communication and consultation
• National development strategy for airports
• Regulation
• Classification and designation of airports
• Restructuring of ACSA
• Military airports
• Allocation of roles and responsibilities.

The vision for airports and airport operations in South Africa is as follows:

The existing system of airports was not planned as a system but now has to be maintained, protected and properly utilised as such. New airports should evolve on the basis of economic and financial viability and sustainability.

In the past some airports were developed for other than economic reasons. Therefore, in order to ensure that funds are optimally utilised in the future, it is necessary to introduce the concepts of sustainability and viability. These concepts cover environmental, economic and financial issues and form the basic premise on which this policy is based. Sustainable development in its simplest form is development that will endure, whereas another definition states that "sustainable development is development which meets the needs of the present, without compromising the ability of future generations to meet their own needs". Viability requires that benefits exceed costs. Benefits and costs include economic and socio-economic concepts as well as the multiplier effects. Socio-economic matters include job creation, the promotion of SMMEs, the potential for tourism development, and training and developing the skills of employees.

It is important that investment decisions consider environmental implications, but investment decisions can only be consistent with environmental objectives if the environmental implications are identified and assessed. These assessments should be done at an early stage and should influence the design of individual projects.

Environmental sustainability emphasises the interdependence of social and economic development and environmental protection.

The Government's new policy for environmental management indicates that all development which might have an impact on the environment, will have to follow the Integrated Environmental Management (IEM) process, thereby providing sufficient information to decision-makers as to the impact of the development on the environment. Different tools may be used to ensure IEM, which could range from Strategic Environmental Assessments and Plans, which take place on a more strategic level, to Environmental Impact Assessments (EIA), which are more project specific assessments.

The policy on airports should be in line with government's policy on environmental management, as indicated above, and should state that assessment of environmental sustainability of airports should state that assessment of environmental sustainability of airports should be carried out as a prerequisite, whether on strategic planning level or for individual projects, using the appropriate tool. The new EIA regulations list airports as an activity for which an EIA will be compulsory in any case.

Any development of a new airport, or major developments at an existing airport, will have to be environmentally sustainable and conform to the norms, standards and regulations of national and provincial environmental policies and legislation.

Environmental assessments should take into consideration national and provincial legislation, the regional effects and induced economic impacts, as well as the potential consequences of broad economic conditions.

The development of airports and transport infrastructure in general, and the development of associated industries such as tourism, hotels and conference centres in particular, could yield significant economic and socio-economic benefits for a region and for the country as a whole.

Where there is a demand, airports do provide certain developmental benefits. These, together with the high cost of building an airport, may justify instances where airport development ought to be funded from public funds. However, such a decision should be based on a sustainable, integrated development plan and be economically justified.

International experience indicates that infrastructure services enhance welfare and foster economic growth and development. The economic impacts of airports are generally the direct, indirect and induced effects, while the social impacts are the effects on the broader welfare of the community, including job creation and the manner in which remuneration is used. However, inappropriate or inefficient investments in infrastructure might impede economic growth. Good performance is predominantly due to -

• correct planning
• good prioritisation
• sufficient maintenance
• adequate competition and
• appropriate pricing policies.
• In order to improve the economic viability of airports -

• provision should be made for the application of sound business principles and expertise, and for the introduction of modern accounting systems, according to which the potential and actual profit or loss of each form of trading operation can be determined and the necessary expenditure traced and contained
• rentals for airport concessions should be determined through an expert investigation of sales, sales potential, management and other aspects of profitability
• rentals for airport premises should be determined after considering the local real estate expertise and market conditions
• up-to-date terms of leasing, with modern escalation provisions should be introduced and
• where services could be better provided by private companies with specialist expertise, the potential for outsourcing service provision should be investigated.

Ultimately the success or failure of an airport, in financial terms, is demand-driven and depends upon the willingness of passengers, freight transporters, etc. to use the facility.

Indications are that most airports are not financially sustainable or viable and therefore also not commercially justified.

International experience indicates that successful providers of infrastructure services generally run these services on commercial principles and share four basic characteristics:

• Focused goals
• Financial independence
• Management autonomy
• Accountability for results.

At present many South African airports do not base their charges on the cost of providing services, and are not run on acceptable business principles.

In the White Paper on National Transport Policy, airports are classified as economic infrastructure. As such, the principle of user charging or cost recovery from direct users should be applied as far as possible.

Economic infrastructure is economic in the sense that there are important links between the availability of this infrastructure and the potential for economic activity and growth.

Where possible and appropriate, user charging principles mean that tariffs will have to be set so that the cost of providing a service is recovered from the prices that users are charged. This principle should be applied with due regard to matters of equity.

To enable airports to move towards "user-pay" principles, sound financial management and accountability will need to be introduced at all airports. It is important that airport operations be separately accountable and that, for financial transparency, each publicly owned airport tables and publishes its results independently.

The appropriate method of setting fees is to take into account the actual cost of service provision. Where this is not done, such method will have to be adopted. Financial systems should be put in place to enable the determination of actual costs and an accurate assessment of the level at which fees will have to be set. All airports should charge fees based on the actual cost of delivering the service. This shift towards greater accountability and transparency will help to level the playing fields between government agencies using government funds, parastatals applying user-pay principles, and private sector operators.

The term "user" includes all levels of users, namely the airport operators, aircraft operators and users of air transport services.

Many publicly owned airports currently have no accurate, recent valuation of all their assets. It is important from the perspective of financial control that each airport should have a full, accurate and recent valuation of all of its assets.

Although the principles to be applied when setting user fees will have to be evaluated in detail, it is anticipated that the following types of cost will have to be included in the calculation:

• Operating and maintenance expenses directly and indirectly associated with the provision of airport aeronautical facilities and services. If these relate to both aeronautical and other facilities then their cost should be allocated accordingly, using a reasonable activity-based method
• Environmental cost, such as the cost of alleviating and preventing noise
• Capital cost associated with the provision of aeronautical facilities currently in use at historic amounts, including the cost of land
• Current cost of planning future aeronautical facilities and the cost of such facilities when brought into use
• Debt servicing and interest charges
• A reasonable return on equity
• Funds to build up reasonable cash reserves
• Non-aeronautical income sources. International experience indicates that a number of airports are able to increase revenues by placing stronger emphasis on the development of revenues from non-aeronautical sources. These are mainly concessions and rentals.

Although certain airports will be unable to recover their costs through user charging, they must be able to identify their costs, the extent of funding required, and provide valid reasons for the shortfall. Increasing the efficiency and accountability of the smaller airports could reduce or even eliminate financial assistance to these airports.

It should also be noted that there are many different possible resources available which could be exploited to increase airport revenue related to aviation and non-aviation activities, both on the airside and landside of the airport.

Any specific type of service provided at the airports, such as 24-hour airport operations, should only be considered if there is sufficient demand for it and if it is viable and sustainable.

Demands on the Government's funds are high, and current government priorities are focused on the area of basic needs provision. Alternative and innovative methods of funding airport development will have to be developed.

At present there are no specific airport investment incentives in place.

The funding of publicly owned airports is currently perceived as a major issue.

Four major sources of finance have been identified that are potentially available for infrastructure development:

• Fiscal transfers
• Concessional finance from multilateral institutions and other international sources
• Development finance channelled through development finance institutions
• Loans raised on commercial terms.

The appropriate funding mix will depend upon the nature of projects, and will include the potential for cost recovery and the risks involved. The Government has committed itself to the forming of public-private sector partnerships based on cost recovery pricing where this can be practically and fairly effected.

Private financing is required to ease the burden on government financing, but it will also encourage better risk sharing, accountability, monitoring and management. However, it is important to note that financial viability is a prerequisite for private sector involvement.

(a) National Government

Schedule 4 of the Constitution, 1996, lists the functional areas of concurrent national and provincial legislative competence as including airports other than international and national airports. This is interpreted by the CTP to mean all airports other than those owned and operated by ACSA.

Following the establishment of ACSA, the Government's current direct financial role in airports is limited to that of sole shareholder in ACSA, and regulator of charges levied on users by the company (section 11(1) of the Airports Company Act, 1993). The Government does not subsidise ACSA.

(b) Provincial government

The provincial airports have mainly been inherited from the former independent States and self-governing territories. These airports, which have recently been transferred to provincial control, are currently funded from provincial budgets. It is of concern that many of these airports are operated at considerable loss. The policy on sustainability and viability should be considered as a matter of urgency in such cases.

The Constitution, 1996, provides that all money received by the national Government is to be paid into the Central Revenue Fund. These funds are then divided between the national, and the nine provincial governments, on the basis of recommendations by the Financial and Fiscal Commission.

Section 226 provides for the creation of a Provincial Revenue Fund for each province. All funds received by the province in terms of legislation, must be paid into this fund. Money may be withdrawn from the fund in terms of an appropriation by the provincial legislature. A province, therefore, has the constitutional authority to allocate money to airport development.

A province is also empowered to impose certain taxes. This could include specific taxes on parties involved in aviation in a specific province, in order to finance airport development. The power to levy certain taxes is to be limited by an Act yet to be drawn up by the Department of Finance (DOF).

(c) Local Government

The majority of airports in South Africa are currently owned and operated by local governments.

Many of these municipal airports currently have operating deficits and are cross-subsidised by other sources from the municipal councils. Capital expenditure is also funded by the municipalities.

In terms of section 152 of the Constitution, 1996, one of local government's aims is to promote social and economic development. In terms of section 156 and Schedule 4B of the Constitution, 1996, local government has the authority to administer municipal airports. A provincial government may also transfer/delegate to a municipality, certain responsibilities regarding provincial airports.

In addition, funds may be allocated to a local government and a municipality may impose certain new taxes subject to national legislation. Such legislation could therefore empower a municipality to levy aviation taxes for the development of airport infrastructure.

International donations and concessionaire funds are options for the funding of infrastructure development. However, these options have to be carefully evaluated, as their use could distort priorities. There are many instances worldwide, where international funding has led to the development of inappropriate infrastructure. The encouragement of joint ventures could also open avenues to international funds and expertise.

The DOF coordinates all donor aid, grants and donations to national, provincial and local government, as well as funds to parastatals that are linked to Government. These funds will be handled through the RDP fund as part of the budgetary process. The DOF will commit these funds to the different departments as agreed. However, the direct flow of funds to the private sector, non-governmental/community-based organisations, research institutions and research units at universities by means of the establishment of direct relations, is encouraged.

The White Paper on National Transport Policy clearly states that the Government intends to reduce its direct involvement in operations and in the provision of airport infrastructure.

Due to the economic needs of airports, and the current lack of skilled personnel in many provincial and municipal departments who are needed to operate airports efficiently, it may be appropriate for publicly owned airports to move towards alternative models of operation, such as public ownership with operation by a State-owned entity, or joint ventures between the public and private sectors. Privatisation could also produce alternatives, such as a change in ownership.

However, it is not necessary for the same legal body to both own and operate an airport. Public / private sector joint ventures could take a number of different forms, including -

• the contracting out of services / service outsourcing
• management contracting
• leasing contracts and
• concession contracts.

In all of the above, the public sector would or could retain ownership of assets. The use of private sector contractors for clearly defined services provides experience that can gradually be extended to full operation by the private sector through leases or concessions. Leases or concessions would allow the public sector to delegate to the private sector the operation of facilities (along with the commercial risk) and the responsibility for new investment.

A further relevant aspect at some of the major airports where there are capacity problems, is the allocation of slots, also influenced by the airspace slot allocation. It is basically the responsibility of the airport operator, after consultation with the relevant role players, to determine the allocation of slots. At present this will occur only at ACSA airports, and the Airports Company Act, 1993, provides sufficient broad guidelines for determining criteria.

There are numerous alternatives for the development of opportunities for SMMEs in airports. Where possible, airport owners and operators should actively promote the involvement of SMMEs.

To enable sustainable development, it is vital to have adequate consultation and discussion on airport development and operations with relevant stakeholders.

At present the processes and responsibilities for communication and consultation on airport and airport operation matters are not clearly defined.

In the past the provincial governments did not have any responsibility for airports. There was consequently no need for a consultative forum between the national and provincial governments. The CTP came to the conclusion that, in view of the overlap between civil aviation matters and other areas in respect of which the provinces exercise powers, a consultative and coordinative relationship should be developed between the national and provincial governments. They proposed that this could be achieved in a Civil Aviation Committee, similar to COLTO. However, further development occurred, namely the formation of MINCAAM, which is a subcommittee of MINCOM and comprises officials of the relevant national and provincial departments. Once again it became clear that consultation and coordination are necessary and that a more permanent body should be established with responsibilities for airports, airspace and aviation in general.

International relations are the responsibility of the national Government. These include relations with neighbouring countries, other foreign countries and aviation organisations such as ICAO.

Where necessary, the provinces should also be able to communicate internationally through the DOT.

Because of the influence of the larger airports on their environment and the important transport and economic role they fulfil, there are a number of authorities and organisations which have an interest in, or are affected by, airports and their operations. A consultative forum for such authorities and role players, where consultation could take place and information be made available, would be beneficial.

The existing system of airports was not planned as a system but now has to be maintained, protected and properly utilised as such. New airports should evolve on the basis of economic and financial viability and sustainability. It is therefore not necessary to plan a national network or to draw up a network master plan of airports. Provinces wishing to plan provincial networks according to their own needs and resources may do so.

It is not clear whether the national and/or provincial governments should play a regulatory role in the physical planning of airports. The necessity of a national airport development plan for South Africa needs to be debated.

The national Government currently has a responsibility regarding the safety regulation of airports in terms of legislation and international conventions. It may also determine standards and provide guidelines for the development of airports. The Civil Aviation Regulations, 1997, provide for airport design requirements which comply with the minimum standards prescribed by ICAO. However, it is the responsibility of the owner of an airport to do the necessary planning, design and development of the airport. The national Government, unless it is the owner, has therefore no direct responsibilities for planning.

Airport development cannot be considered in isolation, but should be integrated into any national, provincial and local economic and spatial development initiatives, and also support the RDP. There should be synergy between airport development, and national and provincial economic and development strategies. Long-term location planning for airports should run in parallel to provincial and regional economic development plans.

Airports should be developed in an integrated manner, with airports being planned together with other elements of the transport system.

The planning and integration of airports into the broader transport network should be coordinated in the appropriate sphere of government, for example international planning and integration at national government level, regional planning and integration at a provincial government level, and localised planning and integration at a local government level. Where conflict arises between two provinces, or where a development is likely to be detrimental to the country, the Constitution, 1996, determines that the national Government may intervene and, in consultation with the relevant parties, rule for the national good.

Planning for airports should be included in a provincial transport plan which, in turn, should form part of an economic development plan for the province. Naturally they should also conform to any national spatial, economic and other initiatives.

Proper planning must be done and in principle master plans should be developed (see the section on Integration of the Airport into its Environment) for airports.

Regulation is basically a form of government intervention. The White Paper on National Transport Policy states that it is the Government's intention to regulate only where it is essential. Also, the benefits of regulation should outweigh the costs. Regulation is required to ensure the unbiased regulation of safety and quality in accordance with international standards. The said White Paper spells out the principles of regulation, and indicates the areas in which the Government will engage in regulation. These are as follows:

• Regulation of monopolies - the Government has a duty to ensure that proper tariffs are levied and to set service and safety standards
• Regulation of operations of competing operators - the role of the Government will be to ensure level playing fields and to regulate safety, leaving the operator as much freedom as possible to provide the customer services demanded in a competitive environment.

In order to ensure that civil society is not burdened with rules whose cost outweigh their benefits, the DOT needs to examine the potential benefits and the potential cost of each intervention through regulation.

An economic assessment should form part of the process of establishing whether new interventions meet this obligation. For example, when evaluating the criteria for the establishment or dis-establishment of certain regulatory requirements, the process should include an evaluation of the cost of such requirements against the benefits gained, based on different levels of service and the risk that certain events may occur.

Economic regulation means the regulation of tariffs and of market entry on grounds other than safety considerations.

The economic regulatory regime in terms of which maximum tariffs and minimum levels of service for the core services rendered by ACSA are regulated by an independent Regulating Committee, has been confirmed in the White Paper on National Transport Policy.

The need for economic regulation should be determined.

In view of the proposed policy statements contained in the foregoing sections, it is considered inappropriate for the Government to intervene in market entry regulation (other than on safety grounds) as far as airports are concerned. The principle is that tariffs and fees must be cost-related.

Due to the monopolistic and market-dominant situation of ACSA, the current economic regulatory mechanisms, including the regulation of maximum tariffs peak hour pricing and minimum levels of services, applied to ACSA are endorsed. The possibility of a strategic equity partner investing in ACSA increases the importance of the present regulatory mechanism. More than 90% of all air passengers and freight in South Africa are handled by ACSA airports. ACSA is also in a position to manage all its airports together as a network and can therefore cross-subsidise airports. Lately ACSA has managed to achieve independent financial viability for most of its airports, and that should be the objective for all airports it owns or for which it has sole financial responsibility. In a case where ACSA airport portfolio is extended, it should only add a new airport where such an airport is justified, viable, sustainable or can be made so over a short period. The principle is therefore that airports should as far as possible be financially independent and cross-subsidising should be avoided as far as possible.

At other airports the point of departure is that tariffs should be cost-based with a reasonable return. Where airports are in a monopolistic environment, charge excessive rates and the problem cannot be resolved through consultation and negotiation, it is proposed that current instruments, such as the Maintenance and Promotion of Competition Act, 1979 (Act No. 96 of 1979), be used. However, should such an airport handle large volumes of traffic, and therefore has a significant impact on the transport of passengers and goods, then such an airport chould also be subject to similar regulation as ACSA.

Airports have to comply with the minimum standards prescribed by ICAO. The DOT has to implement these standards.

The old Airport Regulations, 1993, do not fully incorporate all the standards and recommended practices that are contained in Annex 14 to the Chicago Convention, 1944. Furthermore, unlicensed airports do not have to comply with requirements for emergency services. In addition, compliance at small airports is not monitored effectively and the training of personnel is also substandard.

The new Civil Aviation Regulations, 1997, provide for compliance with the standards relating to emergency services as contained in the Annexes to the Chicago Convention, 1944. This is in line with international trends regarding emergency services.

Annex 17 to the Chicago Convention, 1944, and other international conventions prescribe international standards and recommended practices for aviation security. These requirements are incorporated into South African legislation through the Civil Aviation Offences Act, 1972 (Act No. 10 of 1972), and the Civil Aviation Safety Regulations, 1981. This Act allocates functions with respect to aviation security to, inter alia, the three key role players, namely the State (DOT and SAPS), the airport operator and the airline.

The role of the DOT is, inter alia, to adopt the appropriate legislation and promulgate the necessary regulations, to establish the National Civil Aviation Security Programme, to define and allocate tasks for the implementation of such programme, to ensure the establishment of airport and airline security programmes and the implementation of such programmes and define the responsibilities of appropriate parties and establish close cooperation between them to ensure a coordinated approach to security. The main responsibilities of the SAPS include general patrol services to deter criminal acts, arrest and prosecution of criminals, general law and order duties, the gathering of intelligence specifically also internationally in respect of potential unlawful interference with civil aviation, and other duties to combat criminal acts in general.

The airport operator is responsible for security at his or her airport, while the aircraft operator is ultimately responsible for the security of its aircraft , passengers, baggage, cargo and other aircraft services such as catering. The above-mentioned Annex 17 recommends in its section 4.3.2 that "Each Contracting States should establish measures to ensure that checked baggage is subjected to screening before being placed on board aircraft". This recommendation is supported in principle and the implementation thereof should receive attention, bearing in mind the practical implications.

The provisions of the Civil Aviation Offences Act, 1972, are only applicable at "designated airports" (airports designated by the Minister of Transport for purposes of the said Act). However, there are no criteria for the designation of an airport. Non-designated airports are therefore not required to comply with requirements for aviation security. This lack of consistency could cause problems during ICAO audits. Ideally, all airports should be subject to aviation security regulations, in particular airports serving international traffic.

The application of aviation security measures is not consistent. There is also a need to confirm the respective roles of the various role players responsible for aviation security, particularly at airports.

Annex 14 to the Chicago Convention, 1944, contains standards and recommended practices for the design and operation of airports used for international civil aviation. South Africa is obliged to conform with these standards at least at international airports. The application of such standards at other airports is in the discretion of contracting States. However, these standards are not fully incorporated in South African aviation legislation.

In terms of current legislation, the DOT is to ensure minimum safety standards at airports and heliports. To assist in the fulfilment of this function, a licensing system has been adopted whereby airports which meet certain safety and operational criteria, are authorised to accommodate aircraft movements on and within a predefined airspace in the immediate vicinity of an airport. For instance airports used by aircraft operated for the public transport of passengers and cargo or undertake other work as specified in the regulations, with some exceptions, are obliged to be licensed. An airport licence is issued for public or private-use for aircraft carrying passengers and/or cargo or for other specified purposes. Provision is also made for the issuing of a provisional licence in respect of a proposed airport with the purpose of ensuring that such an airport will ultimately meet the required standards.

The licensing of airports is restricted to the (aviation) safety aspects of an airport. It therefore follows that the DOT does not involve itself with other elements of project development such as land use planning and environmental assessments, nor does it fall within the ambit of the DOT's responsibility to ensure and coordinate the compliance with the requirements of other authorities in this regard. In terms of the Constitution, 1996, these issues are mainly to be managed by provincial and local government.

Presently an airport may operate as an unlicensed airport. Although there are no enforceable safety requirements for unlicensed airports, the operation of aircraft is regulated and includes the prohibition of the use of an unsafe or unsuitable airport.

In addition to the above requirements, airports in ACSA's portfolio are required to operate in accordance with ICAO standards and recommended practices. Additional regulations are for this reason applicable to ACSA airports.

Current regulations require that, except with the approval of the CCA, airports should not be built or developed within a 22 km radius from an airport with an air traffic control (ATC) service. An ATC is defined in the section on airspace matters. This requirement only applies to licensed airports. As the current regulations have no control over unlicensed airports, an airport could theoretically be developed adjacent to another airport.

Existing airports have been developed and new airports built within the 22 km radius of airports with ATC services. Aviation safety is potentially at risk in these situations. The Johannesburg terminal movement area (TMA) has numerous airports in close proximity to one another and unrestricted development could be dangerous.

The current airport licensing system does not fully comply with the requirements of Annex 14 to the Chicago Convention, 1944. In addition, many airports (including heliports) are not required to be licensed. Certain airports, notably ACSA airports, are subject to additional requirements. The development of airports in close proximity to other airports with ATC services has a potentially harmful effect on aviation safety. Clear criteria are required for the siting of airports.

There is also uncertainty about the coordination and/or approval of airport sites, from the planning and land use points of view.

Aspects relating to the planning and development of an airport and the integration of such planning with its environment are dealt with in detail in the section on integration of the airport into its environment of this White Paper. However, at this stage it is important to note that the coordination of planning is a provincial/local government responsibility. The safety licensing of an airport should be seen as one of the entry requirements which are to be coordinated by provincial/local governments. An important instrument in this regard is the Development Facilitation Act, 1995.

The issuing of an airport licence should remain an aviation safety regulatory instrument and should not be used for any other purposes. Furthermore, the issuing of an airport licence is linked to international standards and recommended practices and should therefore remain a function and responsibility of the DOT. The issuing of an airport (provisional) licence on its own does not afford the holder thereof the right to build/develop an airport as there are other requirements of other authorities which must also be met. It merely serves as an instrument to certify that the proposed airport would eventually be considered for licensing, and protects the airspace around the proposed airport.

From a safety regulatory point of view, it is appropriate and essential that a proper licensing system for all airports be developed and implemented. Such a system should provide for a minimum set of safety standards for airports. Airports should be classified in various categories and appropriate standards should be prescribed for the various categories. ICAO standards and recommended practices should apply, at least, to all airports which accommodate international traffic, air and/or aircraft used in aviation training air services for reward with aircraft larger than 5 700 kg maximum take-off weight. Other airports should at least comply with a set of minimum requirements, such as the submission of basic information regarding its location, runway length and condition.

A further safety aspect which must receive attention is ramp safety and ramp safety procedures. The new licensing system should set safety standards in this regard and also indicate the responsibilities of the various role players involved, e.g. the airport operator, the aircraft operator and the passenger, baggage and cargo handling agents.

A new licensing system should be seen as a means to firstly, record or register all landing facilities which are established for this purpose, and secondly, to regulate the standards to which such a facility should comply with and the operation of such facilities. Standards for the various types of facilities should be set at an appropriate level, given the type of operations that are taking place at the relevant facility. For instance, where the mere registering of a facility is required, submission of information on the location of such a facility could be the minimum requirement.

A system of safety inspection by the DOT would ensure compliance with these standards. Where an airport does not comply with the standards, such airport would advise the CCA which would endorse its licence with a restriction. The restriction would then appear in the appropriate publication, such as the Aeronautical Information Publication (AIP).

A number of different airport classifications exist at present, including -

• ICAO classification
• licensing classification (Airports Regulations 1982)
• Constitution, 1996.

Clarity must be obtained on the classification of airports in order to eliminate the current confusion.

The classification system should be driven by needs and should not be confusing. Classification implies discrimination, and should be done with circumspection. The grouping of airports will be different for different purposes, and will depend on aspects such as ownership, whether it is a public or private-use airport, whether it is used for purposes of domestic air travel and/or international flights, the size of the aircraft using it, the air traffic volumes and the facilities available (e.g. dimensions of runway, runway lighting and navigation).

A classification system (as dealt with airport licensing above) already exists with regard to the licensing of airports.

The Constitution, 1996, refers to international and national airports and the CTP has suggested that they be classified as the airports owned and operated by ACSA. If this is accepted, it would mean that all airports owned and operated by ACSA when the present Constitution was promulgated in 1996, would be subject to legislation by the national Parliament, whereas all other airports would be a functional area of concurrent national and provincial legislative competence. With regard to the function of municipal airports, referred to in the Constitution, 1996, there should be no confusion as it clearly refers to airports owned by local governments. If the above are acceptable, there should be no confusion about the "constitutional" classification. It should however be noted that this definition does not mean that only ACSA airports can be international.

International airports are ports of entry where the necessary facilities and services exist to accommodate international flights. They varied up to recently, from small airports used for over-border flights to and from neighbouring countries, to larger airports for flights to and from other African countries, to large airports for intercontinental flights. There were over 30 such designated international airports. Although the majority of people and goods leaving or arriving in South Africa is handled through Johannesburg, Cape Town and Durban International Airports, some of the other airports have also developed into important ports of entry. The vast majority of these other so-called previous international airports had very limited if any custom or immigration services and many of them also do not have ATS. Entry by air into South Africa therefore became relatively easy and the control over immigrants and goods, both legal and illegal, became very difficult. Earlier in 1997 Cabinet decided that a strategy must be drawn up to address border control. The strategy provides for a rationalisation of the present ports of entry to a more manageable number, namely approximately ten such airports.

The following are some of the criteria which should be used to determine which airports could be named as possible designated international airports:

• Economic activity, utilising traffic volumes as an indicator
• Geographical distribution
• Physical constraints at existing airports
• Aeropolitical considerations such as the need for provincial or regional airports and bilateral air service agreements
• Safety and security aspects.

A number of conditions to which these nominated airports must comply with before they can start operating as designated international airports, have also been developed:

• Adherence to the safety requirements
• The airport must be licensed as an international airport
• Provision of ATS
• Security system as prescribed (perimeter fencing, restricted areas, access control, etc.)
• Necessary facilities for customs, immigration and police services
• An approved procedure for the facilitation of passengers and cargo has to be in place and should be adhered to at all times
• Hours of operation need to be clearly publicised. Designated international airports can not operate in the "unmanned-mode".

It is important that the DOT be involved in policies on international airports, as well as the decision about the airports to be designated as international airports. The DOT should consult the affected provinces before a decision is taken. Further international airports can only be designated as such after a decision by Cabinet and after a particular process has been followed. Provision should however be made for specific concessions under very special circumstances.

The following table indicates the different types of airports that can be found if the different possibilities in respect of ownership and use (public and private) are taken into account.

It is clear that this policy refers more to airports for public-use rather than airports in private ownership and used privately.

ACSA was established in 1993 in terms of airports Company Act, 1993. This was the result of an investigation conducted by the DOT to assess the feasibility of commercialising the then State-airports., A policy document was prepared at that stage, recommending that the nine State airports be transferred to a Companies Act company with the State as the sole shareholder of this company. Up to that stage the State airports had been managed and operated as part of the DOT.

The said policy document spelt out the environment in and conditions under which the commercialisation had to take place. Some of the salient features were, that all airports be placed in one company and be managed as a network; that the company may not close or sell airports or curtail services without prior permission, and that the company's aviation related charges and service standards be regulated by an independent statutory regulator, namely the Regulating Committee. These conditions were necessary within an environment where a "pure" State function was transferred to a commercial company and had as purpose to restrain the company from abusing its dominant monopoly position.

The restructuring of ACSA is currently under way, as part of the broader government initiative on the restructuring of State assets. This is also in line with the White Paper on National Transport Policy, namely that ACSA does not have to remain fully State-owned and that strategies to attract foreign capital, technology and management skills be investigated.

In a new environment where private shareholding in ACSA will become a reality, the rules within which the company is operating needs to be reassessed.

This policy is not concerned with the selection of a strategic equity partner or future shareholders of ACSA and what part is owned by whom and the extent of the State's is involved. However, it is concerned with the conduct of the company that owns and operate the major airports in this country.

A major concern is that ACSA should not neglect its core business, being the managing and operating of airports and airport services. ACSA could therefore also engage in other airports, locally and internationally, in a variety of ways. It is therefore imperative that the "core" business within South Africa be defined so as to ensure that it is not neglected. In this context, this policy is not concerned with the other business ACSA may or may not engage in.

The SAAF has reduced its activities and withdrew from some of its airports.

Should some of the SAAF facilities be used for the benefit of corporate and general aviation without prejudicing the operations of the SAAF?

According to of the Airport Regulations: "Subject to the approval of the Minister of Defence, the CCA may authorise the use of certain military airports by civil aircraft."

In determining relative roles and responsibilities of government and other institutions, it is important to consider both existing legislation and location of expertise. While considerable expertise will have to be developed in South Africa, cognisance must be taken of the need to meet obligations in the short to medium term. Appropriate plans must be put in place to ensure that adequate skills are developed.

The need for clear definitions and allocation of roles and responsibilities in respect of existing airports and the development of new and existing airports has been clearly identified.

Schedule 4 of the Constitution, 1996, lists airports, other than international and national (therefore ACSA), as being of concurrent national and provincial legislative competence.

Schedule 4 part B of the Constitution, 1996, lists local government responsibilities as including municipal airports.

In terms of the Aliens Control Act, 1991 (Act No. 96 of 1991), the Department of Home Affairs is responsible for attending to immigration control at international airports and for the designation of such international airports.

In terms of the Customs and Excise Act, 1964 (Act No. 91 of 1964), the Commissioner of Customs and Excise at the South African Revenue Services is responsible for the necessary appointments to attend to customs and excise at international airports.

In terms of the Agricultural Pests Act, 1983 (Act No. 36 of 1983), the Agricultural Pests Control Directorate of the Department of Agriculture is responsible for controlling the entry of certain animals and products at international airports.

In terms of the International Health Regulations Act, 1974 (Act No. 28 of 1974), the Department of Health is responsible for the control of diseases on aircraft entering the country. In terms of the Constitution, 1996, the South African Police Service is responsible "to prevent, combat and investigate" trans-national cross-border crimes.

This White Paper provides clarity as to the responsibili