That would be a new development. As I say, the SI ensures that we continue what we have done previously. However, I will take back the noble Lord’s suggestion to consider whether in the future we could do that.
The noble Lord, Lord Rosser, also asked who will be inspecting the CAA, the Secretary of State and airports after exit day. We will continue to maintain our high standards. We will be part of the ICAO and may have EU inspections for one-stop security purposes. This country has an excellent record of aviation security and will continue to have it after we leave the European Union.
The noble Lord, Lord Rosser, asked about derogation from standards. Some small airports and demarcated areas within airports already have some derogation. That is what we are carrying over. There are no plans to ask for additional derogations.
On civil aviation security equipment manufacturers, the noble Baroness, Lady Randerson, asked about standards. I point to the European Civil Aviation Conference which, despite its name, is a branch of the International Civil Aviation Organisation and is made up of 44 member states. We will continue to play an active role in ECAC after Brexit and that will include contributing to the development of improved standards on security equipment. ECAC also undertakes testing of aviation security equipment to certify that it meets the required standards. We will maintain that relationship. Any international manufacturer producing such equipment can submit it to ECAC for testing and certification and that is the standard we will continue to use. There should not therefore be any other barriers to UK manufacturers supplying EU airports post EU exit.
On ACC3—this is an important part of the SI—I say to the noble Lord, Lord Berkeley, it is not our choice that we will no longer be part of this scheme. It is an impact of leaving the European Union without a deal. The scheme is open only to member states and. if we leave without a deal, we will no longer be a member
state. This is not a policy choice that we are taking; it is an effect of us leaving if we leave without a deal. That is why we have had to bring in a new system.
We want to minimise disruption and additional burdens on industry while maintaining our standards. That is why we have the new UK ACC3 designation and that will be issued to all carriers and the supply chains which currently hold the EU designation. We have consulted carefully on this and, prior to leaving, the CAA will formally confirm the new UK ACC3 designations for carriers and that will be reflected in the UK ACC3 database. However, as the noble Baroness pointed out, this is a moving feast. There will be new cargo flights for existing designations and, when they are due for renewal, carriers in that instance will have to apply directly to the UK for the new ACC3 designation. In order to manage the new regime we will need to maintain a record of all granted designations. In a no deal scenario, we will lose access to the EU database that forms the backbone of the EU ACC3, comprising the approved carriers, the entities and the validators. We will need a new system and that is what we have set up. However, we will ensure that that continues to maintain our high security standards and minimises disruption.
In the current system, to which the noble Lord referred, the UK has a responsibility for designating certain destinations to form part of the EU system. That will also be removed and the EU will take on that role.
On compliance and inspection of airports, as I mentioned earlier, the EU has said that it will recognise one-stop security and we expect some EU inspections in the future. However, domestic aviation security compliance is already managed by the CAA and will continue to be so after exit day.
The noble Baroness, Lady Randerson, raised the important issue of costs. As the basic aviation security requirements will not change, any costs to the industry will be minimal. There will be modest administrative costs to air carriers on expiry of their existing designations because of the change in the ACC3 system. We have aimed to minimise additional costs. The evidence required for both systems will remain the same, so carriers should be able to pay for a single independent validation report and submit it to both the UK and EU authorities. There is no direct charge to carriers applying for an EU ACC3 designation and the CAA will not impose a direct charge on that either. I agree with the noble Lord that it would be easier to stay with the same system but, as I say, it is a consequence of leaving with no deal.
On the question of the noble Lord, Lord Rosser, about how the current system on costs works, the current regulations allow member states to decide how to allocate the costs of aviation security, subject to the relevant rules of Community law. That means that member states do it differently. There are some that use central funding for it. In the UK currently we have the user-pays principle: the costs are borne by the airline and the airports and ultimately passed on to the consumer. Industry meets those costs by virtue of
the charging system under Section 11 of the Civil Aviation Act 1982, and that arrangement is expected to continue after we leave.
On the cost to government, another point raised by the noble Baroness, Lady Randerson, the CAA already has the expertise to assess applications for cargo security designations under what it does in the EU system and it is making appropriate contingency preparations to deliver continuity under that scheme. It has incurred a one-off cost in developing the new database to assist in administration. That cost is around £150,000 and will be funded out of the CAA EU exit programme contingency fund provided by the Department for Transport. There may also be a modest increase in CAA resources required to administer the system in the future. We expect that to be around two full-time posts a year.
I hope that I have answered the majority of the questions. If I have missed any I will follow up in writing. As I have said, delivering a negotiated deal remains our top priority. This SI makes it clear what the benefits of delivering a deal will be and what the implementation period will be. However, in the event of no deal, it is essential to ensure that a crucial part of the regulatory framework for civil aviation continues to work effectively after exit day and that passengers continue to benefit from the level of security we see today.