5

The Government's objectives for the Public Private Partnership

For maintaining and enhancing standards of safety and security

■  To enhance aviation safety in the UK by separating regulation from service provision;

■  To maintain NATS' effective contribution to national security through effective civil/military joint working arrangements;

■  To maintain effective accountability to Government as shareholder, to the CAA as regulator and to the wider public interest.

For developing NATS' business

■  To ensure that NATS has access to the necessary project and complementary commercial management expertise to provide for its long-term development as a safe and efficient air traffic service provider;

■  To ensure the strategic partner takes responsibility for managing NATS' strategy, investment programme and new business development;

■  To provide NATS with the commercial freedom to develop its business, within the necessary framework of incentives, regulations and other disciplines;

■  To introduce new incentive and performance based regulation to replace the existing "cost-plus" charging regime, to encourage timely and appropriate investment and ensure value for money for NATS' customers;

To provide value for money for the taxpayer

■  To ensure NATS has access to adequate capital without adding to pressure on public sector borrowing;

■  To ensure long-term value for money for the taxpayer and generate sales proceeds to help fund other transport programmes.1

NOTE

1.  The Department for Transport had expected sale receipts of £500 million and this was included in their Public Expenditure provision. Without these receipts transport spending may have reduced.

Source: Department of Transport, Local Government and the Regions

6

The PPP Structure

7

Kay players involved in the design and implementation of the NATS Public Private Partnership

Many public and private bodies were involved in the process.

Source: National Audit Office