11 Dec 2008

CAA warns deficit may be higher than expected

4:11 pm on 11 December 2008

The Civil Aviation Authority has warned the Government that it faces a number of fiscal risks which could see its operating deficit increase and the loss of staff.

In a briefing to Transport Minister Steven Joyce, the authority says the economic slowdown, reduced passenger numbers and increased costs may mean its operating deficit for 2008/09 is higher than the forecast $355,000.

It says rising costs could make it difficult to retain staff as it will not be able to maintain competitive remuneration.

The authority is reviewing how it is funded and will make recommendations on more sustainable methods of funding in the long term.