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Has Transport Canada dropped the ball on SMS?

According to the Auditor General, Transport Canada has failed to assess the
risks inherent in its approach to aviation safety during the transition to SMS.

The Auditor General reports that Transport Canada's aviation inspectorate of
licenced pilots and engineers has declined by 8% even though the Department
lacks a national human resources plan to ensure adequate staffing, recruitment
and training of safety inspectors.
       

The March 2007 audit found its safety program, known as a Safety
Management System or SMS, "does not provide any planned or structured
oversight of private operators".

Is this fair criticism? What are your experiences with SMS? How has the transition been managed with the CBAA?

Tell us what you think.