Evidence of meeting #10 for Finance in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was interest.
A recording is available from Parliament.
12:45 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
Is their expenditure reporting to the Government of Canada reflected in the estimates that we see every year?
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
I think they would report under Transport Canada.
12:45 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
If I look at the Transport Canada area, I can find how much we're spending, likely with a little work.
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
That's correct.
12:45 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
It's on airport security and CATSA for a year. Is that correct?
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
CATSA's mandate is only the air travel security system. All of their expenditures would be related to the functioning of the national air travel security system.
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
There are some additional programs. The RCMP air marshals and some other things done in Transport Canada are also funded by the air travel security charge.
12:45 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
I want to clarify one thing you said. You said the user fee will cover the costs over five years.
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
That's correct.
12:45 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
Are you telling me that if I look through the blue books I can find an upfront cost or expenditure for increased security for people flying in this country immediately or very soon and that the fee will be enough to offset those costs over time? Is that correct?
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
I think what you'll be able to see is there's going to be an increase in CATSA's expenditures, which will correspond to the increase in the air travel security charge rate. It won't be one to one.
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
As you can appreciate, it's over five years. There will be some years when spending may be higher or lower than other years. There's capital equipment acquisition.
12:45 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
But at the end of the five years it should virtually balance out.
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
The intent is that the increased revenues will basically balance and be in line with the increased expenditures.
12:45 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
If I understand you correctly, this is only a charge that the airlines will pay based on the number of tickets they sell for security for people who are actually using the service. At the end of the day, it is really a user fee.
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
It is a user charge. Air travellers are the ones who pay for it. It's paid at the time you purchase an air travel ticket. It's in order to pay for the security you will receive when you go to the airport and for the benefits you will receive from flying safely.
12:45 p.m.
Conservative
The Chair Conservative James Rajotte
Thank you, Mr. Wallace.
I have Mr. McCallum, Mr. Martin, and Monsieur Paillé.
I'd like to try to finish this round by one o'clock.
We'll go to Mr. McCallum, please.
12:45 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
I have one brief question. You said the revenues and expenditures were roughly in balance over the past years. What is the definition of “roughly”? Were the revenues higher or lower than the expenditures? In dollar terms, approximately what was the gap?
12:45 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
The air travel security charge was introduced in 2002. I think if you look at the budget of 2008-09, it basically reported at that point in time that revenues and expenses were roughly in balance on a cumulative basis. What does that mean?
I think there were the billions of dollars of expenditures and the billions of dollars of revenues for that period, because this was over a six-year to seven-year period at that point in time. I'm not sure, because I don't have the exact dollar figure in terms of what it would have been at that point in time. It may have been a little above or a little below, but it would have been roughly in balance.
12:50 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
So if the number is a billion dollars, it would have been just--
12:50 p.m.
Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
It would have been a marginal amount. It depends on what you think. But relative to the billions expended and the billions received, it would have been relatively small.