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.

On the agenda

MPs speaking

Also speaking

Tim Wach  Director of Legislative Development, Tax Policy Branch, Department of Finance
Gérard Lalonde  Director, Tax Legislation Division, Tax Policy Branch, Department of Finance
Carlos Achadinha  Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance
Pierre Mercille  Senior Legislative Chief, Sales Tax Division, GST Legislation, Department of Finance

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

I think there was some decision that there would be a significant increase in the level of security. There were new requirements throughout the world, internationally. CATSA and those people who are responsible for determining the level of security and what is appropriate identified significant new needs.

There is also some capital that is going to be replaced.

12:40 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

It is not just the body-scan machines, then. There will be an increase....

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

There are going to be additional enhancements. The body scanners are just one measure.

12:40 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

We must know how we compare with other countries. Even if you say it's complicated, in the interest of openness and transparency, somebody must have done a breakdown. The United States charges, I don't know, $3.50 per ticket or $7 per ticket. Somebody must have stripped away all the other confusing things that are lumped in there so that we could have some idea of where we stand in that field.

Do you have that answer?

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

In terms of the U.S., I can tell you that it's difficult to compare. They have at least three different sets of fees and taxes on airline tickets, including a passenger security fee. So it's really difficult to....

12:40 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

How much is that?

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

I'll follow up and just say that the U.S. budget proposed to more than double its current security fees--

12:40 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

What's the current fee?

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

--from $2.50 right now per segment to $5.50 per segment, up to a maximum of $11 for a one-way trip by 2014.

12:40 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

How will ours compare to that?

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

It's different, because in the U.S. it's per segment, so it depends on how many legs of travel it takes for you to get to your destination.

12:40 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

There has to be a way to compare it, surely. This is not that complicated.

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

It will all be based on whether it's equal and whether there are any connections, because as I mentioned, in the U.S. it's per segment. So for your connections you're paying separate fees.

12:40 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Let's say it's one segment. Let's say it's from Winnipeg to Toronto.

12:40 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

It'll be $5.50 per segment for domestic travel--

12:45 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

For us.

12:45 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

--and in Canada, the rate will be.... Is that one-way travel?

12:45 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Yes.

12:45 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

Let me get my current rates. For one-way travel it is $7.48.

12:45 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

The fee is 50% more than it is in the United States.

12:45 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

It's $7.48 for one-way travel and $14.96 for round-trip travel.

12:45 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

It's not quite 50% more. Why is that? What a cash grab that is.

12:45 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you, Mr. Martin

I have Mr. Wallace and then Mr. McCallum.

12:45 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Thank you.

I want to clarify a number of things.

I'm sure it's difficult to compare based on volume and everything else. If you put a thousand people or 500 people through the scanners, the capital cost is exactly the same, but the amount of revenue you could generate is different. I'm sure it's basic economics that Mr. Martin will eventually figure out. If he comes to these meetings on occasion, I'll help him out the best I can.

My point is this. You indicated that the money goes into general revenues, which is fine, but every year we get the blue books on the estimates for the actual spending that is done. Would a member of Parliament be able to find it in the blue books? Whether it is the main or supplementary estimates (A), (B), or (C), how would a person such as myself find where the actual expenditure is allocated? Will we be able to find where we're spending money on CATSA or airport security in the blue books?

12:45 p.m.

Legislative Chief, Sales Tax Division, Public Sector Bodies, Department of Finance

Carlos Achadinha

CATSA is the dedicated agency responsible for air travel security in Canada. What they do is all dedicated towards the air travel security system. They are the ones who largely administer it.

The screeners you run into every time you fly are employees of CATSA. They have an annual report and they report their expenditures each year.