Mr. Chairman and members of the committee, I'm here today as a director representing the Canadian Airports Council, the membership of which includes 45 airport operators. We are a key component of safe and secure travel for more than 90% of the commercial passenger traffic in the country.
In my day job, I am president and CEO of the Ottawa Airport.
I am grateful for this opportunity to present our pre-budget submission. In light of the time I have, I am going to focus on the general theme of this submission, which is the impact of government funding provided to airports on our capacity to meet the expectations of passengers, and on our competitiveness.
Some countries are struggling with how to properly fund their aviation infrastructure. We are in a good position in Canada. We are 20 years into a model that has seen a transfer of the cost burden from government to the traveller, who now broadly funds the industry.
Responsibility for security screening remains partly in the government's hands. To fund the screening activity, the government charges air travellers a fee, despite the fact that the aviation industry is truly a national issue and the cost of this security should not be born by a single sector.
The air travellers security charge paid by passengers is designed to fund CATSA, the crown corporation that is charged with security screening. It's our understanding that the fees collected amount to $1.8 billion between 2010 and 2013. These revenues go into the government's general fund and it's somewhat difficult for CAC to confirm what portion of ATSC goes to CATSA, and if it has been receiving its full amount for its mission.
According to the National Airlines Council of Canada, from 2010 to 2013, $136 million in accumulated surplus was not directed to CATSA. In simple terms, it is CAC's view that CATSA has not been properly funded for growth, at the expense of travellers who continue to experience longer delays and wait times.
The CAC would also like to see adequate resources for another critical airport partner, the Canada Border Services Agency. From CBSA, we are seeking increased value for travellers from innovative programs like automated border clearance kiosks. These kiosks have been introduced at our largest airports with millions of dollars invested by airports to improve the passenger experience.
Similarly, around the world, countries are co-operating on trusted traveller programs that allow governments to provide better security with fewer resources by concentrating on travellers who represent the greatest risk. Our government partners mentioned above in Transport Canada need this work to be supported.
Currently, our throughput statistics at peak times for screening and processing passengers are simply not competitive with throughputs being achieved in the U.S. and Europe.
We have other files in our submission. Briefly, a request to review federal infrastructure funding rules that exclude the national airport system airport projects from benefits under the Airports Capital Assistance Program for small airports. NAS airports, the smaller ones, should be eligible to apply for funds in the same way that any other entity could.
We also have a long-standing request to support arrivals duty-free, similar to growing numbers of airports around the world. This would not only enhance passenger convenience but it would also repatriate sales, grow employment, reduce airline operating weights carried, and result in faster turnaround times. Really, there's no downside to this initiative but rather many positive outcomes.
I'll finish by touching on the topic of cost competitiveness. The decision earlier this year by the province of Ontario to raise its fuel tax is symptomatic of a bigger challenge in Canada. When it comes to cost, it gets passed on to air travellers. An in-depth assessment of the negative impact that these numerous taxes and fees have on the higher cost of flying in Canada, compared to flying in the U.S., is badly needed.
Sunwing, a Canadian airline, has announced that it will be flying from Buffalo, a border airport, instead of a Canadian airport, to take Canadians to at least two southern sunshine destinations. If this doesn't set off alarm bells, then what will. It's time to address the high burden of government fees and taxes that are specifically aimed at air travel. Again, at the federal level, we also have airport rent, and we would certainly support efforts to review or revise the current $290 million burden that gets passed on to travellers.
Final thoughts. Aviation is an important enabler of economic activity in Canada. This is an industry that pays for itself and then some. The bottom line is that aviation enables Canada to participate more fully in the global economy. We need to acknowledge the role the industry plays. We need to stop the leakage to airports located south of the border. We need to reduce the amount of taxes and fees layered on air travel, so that we can remain competitive.
We need to have an aviation industry that encourages Canadians to fly from Canadian airports. We need a competitive industry that facilitates growth, and international inbound tourism and travel, which will result in significant economic benefits for Canada and for the government.
Thank you.