Evidence of meeting #15 for Transport, Infrastructure and Communities in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was catsa.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Laura Logan  Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada
Lorne Mackenzie  Vice-Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

9:15 a.m.

Conservative

The Chair Conservative Merv Tweed

Thank you, and welcome to part two of the Standing Committee on Transport, Infrastructure and Communities. Pursuant to Standing Order 108(2), we are studying aviation safety and security: security concerns.

Joining us today, from the National Airlines Council of Canada, are Ms. Laura Logan, chair of the security and facilitation subcommittee, and Lorne Mackenzie, the vice-chair.

Welcome. I understand you have a presentation. When you're done with that, we'll move into questions and answers.

Whoever wants to take the lead, please proceed.

9:15 a.m.

Laura Logan Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Thank you, honourable members of the committee, for the opportunity to appear before you today to talk about aviation security.

Before I begin, I would like to note that the National Airlines Council of Canada's safety experts appeared before this committee on April 15 to present our views on aviation safety, so today we will speak to you exclusively about security.

I am Laura Logan, chair of the NACC's security and facilitation subcommittee as well as director of security systems and regulatory at Air Canada. I'm joined today by Lorne Mackenzie, who is vice-chair of this subcommittee as well as WestJet's director of regulatory affairs.

I would like to note that we are appearing before you today on behalf of all NACC member carriers: Air Canada, Air Transat, Jazz Air, and WestJet.

Aviation is a global business and, by definition, airlines operate in the jurisdictions of multiple governments. We would like to encourage the Government of Canada to continue to strengthen its use of the inter-government networks and ICAO when developing aviation security policy and requirements.

The coordination must be more than philosophical or skin-deep. Minor differences and requirements can significantly increase costs and disruptions, without adding any security value. The NACC's member airlines recognize that safe and secure air travel is a critical priority for all Canadians, and it is vital to our national security at large.

We also recognize that the human and financial resources dedicated to aviation security are not unlimited, though new and emerging threats require continued vigilance and innovative thinking. For that reason, we strongly advocate a comprehensive approach to screening that makes more efficient use of current capabilities and includes more than just technology at the checkpoint. The technology is useful, but it is not foolproof. As such, we strongly support the announcement by the Minister of Transport to pursue and develop a behavioural screening training policy.

Currently every air traveller, except for selectees identified by the TSA or on an exceptional basis by the carriers, arrives at the screening point as an unknown and is assumed to pose an equal risk. Yet in reality, information on the passenger is already accessible. The carrier has data about each passenger as provided during the booking process. The government has intelligence that can be brought to bear, including, for example, on those passengers who have NEXUS cards and who can be considered lower-risk or “known”, and additional information can be detected through behavioural observation.

This information can be combined to differentiate passengers who pose higher risks from those who pose lower risks so that screening efforts can be redeployed to maximum benefit.

Screening must be viewed as a holistic process that draws on multiple information streams to assess the risk posed by the individual. Relying on a one-size-fits-all, technology-based screening checkpoint with a random component is neither foolproof nor cost-effective.

Best practices in other jurisdictions have shown significant success with behavioural screening which, I stress, is not racial profiling. This technique, in which highly trained detection officers question and observe travellers throughout the screening process, is considered by the NACC to be an effective and cost-efficient method of detecting suspicious behaviour without compromising individual privacy.

It is well known that Israel is considered a leader in behavioural assessment procedures, and as such, the NACC recommends that the Committee may wish to give further scrutiny and analysis to the methods used in that country.

The NACC fully endorses the comprehensive review of CATSA announced by the Minister of Transport as an opportunity to ensure Canadians are getting the best security value for their dollar. We believe this review should look at all aspects of the organization: its structure, its mandate, and whether or not the current administrative governance model is the best way forward to allow it to deliver on its mandate. To this end, it is imperative to ensure a structure that allows for meaningful and transparent consultation with primary stakeholders and system users such as air carriers.

In the ever-evolving world of aviation security, we believe it is legitimate to periodically step back and conduct a thorough review of the system and examine best practices and structures in other jurisdictions. It is entirely legitimate to, in the course of a review, question whether an aviation security agency, which in turn subcontracts the actual screening and security service provision at airports to third party firms, is a cost-effective system of administration, and whether such a structure fosters the level of front line service delivery Canadians expect and rely on. One of the key tenets of any aviation security review must be the evaluation of efficiency and effectiveness in delivering security screening services.

Moreover, the December 2009 Delta Air Lines incident, which called for increased security screening on U.S.-bound flights, demonstrated the need for robust and ongoing contingency planning by Canadian aviation security authorities, including CATSA. Indeed, the incident revealed that current global security threats require that CATSA's operating model be in a better position to respond more quickly to change and to seek new opportunities to make aviation security better, smarter and more cost-efficient.

Additionally, the NACC recommends that regular consultation with stakeholders be formally implemented to ensure coordination on new and ongoing measures, and to promptly trouble shoot and resolve throughput issues.

Since the tragic events of 9/11, aviation security has become intrinsically linked to public safety and the war on terror. We all have a stake in the effectiveness of aviation security, and the Government of Canada must recognize that ensuring safe and secure air travel is a public good and needs to be funded accordingly. Indeed, unlike in other transportation sectors, the cost of air transport security is reflected directly in the traveller's ticket, because it is the air traveller who bears the cost of the Canadian Air Transport Security Authority, CATSA.

According to the U.S. Transportation Security Administration, in fiscal year 2009 the TSA's aviation security budget of $6 billion U.S. was funded as follows: 63% was funded through appropriations; 30% was funded through air travellers; and 7% was funded through the air carriers.

A comparison with the U.S. funding approach is particularly relevant. As other witnesses have stated before this committee, decisions taken by the TSA impact the security requirements of other nations, in particular Canada's given our shared geography and the fact that Canada is one of the busiest aviation access points into the United States.

Our government has stated, and rightly so, that Canada must be harmonized with the U.S. in terms of continental security. However, when we look at how aviation security is funded in both countries and what that means to the air traveller, the disparity is flagrant. For example, on a return Boston-to-Paris flight, an air traveller in the United States will pay a $5 security charge. In contrast, a passenger flying Montreal to-and-from Paris will pay a $28 security charge.

As the TSA continues to develop its security policy and requirements, the bulk of those requirements are being provided from general government revenue. In effect, as Canada adopts new measures, given our user-pay model, we are effectively asking Canadian consumers to compete with the U.S. Treasury.

In an era where governments around the world are responding to new and emerging global security threats by demonstrating a firm commitment to aviation security funding, does Canada's 100% user-pay model still make sense?

The NACC strongly believes that aviation security is a matter of national security and that air travellers should not have to shoulder the absolute cost of measures meant to safeguard all Canadians from potential threats. The Council therefore recommends that the Government of Canada establish an aviation security funding model that reflects its shared benefits, is sustainable in the long term, is better aligned and harmonized with a North-American model, and provides for greater input from stakeholders through transparency and consultation.

We are not advocating that the state assume 100% of aviation security costs. What we are saying is that the current model is not sustainable. If the user-pay principle is to be the dominant approach, then we need to look at new ways to implement this policy.

For example, airport ground rent brings in approximately $300 million per year, which now goes to general revenues. What about directing these funds, which are generated by the aviation industry, toward the cost of aviation security?

In closing, I would like to reiterate the unconditional commitment of NACC member airlines to provide their passengers with the highest levels of safety and security. We believe aviation security is a matter of national security and requires increased funding, coordination, and oversight from the Government of Canada.

Thank you.

9:25 a.m.

Conservative

The Chair Conservative Merv Tweed

Thank you very much.

Mr. Dhaliwal.

9:25 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

Thank you, Mr. Chair.

Thank you, Mr. Mackenzie and Ms. Logan.

As you mentioned earlier, the air travel security charge is paid into a consolidated fund. It goes into the general revenue and not particularly into CATSA. Do you believe that this is a form of tax on passengers?

9:25 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Laura Logan

Yes, the position of the NACC is that this is essentially an additional tax on air travellers. Through the initial years of CATSA's operation, there were additional funds collected through that charge above and beyond what CATSA required. Those went into general revenue; they were not put aside to fund the charges as the CATSA charges came up. From our perspective, it would have been nice if that money had been put aside to pay upcoming CATSA bills as opposed to being taken into general revenues. So it is seen as being a tax.

9:25 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

So this is a tax, and when the government increases the fees, it increases the taxes.

You mentioned that there was surplus money going into the consolidated fund. Can you tell us how much that amount was?

9:25 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Laura Logan

I'm sorry; I don't have that number offhand. I think it was at least $100 million, but I don't have the exact number.

9:25 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

Are the security fees different when we take a bus, or travel by train? Is it a similar model that they're adopting there for security?

9:25 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Laura Logan

There is no security on buses and trains. There is no screening. There is no—

9:25 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

And no security fee or anything.

9:25 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Laura Logan

No. There's no requirement for them to have guards, and search, and do everything else that we have to do.

9:25 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

So when you say the U.S. is charging $5 and in Canada from Montreal it's $28, what is it that makes a difference, and how can we bring our security fees, our tax on Canadians, in line with the situation in the U.S.?

9:30 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Laura Logan

It goes back to the point that was raised, that 63% of the funding for the TSA comes from general revenues, and it is seen as being a cost to the government to provide that service. Only 30% comes from the air travellers, and 7% comes from the carriers. We feel that the sharing of the expenses under that model is much more representative of an appropriate balance of the benefits.

Do you want to comment?

9:30 a.m.

Lorne Mackenzie Vice-Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Yes.

Furthermore, when you think that the charge that you're paying is actually funded by the U.S. authorities, that same authority is the one driving the security protocols and initiatives. What we see from the Canadian side is that the Canadian traveller is paying for whatever additional charges--for example, for the body scanners. Those charges will be paid for through the travellers, whereas in the U.S. format, the government funds them. That's where the difference of the $5 and the $28 comes from.

9:30 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

You mentioned body scanners. There's a Canadian company that has come up with body scanners that cost about $100,000, compared with ones produced by other countries that range from $500,000 to $2.5 million, but this one is not approved by security.

Would you like to comment on that?

9:30 a.m.

Vice-Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Lorne Mackenzie

I'm sorry; I'm not familiar with the variety of scanners and the assessments. I wasn't involved in that process at all.

9:30 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

Ms. Logan?

9:30 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Laura Logan

I have heard of that technology, and it definitely sounds interesting. It's something that would be very nice to have the government take a look at, because it's not only reported to be cheaper, but actually more effective and a faster process. I would really encourage looking into it.

That's where we need the Government of Canada to step in and take a strong role, because with the ICAO standards and the intergovernmental coordination that happens, one of the stumbling blocks is in the recognition of acceptable technologies. Some of the other governments have not been as willing to look at other technologies and improve them.

For example, if we were to use that model at a screening point for pre-clearance flights that are going to the United States and that screening were not recognized and accepted by the TSA using that technology, they would declare our passengers arriving in the U.S., who have been screened using that technology, “unclean.” We would then have to bring the passengers into a different area of the terminal, escort them out to the public area, and have them re-screened to TSA standards.

That's an area in which coordination between governments on recognition of new technologies and new approaches across governments is so important. As a passenger, you don't want to be screened on one flight, make a connection, and have to be screened again before the next one, and then before the next one. We are trying to drive the governments, the authorities, and regulators not necessarily to harmonization in which everything is identical but to a scheme of mutual recognition whereby they recognize the equivalency of different approaches and models in delivering an equivalent level of security.

9:30 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

Isn't that happening not only in Canada and the U.S. but throughout Europe as well?

9:30 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

9:30 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

You're looking at a global model, then.

9:30 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

9:30 a.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

At the Ottawa airport, I notice that they have a line for NEXUS cardholders. Do you believe this has made any difference in fast-tracking the process, or is it just a gimmick?

9:30 a.m.

Chair, Security and Facilitation Subcommittee, National Airlines Council of Canada

Laura Logan

I think it's too early in the process to really see differences happening at this point. It's an approach that we support in differentiating the screening that is required for the different travellers based on the risk they pose.

As I said, there are some people who can be seen to be posing higher risks, for some reason; there are some who can be seen to be posing lower risks, for some reasons. People who have submitted their information to the government and have gone through the NEXUS program, we believe, can be seen as being lower-risk. However, CATSA has not been forthcoming to the carriers with what the differences are going to be in terms of screening for those passengers, and the lines haven't been operating long enough for us to get a good view of whether or not the passengers are getting through those lines in a more expedited fashion.

9:35 a.m.

Conservative

The Chair Conservative Merv Tweed

Thank you.

Monsieur Laframboise.