ADF would not reduce the current federal or provincial tax revenue base, or create additional costs, as Dick has mentioned, so it's a no-cost stimulus policy. It doesn't require government funding, and we complement the goal of this committee to find policies that will stimulate our economy.
Airports have already invested gated opportunities to locate new stores within the international arrival areas and will assume all infrastructure costs. Federal and provincial governments stand to benefit through additional tax revenue that arrivals duty free would bring. It doesn't compete with domestic retailers. In fact, a number of organizations representing domestic economic interests, including the Retail Council of Canada, support the concept of ADF. Introducing ADF would result in positive local economic benefits in these challenging times by spurring economic growth through sales that would otherwise occur abroad.
Implementation of ADF at Canadian airports would not cost the Government of Canada or effect a province a net tax loss on current revenues. A global review shows that ADF does not reduce purchases at domestic retail locations. Rather, ADF entices passengers to purchase goods upon arrival in Canada, as opposed to purchasing abroad. The experience led Australia to expand their arrival duty free program in 2008, and other countries are actively pursuing the same thing. Airports have facilities that are ADF-ready, or could be momentarily.