Evidence of meeting #20 for Transport, Infrastructure and Communities in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was north.
A recording is available from Parliament.
NDP
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
Thank you, Mr. Chair.
Mr. Dee, do you need to use the earpiece to hear the simultaneous interpretation?
Former Advisor, Canada Transportation Act Review Panel, As an Individual
No, that's fine. I understand French.
NDP
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
Fine.
As for the northern area, I am rather familiar with the telecommunications and heritage issues. However, a new approach and new solutions are emerging. I am thinking for instance of new satellite orbits that may improve communications and access to broadband Internet service, both upward and downward.
For someone who is not extremely familiar with aviation in the north, what is it that makes it so expensive, and why is profitability so difficult to achieve? I assume it is the low volume.
I am bringing this up because in my riding, one of the main users of the Saint-Hubert Airport, Pascan Inc., made some very energetic efforts in this area. The company decided to purchase equipment in order to be able to meet the eventual Plan Nord demand, as well as to prepare for changes in government and the issues affecting the natural resources market. Today this business is struggling with a very difficult financial situation.
What is the main challenge for these carriers?
Former Advisor, Canada Transportation Act Review Panel, As an Individual
The main challenge for the carriers that provide service in the Far North is, as you indicated, the small number of passengers and the amount of business they do.
Some countries like the United States, Russia, and certain others, have overcome this problem thanks to programs that were specifically—
Former Advisor, Canada Transportation Act Review Panel, As an Individual
Yes. They were designed for the needs of remote areas. But the United States, for instance, has areas that are not as remote as ours.
Former Advisor, Canada Transportation Act Review Panel, As an Individual
That's correct.
There is a community that is quite close to the Ontario border and has been designated as a remote community. Consequently, it receives subsidies. The cost of air transport is so high in some communities that the American government decided to grant subsidies so that prices would not be as high.
Canada studied these various programs and concluded that they did not meet our needs. Currently in Canada's Far North—not Quebec's Far North—but north of the 60th parallel, we already have two air carriers that are quite large and provide service to those communities without obtaining government subsidies. Rather than subsidizing the commercial activities of these carriers, we recommended increasing subsidies for infrastructure in the northern aviation sector. These were subsidies to construction—
Former Advisor, Canada Transportation Act Review Panel, As an Individual
Yes, runways and that sort of thing.
NDP
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
We were talking about Alaska. It is probably one of the only regions that is very far away for the Americans.
NDP
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
Can you tell me what the price difference is between a flight leaving Seattle for a northern Alaskan community, and that of a flight leaving Vancouver for a northern Alberta community? Is there a large gap in prices?
Former Advisor, Canada Transportation Act Review Panel, As an Individual
We did not study the prices in detail. Aside from the price issue, Canada has another challenge, its user-pay system. In the United States the system is squarely subsidized in all respects. So it is difficult to make comparisons. Travelling between Vancouver and northern Yukon or the Northwest Territories is indeed more costly than travelling between Seattle and Alaska.
At the same time, the Government of Canada collects substantial sums from its passengers when they travel between Vancouver and the Far North, so as to be able to contribute to the funding of airports, security and other such things.
NDP
Pierre Nantel NDP Longueuil—Saint-Hubert, QC
You are talking about administrative choices. Yesterday or Monday, we heard that the Quebec City airport was going to change its funding mode. Currently, the airport receives an amount that is related to its assessed value, but it is going to try something else. Can that type of choice make a large difference?
Former Advisor, Canada Transportation Act Review Panel, As an Individual
In fact, we have already observed that these choices make a large difference in the prices paid by Canadian and American consumers. The sums required by airline carriers—
Former Advisor, Canada Transportation Act Review Panel, As an Individual
Airport taxes, surcharges and other things of that type can contribute to increasing the cost of an airline ticket by 20%, 30% or 40%. These are very important elements.
Liberal
Ken Hardie Liberal Fleetwood—Port Kells, BC
Madam Chair, if I could, I'll share my time with Ms. Young, who wanted to get a question in.
Liberal
Kate Young Liberal London West, ON
I did want to tell you that Transport Minister Garneau, of course, sees the transport portfolio as very much an economic portfolio. I think the implications of not getting it right are wide-ranging.
I know you have been specific about air transportation in the north in particular, but I want to get a wider sense of the complications with such a massive report and your hopes for what the government will do with it and what you see as the priorities for the government.
