Mr. Speaker, on
March 8 of this year the Prime Minister announced a review of the operation of the administrative flight services.
I am pleased to announce today that the government has finished its review on how we operate the Challenger air service. As a result, we are completely revamping the delivery of this service to save Canada's taxpayers more than $24 million a year.
We are replacing the more costly service that the previous government ran with a more scaled down version. As the Prime Minister promised, on March 8 we looked at options that were in keeping with the government's objectives of frugality and integrity.
We have delivered on our promise. The costs of the new service will be nearly 60 per cent less than under the previous government, dropping from $41.4 million to $17 million a year.
I want to make it clear that a flight service for the royal family, the Governor General, the Prime Minister, ministers of this cabinet and foreign dignitaries is essential in a country as vast as Canada.
The severe time restraints under which these people work makes this service absolutely necessary.
Each of our major trading partners provides a similar service to its head of state and ministers.
Now that we are confident we can deliver the service cost effectively, I expect that ministers will make use of the fleet for their official duties when the schedules of commercial air services cannot meet their needs.
Variable costs for flying now are expected to decline from about $4,600 an hour to $2,200 an hour. The cost per flying hour, if you add in capital costs, is estimated to decrease from about $17,000 to $6,800. This is only one example of the kind of specific measures which I will be implementing and this government will be implementing with a view to reducing expenditures of the federal government.
We have cut back the number of Challenger planes from six to four. We have cut the flight crews from eleven to six. We have re-engineered maintenance arrangements and we have lowered training costs without sacrificing any safety.
From now on the Department of National Defence will continue to provide the Challenger aircraft and crews, but Transport Canada will provide service and maintenance, with the private sector providing many of the other support services, the baggage handling, the meals and the lounge services.
We involved the Auditor General in the review, addressing concerns he raised in his 1993 report. In a recent exchange of correspondence with the Prime Minister, the Auditor General has generally expressed support for the renewal of the service.
The government's decision to revamp the administrative flight service puts the Challenger service on a sound footing. It is a reliable, cost effective secure transportation service for the government and fits in well with the government's commitment to operate as cost effectively as it can.