Madam Chairman, this evening's take note debate gives me an opportunity to discuss Canada's airline industry and its present situation.
The horrific and tragic events of September 11 have left an indelible mark on our lives and the world of civil aviation. My condolences go to the families and friends who lost loved ones on that terrible day.
Many sectors of the Canadian economy have been greatly affected by the events, none more so than the airline industry. The airline industry, tourism industry, automobile industry, investment industry and others are still reeling from the economic impact of the tragedy. The crisis threatens to plunge us into a full blown economic disaster.
Hundreds of Canadians have already lost their jobs as a result. In my riding of Etobicoke--Lakeshore, a large number of my constituents are employed in the airline industry. They are indeed concerned about the impact of the events on their livelihoods, jobs and families. Since the crisis they have expressed to me, both through telephone calls and letters, the need for some federal government support to help the sector through this difficult period of uncertainty.
The events of September 11, 2001 are unprecedented in aviation history. I repeat this simply because I think this unprecedented event requires special measures in response. At no other time in modern history have we seen airline shares worldwide decrease at such an accelerating rate and competition choked off. Large airline carriers in the United States, France, Britain and other countries have significantly scaled back on their staff and usage of their fleets.
In Canada small carriers have cut back. Air Transat is an example as is Canada 3000. Similarly Air Canada, Canada's flagship carrier, announced 9,000 job cuts, a direct result of recent events.
I came to Canada 41 years ago on Trans-Canada Airlines. I believe in flagships. I believe there is a responsibility to provide safe service and that has been provided to us by Air Canada.
Our airline industry has lost billions of dollars over the past two weeks. There has been difficulty in meeting insurance payments and operating costs. Many of us have had letters written to us outlining the position. We understand that reduced demand is leading to overcapacity, higher costs and lower revenues. All this has affected the bottom line. The sector is vital to our community.
I say to the Minister of Finance and the Minister of Transport that we must do all we can to help the industry through this rough patch and to shore up confidence in Canada's airline industry.
I was pleased to hear the Minister of Transport state earlier that he will not allow Canada's flagship carrier to be bankrupted by these events.
Since this tragedy we have seen the U.S., U.K. and other governments move to provide some financial assistance. In this crisis we as Canadians owe this to our industry. It is not in the best interests of Canadians to allow a vital sector of our economy to be wiped out.
I am advising the minister to proceed with assistance based on the facts and come up with a fair plan to ensure the viability of the sector. We know that Air Canada in particular was experiencing difficulty before the events, but we also know that we should be assisting it to stabilize the turmoil that is now in the industry.
Canadians want us to act. Canadians want us to show responsibility to the industry. My constituents want us to act on that front in their own interests. We need to put confidence in the system. We need to continue to do what we have started to do. For example after insurance companies cancelled their third party war and terrorism coverage, the federal government got right in there and provided an indemnity for such liabilities for essential aviation service operators in Canada. There is also a 90 day period of coverage and limits to existing terms and conditions placed in that agreement.
We know that the federal government can help. We know it can give support. We know that it can do what is necessary.
The Air Canada employees in my riding want a strong airline company. They want the assurance the government will take steps to ensure that they will eventually return to their jobs.
In closing I want to assure the minister that not only will we support him as he evaluates and comes up with a plan or program, but we will work with him as he is doing with the Federal Aviation Administration to enhance aviation security throughout North America.
Since September 11 I have flown a few times from Pearson airport in Toronto. Those of us who travel on the airline have noticed heightened security measures: increased police presence, passenger screening, hand searches, airport security controls, enhanced baggage screening, passenger baggage screening, and the closing of the cockpit doors. I commend the Minister of Transport for those measures that have been brought in.
It is important to affirm that I stand behind Air Canada and the employees of Air Canada. I support our flagship. I support stabilizing Air Canada, stimulating all sectors of that industry, encouraging the passengers to continue to use the system. I look to the Minister of Transport to keep public confidence in our airline industry.