Mr. Speaker, I welcome the opportunity to respond to the hon. member on this important point.
When Air Canada acquired Canadian Airlines in December 1999, there was concern that this transaction might have a negative impact on smaller airport communities within the country. To address these concerns, the Minister of Transport negotiated an agreement with Air Canada that it would continue to serve for a three year period the over 60 communities then served by Air Canada, Canadian Airlines or any one of the wholly owned affiliates.
Air Canada has honoured that commitment and only in September of this year did it give the required 120 days' notice of its intention to cease service to a few communities where low passenger traffic volumes no longer justify service after January 2003.
In Atlantic Canada there were only three points: Stephenville, Newfoundland, Yarmouth, Nova Scotia, and St-Léonard, New Brunswick.
With respect to Bathurst, I would note that it is not being dropped from the Air Canada network. Air Canada Jazz is reducing its daily service at Bathurst from three flights to two. This is strictly a cost saving move, one that reflects the seasonal decrease in passenger traffic demand, and the service can be reinstated if demand returns.
There has been much in the press recently concerning the drop in traffic on short haul routes because of the proliferation of fees, charges and taxes that passengers are asked to pay. People are choosing to drive their own cars or take the bus or train in lieu of higher cost air services.
The excise tax on fuel, the GST-HST and the air traveller's security charge are the only costs borne by passengers that are directly attributable to government. The security charge and excise tax are the responsibility of the Minister of Finance, who is currently reviewing the security charge.
With respect to NavCanada fees, NavCanada is a not for profit company that charges airlines, not passengers, for air navigation services. These services were previously provided by the government and paid for in part by the former air transportation tax on passenger tickets. Airlines have been choosing to pass along their air navigation fees to consumers in the form of a surcharge. In addition, carriers collect airport improvement fees on behalf of many airports that use these funds for capital improvements.
Let me conclude by assuring the hon. member that we are continually monitoring this issue. The government is carefully reviewing it and monitoring the situation from the perspective of both the carriers and the airports. This will be an ongoing process.