Mr. Speaker, today I am speaking on a concern I have with the proposed air security surcharge. The Liberals' Bill C-49 introduces an air travel tax of $24 and is set to become effective April 1. As a person who travels frequently, I find this tax outrageous. As a parliamentarian, I find it unnecessary.
On the six month anniversary of the attacks on America and the World Trade Center it is evident that the world is still mourning. As well we see that what happened just a short six months ago is still fresh in our minds. It was these acts that prompted the government, my colleagues and myself to take a closer look at the security measures that we take in this country.
When our neighbour is this vulnerable a target for terrorism, then we have to ask how safe we are. I believe, as do my colleagues in the Canadian Alliance, that we need heightened airport security, but to gouge Canadian travellers with this new tax is to wrongly take advantage of their fears and their mourning.
The tax as it stands now will hurt Canadian travellers and ultimately the companies that supply this travel to Canadians. Surely the government would know better than to implement a tax that will destroy smaller air carriers and limit the choices of travelling Canadians. Surely common sense would prevail.
I believe that if one has the courage to stand and criticize someone's ideas, then one must be prepared to give a better solution. The Canadian Alliance, and specifically my colleague the member for Port Moody--Coquitlam--Port Coquitlam, has brought forth a number of alternatives and improvements to this tax.
The first suggestion, and probably the most important, is that air travellers should contribute to the cost of improved airport security but they should not bear the total weight of these new improvements.
The approach taken by the United States is to have air passengers pay for part but not all of the cost of aviation security. A fee of $2.50 per flight to a maximum of $5 per day is a much more reasonable and workable fee.
The Standing Committee on Transport and Government Operations agreed unanimously that having the travelling public pay for 100% of improved airport security would be an exorbitant tax and would be unfair, yet this is exactly what has happened.
Mark Hill, the vice president of WestJet was quoted as saying “Once the tax is implemented, we believe that traffic will evaporate off the short haul routes. Once the traffic goes, we will have to back out of some of our short haul flying. Once that begins, the genie is out of the bottle and it is very hard to stuff the genie back into the bottle once that happens”.
These comments scare me. They scare me because they affect my constituents directly.
Saskatoon airport services most of my constituents. Its flights service travellers primarily to Winnipeg, Calgary, Prince Albert and Regina. These are all short haul flights. If this tax dissuades short haul flights, then it will destroy the business that is fundamental to the Saskatoon airport. This means not only the loss of valuable resources for my constituents but also the loss of jobs and a valuable part of the Saskatchewan economy.
Doug Schmidt, a WestJet pilot who originated from my area, was in Ottawa recently. As a concerned pilot he presented a petition to the Canadian Alliance opposition critic for transport to be tabled in the House of Commons on behalf of the WestJet pilots, flight attendants and fellow employees.
The petition urges the government to scrap the currently proposed system and replace it with one that is fair and equitable. The petition suggests that a percentage of airfare based formula would be far more fair to all air carriers, air travellers and supportive to airport communities.
The petition also outlined some very stark examples of what is wrong with the tax. On a $57 one way ticket between Edmonton and Calgary, a flat rate of $12 will represent more than a 20% increase in price for travellers. This increase in price could very realistically result in the removal of this short haul flight. However the same $12 fee on a $319 fare from Moncton to Vancouver will represent only a 4% increase. This increase is reasonable for long haul flights. This example clearly shows the discrepancy and the unfairness of the tax.
Mr. Schmidt and his co-workers brought forth this petition because they feel strongly about the company that they work for. They believe in their company. It is also driven from a fear that this tax will destroy this company which is largely based on short haul flights.
I was overwhelmed by the effort made by WestJet employees to save their company. I was even more overwhelmed when at a recent community event constituents rallied to sign the petition and show their support for the short haul flights. These constituents wanted to express personally the value that these short haul carriers have in their lives.
The service provided by WestJet and similar companies, and the affordable rates that they provide, are what Canadians have come to expect. It is what they deserve. Bill C-49 will surely take this away from them. How can we stand by and let this happen?
The Saskatchewan government has also been very vocal about questioning this new tax. Saskatchewan's own highways and transportation minister was quoted as saying that the Saskatchewan government fully supports enhanced security, but it is adding its voice to the growing number of others questioning the federal government's decision to beef up national and international airline security at the expense of local airports and short haul passengers.
I support my provincial government in this line of reasoning. It was clear the government was not willing to help Saskatchewan farmers with this budget, but I am surprised that it would add to this disgrace by destroying our air industry.
David Eckmire, chair of the Air Services Group, said the fee will generate $5 million annually from travellers using the Saskatoon airport which almost equals the airport's entire operating budget.
Many within the airline industry view this new airport security tax as a tax grab. It has not gone unnoticed that the money will go into the general revenues of the federal government and not a special security fund. My airport of Saskatoon, Saskatchewan will pay in taxes what is equal to its operating budget and in the end it will be stashed away into a federal reserve, benefiting no one. Tell me, where is the common sense?
This tax will be extremely detrimental to smaller communities, communities that are in my riding of Blackstrap.
I had mentioned earlier the need for the government to apply common sense to the airport security tax. Now I am going to put forth some common sense statements made in several of the presentations to the finance and transport committees.
Mark Hill, vice president of WestJet, suggested that a flat fee would be simpler to administer. This would mean that the tax would be based on a percentage of the fare and not a head tax. This system would be far less detrimental to short haul flights. Mr. Hill went on to tell the finance committee that this tax will be an auditing nightmare for airlines to try and figure out who owes what to whom and when.
Mr. J. Clifford Mackay of the Air Transport Association of Canada said “The implementation of this new tax or charge is frankly extremely complex. We have spent hundreds of hours trying to figure out how to do this. It is not going to be easy”.
Randy Williams, the president and CEO of the Tourism Industry Association of Canada, said “This tax will hurt an industry still recovering from the September 11 terrorist activities and the economic slowdown”. He went on to say that the travelling public does not support this tax.
These are very important points. They illustrate quite clearly that the government ignored the work in committee, the airline industry and the travelling public when it introduced Bill C-49.
This sort of separation between the people and the government is what has caused so much distrust and resentment for the political process. If we want to restore the belief of Canadians that their government is working for them and not against them, then we need to start listening to these common sense statements.
The government ignored them. I am asking members of the House from all parties to think carefully about why they are here. I want them to consider what is best for their constituents and what is necessary for a healthy airline industry in Canada. I am certain when they have done this that all members will vote against the implementation of this tax and they will do so with a clear conscience.