Mr. Speaker, although we agree with the proposed amendments, I would like to take advantage of the time allocated to me to once again speak out against the harmful effects implementation of the new security tax will have on the airline and tourist industries.
Effective April 1, 2002, a new tax will be imposed on the users of air travel. This tax, a set fee of $24 for a round trip, will impact on the industry. When we asked the Minister of Finance to provide us with the impact studies done on this, he admitted candidly that there had been none commissioned. This is unimaginable.
Security is, above all, a national issue. The victims of the September 11 attacks, which brought down the World Trade Center towers, were not all on board the planes. A large number of them were at work in their offices. It is possible to imagine that a cargo plane could have had the same impact.
The government seems in a rush to impose its tax. The Air Transport Association of Canada, which represents the major airlines, travel agencies, airports and reservation systems, has asked for time to study the new tax. The association's request is based on the need to carefully assess the repercussions it will have on ticket prices. It seems the problem lies with stopovers and transfers.
It seems that the airline people have discovered that calculation of the charge might lead to higher ticket prices, because it is so complicated, not to mention the fact that it is not clear how much time will be allowed for a stopover. Some travellers might end up being taxed twice if they were more than a few hours between planes.
There is also the request for a grace period. Inevitably, charging the new tax will result in some mistakes. Will the government give a positive response to any requests made to it?
As the government sets up this new security agency, to be funded by this new tax, its mandate is not yet clearly defined. We know that it will look after passenger safety, among other things, but what other responsibilities does the Minister of Transport plan to give it?
This morning the secretary of state reiterated that urgent action is needed in the aftermath of September 11. Yes, people's safety must be assured, but not willy-nilly.
May I remind the secretary of state that the last act of terrorism involving an aircraft in Canada occurred in 1985 when an Air India aircraft exploded in Toronto, killing 329 people? The bomb was hidden in a suitcase stowed in the baggage compartment. Yet, to this day, it appears that airlines are still not required to conduct security checks on all the baggage that they carry. Every day, baggage is put on board aircraft without adequate inspection.
Sure, people who fly have noticed a number of changes at departure points. But what about what goes on behind the ticket counter, or on in the baggage conveyor area? The Airline Pilots Association is condemning the lack of adequate security measures in certain areas at airports. The only noticeable and visible changes are with crew members, who are implementing stricter control measures.
In its December budget, the government allocated $1 billion to buy a bomb detection system. The problem is that this system, which costs $1.6 billion, is only made by two companies in the world and they cannot keep up with demand. When will we have these systems in our airports? And how long will it take for all the security measures and necessary equipment to be in place and fully operational?
Let us now look at the financial impact of this tax. The secretary of state should tell us how he calculated his tax. Just last week, the Toronto Star wrote that the new tax on airport security would bring in $130 million more than necessary. By the year 2006, the surplus generated would reach $250 million.
What we know right now is that this government plans to collect $2.2 billion dollars over the next five years. It has a duty to tell us exactly how this money will be spent for our security.
A rapid calculation makes it clear that surpluses can be expected. I know that the Minister of finance is not very good at calculating surpluses: I understand that he is incapable of forecasting one.
We estimate a surplus of approximately $223 million in the first year that the new tax takes effect. Will the government siphon this off, as has become its sorry practice? Is the government telling us that it plans to help itself to the surplus from this tax, as it has done in the case of employment insurance?
Although the government likes to say that this new tax will be used to pay for new security measures in airports and that it will have little or minimal impact, it is unable to provide convincing evidence. Where are the impact studies related to the introduction of this new tax?
We cannot let go by without comment another rather disturbing point, that being the establishment of the federal security authority. Prior to September 11, the provision of security services in airports was contracted out to private companies. We had no special requirements with respect to the hiring of employees.
The establishment of a federal authority held out the possibility of better trained, and certainly better paid, employees. Now we learn that the authority is authorized to award contracts to the same companies now working for the airlines. It is true that the companies will have to meet Transport Canada's requirements, but we do not know what these new standards will be.
In conclusion, much remains to be done. I do not understand why the government wants to move so quickly.
The Minister of Finance said in the House that he would review the application of his tax in the fall. This statement leaves me very confused. This is the same government that got itself elected by promising to eliminate the goods and services tax, the GST. The election took place and the tax remained. Once the tax is in place, the odds are good that it will remain.
Why make Quebecers and Canadians pay a $24 tax, when our American neighbours are paying only $10?
This tax is in addition to the GST on some flights, to the fuel tax charge, to security fees, to charges for air navigation and to airport improvement fees. As a result, once the new tax is applied, the price of a ticket for a flight from Edmonton to Calgary will go from $100 before September 11, to $180 after April 1, 2002.
What would happen if travellers gave up on air travel because the costs were too high? Airlines would abandon certain less profitable flights, and it would be the small communities that would pay the price.
What would be the economic consequences? What would be the consequences for development in the regions, in particular the remote regions? Quebecers and people in the other provinces will have to shell out and take it. This is not the first time the Liberals have racked up a surplus, and this tax, without any thought to its consequences, will only further inflate the government's surplus.
We are warning this government: it must hear our appeals and review its position. It has the responsibility to carry out economic impact studies and present us with their findings, now, while there is still time, rather than promising a review once the damage has already been done.