Mr. Speaker, the elimination of 40 jobs this week at Halifax International Airport is just the tip of the iceberg for what is to happen to the air industry in Canada thanks to the Liberal government's new government security tax, another GST on air travellers.
Halifax International Airport is the eighth busiest airport in the country and a critical hub for economic development. Tourist air activity pumps 37% of the $925 million into the economy each year. Tourist travel is dependent on discretionary income and is especially vulnerable. For every 1% of price increase sales decrease by 1.2%.
The $54 billion tourist industry in Canada generates some $17 billion in tax revenue that goes to federal, provincial and municipal governments. Almost half of that is generated by the air industry. The 5% decrease in air travel resulting from the Liberal government's newest GST will cost municipal and provincial governments some $350 million to $400 million.
The federal government will more than make up its lost tourism revenue with the money it is taking out of the pockets of air travellers. The writing is on the wall for our air industry and tourism dependent on this industry, a future of continued job and service losses.
The new government security tax on air travellers was an ill-conceived idea that needs to be repealed immediately before anymore economic fallout happens throughout Canada.