Mr. Speaker, I too am very pleased to participate in the debate today on Bill C-27, the Canada airports act.
I will focus my remarks on part 6 of the bill. That part deals specifically with the main fees which are collected by airports. Part 6 establishes a brand new framework for amending existing fees or introducing new ones.
I am sure everyone will agree that one of the most significant concerns expressed by airlines and passengers alike has been the inability to consistently obtain a reasonable explanation of the fees being charged by airports across the country. Many times when I have travelled across the country, I have asked myself what certain fees were for. I am sure many other Canadians have experienced that same kind of feeling. I know that internationally other airports charge fees as well but we are always questioning the fees. We have paid for our tickets and in addition to that we have to pay another fee.
I am glad to announce that the new Canada airports act will actually address this shortcoming. It establishes a framework for fees that will provide users with the necessary information to understand each aeronautical and passenger fee. It also provides users an additional opportunity to influence the airport's decision making process each time these fees are amended or a new fee is being reconsidered. It is not that we just show up and the fee will be an additional $10 or $15. This framework will apply to all airports affected by the legislation and will deal only with two revenue sources on the airport.
First, there are the fees that are collected by airports from air carriers for the use of services and facilities and second, the fee collected directly from the passengers, which is usually called the airport improvement fee or the passenger facilitation fee. It is that fee which is annoying because we have to pull out our wallets to pay an additional fee as we are running to get on a plane. I think Canadians are most familiar with that fee.
There are four components to the framework and I would like to go through each one of them. First, it sets out charging principles to be followed in establishing these fees. Second, it has a charging methodology that the airport must develop to explain how each fee relates to the financial requirements of the airport. Third, it has a consultation process that is to be followed. Fourth, it gives an appeal process for users who claim that an airport operator has not complied with the charging principles or the prescribed consultation process.
The charging principles contained in the bill establish a minimum set of rules, and I underline minimum set of rules, that airport operators must follow with respect to fees.
These principles require airport operators to develop a charging methodology, to relate fees to costs so as to prevent overcharging users, to avoid discrimination in charging among users as required by Canada's international obligations, and to ensure that safety is in no way diminished by the fee structure.
With respect to the second component of the framework, each airport operator must develop and announce its charging methodology. This methodology must explain in detail the financial requirements of the airport that are to be met through fees and how each fee relates to these financial requirements.
Passenger fees attract specific reporting requirements under the legislation. Airport operators must identify the specific major capital program that the passenger fee is paying for and must also report how long the fee will be in place in relation to that program.
I have gone to certain airports which I have not been to in years and at that time there had been an airport improvement tax. I can understand when I see ongoing construction that there might be a need for this tax. However, it seems to me that years later when I have returned that same fee is still there and I cannot believe that they would have already started charging for a future improvement.
Passengers would finally have a feeling that there is some accountability here and that is very important. I should add that, for airports with fewer 400,000 passengers annually, revenues from passenger fees would be permitted to help pay for airport operations and maintenance costs as well.
It is important that we look at smaller airports and that a distinction is truly made. As in any type of industry, as a government, we must be careful that we take into account the fees or the operations of the smaller operators. As the former parliamentary secretary, I was involved with the Department of Canadian Heritage for the past two years. We always looked at the small broadcasters and the small cable operators because we had just finished a study at the Department of Canadian Heritage on the Broadcasting Act. We hope to table a report before the House recesses for the summer.
It is good to see that the government is establishing new policies, and that we are looking at ways to help the smaller businesses and smaller parts of our industry deal with the regulations. When we are speaking about regulations, one of the important things in the Speech from the Throne was our priority to ensure that we have smart regulations. The Prime Minister recently announced a special advisory board. It all fits into what we as a government are trying to accomplish under the act.
The third component of the framework provides airport operators with a minimum consultation process to be followed each time a fee is amended or a new fee introduced. That is so important. It is certainly something that we are constantly being badgered by the opposition. It says that we do not do enough consultation. It does not matter how much consultation we do, there never seems to be enough. It is important that we recognize that within this act we are requiring of airports the same kind of consultation process that we conduct and that we need as well in order to affect proper policy.
It is important for passengers to participate. I should note that the public will have the opportunity to review and comment on the justification for every fee proposal. The minimum review period of 60 days is similar to what is required today of the airport authorities pursuant to their leases with the federal government. There is indeed a precedent for those consultations and I welcome them. It is so important for consumers to know what it is they are paying for and how long they will be paying this as well. I commend the government on how it has reacted to the consultations that we have had to ensure that there continue to be consultations as the fees are collected.
Finally, I want to speak to the fourth component of the framework. The Canada airports act would permit users and passengers to appeal the decisions made by airport operators. The appeal process would be limited to appeals regarding compliance with the charging principles and with the consultation process. If passengers are not satisfied with the consultation process or how the charging principles have been involved, they have the opportunity to appeal. That is very important. If they feel they have been left out of the consultation process or it has not been done properly, there is that ability to appeal and that is important as well.
The Canadian Transportation Agency would hear these appeals and would be empowered to order airport operators to cancel a fee, but more importantly, they would have the opportunity to issue refunds to users if an appeal is successful. That is a wonderful opportunity. Canadians should know that they can be part of the process and actually get a refund if they find that the consultation process or the charging principles were not taken into account as required under the act.
To sum up, the act would establish for the first time a common set of rules that would guide airport operators in their management of fees and it would do so without being unduly prescriptive. Airport operators would still have the freedom to decide what their financial requirements are and how they would generate revenues to collect them. It is important that airports continue to have this freedom since many have borrowed where lenders have based their decisions on their knowledge of this freedom.
Finally, the focus of the legislation in this area of fees would promote transparency and provide a more consultative process for users. We believe that it would contribute to the efficient and effective management of Canada's critical airport infrastructure.