Madam Speaker, it is a privilege for me to speak to Bill C-10, an act to amend the Air Canada Public Participation Act and to provide for certain other measures.
Canada has had a long history when it comes to flight. In 1909, the Silver Dart in Baddeck Bay, Nova Scotia was one of the first flights that occurred in the world. In 1913, the first cargo flight was the delivery of the Montreal daily mail to Ottawa. Its return flight was a little iffy.
I have some concerns with the legislation as it stands. One of my biggest concerns is that 3,000 Canadian aircraft maintenance jobs are on the line as a consequence of this legislation. That is a lot of highly skilled, high-paying jobs. It would be a major loss to the communities affected were these jobs to vanish. It would be one of the most negative consequences of the bill.
I am concerned because this could negatively affect the communities of Mississauga, Montreal, and Winnipeg. I find it strange that Air Canada never mentioned aircraft maintenance costs as being prohibitive in its various comments made in the context of the past Canada Transportation Act review.
I am skeptical about the legislation. What does it seek to achieve? Why is it trying to fix a problem that does not seem to be a problem at all? If we really want to do service to Air Canada and other Canadian carriers, let us fix the situation that experts at Air Canada have identified.
Trans-Canada Airlines started in 1937. In 1937, the first stewardesses were hired. They had to be nurses. Why? It was to ease the concern of passengers for the safety of flying. We now have excellent maintenance that we can trust and Canadian flyers on Air Canada can trust this. For the younger members of the House, in 1995 the name was changed to Air Canada.
I have some suggestions for ways Air Canada could be made more competitive both in Canada and at the international level. My suggestions may not put the jobs of 3,000 Canadian workers in jeopardy.
One suggestion is tying airport fees to tangible projects with clear sunset clauses. When sunset clauses are effective and travellers see direct results of the fees in improvements, it may result in reduced ticket prices. That means more passengers on Air Canada flights and a direct benefit to the airline's bottom line. That is one way to help Canada without risking 3,000 jobs in Winnipeg, Mississauga, and Montreal.
A second way to make Air Canada more competitive is by reducing the excise tax on aviation fuel. There are high taxes on aircraft fuel. A variety of federal fees and taxes inflate the cost of air tickets in Canada, making it very expensive to fly within Canada. The air fuel excise tax is one of these examples. Therefore, why would the Minister of Transport not look at this as a possible way to make Air Canada more competitive? As was pointed out in its brief, these excise taxes were supposed to be reinvested in airport infrastructure. If we could fix the excise tax problem, I am sure Air Canada would appreciate such a change.
One of the major issues that ends up affecting Air Canada and all carriers at airports is the issue of security. What we need for security screening is an intelligence-driven, risk-based passenger screening process. This would lead to a smoother, quicker system that would save critical time for airlines like Air Canada and airport staff, and relieve the burden of the one-size-fits-all process we have now. Let us streamline the security process so we make a more simple and yet more robust security screening process at the same time.
Let us try to fix some of the issues Air Canada has stated. One of the issues with respect to security is the air travellers security charge, or ATSC. This is a fee that is charged to passengers to cover the costs of the Canadian Air Transport Security Authority. It was founded in the wake of the 9/11 terrorist attacks to ensure the security of those who flew within Canada.
The issue is, as Air Canada pointed out in a submission, that the amount of fees collected from passengers is too high. Looking at the numbers, the amount taken in surpasses the budgetary needs. In 2013-14, this left a surplus of $123 million. That is a problem. Why are we making such a small change to the act? What kind of support will this give to Air Canada?
We are not quite sure what it will do to help the airline. It has not been made clear to us. What we do know is that the bill would put the jobs of 3,000 airline mechanical staff in jeopardy, in Mississauga, Montreal, and Winnipeg.
The bill is not worth the risk, and an unintended consequence of passing the bill would be that these 3,000 jobs could leave Canada. I am asking the government to take another look at the bill and see that it is not the right course of action.
The Minister of Transport believes that somehow the legislation before us would assist Air Canada in cutting costs. I appreciate that he says this is his goal, but what we would like to see on this side of the House are some actual numbers. I know that our transportation critic, the hard-working member for Carlton Trail—Eagle Creek, has asked for this from the minister. Therefore, I am asking again. Can the minister provide the actual amount that this proposed change would deliver in savings to Air Canada? If not, then I would ask him to give us more detail as to the rationale for the legislation.
As we are very concerned about these 3,000 workers, can the minister confirm that he has consulted with them about any of these changes? Has the minister consulted with their union on this?
Airport rent is another sticking point. Airport rent and fees in Canada are incredibly high, and it makes it very hard for airlines like Air Canada to operate in this business climate. I will quote directly from Air Canada's submission to the Canadian Transportation Act review.
In fact, depending on the type of aircraft, Air Canada landing and terminal fees in major Canadian airports are 35% to 75% higher than in major U.S. airports. When factoring in the difference between the Airport Improvement Fee and its U.S. equivalent (Passenger Facility Charge) that are paid by passengers, airport-related costs are on average 83% higher per departing seat in Canada than in the U.S.
This uncompetitive cost environment is not only causing the leakage of Canadian passengers to the United States, but also the loss of international traffic travelling to or via Canada.
This is from a recent National Post article:
The World Economic Forum ranks Canada No. 16 out of 140 countries for the quality of its airport infrastructure, but No. 130 when it comes to ticket taxes and airport charges.
This loss reduces our ability to position our country as an international gateway and to grow airlines and airports. There is potential to work something out, and I hope the minister is looking at other options to help the airline industry find solutions to these real problems that have been identified.
Air Canada is seeking a regulatory change as to how we manage the aviation industry. This is from its submission:
Our country also needs an efficient process for determining new aviation policy and rules--one that is able to keep pace with the rapidly evolving technology and operations of the industry.
The issues I have outlined in my speech are real issues, many of them raised by Air Canada itself. Why are we looking at such a small change, to the risk of 3,000 workers in Montreal, Winnipeg, and Mississauga?
I cannot support the legislation before us. That being said, I am looking forward to seeing what the minister might offer in terms of really supporting the Canadian airline industry, hoping there will be some future pieces of legislation that I can support.