Mr. Speaker, the air travellers security charge came into effect in April 2002 to fund the air travel security system, including the Canadian Air Transport Security Authority, which is the federal authority responsible for the security screening of air passengers and their baggage. Also included in the air travel security system are Transport Canada’s related regulatory oversight and the contracting of Royal Canadian Mounted Police officers on selected flights. The air travellers security charge is generally paid by passengers when they purchase airline tickets. The Government of Canada has committed to balancing air travellers security charge revenues with air travel security system expenses over time.
Budget 2023 proposed to provide $1.8 billion over five years, starting in 2023-24, to maintain and increase the Canadian Air Transport Security Authority’s level of service, improve screening wait times, and strengthen security measures at airports. To support financing of this proposal, budget 2023 proposes to increase air travellers security charge rates by 32.85%. The air travellers security charge rates were last increased in 2010, at which time they were raised by 52.4%.
The cost of the Canadian Air Transport Security Authority’s operations has grown along with traffic volumes over the past 12 years, whereas its annual, fixed appropriations have not. As a result, the Canadian Air Transport Security Authority has been receiving annual top-ups to help it meet increased volumes. The vast majority of the incremental revenues generated by the air travellers security charge increase will go toward a three-year top-up versus the historical one-year. A portion of the incremental revenue will be used to improve wait times. The Canadian Air Transport Security Authority’s current wait time target is based on meeting a service level where on average 85% of all passengers wait less than 15 minutes to be screened at Canada’s top eight airports on an annual basis. This means that longer wait times may occur during peak periods, when checkpoints experience higher traffic volumes. Details on the proposed changes to wait times are being worked out with the Canadian Air Transport Security Authority.