Mr. Speaker, the members of the House are well aware of how like a vampire the government, through its ever-increasing fees, is sucking the life out of Canada's aviation industry.
According to a report released last year by the National Airlines Council of Canada, these extra costs can comprise between 30% and 70% of total ticket prices. In response, Canadians who live near the U.S. border are heading south to fly out of airports like Buffalo, New York and Seattle, Washington.
In desperation, Vancouver International Airport, for example, has frozen its landing and terminal fees until 2015. Toronto's Pearson International Airport has cut its airport improvement fee from $8 a flight to $4.
Part of the problem is the excessive airport rents charged by the federal government. In 2007, the actual airport rent collected by the federal government at Canadian airports totalled $285 million. The elimination of these rents would result in a significant increase in economic activity. According to the Canadian Airports Council, this economic activity would result in passenger traffic growth of over 590,000 passengers annually. This would increase airfare and traveller expenditures by $304 million.
This increase in passenger traffic would create 2,700 direct person years of employment, which would mean $90 million in direct wages, resulting in an additional $140 million in direct GDP and would create $300 million in direct economic input. That sounds pretty good, does it not? This increased activity would mean an additional $50 million in tax revenues. That is one thing that we can do.
There is another. There is an air travellers security charge, which the government just increased. For domestic itineraries, the ATSC is $7.12 one-way to a maximum charge of $14.25. For transboundary itineraries, the ATSC is $8 one-way to a maximum charge of $16.
Unlike any other form of transportation, air passengers must pay for their own security in Canada. As the National Airlines Council told the transport committee, aviation security is a public good, an essential service in Canada and should not be solely the financial responsibility of Canadian air passengers.
Then there are numerous air and navigation service charges from NAV Canada. They just add up and add up. Annual charges for small aircraft, daily charges for propeller aircraft, en route charge, terminal service charge, en route facilities and services charge, it just goes on and on. We just bleed these airports to death.
We are still not done with the fees and taxes the government charges. There is a federal excise tax on jet fuel. There is the GST, which further increases the base fares for passengers. The GST is imposed on both domestic and transborder flights.
Added to this is the increased costs the government caused when it eliminated funding for providing police protection at airports. The government legislates police protection, but will not help cover the costs.
Though the government does not like science, the facts do not lie. Canadian airports are underperforming compared to their international counterparts.
A report to the National Airlines Council by Dr. Fred Lazar found:
Toronto has fewer passengers per population than all of its comparators with the exception of Barcelona and Philadelphia, and neither of these is the major hub for their respective hub airlines. Toronto lags significantly behind Atlanta, Dallas, Houston and Miami, even though geographically it is better located to connect both Europe and Asia to North and South America.
Vancouver underperforms all other similar airports and neither of these two U.S. cities that are similar in--