Mr. Speaker, I am pleased to join today's debate on Bill C-27, the Canada airports act, a piece of legislation which in my mind is remarkable for what it does not do rather than for what it does do.
The air transportation system is a vital component of the economy not just here in Canada but on a global scale. Let me give the House some figures. Airports produce more than $34 billion in total economic activity each year. They generate more than $4 billion in tax revenues. Construction at major airports has attracted more than $5 billion in private sector capital investment.
That said, our airline industry is in a crisis. The number of passengers has decreased. Service has been cut. The need for security has overridden our desire for convenience, and costs are skyrocketing.
When I said Bill C-27 is notable for what it does not address, these are the issues that come to mind. Outrageous airport rents are one of the costs passed on to airlines and subsequently to consumers.
Starting in 2005 Saskatoon's airport, which serves the people in my riding, is expected to pay more than $500,000 in rent annually. Saskatoon Airport Authority representatives have said this is unaffordable and have recommended that rental charges should be scrapped in an effort to reduce the volatility of the airline industry. Other facilities such as Winnipeg International Airport will be hit even harder in the next few years. Rent there is expected to jump to $7 million by 2007.
According to the Canadian Airports Council, the 26 airports in the national airports system paid $240 million in rent to the federal government. That figure is expected to rise another $20 million this year.
The situation is a major concern to Canada's airports and a problem for the aviation industry in general. Federal rent, the single largest uncontrollable cost for most airports, drives up the price of the services that airports provide to customers.
By raising the cost of travel, this situation threatens the many benefits that have been realized from the transfer of NAS airports to local control in the early 1990s. Not only has the airport devolution process relieved the federal government of the responsibility and financial burden of managing airports in terms of capital and operations, it has enabled local communities to operate airports in a manner consistent with local needs. Despite the heavy burden airport rents put on the industry, the issue is not addressed in Bill C-27.
With air security having become such a headline issue following the September 11, 2001 attacks in the United States, one would think by now that Canada would have a secure air system. After all, Canadians have been paying heavily for security ever since the air travellers security tax was introduced to fund tighter controls. Reality however tells a different story. The fact is our airports have become slightly more secure than they were. That is not to say they are secure, or that all airports have the same level of security. They do not.
One of the most obvious holes in our security is that in most cases once passengers enter the system, they are in regardless of whether they were screened at a large airport where security is naturally tighter, or at a small local airport where security is lax or even non-existent. Unlike in Europe, passengers entering the system from small centres are usually not re-screened. It certainly is not mandatory, even though such a practice could offer better security. Bill C-27 does not address this point.
Talking about security reminds me of fees. When the air travellers security charge is collected, it is held in trust, which means it is protected. It is not so for airport improvement fees which tend to be included in ticket prices and therefore collected by the airlines before being turned over to the appropriate airport authority. If the airline collecting that money falls into financial peril, there is no guarantee that the airport authority could collect the money it rightfully deserves.
Again, if I might use the Saskatoon Airport Authority as an example, when Air Canada slid into bankruptcy, it owed the Saskatoon Airport Authority about $300,000 worth of airport improvement fees. Because the airport authority stands as an unsecured creditor and the money was not held in trust, the authority could lose the entire amount. There is some indication that part of the money will be repaid, but the potential for losses is what I and the airport authority find disturbing. Again, Bill C-27 does nothing to ensure that airport authorities will receive the money the bill itself allows them to collect.
That addresses some of the opportunities that are overlooked in the bill. Now I would like to talk about what is in the bill.
When I look around me today I see people who travelled here from across the country. Some arrived by car or train, but it is likely most came to Ottawa by air. To get here each person made his or her way through at least two different airports in different communities. I suspect there were noticeable differences at each of those facilities. That is because, like the communities and the people they serve, each airport has its own unique profile. Some are large international hubs while others cater solely to domestic clientele.
Bill C-27 does not recognize those differences. In this attempt to re-legislate the current management practices at Canadian airports, the government has chosen to adopt a blanket approach that forces some of our smallest airports to match the obligations of their larger, busier, metropolitan counterparts.
No one within the air industry has called for such measures and I question why the government has chosen this path. The real irony is that within this blanket system, Bill C-27 proposes a two tier approach that will hold former national airport system airports to one set of rules while non-NAS airports will have to abide by another.
For example, clause 57 of the bill limits a former Transport Canada airport authority's ability to invest in another corporation to 2% of gross revenues per year.
Clauses 62 to 64 deal with the corporate governance of airports but do not require the board to have an airline industry representative. Again, this applies only to certain airports.
The proposed Canada airports act is flawed. It essentially re-regulates airports without any obvious benefits and does so in a way that does not reflect the unique needs and characteristics of our airports.