The voice of Canada’s airports.
Tuesday, February 26, 2008 -
Important Competitive Reforms Still Needed
OTTAWA (February 26, 2008) – The Canadian Airports Council today said Budget 2008 allocations for border services and aviation security are positive steps but important competitive reforms are still needed.
“The secure and efficient facilitation of passengers and goods through Canada’s airports benefit all Canadians, and funds for aviation security and border services are welcomed” said CAC President and CEO Jim Facette. “Nevertheless, Canada’s airports face significant competitive challenges from foreign airports and reform to the current $300 million a year airport rent regime and the introduction of arrivals duty free are two notable ways by which the government could have addressed these challenges.”
In its Budget 2008, the federal government committed to providing the Canadian Air Transport Security Authority (CATSA) with $147 million to address operational pressures.Canada Border Services Agency (CBSA) will receive $75 million over two years to increase the number of border services officers.Another $14 million will be invested over two years to expand Canada’s successful Canada-U.S. NEXUS program.The CAC recommends that the additional funds be used to enhance border core services at airports, including small airports, and provide the benefits of NEXUS to airports without the program.
In its submission to the House of Commons Standing Committee on Finance,* the CAC reiterated its long-standing position that airport rent should be eliminated.Failing this, the CAC put forward a compromise that would have seen a change to the definition of revenue used to calculate rent that would have greatly reduced the burden on airports and reduce costs for the travelling public.
The CAC also called on the government to
allow arriving international travellers to shop duty free at Canadian airports.Arrivals duty free will have a tax net
benefit of as much as $10 million a year for the federal government and improve
Canada’s
competitiveness relative to other markets.The standing committee recommended that the government make an amendment
to the Excise Act that would allow arrivals duty free; this recommendation was
not adopted.
“Canada’s
airports share the government’s commitment to the growth and prosperity of Canada.Airports work hard to promote their
communities and their nation as gateways for trade and tourism,” said Mr.
Facette.“To be successful in our shared
goals requires a more competitive playing field; improved border and air
security services will help.”
About the Canadian Airports Council
The Canadian Airports Council (CAC) is the voice for Canada’s airports.Its 49 members represent more than 180 airports, including all of the National Airports System (NAS) airports and most significant municipal airports in every province and territory. Together, CAC members handle virtually all of the nation’s air cargo and international passenger traffic and 95% of domestic passenger traffic.They create in excess of $45 billion in economic activity in the communities they serve.And more than 200,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.
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* CAC Submission to the House of Commons Standing Committee on Finance