The voice of Canada’s airports.
Wednesday, October 18, 2006 -
Airport Industry Presents Five-Point Competitiveness Plan
OTTAWA (Oct. 18, 2006) – The Canadian Airports Council (CAC) today presented
a Five-Point plan for airport competitiveness to the Standing Committee on
Finance during its pre-budget consultations.
“This Five-Point plan will go a long way to
position Canada’s
airports as leaders amongst their competitors for air links”, said Jim Facette,
CAC president & CEO.
The Five-Point plan calls for the elimination
of airport rent; more money for customs services at airports; change in laws
and regulation to permit Arrivals Duty Free sales at Canadian airports; an
increase in the Airports Capital Assistance Program funding levels; and
improved international air service agreements.
“Canada’s airports are economic
engines for their communities, creating well in excess of $30 billion in
economic activity,” CAC President and CEO Jim Facette told the committee. Canada is unique in the developed world for
charging airports rent, creating a dramatic competitive disadvantage for Canada’s
airports – a burden of some $300 million a year… Put quite simply, airport rent
is tax, a tax that stifles Canada’s
economic competitiveness.It should be
eliminated.”
Since control of Canada’s
airports was devolved from the federal government to local authorities, Canada’s airports have been responsible for
funding their own capital programs – vitally needed to upgrade and expand Canada’s once
crumbling air transportation infrastructure.Failing elimination of the rent tax, the CAC is seeking an interim
measure that would revise the formula for calculating rent by eliminating a
penalty currently in place for airports that have raised money on the capital
market to pay for capital programs.
The theme of the pre-budget consultations is
Canada’s
Place in a Competitive World.Canada’s
airports contend that rent is just one of the areas in which current federal
policies toward airports and airport services negatively impact Canadian
competitiveness.Resources at Canada
Border Services also are straining the ability for Canadian communities to take
full advantage of the opportunities available to them for global trade and
tourism.
“A strain on the resources available from
CBSA mean ever-increasing lines at Canada’s larger airports,” said Mr.
Facette.“Many small communities are
required to pay for customs services, a measure that essentially punishes them
for securing the vital economic trade links provided by new international air
service.”
Meanwhile, Mr. Facette told the committee
that for Canada’s
smaller airports, of vital concern is the need for more funds for the Airports
Capital Assistance Program.Small
airports require adequate and predictable federal funding to cover the costs
associated with essential airside safety-related capital programs, such as lighting,
visual aids, and snow removal equipment.
The CAC also called for changes to laws and
regulation to permit arrival duty free sales at Canadian airports.Canadian are only permitted to purchase duty
free goods when leave Canada
not when they return.The CAC also urged
the Finance Committee to support more liberalized international air policy from
the federal government to enable foreign and Canadian carriers to increase
international flights and introduce new service.
About
the Canadian Airports Council
The Canadian Airports Council (CAC) is the voice for Canada’s airports.Its 45 members encompass more than 150 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 well in excess of $30 billion in economic activity in the communities they serve.And more than 150,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.
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