Province Asks for Reduction in Air Security Fee

TRANSPORTATION/PUBLIC WORKS--Province Asks for Reduction in Air Security Fee

The provincial government is calling for a reduction in the air travellers' security charge in order to protect vulnerable businesses and smaller communities.

Michael Baker, Nova Scotia's Minister of Transportation and Public Works, says that the security fee hurts air travellers, short-haul air carriers, air-travel related businesses and the tourism and leisure industries. It also hurts smaller communities in Atlantic Canada.

"We're already seeing the impact of reduced demand and increased costs on smaller airports, such as Yarmouth, with the decision by Air Canada Jazz to cut service there," said Mr. Baker. "This security charge needs to be reduced, and then eliminated, at a future date."

The minister believes the federal government should strike a reasonable balance between national interest and air travellers, and not unfairly burden air travellers in comparison with travellers in other modes of transportation.

He cautioned that without a reduction, the fee level may hurt Canada's competitive position in relation to its major trading partner, the United States.

"I realize that the events of Sept. 11 have put an increased security burden upon the federal government," said Mr. Baker. "But let's not use the terrible events of that day to impose what is beginning to look like a permanent financial burden."

The minister also wants money collected by the security charge to be directly linked to enhanced air security, not just put into the federal government's general revenues.

Mr. Baker put forward the province's position to federal Finance Minister John Manley in a letter dated Dec. 19, 2002. Mr. Manley had asked for input as part of the federal review of the security charge.