Province Calls for Improved Air Access

TRANSPORTATION/PUBLIC WORKS--Province Calls for Improved Air Access

Nova Scotia is calling on the federal government to create a more open approach to Canada's air policies.

"Air access is a critical issue for Nova Scotia. The future of our tourism and trade links depend upon improved policies for air travel and airport infrastructure," Transportation and Public Works Minister Ron Russell said while appearing before the federal government's standing committee on transport today, March 10, in Halifax.

Mr. Russell is urging Ottawa to act on three air policy areas:
air access, rent relief for larger airports, and small airport viability. He said current policies are not flexible or responsive to market demands.

The Department of Transportation and Public Works has been lobbying the federal government for years to reduce restrictions on international air access.

"We are missing out on economic opportunities to increase trade," Mr. Russell said. Fresh fish and seafood products currently leave Nova Scotia by truck to make connections at Montreal or Boston airports for overseas markets.

The Department of Tourism, Culture and Heritage is promoting Nova Scotia as a destination of choice to European markets this year. "Nova Scotia needs more passenger connections from Europe, the United States and Japan to build our tourism industry," said the minister.

Mr. Russell also said he was disappointed with the lack of progress on a federal review of rent relief for major airports. Transportation and Public Works has been working with the Halifax International Airport Authority to encourage the federal government to reduce airport rent and allow for investment back into the airport.

The third area of concern for Nova Scotia is the financial stability of the Sydney and Yarmouth airports. Both airports were transferred from federal control to local airport authorities in 1997 with significant operating deficits.

"The reality is that small airports in Canada continue to struggle on a daily basis. Increasing federal regulatory burdens, efforts to maintain a stable traffic base, and mounting insurance and operating costs are a few of the factors that make life difficult for Canada's small airports," said Mr. Russell.

Transport Canada is receiving significant rent from larger airports but is providing only limited capital assistance for Canada's smaller airports.

Transportation and Public Works' submission to the Canada Transportation Act Review Panel in 2000 recommended a modest federal annual operating assistance program for regional and local airports in Canada. This would recognize the vital role small airports play in supporting Canada's larger airports, as well as in serving a broad public interest in medical evacuations, search and rescue, policing, forest fire fighting, trade and tourism. The panel supported Nova Scotia's recommendation, but no action has been taken.

Mr. Russell urged the federal committee to recognize the ongoing needs of Canada's small airports and the role they play in our nation's social and economic fabric, and to strongly support appropriate action before time runs out for some small Canadian airports.

The committee moves on to Saint John, N.B., on Friday, March 11.