No. H022/03For release - March 20, 2003
OTTAWA — Transport Minister David Collenette today introduced the Canada Airports Act in the House of Commons. The bill modernizes the corporate governance regime for airport authorities and establishes a framework for disclosure and accountability for Canada's major airports.
"Introducing this legislation is an important step in addressing new and emerging issues that have arisen since the National Airports Policy was put in place in 1994, as well as in protecting the interests of Canadians, the airports and the airline industry," said Mr. Collenette. "With the successful divestiture of Canada's major airports completed, it is in the best interests of all parties to have one common, yet flexible, governance structure and a strengthened accountability framework to guide the operators of Canada's major airports."
The legislation contains a new airports policy statement to replace the National Airports Policy, which was the basis for the commercialization of the airports identified as being part of Canada's National Airports System. It completes the legislative framework for Canada's transportation infrastructure, providing a framework for airports in keeping with other legislative initiatives such as for Canada's air navigation and ports systems.
The proposed Act sets out the roles and obligations of the Government of Canada and of the affected airport operators. The Act will affect 30 airports when it comes into force. It will also apply to any additional airports that, in the future, reach a passenger threshold of more than 200,000 passengers per year averaged over three years.
"Canada's airport divestiture initiative is one of the most successful commercialization undertakings in the world. Airport authorities have expanded rapidly, providing an improved level of service to the travelling public and generating significant economic activity in many regions, said Mr. Collenette. "This new legislation will build on that success."
The introduction of the Canada Airports Act is the culmination of extensive studies and stakeholder consultations and responds to recommendations in a number of recent reviews. It also fulfils one of the commitments made in Straight Ahead - A Vision for Transportation in Canada and contributes to the Government of Canada's governance agenda as set out in the 2002 Speech from the Throne.
For more information on the proposed Canada Airports Act, please see the attached backgrounder.
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Contact:
Anthony PolciDirector of CommunicationsOffice of the Minister, Ottawa(613) 991-0700
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BACKGROUNDER
THE CANADA AIRPORTS ACT
The proposed Canada Airports Act will provide the economic framework for Canada's most important airports and enunciates the new national airports policy for the future. It builds on the 1994 National Airports Policy that promoted the commercialization of federally owned airports. It also completes the legal framework for Canada's transportation infrastructure in all modes.
The Canada Airports Act will apply to 30 airports, including the 26 National Airports System airports considered most essential to Canada's air transportation system. These airports handle approximately 95 per cent of Canada's scheduled air passenger and cargo traffic. The other affected airports are those that reach the passenger threshold for inclusion of more than 200,000 passengers per year averaged over three years, or those that are owned in part by the Government of Canada.
The major focus of the Act is on the roles and responsibilities of airport authorities that lease airports from the federal government: Vancouver, Victoria, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Thunder Bay, London, Toronto (Lester B. Pearson), Ottawa, Montreal (Dorval and Mirabel), Quebec, Fredericton, Saint John, Moncton, Charlottetown, Halifax, St. John's, Gander, and Prince George which is expected to be transferred soon. There is a modified regime outlined in the Canada Airports Act for the airports at Yellowknife, Whitehorse and Iqaluit, which are owned by their respective territorial governments, and for Kelowna, the Toronto City Centre Airport, and airports meeting the passenger threshold, currently Hamilton, Windsor and Abbotsford.
The introduction of the Canada Airports Act is the culmination of five years of extensive studies, stakeholder consultations and policy development. The Act takes into account the recommendations from the Local Airports Authority Lease Review (1997-2000), the Auditor General's Report of October 2000, the Canada Transportation Act Review Panel, the Independent Transition Observer on Airline Restructuring and the House of Commons Standing Committee on Public Accounts, and draws upon 10 years of post-divestiture experience.
WHAT THE ACT WILL DO
Clarify roles and obligations
Under the proposed Act, the Government of Canada is responsible for protecting the public interest as it relates to airports. This includes monitoring the airport system, making policies to promote its integrity and economic sustainability, protecting federal property leased to airport operators and promoting good corporate governance by airport authorities.
The federal government will have the power to audit the business affairs of airport authorities and to give direction and create regulations regarding issues, such as equitable access measures, slot coordination, federal visibility and compliance with environmental requirements. The Government of Canada will also be granted emergency powers to remedy extraordinary disruptions, similar to those provided in the Canada Transportation Act.
The proposed Act will require all affected airport operators to provide equitable access for airlines to essential airport facilities and services, post information on fees, meet general disclosure and accountability requirements, including the provision of information to the Transport Minister for monitoring purposes, and ensure the visibility of Canadian symbols (flags, welcome signs) at airports with international traffic.
Update and strengthen the governance regime
Airport authorities currently constituted under the Canada Corporations Act, Part II and under the Alberta Regional Airport Authorities Act will continue under the proposed Canada Airports Act as non-share, not-for-profit corporations, similar to how port authorities were continued under the Canada Marine Act.
The governance model set out in the proposed Act establishes common requirements for the composition and selection of the boards of directors of the airport authorities that strike a balance between directors nominated by local governments and by the non-governmental sector, including the air carrier industry. The role of boards and the obligations of the authorities are spelled out in detail.
Enhance the transparency, disclosure and accountability of airport operators
The proposed Act establishes requirements for disclosure of information to the public and consultation between airport operators and interested parties, as well as consultations with air carriers. It requires airport authorities to provide public access to airport master plans, land use plans, business plans, annual reports, financial statements, environmental management plans and five-year performance reviews. There are also requirements for airport authorities to seek local input on land use and master plans, capital expenditures and environmental management issues. All airport operators are required to hold annual meetings to which the community is invited and to produce annual reports and financial statements.
Establish principles for fees
The proposed Act provides airport operators, for the first time, with a set of principles to guide them in setting aeronautical and passenger fees. These principles are designed to ensure that fees are set in a transparent manner, are fair, do not generate more revenues than required for their purpose and, in the case of aeronautical fees, do not compromise aviation safety or security.
In addition, when establishing or changing fees, airport operators will be required to follow a process of notification and allow input from affected parties. The Canadian Transportation Agency is assigned the responsibility for hearing appeals on non-compliance with the required principles and processes similar to the role it has respecting appeals on user fees set by NAV CANADA.
Other features
Under the Canada Airports Act, airport authorities are brought under the Income Tax Act as not-for-profit corporations, and their current obligations under the Official Languages Act are restated. The airports' ability to seize and detain aircraft will also be restated.
In addition, a compliance and enforcement regime that provides for the creation of an administrative monetary penalty system, with appeals to the new Transportation Appeal Tribunal of Canada, is spelled out.
March 2003
