No. H053/06For release June 15, 2006
OTTAWA — A bill that provides an accountability framework for Canada's
largest airports, as well as a modern corporate governance regime for the
airport authorities, was introduced today in the House of Commons by Lawrence Cannon, Minister of Transport, Infrastructure and Communities.
The proposed Canada Airports Act includes a new declaration of Canadian airports
policy and sets out the roles and obligations of the Minister and the affected
airport operators to which it will apply. It will initially affect 28 airports
and in the future will apply to any other airports that reach a threshold of
more than 300,000 passengers per year for three consecutive years.
"This legislation demonstrates this government's commitment to improving
accountability for entities under federal jurisdiction," said Minister Cannon.
"It is an important addition to the legislative framework for Canada's
transportation system."
Key aspects of the Canada Airports Act include a fee-setting regime for affected
airports, with basic charging principles and notice requirements for setting
aeronautical and passenger fees. The eight largest airports will follow a more
detailed regime with additional charging principles and requirements for
consultation. These provisions are designed to help ensure that fees are fair
and are set in a transparent manner. The Act also stipulates when airport users
and the public can make their views known to the airports. In addition, airports
will have to provide public access to key information such as annual reports,
financial statements and approved capital projects.
Under the Canada Airports Act, the federal government will have the authority to
audit the business affairs of airport authorities and to give direction and
create regulations regarding issues such as equitable access measures,
allocation of slots to airlines, and compliance with environmental requirements.
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. For more information on the proposed Canada Airports
Act, please see the attached backgrounder.
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Contacts:
Natalie Sarafian
Press Secretary
Office of the Minister of Transport,
Infrastructure and Communities, Ottawa
(613) 991-0700
Lucie Vignola
Communications
Transport Canada, Ottawa
(613) 993-0055
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
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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 sets out a new national airports policy for
the future. It builds on the 1994 National Airports Policy that promoted the
commercialization of federally-owned airports. It completes the legislative
system for Canada's transportation infrastructure by providing a framework for
airports that is similar to legislation for Canada's air navigation and port
systems.
The Canada Airports Act will apply to 28 airports, including the National
Airports System airports identified in 1994 as essential to Canada's air
transportation system. These airports handle approximately 95 per cent of
Canada's scheduled air passenger and cargo traffic. The Act will also apply to
airports that reach a threshold of more than 300,000 passengers per year over
three years.
While providing a robust accountability and governance regime, and ensuring
extensive disclosure and transparency on the part of airport authorities, the
Act makes distinctions between larger and smaller airports. Larger airports have
more extensive regimes in several areas, particularly with regard to setting
fees. For example, the fee regime takes into account the greater resources at
larger airports for creating fee methodologies and undertaking consultations.
The primary focus of the Act is on the roles and responsibilities of airport
authorities that lease airports from the federal government: Victoria,
Vancouver, Prince George, Calgary, Edmonton, Regina, Saskatoon, Winnipeg,
Thunder Bay, London, Toronto (Lester B. Pearson), Ottawa, Montreal (Pierre
Elliot Trudeau International and Mirabel), Quebec, Fredericton, Saint John,
Moncton, Charlottetown, Halifax, St. John's, and Gander. There is a basic regime
outlined in the Canada Airports Act for the airports at Yellowknife, Whitehorse
and Iqaluit, which are owned by their respective territorial governments, and
airports meeting the passenger threshold — currently Hamilton, Kelowna and
Abbotsford.
The introduction of the Canada Airports Act is the culmination of five years of
policy development and stakeholder consultations. The Act also takes into
account the recommendations from the Local Airports Authority Lease Review
(1997-2000), the Auditor General's reports of October 2000 and February 2005,
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 more than 10 years of post-divestiture
experience.
WHAT THE ACT WILL DO
Clarify roles and obligations
Under the proposed Act, the Government of Canada will be responsible for
protecting the public interest as it relates to airports. This includes
monitoring the airport system, and overseeing the administration of the Act.
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 for airlines and slot allocation. The Government
of Canada will also be granted emergency powers to remedy extraordinary
disruptions, similar to those provided in the Canada Transportation Act.
The Act will require all airport operators subject to the provisions of the Act
to: provide equitable access for airlines to essential airport facilities and
services; post information on fees; meet basic disclosure and accountability
requirements; and provide additional information to the Transport Minister if
necessary to carry out his duties.
Enhance the transparency, disclosure and accountability of airport
operators
The proposed Act establishes requirements for consultations and disclosure of
information to the public. All affected airports will be required to hold annual
meetings to which the community is invited and to produce annual reports and
financial information. Airport authorities will be required to hold
consultations, not only with air carriers serving their airports, but also with
the communities they serve and other interested parties. The Act will also
require airport authorities to provide public access to key documents including
airport master plans, land use plans, annual reports, financial statements,
environmental management plans and periodic performance reviews.
Establish principles for fees
The proposed Act provides affected airports 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.
The eight largest airports will have a more stringent fee-setting process. They
will be required to develop, consult on, and implement a fee methodology that
takes into account not only their financial requirements, but also the manner in
which costs are to be allocated.
In addition, when establishing or changing fees, the largest airport authorities
will be required to follow an expanded set of charging principles and a
consultation process to allow input from affected parties. The Canadian
Transportation Agency will be 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.
Update and strengthen the governance regime
Airport authorities currently incorporated under the Canada Corporations Act,
Part II and under provincial legislation will be continued under this
legislation as non-share capital, not-for-profit corporations, similar to the
way port authorities were continued under the Canada Marine Act. The Act
provides for a complete, modern, corporate regime and governance framework
tailored to the unique circumstances and structure of airport authorities.
The proposed Act provides for a more balanced representation on the boards of
directors of the airport authorities through consultation with and nominations
from local governments and the non-governmental sector, including, at the
largest authorities, the air carrier industry. The role of boards and the
obligations of the authorities will be outlined in the Act. The Act will provide
for independence and conflict of interest provisions for directors and officers.
Other features
The proposed Act establishes 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.
June 2006
