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Ottawa, November 8, 2002
2002-091

Finance Minister Welcomes Public Input on Air Travellers Security Charge Review

• Backgrounder.
• Air Travellers Security Charge Review.

John Manley, Deputy Prime Minister and Minister of Finance, is inviting industry stakeholders and other interested parties to provide input into the Government’s review of the Air Travellers Security Charge (ATSC).

This is an integral part of the Government’s commitment to review the charge over time to ensure revenues are in line with the costs of enhanced air security over the five-year period established in Budget 2001.

“The review process is rigorous and transparent and I am confident that, with input from the public, it will provide a sound basis for any future decisions on the charge,” Minister Manley said.

Under the Government’s current five-year forecast, which is based on ATSC collections and air traffic data observed to date, revenue from the charge is not expected to exceed the cost of enhanced air security as set out in Budget 2001. As such, there is little scope for reducing the charge at the present time. However, the Government’s change to accrual accounting - possibly as early as Budget 2003 - could provide an opportunity for reducing the charge. Under accrual accounting, the costs to be recovered from the charge through 2006-07 may be lower than those set out in Budget 2001.

The review of the ATSC is broad enough to consider technical issues related to the application of the charge, including its structure, provided that revenues cover the cost of enhanced air security and no one pays more.

Written submissions will be accepted until December 31, 2002. Additional details on submitting comments and the Government’s consultation process can be found on the Department of Finance Web site at www.fin.gc.ca.

A backgrounder containing further information on the ATSC and the review process is attached.

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