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Ottawa, November 17, 2004
2004-070

Audited Statement of Revenues for the Air Travellers Security Charge and Statements of Expenses for the Enhanced Air Travel Security System Released

Related document:

• Backgrounder - Air Travellers Security Charge.

The Department of Finance today released an audited Statement of Revenues for the Air Travellers Security Charge (ATSC) and audited Statements of Expenses for the Enhanced Air Travel Security System, as well as an accompanying auditor’s report. The Auditor General of Canada conducted the audit at the request of the Minister of Finance.

The ATSC was introduced in April 2002 to fund an enhanced air travel security system. The Government committed to review the ATSC over time to ensure that revenues remain in line with costs over a five-year period.

The audited statements released today cover the period from September 11, 2001, to the end of the first full year of the ATSC in March 2003. They show that revenues generated by the ATSC over this period exceeded expenses, consistent with the analysis underlying the Department of Finance’s first two reviews of the ATSC. The reviews, set out in Budget 2003 and Budget 2004 respectively, resulted in a reduction of the charge for return travel in Canada to $12 from $24.

Information in the audited statements not already considered in the first two reviews of the ATSC will be carried over to the next review. Audits will be conducted annually through 2006–07.

The audited statements and auditor’s report may be viewed on the Department of Finance Web site at http://www.fin.gc.ca/treas/airtrav/ata_e.html, and printed copies are available on request.

A backgrounder containing further information on the ATSC is attached.

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Backgrounder

Air Travellers Security Charge

• Budget 2001, which was tabled on December 10 of that year, allocated $2.2 billion through 2006–07 to make air travel more secure in accordance with rigorous new national Transport Canada standards, including the creation of the Canadian Air Transport Security Authority. This was in response to the events of September 11, 2001.

• To fund these initiatives, Budget 2001 introduced the Air Travellers Security Charge, to be paid by air travellers as of April 1, 2002. The rate was set at $24 for international flights, $24 for round-trip domestic travel and $12 for transborder flights (Canada–U.S.).

• The Government committed to review the charge over time to ensure that revenues from the charge remain in line with the costs of the enhanced air travel security system over a five-year period.

• In Budget 2003, following up on its commitment, the Government presented a review of revenue and expenses, identifying a total of $329 million over five years available to reduce the charge.

• The charge for round-trip domestic air travel was reduced to $14 from $24, effective March 1, 2003.

• In Budget 2004, the Government presented its second review, indicating an additional $203 million over five years available to reduce the charge.

• The charge was reduced to $12 from $14 for round-trip domestic air travel, to $10 from $12 for transborder air travel and to $20 from $24 for other international air travel, effective April 1, 2004.