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News Release
October 28.2005

Lapierre is Wrong on Pearson Airport

OTTAWA – Today, Conservative Transport Critic James Moore joined with Toronto's Mayor and City Councilors, the GTAA, the Toronto area Liberal caucus and airline industry stakeholders and travellers calling on Prime Minister Paul Martin to condemn public comments made by Transport Minister Jean Lapierre yesterday regarding concerns Moore raised over unreasonably high rents at Pearson Airport.  Moore is also calling on Martin to make clear his government’s policy regarding Pearson Airport’s role as a centerpiece in Canada’s transportation network.

Moore was reacting to comments made Thursday by Liberal Transport Minister Jean Lapierre that airlines who do not like the high rents at Toronto International Airport should move Montreal. 

Moore said even more distressing is the fact that the Minister refuses to recognize the injustice of having Pearson Airport, with 33% of Canada's total airline  passengers, pay 66% of all airport rent revenues received by Ottawa.   "Once again the Transport Minister has revealed how poorly he understands the airline industry, and how the Liberal government is arrogantly taking for granted their past political support in Toronto," says Moore.

Moore continued, "for the Minister to suggest that travelers should cease use Canada's largest airport and move to Montreal is beyond irresponsible and demonstrates a profound lack of understanding of the importance of Toronto’s Pearson Airport as Air Canada’s domestic hub for air service." 

Concluded Moore, “the Conservative Party will continue to fight for lower airport rents, taxes, surcharges, and for greater competition in our skies.  And we will work to build and support Pearson Airport as it continues to service Toronto, and all of Canada, as a centerpiece of Canada’s transportation infrastructure.”

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For more information, email moorej@parl.gc.ca or call 613.992.9650

 

(Below are the blues from the Standing Committee on Transport from Oct. 27th/2005.)

Standing Committee on Transport

Comité permanent des transports

EVIDENCE number 38,

Témoignages du comité numéro 38

UNEDITED COPY - COPIE NON ÉDITÉE

Thursday October 27, 2005 - Le jeudi 27 octobre 2005

*   *   *

(0904) 

[English]

The Chair (Hon. Roger Gallaway (Sarnia-Lambton, Lib.): Good morning, colleagues.

This morning, as requested by the committee, we have with us Minister of Transport Lapierre and with him his entourage of staff.  

As I explained to you before the meeting started, the Minister regrettably has an emergency this morning. He will only be here for one hour. There will be no opening statement. We're going to proceed directly to questions and this is all done on the understanding that he will return as soon as we can possibly arrange it, for the second hour. It won't be today.  

Having said that, we will proceed to questions and we will start with Mr. Moore.  

Mr. James Moore (Port Moody-Westwood-Port Coquitlam, CPC): Thank you very much, Mr. Chair, and thank you, Minister, for coming here today. 

We obviously have a number of bills before the House right now. There are a number of stakeholders with regard to Bill C-44. Let's talk about that because it's an omnibus bill. A number of stakeholders have contacted my office with differing concerns on Bill C-44.

Our party is fully in favour of the commuter rail section and the section that deals with international bridges and tunnels and so on because those things, we think, are crucial for the future of our network, going in and out of cities and across borders.  

I have two questions. Given that it's a minority Parliament and given that brokerage and compromise is possible, why would you put forward an omnibus bill? Omnibus bills are usually reserved for majority Parliaments where the governing party can actually get things done. Having omnibus bills is actually a pretty irresponsible step. Don't answer that part because we have limited time. 

But trying to be constructive here, my question is, are you prepared to segment Bill C-44, cut it up, and get these things passed individually as David Collenette did in legislation in a previous Parliament, which was a majority Parliament, when he recognized that important things needed to happen? 

Hon. Jean Lapierre (Minister of Transport): If I may, certainly, Mr. Moore, when we introduced that bill I said that in this situation we had to have a consensus on the bill and I'm still looking for the consensus. If there are parts that are not part of a consensus, obviously I'm ready to consider that because I know that all parts of this bill are important but we are here in the art of the possible.  

Obviously there are certain parts that are problematic which may not for pass today, or we could re-introduce them in some other form. I'm ready to consider that positively.  

Mr. James Moore: Just so you know, so it's clear, we, as the official opposition, are prepared to sit down with you and do whatever is necessary to make sure that Bill C-44 works and take out the provisions and have some kind of meetings to that effect. 

My second question deals with the airport rent. At Pearson International Airport the current rent formula, from what you announced earlier this year, their rent is going to be reduced by about 6% but that leaves them still in the position where they handle roughly one-third of Canada's air traffic through Pearson Airport, but they're paying 66% of the amount of airport rents that Ottawa is collecting.  

Air Canada uses this as their hub internationally. And you don't see the United States government taxing O'Hare airport. You don't see them taxing Atlanta airport. You don't see them taxing major hubs of other carriers the way your government and your policies are taxing Pearson Airport.  

The city council is angry, the mayor is angry, the region is angry. Why haven't you done anything for the GTAA? 

Hon. Jean Lapierre: Well I'm sorry. If there is one airport that is enjoying the benefit of the new deal, it's Toronto. Over the term of the leases, the Government of Canada would have collected something like $13 billion. We had discussions with the Minister of Finance and eventually one today and we now offer to all airports across the country an $8 billion break and out of that $8 billion, $5 billion is for the Toronto airport, so they're the big winner of what happened with the revision of the leases.  

It's unfair for Toronto to say that they're being penalized more than others. As a matter of fact, all other airports in the country would love to have their business. If Toronto has too much business and if their rent is too high, Montreal would welcome receiving their business.  

They're getting $5 billion rebate out of the $8 billion that we got from the Minister of Finance, so they should be thankful; nothing else.  

Mr. James Moore: Well they're not and they're furious and this includes Liberal members of Parliament from that region and the city council and the MLAs and the premier and the council and the mayor and nobody is happy with what you've done there. It isn't working and frankly I don't think it's a particularly helpful comment for you to come here today and say, "If it's not working, fly to Montreal". I don't think Liberal MPs from Toronto are going to be very pleased with that.  

Mr. James Moore: In any event, I just want to take this opportunity to urge you that the GTAA needs reform, the rent formula isn't working, I appreciate you saying that it is but it is not. There's not a single stakeholder in the region who thinks that it is. 

Hon. Jean Lapierre: Talk to be about all the other airports across the country, do you want congratulation letters that I got? 

Mr. James Moore: Not from Toronto, Canada's national hub for our largest national carrier.