"Canadian government criticized for overcharging on airport security"

Wednesday, December 11, 2002

Canadian government criticized for overcharging on airport security
United Kingdom - The London Financial Times


Members of Canada's governing Liberal Party joined forces with the
opposition in criticizing an airport security charge being levied on all
airline passengers travelling to, from or within Canada. 

The Liberal-controlled House of Commons Standing Committee on
Transportation voted in favour of a call to the government to place a
moratorium on the levy -- 24 dollars (15 US) -- on every round-trip
ticket. 

The tax -- introduced in the wake of the September 11, 2001, terror
attacks on the United States -- is supposed to pay for the installation
of sophisticated bomb-detecting equipment, and the training and
recruitment of more security personnel at airports. 

Instead, the House of Commons committee was told in testimony, many
small airports still do not have the equipment yet their passengers
still must pay the tax. 

There have also been objections to the flat tax of 24 dollars which is
applied equally to a local round trip of as little as 100 miles (160 km)
intercontinental flights. 

Meanwhile -- according to information received by the committee -- the
special agency handling the security tax and its distribution has
accumulated a surplus of 400 million dollars (250 million US). 

But Finance Minister John Manley refused demands to abolish the tax or
even place a moratorium on it. 

He repeated previous pledges that he would take another look at the tax
as he prepares for his next budget, due in February.


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