WHEREAS the Vancouver International Airport YVR is an economic generator and facilitates job creation province wide, with the most recent economic impact study showing that the airport is responsible for a total economic output of 5.183 billion and 54,182 person years of employment; AND WHEREAS the connectivity provided by the airport is essential both to keeping British Columbia companies competitive in a global economy and to attracting new economic development and high quality jobs to the province; AND WHEREAS only 40 of Canadas current bilateral air treaties with other nations allow access by foreign carriers to YVR; AND WHEREAS this restrictive international aviation policy puts the Vancouver International Airport at a competitive disadvantage with US West Coast airports and prevents it from maximizing its potential as a Gateway between Asia and North America: THEREFORE BE IT RESOLVED that the Union of BC Municipalities urge the federal government to: 1 enter into immediate negotiations with the United States for a true Open Skies agreement; 2 pursue planned aviation negotiations with the Government of China to seek substantial liberalization and improved market access; and 3 introduce Canadas own Open Skies aviation policy and pursue it on a global basis with its trading partners.
TRANSPORT CANADA response to FCM conveyance Liberal Government In response to concerns expressed in recent years that the amount of rent charged to Canadian airport authorities threatens their competitiveness and long-term financial viability, Transport Canada undertook a comprehensive review of its policy respecting the rent paid by airport authorities leasing airports from the federal government. This review sought to balance a fair return to taxpayers with the need to promote the financial viability and competitiveness of the air industry. On May 9, 2005, I announced that the Government of Canada will adopt a new rent policy for federally owned airports. This policy is expected to result in close to 8 billion in rent relief for airport authorities over the course of their existing leases, and will address current inequities in the system. As a result of the new policy, which lowers airport rents by more than 60 over the remaining life of airport leases, major airports will see a substantial reduction in their long-term costs. This should in turn benefit both airlines and consumers. By now, you are undoubtedly aware of the key parameters of the new formula, which uses a progressive scale based on airport gross revenues to set out more modern and equitable rents. For those airports that are currently paying rent, there will be a transition period leading to the full implementation of the new formula in January 2010. Approximately 350 million in rent reductions will be realized during the transition period. Affected airports that are not yet paying rent will begin to pay according to the new formula once they reach the revenue thresholds or meet other conditions that require them to pay rent. In addition to the rent reduction, the government is forgiving the outstanding chattel payments owed by airport authorities. This will result in additional savings of 21.9 million and will be of particular benefit to smaller airports and the communities they serve. The new rent policy recognizes the critical role that airlines and airports play in Canadas economy. It also responds clearly and fairly to the concerns of the aviation sector while at the same time respecting the interests of Canadas taxpayers. Each federally owned airport affected by this announcement - be it small, medium, or large - is expected to benefit financially in every year that it has to pay rent and over the long term. With regard to the measures being undertaken to liberalize Canadas international air policy, I am pleased to report that progress is also being made on this front. The House of Commons Standing Committee on Transport tabled an interim report on May 19, 2005, providing an initial response to the guidance document that I had earlier tabled with the Committee outlining a broad spectrum of air liberalization options and posing questions for the Committees consideration. The Committee has identified the need for further deliberation and has planned additional international consultation in the coming months. Its work will complement Transport Canadas own efforts to advance the liberalization agenda to benefit Canada and Canadians. On February 24, 2005, Mr. Norman Mineta, U.S. Secretary of Transportation, and I agreed to explore further liberalization of the air transport relationship between Canada and the United States. Most recently, the department has followed this commitment with the release of a consultation document focused on the Canada-U.S. bilateral air transport agreement. Stakeholders were requested to submit their view by June 30, 2005. The federal government has also continued bilateral discussions with other countries with a view to greater liberalization. I would note the recent successful expansion of bilateral arrangements with China and India as key accomplishments in this regard. The agreement with China provides for a three-fold increase in permitted passenger and cargo flights, while the agreement with India allows a five-fold increase in passenger flights. I trust that the foregoing has clarified the departments position with respect to these matters.
FEDERATION OF CANADIAN MUNICIPALITIES This resolution was adopted as Category A resolution at the March 2005 meeting of the National Board of Directors and was conveyed to the federal Minister of Transport.