Debates of March 3, 2017 (day 63)

Date
March
3
2017
Session
18th Assembly, 2nd Session
Day
63
Members Present
Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Green, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. McNeely, Hon. Alfred Moses, Mr. Nadli, Mr. Nakimayak, Mr. O'Reilly, Hon. Wally Schumann, Hon. Louis Sebert, Mr. Simpson, Mr. Testart, Mr. Thompson, Mr. Vanthuyne
Topics
Statements

Question 681-18(2): Proposed Yellowknife Airport Improvement Fees

Thank you, Mr. Speaker. Mr. Speaker, yesterday, my colleague the honourable Member for Kam Lake was talking about the user fees and landing fees being proposed by infrastructure, the new potential infrastructure department. They talk about between $8 and $10 million going to be potential new revenue. In regards to the $10 million or this money being proposed to be collected by the new airport fees, how much is this going to be coming from the GNWT's medical travel and GNWT businesses? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister of Transportation.

Thank you, Mr. Speaker. I can get back to the Member with the exact details on it, but I can tell him right off the top between medical travel and business and relocation tickets that were out of Yellowknife, it comes to 3.7 per cent of total travel out of Yellowknife. It is roughly over 10,000 flights. Thank you, Mr. Speaker.

I thank the Minister for his commitment to get back. We are hearing different numbers out there, so it would be really nice to see what the percentage of this is. Mr. Speaker, with a percentage of this money going to the airlines, which we have heard in the news, how long did the department know about this, and why wasn't this part of the information package out to the public as they were promoting this new initiative?

We have known about this all along, that there was a fee charged by the airlines to implement this and a cost associated with them. It is customary right across Canada, as the article said in the newspaper yesterday. I don't believe we have presented it to standing committee or to the public in our presentations, just believing we were focusing on the costs of the airport improvement fee, which was important to get that out there so people know the cost of the southbound and northbound ticket. It was probably our oversight that this part wasn't included in it. That is my explanation on it.

I thank the Minister for that answer. I understand what they were trying to do. I just didn't know this fee existed, and I don't know a lot of people probably did know that. Mr. Speaker, as the honourable Member for Kam Lake spoke about the airline collecting these fees and charging administration fees, has the department agreed to a percentage that the government is going to accept the airlines to do it, or is this something that the airlines actually impose on the government for collecting these fees?

As we move forward, I believe this is something, like I said in the House yesterday, it is something we are keeping a close eye on across the country. If this bill passes in the House, we will definitely get back to committee on what is going on and keep everyone informed on where this process is going.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Nahendeh.

Thank you, Mr. Speaker. I thank the Minister for his answer. I guess I am just a little concerned that we are not being proactive in looking at this at the very beginning. I understand that the department is trying to get these fees implemented, but there are these hidden costs that people are not aware of and that should be looked at. Is the department willing to look at capping this administration fee at 4 per cent, which is a standard administration fee? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. As we were moving forward with this and learning more about the whole process, the airlines have argued that there is a financial burden put upon them by collecting this fee. It has been negotiated across the country to remit the airline improvement fee to them and give them a commission on this moving forward. We are well aware of the situation. It is a balancing act, just like anything, if we are going to impose this on the airlines, that they are reimbursed something that is sustainable for them as well moving forward. I wouldn't say it is a hidden fee. It is part of the $20 or the $10 moving south, but that is a fee that is included within that amount, so it is not an additional fee that goes to the customer. We will keep committee informed on that as this moves forward and where we end up on a commission.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Deh Cho.