AIRPORT RENT (2005)

 

The federal government plans to adopt a new rent policy for federally-owned airports, commencing in 2006. This new policy is expected to result in $7.8 billion in rent relief for Canada’s airport authorities over the course of their existing leases, and will address inequities in the system.

 

For eight years leading up to the new rent policy, the Victoria Airport Authority had been the only Tier II (small) airport in Canada paying rent. While the efforts to address the long-standing and difficult problem of airport rent equality are being made, it would be better to have an immediate implementation of the new formula rather than a phased approach.

 

With a minority government in power, there is uncertainty as to the length in which it will stay in power, and whether or not this proposed airport rent formula will be maintained.

 

At a time when the air travel industry is struggling, this important sector of our economy cannot afford for this newly proposed rent formula to fall out of political favour. Air transportation is vital to BC and Canada because of the size and breadth of the country and the federal government has the responsibility to support the health of the air transportation industry. A viable airport facilitates trade and attracts investment, thus spurring economic growth.

 

THE CHAMBER RECOMMENDS

 

That the federal airport rent formula be fully implemented immediately, rather than the phased approach that has been proposed.