Policy & Positions Manual
Provincial Issues - Transportation and Infrastructure
Capital Funding Stability for BC’s International Airports (2010)
BC’s International Airports are rapidly evolving from regional transportation hubs into large-scale, multi-modal, international airports. As BC continues to grow, international airports will play an increasingly vital role in the economic growth of the province by providing the connectivity essential to keeping companies competitive in a global economy, and by facilitating significant job creation within the province
Growth in the province will necessitate a need to reduce pressure on YVR and, as such, will drive significant growth in airport activity through BC’s other international airports on an annual basis. Increased access from the entire province, by road and air, will allow BC’s international airports to play a greater role in relieving the pressure on YVR’s already challenged air and ground access network.
Infrastructure upgrades and improvements are required to support airport operations and airside land development at all of BC’s international airports. Current federal funding is provided through the Airport Capital Assistance Program (ACAP). ACAP is a line-budget item and, as such, is subject to changing governments, ministers, budget constraints and capital funding burden shifts between government priorities.
BC’s international airports have significant capital expenditure programs relying on ACAP funding. They are forced to institute business plans based on uncertain capital funding to complete the plan. The objective of running BC’s international airports in a generally accepted free-enterprise business model becomes extremely onerous under this funding model.
This financial hurdle is commonplace among airports across Canada. It is significantly more pronounced at larger, rapidly expanding, provincially significant airports.
THE CHAMBER RECOMMENDS
That the Provincial Government work with the Federal Government to identify and allocate a consistent and predictable annual funding model for British Columbia’s International Airports.
