Vol. 138, No. 25 — December 15, 2004

Registration
SOR/2004-293 6 December, 2004

AIR TRAVELLERS SECURITY CHARGE ACT

Listed Airport Regulations

P.C. 2004-1489 6 December, 2004

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 2 and 84 of the Air Travellers Security Charge Act (see footnote a), hereby makes the annexed Listed Airport Regulations.

LISTED AIRPORT REGULATIONS

INTERPRETATION

1. In these Regulations, "Act" means the Air Travellers Security Charge Act.

PRESCRIBED AIRPORTS

2. The following airports are prescribed airports for the purposes of the definition "listed airport" in section 2 of the Act:

(a) Red Deer Regional; and

(b) Rivière-Rouge (Mont-Tremblant International).

COMING INTO FORCE

3. These Regulations come into force on December 23, 2004.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

Budget 2001 announced planned spending of $2.2 billion over five years to make air travel more secure in accordance with rigorous new national standards, including the creation of the Canadian Air Transport Security Authority (CATSA) to consolidate the delivery of key air security services in Canada. The schedule to the CATSA Aerodrome Designation Regulations (CATSA Regulations) lists the 89 airports where CATSA currently provides air security services.

To fund the air security initiatives announced in Budget 2001, the Air Travellers Security Charge (ATSC) was introduced, effective April 1, 2002. The ATSC is levied pursuant to the terms of the Air Travellers Security Charge Act (ATSC Act) and is payable by persons who acquire an air transportation service that includes a chargeable emplanement by an individual at an airport listed in the schedule to the Act. To ensure that the costs of enhanced air security are paid by those who benefit principally from it — passengers using the Canadian air transportation system — the airports listed in the schedule to the ATSC Act are the same 89 airports listed in the schedule to the CATSA Regulations.

In a press release dated October 22, 2004, Transport Canada announced proposed amendments to the schedule to the CATSA Regulations to add Mont-Tremblant International and Red Deer Regional airports to the list of airports where CATSA provides air security services. The press release also stated that the Government would be proposing measures to add Mont-Tremblant and Red Deer airports to the list of airports at which the ATSC applies. In addition, the Regulatory Impact Analysis Statement to the proposed amendments to the CATSA Regulations that were pre-published in the Canada Gazette, Part I, on October 23, 2004 stated that the cost of screening at Mont-Tremblant International and Red Deer Regional airports would be funded by the ATSC.

To date, the Government has not received any representations respecting its intention to add Mont-Tremblant International and Red Deer Regional airports to the list of airports at which the ATSC applies. Therefore, the Listed Airport Regulations make Mont-Tremblant International and Red Deer Regional airports prescribed airports for the purposes of the ATSC Act after December 22, 2004. Air carriers will be responsible for collecting and remitting the ATSC in respect of an air transportation service for which consideration is paid or payable after December 22, 2004, if the service includes a flight to or from Mont-Tremblant International or Red Deer Regional airport with a chargeable emplanement after that date.

Alternatives

There are no alternative instruments to ensure a consistent approach to the funding of enhanced air travel security. Appropriate legal authority is necessary to levy the ATSC on passengers making chargeable emplanements on flights to and from Mont-Tremblant International and Red Deer Regional airports.

Benefits and Costs

The current ATSC rates, including the Goods and Services Tax or the federal portion of the Harmonized Sales Tax where applicable, are as follows:

Domestic (one-way) $6

Domestic (round-trip) $12

Transborder (Canada - U.S.) $10

Other International $20

As set out in the Regulatory Impact Analysis Statement for the proposed amendments to the CATSA Regulations that were pre-published in the Canada Gazette, Part I, on October 23, 2004, the cost of proposed CATSA air security services at Mont-Tremblant International and Red Deer Regional airports will be funded by the ATSC.

Environmental Impact

A Strategic Environmental Assessment has been conducted and there are no important environmental effects associated with the Regulations.

Consultation

As set out in Transport Canada's press release of October 22, 2004 and in the Regulatory Impact Analysis Statement for the proposed amendments to the CATSA Regulations that were pre-published in the Canada Gazette, Part I, on October 23, 2004, the cost of proposed CATSA air security services at Mont-Tremblant International and Red Deer Regional airports will be funded by the ATSC. No representations respecting the Government's intention in this regard have been received to date.

Compliance and Enforcement

The changes made by the Regulations will be subject to the same compliance and enforcement provisions found in the ATSC Act.

Contact

Jim Daman
Director
Sales Tax Division
Department of Finance
Telephone: (613) 992-6298

Footnote a

S.C. 2002, c. 9, s. 5

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