Privatizing Canada’s airports is a bad idea: Senator Dawson
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There is absolutely no evidence of any advantage for Canadians if the governance model of Canadian airports changes.
The problem with privatization is clear: it favours profit over service.
The government should seriously consider its options before it completely destroys a model that serves Canada and Canadians well.
The current model works because it provides the accountability necessary to ensure that government and airports focus their investments on airport infrastructure maintenance and improvement. Airport management is entrusted to non-profit organizations whose role is specifically to manage, operate, and develop airport services under long-term agreements.
On the other hand, privatization means turning the existing corporations into for-profit corporations, thus generating profit for shareholders instead of using these resources to develop airport infrastructure and fund operating costs. As a result, the Canadian government would not assume responsibility for problems or debts incurred by the airport authorities, ultimately reducing service accountability to travellers.
Many of these decisions or directions are motivated by the greed of the Finance Department and Finance ministers, eager to do anything that could help the government generate short-term revenue increases, balanced budgets or reduced deficits.
So much that a department like Transport Canada, which controlled a host of major entities like airports, CN, and Air Canada, gradually experienced a narrowing of its sphere of operation and influence, to accommodate the will of the Finance Department and its ministers. As a result, the minister of Transport, a powerhouse in cabinet since the department was created in the 1930s, gradually became relegated to that of a small player.
If this scenario were to be applied to Canadian airports, the travelling experience would be completely jeopardized. Instead of privatization, the federal government should use its influence to bring relevant stakeholders to the table to discuss systems that could address the inefficiencies within air-travel experiences in Canada.
In 2012, airports were generating more than $45 billion annually and their operations provided over 200,000 jobs. The Senate Committee on Transport and Communications tabled a report entitled The Future of Canadian Air Travel: Toll Booth or Spark Plug, Report on the Future Growth and Global Competitiveness of Canada’s Airports that suggests that air travel in Canada is essential for tourism, business, and connecting communities both nationally and globally. If the government starts using airport resources as a way to fund the Finance Department, privatization would take away any benefit airports give to the Canadian economy.
There is absolutely no evidence of any advantage for Canadians if the governance model of Canadian airports changes. That being said, privatizing Canadian airports is a bad idea. Hopefully, the government will consider the interests of Canadian travellers before they opt for a path of turbulence through privatization.
Dennis Dawson is a senator representing Lauzon, Quebec. He is chair of the Senate Committee on Transport and Communications and is a member of the Senate Committee on Foreign Affairs and International Trade.
This article appeared in the April 24, 2017 edition of the Hill Times.
Note to readers: The Honourable Dennis Dawson retired from the Senate of Canada in February 2023. Learn more about his work in Parliament.
There is absolutely no evidence of any advantage for Canadians if the governance model of Canadian airports changes.
The problem with privatization is clear: it favours profit over service.
The government should seriously consider its options before it completely destroys a model that serves Canada and Canadians well.
The current model works because it provides the accountability necessary to ensure that government and airports focus their investments on airport infrastructure maintenance and improvement. Airport management is entrusted to non-profit organizations whose role is specifically to manage, operate, and develop airport services under long-term agreements.
On the other hand, privatization means turning the existing corporations into for-profit corporations, thus generating profit for shareholders instead of using these resources to develop airport infrastructure and fund operating costs. As a result, the Canadian government would not assume responsibility for problems or debts incurred by the airport authorities, ultimately reducing service accountability to travellers.
Many of these decisions or directions are motivated by the greed of the Finance Department and Finance ministers, eager to do anything that could help the government generate short-term revenue increases, balanced budgets or reduced deficits.
So much that a department like Transport Canada, which controlled a host of major entities like airports, CN, and Air Canada, gradually experienced a narrowing of its sphere of operation and influence, to accommodate the will of the Finance Department and its ministers. As a result, the minister of Transport, a powerhouse in cabinet since the department was created in the 1930s, gradually became relegated to that of a small player.
If this scenario were to be applied to Canadian airports, the travelling experience would be completely jeopardized. Instead of privatization, the federal government should use its influence to bring relevant stakeholders to the table to discuss systems that could address the inefficiencies within air-travel experiences in Canada.
In 2012, airports were generating more than $45 billion annually and their operations provided over 200,000 jobs. The Senate Committee on Transport and Communications tabled a report entitled The Future of Canadian Air Travel: Toll Booth or Spark Plug, Report on the Future Growth and Global Competitiveness of Canada’s Airports that suggests that air travel in Canada is essential for tourism, business, and connecting communities both nationally and globally. If the government starts using airport resources as a way to fund the Finance Department, privatization would take away any benefit airports give to the Canadian economy.
There is absolutely no evidence of any advantage for Canadians if the governance model of Canadian airports changes. That being said, privatizing Canadian airports is a bad idea. Hopefully, the government will consider the interests of Canadian travellers before they opt for a path of turbulence through privatization.
Dennis Dawson is a senator representing Lauzon, Quebec. He is chair of the Senate Committee on Transport and Communications and is a member of the Senate Committee on Foreign Affairs and International Trade.
This article appeared in the April 24, 2017 edition of the Hill Times.
Note to readers: The Honourable Dennis Dawson retired from the Senate of Canada in February 2023. Learn more about his work in Parliament.