Remove Burden

St. Boniface - Friday, April 4, 2003 - by: Mike Reilly


The bankruptcy of Air Canada is a symptom of a greater sickness in the Canadian economy. Although Air Canada had specific internal failures which were compounded when they assumed Canadian Air's debt, the impairments inflicted on the nation's free enterprise by the Chretien-Martin government have reduced Air Canada's ability to recover in the post 9/11 environment. However, the last thing needed is more government handouts and corporate welfare to specific companies



fees and

Instead of a government focus on helping Air Canada, they should reduce the tax burden faced by all air carriers. Airport fees, federal levies and the new security tax contribute up to 75% of ticket costs on some routes. These have all acted as a deterrent to keep air travelers at home. Eliminating these barriers to commerce would help stimulate the industry without the costs of another federal assistance program.



need to

Extending this logic, all Canadian businesses struggle under heavy corporate taxation. Subsequent reductions in profit margins make businesses less competitive, both within our borders and internationally. Transportation Minister Collenette, Finance Minister Manley and Industry Minister Rock should jointly develop a strategy that allows Canadian businesses, including Air Canada, to prosper in the marketplace.




Mike Reilly



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