"The Minister of Transportation has reaffirmed our government's commitment to not reopen the Tripartite Agreement as the Toronto Port Authority tackles its substantial financial challenges and explores engaging a third, and potentially private, party to run the Toronto Billy Bishop Airport."
- Adam Vaughan M.P, Spadina-Fort York.
Today's announcement that the Toronto Port Authority is seeking private sector capital and operators to solve its financial difficulties is very concerning. While it may be easy to understand these challenges as related to the pandemic, there are more complex and serious issues at hand. It is more serious than just a simple call for a private-sector operator. There is significant public interest at stake, and our government continues to watch this file closely from several different perspectives.
The Toronto Port Authority has been selling off public assets in recent years in a bid to restructure their finances. The land around their head office has been transacted and rezoned to acquire capital and operating funds, and assets at the airport itself have also been sold as part of this restructuring.
Today's announcement is the latest move to privatize or outsource public assets in order to sustain viability. It raises several concerns. All of these issues will need to be assessed with an eye to protect employees of the airport, the travelling public, the impact on airlines operating out of the waterfront airport, and most importantly, the impact the facility has on the surrounding neighbourhood and the waterfront.
As the Member of Parliament for the area, I am very concerned about today's announcement. The potential for a Highway 407-style deal is obvious, in particular, because of the precarious economic situation that the airline/airport sector now finds itself in. The pandemic cannot be used as an excuse to relinquish what little public control there is over this facility. Any new deal cannot lead to the potential loss or compromise of oversight, safety and other operational considerations.
Similar proposals in the past show just how critical the challenge is now. A previous move to privatize and contract-out operations at Pearson International Airport were stopped precisely because of these sorts of issues. The public interest here is paramount. The Port Authority's struggles should not be resolved at the expense of Toronto's waterfront. The public's right to access and enjoy the waterfront remains central to how our federal government evaluates all developments in the harbour and beyond along Toronto's lakefront.
Preserving Our Waterfront
Our government is committed to a clean, green waterfront for all in Toronto. To this end, billions have been invested in naturalizing the Don River, creating new parks, enhancing flood protection, and building more transit and affordable housing. Additionally, our government has delivered new supports for cultural organizations for both capital and operating programs in the harbour. This vision of the lakefront is protected by the Tripartite Agreement, which frames airport use and operation.
I have spoken with Transportation Minister Omar Alghabra, and he has given me his full assurance that the Tripartite Agreement will not be re-opened as part of this process. The Minister reaffirmed our government's commitment to respect and adhere to the terms of the agreement between the City, the Port Authority and the Federal Government. It is an agreement that clearly prohibits jets and runway expansion.
Employees of Billy Bishop Airport
The Port Authority has a responsibility to its employees. Collective agreements and workers' rights must be in the foreground as a concern. Third-party operators will need to improve the bottom line for the Port, while also realizing a return on their investment. A private operator will either have to cut costs or boost revenues to realize a new business model on-site. Layoffs and reduced wages are a predictable outcome. As a public agency, the Port should not be selling off public assets or contracting out public operations if it means job losses or reduced wages. This would be an unacceptable outcome of this crisis.
Impacts on Travellers
In the absence of layoffs, the other revenue source for a third-party operator is to grow existing revenue streams; either through direct passenger fees or hidden fees charged to airline operators that eventually get passed on to passengers. The more layers of managerial oversight, the greater the costs that will have to be generated to realize a return on investment. If layoffs and wage cuts are not the solution, consumers will be the ones responsible. This is a serious concern and needs to be addressed as the airport is a public service, and the public should not be subsidizing private operators using a facility that taxpayers themselves have funded and created.
Airport Monopoly
A single airline already has substantial control over slots, route options and ground operations at the airport. This is a public facility, and it should not operate to the benefit of one airline at the expense of competitors. Any new business deal to sell or contract airport operations must respect the need to protect and develop an open, fair and competitive environment. The process must not concentrate control over the airport and place all elements of the facility under a single owner. The process must protect the public interest.
As Member of Parliament for the riding where the island airport operates and the Port Authority is headquartered, I will continue to advocate for the public interest and the residents of the community surrounding the facility.
The health of the people and the environment, and the integrity of public governance of the Port must drive decision-making around this proposal. The Tripartite Agreement is the governing document that frames and regulates this discourse. I am thankful to the Minister and the Prime Minister for their support of our community and the principle of a clean, green waterfront for all.
Adam Vaughan
Member of Parliament
Spadina-Fort York |
