Minister Garneau’s appearance before the Standing Committee on Transport, Infrastructure and Communities (TRAN) on Main Estimates 2020-21 and Supplementary Estimates (B), 2020-21 held on November 5, 2020

55. CANADIAN AIR TRANSPORT SECURITY AUTHORITY (CATSA)

CANADIAN AIR TRANSPORT SECURITY AUTHORITY (CATSA)

Requesting the re-profile, from 2019-20 to 2020-21, of $41,478,788 in capital funds and $4,150,000 in operating funds through the
2020-21 Supplementary Estimates (B).

CATSA is seeking to re-profile: (i) $41,478,788 in capital funds in support of its Hold Baggage Screening (HBS) system upgrade and other capital projects; and

(ii) $4,150,000 in operating funds in support of activities related to CATSA’s transition to an independent, not-for-profit Designated Screening Authority.

Key Messages:

  • CATSA is requesting a re-profile of approximately $41.5 million in capital funding. The sources of this funding are budgets 2010, 2011, 2014 and 2018.
  • CATSA is also requesting a re-profile of approximately $4.2 million in operating funding. The sources of this funding are budgets 2010, 2011 and 2019.
  • CATSA’s mandate is to provide effective and efficient screening of persons who access aircraft or restricted areas through screening points, the property in their possession or control, and the belongings or baggage that they give to an air carrier for transport.
  • The re-profiled capital funds will support the purchase and deployment of equipment and systems in service of CATSA’s continued provision of security screening at designated airports.
  • The re-profiled operating funds will primarily support activities related to CATSA’s transition to an independent, not-for-profit Designated Screening Authority.
  • The screening services provided by CATSA protect the public by securing critical elements of the air transportation system.

If pressed: on the future governance of CATSA.

  • Through Budget 2019 and the Budget Implementation Act, 2019, the Government of Canada is committed to selling CATSA’s assets to an independent, not-for-profit Designated Screening Authority, and to transferring responsibility for aviation security screening services to that entity.

Background

  • CATSA is an agent parent Crown Corporation, fully funded by parliamentary appropriations.  It was created in December 2001, as part of the Government of Canada’s response to the events of September 11, 2001, pursuant to the Canadian Air Transport Security Authority Act (CATSA Act) and the Budget Implementation Act, 2001. It came into force on April 1, 2002.
     
  • The Security Screening Services Commercialization Act, which was introduced via Budget Implementation Act, 2019, received royal assent on June 21, 2019. The Act contains provisions for the establishment of a not-for-profit corporation, known as the Designated Screening Authority (DSA), to provide security screening services at Canadian airports. It also contains provisions related to the sale or disposition of CATSA’s assets and liabilities, the closing out of its affairs, and its dissolution. Subject to negotiations, which have been delayed by COVID-19, the sale of CATSA assets to the DSA is notionally set to take place in 2020-21.
  • A majority of the $41,478,788 in re-profiled capital funds will be used for the purchase of equipment and integration work associated with upgrades to CATSA’s Hold Baggage Screening system at airports across Canada. The balance will be allocated to the purchase and deployment of equipment and systems to improve the security of the screening process at Pre-Board Screening checkpoints, and to support the Restricted Area Identity Card Program and CATSA’s network infrastructure. The need for the capital re-profile is primarily due to changes to airport project plans and schedules that are beyond CATSA’s control.
     
  • A majority of the $4,150,000 in re-profiled operating funds are earmarked for procurements of legal and accounting services to support the transfer of responsibility from CATSA to the Designated Screening Authority—procurements that have been deferred given the delayed transfer date. The balance is associated with the payment of CATSA’s insurance premiums due to the impacts of COVID-19.
  • CATSA’s current 2020-21 budget is $872,100,000. With both the capital and operating re‑profiles, CATSA’s 2020-2021 budget will increase to $917,628,788.