Jeff Colbourne
Northern News Services

NNSL (Sep 18/98) - Despite widespread protest, it's going to cost more to fly Northern skies.

In Ottawa on Wednesday, Federal Transport Minister David Collenette approved Nav Canada's long disputed and much dreaded user fee schedule.

While Nav Canada says the package contains additional benefits for Northern users, Transportation Minister Jim Antoine is not happy.

"I am greatly disappointed with the consistent refusal of Nav Canada and the federal government to recognize the impact the new fee structure will have on Northern Canada," said Antoine yesterday.

Nav Canada said one of the benefits for the North is a two-year phase-in of increases to the terminal service charges. The first phase-in will take place Nov. 1, 1999 with the final phase on Nov. 1, 2000.

Air ambulance flights paid for by government and all fire fighting flights will be exempted.

Total savings for the North will be $7.5 million with $5.5 million due to deferrals.

Antoine is not impressed with the savings. "This is merely a delay. The pain will come in small cuts over time rather that all at once. Delays or deferrals were not what we had asked Nav Canada or the Minister of Transport to consider." Antoine added that the government's biggest concern all along was added costs to air freight in the NWT. "In the end, fresh groceries and other essential air cargo delivered to our Northern and remote communities will cost more," he said.

Donald Ingham, Nav Canada's acting chief financial officer, vigorously defended Nav Canada's fees. He said it is the same basic user fee structure as the rest of Canada despite the higher cost of operating North of 60..

"By law, Nav Canada is not allowed to charge more in the North for similar services it provides elsewhere in Canada, of special importance, in an area where the unit costs providing service are so much higher," said Ingham.

Yellowknife North MLA Roy Erasmus said while Nav Can made a few concessions, he insists Nav Can is still not looking at revenues generated from overflights into NWT airspace.

He said with the opening of polar routes in Russia, more flights will be made into Northern airspace which means big windfalls for Nav Canada. Erasmus speculates around $140 million will be brought in from en route fees annually.

He is still hopeful if overflight revenues accumulate, the North will see user fee rates go down.

"The opening is there. They're listening. They know we've made it an issue. I think the door is open so that we can try to impress how much money they're going to be making off of the North and try to get some extra reductions for the North. I'm very optimistic." Antoine will meet with Collenette next week in Regina at the Council of Ministers meeting.

Western Arctic MP Ethel Blondin-Andrew was travelling yesterday and was unavailable for comment.

Her legislative assistant Chris Lalonde said Blondin-Andrew was trying to get in touch with Collenette to discuss the issue.

In past meetings with Collenette, Lalande said, Blondin-Andrew has impressed upon the Transport Minister the North's unique situation and the need to look at creative ways to deal with user fees.

Lalande said he has not heard any talk about subsidies, but that doesn't mean there has not been discussions.