Prime Minister Stephen Harper on Friday outlined how Ottawa plans to spend $254 million of a previously promised $1.4 billion to improve national security.

The money comes from transportation security funding already announced in the May 1 federal budget.

Prime Minister Stephen Harper speaking at a cargo plane facility near Toronto's Pearson International Airport.
(CBC)

The new measures will focus on improved security for air, rail, transit and marine security.

They include improved luggage and cargo screening for air passengers, upgraded marine security and improved background checks for transportation workers, said Harper, who spoke at a cargo plane facility near Toronto's Pearson International Airport.

Transit authorities in the six largest Canadian cities can also apply for some of the funding.

The $254 million will go toward new procedures, reviews of some existing procedures, and purchasing new equipment, said Harper.

When asked if the government was considering placing air marshals on planes, Harper said the idea was under consideration.

"This is how the fight against terrorism will be won," said Harper. "By thinking one step ahead of the agents of hate and terror."

In the budget, the Conservative government set out $133 million for security at airports, $95 million for rail and public transit security measures, and $26 million for improved air cargo security.

Transit security has been front and centre in Ottawa since 17 people were arrested in Toronto on June 2-3 in connection with an alleged plot to bomb targets in southern Ontario.

The arrests made headlines in the United States, with politicians there raising questions about the presence of Islamic extremists in Canada.

On Thursday, a high-level Canadian delegation, including Ambassador Michael Wilson, visited Capitol Hill to refute allegations that Canada has become a safe haven for terrorists.

White House spokesman Tony Snow said Thursday that U.S. President George W. Bush is urging Canada to remain on top of security.

Harper downplayed the timing of his announcement, saying it wasn't directly related to the arrests.

The announcement also follows a scathing 2003 Canadian Senate report on national security and defence, prompted by the Sept. 11, 2001, attacks in New York and Washington.

Written by Senator Colin Kenny, the report highlighted what it said were holes in the national security net, including a lack of scanning of cargo flights, inadequate background checks and security passes for airport employees, and outdated safety training for flight crews.

It also questioned how money raised through an air security tax implemented in 2002 was being spent. Ottawa placed a $12 fee on the ticket price of each one-way flight to cover security measures.