Bill C-8 (Historical)

Brian Storseth Westlock—St. Paul, AB

Thanks very much, Mr. Chair.

I don't have a lot of time, Mr. Banack, but I agree with you. That's not just infrastructure that's lost--that's infrastructure that we as Canadians paid for. But that's a different topic that we'll get on to.

I've done a lot of work on the shippers. As many of you know, I've met with many of you in the past on the shippers' bill of rights. But one of the things we're really losing sight of today is that it wasn't about the level-of-service reviews or costing reviews.

When we first came into it, the first step was legislation. It was Bill C-8 and the shippers' bill of rights that we put in place. The former government, the former parliamentary secretary, didn't even address that in Bill C-25 and Bill C-44 when they were in government. It didn't address half the issues. It didn't identify shipper service issues, disconnects, or railway shipper accountability. It didn't define solutions to address service and accountability issues.

I think we need to at least admit that we already took the first step in the last Parliament. Would you guys agree that Bill C-8 was a good step forward and triggered the level-of- service review?

Lawrence Cannon Minister of Transport

Thank you very much, Mr. Chairman and members of the committee.

My officials and I are here today to discuss the 2008-09 main estimates for the transport, infrastructure, and communities portfolio. This is my third opportunity to appear before this committee and to deliver the main estimates. Since my first appearance, significant progress has been made within the portfolio. As you know, it is a wide-ranging portfolio that brings together Transport Canada, Infrastructure Canada, and 16 crown corporations.

In this portfolio we continue to tackle some of the most important issues facing Canada today, including the productivity of our economy, transportation safety and security, environmental sustainability, and the quality of life in our cities and communities, as supported by public infrastructure.

Members of the Standing Committee on Transport, Infrastructure and Communities have made important contributions in each of these areas, and I'd like to take this opportunity at the outset to thank you for your active involvement in the legislative agenda and the number of important policy decisions and questions that have an impact on the portfolio.

Specifically, I'd like to thank the members of the committee for its study of Bill C-23, which modifies the Canada Marine Act. The proposed amendments will strengthen the operating framework of Canada port authorities, helping to build a stronger and more competitive marine sector. Also key was the committee's participation in the study of rail safety and the subsequent amendments to the Railway Safety Act.

I also thank the committee for its consideration of the future role of the Navigable Waters Protection Act, the NWPA. We believe that the NWPA, one of the oldest pieces of legislation in Canada, needs to reflect current economic needs and respond to the increased volume and variety of uses of Canada's waterways. I look forward to working with you as we move forward on this and other issues central to transportation and infrastructure in Canada.

Over the past year, this government has made serious investments in transportation and infrastructure throughout Canada. In doing so, we are improving the quality of life of Canadians, and making Canada more competitive on the world stage.

As you know, we are moving forward on Canada's biggest infrastructure program ever. The Building Canada Infrastructure Plan is $33 billion worth of investments in matters that are important to Canadians, such as the environment, the economy and stronger and better communities.

Our plan provides an unprecedented, long-term, predictable investment that will allow provinces, territories and communities to plan for the future. In fact, more than half of the funding—$17.6 billion, to be exact—is going to municipalities through the 100 per cent GST rebate and the Gas Tax Fund, to modernize Canada's infrastructure.

It is expected that Building Canada, with other levels of government and funding partners, will generate at least $50 billion in new investments. Since the Prime Minister launched the Building Canada Plan last November, we have made significant progress in implementing this plan. We have signed framework agreements with eight provinces and territories, and we are well advanced and close to concluding agreements with the remaining provinces.

And, we are investing the gas tax in over 2,000 community projects.

Under Building Canada, we are making early progress through priority investments across Canada. These investments support a more productive economy, such as our $100 million commitment to improve highways in New Brunswick, and a cleaner environment. As you know, we have announced $1 billion in funding for public transit across the Greater Toronto area to reduce gridlock.

We are also making key investments to support the delivery of clean drinking water, such as the $50 million investment in the Huron Elgin London Clean Water Project in Southern Ontario.

We are supporting more liveable communities—such as the $40-million investment in the Centre of Sport Excellence in Calgary, and the $8-million contribution for the cultural precinct, Quartier des Spectacles, in Montreal.

In addition to the Building Canada plan, we continue to take action in each transportation mode. With respect to public transit, we brought investments to $1 billion per year, and in budget 2008 we've set aside $500 million to support capital investments, through the public transit capital trust.

In the rail sector, we passed Bill C-8, protecting rail shippers from potential abuse of market power by railways. We also began a review of rail freight service and signed two memorandums of understanding with the Railway Association of Canada. The first enhances the security of rail transportation in Canada, and the second addresses the issue of railway emissions. Both underscore the central role of railways to trade in Canada.

We are also making significant gains in the air sector. We are very encouraged by the progress that has been made in the year since we launched “Blue Sky”, and the momentum for more liberalized air travel continues to build.

Last June, when Prime Minister Harper met his European colleagues at the Canada-European Summit, the leaders agreed to launch negotiations for a comprehensive air services agreement between Canada and the European Union.

I am very happy to report to this committee that one year after the launch of “Blue Sky”, the third round of negotiations has begun in Brussels. This is good news for travellers and for the travel industry.

In the marine sector, as I mentioned previously, with your assistance we have moved ahead with amendments to the Canada Marine Act. I was also happy last month to announce that the Government of Canada is providing $101 million over five years to help Marine Atlantic Inc. acquire a charter vessel that will address increasing traffic to and from Newfoundland and Labrador.

We've made progress in building a more sustainable transportation system as well, and we must. Transportation accounts for about 25% of all Canada's greenhouse gas emissions. That's why we're moving forward with national fuel consumption regulations for new cars and light trucks. It's also why we're moving ahead in key areas of our ecoTransport strategy, which covers all modes of transportation.

We are also working with our provincial and territorial colleagues to improve our environment and reduce greenhouse gas emissions by delivering clean water, green energy, and cleaning up contaminated sites.

Honourable Members, this is the work we are currently doing and, as you can see, we have accomplished much together. But much more work yet remains. That is why I am asking you today to recommend that Parliament approve the spending in the Main Estimates that were tabled by the President of the Treasury Board on February 28.

The 2008-2009 Main Estimates for the portfolio, which total $4.544 billion, include $1.032 billion for Transport Canada and $2.456 billion for the Office of Infrastructure Canada. The remainder of the funding is allocated to the various Crown corporations.

Because we don’t have time to go into all the numbers, I would instead like to briefly discuss the two major components of this portfolio—Transport Canada and Infrastructure Canada.

For Transport Canada, the 2008-2009 Main Estimates—$1.032 billion—show a net increase of $173.3 million from the $859 million level in the 2007-2008 Main Estimates. The $173.3 million net increase is due to increases of $293.5 million for new initiatives, and changes to ongoing programs that are offset by $120.2 million in decreases in funding for the winding down of programs and government-wide reductions.

Of the $1.032 billion, 9.7 per cent—or $100.1 million—is for flow-through payments, including: $54.9 million for the Confederation Bridge; $41.9 million for the St. Lawrence Seaway; and, $3.3 million for the Victoria Bridge.

The remaining resources of $932.2 million, combined with respendable revenue of $345.6 million, represent a $1.28-billion budget that is available to the department to cover the following expenses: $471.7 million for grants and contributions programs; $382.5 million for personnel costs; $278.3 million for other operating costs; $78.2 million for capital; and, $67 million for employee benefit plans.

Let me now turn to the Infrastructure portion of this portfolio.

The total funding being sought is $2.456 billion, a net increase of $437.8 million from the $2.018 billion in the 2007-2008 main estimates. The $437.8 million net increase is due to the greater spending on infrastructure programs, and in particular I would like to mention $327.8 million for the provincial-territorial infrastructure base funding program, for the second year of this program, and a $197.5 million increase for the gas tax fund, which steps up in total from $800 million to close to $1 billion this year.

These increases were offset to some degree by decreases in funding for programs where most of the commitments were made in previous years.

Of course the estimates also provide for funding needed for the operations of the department and for the delivery of its programs in the amount of $37.5 million.

As Minister, I have a number of other portfolio responsibilities that do not require any appropriations from Parliament and are therefore not displayed in the Estimates. They include: the Ship Source Oil Pollution Fund; the Great Lakes Pilotage Authority; the Pacific Pilotage Authority; the Atlantic Pilotage Authority; the Laurentian Pilotage Authority; the Blue Water Bridge Authority; Ridley Terminals Inc.; the Royal Canadian Mint and Subsidiaries; and, Canada Lands Company Ltd.

Honourable Members, my limited time today does not allow me to go into detail regarding all the items on this list. However, I believe the numbers I have presented today demonstrate the importance this government places on the priorities we have identified under this portfolio.

Mr. Chairman, I welcome the Committee’s questions on our overall approach, or on any of the specific measures contained in these estimates.

Thank you.

Ken Boshcoff Thunder Bay—Rainy River, ON

Mr. Speaker, at a recent meeting of the natural resources committee, we learned of a further emergency regarding the availability of rail transport services for the forestry industry. Witnesses testified that pulp cars are being artificially restricted by both national rail companies. The resulting shortage is inflating transportation costs and strangling product distribution.

The Minister of Transport has the power to step in to assist during this crisis. He can utilize the tools that were passed in Bill C-8 and force the railways to free up their railcars that are hidden in storage.

On behalf of suffering forestry workers in my riding and across the country, I call on the Minister of Transport to stand up for these workers and use all available means to ensure availability of rail services for the forestry industry.

Massimo Pacetti Saint-Léonard—Saint-Michel, QC

Mr. Speaker, it is a pleasure to join the debate today from a Liberal Party perspective on Bill C-23, An Act to amend the Canada Marine Act, the Canada Transportation Act, the Pilotage Act and other Acts in consequence. This bill is mainly comprised of technical changes and amendments.

Normally, when the House receives bills of this technical nature, members of Parliament will often rely on the bureaucrats to highlight deficiencies in the present act or acts. In this case it is my understanding that the transport committee has made changes based on consultation with all stakeholders and this bill has everyone's support.

It is common knowledge that transportation in Canada is essential. And when I talk about transportation, I am talking about all types of transportation, including water, road, air transportation and so on.

Transportation has always been an essential part of building this country from the beginning, when our forefathers came here by boat and continued to use seaways as a primary mode of transportation until the invention of airplanes.

Furthermore, let us not forget that water was one of the few efficient ways of travel in Canada's formative years. And then, how can we forget, the building of Canada's railway from east to west which was the cornerstone of unifying and keeping this country together.

Things have evolved and our way of doing things has changed, but the transportation sector is still essential to this country's economy. The Liberal Party has always been a part of the transportation sector's evolution.

There is no denying that the Liberal Party, whether in government or in opposition, has always been a part of laying the groundwork to ensure that we have a network of infrastructure and transportation to allow this wonderful country to reach its fullest economic potential.

Our Canadian ports are fundamental to the development of trade. They enhance the opportunities for every Canadian to access our abundant natural resources across the country, so that they can be sold to foreign markets that can utilize the product for value added or for direct consumption.

Trade is a key factor in the Canadian economy and without the necessary infrastructure and means of transportation, Canada would be unable to reach its maximum potential to benefit all Canadians.

With that being said, as parliamentarians we cannot afford to miss opportunities to promote our Canadian ports. These kinds of initiatives would compel us to utilize portions of our infrastructure funds, in addition stimulate our rail network and a pan-Canadian road network to encourage growth, and to develop an economy that goes beyond a micro-economy and expand it to a regional and national one.

In 1998, under 13 years of successful Liberal government, the Canada Marine Act received royal assent. The Canada Marine Act was the first comprehensive piece of legislation to govern several aspects of Canada's transport legislation.

The Canada Marine Act was a component in the commercialization of the St. Lawrence Seaway, the framework for a strategic gateway and trade corridors, and included provisions for the further commercialization of federal ferry services.

In 2003, a review of the legislation was compiled to ensure that the government continued to make all the ports in Canada economically competitive, specifically ports in British Columbia, Ontario, Quebec and the Atlantic provinces.

May I remind the Conservative government that the bill before us comes from a Liberal bill, formerly C-61. I am pleased that the Conservatives have the ability to recognize good fundamental pieces of legislation that are beneficial to the Canadian economy and place partisanship aside.

If it were not for the NDP and the Bloc forcing an election, good pieces of legislation such as Bill C-23, Bill C-7, Bill C-3, Bill C-11 and Bill C-8, all based on Liberal transport bills which died on the order paper, could have been passed much sooner.

The Standing Committee on Transport, Infrastructure and Communities heard from port authorities, other stakeholders and read written submissions to the committee on Bill C-23. An overwhelming consensus between stakeholders seems to exist, indicating that the committee should move forward and adopt Bill C-23 which is why we are debating this in the House today.

Some of the benefits of Bill C-23 include access to contribution funding. The fact that access to contribution funding will now be permitted, the Canada Port Authority can apply for contribution funding for infrastructure and security for environmentally sustainable projects.

The bill also addresses governance. With the changes in the governance policy in the Canada Marine Act, the port authorities would now be more in control of their destiny as they would have the ability to promote a more stable, long term management framework.

Bill C-23 would also allow for borrowing limits. With this act, the port authorities would now have the ability to borrow and, thus, would directly allow the Vancouver Port Authority, the Montreal Port Authority and the Halifax Port Authority to move to a commercially based borrowing system.

Bill C-23 would also allow for amalgamation. In the act, the Fraser River port, the North Fraser Port, would be allowed to amalgamate with the Vancouver Port, which would allow for a centralized body and would, in turn, be beneficial to all British Columbian ports in terms of efficiency, whether it be financial resources, human resources or other benefits that would arise from centralization.

The bill also addresses enforcement. Bill C-23 would also give the port authorities the ability to enforce minor violations by having the ability to impose monetary penalties, making it easier to enforce and manage minor violations.

Again, it is my understanding from members of the transport committee, and I cannot stress this enough, that all the stakeholders appearing before the committee spoke positively toward the bill. Members in the House should not confuse the positive aspects which came out of the committee that considered, deliberated and debated Bill C-23.

I urge all members to support the legislation for the good of the Canadian economy.

Guy Lauzon Stormont—Dundas—South Glengarry, ON

This is not particularly to the amendment. I'd like to just go on the record as saying, Mr. Chair, that during the lead-up to the creation of Bill C-8--the debate and the passage--no one in industry or in the opposition raised this particular concern, prior to Bill C-8. The Canada Transportation Act was reviewed in 2001. No one called for a review at that time. As a matter of fact, no provincial minister, that I'm aware of, has called for a review.

Now, Bill C-8 has combined the idea of a group final-offer arbitration, something that our shippers and farmers have been calling for for some time. Right here I think we should thank the Minister of Transport for giving us Bill C-8.

The level of service review has been a major commitment that our farmers and our shippers were requesting, and we're doing that. There again, I think our agriculture minister, Minister Ritz, promised a review, and he's seeing it gets done. As a matter of fact, I don't think there's a government since railways were formed that has done more to help.

Brian Storseth Westlock—St. Paul, AB

Well, Mr. Chair, we've seen some reports from the industry and several different agricultural shippers. We've discussed with them the possibility of there being some prohibitive cost to railways, and this is something I think we should include within the level of service review that is already being undertaken by the Minister of Transport, after the passage of Bill C-8.