Thank you, Mr. Chair.
This is the third major round of VIA cuts since it was formed in 1977. The current cuts will reduce the frequency between Halifax, Moncton, Miramichi, and Montreal; between Montreal and Ottawa; between Toronto and Niagara Falls; between Toronto, Stratford, London, and Sarnia; between Toronto, Brantford, London, and Windsor; and between Toronto, Winnipeg, Edmonton, and Vancouver.
VIA claims that this is modernization and a taking of action to better meet customer demand. It makes little sense. To eliminate service and drive away customers is not to deal with customer demand.
It's especially puzzling when one considers the strategic expansion under way on other passenger railways around the world. Canada's stance is in stark opposition to what's going on even in the country to the south of us, the U.S., where rail expansion is going on at a tremendous pace. At the same time that we in Canada are reducing, they maintain.
VIA claims that it has nothing to do with the reductions in their budgets. But by way of fact, the budget was cut by $6.5 million this year; two more cuts will reduce it by $15.1 million in 2013 and by $19.6 million in 2014. There will be future cuts as a result of these budget cuts, and it's the expectation that they will be even more severe.
Inside sources suggest that all service between Toronto and Niagara Falls; between Toronto and Sarnia; and between Montreal, Gaspé, and Victoria-Courtenay will be eliminated. The future of the two remaining eastern and western transcontinental trains is not secure, as far as we can tell.
Transport Canada is currently conducting an internal and highly critical review of VIA's future, but the public is not being asked for input on this project, which will decide VIA's fate. Nor are we in the transportation committee being asked for our input on this project.
These cutbacks come after we have just spent $923 million to renew VIA's capital. It makes little sense to renew a transportation system that then reduces many of its services.
VIA says additional trains will be added in the Toronto-Montreal triangle at a time to be determined. But if the national train system is to be limited to Toronto, Ottawa, and Montreal, why have a train system? Why are we doing this? And why spend $923 million of good capital to invest in a train system if we're not going to have a train system?
Canadians want a train system. They want to be able to take an environmentally friendly transportation system. The train is the only environmentally friendly transportation system that we use, and many other countries are investing in these things.
VIA's investment program has run into serious problems, ranging from the insolvency of one firm contracted to rebuild the bulk of its rolling stock to cost overruns and demands by one freight railway for more investment in infrastructure projects on its lines that weren't factored into VIA's original budget.
VIA is apparently constantly at the beck and call of the freight railways, who own most of the infrastructure. Passenger rail comes second. It shouldn't.
The cuts will not improve VIA's service, nor will they boost its financial performance. Other passenger railways have proved that reducing train frequency doesn't pay; it costs.
The best example is found on Amtrak. That quasi-public corporation has completed studies and has determined that it actually costs money to reduce service, because employees and equipment have a one- or two-day turnaround delay, during which employees receive held-away pay and equipment sits idle, without generating any ticket revenue. Amtrak is now expanding its service.
But it's discouraging to hear VIA President Marc Laliberté say that passenger trains don't make sense for distances of 800 kilometres or more. A quick look at the maps and timetables of rail passenger systems around the world prove that this is a mistaken viewpoint. The U.S. and Europe are served by modern, efficient trains operating on numerous routes of 1,000 kilometres or more.
If we're to compete globally, we need to improve our passenger service. We're not competing globally by deleting our passenger service. Redesigning, modernizing, and renewing means providing more service, not less. The biggest driver of acceptance of rail service is the frequency of service. If the frequency of service disappears, fewer people will use it, not more.