Bill C-11 (Historical)

An Act to amend the Canada Transportation Act and the Railway Safety Act and to make consequential amendments to other Acts

This enactment amends the Canada Transportation Act. Certain amendments apply to all modes of transportation, including amendments that clarify the national transportation policy and the operation of the Competition Act in the transportation sector, change the number of members of the Canadian Transportation Agency, create a mediation process for transportation matters, modify requirements regarding the provision of information to the Minister of Transport and modify and extend provisions regarding mergers and acquisitions of air transportation undertakings to all transportation undertakings.
It amends the Act with respect to the air transportation sector, in particular, in relation to complaints processes, the advertising of prices for air services and the disclosure of terms and conditions of carriage.
The enactment also makes several amendments with respect to the railway transportation sector. It creates a mechanism for dealing with complaints concerning noise and vibration resulting from the construction or operation of railways and provisions for dealing with the transfer and discontinuance of operation of railway lines. It also establishes a mechanism for resolving disputes between public passenger service providers and railway companies regarding the use of railway company equipment and facilities.
The enactment also amends the Railway Safety Act to create provisions for the appointment of police constables with respect to railway companies and procedures for dealing with complaints concerning them.
In addition, it contains transitional provisions and consequential amendments.

Canada Transportation Act

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, my question for my colleague is about hazardous materials.

A very important factor in the debate is the types of things we put on our rail system that put people at risk, not just the operators, but the populations around them. Chlorine gas has moved through a number of highly populated areas.

In the United States, that has been categorized as a weapon of mass destruction because it can kill up to 100,000 people within a 15 mile radius. The U.S. has introduced legislation to move those gases outside of densely populated areas.

Will the committee at least start to look at what the U.S. is doing in terms of rail safety and how it is dealing with the issue of chemicals going through communities that are densely populated.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, this is a matter of grave concern to us.

I mentioned earlier in my speech that there has been a call for a public inquiry into rail safety. What we are seeing increasingly with the larger number of rail accidents is a greater risk to Canadians, particularly in urban areas where these hazardous wastes are transported. This is of real concern.

Just last December there was a rail accident in my riding of Burnaby—New Westminster. Fortunately, it was not hazardous waste but had it been hazardous waste going through a populated area, goodness knows what the result might have been.

It is a matter of great concern to us that the government seems to want to move to self-managed systems when clearly in rail transport it has not worked. It certainly would not work in air transport. It would be highly irresponsible for the government to move toward less regulations on things like hazardous waste.

The committee will be looking at this issue. We want to ensure Canadians are protected but we also urge the government to do the right thing. It should move to a public inquiry as quickly as possible so that we can finally determine all the elements that are there in terms of rail safety, why we are seeing these increasing numbers of accidents and try to avoid what could well be a catastrophe for Canadians if the present situation continues. More rail accidents mean greater danger for Canadians.

[John Maloney, Liberal, Welland, ON]

Mr. Speaker, I am pleased to speak today to Bill C-11.

Transportation has been integral to our nation's growth and development. Using transportation as a building block to overcome major challenges, Canada has built a mature and robust transportation system that has enabled our nation to compete with the best in the world.

As our transportation system continues to grow and mature, we must adopt innovative policy approaches to successfully meet new and emerging challenges in this sector. A statutory review of the Canada Transportation Act was completed in 2001 and Bill C-11 is the third attempt to legislate amendments arising from this review. Its two predecessors, Bill C-26 and Bill C-44, both died on the order paper with the dissolution of Parliament followed by general elections.

Successive governments have appreciated that new policy approaches are required to meet the emerging challenges in the transportation sector and keep them competitive and stable.

Bill C-11, as my hon. colleague from Ottawa South has pointed out, takes most of the good ideas from the previous Liberal bill, Bill C-44 and starts to adjust the framework found in the Canada Transportation Act. This bill would allow Canada to position its transportation system to respond to the needs and expectations of Canadians and address domestic and international pressures to remain competitive.

The bill includes many of the good provisions found in the previous bills that would make rail and air sectors more efficient, enhance competition and environmental protection, and create stable conditions for investment.

I would like to concentrate my remarks on the rail industry, the industry that helped build this country and still links us from sea to sea to sea.

Although railways make a tremendous contribution to Canada's economy, the growth of the industry has also contributed to a significant increase in concerns expressed by those who live or work near railway property.

At present, Transport Canada is responsible for regulating the safety of rail operations, including the transportation of dangerous goods, under the Railway Safety Act and the Transportation of Dangerous Goods Act. However, it is not currently involved in matters involving noise or fumes from railway operations, except train whistling.

The Liberal government recognized the complexity of addressing these kinds of issues and obviously wants the communities and the railway companies to seek solutions through collaborative approaches or mediation.

On December 7, 2000, the Federal Court of Appeal ruled that the Canadian Transportation Agency had no jurisdiction to address complaints related to noise, vibration or fumes generated by the operations of railway companies regulated under section 95 of the Canada Transportation Act. Consequently, there are no specific provisions in the act or in any other federal legislation setting out how the agency or any other body can regulate issues concerning railway operations that are not related to railway service or safety.

In this context, in May 2003 the Federation of Canadian Municipalities and the Railway Association of Canada signed a memorandum of understanding in order to build common approaches pertaining to the prevention and resolution of issues that arise when people live and work in close proximity to rail operations. After May 2003, the Canadian Transportation Agency implemented an improved mediation initiative but it was not enough.

The Liberal government recognized that circumstances exist whereby mutually agreeable salutations may not always be possible. While there have been successful collaborative and mediated solutions to railways' nuisance issues in the past, these solutions are not always sufficient and may not be sufficient in the future given the important role that rail transport may continue to play in Canada's economic future. This being the case, action was required on both the legislative and collaborative fronts.

Following extensive public consultation, an act to amend the Canada Transportation Act was first introduced in Parliament in February 2003 that included several provisions related to railway noise and gave jurisdiction to the Canadian Transportation Agency to address noise related complaints. Bill C-26 made it to the transport committee but died when the House prorogued in November 2003, as I previously indicated. In the next session of Parliament, the Liberal government entertained additional representations from the public, members of Parliament and other stakeholders on the proposed legislative amendment. The result was Bill C-44 tabled in March 2005 and now Bill C-11.

The proposed changes to the act authorized the Canadian Transportation Agency to review noise complaints and, if required, order rail companies to make changes to reduce unreasonable noise when constructing or operating a railway or rail yard. The agency must be satisfied that the parties were unable to reach a voluntary settlement of this dispute on their own.

Residents and municipal leaders in the city of Thorold in my riding of Welland have been very supportive of the changes to these sections to all incarnations of this bill. Excessive noise and emissions emanating from a rail yard in Thorold have significantly concerned citizens residing in the close proximity for many years. While prolonged noise like this could be irritating enough during the day, it is far worse to have it going throughout the night and into the early morning hours.

I personally visited adjacent homes and heard and saw how serious the problem is. All night idling and shunting of rail cars force some residents to go to sleep using ear plugs. The vibrations are so severe at times that household furniture shakes. Some have complained of air emissions with a soot like material landing on their cars and residences. We all can appreciate that such fine particles will move inside by numerous ways thereby constituting even more significant health concerns. Outdoor pollutants become indoor pollutants. Such particulate matter can adversely affect human health. The very young, the genetically predisposed, the elderly and those with pre-existing heart or lung disease are more susceptible to the adverse effects of this particulate matter.

It is well-documented that long term effects of noise exposure can cause a myriad of health problems. According to the World Health Organization, people may feel a variety of negative emotions when exposed to community noise and may report anger, disappointment, dissatisfaction, withdrawal, helplessness, depression, anxiety, distraction, agitation or exhaustion.

Noise can produce a number of social and behavioural effects in residents, besides annoyance, that include changes in overt everyday behaviour patterns. Residents close windows, do not use balconies or decks, turn TV and radio volume up louder or write letters to elected officials. It can also change their social behaviour for the worse. People affected by noise may experience aggression, unfriendliness, disengagement and non-participation. There can be adverse changes in social indicators such as residential mobility, hospital admissions, drug consumption and accident rates. Finally, their mood or mental health can be affected. They may be less happy and more depressed.

The research of the World Health Organization also states that stronger adverse reactions have been observed when noise is accompanied by vibrations. It is no wonder that these residents want to see a better way of dealing with this noise problem.

This community wants to deal with those noise complaints through the Canadian Transportation Agency. They believe in mediated solutions that are reached through fair and non-confrontational ways. As has been mentioned, this approach is less litigious, quicker, cheaper and a more friendly resolution but they can only stand the aggravation for so long.

We tried working with the rail company to come to some kind of solution, such as allowing the trains to idle in a more rural area. We inquired about technologies so that the diesel engines could be shut off rather than idling for hours on end. However, we met with no willingness to compromise and the rail company hid behind the position that a caveat about the noise had been written into the municipal subdivision agreement that is registered on the titles of the affected homes. Admittedly, a caveat on the titles of their property should constitute notice of many of the concerns expressed. However, the reality is that few are made aware of such notices and no one appreciates their full implications. It also is cold comfort to the residents who have invested their life savings in properties that they cannot enjoy to their full benefit. Caveats on titles to properties must not mitigate or be an unequivocal response to noise pollution or air pollution.

In the rail company's defence one must concede that the changes required may affect their operating efficiencies and most certainly the cost of relocation to a more appropriate location. However, in such situations one must consider the greater good. My support is for the constituents in my riding and in communities in ridings throughout country.

The Thorold community knew the benefits of Bill C-44 and was disappointed when it died on the order paper and can now be hopeful that it is included in Bill C-11.

Another area I would like to address very briefly is the abolition of the Air Travel Complaints Commission. It does concern me. This commission was there to assist consumers with complaints on air travel. The government takes the position now that competition is an informal way of utilizing a complaints process. One can choose another airline. This might be fine for the frequent flyer travelling between major cities who can choose another airline but in many rural areas there is not the luxury of service by more than one airline. Retention of the Air Travel Complaints Commission is most important to service these communities and these flyers.

In addition, clarity in air fare advertising is a very positive initiative. The Canadian Transportation Agency would have the authority to make and enforce regulations to require that the advertising price includes all costs to the airline for providing the air service.

Advertisements would also indicate fees, charges and taxes collected by the airline on behalf of a government body or airport authority. In addition to the prices of airline tickets for both domestic and international travel, the travelling public is often literally shocked when actual ticket costs are far in excess of the advertised costs of the flights.

I am also concerned about the reduction in the membership of the Canadian Transportation Agency from seven part time to five full time centred in Ottawa. With all their increased responsibilities I am sincerely concerned that they will have insufficient manpower to undertake their current responsibilities and the new responsibilities that the act would give them. That would be a travesty if they certainly do not have the tools to deal with the situation presented to them.

In conclusion, I look forward to a full review of Bill C-11 at committee and listening to the comments and concerns of the transportation industry and the public.

[Steven Blaney, Conservative, Lévis—Bellechasse, QC]

Mr. Speaker, I have listened carefully to my hon. colleague’s speech. Just like him, there are citizens, constituents from my riding who are concerned about the noise caused by the railway yards. I have had the opportunity to meet with representatives of the various groups affected. We know that it has harmful consequences.

Today we have a bill that makes it possible to respond to this situation and to take these elements into consideration, by offering a mechanism to settle this problem through the Canadian Transportation Agency.

My question for my hon. colleague is as follows: according to him, does the bill in its present form properly meet his constituents’ expectations?

[John Maloney, Liberal, Welland, ON]

Mr. Speaker, certainly, prior to this act there was no resolution of noise complaints. No one really had the authority to deal with it. This is a good first step. Whether this will work or not, we will soon see.

My concern is whether there is going to be sufficient manpower in these five members to deal with all the solutions or all the problems that come from across the country. We have heard even in this debate today that community after community have this problem and residents are subjected to these loud noises at all times of the day or night. There may be a plethora of complaints to the commission or to the agency and whether it will be able to deal with it in a timely fashion again remains to be seen, but as I said, it is a good first step that we did not have before.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I thank my hon. colleague, the member for Welland, for his comments. In looking through the act, as a representative of northwestern British Columbia, we have a terminus in Prince Rupert where many of the trains and goods pass through, particularly to the Asian markets but other markets as well.

We have noticed over the last number of years, particularly with the absolutely diabolical sale of B.C. Rail to CN, that the accident rate has gone through the roof. Hazardous materials are spilling into lakes and rivers near communities. Just recently, volunteer fire departments in my region were sent a letter by CN that suggested that if any of these materials were to cause a major spill in the region that these fire departments were meant to hold tight for 12 hours until CN could get its act together and show up with a hazardous materials crew.

These are volunteer fire departments. They do not have the equipment, training or money to handle such spills. Looking through the act, we know that the government, neither the previous one nor this one, has not really taken on aggressively what is in the new age of shipping of increased traffic and diversity of goods and also the increased complexity of materials that are actually being transported.

We hear from my colleagues of the work being done in the United States to prevent the bad combination when the stars line up in the wrong way to have a material passing through either a sensitive environment or ecosystem or through a community. My first question to the member is, is not such a powerful review required?

My second question is around the agency and appointment process. I know there have been some bad legacies in the previous government's appointment process of not always being able to distinguish talent from partisanship. I wonder what confidences he has with respect to the new government's ability to make that important distinction and actually appoint people to this vital committee who are known and based on transparency, which is not written into the act as it is right now.

[John Maloney, Liberal, Welland, ON]

Mr. Speaker, transparency in appointments is always a very good thing. I cannot really respond to that because the new government has been very derelict in making its appointments. There are many vacancies on many commissions, judicial vacancies as well, and it is difficult to comment because the government has to move very quickly to fill some of these positions.

With respect to my colleague's first question, certainly the transportation of dangerous goods is a matter of real concern. In fact, I attended a training exercise with volunteer firemen in my region along with the former member for Churchill who was present from his party. They were concerned as well about what was travelling through their region, especially if there was a wreck. They were concerned about how quickly they could find out what exactly was in a tanker that was leaking some kind of substance.

I think there should be a better tracking system and there should certainly be one for rail lines that go across our borders. The rail lines in my region cross a major river and if there was a derailment or the possibility of an explosion, it would create a tremendous problem not only from an environmental perspective such as water pollution, but a main arterial route leading to the United States would be affected.

I would encourage and support more stringent requirements to deal with goods which are potentially explosive, noxious, et cetera. I welcome the member's comments. I feel the same way.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Speaker, I too have some concerns about the transparency that weeds its way or not through this bill.

It is interesting that my colleague mentioned, just in passing, our record of appointments. I am particularly proud, for example, of the fact that our government fought for the appointment of Stephen Lewis, a very well known former leader of the NDP, as Under-Secretary-General at the United Nations. I am even more proud of our appointment of Ed Broadbent for seven years as the President and Chief Executive Officer of Rights and Democracy in Montreal. I do not exactly share my colleague's interpretation of our appointments record.

I want to come back to a question that was raised by the member for Welland which dealt with the Air Travel Complaints Commissioner. If I am paraphrasing right, the member said there are a number of average citizens who fly from time to time. They are not regular commuters and they do not use airports like bus stations like many of us in the House who travel regularly.

I want to come back to what was said by Bruce Hood who was the first actual Commissioner of the Air Travel Complaints Office and a former NHL hockey referee. He expressed his concern that the proposed elimination of the position of the Air Travel Complains Commissioner would make it increasingly difficult for Canadians to resolve problems with airlines.

I am a little concerned about this and I would like to put it to the member for Welland to see what his instinct is in this regard as we look to transfer the commissioner from an independent status into the Canadian Transportation Agency.

[John Maloney, Liberal, Welland, ON]

Mr. Speaker, certainly, with any complaints system a prompt response for the little guy, the Canadian, against the big airline industry may get lost in the shuffle when the government gets involved. An independent complaints commission will cut through that and it will be much better for constituents in our respective ridings and for Canadians. Canadians will have a quick, independent option to complain to and get a quick response.

[Roger Valley, Liberal, Kenora, ON]

Mr. Speaker, my question to the member for Welland will be in regard to the history of this bill and its former incarnations.

Although Northern Ontario is very remote and very rural, it suffers many of the issues that he brought up. During my municipal government days we suffered through a lot of these same issues. Citizens need to be listened to.

I think he mentioned in his speech that this bill began in the House in February 2003. I want to know how inclusive the debate was at that time. I would also like to know how inclusive the search was from other communities, both rural and urban all across Canada. Could the member give me a bit of the history on how we developed this position?

[The Acting Speaker, Royal Galipeau]

It will have to be a short history. The hon. member for Welland has 40 seconds.

[John Maloney, Liberal, Welland, ON]

Mr. Speaker, as I said, this is the third attempt at getting this through. Certainly, when legislation is cut off because of an intervening election or dissolution of Parliament, a full and complete review of the act is not possible. We will hopefully be able to do that this time and that would be very beneficial.

[The Acting Speaker, Royal Galipeau]

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Victoria , Education; the hon. member for Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, Marine Industry.

[Steven Blaney, Conservative, Lévis—Bellechasse, QC]

Mr. Speaker, I rise today to speak in support of Bill C-11, introduced by my hon. colleague, the Minister of Transport, Infrastructure and Communities.

This bill would update the Canada Transportation Act of 1996. It is the result of extensive consultations and its basic purpose is to improve the act by enhancing transportation safety and transparency, by reducing inconveniences to users—in terms of noise as we saw earlier—and by protecting the consumer, who uses the modes of transportation.

Today my presentation will focus more on air transportation. There are businesses in Lévis—Bellechasse that regularly ship products manufactured in the area.

There are amendments that would protect the rights and entitlements of the air travelling public by ensuring that air carriers will always represent their products in an open and transparent manner. This afternoon we saw that sometimes there are hidden costs. Air carriers are currently being more transparent on a voluntary basis. The industry is taking steps in the right direction, but this government must not derogate its responsibility to the air travelling public. It therefore proposes to amend the act, to permit its administrator, the Canadian Transportation Agency, to develop, implement and enforce regulations on the recommendation of the Minister of Transport, Infrastructure and Communities, if necessary, to ensure transparency in the pricing of passenger air services.

The amendments in the bill would make clear the government's expectations with regard to the air carrier industry. These amendments would be in keeping with initiatives in the U.S. and Europe that are also designed with transparency in mind.

The proposed approach is also consistent with the broader strategic thrust of this government to legislate only when necessary and to make carriers accountable.

The amendments would also require all operators providing commercial air services in Canada to prominently display their terms of carriage at their business offices and on any Internet site from which they sell these air services. Many travellers buy their tickets on the Internet. It is important to ensure that when a price is posted, it is in fact the price the traveller will pay. That is how this will work.

There is another addition.

There are amendments that would make clear that Canada is wholly committed to all of its trading relationships in international air services. The amendments would ensure that an international agreement or convention respecting air services would have prevalence over the Competition Act in the event of an inconsistency or conflict between the two. Canada is a trading nation and so the government believes it is imperative that Canada's partners can rely on their air transport trading relationships with us. These amendments would send that signal.

Lastly, Mr. Speaker, there are amendments that would ensure that air services provided on behalf of the Canadian Armed Forces or in the case of a declared emergency are not subject to part II of the Act. Part II of the Act provides the framework for commercial air services. Military aircraft are sometimes used in humanitarian missions and, consequently, should be exempt in such cases.

It is only sensible to distinguish that air services provided for our nation's armed forces, or in the case of a declared emergency, are not regular nor for-profit occurrences. Therefore the provision of these types of air services should not be covered by the act. In that sense these amendments would bring clarity to such situations, and should be considered housekeeping measures that ensure the continued relevance of this act.

We are proposing these amendments because they would ensure a higher degree of transparency and consumer recourse, as well as bring clarity to its application. Also they make the complaints process simpler and more efficient by integrating it into the Canadian Transportation Agency's permanent functions. In this way, the amendments to the air transportation provisions in the act contribute to building a modern, efficient transportation system, which is integral to the well-being of Canada's economy.

At the same time, the amendments would continue to allow air carriers to develop and grow based on the merits of the choices they make in the course of doing business.

In conclusion, the proposed amendments reflect this government's commitment to a competitive air transportation system; one that balances the need to update statutory and regulatory instruments, where necessary, to respond to developments in the air industry marketplace, with the responsibility to ensure that consumers are aware of their rights and entitlements.

A vote was taken in this House today on softwood lumber. Our government is taking action. I believe that Canadian taxpayers, our constituents and parliamentarians want a government that works and that is up to the challenge. This bill will improve the Canada Transportation Act and give results.

Parliamentarians are asked to take concrete action. People expect parliamentarians to be up to the challenge and want them to ensure that our government functions as efficiently as possible with the utmost respect for democracy.

This government believes that these amendments to the Canada Transportation Act are warranted, will give the Canadian Transportation Agency the ability to continue to serve the air travelling public, and will ensure that Canada continues to have a viable and competitive air services industry in the years to come.

My speech focused mainly on air transportation, but there are many aspects to this bill. It aims to solve the problem of noise pollution caused by rail, and proposes measures to improve safety and to protect consumers who travel by plane.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, my riding of Parkdale—High Park is an urban riding, two sides of which are bounded by rail lines, both CN and CP. Where those lines cross it is called a junction, and that is where my office is located. It is a historic area that has been a hub of railway transportation.

In the junction and many other parts of my riding, because of growing deindustrialization in our community we are seeing a greater density of residential development, and we are finding more and more homes right up near railway lines. Of course we are hearing more and more complaints about noise and concerns about railway safety.

My question to the hon. member is twofold. Given the large population of Canada, more than 32 million citizens, 110,000 persons in my riding alone, how will the noise and safety complaints process work so that these five individuals will be able to hear complaints from throughout the Canadian population? How will it work so that it is not cumbersome and is not a bottleneck?

Second, with only five members, what kind of representation will there be on the panel? Will there be citizen representatives? Will there be a balance from different communities? Who does the member envisage being appointed to the committee?