Bill C-52 (Historical)

Fair Rail Freight Service Act

An Act to amend the Canada Transportation Act (administration, air and railway transportation and arbitration)

This enactment amends the Canada Transportation Act to require a railway company, on a shipper’s request, to make the shipper an offer to enter into a contract respecting the manner in which the railway company must fulfil its service obligations to the shipper. It also creates an arbitration process to establish the terms of such a contract if the shipper and the railway company are unable to agree on them. The enactment also amends provisions related to air transportation to streamline internal processes and certain administrative provisions of that Act.

Fair Rail Freight Service Act

[Royal Galipeau, Conservative, Ottawa—Orléans, ON]

Mr. Speaker, I would like to thank the member for making such an eloquent speech.

Does he believe that rail services are essential services?

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, there is no doubt that rail services are crucial.

However, if the intention was to nudge me toward the topic of negotiation by talking about “essential services”, my 52 years on this planet have taught me not to take the bait.

I think the hon. member has his answer.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, in the member's opening comments he made reference to CN's privatization in the 1990s. I was not here in 1995 when that occurred, and I am not too sure how the New Democrats voted then. Is the member aware of how NDP members voted? Did they want it privatized? If they did not want it privatized, was he prepared to advocate that it should be purchased back?

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I never thought I would say this, but I have something in common with my Liberal colleague: I was not in the House in 1995 either.

I hope he will forgive me for not having done the research to know how the NDP voted at that time. If the question really is that important, I can do the research and send him a response by email.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I would like to put the same question to the hon. member and thank him for his speech on this important matter.

Two of the members on the opposite side, including the Minister of State for Western Economic Diversification have raised this bugbear of whether it is an essential service.

I wonder if the member would like to speak to the fact that if, on the one side the government does not believe that the transport of our goods across the country is important enough to protect those people who are producing bitumen, growing grain and shipping equipment east and west, why does the government feel it cannot intervene on that side to properly regulate, provide fair rates and equal access to fair service? However, on the other side it throws in the bugbear that if the rail workers should think maybe they are not being paid fairly or have proper pension plans and so forth, that is the time for the heavy hammer of government.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I would like to thank the member for her very relevant and interesting question.

For a while now, the issue of “essential services” has been coming up almost every time someone gets up to speak.

I am sorry to be responding with a question. If they are so desperate to have us say that rail services are essential services, why have the members on the other side of the House given this issue so little attention for so long?

[Anne-Marie Day, NDP, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, earlier we were joking with the member for Chicoutimi—Le Fjord.

He said that a moose would be faster than the train, or that the train takes the milk run, and so forth.

In any event, the member from Trois-Rivières might be able to back me up here, but I think this file has been mismanaged. I remember in the 1990s that businesses wanted to join forces to build lines between their companies and the railway. The rail company was refusing to transport their freight.

Does my colleague have the impression that use of the railway has been abandoned in Canada?

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, it is obvious that many companies that had other options turned to other modes of transportation because of the obsolete service.

However, rail service is the only option for many companies and farmers and our rail service has outdated equipment and services.

There is every reason to be concerned and to quickly take action to address the situation because, whether we like it or not, rail service is also the mode of transportation of the 21st century.

[Alexandrine Latendresse, NDP, Louis-Saint-Laurent, QC]

Mr. Speaker, I am here today to speak to Bill C-52, which would amend rail transportation legislation.

It really surprised me that I could find something to be angry about in a rail transportation bill. Perhaps "angry" is a bit strong. Exasperated may be a better word.

What could I find so exasperating in an attempt to provide recourse for unsatisfied users of rail shipping services? It is very simple. It is as though the government is pretending to fix the problem to give the illusion that it is taking action. Members will notice that I said "exasperating" and not "surprising", since this is becoming a trend.

Bill C-52 is another example of the Conservative government's chronic mismanagement. Rail transportation fuels Canada's economy. Of all the countries in the world, Canada is one that was built by the railway. The railway was behind every aspect of our growth.

The quality of rail infrastructure still has a direct impact on Canada's entire economy today. This is not news to the government; it knows that.

Usually, the Conservative government—as patriotic as ever—would defend our businesses' access to the rail system. Nearly 150 years ago, at the start of our Confederation's growth, it was the country's lifeblood. It was an almost heroic era when Canada dreamt of defying the world.

That was the 19th century. While the situation is quite different today, it is easy to explain. Rail companies are extremely prosperous and make ridiculous profits. And that is understandable because without them, Canada would be paralyzed and would have almost no economy.

A crucial detail that I should point out, even though it may be useless to do so, is that there are only two rail companies in Canada. The minister spoke of a “duopoly” when describing the situation, and that was fine in the first hour of discussion. But I do not like that term because “duo” means “together”, not just “two”. And that is the crux of the issue.

The ridiculous profits I mentioned keep piling up. Let us face it, there really is no competition. These two companies share all of Canada's rail transportation business and more, and they always have. These are two major, historic Canadian companies, if we can still call them Canadian now that they have been privatized.

That is the government's only motivation: do not upset the large corporations that are raking in huge profits. If any disputes arise between those companies and the small shippers, let us give the companies the power to shut them up quickly. Some would even say with nickels and dimes.

One might speak out and say that it is counter productive, that it is irrational to do that. Yes, that is true, but this would be forgetting that, first and foremost, these people, the government and the railway companies, know each other and talk to one another. These people are perhaps not exactly in collusion, but they definitely share certain sympathies. Yes, they are sympathetic to one another.

In addition, in the intellectual shackles of puritanism, which is the basis of the entire Conservative approach, it is clear that the fittest gets his power directly from God and must not be opposed. Success comes from God almighty. Put that all together and there you have the inspiration for Bill C-52 and for everything else, of course.

Here is what bothers me about the result, Bill C-52. I already know how the Conservatives will respond: “The economic recovery is too fragile. We must not make any waves. We have to ensure that we have everything going for us. We cannot do anything to compromise the railways' efficiency, not for the measly crumbs, not for a company worth, at worst, $100,000.”

After all, we are not reinventing ourselves. These people are not likely to engage in such deep reflection now in the middle of February.

This is the same old story. After dragging its feet for so long, now the government is stubbornly defending a characteristically weak and contemptuous bill. Let us rename it: Bill C-52, an act that says that railway companies can break any contract they like for $100,000, and be done with it. What a bargain.

Rail lines are real structures that result in exchanges and economic benefits that are just as real. There is a direct impact at all levels of economic life. If remote shippers can no longer rely on the two national companies, they might not exist at all. If shippers are neglected, they and their communities are not being allowed to participate in the country's development.

All paths starting on the margins lead to the centre. Coming from a government that claims it will leave no stone unturned to achieve prosperity, it is rather strange. For people who take every opportunity to proclaim to the world that supporting the right is the best way to ensure the well-being of business, it is more than revealing.

Is that the Conservative government's great recovery plan for outlying regions? Yes, undoubtedly. Bill C-52 is striking proof. Develop resources, process them, but do not try to sell them because all the railway cars are taken. This is more proof that there is no plan and that this will have to wait, again. However, be happy, there are a lot of people lined up to talk to the government and you can chat with them. There is the manufacturing sector, my entire generation and all aboriginal peoples of Canada. You will surely find something to talk about to pass the time.

I would like to acknowledge the work my colleague from Trinity—Spadina has done on the issue before us today. I say "colleague" because that is how we refer to each other here, even though I would prefer to use a word that better represents the respect I have for her. She not only wants to do everything, she can do everything. If the official opposition transport critic says that she has met with all of the stakeholders, it means that she has met with all of the stakeholders, even the ones who were hiding. And if she says that a clear majority does not like anything in this bill, it means that there is damning and incontrovertible evidence.

The government can pull all kinds of adjectives out of the Oxford English Dictionary to defend itself, evade the issue and have us believe it worked very hard to restore balance, but no one is listening. That is what I find so exasperating. I hope I am being clear. I find the gaps in logic between what this government claims it is doing and what it is actually doing appalling. The urgent need to fix the problems with the rail companies was a perfect opportunity for the overconfident Conservative government to show that it could do its job. And what happens? It is the first to jump into bed with the rail companies. Nothing gets in the way of love, not even having the lights out.

When Canada has a problem, it would make sense to look elsewhere to see if other countries have found solutions, not to copy them, but to at least draw some inspiration from them. We do not live in a vacuum. And I mean that in a geographic sense, because intellectually speaking, it is obvious that the other side has sucked people in with their empty rhetoric.

Over the past 50 or so years in Canada, the concern that we used to have for our rail system has all but faded. When passenger rail travel became less common, trains and the incredible rail system that stretches like fingers across the country no longer captured our imagination as they once did. The superhuman effort that rallied half a continent quickly died. Yet trains in Europe are flourishing. How often have I heard Quebeckers talk about travelling in Europe and how astounded they were by the quality of rail infrastructure in the European Union?

The pride that you feel is overwhelming when you arrive at Berlin's central station and see “Bombardier” in huge, white letters in the middle of the large window. But you quickly see the unbelievable difference between the European trains that Bombardier builds and the antiquated trains we have here because there is no political will.

The European Union will stop at nothing to ensure that its rail system, which is a huge tangled web of railways that it inherited from the national systems of 27—soon to be 28—countries, is the most competitive in the world. Europe understands our own historical example better than we do ourselves. Without an outstanding, competitive rail system, our country would almost not exist. Bill C-52 may look like a simple legal adjustment concerning a situation that the public can quietly neglect. In fact, quite the opposite is true: it is the government that is neglecting it. When blood flow is cut off to an organ, it dries up and dies. And nolens volens, the rest of the organism will die along with it. That may be a somewhat silly and dramatic image, but it is fair to a certain extent.

In closing, a country is like a house and Canada is like a house built on a beautiful, huge plot of land. It is a land of dreams. We can build little out buildings, create gardens and build a chicken coop. The house itself, which is already huge, could easily be improved, since we have the wood and the carpenters needed to do so. When the NDP has the last word in the affairs of the house, we will work hard to make this house, which we all share, more comfortable, more manageable and even more beautiful. We will add new rooms for children and grandparents, as well as a library and bicycle storage.

For years the Liberals spent their time changing the carpets and arguing about what to call the house, and the Conservatives boarded up the windows because it was too drafty and heating is too expensive. You have to spend money to make money. The right-wing faction should understand that.

The Conservatives need to create jobs in rail transportation instead of allowing themselves to be wooed by the rail companies who have everything to gain by seducing them. In any case, that has already happened, and here is the result of their six years of efforts: Bill C-52.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the comments, but not all of them, especially at the tail end. I like to think that the Liberal Party has done exceptionally well in supporting our rail line industry.

To highlight that particular fact, I would go to the member for Wascana, who has been a long-time advocate, as I indicated earlier, someone who has been raising this issue for the last couple of years in particular, since 2007: the stakeholders.

Many of the stakeholders came forward and said we needed to bring in some sort of legislation that would enable a fair playing field between the shippers and the rail providers, CP and CN. That is what we are focusing our attention on, because there is an imbalance of power.

Having said that, we recognize that Bill C-52 is but a small step forward. I argued earlier, and will repeat it now, that we are hoping the government will be receptive to a number of amendments to the legislation once it gets to committee stage, thereby allowing a fair playing field so our shippers can feel comfortable knowing that their car will be there when it is supposed to be, that the quality of the car will not take away from the product once it gets to the market. Those are the type of assurances they want.

I wonder if the member might want to focus some of her response on the fact that it is absolutely, critically important that the government amend this legislation when it goes to committee. Does she not agree with that?

[Alexandrine Latendresse, NDP, Louis-Saint-Laurent, QC]

Mr. Speaker, I would like to thank the hon. member for Winnipeg North for his question. That is the reason we decided to support this bill. Despite it all, we think that we have to go in that direction.

Like him, we agree that many amendments should be adopted in committee. We therefore want Bill C-52 to go to committee and for the amendments proposed by his party and ours to be seriously considered and possibly adopted.

I am fully prepared to be hopeful and optimistic. However, statistically speaking, if we look at the number of bills that have been amended in committee since the Conservatives got a majority, chances are not in our favour. Still, we think it is important to continue in that direction.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would like to thank the hon. member for Louis-Saint-Laurent for her speech, particularly the lyrical ending, which truly motivates us to move toward the future, a move that she strongly advocates. She demonstrates the ambition she has for our country and for the constituents she has the pleasure and honour of representing.

Let us face it. If we look at the government from a business perspective, we are currently taking a step backward by always engaging in rearguard fights and even abandoning our heritage.

I really enjoyed hearing the hon. member for Louis-Saint-Laurent's perspective and the powerful imagery she used. I would like her to continue to encourage us to dream by taking us farther and sharing her plans for the future with us in this House.

[Alexandrine Latendresse, NDP, Louis-Saint-Laurent, QC]

Mr. Speaker, I would like to thank the hon. member for Beauport—Limoilou who is such a wonderful colleague. He always encourages us to go farther. I am very grateful to him because he is part of the reason why I am here now. He was one of the first people to encourage me to go into politics over five or six years ago now.

So, he is partly responsible if I am now in this position where I can defend these ideals and try to build a Canada that better reflects who we are and that will listen to my generation, something that has practically never been done to date. This will allow us to have a Canada where no one is left behind. I therefore thank him very much for his contribution.

[The Acting Speaker, Conservative, Bruce Stanton]

Before we resume debate with the hon. member for London—Fanshawe, I will let her know that we do not have quite enough time for the full 10 minutes. When we get to 6:30 p.m., we will come to the end of the usual time allocated for government orders for today. However, I will give the hon. member an indication of when we need to wrap up.

The hon. member for London—Fanshawe.

[Irene Mathyssen, NDP, London—Fanshawe, ON]

Mr. Speaker, rail freight customers, from farmers to mining companies, are suffering because railway companies have a virtual monopoly when it comes to the vital rail lines that Canadians need to get goods to market.

In most parts of the country shippers cannot choose between rail services because they only have access to either CN or CP. Even in the few places where both rail companies provide access, one is usually priced out of the market, leaving the shipper with no real choice.

Shippers routinely suffer from service disruptions, delays and experience all kinds of examples of non-reliable performance by CN and CP. Deliveries and pickups are not done on time or are skipped completely. Frequently the number of ordered railcars is not matched by the delivered number of railcars and sometimes cars are badly damaged.

When a shipper contracts a specific number of railcars, that shipper needs to know those cars will be available. Anything other than this kind of reliability is bad business and bad management. Unfortunately, we know that 80% of the service commitments for agricultural rail customers are not met by rail companies.

After years of talking, the Conservatives have finally tabled legislation to address a number of key rail freight customer grievances after years of inferior service by the big rail companies. Bill C-52 is a step forward, but is far from a perfect solution.

Key demands from the shipping community have, quite simply, not been addressed. Bill C-52 would also create loopholes because of its ambiguous language. The Conservative language is weak. Its protective measures do not cover existing contracts between shippers and rail companies and offers only a narrow, costly arbitration process for failed negotiations for new contracts. Key demands like the shippers' call to include penalties for rail companies in service agreements, performance standards and an easily accessible conflict resolution process were ignored.

While NDP members will support this legislation, we will also push for amendments at the committee stage to protect shippers from the abuse of market power through the right to comprehensive service agreements and conflict resolution processes.

Rail transport is the backbone of Canada's economy, with 70% of all surface goods shipped by rail. It is crucial to make rail freight services work for both rail companies and shippers. We cannot take the importance of the railroad for granted.

It is also critical to note that current pricing for rail freight services is also damaging Canada's shippers. Bill C-52 explicitly excludes pricing, despite the calls from all parts of the shipping community to address the pricing regime. This has a significant impact on Canada's trade deficit, which is, by the way, ballooning. It reached almost $2 billion in November alone. We cannot afford to lose even more ground when it comes to global competitiveness for Canada's products.

A broad range of industries are affected by the situation created by the virtual monopoly of current rail service providers. I have already mentioned agriculture, but we must not forget other key industries like forestry and mining as well as chemical and automotive businesses. Many of the goods produced by these industries are destined for export.

Lacklustre rail services are hurting Canada's exporters' ability to compete in global markets. For example, soybeans from Argentina enjoy a competitive advantage in markets like Japan and China because they are delivered faster and more punctually than soybeans from Canada, despite the fact that the total distance that needs to be covered is significantly shorter for products from Canada.

Rail freight is not only central to Canada's economy; we also need strong rail freight services to take trucks off the road and tackle greenhouse gas emissions. While the overall share of surface transport for goods remains high for rail, frustrated companies switch to trucking where possible and the environment loses.

Rail freight is only one aspect where the Conservatives are slow to act. From new rail safety measures to cuts at VIA Rail and blocking the introduction of high-speed rail in Canada, Conservatives do not give Canada's rail network the attention it deserves.

The bill has taken a long time to come to the House. For years, shippers have been unhappy but no concrete action was taken by the Conservatives. Since 2007 they employed a talk it out and wait tactic, starting with the promise of an expert panel review.

The rail freight service review started in 2008. The independent panel tabled its final report in early 2011. Half a year later in the fall of 2011, the Conservatives initiated a mediation process that did not yield any results. Presumably with the tacit backing from the Conservative government, CN and CP were unwilling to make any meaningful concessions. The mediation process, led by retired Conservative politician and University of Calgary chancellor Jim Dinning, failed. Dinning released his report in June 2012 and the Minister of Transport promised government legislation on the topic to be tabled in the fall.

Parallel to the end of the mediation process, fortunately, the member for Trinity—Spadina tabled private member's Bill C-441, the rail customer protection act, in June 2012. The private member's bill by the member for Trinity—Spadina, coupled with advocacy work from the shipping community, put pressure on the minister to follow up on his promise to actually table legislation. However, CN undertook a massive lobbying effort last year, first to prevent any effective bill, then to have it watered down. Dozens of documented visits to government offices and a media campaign show the determination of CN to keep the status quo.

Rail customers have banded together now and are organized in the Coalition of Rail Shippers. The coalition is a loose and informal entity, but it wants something positive for its industry. It wants something positive for the people who produce the goods, who create the wealth in this country, the men and women who do the work to make this country tick and be productive.

Shippers are having a hard time getting fair and reliable freight service, and that is simply unacceptable. We can and should do better for those that rely on our rail system. Our manufacturers, farmers and resource industries depend on our rail system. If rail were made more fair and affordable, consumers would also see an advantage.

This is a country that emerged as a strong, independent nation because of the accessibility of our railways. Let us not abandon those who would continue to build our Canada.