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

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, to follow up, the member said that the freight rates should be going to arbitration. The first thing that comes to my mind is the importance of the arbitrator and how that arbitrator might be selected. I wonder if he could further expand on that point. How would he like to see an arbitrator, who would deal with issues that come out of Bill C-52, selected or appointed? How would he envision that working?

[Dennis Bevington, NDP, Western Arctic, NT]

Mr. Speaker, I am pleased to rise to discuss the bill, Bill C-52, an act to amend the Canada Transportation Act.

As the previous transport critic for this party during the 2008 to 2011 era, through that time I recognized that there was a great demand across the country for changes that would assist shippers in dealing with the duopoly of the rail system in Canada and the conditions that occurred.

Quite clearly, the concerns were greater among the smaller shippers than among the larger shippers. Therefore, the ones that could command the greatest use of the railway had greater opportunities to strike better deals. The problems lay in a stronger fashion with those that did not have the quantity and the continuity of freighting that would attract the rail systems.

I remember meeting with the pulse association, people who provide agricultural products that are not grain but beans, soy, peas and that measure of agricultural product, which is growing considerably in Canada but in smaller batches in different areas across the country. Their problems with getting their product through the rail system were paramount to them. They said they could not deal with the system as it is right now. The types of producers, the locations of those producers across the country and the nature of the product meant that the rail companies were not attracted to them as customers as much as they were to larger producers.

I will be very interested to see how it will play out across western Canada now with the loss of the single desk for grain, how that will play out with small producers, smaller aggregations of those who are moving grain.

The Conservatives sold the idea of getting rid of the single desk on the basis of enabling grain to be moved to different places by the producers in a fashion that would allow them to value-add to their product. Let us see what happens when this occurs in a system where the need for freight is paramount, where we have to move the product and where farmers are not protected by the larger system that existed under the single desk. We will see what that does and how it works. I am sure the committee will hear representation on that matter as well, as it moves forward.

In looking at the rail system, we have heard a lot of talk about infrastructure. The parliamentary secretary mentioned the great investments that the government has made in the rail system. I would raise, for instance, the investment the government is making in one of the big problems with our rail system, the level crossings. There are some 1,400 level crossings in this country. They are being added to incrementally by municipalities all across the country. The Conservatives identified $27 million a year over five years to invest in level crossings.

When we do the math, that does not turn out to be something that will really solve the problem we have with level crossings. Some level crossings can cost between $30 million and $40 million to fix. These are major requirements in the rail system.

If we take a good look at it, the rail companies are not primarily responsible for what has happened with level crossings. This is a co-operative effort that extends across governments, provincial highway authorities and municipal governments. Everyone has a hand in level crossings. Why does the federal government have to play a role? The federal government can be the final arbitrator there. With the profits rail companies are making, they should be a big part of this as well.

Of course, the government does not collect taxes in a decent fashion from corporations that actually make profits, and cannot reinvest for the public good and the good of those corporations. The chances of the infrastructure issues, that is, of rail being fixed across this country, are very remote if the present spending level of the federal government continues.

I am glad that the NDP has such a strong transport critic today, one who has pushed very hard on these issues.

The service agreement review went through and finished in 2011. Members are now seeing an act in front of Parliament, Bill C-52.

The first part of the bill sets up terms and conditions for contracts for railways and shippers. If a shipper wants to enter into a contract with a rail company, it can describe the traffic to which it relates, the services requested by the shipper in respect to the traffic, and the undertaking the shipper is prepared to give to the rail company with respect to traffic for services. How will one make sure that the rail companies will be well served when their cars arrive? How will all of this fit together?

Contracts, of course, do not apply to written agreements already in place. A company that has already established a written contract with a rail company is not available to deal with this under this legislation. They are locked in.

In the case of many of the larger producers, that may be to their advantage. They do not have to renegotiate anything. The ones that provide a lot of freight movement have a deal set up.

Seeing what is happening in the industry here with the failure of the pipelines that have been proposed for Canada, I would say that we are going to see greater rail traffic carrying oil and gas products across this country. That may change the dynamics of the rail system as well. The larger producers may find themselves competing with other very large producers as well. We will see how that plays out.

The second part of the bill deals with arbitration. Once one has established a contract or is unable to agree on a contract, there is a process of arbitration. That is good because, of course, it is sometimes very difficult to come to agreements.

Small producers in a remote location are looking for the rail company to arrive in a good fashion with the cars. They are going to leave them there. The cars are going to be in good shape. They are going to take the cars away after they have them filled.

There are many variations that have to be examined in a contract between two parties that carry out this kind of work. Is the shipper going to be ready to provide the product to fill all those cars when they are delivered at the site? If they are not, is there some measure of compensation to the company for leaving the cars there longer? If the company does not supply the cars in a good fashion, is there a way to compensate the shipper, who may be backlogged at the receiving area with the other mode of transportation that caused them to bring it to the railway? These are complex, detailed issues that have to be worked out between shippers and the rail company. Of course they will require some arbitration.

What is the hammer that the company keeps under this legislation when it comes to negotiating or dealing with arbitration? Under proposed subsection 169.31(4), the following applies:

For greater certainty, neither a rate for the movement of the traffic nor the amount of a charge for that movement or for the provision of incidental services is to be subject to arbitration.

There is the hammer for the company. It can set the rate for the cars sitting in the dock. It can set the rate for the movement of the material out of the area. It can decide the nature of the movement, the volume of the movement taking place, and how cost effective that is with its service charges that fit over top of that. All of those issues are not going to be subject to arbitration.

The company holds a very strong hand there when it comes to exactly what it is going to cost to do the work. Still, the arbitration should take into account the rates. In any business arrangement, the rates are very important. They cannot simply say “We are going to have a service contract, and you do not get to talk about the rates. The only thing you can talk about is what is going to happen”. Those two things have to work together.

The government, by excluding that from arbitration, has given the rail companies a very strong position in Bill C-52. I hope that it will be seen in committee as something that needs to be worked on. There needs to be some work done to make this fairer, more equitable to all of those concerned, especially the small producers across this country who do not have the leverage to make the deals, as was the case even before this bill.

After this bill there should be some leverage for those small companies so they can make sure that services are being provided to them in a good fashion at a reasonable rate. That is what we should be doing in government, being fair to both sides. The basis of government is trying to come up with solutions that work for all parties.

Some of the other concerns here also fit with small companies, the small shippers, such as the degree of difficulty they may have in working in arbitration, the timeframes that are outlined, the process that is outlined, all of which are very complex and very expensive. The costs will have to be borne by the shipper. The cost of the arbitration is to be split equally between the shipper and the rail company in all cases, according to this legislation.

How does that work? If the arbitration is in favour of the small shipper, they still have to pay the piper for the work they have done.

What I would like to see in this is some means of establishing rates and conditions that would apply across the country, so that some kind of equivalency develops among the arbitration systems and that, across the country, what is decided in one place has some relevance to what is going on in another, so that we have some fairness in the system.

I do not see that yet. Perhaps some of my Conservative colleagues who may have some ideas about that may want to express them. I think it is more likely to be taken up in committee, however. This bill needs a lot of work.

What is the record of this majority Conservative government in offering up amendments? I have to say it is abysmal. It is totally abysmal. These people do not believe in amendments. The Conservatives believe that what they put forward is good enough for the country. They are in charge and they know what is right. This is what has happened with almost every single piece of legislation that has gone through the House to date.

Where are the amendments? When I worked in the transport committee, when there was not a Conservative majority, we worked together, we looked at the issues and we came up with solutions that were mutually agreeable. Then we created amendments that we all agreed with.

Transportation is a fundamental and vital service to this country. It is not something that should be dealt with by parties working against each other. I was always very pleased with the previous transport committee chair, the member for Brandon—Souris, who was very fair and understood that transportation was a vital and important part of this country, which needed to be expressed as such.

This bill should be amended. It should be considered very carefully for what it actually accomplishes and what it should accomplish.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I am very pleased to speak to Bill C-52 today. The railway, or shipping by rail, is very important in my riding. As I often say in my speeches in this House, the river divides my riding in two, but the railway also does the same thing. This is not just a legacy; it is also a very important economic asset for us.

To begin, I would like to say a little about my experience since 2011 when I was elected, and even before that time, from what I hear from my constituents and other elected representatives in the region, in particular the mayors, concerning relations with CN and CP. This is very important in connection with the subject we are addressing today.

We need to look at the role these companies are called on to play in our communities and see what a key role the railway has played in the history of Quebec and of Canada. In any history course, even at the university level, we still talk about the railway as a core element of our country's collective history. When we look at it that way, there is a duty to work with the various stakeholders. Today, we are talking about the stakeholders that ship various products, in the farming sector in particular.

In my riding, I am in an odd situation when it comes to this subject. On the south shore, Montérégie is located right in the middle between Montreal and the more urban part of the south shore, but also in a somewhat more agricultural and rural area. Let us not forget that there are also farmers in my riding. I can think of neighbouring ridings, like Shefford or Saint-Hyacinthe—Bagot, where there are people in the farming community who use the railway. We can really see how much the railway connects those regions to Montreal, and beyond there to other destinations, including Quebec City, Ottawa, or the other end of the country.

When we consider these facts, we feel we must take action to support our farmers, but we also want to protect the communities living alongside the railways. We therefore need CN to work with us. That is why this bill is important. We are talking about agreements with shippers, but this is also an indication of the need to go beyond that and call on CN to co-operate more on other issues. Those issues all involve the same objective: improving and making better use of the infrastructure we have had for over 100 years now.

Getting back to my previous point, when I was talking about the work I had to do with CN, I have to say that it is not always an easy company to work with, quite frankly. I say that with all due respect because good things have been accomplished. I would not want anyone to think otherwise, and I am definitely ready to work with them. However, the fact that we needed a bill to make CN co-operate on one particular issue shows that the company could do with an attitude adjustment and a little more flexibility given that it has a monopoly or a virtual monopoly on rail services in my region and across Canada.

I have seen this problem on two particular files, including the rail electrification one. This AMT proposal would modernize and improve rail services. It would reduce costs for producers using the services and for public transit users. Yes, it would be expensive in the short term, but in the long term, it would provide economic, environmental and other benefits.

We have had to deal with a lot of problems on this file. CN categorically refused without offering any explanations or agreeing to talk about it. This is another very important aspect of the bill before us today even though it is about a different issue with CN.

As for the other file, I heard a comment on the other side of the House about increasing train traffic. That is interesting, because that is exactly the kind of thing we want to see. That obviously means that the economy is doing well, including the local economy.

However, this increase is combined with the phenomenon of urban sprawl, which we are seeing more and more in Montérégie, particularly on the south shore. People are leaving the Island of Montreal to move to the suburbs, including our region. They are building homes around train stations to be able to use public transportation. II am talking about commuter trains. So these homes are seeing an increase in vibrations.

My riding office in Saint-Basile-le-Grand is in an old train station. It is no longer in use, but, obviously, since it is an old train station, we are close to the tracks and we feel the vibrations. It is not a big deal to us. It does not happen too often when employees work from 8 a.m. to 5 p.m. or 6 p.m., for example. However, I think everyone can agree that it can be more difficult for someone who lives close by.

Speaking about the importance of the railway calls to mind some comments made by one of the mayors in my riding. Gilles Plante, the mayor of MacMasterville, told me as well as CN officials that while he did not want to hinder CN’s work or impede rail traffic, he did hope that a happy medium could be found.

Co-operation with CN on this front is necessary, but not always easy to get. We are still waiting for answers to requests made by citizens regarding rail traffic.

There is a reason why I bring this up and relate these stories of issues that I have been focusing on since being elected to represent my riding. As I have said before, the aim of the bill is to compel CN to negotiate agreements with shippers to prevent the company from unfairly benefiting from the monopoly it holds over our producers, in particular farmers.

If I might digress for a moment, I would especially like to congratulate the member for Trinity—Spadina for her work, for the bill she introduced, which made the minister realize that the time had come to act on this issue.

This bill is seen as a step in the right direction. However, hard work is needed to sustain this momentum. I am hearing from the farmers in my region and I know that some colleagues represent ridings where farming is even more prevalent. The message is always the same when the topic of public transportation or the railway system comes up. They acknowledge that this is a very important industry, one that needs to be modernized.

We lag far behind Europe in this area. Of course I am not saying that everything is wrong. I am sure that a government member is prepared to rise and say that everything is going well. I am not saying that things are going badly, but simply because things are not going badly does not mean that things cannot be greatly improved. This is true of the railway system. Things are going very well back home. People benefit from the service, but much more could be done. If improvements were made to the rail infrastructure, the costs in the short term would be great, but in the long term, as I said, users and shippers could enjoy lower prices.

As far as urban sprawl is concerned, as I said earlier, this is a positive phenomenon. It means that people are settling in our region, that the population is increasing, that more families are moving into the area and that our local economy is thriving. These are things that I am very proud of and very pleased to see. Mainly it drives many of the issues I champion in the House and in my work as a member of Parliament.

However, that makes life tough for farmers because municipal elected officials, regional conferences of elected officials, RCMs, members of the National Assembly and so on all wind up facing the same challenges: finding a way to promote urban sprawl and growth back home, but also ensuring that our farmers still have an environment conducive to their production.

There are a lot of local products in the Richelieu valley, where my constituency is located, and they are the pride of our region. Tourisme Montérégie has done a lot of work, and even in the surrounding areas, in Rougemont near Marieville in my riding or elsewhere, local products are of outstanding quality. People attending the Chambly Bières et Saveurs festival in the summer can enjoy beer—it is very good—as well as superior-quality food products. We want to continue producing those products. They are healthful and good for the economy, and they are also good for our heritage, even though that may seem like a cliché. That, in a way, is our physical and environmental heritage.

The work we are doing with CN is extremely important: we are looking for a way to juggle the reality of modernization with that of agricultural tradition, which is very important in my riding. That is why I am very pleased to support this bill at second reading. It is a step in the right direction, as a number of my colleagues and I have said.

However, I believe that the committee work will be very important, and the work to be done over the next few months and years even more so. As I emphasized earlier, we have to prod CN on other issues as well. We have to demand even more from those people and from all stakeholders involved in railway issues, who will show us the way because we find it hard to move CN on these issues.

I would like to go back to the vibrations issue. This is fundamentally important for this bill because, once again, we are talking about shippers. Freight trains are increasingly long and that is very good. However, we wonder, and we have also put the question to CN, how it is possible to reconcile these two realities. My office is located beside the railway, and I also live near it. Sometimes drivers want to cross the tracks, and it is nearly rush hour and along comes a train transporting freight from elsewhere in Canada. Then they realize that the train is nearly 200 cars long. Sometimes people wait a long time at the stoplight. We realize that some work still has to be done to reconcile this urbanization reality with the fact that these trains have to pass through.

I am not saying that this is not important. I am referring to the situation facing my colleague, the mayor of McMasterville. We want to keep this in our municipalities. We do not want to tear up the railway. It is part of our heritage and we know how much it benefits our communities. No one would ever say otherwise. However, I think we need to do some work on it. This bill urges CN to do something for farmers. We could also urge it to do more for Canadians in the regions.

The railway is such an important part of our heritage. I recall a Knights of Columbus dinner that was held in November. One of the members, Gilbert Desrosiers, who is very well known in my riding, received a painting done by a local artist whose name escapes me at the moment unfortunately. It was a picture of what we, back home, call the black bridge. There is a large CN logo on the bridge. It is hard to miss. Whether you are on the Richelieu highway, on the shore or in a boat on the Richelieu River, you can see this railway bridge. It is practically an institution in our riding. It is part of our heritage.

I say that half-jokingly, but I am also serious. It illustrates people's sense of belonging. We want to make this infrastructure work in our region because we know what a remarkable asset it is.

I know that I am revisiting issues that I have already raised. However, since I have the time, I will again address the issue of the electrification of the rail line. It is very important, and CN’s attitude to this issue poses a problem.

I often have conversations with my colleagues, who are ministers and members of the National Assembly. We all more or less have the same vision as far as objectives for public transportation are concerned. A common vision in the region is a good thing, and helps steer progress.

On the other hand, it is understandable that the AMT has projects and that CN is a source of friction. Indeed, they have differing interests and their situations are not the same. Yet, what has been most disturbing in this issue is the lack of dialogue. When this decision was made, the AMT did not seem to know why; CN simply said that it was too expensive, that that was that, and that it was no longer in the cards.

Had the original developers of the railway, both in Quebec and elsewhere in Canada, said that building the railway was too expensive, little progress would have been made. That is precisely the kind of mentality that CN and CP need to do away with. We do not deal with CN and CP as much back home, but these companies still have a role to play, and some of my colleagues do deal with them. That kind of mentality cannot be allowed. We know that it is expensive. We know that it is an investment. I believe that, in the long term, it is going to help reduce costs and promote the kind of environment that is so important for our farmers.

For example, the closer one gets to the Cities of Richelieu and Chambly—which are in my riding and are adjacent to the municipality of Saint-Jean-sur-Richelieu, in the riding of Saint-Jean—the more railways there are. However, they are mostly outdated and no longer in use. The municipality would really like to use this infrastructure and space. However, CP is dragging its feet, at least I believe that it is CP that is doing so.

All of this to say that when a municipality wants to use infrastructure and cannot do so, it is extremely problematic. When municipalities ask for answers, there needs to be an immediate dialogue. CN and CP have everything to gain by engaging in such a dialogue. It can only help them to do their job.

A CN representative, who I will not name out of respect, told me that if Canadians were to communicate directly with CN and tell them about their problems, CN would be in a better position to respond. However, that might not be so easy since these issues are localized. That is no secret. Residents in the region communicate with their elected representatives. Residents with those kinds of concerns call their mayor, municipal councillor or member of Parliament.

When citizens call elected officials and the elected officials contact CN, I think that this corporation should understand that it is time for action. The fact that it does not come directly from a citizen is no excuse not to act. We are very ready to act.

I appear to be very critical toward CN and CP, but it bears repeating. We understand they have had great success and that they are still successful. However, in certain respects, they must be more open and engage in more dialogue.

This is why I am pleased that this bill was introduced. The government has decided that these corporations must speak and work with people. There are certain standards to be met.

If this is representative of things to come in terms of the railway, in my riding in particular, then I will be quite pleased to continue supporting them and engaging in a dialogue with them.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I would like to respond to my Conservative colleague's first point. He welcomes the investment his Conservative government has made in rail transport. However, I remind him that, in 2010, the people in the community, in Chambord, criticized the condition of the rails. That was not just one stakeholder, but rather a lot of people in the community.

I also believe the Conservatives were still in power when a derailment occurred in 2011. The Sûreté du Québec suspected a defect in the rails.

The Conservatives may be proud of the money the government is putting into rail transport, but it is clearly not yielding the desired results. I am not necessarily saying they are incompetent or poor managers of taxpayers' money, but people can draw their own conclusions.

Then my colleague said that the NDP could have voted for or against such and such a bill. The NDP is truly a very reasonable party. For example, this Bill C-52 is adequate. It could be better. It could resolve the disparity in rate-setting by companies that hold a monopoly. However, we are pleased that Bill C-52 is a step in the right direction and we will support it.

As we have previously seen, the Conservatives have introduced some atrocious bills despite their good intentions. I am not ashamed to say that we are opposed to bad Conservative bills. That is why I encourage my colleagues to support the initiatives of my colleague, the transport critic.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, it has probably become quite clear from my questions and comments that Canada's railway system is something I care about a great deal.

During my 10-minute speech, I will not necessarily focus on the details of the bill. My NDP colleague just did that, as did many other NDP members, including the hon. member for Trinity—Spadina, our transport critic, who is doing an incredible job in this area.

Bill C-52 affects me personally. We have heard a lot about how this bill will have a national impact and about its many deficiencies, which the NDP has criticized.

I just mentioned the fact that the difference between Canadian Pacific's and Canadian National's rates is quite significant, from one bidder to the next. This aspect bothers the NDP. We would have liked to see the federal government show some leadership on this. Unfortunately, this bill was introduced after five years of dragging their feet, and it was only introduced thanks to the hard work of my colleague from Trinity—Spadina, our transport critic. Fortunately, the NDP is the official opposition and it will hold this government to account.

In my speech I am not going to talk about the national impact or the consequences for big cities. I respect the people of Montreal and Toronto, for whom rail transportation means something different. However, I come from northeastern Quebec and, in the regions, the rail system is mainly used for the transportation of various goods.

Over the past few days, I took the time to find out whether our exporters in Saguenay—Lac-Saint-Jean are satisfied with the rail service they are receiving. Unfortunately, I came to the same conclusion as the other opposition members: there are many shortcomings.

I even managed to get my hands on a study conducted by the City of Saguenay. It is a few years old, but the conclusion was the same. I will share it with the House. This will bring something different to the debate since it pertains more to the regional reality.

This study has to do with issues around rail freight transport in Saguenay—Lac-Saint-Jean.

Editor's note: The findings in this report reflect discussions with most major regional users, including those in the pulp and paper, softwood lumber, fibreboard and aluminum industries, as well as smaller users in other industrial sectors. They basically reflect the comments made.

I just named the economic and industrial sectors that are very important in the region. We export a lot of these products. The people watching at home may be wondering what their rail system looks like. I will explain.

Two companies share the Saguenay—Lac-Saint-Jean railway system: CN and the Compagnie de chemin de fer Roberval-Saguenay or RS, a division of Alcan [or Rio Tinto Alcan]. The CN railway falls under federal jurisdiction and the line ends in Jonquière. The RS railway is a private railway that falls under provincial jurisdiction. The RS railway starts at the Port-Alfred facilities in La Baie and its primary purpose is to provide service to the Alcan plants in the region. As part of a confidential agreement with CN, however, RS provides service to the companies east of Jonquière, including clients from the Chicoutimi and La Baie industrial parks.

The city of Saguenay has two freight transshipment centres: Nolitrex (Jonquière) and Transit PAG (located in La Baie since January 2000), as well as one wood chip transshipment centre (Jonquière). Two other transshipment centres operate in Lac Saint-Jean, in Hébertville (Groupe Goyette) and La Doré.

Northern Quebec Internal Short Line (NQISL)

The NQISL operates the Saguenay-Lac-Saint-Jean, Chibougamau and Abitibi network for CN. Quebec has 11 short lines and private companies, including RS. Unlike the other short lines, which are independent entities that operate secondary lines for CN, CN has maintained control over the NQISL. The NQISL is a semi-autonomous division of CN, wholly owned by CN. The NQISL has a monopoly in the region and operates the largest rail network in Quebec, with 1,756 km of track, including 422 km in Saguenay-Lac-Saint-Jean.

NATIONAL FACTORS

Compared with all the rail companies in North America, the railway has adapted poorly to the new realities of transportation, including the just-in-time factor. Transportation times are long, rail cars get lost and the rates are less competitive, compared to the more efficient trucking industry, which has regained a large share of the market.

Following a string of budget cuts at CN at one point in time, rail car maintenance was neglected as was reinvesting in equipment. Today, the industry is faced with an aging fleet of rail cars. Certain types of rail cars, specifically closed cars that are not watertight, are in poor condition. This situation affects a region like ours in particular since the pulp and paper industry is directly impacted. According to our sources, CN is poised to modernize its fleet of pulp and paper rail cars. [I believe the modernization has already been done, since this study was conducted several years ago.] Other less important industrial sectors have been neglected, however, and will likely have to continue making do with outdated or ill-suited equipment.

CN’s operating system appears to be poorly adapted to the size of Canada and the unique characteristics of sub-regions like those in Quebec. CN’s national service centre is located in Winnipeg. Some customers can go to Vancouver for a price and to Winnipeg to request a rail car that will be sent from Edmonton to a transshipment centre in Montreal. From Montreal, the freight can then be shipped to the Saguenay. The transaction can then be billed in Toronto. Each time, a different person is involved in the process. The system is highly complex and rather daunting for the user. Customers can easily encounter many pitfalls. Another issue is the lack of knowledge of the Quebec market, especially a region like the Saguenay, as well as a strong tendency to apply national standards and rates, allowing little room for regional differences and for contact between a customer and a supplier.

Most of the customers who were consulted said that CN was not highly service oriented and took advantage of its monopoly, especially since the large-scale cuts in recent years. Mention was made of unilateral decisions where CN notifies rather than consults with its customers. [This happens regularly.] Another told us: “You want two rail cars and you get 20. When you want 20 rail cars, you get two.” Others spoke of lengthy delays for one thing or another.

REGIONAL FACTORS

In early 2002, the industry was hit with a major rail car shortage that affected all Canadian railway companies. The softwood lumber industry was primarily affected. Manufacturers picked up the pace of shipments to the United States before the American tax was scheduled to take effect. The softwood lumber industry was hopeful that the situation would sort itself out after May 23. Whether or not that happens remains to be seen. [Many years later, we can see that the situation has not improved.] However, even though this situation was exceptional, there had been a long-standing shortage of CN rail cars, except for major clients. In an October 8, 1999, report, Quebec's transport ministry stated the following about the Saguenay-Lac-Saint-Jean: “...because of the shortage of rail cars, regional transshipment centres may lose customers—indeed, some already have—to transshipment centres in Quebec City where rail cars are easier to obtain.” This situation does not adequately support regional development, nor does it encourage the NQISL to develop regional markets and seek new clients.

The NQISL seems uninterested in small customers, occasional customers and potential customers. Except for major users, most shippers get the sense that CN wants to focus on choice customers—aluminum and pulp and paper—while ignoring smaller customers and sectors. For example, occasional customers can wait weeks to get shipping rates for their goods.

The general consensus is that CN is using its regional monopoly to charge excessively high prices. This could make rail transportation unaffordable for small businesses and could cause larger companies to opt for other means of transportation, such as trucks, which put additional pressure on our roads.

For example, recently, a client got an initial quote of $9,280 to send 10 cars to Calgary. That was lowered to $4,390 following a single phone call to a CN higher-up.

For example, a major regional company got rates from Canadian Pacific out of Quebec City that were so much lower than CN's rates, they almost covered the cost of shipping goods by truck on Route 175 even though CP has a longer route through the Eastern Townships compared to CN's direct line between Quebec City and Montreal.

For an 11-kilometre segment, a major part of Saguenay's industrial base—Chicoutimi and La Baie—is served by a third company, RS, for which this is not a priority. Although RS provides very good service, this results in a prohibitive surcharge for shippers just for those few kilometres. This situation could cause problems in the future for the La Baie sector, which has 75% of the new City of Saguenay's industrial development space as well as major regional marine and air transportation infrastructure.

I would like to provide some other information about my region that may be relevant:

Transportation is a determining factor in the location and development of industry. Transportation is more important in regions such as ours than it is in larger centres. More than anywhere else, we need proper, modern, competitive transportation systems if we want economic growth, particularly given recent unemployment statistics...

The railway is an essential mode of transportation in the region. Trains carry approximately one-third of all goods shipped regionally or inter-regionally, 40% of goods shipped inter-regionally via ground transportation and two-thirds of goods shipped across the continent via ground transportation.

The NQISL is the only rail company that gives the region access to provincial, national and continental markets.

In 1996, the break-even point for an internal short line was 37 cars shipped per kilometre of track per year. In the region, the NQISL is definitely profitable, moving more than 61 cars per kilometre, which translates to more than three million tonnes of goods annually (57% of that being forest products).

I painted a regional picture of the rail transportation system and I would like to quote some local stakeholders, particularly the mayors of Saguenay-Lac-St-Jean municipalities. I will not limit myself to my own riding, Chicoutimi—Le Fjord, and I will even venture into the riding of the Minister of Transport, Infrastructure and Communities, who may not show the other side of the coin, since he will want to protect his government's bill.

I would like to read part of a fairly recent Radio-Canada article from November 16, 2010. In the article, people were complaining about rail service.

The town of Chibougamau and its municipal development agency are calling on the federal government to intervene to improve rail service to Lac-St-Jean.

The preliminary report just released by Transport Canada on railroads in Canada's small communities worries Développement Chibougamau, because the document talks about long-term solutions to improve service across the country, but it says nothing about the infrastructure on the Triquet-Faribault line, which links Chibougamau to Saint-Félicien.

Saint-Félicien is in the municipality of the Minister of Transport, Infrastructure and Communities.

The town of Chibougamau, Développement Chibougamau and Génivar submitted a position paper to the federal government last March denouncing the sorry state of the track, railway cars and service on the Triquet-Faribault line.

The general manager of Développement Chibougamau, Pierre D'Amour, also pointed out that mining exploration is booming in the region. “Our fear is that there will be downsizing and that less profitable rail lines will be shut down,” he said. “For us, that would be a catastrophe.”

Too slow

Chantier Chibougamau ships one-quarter of its production by train, but would like to ship more to improve its environmental record.

The company's communications officer, Frédéric Verreault, explained that, for the time being, it is impossible for them to increase rail shipments because the train travels at 40 km an hour owing to the condition of the tracks.

“A moose racing a train carrying our products would get to Lac-Saint-Jean faster.”

A rail shipment to Toronto takes more than a week; it can get there in 24 hours by truck. According to Frédéric Verreault, the decision about the shipping method is an easy one. “The just-in-time concept is central to our relations with our clients,” Mr. Verreault pointed out.

The Chantier Chibougamau representative would like the federal government to invest just as much in rail service as it does in seaports.

I will quote another newspaper article from one of our regional weeklies:

Last week, we published an item about the Forest Products Association of Canada (FPAC), which was urging the federal government to “act decisively” on the various problems associated with the rail transportation of goods. We have further information this week.

You will remember that, in 2008, the government committed to reviewing poor rail service provided to rural industries by establishing a review panel, which made recommendations.

However, today, the FPAC considers it inappropriate that all measures will be delayed for another three years.

The association pointed out that the government is counting on CN and CP to implement the changes on a voluntary basis and that regulatory measures will not be enacted until after 2013.

Last Friday, La Sentinelle contacted Susan Murray, executive director of public relations for the Forest Products Association of Canada, to find out if the government had responded to FPAC's press release entitled “Forest Industry to Government: Fix Rail Service Now”. She said that the government had not responded.

When contacted by La Sentinelle for comment on the FPAC's press release, the mayor of Chibougamau said she agreed with the association.

She also said that the railway is of the utmost importance for the region's mining and forestry companies, as well as those in James Bay and Matagami.

In her opinion, these companies are stuck because CN has not made any investments in its infrastructure for years.

She also wondered about future projects, namely those that will be implemented in the James Bay sector. “Will CN have the reactive capability to support these projects?” she wondered.

I would now like to mention what the Mayor of Saint-Félicien had to say.

...the Mayor of Saint-Félicien, Gilles Potvin, is also concerned about CN's lack of investment. Mr. Potvin is of the opinion that the Saint-Félicien-Chibougamau line is essential for the Saguenay-Lac-Saint-Jean region because it provides access to the port of Grande Anse. He said, “It is a key area for the future of the region. We have to be concerned about it.”

For the past few minutes, I have been talking about the state of the railway in Chambord, which is in the Minister of Transport's riding. Here is a newspaper article that was published a year after the two articles I just quoted. It reads:

Train Derails in Saguenay-Lac-Saint-Jean

CHAMBORD—Three cars derailed on part of the Saint-André line in the Chambord area of Saguenay-Lac-Saint-Jean late Sunday night/early Monday morning. According to Sûreté du Québec spokesperson Hélène Nepton, Sûreté du Québec was informed of the incident, which was allegedly related to a defective rail, at approximately 2 a.m.

It is disappointing.

In closing, I will let people draw their own conclusions about the fact that another train derailed in Chambord one year later, in 2011, because the track was not being properly maintained even though local stakeholders had asked the federal government to take action, to take responsibility and to invest in the railway.

I am proud to be from the Saguenay-Lac-Saint-Jean area and, as the member for Chicoutimi—Le Fjord, which is home to part of the CN and RS railway, I am calling for the federal government to take responsibility and finally invest in rail transportation. It is important for the Canadian economy.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I will elaborate on what my colleague said. Just a few seconds ago, she mentioned that two rail companies, CN and CP, have a monopoly. She also mentioned that 80% of exporters are dissatisfied with the poor service, such as when goods do not arrive on time or in good condition.

When exporters want to shop around and get the best price or the best deal, they ask for bids from these two major companies, which, quite frankly, have a monopoly. There is also a big difference in rates. That is why I believe the NDP approach is reasonable.

What we find particularly unfortunate about Bill C-52 is that the Conservative government had a good opportunity to legislate or have input on the rate difference.

I would like to know what my colleague thinks of the fact that Bill C-52 says nothing about rates, which I believe Canadian exporters want the federal government to address.

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I would like to thank the member for his question.

We are discussing Bill C-52 today because nothing has been done up to this point, obviously. Unfortunately, the government waited until there was a crisis and the shippers and the NDP put pressure on it to introduce this bill.

This is not ideal, but it is better than nothing. That is what the shippers are telling us. They are not really satisfied with the bill, but they hope it will be improved upon in committee.

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I thank my colleague from Winnipeg North. I listened closely to his question.

We believe this is a first step in a crisis situation. The Liberals had until 2006 to introduce a bill, but unfortunately they did not do so. This is what we are suggesting. We are in favour of Bill C-52 going to committee, so witnesses can be heard and amendments will probably be made.

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, Bill C-52 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 fulfill its service obligations to the shipper.

In point of fact, clients of the rail transportation system, like farmers and mining companies, are victims of the near-monopoly held by railway companies: service interruptions, delays and other disruptive situations at Canadian National and Canadian Pacific are harmful to industries such as agriculture, forestry, mining and manufacturing, which do not receive compensation. A large proportion of the goods are intended for export. Poor rail transportation services damage the ability of Canadian exporters to compete on the international marketplace, particularly in terms of agricultural products.

Moreover, a number of shippers have difficulty, not just in getting good service, but in getting any service at all. Shippers complain that they are not able to sign freight contracts with the big railway companies. This situation is detrimental to Canadian exporters. Steps must be taken, especially because right now the trade deficit is very high. I would like to point out that the trade deficit reached $2 billion last November.

Statistics show that 80% of railway clients are dissatisfied with the service they receive. As the situation is one of a quasi-monopoly, it is important that the government take action to ensure that clients are better protected. It is the shippers who have to pick up the pieces if their goods do not arrive on time. This causes huge inconveniences.

When perishables are being shipped, the situation is disastrous, because by the time the goods arrive at their destination, they may be rotten or just not usable. This hinders Canada’s competitive position. For example, Canadian soybean growers are placed at a competitive disadvantage vis-à-vis their Argentinian competitors, not because of the quality of their product, but because of unreliable shipments. The growers should not have to bear the cost of this situation.

Rail transportation of goods is vital in many respects. First of all, since 70% of goods are transported by rail at some point, we need to have an efficient system. Secondly, rail transportation makes it possible to keep trucks off the roads, thereby limiting greenhouse gas emissions that result from the transportation of our goods. By ensuring that a certain number of trucks are not on the roads, we avoid putting additional pressure on our road infrastructures, that do not really need it.

I come from the Montreal area. Like my constituents in my riding of Saint-Bruno—Saint-Hubert, when I use the highways, I can see many trucks, and I can also see the state of the infrastructure, which is underfunded. Therefore, we need a rail transportation system that is efficient and accessible, so that we do not make the situation worse. Moreover, we need investments to restore our existing infrastructure.

Inaction on this issue will be costly for the Canadian economy. The situation cannot continue. Inadequate rail service is costly for Canadian businesses, and it is detrimental to the economy and to the labour market. In 2008, the government set up a panel of experts that studied the issue for three years. Their report was submitted in early 2011.

The government also initiated a mediation process that served only to show that Canadian National and Canadian Pacific lack the will to solve the problem and to provide adequate service to shippers. Although this bill could be improved, it is part of the solution.

Bill C-52 will cover only new service level agreements, not those that already exist. Many shippers will therefore continue to live with unreliable and unfair service, without having any recourse to dispute resolution if violations of existing service agreements occur.

Furthermore, arbitration is only available for shippers who are negotiating new contracts. Instead of providing fast, reliable dispute resolution for all shippers, Bill C-52 is offering a limited arbitration process for a small group of shippers. The proposed arbitration process may be too costly for shippers and require an unfair burden of proof by asking shippers to prove that they need the services of the rail company.

To find a comprehensive solution, we also have to consider the question of rates. While some members of the shipping community wanted to address problems with rates in this legislative process as well, the Conservatives made it clearly known that they will not be examining that aspect before the next legislative review of the Canada Transportation Act, in 2014 and 2015.

Of course we have to tackle the problems associated with service level agreements, but we also have to consider how we can make rail transportation more affordable. We have to tackle the problem in its entirety to ensure that our businesses, some of which are in rural communities, are an important element of the local economy.

The situation affects numerous sectors, such as natural resources, manufacturing, agriculture, forestry products, mining, chemicals and the auto industry. No one is really spared.

It is also important to note that the mining sector is the second largest employer in first nations communities, after the public sector, of course.

Improving rail services for shipping goods from mining companies could have a positive impact on the economic situation of the aboriginal peoples in some regions of the country. The government should be working with first nations leaders to improve their living conditions and the economic circumstances of the aboriginal people. There needs to be a sense of urgency to move quickly on this issue.

I will conclude by saying that it is most important that we not solve problems by halves. We have to tackle the problem in its entirety. I know that Bill C-52 is a small step forward, because this is a crisis.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I thank my colleague from Winnipeg North for his question.

I touched on the issue of committee work. In fact, I asked him a question regarding this during his own speech. I said that I wanted debate in committee broadened to go beyond the scope of Bill C-52 and focus on problems, so that rail transportation can get better.

I hope that my colleagues will agree with me regarding the need to open up debate and see what members have to say about other issues in the report that the bill does not address.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I thank my colleague for his question.

At the beginning of his question, he mentioned that there were continental relationships when it comes to shipping. That fact is undeniable. If there is one thing that CN and CP customers want, it is that their goods be delivered as quickly as possible. That is the problem. And the reason the government has decided to act after many years of standing idly by is that market-driven logic unfortunately failed this time.

Moreover, that is why, in my speech, I called on CN and CP to change their corporate culture, which is focused solely on profit, in an environment where it is really not possible to be ruled by completely market-driven logic. Indeed, you cannot create 10 competitors for CN and CP just like that. As members are aware, this kind of infrastructure makes it is quite difficult to develop competition.

I said in my speech that CN and CP should view this bill as a warning sign that things are bad and that they need to improve their practices. We are here solely because there is a problem that needs to be addressed through Bill C-52.

The House resumed consideration of the motion that Bill C-52, An Act to amend the Canada Transportation Act (administration, air and railway transportation and arbitration), be read the second time and referred to a committee.

[Denis Blanchette, NDP, Louis-Hébert, QC]

Mr. Speaker, I am pleased to rise today to discuss this bill, as this may be the dawn of a new era in rail transportation. It has been my sense that the sector has been in decline for decades.

When a bill is introduced in the House, it is usually because there is some problem that needs addressing. Laws are not passed just for the sake of passing them. We do not set out to bore people. We are not in the business of hurting market sectors. We are here to make things better.

The Liberals acted hastily when they privatized CN in 1995, and they failed to think through the consequences. Monopolies were created in some regions of the country and duopolies in others, and we know what this led to.

In my riding, for instance, one of the consequences of the privatization has become a recurring election issue: the upkeep of the Quebec Bridge and its rail lines. The matter has been before the courts for seven years and is the direct result of privatization. The Conservatives only ignored the problem. When CN was privatized there was no consideration given to the consequences for the users of the different services. It is not worth mentioning VIA Rail because we all know what the problems with it are. We will have other opportunities to discuss this. The users of these transportation services have had problems for years.

The government has finally decided to act, but it is doing the bare minimum, and more needs to be done. We intend to support the bill at second reading and propose amendments to improve it.

If the Conservative government ends up introducing regulations, one can be sure that it is because the problem has dragged on for some while and something really must be done.

Is the fact that it is a private company the cause of the problem? No, the problem is that there is a monopoly. In this situation, there are two conflicting priorities: a company's need to make a profit and provide a dividend to its shareholders, and the service that it must provide its customers.

If there is no incentive created by competition, customer service suffers for the sake of shareholders' dividends. Moreover, an increasing number of sections of railway are being closed in rural regions, more and more services are being dropped and more and more cuts are being made to passenger service. This era has seen the decline of rail transportation.

And that is despite the fact that ours is a huge but sparsely populated country with vast distances to cover. That is why we need an efficient long-distance transportation system that causes as little environmental damage as possible. Rail transportation would fit the bill, but the government is letting the system go downhill.

The government waited years to act. It should come as no surprise that people using the service began to get together. I am not suggesting that they began to unionize, because that would freak some people out. People who use the system felt the need to talk to one another about how the level of service does not make sense. They started to exert pressure on the government because the level and quality of service were poor.

Globalization means that we have to deliver products all over the place, and quickly. Obviously, if someone has a product, be it from a forest, a mine, a farm or anywhere else outside a major centre, that product has to be packed up and shipped quickly. Global competition means that we need to provide this kind of service and we need the infrastructure to do it.

So the question is, how can we balance the need for a business to make a profit—be it a farm or a major corporation in a remote location—with the needs of many companies that often have no alternative form of transportation? Throw into the mix the need for transportation to be as green as possible. How can we bring these needs in line with each other? This has always been a problem.

That is why, in January 2011, Transport Canada released a final report on its rail freight service review. The committee's mandate included the following:

Conduct a review of the rail-based logistics chain...with a focus on service provided to Canadian shippers and customers...

Identify problems and issues with respect to railway service including those stemming from other elements of the logistics chain.

Rail transportation is one part of the logistics chain for shipping to various clients.

For shippers located on shortlines, determine if there are any problems with logistics and, if so, the source of the problem including service, operating, or marketing practices of the main-line carriers.

Signs were already pointing to a deep-rooted problem. At the end of the report, of course, there are a number of recommendations. There is a whole range. For example, the first recommendation is as follows:

The Panel recommends that railways, in collaboration with their stakeholders, continue to develop commercial measures to improve rail service.

In 2011, it was acknowledged that there was an issue. That was two years ago.

The second recommendation is as follows:

Prior to implementing changes in local train service, railways should consult affected stakeholders and provide a minimum notification period of 10 working days.

That recommendation relates to previously identified service issues.

And here is the third recommendation:

Railways should enter into good-faith negotiations to establish service agreements upon request by stakeholders...

That recommendation truly concerns the scope of Bill C-52, and the bill addresses only the third recommendation.

There is a fourth recommendation:

The Panel recommends that railways, assisted by a facilitator appointed by Transport Canada, should engage in negotiations with stakeholders...

That happened a bit later. I will speak to that in a moment.

And the fifth recommendation is as follows:

Railways should provide improved supply chain visibility through enhanced reporting.

Basically, there is a lack of communication between the service provider and the clients. Plain and simple. We could keep going.

Last year, in May 2012, the facilitator's report also came with recommendations.

The first recommendation is as follows:

Transport Canada should make the service agreement template...available to rail freight stakeholders...

There is mention of a service agreement template, a dispute resolution process, and so on.

This is a fundamental problem. Clients often have no choice. Even rural or more remote areas are producing goods.

That is the beauty of globalization. We can produce goods across the country and deliver them to anywhere in the world. To do this, we need world-class infrastructure. We have a serious problem when it is totally impossible for users to get adequate service.

We see that people are dissatisfied and have lost confidence. We also have to consider the economic consequences for users of this service, one of which is the erosion of market share. We often forget this, but we are sacrificing Canada's economic driving force.

That is why I think this bill is a step in the right direction. We are slowly trying to solve the problem through this legislation. Although it does not do everything we would like it to and it does not come close to creating a national transportation strategy, at least we are trying to come up with solutions. We are getting closer to something better for the entire supply chain from the perspective of producers in rural and remote areas.

If we do not address this issue, Canada's ability to compete will be compromised. God knows that Canada's competitiveness is important. We therefore cannot allow rail service and our providers' ability to improve that service to deteriorate.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I would like to know what my colleague thinks about the NDP's criticism that Bill C-52 does not address rail fees.

When members of our party consulted exporters, many of them criticized the huge variations in prices, depending on which company they chose—CN or CP. Unfortunately, this bill does not address these price discrepancies.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is with pleasure that I rise to speak to Bill C-52 this afternoon.

It is a bill that we have been anticipating for a good number of weeks now. In fact, the Liberal Party has been advocating for this legislation, from what I understand, since 2008, and for very good reason. We need to understand and appreciate just how significant our rail lines are to our nation. We do a phenomenal amount of transportation through those rail lines, from coast to coast to coast. Every community across Canada needs to have a strong, viable rail line or access to such a rail line in order to succeed. At the end of the day, CN and CP own a vast majority of all the capital infrastructure that allows us to transport the many goods and products moved every day.

In fact, living in Winnipeg's north end I often pass through the CP yards. We can go over the Arlington bridge and get a very clear indication of the massive size of CP, and that is the smaller of the two railways. CP does less than 40% of the overall transportation of goods and services compared to CN, which does close to 60%. When we drive over that Arlington bridge, we can look on either side and see huge compounds where trains are loaded, offloaded, and their contents transferred to go in different directions, and so forth. We can drive down Inkster Boulevard or Sturgeon Road in the north end, or take a multitude of different bridges that go over the trains, in any single day and see the number of trains, the hundreds of rail cars full of a wide variety of commodities.

Given the importance of our trains in that rail infrastructure, one would think that would be a higher priority for the Government of Canada to recognize—and when I say “to recognize”, that means to get the job done.

The issue that we are debating today is nothing new. As I indicated in a question previously, the shipping industry as a whole, the stakeholders in that shipping industry, have been calling for very specific action virtually since 2007, because of the sense of frustration they have felt over the years. That frustration is based on the sense of fairness.

To what degree is there fairness in the relationship between our rail lines and our rail operators, in particular, CN and CP, which handle about 95% of the traffic? There is a sense of frustration that there is no level playing field, that those two dominant rail lines have too much power and control over freight costs and the type of delivery provided.

I must applaud my colleague from Wascana. The member from Regina, Saskatchewan has been a long-time advocate for this change. I know first-hand because I have heard him on numerous occasions in the last couple of years speak of how badly we need to have the legislation that is before us today. I know he has worked with many of the different stakeholders to try to get a better understanding of why these shippers are in the position they are in, and why it is so critically important that we do more.

He has taken the time, not just in recent weeks or months but for years, to try to raise the profile of this issue with the government. I know that he has already had the opportunity to speak when it was first discussed at second reading. I think he has done a fantastic job in ensuring that the Liberal Party is well-positioned to understand this issue and, ultimately, to take it forward.

I believe that the member for Wascana brings a great deal of credibility as to why this is such an important issue, because he was a former minister of finance. As such, he understands the economics and contribution of our rail lines and how important they are to our overall economy and GDP. He brings an immense amount of credibility to the debate on this issue and has allowed the Liberal Party to be well positioned on it.

We are suggesting that the time has come for the bill to get out of the House and into committee. There are many stakeholders out there who have vested interests, some in the millions and tens of millions of dollars, who want to participate in this debate.

Many people may not realize that one of the largest stakeholders in the rail lines is Bill Gates, the founder of Microsoft, who has billions of dollars invested in CN. However, as much as I might like his product, I am very much concerned for the other end, the people who have the $500,000 farm investment or their life's earnings through generations of families and who want to get their product to market. They are the ones I am really interested in hearing from.

That is not say that CN, CP and the short lines should be denied profits. Only the New Democrats would attempt to do that. We recognize that profits are necessary in a capitalistic market to succeed. However, we also recognize that there is a responsibility to be fair, but we have failed in that. The people who have suffered the most as a direct result are the prairie farmers, the shop floor of a manufacturing business in Ontario, the mining that takes place all across Canada and family businesses. They rely on the rail lines to get their products to market and do not have much of a choice in terms of selection.

Whether wheat, barley or potash, there is a litany of things that a farmer or small corporation uses trains for to get their products to market. This is what they have to go up against. One report canvassing the farming community indicated that it could only rely some 50% of the time on rail cars being in the right place at the right time, even though they had placed their order already. How can one manage a farm operation in the face of this? I think that most if not all members of the House would recognize that is just not right and that there needs to be a consequence.

When we look at Bill C-52, we see a bill that is at least moving us somewhat forward. We are not necessarily happy with all of the details of the bill, but I suspect that there will be a number of amendments proposed once we get to committee, and we look forward to hearing these.

However, the real challenge for the government is to recognize that it has denied the industry the opportunity to provide that direct public feedback. It has held off on this legislation, not once or twice, but on several occasions. Not only did the Conservatives do one study, they did two studies. They have only been in government for six or seven years, yet they have had two studies on the issue.

We know for sure is that there is a high level of interest. From discussions and my understanding from the member for Wascana, we want to afford individuals who would like to come to the committee the opportunity to state their case, to make representations on what they feel is important.

What do I mean by saying that? We anticipate that this legislation will pass. The Liberal Party has indicated that it will co-operate on its passage to committee, because we believe it has taken far too long to get the bill before us today.

What we want in return is not something specific to the Liberal Party as much as it is specific to the different stakeholders out there. We would like to see the committee afford an opportunity those who want to come to committee to make presentations and express their concerns.

I believe that the government needs to hear what shippers and even the rail companies, CN and CP, have to say about the legislation. Given that the legislation has been on the back burner for so long, we recognize that there have been some mild, and I underline the word “mild”, modifications or changes that have afforded some marginal benefits. At least that is what some of the stakeholders have informed us, but nowhere near to the degree necessary.

I think it is very important that through the committee stage we do not try to put limits on how the members might get engaged in this. Sometimes there is even value in taking the committee off the Hill. There could be potential value in that in this situation.

At the end of the day, one of the things we are looking for is a very strong service level agreement, so that the industry stakeholders as a whole feel confident that there is something they can do to ensure that their product will get to market in a more timely fashion.

It saddens most Canadians when they hear of the waste that occurs because of delays or the lack of availability of cars. Those are very real issues that many producers have to face every year.

In the service level agreements, the producers are looking for a commitment in writing to some sort of penalty if the rail line does not live up to its commitment. I refer again to those small producers in particular, but also to all of the different stakeholders who depend so heavily on our rail lines, having their crops at certain stations at the right time in anticipation of their crop ultimately getting to market.

The same principle applies for other things. I am very proud to be a prairie member of Parliament. There is nothing like driving between Winnipeg and Carman and seeing eight or nine huge combines going through one field. One can see the tonnage of wheat being collected. Ultimately, it will end up on a train. The farmers need to feel confident that the train car will be there at the right time for them. Agriculture uses our railway significantly.

Our forestry industry is huge, whether in British Columbia, Manitoba or Atlantic Canada. There are minerals, again from coast to coast to coast, and chemicals of all sorts, as well as fertilizers. What about the oil and gas industry? Imagine how incredibly important the oil and gas industry is to our country. I disagree with the leader of the New Democratic Party. It is not Dutch elm disease. All of Canada benefits from our oil and gas production out west. I believe that the vast majority, 95%, of Canadians, would recognize the true value of it. Our rail lines play a very critical role in that area also.

The dependence on industrial and manufactured goods is very real. How many trains do we see coming across our country, from Ontario or Quebec, full of brand new vehicles destined for car dealerships? Many of them are pre-ordered. An anxious consumer is anticipating the arrival of his or her vehicle.

The list goes on. To get a good sense of how dependent we are on our rail lines, go to a major rail line, park outside for a day, and see the amount of train traffic that travels by. Watch the containers go by. Whether they are Canadian Tire train traffic, or Costco products, products from China, brand new automobiles, containers of Saskatchewan prairie wheat, Manitoba's and Alberta's endless commodities, or lumber from British Columbia, it is virtually endless. To really get an appreciation of how important rail service is to our nation, park outside a main line and watch the hundreds and hundreds of cars that pass every day and imagine the potential.

If one believes in the Canadian economy, as I do and the Liberal Party does, and that the potential is unlimited, one has to recognize that our rail line is going to play an absolutely critical role in the future development of our country. That is the reason I would ultimately argue that the government has been negligent. This has been an issue on the agenda since 2007.

We are glad to see it here today. We support the bill in principle. We want to see it go to committee. We want to have individuals make presentations and express their concerns. The idea is that the government will be receptive to the necessary amendments that would make the legislation better so that when it comes back at third reading, it will receive the unanimous support of all members of the House, given the very important role of our rail lines, which stakeholders and consumers depend on.

With those few words, I thank the House for the opportunity to speak.