Bill C-30 (Historical)

Fair Rail for Grain Farmers Act

An Act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures

This enactment amends the Canada Grain Act to permit the regulation of contracts relating to grain and the arbitration of disputes respecting the provisions of those contracts. It also amends the Canada Transportation Act with respect to railway transportation in order to, among other things,
(a) require the Canadian National Railway Company and the Canadian Pacific Railway Company to move the minimum amount of grain specified in the Canada Transportation Act or by order of the Governor in Council; and
(b) facilitate the movement of grain by rail.

Admissibility of Amendments in the Fifth Report of the Standing Committee on Canadian Heritage

[Blake Richards, Conservative, Banff—Airdrie, AB]

Mr. Speaker, I am rising on a point of order.

The point of order concerns the report that was just tabled: the fifth report of the Standing Committee on Canadian Heritage respecting Bill C-10. I would respectfully submit that several of the amendments contained in that fifth report must be struck out because the committee exceeded its authority.

Last Monday, June 7, the House adopted a time allocation motion limiting committee deliberations to only five further hours. The part of the House's order that is relevant to this point of order says, at pages 104.3 and 104.4 of the Journals:

That, at the expiry of the time provided in this order for the committee stage, any proceedings before the Standing Committee on Canadian Heritage on the said bill shall be interrupted, if required for the purpose of this order, and, in turn, every question necessary for the disposal of the said stage of the bill shall be put forthwith and successively, without further debate or amendment.

At the committee's second meeting, on Thursday, June 10, those five hours had expired and the Canadian heritage committee proceeded to the disposal of the committee stage of the bill, in accordance with the House's order.

The chair of the committee, the hon. member for Coast of Bays—Central—Notre Dame, informed the committee that, by the terms of the House's order, the amendments that had been placed on notice could not be moved and therefore could not be voted upon by the committee. The Liberal-Bloc-NDP majority on the committee, however, then overturned the chair's ruling, thereby forcing the committee to consider these amendments without any debate, without any opportunity to question expert witnesses from the department of Canadian Heritage and without any opportunity to hear the wording of the amendment read aloud.

Those events are recorded in the relevant minutes of proceedings for the committee's second meeting on June 10. The amendments subsequently considered by the committee are recorded in those minutes of proceedings, as well, for the committee's meeting on Friday, June 11. Both sets of minutes, as noted in the comment in the fifth report immediately preceding the chair's signature, have been laid upon the table, among others.

House of Commons Procedure and Practice, third edition says, at page 779:

Since a committee may appeal the decision of its Chair and reverse that decision, it may happen that a committee will report a bill with amendments that were initially ruled out of order by the Chair. The admissibility of those amendments, and of any other amendments made by a committee, may therefore be challenged on procedural grounds when the House resumes its consideration of the bill at report stage. The admissibility of the amendments is then determined by the Speaker of the House, whether in response to a point of order or on his or her own initiative.

That is why I am rising today on this point of order. In overturning the committee chair's ruling and forcing amendments that had not been properly moved to be voted upon, I respectfully submit that the committee exceeded its authority by contradicting the House's order, which required that “every question necessary for the disposal of the said stage of the bill shall be put forthwith and successively, without further debate or amendment.”

To be clear, the questions necessary to dispose of the clause by clause consideration of the bill are questions on the clauses themselves, not amendments that have simply been placed on notice.

The Chair has previously considered a similar case, from which I believe in the current circumstances a distinction may be drawn.

On November 29, 2012, Mr. Speaker, one of your predecessors, the hon. member for Regina—Qu'Appelle, made a ruling at page 12,609 of the Debates, concerning the proceedings of the Standing Committee on Finance respecting Bill C-45, the Jobs and Growth Act, 2012. In that case, the committee had adopted a timetabling motion concerning its study of the bill. It contained language that was similar to that which the House adopted last week in its time allocation motion concerning Bill C-10.

In the case of the finance committee, the chair had made a similar ruling to the one made by the hon. member for Coast of Bays—Central—Notre Dame and, again, the committee overturned that ruling.

Following a point of order in the House concerning the finance committee's report on the former Bill C-45, the former Speaker did not set aside the committee's report on the bill. The distinction between these two cases, I would argue, is that the finance committee was interpreting a motion that the committee itself had adopted. In the current case, seven members of the Canadian heritage committee substituted their own judgment for how an order of this House, voted upon by the entire House, should be interpreted.

We often refer to committees as masters of their own proceedings, but Bosc and Gagnon put that in a very important context at pages 1057 and 1058, which state:

The concept refers to the freedom committees normally have to organize their work as they see fit and the option they have of defining, on their own, certain rules of procedure that facilitate their proceedings.

These freedoms are not, however, total or absolute. First, it is useful to bear in mind that committees are creatures of the House. This means that they have no independent existence and are not permitted to take action unless they have been authorized or empowered to do so by the House.

While the case of former Bill C-45 was of a committee majority preferring its own interpretation of a committee motion, the current case of Bill C-10 is of a committee majority seeking to override the House's instruction. It was, to borrow the words of Bosc and Gagnon, taking an action that it was authorized or empowered by the House to do. Therefore, I would respectfully submit that the amendments made to clauses 8 through 47 of Bill C-10 must be ruled out of order and therefore struck from the fifth report.

I would further ask that the committee's consideration of amendments after the proceedings had been interrupted under the provisions of the time allocation order be disregarded by the Chair for the purposes of applying the note attached to Standing Order 76(1)(5) respecting the criteria considered by the Chair in the selection of motions at the report stage.

I do not make this point of order lightly. In fact, one of those amendments that I refer to was sponsored by my own party and several others were voted for by my colleagues, but that is beside the point. Our rules must be followed. Parliamentary procedure is not a body of play pretend rules that can just be set aside at the first moment of inconvenience. It does not matter whether these flawed decisions were taken by majority vote or even with unanimity because the rules of the House must be followed.

The hon. member for Regina—Qu'Appelle, in a different ruling on May 1, 2014, at page 4787 of the Debates, concerning Bill C-30, the Fair Rail for Grain Farmers Act, found that amendments that were adopted by the Standing Committee on Agriculture and Agri-Food, without procedural objection and without dissent, had to be struck from the bill because the committee had acted outside of its authority in adopting them, commenting:

The Chair has no difficulty agreeing with the parliamentary secretary that the amendment is relevant to the subject matter of the bill. Indeed, as a fellow Saskatchewan MP who represents a large number of grain producers, I can certainly agree on the importance of this issue. As Speaker, however, not only can I not simply act according to my personal beliefs, I must respect House of Commons precedents which, in the case before us, are only too clear.

The correct place to put forward the amendments to clauses 8 through 47 of Bill C-10, in light of the proper application of a time allocation order, is at the report stage here on the floor of the House.

Additionally, and in the alternative to the matter I have already raised, I would also draw your attention, Mr. Speaker, to the amendment known as amendment LIB-9.1 that was made by the Canadian heritage committee to clause 23. The Chair ruled the particular amendment out of order for exceeding the scope of the bill and that it breached the so-called “parent act” rule, which is explained by Bosc and Gagnon at page 771, by proposing to amend a section of the Broadcasting Act which was not touched by the provisions of Bill C-10. The committee, however, voted to overturn the Chair's ruling in that regard as well.

In that particular case, the Chair may simply have to regard the fifth report and note that the amendment on its face does something which the committee was not permitted to do and therefore should be ruled out of order and struck from the fifth report.

The solution for the government here is, like the case of the former Bill C-30, to propose an amendment at third reading to recommit Bill C-10 to the Canadian heritage committee so it may, once properly instructed and empowered, make Liberal-9.1 amendment in the proper manner.

Transportation Modernization Act

[Ken Hardie, Liberal, Fleetwood—Port Kells, BC]

Mr. Speaker, as a member of that committee, I can certainly vouch for the parliamentary secretary's comments. It was extremely collaborative. Many of the amendments brought forward were wordsmithed and shaped in order to bring this forward.

One of the primary things we tried to do was understand what the previous government had tried to accomplish with Bill C-30. We discovered that the interswitching provision of 150 kilometres, in spite of the difficulties being faced by grain shippers in the season it was brought forward, was never actually used. It did not work.

Although the intention was there to improve the system, our committee focused on ways to take that concept and make it a lot better. I am going to give my hon. friend another opportunity to really underscore the value of the reciprocal penalties as being a far more potent tool for shippers to have, and through the shippers, the producers, in order to get compliance and co-operation from the railways.

[Sean Fraser, Liberal, Central Nova, NS]

Mr. Speaker, we have spent a great deal of time on questions in this debate about the role of Bill C-30 versus the long-haul interswitching included in Bill C-49. Bill C-30 provided a short-term solution to respond to an immediate need, but it did not solve the long-term problem of the transportation of western Canadian grain. It also did not provide any solution for the rest of the country in different industries and different regions.

Although I lived in Alberta for about five years, I am proudly Nova Scotian. I am curious if the hon. member could offer some thoughts on the importance of extending efficiencies in our transportation system to different sectors of the economy and to different regions, to make sure that our transportation system works for everyone and brings the greatest growth to the Canadian economy.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, I want to thank our shadow minister for transportation for all the incredible work she has done on what is an ominous and very difficult bill to try to wade through.

She is exactly right. We cannot underestimate the financial impact of inaction on Bill C-49. We went through this in 2013-14 and the impact on the Canadian economy was in excess of $8 billion. That is why we put forward Bill C-30 to ensure we would never have those types of issues again.

We are certainly hearing from our stakeholders that this has not only impacted this year's harvest, but will very likely impact next year's harvest. They have nowhere to store their product. Their bins are full now. Until things start moving, there is not going to be anywhere to store their products.

Nutrien in Saskatchewan has shut down an entire potash mine because it cannot move product. There is no demand for those inputs because farmers are at a loss as to what to plant this year, or if they will be able to plant. They have full bins and road bans are in place. This has caused such stress among our agriculture sector. I really want to highlight the fact that the implication this has had is not simply a matter of frustration. It has really impacted people on the ground and their families.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, it is pleasure to rise today and speak to Bill C-49 and the motion put forward by the government.

The message I want to get forward today is really about what brought us here and whether Canadian agriculture had to go through all this pain and suffering when we really did not achieve much at the end. What is disingenuous with the entire process is that over the last several months the Minister of Transport and the Minister of Agriculture were telling our producers, stakeholders, and shippers to hang on and be patient, that once Bill C-49 was passed it was going to resolve all of their problems and we would not have a grain backlog in the future.

I am going to speak more on the agriculture side than I will on some of the other elements of Bill C-49.

The inaction by the ministers and the government on this issue for almost a year has been mind-boggling. Last June my colleague, the shadow minister for transportation, put forward a list of amendments that would have addressed many of these problems we are facing, but they were turned down. Now we have them back on the table from the Senate. They went through the Standing Committee on Transport, Infrastructure and Communities and again through the Senate. Now they are here, and the Liberal government is saying it will be supporting a number of those amendments. I am not sure what changed over those 10 months; the Liberals could have supported those amendments last June, but they did not.

It was the start of time after time when the Liberals were given numerous options to get Bill C-49 through the process as quickly as possible, as well as to address many of the problems that our grain farmers across western Canada have been facing. Every time the Liberals were given an option to address the situation, which became a crisis in January and February, they did nothing.

Last summer, we encouraged the government to extend the provisions of Bill C-30, the Fair Rail for Grain Farmers Act, which extended interswitching and mandatory minimum volumes, a process that we had in place in 2013-14 when we went through the previous grain backlog. This addressed many of those problems. Our stakeholders, producers, grain terminals, and shippers were satisfied. They were quite pleased with that process. It gave the rail lines some accountability to ensure that they were able to move grain as well as other products, whether it was lumber, mining, or oil and gas. We want to make sure that all our producers have an opportunity to get their commodities to market.

In the fall, when Bill C-49 was first brought to the House, we saw that it was a massive document and that it was going to be extremely difficult to get any sort of consensus on a bill that dealt with everything from video recorders and locomotives to an air passenger bill of rights to interswitching. How were we possibly going to be able to find some sort of satisfaction among all stakeholders and within all the different points of view in our industries, let alone here in the House of Commons or in the Senate?

At that time we saw that this was going to be an issue. With the size and the scope that Bill C-49 entailed, we knew that getting it through that process with any sort of expediency was going to be nearly impossible. Once again we provided what I thought was a thoughtful resolution to the Liberal government, which was to split Bill C-49 into two bills. We would take many of the aspects of the bill that had to do with grain and grain transportation through the process as quickly as possible. Some of the other contentious issues that had to do with airline rights and other issues would take longer to go through the process, but we knew there was no time crunch or time sensitivity of the kind that there was on the grain side.

Last fall, with a larger-than-average harvest and the challenges CN and CP were facing in terms of meeting the contracts, we saw the rail line numbers dipping with each weekly report that was coming out.

We raised the alarm bells last fall that this was going to be a problem. We encouraged the government to split Bill C-49. I recall being in this House last October making almost the same argument that we were not going to get Bill C-49 through this process in a timely fashion to prevent another grain backlog. Again, it fell on deaf ears.

The result of that inaction last October, before we got to this point, was rail service that put us in a grain crisis. It is a crisis that still exists today. I do not think we can miss that point. Although we are here now, no problem has been resolved. We have road bans across the western provinces. We have more than 30 transport ships off the coast of British Columbia waiting for product. Those demurrage costs of $10,000 a day and up are now being passed on to the producers. Who will pay those additional costs that are now being passed on to our farmers across western Canada?

We have to keep that in mind as we have this discussion and this debate today. The crisis our farmers have been facing since last fall is still there, and it is not going away anytime soon. It is going to impact their fall season. They cannot move grain right now. Many of them are finally in the fields seeding. Road bans are in place in many of the western provinces, inhibiting their ability to actually transport grain to the terminal.

They are watching us today with a lot of focus on the decision we will be making in this House. How are we going to address the problems they are facing? The crisis has become so bad that our most recent report says that almost half a billion dollars' worth of grain is sitting in storage bins across western Canada. That is grain that our producers and our farmers cannot sell. They are unable to sell their product and get it to the terminal and then to the coast.

These same farmers who are unable to sell their product still have bills coming in. There are mortgage payments, lease payments on land, equipment purchases, and input costs as they try to get ready to start seeding. There are programs in place through Farm Credit Canada and the advanced payments program, essential programs that are in place to help in these times of extenuating circumstances.

I know that our producers do not want to have to rely on those assistance programs for a product they work hard all year to plant and harvest and are now trying to sell, but are unable to because of logistics.

As my colleague from Guelph said, we had an emergency meeting of the agriculture committee. I want to commend my colleagues on that committee for agreeing to have that emergency meeting with many of our stakeholders.

One of our witnesses at that meeting was a young farmer from Saskatchewan. I thought he put it quite well. He said, “We have to face so many uncertainties when we are in agriculture: uncertain weather, uncertain input costs, uncertainty when it comes to the commodity prices. The one thing we should be able to rely on is a reliable transportation system, which we do not have right now.”

One of the key issues with Bill C-49 is that it does not resolve those problems. We have gone through this entire process. As I said earlier, the Liberal government, the Minister of Transport, and the Minister of Agriculture and Agri-Food, through this entire process, have said that we should be patient, because Bill C-49 would address all the problems. Then just a few weeks ago, we had both ministers admit publicly that Bill C-49, indeed, will not resolve a lot of the problems that have been raised.

The government is asking our producers to suffer through yet another grain backlog, which should never have happened. The government had all the tools in place to address this problem, yet it did nothing. I can understand the frustration of our producers across the western provinces. They are looking at us today to take action to ensure that they never have to face this sort of issue again.

We have had many of our grain, barley, and pulse growers here over the last couple of weeks as they have had their days on the Hill. They have raised some other points that I do not think we have talked enough about as we have gone through this process. Not only is this grain backlog causing them to suffer because they are not able to sell their product, it is tarnishing our reputation as a reliable trading partner around the world. A lot of our producers are not getting a premium price for their product, because for all intents and purposes, Canada does not have a reputation for being able to get their contracts out in a timely fashion. We cannot meet our commitments to other countries. When prices are high in the fall, in October, November, and December, we should be selling our crops. We are not getting them to market, to the terminals, and to the west coast until the spring, sometimes a year later, so we are missing out on those premium prices, because we have an inept logistical system and an inept transportation system, a transportation system that has very little to no accountability.

Earlier today, the Minister of Transport was talking about one of the amendments the Senate had brought forward, which I think is critical. It is on “own motion powers” for the Canadian Transportation Agency. That was an amendment brought forward at the standing committee for transportation. It was an amendment brought forward by many of our stakeholders. They want accountability for the rail lines. If there are issues, and our stakeholders see issues, the Canadian Transportation Agency, once it receives a complaint, or even if it does not receive a complaint, can take action to try to address some of those key issues. It is a key part of Bill C-49.

The Minister of Transport earlier today spoke very highly about this part of the bill when he said that we are giving the CTA its own motion powers, which will make such a critical difference for our producers. In fact, in the amendment the Liberal government has put forward, there are no own motion powers. It states in the amendment that the authorization goes to the Minister of Transport. He will be the one who decides if the CTA can take action and put forward some guidelines, a template, on what action can be taken.

Let us put that into a perspective that I think all of us in the House today can understand. That is like my parents saying, “You know what, son? You can do whatever you want with your life, as long as it's okay with mum and dad.” That is what the Liberal government's own motion powers are in Bill C-49. Who is going to give that any credence? There is supposed to be some accountability in Bill C-49 for our shippers. However, this only comes into effect if it is okay with the Minister of Transport. It is okay for people to make their own decisions, but they have to ask the minister first. That has nothing to do with own motion powers. It is really quite hollow hearing that this is going to be a critical part of the bill, because it is taking the arms of the CTA and tying them behind its back.

As we have gone through this process, every step of the way we have offered the Liberal government a solution. My colleague, the shadow minister for transportation, has offered another solution today. She has brought forward an amendment that will concurred the Senate amendments to get this bill passed as quickly as possible.

We are not saying that we agree with every aspect of Bill C-49. In fact, I think we have heard in the debate today that there are still some significant issues with the bill. We also listened to our stakeholders. They need something that will give them some piece of mind that there is going to be some sort of legislation in place to help them address some of the problems they are facing.

We have had stakeholders like the CFA. They represent 200,000 farm families. The Grain Growers represent 50,000 active producers, and they are asking for no further delays on Bill C-49. They want it passed immediately. That is what my colleague's motion today will do.

We want to ensure that we can get this bill passed as quickly as possible. Again, every time we have offered an option or a solution to get this bill through the process, the Liberals have put in yet another step and delay.

They are saying today that if they do not support our motion, and they want our support to pass their amendments and the minister's motion, this all of a sudden will be a quick process. That is simply not the case. If the Liberals do not accept our motion and they pass theirs, Bill C-49 will go back to the Senate, and the Senate will have to agree to the Liberals' amendments. It is yet another obstacle to keep Bill C-49 from passing. This is going to be a ping-pong ball that will go back and forth, or maybe not. Maybe the Senate will agree to the Liberal amendments, but we do not have any assurance of that.

There are amendments they could have passed almost a year ago. There have been opportunities put forward to pass Bill C-49, or, what preferably would have been the case last fall, to extend Bill C-30, and we would never have faced any of these issues.

I am really encouraging our colleagues across the floor to support our motion today, pass the Senate amendments, go right to royal assent, and give our stakeholders the assurances they are looking for to ensure that they can get their job done. What this comes down to is our stakeholders' inability to get their products to market. We have a great deal of concern that this will spill into the fall as farmers get ready for next year's harvest. That has been the disconcerting part of it all.

I think my colleague across the way can understand the comments we heard at our emergency meeting last month on the grain backlog. Many of those witnesses came forward and said that they have given up on it this year. They know that they are not going to get their grain to market and are hoping that this does not impact next year's harvest and next year's shipping season.

I want to highlight that this bill is certainly not perfect. There are lots of concerns about what is in Bill C-49. I want to read some comments from the Premier of Saskatchewan, who has been extremely vocal in his concern about Bill C-49 and the problems it has caused in Saskatchewan. We have seen that Nutrien has just announced that it has laid off or is laying off more than 600 employees, which is going to impact maybe up to 1,300 employees in rural Saskatchewan. The Saskatchewan Premier said, “This is a direct result of the federal government not taking action where there is a huge problem, and they have the clear authority to fix it.”

What have the Liberals done in response to that? They have done nothing. Once again, they want to put this bill back to the Senate, which would delay this process even further.

We have to highlight the financial impact these delays have had. Again, $500 million in grain is sitting in storage bins across western Canada, not getting to market. We have now seen the job layoffs in Saskatchewan at Nutrien, and that is just one company, one potash company. Certainly there will be others that will be facing similar problems.

This is having implications for rural communities. If farmers cannot sell their grain, and they cannot get it to market, it means they do not have money in their pockets to spend in our small communities. That is grocery stores, gas stations, and little movie theatres. That is charities, ball teams, and fundraisers. Those are the things that are suffering because our farmers do not have money in their pockets. They cannot get their grain to market, and that is a direct result of the inaction of the Liberal government when it comes to this grain backlog.

The Liberals could have stopped it a year ago. They could have stopped it in the fall. They could have taken action with an order in council in January or February. Every single time, they have stuck up for the rail duopoly.

With Bill C-49, there is no accountability. Why have the Liberals made our grain farmers suffer through yet another grain backlog? When it comes down to it, they have really done nothing.

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

Madam Speaker, I am pleased to take part today in the debate for Bill C-49, the transportation modernization act. This Liberal omnibus bill would substantially amend 13 different acts and have a profound effect on three major modes of transportation: rail, air, and water.

These are big changes, and it does not look as if the Liberals would be changing the rules for the better. Bill C-49 is the first legislative response to the 2016 Canada Transportation Act review. While we welcome the commitment to a modernized and safer transportation strategy, we are concerned that the proposed changes would have costly unintended consequences.

While I would like to discuss all the complicated sets of changes from Bill C-49, such an undertaking would be impossible, given the time constraints of this debate. Today, I would like to particularly talk about the changes to rail transportation and what this means for our Canadian farmers and producers.

Our biggest concern on the changes to rail transportation has to do with the changes to the long-haul interswitching that this bill would make, in replacing the provisions introduced by the previous Conservative government with Bill C-30. Bill C- 30, or the Fair Rail for Grain Farmers Act, extended interswitching distances to 160 kilometres. Those provisions expired on August 1.

While new interswitching provisions were anticipated, this bill is far from meeting its objective of improving shipper and producer options with the new 1,200-kilometre interswitching tool. The system introduced through Bill C-30 was popular with shippers. It provided the certainty of a regulated rate up to 160 kilometres, and it is key that they dealt with the regulated rate for that full 160 kilometres.

With Bill C-49, the Liberals are putting forward a new long-haul interswitching tool on hauls of up to 1,200 kilometres, or up to 50% of the length of the entire haul. Shippers would be charged the regulated interswitching rate for the first 30 kilometres of the haul, and then the rate determined by the Canada Transportation Agency, which is determined on a case-by-case basis based on similar pricing hauls. That goes for the remainder of the distance to the interswitch point.

Shippers would only be able to interswitch at the first available interswitch point. The nearest interswitching location for many shippers and producers in northern Alberta and British Colombia would be in the Kamloops–Vancouver corridor, and the other exclusionary zone is from Quebec City to Windsor. lnterswitching is not allowed beyond 30 kilometres in these areas. For captive shippers, the new interswitching provisions would do nothing to encourage more competitive rates or improve competition.

This is a serious problem. It is important to remember that railways in Canada operate in a near monopoly situation. Captive shippers and producers have no choice but to use one company, to which they are effectively held hostage. This situation could put shippers and producers at a real disadvantage.

While there are provisions in Bill C-49 that would allow shippers to request a contract from a railway with reciprocal penalties, the penalty needs to be designed to acknowledge that the railways have much greater economic power than the shippers. We can also see that Bill C-49 is intended to encourage the efficient movement of shippers' traffic while creating a system that is fairly balanced between the shipper and the railway, but this original intention is eclipsed by the many uncertainties of Bill C-49, which are also present on this issue. To achieve the intended outcome, the government must improve and clarify its provisions for both issues of interswitching and penalties.

Bill C-49 also proposes changing the 30-kilometre interswitching rate so that the interswitching rate over 30 kilometres would be decided by the CTA on an ad hoc basis, as I mentioned earlier. This 30-kilometre interswitching rate would be set each year. It purports to take into account the railway's infrastructure needs across the entire network, which could increase the rate paid by shippers.

The rate-setting regime this bill introduces needs to be designed to ensure shippers always have access to competitive rates. As it stands, the rate would be derived from comparable traffic that is subject to captivity. This system needs to concentrate on a concrete review mechanism to ensure it is actually working for shippers.

However, the Liberals cannot just design this system and leave it to simply administer itself. It is not a budget. Without a sunset clause or predesigned review dates in two to three years, there are absolutely no guarantees for shippers and producers that they will benefit from it.

To remain competitive, shippers and producers rely on clear provisions to ensure efficient access to competing railways. The Liberals are failing to provide clarity and assurances for our Canadian shippers.

In addition, the new long-haul interswitching rates would be more difficult for shippers to use and will not serve as a useful tool in negotiations with the railroads. The proposed slew of changes to the long-haul interswitching rate present very vague outcomes. The sheer number of the regulatory changes and the administrative cost will put Canadian carriers at a disadvantage, especially against U.S. carriers.

Some argue that implementing these changes will increase U.S. railroad access to Canadian traffic at regulated rates without reciprocity. The government has expressed a desire to increase agricultural exports exponentially in the coming years, but has come up short with policies that would help achieve this. If we want to help the agricultural sector increase production and expand its global market share, we need to do more to increase its competitiveness in the global market, not restrict it. One of the ways to do that is to make sure they have efficient and reliable ways of moving their products.

Transportation needs to work much better and the bill must strive to improve rail transportation, because increasing the amount of produce that our amazing farmers produce will be useless if getting it to market becomes a substantial business cost for our producers. Canadians need and expect great rail service. We need an efficient system that ensures the cars show up and grain gets shipped on time.

An article in the Manitoba Cooperative states:

Western Canada’s bigger-than-expected crop is moving to export slower than at last crop year’s record pace, and while grain companies aren’t panicking, Keystone Agricultural Producers’ (KAP) president Dan Mazier says it’s costing farmers....

For most of the current crop year, which began Aug. 1, Mazier said CN Rail hasn’t delivered as many cars as it did a year ago, based on data published by the Ag Transport Coalition (ATC). It reports weekly on the number of cars most grain companies order and the number the railways deliver.

I have the Ag Transport Coalition numbers here for week 12 from October 15 to 21, showing that CN supplied 51% of the hopper cars that were ordered for shippers for that week, which resulted in an unfilled shipper demand of 2,614 hopper cars; and CP supplied 94% of the hopper cars ordered by shippers for grain in week 12, resulting in unfulfilled shipper demand of 281 hopper cars, with nearly 3,000 in total not making it in week 12.

In addition to that, speaking of competitiveness, we are also aware of the ongoing NAFTA negotiations. It is therefore remarkable that the government would allow the new 1,200 kilometre interswitching distance to increase U.S. rail access to Canada at regulated rates, allowing the U.S. to access this Canadian traffic without reciprocity. It seems like weak negotiating on the part of the government to give up this leverage before the NAFTA negotiations are concluded. It is another head scratching idea by the Liberal government to propose such changes even as NAFTA is being renegotiated. No wonder people think that the Prime Minister is napping on NAFTA, because Canadian competitiveness seems to be at the bottom of his priority list. Policies like this directly hurt our competitiveness and are yet another hurdle for producers and shippers to clear.

As it stands, there is simply too much uncertainty about the impact of the newly redesigned interswitching provisions. They need to be reviewable and timely.

Unfortunately, all of this uncertainty and unintended consequences stem from the Liberals' inability to actually consult and listen to industry experts and Canadians. The Liberals are quick to spend taxpayer money to travel around the country to consult and take selfies with Canadians, but when it comes down to it, the Liberals only listen to themselves.

Members from this side of the House have spoken to many stakeholders and experts. Many of these experts believe that what the Liberals are proposing is a convoluted remedy with unknown consequences.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Madam Speaker, actually, many shippers feel that the new approach to long-haul interswitching to be created by Bill C-49 will merely be a renamed version of the current and hardly used competitive line rates. There must be reasons that system is hardly used. This new long-haul interswitching rate would be more difficult for shippers to use and would also not serve as a useful tool in negotiations with the railroads, which Bill C-30 did. That bill was greatly appreciated by our farmers, to the point where they said to the government that they did not want to see it changed. They wanted to see that good policy continue.

There is another issue with this long-haul interswitching remedy. It will increase U.S. railroad access to Canadian traffic at regulated rates without reciprocity. When NAFTA is being renegotiated, it is unwise for Canada to be making this concession before those negotiations have gotten to where they need to be on this issue.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Mr. Speaker, in the fall of 2016 of the Liberal mandate, the Standing Committee on Transport, Infrastructure and Communities undertook a study of Bill C-30 and held a number of meetings on the merits of these measures and whether they should be allowed to sunset. The vast majority of the testimony heard was supportive of maintaining the 160-kilometre regulated interswitching limit. That is why the committee's first recommendation was the following:

That the Canadian Transportation Agency retain the flexibility provided under the Canada Transportation Act by the Fair Rail For Grain Farmers Act to set interswitching distances up to 160 km, in order to maintain a more competitive operating environment for rail shippers with direct access to only one railway company.

The current government ignored the committee's main recommendation. Basically, what the government is proposing with this new legislation is to replace 160-kilometre extended interswitching with the creation of a new long-haul interswitching on hauls of up to 1200 kilometres or up to 50% of the length of the entire haul. Shippers would be charged the regulated interswitching rate for the first 30 kilometres of the haul and then a rate determined by the Canada Transportation Agency, which would be determined on a case-by-case basis based on the price of a similar haul for the remainder of the distance to the interswitch point. Shippers would only be able to interswitch at the first available interswitch point within the zone. What the government has done is effectively taken a little-used existing remedy called a competitive line rate and renamed it long-haul interswitching.

When Bill C-30 was first introduced, there was universal support among shippers for the extended interswitching. The recommendation from stakeholders was to retain the interswitching distances up to 160 kilometres in order to maintain a more competitive operating environment for rail shippers with direct access to only one rail company. Again, the Liberals went through the motions of appearing to consult, and once again deaf ears prevailed.

To make up lost time and opportunity, the transport committee began special hearings on Bill C-49 in the week prior to the House's return from its summer recess. A total of 44 hours of testimony from dozens of stakeholders and expert witnesses was heard in each of the sectors touched by Bill C-49. Also on record are briefs and letters consisting of thousands of pages of data with more than 100 suggested technical amendments from those whose lives and livelihoods would be affected by this bill. From these incredible witnesses, there was unanimous agreement that Bill C-49 was a good start and that, if their suggested amendments were made, the bill would actually accomplish its stated objectives.

After only giving two weeks to review this mountain of information, the Liberal members of the transport committee defeated more than two dozen reasonable technical amendments. Again, these amendments were suggested by a wide range of stakeholders and experts and were written to make the act a workable solution for all involved.

Once again, the Liberals have a skewed definition of consultation—in other words, they pretend to listen and then blah blah blah—and prove again that it is only a buzzword that they used to get elected. With the introduction of long-haul interswitching, the Liberals sought to create their own solution to a problem that had already been addressed with a reasonable Conservative solution. In the Fair Rail for Grain Farmers Act, the previous Conservative government created a regime of extended interswitching that worked so well in the prairie provinces that shippers of all kinds from across Canada requested that it be extended to the entire country. Instead, the Liberals are committed to their complicated, inefficient long-haul interswitching regime that has such poor conception and so many exceptions that it would be basically useless to many shippers.

For example, a minor technical amendment proposed by both Conservative and NDP members of the committee would have changed the wording of the provision to allow the first interchange point to be in the reasonable direction of the shippers' destination. Under the legislation as it is, shippers may have to send their products potentially hundreds of kilometres in the wrong direction to reach the nearest interchange point, increasing their costs.

What happened to this very reasonable amendment? The Liberals defeated it. They ignored the advice and recommendations of even the the most competent, experienced, and concerned Canadians in regard to extended shipping lines.

Canadians have been ignored by this Liberal government. The laudable and credible efforts of Canadians to contribute in meaningful ways to improving the weaknesses of the Liberal legislation have again fallen on the deaf ears of the government.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Mr. Speaker, I am pleased to rise today and speak to Bill C-49, the transportation modernization act. This bill would amend a number of different bills, I believe 13 in fact, with many significant changes being more than just technical in nature. My focus will be on the issues around grain transportation as this portion of the bill is of great concern to those who farm in my riding of Yorkton—Melville and ship their products from Saskatchewan to multiple destinations by rail.

I look at this omnibus bill and wonder what the rationale was for creating such complex legislation. It could have been more effective on many levels to split Bill C-49 into rail shipping, rail safety, air, and marine to target consultation to expedite the best legislation for each. My colleague, representing Carlton Trail—Eagle Creek and the transport shadow minister, put forward such a motion in response to the Liberal member for Niagara Centre, who raised the idea of expediting the passage of this bill in order to provide grain farmers a greater amount of certainty as they negotiate contracts for future shipping seasons. It is telling that the member did not have the support of his Liberal transport minister or his colleagues, as the Liberal vote was unanimously against splitting the bill.

The Minister of Transport's silence and inaction on critical and time-sensitive transport issues over the past two years, especially on rail transport, has fuelled uncertainty with both shippers and the railroads as they negotiate shipping rates for the coming season. The previous Conservative government introduced Bill C-30, which gave the Canadian Transport Agency the power to allow shippers access to regulated interswitching up to 160 kilometres, mandated that CN and CP both haul at least 500 tonnes of grain per week, and introduced a new definition for adequate and suitable service levels. With this extension, the number of primary grain elevators with access to more than one railroad with the extended interswitching limits increased from 48 to 261. These measures were met with universal support from the shipping community because, even if shippers did not use interswitching, they could use it as a tool to increase their negotiating position with the railways, as the shippers knew exactly how much the interswitch portion of the haul would cost them. At the same time, the former Conservative government had announced that the Canada Transport Act statutory review would be expedited. It began a year early in order to provide long-term solutions to the grain backlog of the 2013-14 shipping season and other problems in the transport sector within Canada.

[Sean Fraser, Liberal, Central Nova, NS]

Mr. Speaker, it is my pleasure to rise and offer some comment on Bill C-49, an act to amend the Canada Transportation Act.

I had the pleasure of sitting through an inordinate amount of witness testimony as we went through this important bill, which really is the first step in implementing the minister's transportation 2030 strategy to make transportation more efficient in Canada.

I will start by offering a few comments on the importance of transportation to our country.

In the 21st century, we know that Canada is a trading nation. We know that in order to maximize our economic output, we depend heavily on global markets. When we are trying to maximize the economy in Canada, it does not take long to realize, with our skilled workforce and natural resources, that we have the capacity to produce more than we have the ability to consume domestically. As such, getting our goods to the world market is of extraordinary importance if we are going to succeed and thrive in a 21st century global economy. This is where Bill C-49 comes in. We recognize that to get our products to market in a timely way, we depend on the efficiency of the transportation system. We know that customers around the world are waiting anxiously for their products, and if they cannot find a reliable supplier, then they are going to go elsewhere.

The Canadian transportation system has a number of different important links along the way, and Bill C-49 addresses a few of them. Specifically, it deals with certain measures in the rail sector, air sector, and the marine sector, which has been the subject of little debate thus far, but it really does enhance efficiency of getting products to market or improve the experience of Canadian or international travel for Canadian travellers.

I will start first with the rail transportation in Bill C-49.

The importance of the rail sector in Canada cannot be overstated. Of course, before Confederation, north-south trade was of extraordinary importance, but as I mentioned at the outset of my remarks, getting products to global markets is becoming increasingly important. Of course, the rail corridor from east to west is of extraordinary importance as well.

The key part of the measures dealing with rail transport really has to do with the concept of long-haul interswitching. When I looked at the rules we had embedded in law before Bill C-49, they were not sufficient to deal with getting products from different industries and different regions to market in Canada. What we did have, and we heard this in a number of questions from members opposite, was Bill C-30, which dealt with the transportation of western Canadian grain to market.

Bill C-30 came in 2013, when there was a unique set of circumstances. We dealt with one of the worst winters in modern memory, and at the same time dealt with an unimaginable grain overproduction at the time, which really put our producers and shippers in a bind. If something were not done to get the product to market in a timely way, the economic output would have been significantly lessened. To the credit of the government at the time, it took some action to deal with that and implemented a system that simulated competition where there was none.

In Canada, it does not take long to realize that when we are dealing with rail transport, we are dealing with many captive shippers. There is essentially a duopoly in Canada with two major class I railways. However, for many shippers, there is only one option. If one is living in the northern prairie provinces, one does not always have access to competition, which can drive rates up. Therefore, measures in the previous legislation stated that within 160 kilometres of an interchange point, one would be allowed to essentially treat the monopoly holder as though it were competing, and one could create a bargaining circumstance around the table when there was none. It was not used all that frequently, but we did hear testimony from witnesses that it had made a difference at the time.

However, there is a key problem with that short-term fix, which was needed at the time. It did not consider that the Canadian economy depends on more than western Canadian grain. Bill C-30 did some good things for that industry in that region, but it did nothing for forestry or mining, and it did nothing for provinces such as Ontario and Quebec. Of course, the province I am from, Nova Scotia, does not necessarily have the same problem, with not having the class I railways present.

My point is that long-haul interswitching has come in to solve this problem because it provides opportunities for captive shippers who might not be within 160 kilometres of an interchange who might be in the industry of producing natural resources outside of grain in western Canada. This would provide an opportunity to simulate a competition around the table for so many different producers and this is a very important thing.

In addition to this significant change in the way that products can be transported on Canadian railways, we see a number of measures that were implemented in Bill C-49 to recognize that shippers sometimes have a tough time getting their products to market. We see reciprocal penalties. Previously, there was no remedy necessarily for a shipper whose service obligations were not being met by the railway. In this instance, we can imagine the brand recognition that it does and the cost of having goods waiting to get to market and having no way to transport them. Now the penalty is cut both ways and it encourages everyone to meet his or her obligations to ensure that goods get to market.

We also see a definition of adequate and suitable service. We are seeing enhanced data disclosure. We are seeing that the maximum revenue entitlement has been retained. We are seeing efficiencies embedded into the arbitration process, which creates the equivalent of a small claims process for disputes of less than $2 million. We are seeing agency authority to regulate service-level agreements going forward.

Quite a big focus of our testimony over the course of our committee study on this issue went to the rail sector. However, I do not want to ignore the other important sectors that really do make a difference in the communities that I represent as well.

When we look at marine transport, some of the nonsensical features that we had embedded into Canadian law previously included that international shippers did not have the ability to move empty containers within the Canadian ports system. This might put people who are shipping from Europe to a port in Montreal, for example, in a place where they are not able to take that container from Montreal and move it to the port of Halifax to help local exporters in the province I represent get their products to Europe. When we put it to them to say, “Is this a big Canadian industry right now? Are we going to be interfering with local jobs?”, we heard that in fact this is not being done right now. However, to protect the economic interests of Canadian workers, Bill C-49 would only allow this kind of practice to go forward on a non-revenue basis. Essentially, if I am a European shipper, for example, and I want to move my own empty containers between Canadian ports to make the transportation system for Canadian exporters more efficient, I would be able to do that under Bill C-49.

Of course, one of the key parts of Bill C-49 was the air passenger bill of rights. There are a number of substantive rights that were built into the framework, although a lot more of the details and specifics are going to be embedded in regulation that follows. One of the reasons that this has gotten a bit of uptake in the media is that so many of us, when we see those viral videos of passengers being hauled off planes, become frustrated because we have experienced the ordinary frustrations of air travel ourselves. I have personally experienced having my luggage be damaged and come off one size-16 shoe at a time on the carousel. We know what it is like to see that someone is going to be charged more to sit next to his or her infant. When people are travelling with a musical instrument, if it is not handled properly there can be severe damage and that damages some musicians' livelihoods. A number of these problems are being addressed in Bill C-49 and we are going to require that airlines make it known to the public how they can seek recourse when an airline falls below the standard expected for travellers who paid for quality service on their flight.

In addition, there is a key part of air travel that I wanted to hit on as well. We have changed the foreign ownership limits from 25% to 49%. This is going to encourage more investment by international companies in the Canadian air sector and potentially drive the cost of air travel down. We have already seen two discount airlines, when they qualified for this kind of an exemption under the previous rules, announce that they were going to be making investments in Canada to service secondary markets and offer cheaper service.

To wrap up in the little time that I have left, Bill C-49 is the foundation of the minister's strategy to enhance the efficiency of the Canadian transportation sector. It would see products move in different industries in different regions of our country to get to global markets more effectively. It would protect the rights of passengers who are travelling in the air sector. It would, important from my perspective, make shipping a more efficient part of the international transportation system. It would help exporters in places like Nova Scotia get their goods to market in a cost-effective and efficient way. This is a good bill and I hope the entire House supports it.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, the ideology of the long haul is one thing, and I would not be against that, but the number of exclusions in this bill are such that no one can take advantage of them. It used to be, under a previous bill of the Conservative government, that the concerns of western grain farmers were addressed; I believe it was Bill C-30 at the time. That was allowed to sunset by the current government. Then, inadequate measures are put in this bill that are vague and, as I said, include so many exclusions that people cannot take advantage of them. The execution was not acceptable.

[Sean Fraser, Liberal, Central Nova, NS]

Mr. Speaker, one of the themes I keep trying to hit on, being from the eastern part of our country, is that Bill C-49 has changed the rules around transportation on freight rail in a fairly dramatic way. Under a different iteration of legislation that dealt with the transportation on freight, Bill C-30 previously, it dealt only with the ability for shippers of western Canadian grain to move product up to 160 kilometres That was in response to some unique circumstances that arose in 2013. One of the things we see in Bill C-49, by contrast, is a shift towards long-haul interswitching. This would see the ability of shippers in different industries in different parts of the country take advantage of a new regime that stimulates competition around the negotiating table and gives a remedy to captive shippers to make sure they can get a market price.

Does the hon. member support the expansion toward long-haul interswitching, which serves different provinces and different industries, including Ontario?

Motions in amendment

[Sean Fraser, Liberal, Central Nova, NS]

Mr. Speaker, I have had the pleasure of sitting on the committee during the hearings on Bill C-49 and enjoyed the company of the hon. member for Bow River.

I took some of the member's comments to suggest that perhaps the bill would not go far enough to protect the interests of shippers. I cannot help but point out that the bill includes a number of pro-shipper measures, such as reciprocal penalties, adequacy of service, protecting the maximum revenue entitlement, enhancing data disclosure, improving the arbitration process, and a number of other things.

The member raised the measures included in Bill C-30, suggesting that they were preferred, according to the witnesses he heard. When I listened to the witnesses over the course of the entire study, many of them suggested that having remedies only for one industry and only for one region of the country was not the best approach and that the long-haul interswitching would open up a more efficient transportation system across sectors and across geography. Does the member support measures that would extend this improved service to new parts of the country and to different sectors?

Transportation Modernization Act

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, it is my privilege to rise today to speak to Bill C-49, the so-called transportation modernization act.

Before I go any further, I would like to say that I will be sharing my time with the member for Saskatoon—University. I look forward to his presentation on this as well. He comes from a neighbouring province to the west, and he also has a great knowledge of what is required in this field.

It is a privilege to put on the record again, as I had the opportunity to do with our opposition day motion on Monday this week, how important the movement of grain is to western Canadian farmers, as my colleague just said. However, it is not just important to the farmers but to the whole industry and economy of western Canada, which affects us all. We are one of the largest exporters of grain in the world with regard to the percentage that we grow.

I think the changes that have come forward in the bill would be somewhat detrimental, although there are a few that will work very well on the grain side.

Bill C-30 was brought in by my colleagues when we were in government due to the conditions that took place in the Prairies in the winter-fall of 2013 and the spring of 2014. I will never forget that because that is when I was elected as a member. Having farmed in western Canada all my life prior to getting into politics, I certainly know the importance of making sure that we have a reliable system of moving grain and exporting it, not just for the farm community but for the logistics of the rail companies and the port authorities and facilities on the west coast, east coast, and in Thunder Bay. At that time, there was also some grain movement through the Port of Churchill.

Before I get into too much of that, I would like to say that what we need to do in the Prairies with regard to the evolution of the transportation system, as we move forward, is to make sure that we look at processing more of these grains on the Prairies than we have in the past. I was in the room with the minister from Regina—Wascana, which I believe was his constituency at the time, in 1995, when the Crow benefit changed and was taken away. I lobbied to make sure that happened. I did that because my farm was located halfway between Vancouver and Montreal at the time, and we would have been faced with the highest freight rates on the Prairies, right in my kitchen.

We did that so that our future family members, our children, in western Canada would have a job locally by processing more of that grain. That is one of the key reasons for a lot of the lobbying that went on in those days to make changes not just to the rail system but to the way grain was marketed. My colleagues in the House have also brought forward the opportunity to allow farmers to sell their own grain and do their own marketing, which is key to the future development of more processing plants and those types of facilities in the Prairies.

The processing of grain is an example of how important this can be. We have rail lines that begin in Winnipeg and pretty well run parallel out to Portage la Prairie, and then branch off to Calgary and Edmonton through the west. That is why the interswitching that my colleague has brought in, and extending it from 30 kilometres to 160 kilometres, was a great advantage for farmers and competitive rates in the Prairies. It did not only work for them but also for the grain companies. It gave them the ability to have a bit more competition.

The types of things that we gained from the 160-kilometre range of interswitching would be taken away in this new bill, Bill C-49, which I think is a detriment to the longevity of the competitiveness we could have. One example is that we can only do it at a point where that interswitching is available. If one's grain is in northern Alberta or the Peace River areas of northern B.C., the first point of interswitching is Kamloops.

Of course, then one cannot really have much competition for all of that grain in northern Alberta and the Peace River area, if one cannot get access to a competitive rate until it gets to Kamloops. I worked there in the early seventies. I know the city well. It is a great place. I know my colleague from Kamloops agrees with me. This would not allow the type of rate competitiveness that we could have seen in the Prairies.

Bill C-30 also mandated the rail companies to carry half a million tonnes each of grain per week to catch up on some of the backlog that was there at that time. This bill just allows them to continue to talk. It does not mandate a level of grain shipments. That was for a period of time until that backlog got taken care of, which happened later on that summer. We hope we do not see those kinds of conditions, but we do have cold weather on a regular basis in western Canada in wintertime and there was a lot more at stake than just the cold weather in forcing that grain back on to the Prairie farms at that time.

There may be some opportunities here. We cannot haul all of the grain in the Prairies by truck. It has to get onto a rail system at some point. Now that there are more opportunities for farmers to move their own grain, I have young farmers coming to me every day talking about the movement of their grain north-south by truck. Some of that is entering into the United States.

We also purchase a lot of grain in feed form, and that sort of thing, from the U.S., and we need to look at continuing to expand our processing. We need to make sure we continue to have that mechanism to move the grain and also to import from the United States.

We also need to make sure that we are continuing to process even more of the product we have on the Prairies. That is being done in many places in Saskatchewan and Alberta. Some of it is being done with the expansion of our livestock industries, because they consume an awful lot of feed grains in western Canada, which then gets moved in another form. Most of it ends up being slaughtered in some of the largest processing plants in the world in Alberta, in Brooks and High River. We know there is an opportunity there to continue to move that product.

It is being done in Manitoba with the largest pea processing plant in the world, coming to Portage la Prairie. It is a $400-million investment by a French company. The Manitoba government is putting very little infrastructure money into this, other than connecting the hydro lines and natural gas.

These are the kinds of investments we need. I know Bill C-49 will not be as good as Bill C-30 was, as far as that goes. It also speaks to other areas though, such as the air industry and marine industry as well. We need to make sure that while there are changes taking place, they are not detrimental to the future of those industries as well, because we do rely quite heavily on our export ports, particularly on the marine side, to be able to export and move this grain.

Bill C-49 eliminates some of the things that were good parts of Bill C-30, particularly in regard to ordering the railways to compensate any person for expenses caused by the railway's failure to fulfill service obligations.

I will end there and see if anyone has questions before my colleague, the member for Saskatoon—University, takes over.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I am pleased to rise and add my remarks to the debate on Bill C-49.

Before I begin, I would like to take a second to acknowledge a very poignant moment today in the House. I was here when the Clerk, Marc Bosc, arrived for his last shift here in the House of Commons as Acting Clerk of the House, as we have heard from a number of sources.

Mr. Bosc was the person who welcomed the members who had been newly elected in 2015 to the House. It was a very emotional time for us. To us, Mr. Bosc is the Clerk of the House, because he is the only one we have ever known. Mr. Bosc has always been there for us and has always shown the utmost professionalism. He was respected by all, at least by everyone on this side of the House. Mr. Bosc has always served with enormous professionalism, and we have always respected him.

For me, Mr. Speaker, it was a very poignant moment to see him enter the chamber this morning and take his place before us, to begin his final sitting day in the House of Commons. I trust that Mr. Bosc will always hold a place of honour here in Parliament.

In closing, we found out about this rather suddenly. I would have liked the opposition parties to be consulted more on the process to replace the Clerk. No offence to the incoming Clerk, but I just wanted to take a few moments on behalf of my colleagues, myself, and my family, who shared in all the emotion that we experience when we first arrive here, to acknowledge Mr. Bosc's excellent work.

Mr. Bosc has been here much longer than I have, but like me, he has seen his share of governments and their different approaches to ensuring that their bills get passed.

Bill C-49 is another example of the government using closure to prevent giving the opposition opportunities to speak to this bill or criticize it. By the minister's own admission, this bill is quite complex, and it will make significant changes to Canada's transportation industry. Even so, we will have just a few of hours of debate to discuss it and raise what I think are some very important points.

Why is this especially troubling in the case of Bill C-49? It is because this bill does not amend just one or two sections or one or two acts. It amends 13 pieces of legislation.

For the past two days, I have been listening to the arguments given by the Minister of Transport who says that the opposition is overreacting, since 80% of the changes proposed in Bill C-49 will amend just one law, and therefore the opposition has no reason to protest so loudly. What? How is that an argument? It is as though one section of an act were more important than another. If the 20% of Bill C-49's clauses that amend 12 other laws are not all that important, why bother including them? Why are we talking about them? If they are not that important, if everything is focused on just one law and the opposition is outraged, why keep the other 20% of the amendments? Why not remove them and create another bill with those amendments and consider it separately? It does not matter, because everything is in the same bill.

Clearly, this argument simply does not hold water. It is particularly troubling. As members know, I have been a member of the Standing Committee on Transport, Infrastructure and Communities since I arrived in this place. Obviously, transportation affects all Canadians in every field. Transportation has an impact on the daily lives of all Canadians, whether we are talking about the transportation of goods or people.

They say this is a complex bill, that they will not give the opposition much time to talk, and that, since 80% of it is specific to one act, there is no need for us to protest so loudly. I think the minister should go back to the drawing board, take another look at what is in his bill, and think carefully about the repercussions that each amendment in Bill C-49 will have on the day-to-day lives of all Canadians.

Here is the lowdown on Bill C-49. The Liberals' omnibus transportation bill will establish a new air passenger rights regime; liberalize international ownership restrictions for Canadian air carriers; enable the Minister of Transport to consider and approve joint ventures by two or more airlines; update the Canadian freight system; require railways to install audio-video recorders in locomotives; expand the Governor in Council's powers to require major railway companies to provide rate, service, and performance data; and amend the Canada Marine Act to allow port authorities to access Canada infrastructure bank loans.

However, there is nothing there. According to the Minister of Transport, a few hours of discussion are enough to address all of these issues, since he did not think that the opposition had anything relevant to say during the first hours of this debate. Why would the government want to continue listening to opposition members provide supposedly irrelevant information when it can simply expedite the process by muzzling them? At least, that is what the minister seems to think.

Since when are opinions that differ from the government's irrelevant? The big problem with the Liberals is that, when we do not agree with them, on this or any other issue, they feel threatened and under attack. They think that anyone who does not share their opinion and does not think like they do is irrelevant, and so they have no reason to take any interest in what those people have to say in the House. That explains a lot.

It explains a lot, such as Motion No. 6 and the many time allocation motions that have been imposed on us since the beginning of this session. It explains the infamous discussion document that the Leader of the Government in the House of Commons tabled to supposedly improve the way the House operates. When we read that document carefully, we learned that the Liberals' intention was once again to avoid hearing what the opposition parties had to say.

It is not complicated. When things do not sit well with the government, it decides to muzzle dissenting voices that cast grey clouds over Liberal sunny ways. Well, I have news for the Liberal government. The official opposition and all the other opposition parties, I am sure, have no intention of staying quiet. We have no intention of letting changes slip through. We have no intention of completely agreeing with everything the Liberals put in front of us. We have no intention of being the people who enable the Liberal Party to push through their entire election platform. That is not our role here. Our role is to present criticisms.

As an aside, let us talk about the Liberal platform. It did not take long for the Liberals to realize that much of what they wanted to do is simply impossible. They promised big spending and small deficits. They kept only one of those promises. They are spending big, but they have come to realize that this requires huge deficits. That is something the government does not want the opposition to criticize. They would like us to keep quiet and just watch them and applaud them because they really like applause. That is not what we are going to do. That is not our role.

Let us come back to Bill C-49 because it seems like we are off topic, that we just keep providing an overview, and that we keep talking about everything but Bill C-49. Let us talk about Bill C-49 and what it amends. As I was saying, it significantly amends 13 different laws and has repercussions on three modes of transportation. This legislative measure will weaken legislative protections for shippers and western Canadian farmers.

We want to concentrate on proactive measures to make travel less expensive and more convenient for all travellers. This would include abolishing the carbon tax, instead of the Liberals’ plan to establish reactive compensation that will benefit only a small segment of the population.

This bill provides very little detail about the proposed air passengers’ bill of rights, and it does not have the support, in its current form, of many passengers’ rights advocates. Also, port authorities and their wholly owned subsidiaries will have access to loans and loan guarantees from the Canada infrastructure bank. There is an inconsistency here. That does not make any sense to me, since this bank does not exist yet. It remains a proposal for now, and it is held up in another house, for very good reasons.

Like us, the senators think that the infrastructure bank warrants its own bill, given the impact it will have and the $15 billion that the government intends to provide to it. That is $15 billion from Canadian taxpayers to be given to a board of directions to manage on our behalf without any accountability to Parliament.

These points alone justify our opposition to the passage of Bill C-44, which is currently being studied on the other side in its current form and includes all these budget measures as well as creating the infrastructure bank. I hope that people will get the message.

In Bill C-49, they already assume the outcome. Port authorities are being given approval to access loans from the non-existent infrastructure bank. What I do not understand is that the government, ever since it began telling us about the infrastructure bank, keeps saying that it will be an independent bank. As an aside, the process to find the president for this non-existent bank has already started.

Therefore, the infrastructure bank, which does not exist, will be made up of a so-called independent board of directors who will manage the money given to them by the Liberal government. At the same time, these supposedly independents will be told that they have to invest $1.3 billion in Montreal’s Réseau électrique métropolitain and provide loans to port authorities. To sum up, here is an independent infrastructure bank that will not be independent and does not yet exist. However, we are being asked to approve a clause of the bill that will allow port authorities to secure loans from this infrastructure bank that will be created in the near future.

It is clear that something is not working, that they are improvising, and that the minister wants to move quickly. We do not understand why he insists on moving so quickly. Some will tell us that it is because they want to settle the matter of Bill C-30 before it expires on July 31 in order to protect western grain producers in their rate negotiations with the railways. That could be the case, but that is not what is going to happen, since even if Bill C-49 is rushed through today or Monday and is referred to committee, the committee meetings are scheduled for September.

The committee was prepared to meet in July if the government agreed to hive off all the measures concerning Bill C-30. That would have allowed us to study them quickly in order to avoid having a legal vacuum for western grain producers. These meetings could have been held before August 1. The committee was prepared to meet in the middle of summer, during vacation—at least, the opposition members of the committee were. That would have been a major sacrifice for some of us to show up and study a bill to help western grain producers.

Why was the official opposition prepared to do that? Because we get that this is important. Right now, grain producers are concerned about what is going to happen this fall if there is a legal vacuum. We do not know exactly how the market will react. These people are negotiating right now.

We see another problem here. I myself am not a grain producer. However, several of my House of Commons colleagues represent western Canadian ridings, and they know a lot about grain production. From what I understand, grain producers usually harvest their crops in the fall. What time of year is busiest for grain producers? The fall, when they are bringing in the harvest.

The government is going to ask grain producers to testify on Bill C-49, which will have a major impact on their future, in the fall. The government is going to ask them to leave their machinery and their fields so they can come testify in Ottawa in September. That is when they should be in their fields doing their work, doing what we support them doing, and making their contribution to Canada's economy by producing and working. This makes no sense.

That is why the opposition was prepared to agree to move quickly on that part of the bill. We were prepared to let many things slide in order to move quickly. Why? Canada's grain producers are far more important to us than adding another number to our legislative record. The farmers need us to come to Ottawa to protect them, stand up for them, and help them succeed. That is our role.

If we are not taking extraordinary measures to get Bill C-30 passed before the deadline, then there is no urgency to justify speeding up the process and muzzling the opposition. The government probably does not want to let the opposition speak because it does not want to hear arguments like mine in defence of western grain producers.

I want to talk about another initiative that was very well received by the public, I admit. This was the main point in the message from the Minister of Transport. Indeed, he wants to create an air passengers' bill of rights. This is urgent. Like all of us, all Canadians who have flown over the past few months have seen the coverage of some of the dramatic incidents that have taken place in the U.S. Since the bill announced the creation of an air passengers' bill of rights, we thought we would get some information. We thought we might be told what to expect, but no, all the minister did was mandate the Canadian Transportation Agency to begin consultations that will eventually lead to regulations and, at some point, the air passengers' bill of rights.

Do we really need a bill to ask the Canadian Transportation Agency to begin consultations on a bill of rights? It makes no sense. There is no need for urgency when it comes to Bill C-49, apart from the legislation protecting western Canadian grain farmers; on that, we agree.

We believe that the only way to go and the only explanation or justification to make this measure acceptable, to make this gag order acceptable, would have been to split the bill and immediately pass the measures in Bill C-30, in order to make certain temporary measures permanent. We were ready to go ahead with that, but everything else could have waited; there is no need to panic. The only emergency here for this government is to silence the opposition. The government is not ready. It is improvising and presenting measures that just do not make sense.

For all these reasons, and despite a few good measures in the bill, the official opposition cannot support Bill C-49.

Bill C-49—Time Allocation Motion

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Madam Speaker, I would like to clarify for the member what has been done in the act. It is a complex act.

The extended interswitching of 160 kilometres was a temporary measure that was put into the Fair Rail for Grain Farmers Act. It was a temporary measure that was put in place because of the exceptional circumstances in 2013 and 2014. It has been replaced by something that is more comprehensive, called long-haul interswitching. It does apply to grain out to 1,200 kilometres, not 160 kilometres, but it also applies across the country and to all commodities.

This is the approach we have taken to fix something that has needed to be fixed for a long time. I will point out that after bringing in Bill C-30 in 2013-2014, the government had a golden opportunity to modernize freight rail legislation. Why did it not do it?

Opposition Motion—Canadian Economy

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I am pleased to rise this evening to contribute to this debate on the complete failure of the Liberals on this economic file.

For a government that would have us believe it is all about the middle class, as it is wont to add that at the end of every statement it makes, for example, more ethical government for the middle class, a Liberal commissioner of official languages for the middle class, new standing orders for the middle class, better innovation for the middle class, and a carbon tax for the middle class, it is remarkable just how out of touch Liberals are on the most important issues facing the middle class: jobs, the economy, and affordability.

On housing, for example, as the price of homes rose significantly faster than inflation in Toronto and Vancouver, the Liberals decided to implement a one-size-fits-all mortgage policy designed to cool down the housing markets of Toronto and Vancouver. Unfortunately, this policy is having a similar impact across the country, regardless of whether Canadians live in Warman, Saskatchewan or Queen West, Toronto.

Before the Liberals made these changes to the mortgage rules, a person with $50,000 pre-tax income could qualify for a $277,000 mortgage. Now, that same person qualifies for a mortgage of $222,000. This change makes buying a first house more difficult for many. Several people looking to buy their first home, and realtors, have raised concerns about this policy with me. However, these changes have not had the attention they deserve, considering the disproportionate impact they are having on first-time homeowners in smaller communities where housing prices are typically more affordable.

The Liberals are also tone deaf when it comes to western Canada. On May 12, the Minister of Transport introduced the oil tanker moratorium act, a bill that his own political staff conceded would only impact the future development of Canada's oil sands, and no other activity in northern British Columbia. Let us think about that.

It was not enough for the Liberals to reverse the independent National Energy Board's 2014 decision to approve the northern gateway pipeline subject to Enbridge fulfilling 209 conditions. They decided to go one step further by opting to handcuff future governments should they want to diversify Canada's energy exports. Bill C-48, the oil tanker moratorium act, will do nothing to enhance marine safety in British Columbia. U .S tankers will continue travelling up and down the coast between Alaska and Washington state.

This is the epitome of political irony. Venezuelan oil in Quebec is okay. Saudi Arabian oil on the east coast is okay. Canadian oil in Vancouver is okay. Alaskan oil in northern B.C. is okay. However, Canadian oil in northern British Columbia is not okay. Blocking tidewater access for western Canadian energy producers was not enough. To add insult to injury, this year's federal budget removed incentives for small companies to engage in energy exploration in Canada.

Furthermore, the new carbon tax will disproportionately impact energy-producing provinces. What the Liberals fail to realize is that Canada does not have a monopoly on the production of energy. In North America alone, western Canadian producers are competing against companies operating in the Gulf of Mexico, Alaska, the Permian Basin, and the Bakken formation. As the U.S. is making important efforts to reduce obstacles to energy development, Canada is going the other way.

Capital and expertise in this sector is very mobile, and Canada is in very real danger of being left behind. Canadian firms and foreign investors will not invest in the Canadian economy if the overall cost of doing business vis-à-vis our American counterparts is higher, as has been mentioned. However, the energy sector is not the only sector being targeted. Western Canadian shippers, and especially captive western Canadian grain shippers, are feeling particularly ignored by the Liberal government.

Unlike Ontario and Quebec, where many products can be trucked to their final destination or to a port for overseas export, western Canada is particularly reliant on rail to get product to market. That is why the Minister of Transport's inaction on critical and time-sensitive rail transport issues is leading to uncertainty for both shippers and railroads. Both need it as they negotiate shipping rates for the season and invest in the required infrastructure to keep products moving to market in a timely manner.

That is why, over the past several months, I have asked many times whether the government intended to renew or build on the sunsetting measures of Bill C-30 before they expired on August 1, 2017. The response, time and time again, was that the government recognized the urgency to get this done and that legislation was forthcoming. Unfortunately the Liberals now acknowledge that the key measures in Bill C-30 will sunset before any replacement legislation can receive royal assent and become law.

Since the transportation modernization act was introduced on May 16, the government has set aside less than two and a half hours to debate it, with the Minister of Transport taking the floor to lead off debate at 9:45 p.m. on a Monday night. This means there will be at least a two and a half month gap from when Bill C-30 measures sunset and Bill C-49 receives royal assent.

By the time this legislation has passed, the majority of contracts for the year will have been negotiated with the law in flux. Because of the government's mismanagement of its legislative agenda, these popular measures will sunset without any replacement, and shippers will be the worse off. What is worse is that while this two and a half month gap will negatively impact both railways and shippers this year, the replacement legislation will weaken shipper protections from what they are today. While something is better than nothing, the transportation modernization act is not a replacement for the Fair Rail for Grain Farmers Act.

What the government is proposing in its omnibus transportation legislation is to take a little used existing remedy called a competitive line rate and rename it long haul inter-switching.

Under a competitive line rate, a shipper could apply to the agency to set the competitive line rate, the designation of the continuous route, the designation of the nearest interchange, and the manner in which the local carrier shall fulfill its service obligations. We know from history that this remedy was infrequently used because of the prerequisite that the shipper must first reach an agreement with the connecting carrier and the two main carriers effectively declined to compete with one another through CLRs. While the requirement that the shipper must have an agreement with a connecting carrier prior to requesting a CLR has been removed, the greater issue is whether the terms imposed by the connecting carrier will be acceptable to the shipper.

While railways do have a common carrier obligations, we know there are ways to avoid doing a haul. For example, both railways have set the price of hauling uranium so high that it is no longer economical for it to be shipped by rail. Furthermore, while long haul inter-switching will be extended to 1,200 kilometres or 50% of the total haul distance, the first inter-switch location from any captive shippers in north Alberta and northern B.C. will be located within the Kamloops-Vancouver corridor, where inter-switching is not allowed beyond 30 kilometres. Therefore, these captive shippers will not be able to utilize this remedy to increase railway competition.

By borrowing and spending in good times, the Liberals have made it harder to deal with real crisis. According to the PBO, even a minor recession would cause deficits to be as large as during the great recession, and that is before considering the fiscal costs of any response.

The Liberals have mismanaged Canada's finances and have closed many doors for economic development. Unfortunately, the full effects of their policies have not reverberated across the entire economy yet.

The choices the Liberals have made to date are not random. They are the result of an overarching vision of picking winners and losers. Right now, my province is coming out on the wrong side of nearly every Liberal policy decision.

For a government that professes to be focused on the middle class, first-time homebuyers, farmers, shippers, and energy workers are all feeling left out in the cold.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, I am pleased to rise today to speak to the opposition day motion brought in by my colleague, the member for Selkirk—Interlake—Eastman, which indicates that the government has been very ineffective with respect to the care and due diligence of this nation.

In particular, I want to say that damaging Canadian industries and diminishing Canadian economic stability, as he has pointed out in his motion, are certainly things that we care about every day in the House. We hear it from our constituents when we get back to our constituencies on weekends and during constituency weeks. It is certainly a situation that I have heard about quite regularly from my constituents.

My colleague, the member for Durham, has just pointed out that there is a huge deficit in place in Canada although the Liberals talked about small deficits during the election campaign. They have outgrown that by $30 billion, which is about 30 times what the Liberals said they would have. That is terrible mismanagement. Our future generations are going to have to pay for that every day of their lives as they move forward, not to mention the fact that all of us in this chamber today will share in that burden as well.

There are three major areas of concern that the member has pointed out: the softwood lumber deal, the carbon tax, and in particular, the current rail service agreement with respect to rail transportation in the Prairies.

The member has talked at great length about the softwood lumber deal, so I do not need to say much more. Suffice it to say that thousands of jobs are dependent upon an agreement between Canada and the United States. With the tariff that has been put in place by the United States today, we clearly see that the government did not have an answer when it came up with about $870 million as payment to cover some of the costs that will be borne by our industry. We need to find long-term leadership with respect to this matter. These stopgap measures are not good enough. That is what we are seeing in the other areas too.

The carbon tax that the government has implemented or is forcing upon provinces is certainly something that is going to continue to put people out of jobs. There were 200,000 jobs lost in Alberta alone. There are jobs lost in my constituency. We have a very small oil industry in western Manitoba, most of which is in my constituency. People have been put out of work there as well. We are only seeing some stability back in that area because of the stability in the price of oil right now, as well as an upgrade in the American economy. There has been a bit of a boost there. That is giving us some stability right now in Canada. However, it is very nebulous as to how long that may continue and if it will be on a long-term basis.

The area that I want to speak about today is mainly the current rail service agreements that ensure that our farmers can get their products to market.

In the spring of 2014, through the winter of 2013, our government brought forward Bill C-30, the Fair Rail for Grain Farmers Act, with our transportation minister, at the time, and our agriculture minister. They did an exceptional job of putting a program in place that would allow farmers some protection with respect to the movement of grain. There were extenuating circumstances, for sure, that winter. At that period of time, we had some of the coldest weather we have ever had. However, we are used to that in Canada, particularly in western Canada, so that is not an excuse with respect to being able to get grain to port on time.

There were three or four areas that were very important in that whole venue with that act. One of them was allowing interswitching to move up from a 30-kilometre basis to 160 kilometres, which made it quite effective to have a bit of competition in the industry, which we do not have most times when we have two railroads with, basically, a duopoly with respect to being able to move grain in the Prairies.

Trucks can only move so much grain effectively and we do not have the processing plants to process all of the grain in the Prairies. In fact, at that particular time, about 50% of the grain in Canada was going for export. That is why we desperately need to have that kind of openness and a bit of protection against the movement of other products. We cannot just leave grain, because of the massive volumes of it alone, and because it is basically in a captive area. It has to be grown every year. It has to be moved and marketed, perhaps not all in one year, but it does have to be moved, and it is a perishable product in the long run.

That is why it is so important that we move forward for Canadian families and businesses on the Prairies and in Canada as a whole, because wheat contributes greatly to the gross domestic product of our nation. Millions of jobs in Canada depend on the shipment of grain in the agricultural industry.

The minister has brought forward Bill C-49 but there is great concern as to whether it will have any teeth and whether it will get passed before we rise in the House for the summer. I commend the minister for bringing it forward, but I would encourage him to talk to his colleagues and move forward with it. If the bill does not move forward there is going to be a huge gap in this whole area. Bill C-30 will take over again, and it dies on July 31. That would leave the huge gap I referred to earlier and farmers will go into the coming harvest without any type of rule or regulation in place that will allow for the convenience of knowing the conditions under which grain can be shipped for the coming year.

I referred to interswitching rights earlier. Long-haul interswitching could be utilized. It certainly allowed for competition within that 160-kilometre radius. Interswitching is a tool that we brought in with Bill C-30. It is a much better rule than using competitive line rates, which have been in since the change in the Crow benefit in 1995. Competitive line rates, while sounding good, really were an ineffective way of providing the certainty that farmers and grain companies would have some competition. That is why the grain companies and the farm groups have joined together to lobby the government to put a stronger rate in place, a much stronger and more useable mechanism to use in that area.

A number of groups in Saskatchewan, and a growing chorus of western Canadian groups, have called for an extension of the Fair Rail for Grain Farmers Act that we had in Bill C-30. I am calling on the government today to extend that again. It was extended once by the government but it needs to do it again. That will provide fairness and equity and predictability in regard to the movement of product into the fall.

The government is talking about proroguing the House. If the House is prorogued this summer or early in the fall, the legislation would die on the Order Paper and the government would have to start all over again. This would provide unpredictability in the industry for some extended time down the road. It would be the spring of 2018 at the earliest or the fall of 2018 before we would have any kind of predictable rules to carry on with the movement of grain products in western Canada and to get grain to port in the just-in-time fashion that is required today to meet the markets that we built up so extensively through the 40-some free trade agreements that the Harper government signed with our trading nations. Keeping markets open is one of the best things that a government can do in relation to our agricultural industry.

The government needs to also look at the coordination of the grain grading system between Canada and the United States because there is much grain movement back and forth. A lot of livestock goes back and forth. Having sat on the western standards committee of the Canadian Grain Commission for a number of years as a farm representative, I know how important access to the U.S. is.

There are other things that I would ask the Minister of Transport to do. One of them is to get the Minister of Agriculture on side to move forward with some of these areas as well. He is looking at removing deferred grain tickets, cash tickets, and that would not be helpful to farmers either. The Minister of Agriculture needs to move more quickly in regard to the PED virus in hogs and cleaning trucks in Manitoba.

There were nine cases last month, and there has still been no action on that to make sure we maintain a strong hog industry.

All of that fits into the transportation of product. We are talking about the transportation of grain, but the movement of livestock is part and parcel of the use of grain on the Prairies.

I look forward to any questions.

Rail Transportation

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, a closer look at Bill C-49 reveals that the Liberals are trying to sell shippers a weaker version of the Fair Rail for Grain Farmers Act. Adding insult to injury, the pro-shipper measures contained in Bill C-30 will sunset on August 1. As a result of the minister's delay tactics, farmers will be forced to negotiate next year's contracts without the benefit of a law.

This omnibus bill is too late for western shippers. Will the minister now separate the rail shipping measures for expedited scrutiny?

Transportation Modernization Act

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I hope I can comment sufficiently on the question from the member for Sherbrooke.

Bill C-30 really looked at grain. It was looking at a bumper crop situation and it had to do something. It was really a Band-Aid solution that focused on the grain market.

In the case of today's market and what we propose in Bill C-49, we would also be handling lumber. We are looking at softwood lumber being an issue in the United States. We are looking at new markets in Asia. How do we get lumber to either coast, and a lot of it? Lumber would be something that we would want to address. In the case of mining, resources coming out of the ground, how do we get that efficiently to market? How do we get auto parts to market in southwest Ontario?

It is really more than just a Band-Aid solution for grain. We need a comprehensive solution that is part of an integrated transportation strategy. Bill C-49 addresses that need.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, it is my pleasure to speak today to Bill C-49, which proposes amendments to the Canada Transportation Act to advance the efficiency and competitiveness of our freight rail system. This is especially important to Guelph, which is home to one of Canada's three federally chartered railways.

The Guelph Junction Railway was established in 1886 by a special act of the federal government to foster economic growth in Guelph and in the surrounding communities. The City of Guelph has owned the railway since 1908. The GJR operates 38.6 kilometres of track that runs from Guelph Junction near Campbellville, Ontario, to Guelph's northwest industrial park. It is a strategic line that runs between the Canadian Pacific Railway and the Canadian National Railway.

Canadian exporters today have the advantage of the lowest freight rates in the world, even lower than in the United States, and a track record of significant investment by the railways that is essential for keeping these rates low in the future. However, even the strongest system has room for improvement, and we have heard concerns from both shippers and railways through our consultation process. We have heard in particular about system bottlenecks and other constraints that slow the movement of our goods. We have heard about delays in shipping that can affect our nation's reputation for reliability, and about regulations that dampen investment in the network to everyone's detriment.

Canada's rail system is the backbone of our export trade. It moves our goods to destinations across the country, to the United States, and for export overseas. The conditions we establish now, in 2017, will be essential for our nation's long-term growth and prosperity.

Following extensive consultations, our government is proposing new measures that would lay the groundwork for future success.

The bill would promote greater efficiency and investment in the system for the benefit of all Canadians. First, the bill proposes a new competitive access tool for shippers that would allow them to obtain better options for service and rates. This new tool, long-haul interswitching, would allow a shipper served by only one railway to access a competing railway at a rate and on service terms set by the Canadian Transportation Agency. Long-haul interswitching has been designed to meet the needs of captive shippers across a wide range of sectors: grain, forestry, and mining just to name a few. It would apply at a distance of 1,200 kilometres or more to ensure that some of our most remote shippers could benefit.

By providing competition between railways, this measure would improve system efficiency in moving goods to market, and at the same time, railways would be fairly compensated for their services and for the cost of maintaining infrastructure. The agency would set the rates under this measure based on comparable traffic. This would help prevent the risk that railways might unde-invest or even close their lines due to lack of revenue.

As a part of this, we would allow extended interswitching in the prairie provinces to sunset as planned on August 1. Many members will recall that this measure was adopted in 2014 under the Fair Rail for Grain Farmers Act in response to the unique challenges in the grain handling and transportation system at that time and in that season.

Most challenges no longer exist, and extended interswitching is problematic in many respects. It only applies up to 160 kilometres and only in the prairie provinces. It does not cover other shippers in Canada who have told us about railway service issues. Its rates are far too low to compensate railways for moving the traffic, which would erode investment over time. A key beneficiary of this measure is not the shipper community but the American railway, the railway that scoops traffic away from Canadian railways but makes comparatively little investment in the Canadian network.

Long-haul interswitching is a far better tool as it would apply across sectors and across regions of Canada.

The grain sector would be far better off, as all captive grain shippers would have access to this competitive tool, not just those falling within a specific zone. The railways would be compensated appropriately to ensure that the system runs smoothly and grain moves to market effectively. The proposed new measure is also being carefully structured to minimize the risk of American railways unfairly taking traffic.

Many members will recall that the Fair Rail for Grain Farmers Act also imposed minimum volumes of grain to be moved by the railways. In our consultations, we have heard that this had negative effects. It benefited specific shippers to the detriment of others. It was good for the large companies, but not for the farmers. More importantly, the unique challenges of 2014, and that growing season, no longer exist. For these reasons, the volume requirements would be allowed to sunset as planned on August 1.

Our government recognizes the importance of moving grain and other commodities efficiently to market. Greater transparency on how well the system is working is obviously critical to efficiency. That is why Bill C-49 would require railways to report publicly every year on their plans to move grain and to manage weather-related disruptions. They would also need to report service and performance metrics that help them measure how the system is doing. The agency would have clear new authorities to hold an inquiry into any emerging issue at the minister's request. These measures would help all parties to keep track of emerging problems and work together to find solutions before the crisis point hits.

Importantly, this bill would provide shippers with the ability to maintain reciprocal financial penalties in service agreements. Applying penalties for service failures would encourage the most efficient service possible. Our rail system can only flourish within the right regulatory framework. To promote system efficiency, the bill would also modernize the Canada Transportation Act. For example, it would update the insolvency regime for railways, which dates back to 1903 and cannot address the complexity of modern business arrangements.

The railway industry must invest significantly in the network to keep it running safely and smoothly. That is why this bill also proposes measures to promote continued investment. For example, it would loosen shareholder restrictions on CN Railway that have been in place since it was privatized in 1995.

Bill C-49 would also fix problems with the maximum revenue entitlement, which caps the revenue per tonne that CN, CP, and Guelph Junction can earn for moving western grain. I just threw in Guelph Junction. It would fairly credit their investments in the network, and encourage them to obtain new modern hopper cars. It would also promote the movement of grain by containers, which is an innovative way to provide service and extra capacity at peak periods when the system is full. Again, this would apply across all regions of Canada, including Guelph.

Together, these amendments would achieve the goals of a competitive, efficient freight rail system, a system in which commercial forces drive efficiency but legislative backstops are in place to ensure that the system is fair, balanced, and transparent, a system in which the conditions are right for low rates, future investment, and future success.

I urge colleagues to adopt Bill C-49 as quickly as possible so that we can serve our farm community.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, I know this is something that is very near and dear to the member's heart.

Coming from Alberta, knowing that the Fair Rail for Grain Farmers Act was actually addressing issues that grain farmers in the Prairies were experiencing, I can tell members that what we have been hearing from stakeholders, as they have begun to review the legislation and as they have begun to take these two pieces of legislation and compare them, is that they are confused. They do not understand exactly what the changes are meant to accomplish. They believe that the devil is in the details.

While they continue to look at this, they continue to highlight the fact that these measures in Bill C-30 are sunsetting on August 1. There will be a gap. That is why we asked the committee to consider calling upon the minister and the government House leader to break out at least the measures in Bill C-49 that would address the measures in Bill C-30 so that we could at least address the concerns of our shippers and our producers as they are bumping up against that August 1 deadline.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, on the contrary, I think I pointed out at the beginning of my speech that what we have in front of us is an omnibus bill. We actually tried, in committee, to encourage the members to consider breaking out the different modes of transportation so that we could actually study them more effectively, and in fact, expedite those measures that are in Bill C-49, which were meant to replace the measures that were in Bill C-30.

My answer is absolutely not. However, I think that we could have taken a more systematic approach and not had all of these measures included in an omnibus bill, which is probably not going to get the due consideration it needs.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, I want to thank my hon. colleague for her question and for the work she did while she was on the transportation committee. I believe she was the member who was pushing for the committee to set in place a timeline for us to conduct the review of Bill C-30 to ensure that we were not bumping up against the deadline that we now seem to be bumping up against.

Definitely, rail safety was one of the first studies we undertook, when we were first elected, as part of our first session.

What is really interesting is that there have been a number of studies and very little action on the studies the committee has undertaken. As the member noted, the minister has stood up many times saying that rail safety is his number one priority. I find it somewhat curious that the ink was barely dry on the government's announcement that it would begin the review of the Railway Safety Act when it included a measure like the LVVR measure in this act, when it was about to launch a review of the Railway Safety Act. I do not know if this is by design or default, but it seems a somewhat incoherent approach to all matters in the transportation file.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Speaker, I am pleased to rise this evening to debate Bill C-49, the transportation modernization act, at second reading.

The bill could simply be renamed the transportation omnibus act for the number of different bills being amended, with many of changes being more than just technical in nature. The Air Canada Public Participation Act, the Canada Transportation Act, the CN Commercialization Act, the Railway Safety Act, the Canadian Transportation Accident Investigation and Safety Board Act, the Canadian Air Transport Security Authority Act, the Coasting Trade Act, the Canada Marine Act, the Bankruptcy and Insolvency Act, the Competition Act, the Companies' Creditors Arrangement Act, the 2009 Budget Implementation Act, and the Fair Rail for Grain Farmers Act are all being amended.

How this squares with the Liberal election promise not to use omnibus legislation is beyond me. Do not get me wrong, I am not complaining about an omnibus bill, just the fact that the Liberals did and then made a promise they knew they would not keep. Furthermore, when I introduced a motion in transport committee last week calling on the committee to write to the Minister of Transport and his government House leader to ask them to split the bill into the following sections, rail shipping, rail safety, air, and marine, to provide an enhanced and possibly expedited scrutiny, every single Liberal member voted against it without even a single comment as to why.

I found this vote particularly ironic, as it was the Liberal member for Niagara Centre who raised the idea of expediting the passage of the bill in the first place, in order to provide grain farmers with a greater amount of certainty as they negotiate contracts for future shipping seasons.

The more measures that a bill contains, the more time it takes to provide adequate scrutiny. Separating the bill would be the easiest way to facilitate expedited passage, and thus my motion calling on the bill to be split into several parts.

Unfortunately, Liberal members were unwilling to split the bill into these natural divisions. This does not inspire confidence that when the bill eventually does reach committee, the Liberal Party members will be open to any amendments. While Bill C-49 is supposed to be the Minister of Transport's legislative response to the 2015 Canada Transportation Act review led by the Hon. David Emerson, it would appear that what we have before us is a bill that is designed to change the channel from some of the bad news that keeps piling up for the Liberals.

The government's communications strategy for this legislation has overwhelmingly concentrated on the air passenger compensation regime that is being introduced, and not the other very consequential measures. Here is what the Minister of Transport posted on his Twitter feed as he introduced this legislation, “These air passenger rights will ensure that travellers are treated like people, not just a number.”

Like many members here, I travel a lot and only have positive things to say about all the employees working for the airlines and at our airports. Of course, on occasion, flights do not go as we hope, but the Minister of Transport appears to be willing to pit passengers against airlines rather than fixing the structural problems in Canada's aviation regime.

This legislation does not spell out what the compensation regime will be, just that there will be one. The bill states that after consulting with only the Minister of Transport, the Canadian Transportation Agency will make regulations concerning carriers' obligations toward passengers. However, for even greater clarity, subsection (2) of proposed section 86.11 states that the Canadian Transportation Agency must comply with any instruction from the minister with regard to setting regulations concerning carriers' obligations to passengers.

What this means is that the Canadian Transportation Agency is tentatively responsible for setting what financial penalties a carrier would have to pay to the passenger in the case of a service breach, unless the minister is dissatisfied with the level of prescribed compensation that the CTA decides is appropriate, in which case he or she can dictate what that level of compensation will be.

It is noteworthy that the agency will, by law, only be allowed to consult with the Minister of Transport concerning the setting of these regulations, and not with consumer advocate groups, airlines, airports, Nav Canada and other stakeholders in the sector.

I do not understand what the purpose of consulting only the minister is. If the Canadian Transportation Agency is to be an arm's-length organization, this legislation clearly diminishes its independence. If the minister will not allow the agency to independently set the parameters of the passenger compensation regime, he should just spell out in legislation what it will be and let members of Parliament and stakeholder groups decide whether this is a good proposal or not.

If this legislation were truly aimed at reducing the cost of travel for the passenger, while increasing service and convenience, the minister would immediately lobby to have the government's carbon tax, which will make every single flight more expensive, withdrawn. He would reform the air passenger security system, which was universally identified as a major irritant for all passengers during the Canada Transportation Act review by all the organizations that participated in the process.

While it would be preferable to have the sections of the bill dealing with air and rail examined as stand-alone pieces of legislation, I can only surmise that the government's complete mismanagement of the House's agenda has led us to the point where an omnibus transportation bill is what we have in front of us today. At least we have finally begun debating something in the transport sector, now that we are two years into the government's mandate. So far, the only achievement the minister has to show in terms of legislation is the act to amend the Air Canada Public Participation Act.

Let us talk about Bill S-2, an act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another act. This was first introduced by the government's representative in the Senate 13 months ago and passed third reading in the Senate on February 2. The minister claimed that Bill S-2 was a priority in his speech to the Montreal Chamber of Commerce in November 2016, yet it has not been touched since.

On May 12, just days before the introduction of the legislation we are debating today, the Minister of Transport introduced the oil tanker moratorium act, a bill that his own officials conceded would only impact the future development of Canada's oil sands and no other activity in northern British Columbia. Equally concerning about this oil tanker moratorium, which could be renamed the oil pipeline moratorium, is that there is considerable support among first nations on B.C.'s coast for energy development opportunities, but the wishes of these first nations are being ignored. For the Liberals to move forward with this tanker moratorium without properly consulting coastal first nations is extremely hypocritical.

The Liberals go to painstaking lengths to emphasize the amount of consultation they undertake, but it is becoming more and more apparent that their interest in consulting is about being told what they want to hear and not about listening to differing views. If anyone needs further proof that Bill C-48 was introduced only for political purposes, it is that this moratorium has been introduced as a stand-alone bill and not as part of this omnibus package we are debating today.

The Minister of Transport's silence and inaction on critical and time-sensitive transport issues, especially rail transport, is leading to uncertainty for both shippers and the railroads, which both want certainty as they negotiate shipping rates for the season.

That is why over the past several months I have asked many times whether the government intends to renew the sunsetting measures in Bill C-30 before they expire on August 1, 2017. The response I have been given time and time again is that the government recognizes the urgency to get this done and that legislation is forthcoming. Unfortunately, the Liberals have made a muck of this, and the key measures in Bill C-30 will sunset before any replacement legislation can receive royal assent and become law.

Last week in the transport committee, a Liberal member moved a motion calling on the committee to begin its consideration of this bill, Bill C-49, in September, before the House begins sitting, to expedite the study of the sections of the bill that deal with the shipping of grain. While Conservatives have no objection to considering this legislation in September before the House returns from the summer break, government members fail to realize that our producers needed them to turn their attention to this months ago, as the measures will sunset on August 1 of this year. At best, there will be a two-and-a-half-month gap between when the measures in Bill C-30 sunset and replacement legislation is in place.

By the time this legislation has passed, the majority of contracts for this year will have been negotiated with the law in flux. Because of the government's mismanagement of the legislative agenda, these popular measures will sunset without replacement, and shippers will be the worse off.

This is important to note, because for a combination of reasons, including a lack of rail capacity, preparedness by railways and shippers, weather, and the size of the crop, western Canada's 2013-14 grain crop did not get to market in a timely manner. Consequently, the previous Conservative government introduced Bill C-30, which gave the Canada Transportation Agency the power to allow shippers access to regulated interswitching up to 160 kilometres, mandated that CN and CP both haul at least 500 tonnes of grain per week, and introduced a new definition of adequate and suitable service levels. With this extension, the number of primary grain elevators with access to more than one railroad with the extended interswitching limits increased from 48 to 261.

These measures were met with universal support from the members of the shipping community, because even if they did not use interswitching, they could use it as a tool to increase their negotiating position with the railways, as the shippers knew exactly how much the interswitch portion of the haul would cost them.

At the same time, the government announced that the Canada Transportation Act statutory review would be expedited, and it began a year early to provide long-term solutions to the grain backlog of the 2013-14 shipping season and other problems in the transport sector within Canada. The hon. David Emerson, a former Liberal and Conservative cabinet minister, was tasked with leading the review. This review was completed in the fall of 2015 and was on the Minister of Transport's desk shortly before Christmas. The minister then tabled this report in mid-February 2016 and promised wide consultations on the report. As the key measures of Bill C-30 were going to sunset on August 1, 2016, and parliamentarians were hearing from the shipping community that it would like to see these extended, Parliament voted in June 2016 to extend those provisions for one year.

In the fall of 2016, the Standing Committee on Transport, Infrastructure and Communities undertook a study of Bill C-30 and held a number of meetings on the merits of these measures and whether they should be allowed to sunset. We were assured that if we lived with this extension, these issues would be dealt with by August 1, 2017.

The vast majority of the testimony heard was supportive of maintaining the 160-kilometre regulated interswitching limit at committee, which is why the committee's first recommendation was the following:

That the Canadian Transportation Agency retain the flexibility provided under the Canada Transportation Act by the Fair Rail For Grain Farmers Act to set interswitching distances up to 160 km, in order to maintain a more competitive operating environment for rail shippers with direct access to only one railway company.

Anyone who has read this bill will know that the government ignored the committee's main recommendation. At some point during this debate, I hope to hear from Liberal members on the transport committee about whether they believe that the government was right to ignore the committee's recommendations, and if so, whether the entire committee study was just a waste of time.

Basically, what the government is proposing with this legislation is to replace the 160-kilometre interswitching limit with the creation of a new long-haul interswitching tool that would be in effect between Windsor and Kamloops on hauls of up to 1,200 kilometres, or up to 50% of the length of the entire haul. Shippers would be charged the regulated interswitching rate for the first 30 kilometres of the haul and then a Canada Transportation Agency-determined rate, which would be determined on a case-by-case basis based on the price of a similar haul, for the remainder of the distance to the interswitch point. Shippers would only be able to interswitch at the first available interswitch point within the zone.

What the government has done is take a little-used existing remedy, called a competitive line rate, and rename it long-haul interswitching.

Under a competitive line rate, a shipper could apply to the agency to set the amount of the competitive line rate, the designation of the continuous route, the designation of the nearest interchange, and the manner in which the local carrier would fulfill its service obligations. We know from history that this remedy was infrequently used because of the prerequisite that the shipper first reach an agreement with the connecting carrier, and the two main carriers effectively declined to compete with one another through CLRs. What we do not know is what the difference will be at a practical level between this new long-haul interswitching and the existing competitive line rates.

Like competitive line rates, long-haul interswitching is a much more complicated system for shippers to use, and the jury is still out on whether this will achieve the minister's stated objective of improving rail access for captive shippers. When Bill C-30 was first introduced, there was universal support among shippers for the extended interswitching. So far, very few organizations I have spoken to can say that this tool is better.

In conclusion, this much is certain: the key measures in Bill C-30 will be allowed to sunset on August 1, before this legislation receives royal assent. The Liberals have had nearly a full year to get new legislation in place but failed to do so, and shippers will suffer the consequences.

Canada remains one of the most expensive jurisdictions in which to operate an airline, and it is about to become even more so with the imposition of a national carbon tax. This bill does nothing to address the systemic cost issues, which are passed on to passengers, that were identified by the Transportation Act review. As has been the case with almost everything with the current government, optics trump everything, and this bill exemplifies that.

Transport, Infrastructure and Communities

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, I know that the provisions that have been prolonged are very important to keep. One aspect that keeps coming up when I speak to farmers is the importance of data sharing and predictability, knowing when things are happening, when they are going to arrive. That is something that we had brought up and when Bill C-30 was at committee, we wanted to make sure that there was better data sharing, transparency. That is something that I think would be very important for shippers, not just agricultural products, but everyone would like to have better data sharing like we see in the U.S. If the U.S. can do it, why can we not do it here?

That is something that would help everyone. It would make sure there is more predictability and information sharing and then we could look into penalties to make sure that when delays are not respected, whether it is the railways or at grain, that there is some kind of reciprocity. That is very important too. I am really looking forward to seeing what the government comes up with and working together to make sure that we get our grain and our transportation going in Canada so that we can respect our international trade agreements.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, I thank my hon. colleague for the question.

I think many of the provisions passed in Bill C-30 are really important for the industry, as well as for ensuring the safe transportation of agricultural products and other goods. I am really pleased that the government moved a motion at the last minute to extend many of those provisions once again. I think we need to keep those provisions, including the one on interswitching, for example. All the stakeholders and farmers told us repeatedly that they were really happy with the decision regarding the extension of interswitching distances to 160 km.

Perhaps we could consider the possibility of extending that distance, since, as members know, Canada is vast and transportation is rather complex. I would also like to see what comes out of the consultations being held by the Minister of Transport, Mr. Garneau. I look forward to hearing about that and I hope to have some news when the House returns this fall. I also think the Minister of Agriculture and Agri-Food could show a little more initiative on this.

The House will recall that Bill C-30 was introduced by the former minister of Agriculture and Agri-Food. This directly affects producers and therefore we must consult these experts. I hope that the Minister of Agriculture and Agri-Food will show more leadership and, together with the Minister of Transport, will ensure that producers have fair and adequate service.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, I am pleased to speak today about the motion from the Standing Committee on Transport, Infrastructure and Communities.

We have been calling for the Liberal government to take action on the grain transportation file for a long time. The report simply requests that the changes set out in Bill C-30, which expire in August 2016, be extended for one year. I agree with that request and will support it when it comes time to vote.

Before explaining why it is important that the government extend these provisions of Bill C-30, I would like to give my colleagues in the House a little bit of background about the grain transportation crisis. About two years ago, I spoke specifically about Bill C-30 in the House.

The combination of an excellent harvest and a harsh winter uncovered major flaws in our grain transportation system that cost farmers and the Canadian economy between $7.2 billion and $8.3 billion.

Although the government at the time had known since the fall of 2013 what our farmers would be up against, Bill C-30 was its belated response to this major crisis. The opposition parties and stakeholders had to pressure the government for months before it did anything.

Unfortunately, the bill did not go far enough. What is more, it was temporary, as members can see from the provisions that expire in August.

The Premier of Saskatchewan said that the bill was flawed and disappointing. Throughout the crisis, the Conservatives acted as if the situation was out of the ordinary, even though farmers had clearly indicated that the system was broken and the duopoly of Canadian Pacific and Canadian National over the market was allowing the companies to provide inadequate service without fear of repercussions. There is still an imbalance of power between farmers and the railway companies.

In an attempt to address the many shortcomings in Bill C-30, my party proposed a number of amendments: implementing mandatory reporting of the price of grain throughout the transportation system; requiring adequate service in all corridors; ensuring that producers in all affected regions would be consulted about the regulations; requiring the government to work with the provinces to develop and implement a plan for open access running rights to ensure effective competition in the rail service; imposing a moratorium on the closure or delisting of producer car sites; increasing fines and directing those revenues to compensation programs for producers; and opposing the temporary nature of the provisions in Bill C-30, which suggested that systemic structural problems were actually temporary and exceptional.

Unfortunately, all of the amendments that the NDP presented in committee were rejected. By the end of winter 2015, the delayed delivery of more than 11,000 grain shipments prompted us to try again. Despite Bill C-30, there was another crisis.

As a result, I moved another motion in the Standing Committee on Agriculture and Agri-Food for the immediate study of problems related to the transportation of grain and agricultural products. Subsequently, my colleague from Sydney—Victoria moved a motion in the House.

His motion, which was adopted unanimously on April 22, 2015, called on the House to recognize that an increase in rail service and capacity is essential to the livelihood of Canadian agriculture and that changes to legislation are needed to address the structural gaps in our system.

When I spoke to the motion, I made sure to emphasize how important it is for the government to listen to all stakeholders. That point is important and remains valid.

The current government should improve the system. It should implement the recommendations of all stakeholders, the experts, and especially farmers.

I am pleased to see that the Minister of Transport said that he would take the Emerson report as advice only and that his government would consult stakeholders before making any decisions.

I can tell him right now that producers and shippers are not keen to abolish maximum revenue entitlement and interswitching. Stakeholders all agree, as do the parties here in the House, that these two measures should be removed.

As Dan Mazier, the president of Keystone Agricultural Producers, said:

“The report doesn't address [the lack of competition in grain transportation] at all, and this is the fundamental thing those in the grain industry believe lies at the heart of all of our problems.”

Since the beginning of the year, stakeholders have also all agreed that it is important to extend the provisions of Bill C-30, which expire on August 1. All of the groups I met with mentioned this to me. The members of the Standing Committee on Agriculture and Agri-food received many letters to this effect from such organizations as Alberta Barley, Alberta Canola, Alberta Pulse Growers, Alberta Wheat, and Grain Growers of Canada.

They wrote to us to encourage the fact that we need to act very quickly and that the pro-competitive measures introduced in Bill C-30, the Fair Rail for Grain Farmers Act, do not expire on August 1.

Among the other measures, the legislation provided for the establishment of minimum grain volume targets for railways, gave authority to the Canadian Transportation Agency to establish regulations governing rail service level arbitration, and provided for the extension of railway inter-switching distances from 30 km to 160 km, in Alberta, Saskatchewan, and Manitoba.

Parliament must pass a resolution prior to August 1, 2016 to extend these elements of railway regulation or Canadian shippers will lose these important shipper protection measures.

The report presented to the House by the Standing Committee on Transport, Infrastructure and Communities goes precisely along the same lines. That is why we support it. However, the government must adopt a long-term vision and address producers' concerns. This is important. A number of agronomists and officials at the Department of Agriculture and Agri-food have said that crop yields would only increase.

If the government does not improve our system, we will see more crops like those we saw in 2013 and more crises like the one we experienced in 2014-15. The government must show leadership and must implement long-term solutions for producers.

I sincerely hope that the Liberal Party will keep its promises on this issue and that its decisions will be consistent with what it said and did when it was in the opposition. It is one thing to get all worked up to defend producers when one is in the opposition, but it is another thing to do so when one is in government.

Since the beginning of their mandate, the Liberals have not had a great record on agriculture and agri-food, but they now have an excellent opportunity to take action and to stand up for producers. We hope that they will take this opportunity today and will take action quickly.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I would like to say at the outset that I am sharing my time with the member for Berthier—Maskinongé.

Before I proceed with my speech, I just want to comment on the mention made by my colleague in the Conservative Party. I have been working very closely with the NDP agriculture critic, sharing great frustration with the breadth of the issues in transportation and that for this area of agriculture, it makes common sense for those who are dealing, day in and day out, with agriculture issues that maybe these matters to do with the transport of our agricultural products should be going, at least in part, to the agriculture committee.

We will continue to pursue that. Lord knows and those of us who are on the transport committee know that we have a lot to deal with anyway.

I feel confident in sharing that prairie farmers will be greatly relieved that the government has at long last, and at the very last possible moment, taken action to extend the time period for the application of the emergency legislation enacted last year under the Fair Rail for Grain Farmers Act.

One important provision, as we have discussed here, of that law postponed the expiry of the extended access by farmers to interswitching from 30 to 160 kilometres until August of this year. Were this action not taken, farmers would have been greatly disadvantaged.

Greg Sears, chairman of the Alberta Canola Producers Commission supported this extension, which is also endorsed by the Agricultural Producers Association of Saskatchewan, the Canadian Canola Growers Association, the Barley Council of Canada, the Canadian Oilseed Processors Association, Cereals Canada, Prairie Oat Growers Association, Grain Growers of Canada, Pulse Canada, Western Grain Elevator Association, and the Inland Terminal Association of Canada. They all support this.

Mr. Sears said:

Extended interswitching is being used by grain shippers and is emerging as an effective tool to provide better rates and service between two Canadian Class 1 railways, as well as other North American railways. Time is of the essence to ensure this provision does not lapse before parliament adjourns for the summer.

Farmers, especially in the Prairies, need better access to interswitching to get their crops to market. This was identified as a key issue in the Emerson report, but extended rights under the Fair Rail for Grain Farmers Act are set to expire August 1 of this year. This means that many farmers could lose access to markets this season, which would lead to severe hardship.

On May 13, at the request of the Canadian grain, canola, and pulse growers, I put this exact request to the government on behalf of agricultural producers. I asked that the government commit to legally extending these rights for fair rail before the House rises in the summer. While the Prime Minister made a commitment in April of this year, it was not until today that any action occurred.

This motion will ensure extended access for at least another year. For this coming year, Canadian grains and pulses will potentially reach markets in a timely manner. This is critical to provide expanded options for producers to access markets, thereby making grain sales more competitive. However, as grain producers have advised, they require longer-term solutions than just a one-year extension.

Again, as Greg Sears has expressed:

Truth be told, all farmers would benefit from 1,000 kilometre interswitching or open running rights because there are still major farming areas not receiving any benefit from the extended interswitching, such as the Peace region of Alberta that is over 500 kilometres north of Edmonton.

As Mr. Sears reminds us, agriculture is among the most trade-dependent sectors with the majority of product exported. He reminds that rail remains the only economical option to ship those products from prairie to port.

This makes prairie producers almost entirely dependent on the railways for the long-term viability of our Canadian farms. Farmers are reminding us that Canada cannot afford a repeat of the 2013-14 shipping debacle and the damage to the Canadian agriculture industry as a reputable supplier of high-quality grains and oilseeds.

In the farmers' view, these measures are critical to correct the imbalance of market power controlled by the railways. As submitted by the Agricultural Producers Association of Saskatchewan, further measures will be needed to “address the fundamental problem of railway market power as the primary factor constraining rail service and commercial accountability in the grain transportation system.”

The president of the Canadian Federation of Agriculture, Humphrey Banack, an Alberta farmer, has said that extended access to interswitching is critical in order to hold rail companies accountable. He recommends that the extension continue, at a minimum, until after the Emerson report is considered and acted upon by the government in a process, he stresses, of direct consultation with the agricultural producers.

As my Conservative colleague has stated, what would be absolutely critical is that, as the government moves forward to review the Emerson report and all of the issues that arise out of the Fair Rail for Grain Farmers Act, the producers themselves play an active part at the table and not be peripheral. It is absolutely critical to our economy at this time, particularly in areas such as Alberta, where the economy is suffering. Agriculture has always been an important part of the revenue for my province and contributes to the wider Canadian economy. It is absolutely necessary that we get this right and that we do not let the rail companies continue to, frankly, railroad our farm producers.

I am very happy to support the motion, which I contributed to at committee. It is very important that any review of the motion be further expedited so that the farmers have some kind of clarity and are not left hanging, as they were this year, right to the bitter end.

Opposition Motion—Canadian Dairy Industry

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, my colleague and I are both veteran members on the agriculture committee, and we are on the same page on a lot of issues: trying to study the TPP at committee, looking at the Emerson report, and making sure that some of the provisions in Bill C-30 actually stay in place. However, when it comes to supply management, the TPP, and CETA, there was a compensation package announced by the previous government, and we did not see a follow-through by this government. There is so much uncertainty.

I knew the Canadian milk producers were going to be okay if there were some kind of compensation, but that is not on the table anymore. We have been dealing with milk proteins for the last few years. The situation is getting worse. There are companies that have built up in the States and have a lot invested in it. There are millions of dollars at play.

We have to stand up for Canadian farmers here. I am standing up for my constituents and for the supply-managed sector. We need to see the government standing up for farmers and taking care of this milk proteins issue, because we are going to see farmers sell their quotas, close up their farms, and leave.

Therefore, we are asking for the government to take concrete action, confirm to us today, with a date, when it is going to stop milk proteins coming into Canada, and reassure Canadian farmers instead of letting us be had by the Americans.

Rail Service

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, before I begin, I would like to thank all of my colleagues who are members of the Standing Committee on Agriculture and Agri-Food for their work. Every member wants to promote the smooth functioning of the agricultural system and the emancipation of agricultural industries. I would also like to commend the member for Sydney—Victoria for moving this motion, which just received the government's support. I would therefore like to thank her once again for getting the government's support for her motion.

On February 5, I moved a similar motion at the Standing Committee on Agriculture and Agri-Food. That motion had the same objectives as those we are talking about today. In fact, I asked the committee to immediately examine the problems that currently exist with the transportation of agricultural products by consulting all of the stakeholders. In that motion, I said that given recent reports on the deterioration of rail service, ongoing problems with the provision of cars to transport grain and the specific impact of ongoing transportation problems in the agricultural sector, we proposed that the Standing Committee on Agriculture and Agri-Food immediately examine the problems that currently exist with the transportation of agricultural products, establish long-term projections for 2015 and consult all members of the grain supply chain, including producers, elevator operators, grain companies and rail companies.

Unfortunately, the government refused to step up to its responsibilities, and that could happen with this motion too. However, once again, there is good news. I hope that this will change things.

A year ago, I was here to talk about the same problem in the context of Bill C-30, which was designed to resolve the grain transportation crisis farmers were experiencing. I do not need to paint a picture to make the point that the Conservatives' decisions have not solved much of anything in the past year and that farmers are still in the same boat. I am proud to express my support for this motion.

We need to talk about the context and compare the situation to last year. As I said, and as happens so often with government bills, I get the feeling I'm going through exactly what happened last year all over again.

Last year, farmers' growth was hampered by inefficient CN and CP services. At the time, the Minister of Agriculture and Agri-Food said that rail companies were providing adequate service, but thousands of farmers were exasperated by the fundamental flaws in the grain transportation system.

How are things now? About the same. Rail companies delivered over 11,000 orders late. That is about 11% of their orders. Ongoing delays have cost the Canadian economy over $8 billion. What is more, in the past six months, fewer than half of all orders were delivered on time.

What did the government decide to do? It decided not to renew the requirements that CN and CP transport a minimum volume of grain. We also found out that, after having rejected an offer to purchase from an association of Canadian farmers, the Conservatives offered up a majority stake in the Canadian Wheat Board on a silver platter to foreign interests. That is another Conservative decision that shows a lack of support for Canadian farmers.

Again, a year later, farmers have lost $8.3 billion. They have received nothing, apart from compensation under Bill C-30, which puts them back into a similar situation today.

I deplore the fact that there still has not been any compensation for the losses suffered by producers, especially for the crises and problems that occurred in previous years. A responsible government is able to prevent such situations, instead of always finding temporary solutions to these messes.

In other words, Bill C-30 had very little impact in the medium and long term. It simply brought everything back to square one.

We have to ask ourselves: why are we here? For the same reasons that the opposition always has to go over the flawed bills introduced by this government, which, despite the warnings of my colleagues and stakeholders, refuses to listen.

We are in the same situation because in enacting Bill C-30, the government did not listen to all the stakeholders. A number of them were critical of the government for getting rid of the CWB and said that the board was useful when it came to grain transportation. However, the government did nothing about it, and today it is encouraging the sale of the CWB to foreign interests.

The stakeholders were calling for a mechanism to evaluate the performance and quality of rail freight services, but the government rejected that idea.

Today, the stakeholders are claiming that service is still bad. They say they are frustrated by the persistent delays, whereas the government is still saying that everything is just fine.

As usual, things were done too quickly without any plan or long-term vision. The government disregarded our amendments, which took into account all the requests of all stakeholders, not just those of the corporations and the major producers. The government did not implement enough of the necessary sanctions to ensure the efficient transportation of grain by rail.

In closing, the situation is critical because this government mismanaged it and the minister keeps saying that rail companies are doing just fine.

What should have been done and what should we be doing now?

Adopting the proposed amendments would have addressed the root of the problem. My party fought to have Bill C-30 consider the interests of farmers and not just those of major producers.

Our amendments would have implemented mandatory reporting of the price of grain throughout the transportation system, required adequate service in rail transportation corridors and ensured that producers in all affected regions would be consulted about the regulations.

That could have prevented the current crisis, but it is pointless to talk about the past. We have a mess in our hands and we have to deal with it.

We have to examine this crisis and take action to establish new communications protocols and new penalties for non-compliance with delivery agreements. We must also ensure that producers have information about exports and ships and establish the mandatory reporting of price throughout the grain handling chain. All producers, even small ones, must have equitable access to rail infrastructure, and we have to think long term by developing a strategy for the future of rail service that will consider the growth of the agricultural sector.

The minister needs to step up and admit that he failed in his obligations. He must admit that he made a mistake by abolishing the Canadian Wheat Board, by supporting the sale of this former crown corporation to foreign interests, by refusing to be transparent about exports and by refusing to bring in performance standards for rail transportation.

In addition, the Minister of Transport needs to impose the fines she promised to impose—$100,000 per day and not per week—on the companies that do not comply with the agreements.

It is time that the government started listening and started working with all stakeholders in order to resolve the grain transportation issue once and for all. That is why I support this motion and why I will vote in favour of it.

[Malcolm Allen, NDP, Welland, ON]

Mr. Speaker, it is a pleasure to speak to Motion No. 550 put forward by the member for Sydney—Victoria.

I find it rather interesting that we are talking about a motion that deals with what we ought to have done, but it does not actually include anything that says how we should have done it. Be that as it may, it would have been helpful if the member had actually put in some of the amendments we tried to get through the agriculture committee that talked to how to make the system work, because ultimately, it is about trying to make the system work.

I do applaud the member on his efforts at least to hold the government to account to some degree, but it would have been nice if it actually had some real teeth in it. Something we had talked about was that it should have the fines that were there in the first place.

If we had done that, perhaps it would have been doing something rather than what the government eventually did in a sort of clandestine way when they literally changed the numbers. What was supposed to be a fine per incident turned out to be a fine per week, which I found rather unusual and slightly disheartening.

We helped the government with the legislation. I know that the other side has a hard time believing we help with these things, but when it comes to Bill C-30, we did help with that legislation. We tried to move it along swiftly, because we understood the plight of prairie farmers coming out of the winter of 2013. It literally was a bumper crop. It was stuck on the Prairies, because according to the railroaders, it was too cold for them to move grain. The rail system seems to not work in a Canadian winter. It was almost as if somebody had brought some folks up from Florida, with no offence to the good folks from Florida, and transplanted them into Saskatchewan, Alberta and Manitoba in the middle of winter, and they did not know what to do because it was cold. The railroaders decided that was an excuse for them not to do what we felt they ought to be doing.

Unfortunately, the folks who suffered the most were the farmers. Ultimately what we saw was the price for them was not as lucrative as it may have been if the grain had actually been moving.

This speaks to the whole sense of how the system operates and how it should operate, and who is responsible to make sure it does operate. Clearly, it was not operating.

Many times we asked the minister in the House why over 40 ships were sitting in the port of Vancouver waiting for grain that was stuck on the Prairies. It was costing literally thousands of dollars a day.

The port manager at the port of Vancouver said that they were like car jockeys, except the problem is they were working with big ships. They are brought out of anchor, put at the dock, and when they find out there is no grain being delivered, the ship has to be moved off the dock because another one wants to come in. He said that every time an anchor is pulled up and a vessel comes in, it is a $10,000 move. That is a heck of a lot more money than someone who jockeys cars for a living, which might be $10.

Those were issues facing the farmers. That cost ends up going back through the system, and it is the farmers who pay, because they get less for their grain. At a time when they should have been getting a good price, in fact one might say they should have been getting a great price, they were getting less because the system was not working.

There are farmers who fill their own hopper cars, what the trade calls producer cars, which is simply a small railroad somewhere owned by a group of farmers who got into a co-op and decided to pool their resources. They get the short-line railroad and bring the cars down to the main line. When they put in orders for producer cars, they were not seeing any. They were being told that they should just truck their grain to an elevator. The problem was the elevators were full. The elevators were saying not to truck it to them because they had no space.

It ends up being stored. Many farmers had contracts. The government was always good about talking about forward contracts, that if they were forwarded out, they could make some money. The problem was they had forward contracts, but that time would come and go, and they could not move anything, because there was no room in the elevator. The elevators were still full because the railroaders were not getting an opportunity to move the grain, because of the cold winter, they say.

Ultimately, the folks who paid in all of this were indeed the farmers on the prairies.

We saw the order in council come through, and then Bill C-30 came forward. We tried to work with that. We tried to push some amendments on what the fines should be like. We actually agreed with Premier Brad Wall. We thought we should double the fine. The government proposed $100,000. We thought it should be $200,000. We actually agreed with the Premier of Saskatchewan. Many people out there would probably not believe that we would agree with Premier Wall on that particular issue, but we did.

We also pushed forward a number of amendments on how we could have some sort of transparency in the system so that farmers could follow whether the ship was in port, whether the grain was moving, where it was stuck, what the final price was, and why the farmers got a particular price when they sold to the elevators.

Many of us in the agricultural field know that there is a set price for grain travelling west to the port of Vancouver. The railroads charge a set price, so it is easy for farmers to calculate if they know the final price at the port destination. Farmers can calculate how much it cost to send it to the elevator, how much it cost for the elevation of it, and how much it cost to transport it.

Some reports, one of which came from a professor at the University of Saskatchewan, said that the farmers were basically losing $160 per tonne because of the way the system had plugged up. That being the case, the opportunity for farmers to take a bumper crop and turn it into a bumper financial crop was wasted because of what happened with the railroads.

The motion talks about making sure that this does not happen again, but what we need to see is that the government makes sure it does not happen again. We need a system of fair rail and a system that allows those who ship to make the railroads accountable.

I talked about agreeing with Mr. Wall, but I suggested in an amendment at committee that we should have open rail. Two companies in this country do not want open rail, Canadian National and Canadian Pacific, which I find ironic, because they do not mind asking the United States for open rail. They do not want to see competition. We actually think that if we had competition in the system, if we had transparency in the system, like they do in the U.S., where they can actually tell what the grain price is at the port of Seattle, farmers would know if they were not getting a fair price. It would give them more leverage and more information, and information in the marketplace is important when they make those final decisions to sell now or sell later or to contract it. Ultimately, we have seen a system that does not function well for farmers.

Another amendment we pushed was to make sure that now that we have to move a million tonnes, it will be fairly distributed. What we saw justified our fears. The railroads figured out how to turn it around fast. Basically they chose the elevators closest to the western port of Vancouver, and the rest, who were further east, suffered.

Many of us who have kids or grandkids who like Cheerios will remember that the Cheerios factory was going to shut down. Why did that happen? It was because the oat farmers in this country supply all the oats needed in the United States to make Cheerios. However, there were no trains moving north-south. They tried to take the shortest route back and forth through the western corridor and did not run north-south at all.

I spoke to an oat farmer not long ago. He said that there is still an issue trying to get trains to come and serve them. Clearly this is a government that did not actually get the job done, even though we had Bill C-30. We suggested that they do not sunset the clauses in it. The Conservatives decided that they would sunset the clauses in it.

I would say to the government that if it is to do a rail review, it should not worry about the carrot; it should get out the big stick. If it is to bargain with two railroads, they will bring big sticks, and if the government does not bring a big stick, it will lose.

Then again, there will be an election, and by that time, we will have the big stick, when we sit over there. We will make sure that the railroads deliver service to farmers across the prairies and that they get the service they deserve.

Rail service

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, it is a pleasure to stand here today to speak to the motion.

Since the motion addresses agriculture, I would like to recognize my much older brother Alan on his Groundhog Day birthday as well as his outstanding career as a rancher, grain farmer and businessman. He was my first farming partner from a time long ago when we were both teenagers.

Last year, Canada's 60,000 grain producers exported some 40 million tonnes of world-class grain products worth over $20 billion. That is important for agriculture because it represents about half of all agriculture and food exports, but it is also important for Canadians who live in cities. A strong agriculture and food sector drives one in eight jobs in our country and almost 7% of our gross domestic product.

Canadian grain farmers depend on exports to sell 70% of their wheat, 75% of their pulse crops and 85% of their canola. That is why the rail service is so critical to Canada's hard-working grain farmers.

Regarding today's motion, our government has taken steps to address each of the five points, namely: recognizing that improved rail service is essential to farmers' livelihoods; recognizing that the ongoing review of the Canada Transportation Act will provide an opportunity for improvements; the need for all stakeholders to sit down together; the need to correct the imbalance of power along the chain; and ensuring government and industry work together. We have addressed these points and we continue to do so. Let me elaborate.

We recognize our rail service is essential to the livelihood of Canadian farmers. Likewise, we have moved to address the imbalance of power along the logistics chain.

Canadian farmers pay over $1 billion to move regulated grain by rail. On the prairies, grain travels an average of 1,400 kilometres to reach a port position. Our farmers and our economy depend on efficient, effective and reliable rail service to move those crops off the farm to our valued customers in Canada and around the world. That is why a year ago our government took action when our farmers were facing the prospect of moving a record crop.

First, we introduced an order in council mandating the railways to move a minimum volume of one million tonnes of grain a week, backed by penalties. Two weeks later we introduced Bill C-30.

The Fair Rail for Grain Farmers Act has put into law clear and achievable solutions to ensure grain and other commodities get to market in a predictable and timely way. The act amended the Canada Transportation Act to include the authority to set volume requirements in order to mandate that certain grain volumes be moved. The legislation also gives us the ongoing flexibility to monitor and adjust volume requirements as needed. The act also created the regulatory authority to enable the Canadian Transportation Agency to extend inter-switching distances for all commodities on the prairies.

Bill C-30 amended the Canada Grain Act to strengthen contracts between producers and shippers. The amendment will provide the Canadian Grain Commission with the authority to regulate grain contracts between farmers and grain elevators.

Bill C-30 also enacted regulatory power to add greater specificity to service level agreements as requested by all shippers.

In addition, we required additional, timelier and more detailed data from the railways to increase the transparency of railway, port and terminal performance across the supply chain.

In August, the regulations came into force and we renewed the minimum volumes to ensure continued movement through the fall.

In December, we did the same, while committing to increased monitoring throughout the winter months.

These measures are concrete and comprehensive and they have been delivered. The grain is moving faster than last year and faster than the five-year average.

Speaking to the second point of the motion regarding the review of the Canada Transportation Act, this process was up and running in the summer. We accelerated the review by a full year to focus on long-term structural issues affecting all rail transport, including grains.

A discussion paper was released in September for industry comment. Since then, the CTA review panel has been busy throughout the fall and winter, meeting with a number of stakeholders to get a clear picture of the challenges facing the western Canadian grain handling and transportation system.

We will continue to bring the whole value chain together to manage future challenges and create a rail supply chain that has greater capacity, predictability and accountability for the industry and, most important, for our global customers.

As far as urging industry to work together to improve the system is concerned, we have delivered on that as well. We have established a number of opportunities to bring together all the players to develop solutions for the longer term. We have also formed the Crop Logistics Working Group, bringing the entire industry together to focus on the performance of the supply chain for all crops in this new and exciting marketing freedom environment.

We moved forward on recommendations from the working group around performance measurement and government support, with a $3 million industry-government investment in a study on supply chain improvements. We also launched the commodity supply chain table, with stakeholders from the agricultural, forestry, chemical, and petroleum industries, as well as railways, ports, grain elevators, and shipowners. The group is exploring solutions to the challenges facing Canada's rail-based supply chain. Together, these initiatives will ensure that Canada's grain industry can to shape a strong logistics system for the future, one that responds to the needs of the Canadian grain sector.

However, we are not stopping there. This government has an overall plan to create a modern and competitive grain industry that will open up new opportunities for farmers in the 21st century. The cornerstone of our reform is marketing freedom. This landmark legislation restored to farmers a basic business freedom they had been denied for 69 years, the freedom to sell the crop they paid to grow to the buyer of their choice, the same freedom that helped create the canola and pulse industries, which made them juggernauts of Canada's farm economy over the past two decades. The overwhelming majority of western grain farmers have embraced the opportunities opened up by marketing freedom, which allows them to make decisions at the speed of business.

In the post-monopoly era, Canadian wheat is finding new customers in Asia, Africa, and South America, where sales of Canadian wheat in 2013 and 2014 surpassed the previous five-year averages. Meanwhile, instead of one buyer for farmers' wheat, there are now dozens of grain companies competing for their crops, as we saw with the deregulation in Australia. Since marketing freedom came into force, the number of grain dealers licensed by the Canadian Grain Commission has risen significantly.

In December, we took another key step for Canada's grain industry when we introduced BillC-48, the modernization of Canada's grain industry act. This proposed legislation builds on major reforms we made to the Canada Grain Act in 2012. It would modernize the regulatory framework for the grain industry to reflect current practices. It would enhance producer protection and grain quality and safety assurance. Enforcement of the act's provisions would be improved and less burdensome. Efficiencies would be realized in producer protection. This proposed legislation would benefit producers, the grain industry, and all Canadians in a big way.

Trade is also critical to the competitiveness of Canada's grain industry. Internationally, we have continued our aggressive trade agenda by pursuing free trade agreements and ensuring a science-based approach to trade issues, like low-level presence of genetically modified crops. We have concluded major agreements with 38 countries, including the European Union and South Korea, opening up key markets for our producers and processors.

Once the trade agreement with the EU is fully implemented, our grain farmers will have virtually tariff-free access to half a billion consumers from Italy to Scandinavia. To give traction to these trade agreements, the Minister of Agriculture and Agri-Food continues to travel with industry for face-to-face meetings with our customers in key markets. These missions help to promote the qualities of Canadian grains to every corner of the world, while bringing back valuable feedback from our customers to ensure that our grains continue to command a premium in the world.

The other key element in our grain modernization plan is innovation. We are keeping our wheat producers on the leading edge of innovation through investments in the wheat genome and disease-resistant varieties. That includes the national wheat improvement cluster. We have matched funds, bringing in investment up to $25 million. We have dealt with the Western Grain Research Foundation, again bringing all of these things together to help our farmers.

In conclusion, the future is bright for Canada's grain industry. The Food and Agriculture Organization estimates that over the next 35 years, farmers will need to increase their annual production of cereals by a billion tonnes. To meet the world-class demand, they need a world-class transportation system. This government remains committed to ensuring that Canada does, indeed, have a world-class transportation system.

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, I will say at the outset that the official opposition will be speaking strongly in support of the motion entered today by the member for Sydney—Victoria.

The motion talks about the need to identify increased rail capacity, rebalance the system, and make sure all sections of the industry are convened. We take that to mean that the farmers will be sitting at the table and be strongly involved in enforcing service level agreements and ensuring fair access and adequate compensation for farmers.

It is pretty obvious that it is time to get the railways moving. There is not the level of sophistication and coordination that is needed within our system. It is “absolute chaos”, to use the term used by the hon. member, and we really need to get back to it. It is costing our farmers billions of dollars.

It is no secret. We can ask any farmer what needs to be done, and there are five things. One, we have to increase pressure on rail companies, including through implementing and enforcing rail performance standards, which I will be talking about. Two, we have to ensure that export and vessel information is accessible to producers, and that mandatory price reporting is available throughout the grain supply chain. Three, we have to make sure that grain producers have fair access to rail infrastructure in order to move their products wherever they are. Four, there has to be a full costing review of producer rail service in Canada. Five, we have to develop a strategy for future rail service that accounts for the kind of sustained agricultural growth we have seen in the last few years.

I talked about enforcement. We heard the member for Bruce—Grey—Owen Sound talk about the weather as if the cold weather last year was some sort of excuse. He is quoted as saying:

I noticed the cold weather did not stop them from moving thousands of additional carloads of oil.

Obviously that has been fine. He went on to say he does not blame them, stating:

The first duty of any company president is to maximize profit for his shareholders, and that's what the railways are doing. They can make more money hauling oil than grain, and so that will continue to be their priority. ... If I were a railway president, I would probably do that same.

We had a start with an order in council a couple of years ago that talked about administrative monetary penalties of $100,000 a day. How many of those were issued? Zero. Then, in Bill C-30, the law was changed to contemplate administrative penalties of $100,000 a week, but there was still no action.

In the words of my colleague for Welland, the excellent agriculture critic for the New Democratic Party:

You need a big stick to get their attention. But the fines were supposed to be levied by the day, and the government obviously lost its nerve and made the fines weekly. Their big stick is actually a twig.

That, of course, is the point. The government is not serious about enforcing the rules. The Conservatives huff and puff, go from crisis to crisis, lurch here, lurch there, but when it comes to coordinated action, there is not the kind of single-desk action that we used to have when we had the Canada Wheat Board. It is not longer here. It is every farmer for himself or herself, and that seems to be the way the current government believes our precious grain industry should be treated.

I live on the west coast. Every day in Plumper Sound, I see sometimes 40 ships sitting for months waiting and indirectly costing farmers a lot of money. They are waiting for deliveries that never arrive and end up turning around and going back. This is no way to run a railroad, to use the hackneyed phrase, and it is certainly no way to run a sophisticated modern grain delivery service.

We have had record crops, but here is the irony: people cannot sell it. It sits and rots in grain elevators. Individual farmers have to come up with money to store the grain because they cannot get it to market. They are what are called in economic terms “captive shippers”. They really have nowhere to send it. They often have only one of two monopolies, CP or CN, and they are not able to meet the minimum volume requirements under the Fair Rail for Grain Farmers Act.

Again, there are no penalties if there is any problem in doing what the minister has said they should do, which is to increase volume. Penalties are lowered, and there is no enforcement. That seems to be the way that the government has dealt with this crisis on our prairies.

The NDP fought for certain amendments, but those amendments were ignored. The hon. member for Sydney—Victoria made the same observation. We fought together, and the amendments were ignored. We fought to have real consideration for farmers' interests included in the emergency legislation, the so-called order in council, such as establishing a system of mandatory reporting for the price of grain throughout the transportation system at specified points along the delivery chain. That was not allowed. We fought for the requirement for all corridors to receive equitable service. That was not allowed.

We fought to ensure that all producers in all affected regions were consulted about the regulations, but no. We fought for the requirement that the government work with the provinces to develop and implement a plan for open access running rights to ensure effective competition in the rail service, but no. We fought for the requirement of a moratorium on the closure or delisting of producer car sites and for increasing fines and directing those revenues to compensation programs for producers. That was not allowed.

We also have serious problems with service level agreements. I would like to cite Senator Mercer, from the other place, who talked about the importance of addressing this service level agreement issue head-on in Bill C-30. He said:

Bill C-30 really does not do a lot to establish or enhance existing service-level agreements between shippers and the railways. All it actually does is permit the Canadian Transportation Agency to regulate elements in those negotiated service-level agreements.

Many stakeholders agree that the amendments were needed to clearly define “service”. What do the words “adequate” and “suitable” mean? What does the phrase “service obligation” mean? Obviously, they are too ambiguous to have any meaning. They are too subjective. Therefore, we need language that clearly defines the rights and obligations of all parties. They need to be nailed down. That is something that is clearly needed if we are going to get anywhere in nailing down these service level agreements that are so critical.

As I said in my remarks earlier, in the past the Canadian Wheat Board gave farmers a dependable place, a single desk that was involved in this marketing. Now, it is every farmer for himself or herself. As was pointed out by several of the stakeholders, a lot of farmers just do not have the time or the interest to sit around at night figuring out the market. They used to have someone to do that, but now, of course, the coordination function that was performed by the Canadian Wheat Board has been lost.

This lack of coordination is a problem, as my hon. friend mentioned. It means that we leave ships in dock or sitting out there in Plumper Sound. The port terminals are competing with each other for handling. There is no coordination of the kind that we used to have. That means that they are grabbing rail shipping capacity and having grain delivered without considering the demand.

There have been enormous increases in the amount of oil shipped by train, but the problem is that increased oil shipment creates a lack of capacity for grain producers. It is obvious to everyone, but the lack of coordination is equally obvious, and the need for action is urgent.

When I look at the people who have spoken on this matter, and they are legion all across the prairies. Doug Chorney, the president of Manitoba's Keystone Agricultural Producers, said that the backlogs could be blamed on “abysmal service” by Canada's two major railways. Mr. Paterson points out that those railways are now often controlled by foreign interests. Some 73% of the shares of CP are American-owned. The two men shaping CP's recent history are CEO Hunter Harrison and activist shareholder Bill Ackman. Both are American. CN Rail is roughly half Canadian-owned and half American-owned.

That inadequate service is something we have all seen. It is great to have free trade, but if we cannot get the product to market, it is of no value.

We salute the member for bringing forth this important motion today. We need to get on with it and get our grain moving.

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, I listened with interest to my friend from Sydney—Victoria. I congratulate him on a motion that we will certainly be supporting as the official opposition.

When the member uses words like “disastrous system”, “absolute chaos”, and “real hardship”, we concur entirely. Again, I would thank the member for this important motion.

He mentioned in his remarks that he wished to put shippers and the railways on an equal footing. I would like to ask whether the member would agree that better enforcement of surface level agreements requires a better explanation of terms in Bill C-30, such as adequate and suitable “service obligations”. The terms are too ambiguous in our view. We need language to clarify rights and obligations. Would the member agree?

[Mark Eyking, Liberal, Sydney—Victoria, NS]

moved:

That, in the opinion of the House, the government should take steps to provide an increased level of rail service throughout Canada by: (a) recognizing that an increase in rail service and capacity is essential to the livelihood of Canadian agriculture; (b) recognizing that the ongoing review of the Canada Transportation Act provides an opportunity to rebalance the system and improve capacity and service; (c) making sure that all sections of the industry convene, with their own operational ideas, to increase effectiveness and efficiency of our transportation system...; (d) recognizing that changes to legislation are needed to address the imbalance of power along the logistics chain; and (e) making sure that all stakeholders work together to build a world class transportation system, including effective legislation and regulations.

He said, Mr. Speaker, on the domestic front, last winter we were faced with a severe crisis within our agriculture sector to effectively recognize the interests of producers and the struggle to get their record crop to market. Harvests across the prairie provinces, the world's top canola producer and second-largest exporter of wheat, jumped 14%, to a record 90 million metric tonnes, as reported by the government.

To put it simply, the system failed farmers last year, and it failed them badly. There is a responsibility throughout the logistic chain—the railroads, the grain companies—and then we had the cold weather to boot.

However, if the system failed, then we must asked ourselves, “Who designed the system? Who put it in place? Who set it up for failure? Who imposed $8 billion in costs and losses to prairie farmers?” The answer to that question is the current Conservative government. This disastrous system, the one that has failed so badly, is the one that was designed and implemented over the past three years of this current government.

Now, the current Canada Transportation Act review could not be more timely. The winter of 2013-14 saw a transportation crisis that impeded the growth and credibility of our export economy. Real hardship was experienced by farmers due to the failures of the system. For both the producers and the consumers of Canadian grain, our transportation system could not be relied upon. Shippers had to place car orders and had no idea when those orders would be fulfilled.

Of all our Canadian exports, more than 50% are reliant upon rail, and more than 70% of those exports go right to the United States. As Canada grows, the country needs a rail system to evolve, matching these trends.

In 2009, Canadian trade exports were valued at $367 billion. By 2013, they went to $479 billion, 75% of which went to the United States. When we look at 2013-14, it displayed a system that failed to adapt to the growth, especially in western Canada.

The 2012-13 grain harvest, considered a once-in-a-lifetime crop, was topped again in the following year. The farmers are getting better out west; they are getting better varieties and growing more crops, and the world needs those crops. Canadian exports of oil by rail are up over 160,000 barrels per day, from 50,000 barrels in 2012.

As Canada's economy continues to grow, our transportation system needs not only to grow alongside it, but to improve as well. A system as complicated as Canada's transportation system needs to be built upon the spirit of co-operation. The number of stakeholders and the demand on the system is going to continue to grow, which is good. It is good for the people out west; it is good for all of Canada, and it is good for the people who need our products around the world.

The Canadian Wheat Board had a variety of functions in the system. Some of them were set out in legislation, such as the single-desk seller function. Some of its functions simply developed by way of the evolution of the grain system in western Canada. It became a safeguard of the system, helping to direct traffic and providing some overall coordination.

When the Conservatives came in and made the decision to eliminate the single desk, what was going to replace that system? It was their policy decision to make, as a government.

That ship has sailed; it is over, and there was nothing put in its place to help that coordination and to get things going. We saw ships waiting in Vancouver harbour last year that had to turn around and go to other countries to buy grain.

However, Liberals do not believe that they thoroughly considered the collateral damage here, and some of the collateral damage was the total elimination of any coordinating function, oversight function, and an ability to try to use limited assets in the most cost-effective, business-like fashion. That is what is missing in this system now. It is not an issue at the moment of a single-selling desk. That is not what we are here to talk about. It is about an issue of absolute chaos in an uncoordinated system and a lack of synchronization. That is what is happening, with nothing to fill it.

Rail transportation is a very complex system. One has to get the grain from the right delivery point to the right terminal on to the right boat to the right customer in an appropriate amount of time. That did not happen last year. It happened late, and as I stated, there were billions of dollars lost by farmers out west. A very intricate and complex number of parts have to work together to make this happen. What we have seen over the past year is the Conservatives' inability to bring proper coordination to the system. They have not made the best use of our limited assets in the most cost-effective way so that we do not have a colossal mix-up. We need a smoothly functioning system that will get the most money for farmers because their product is delivered at the right place and at the right time.

In November 2013, just when the farmers were finishing their grain harvest—and they were very optimistic, as it was a great harvest and they had customers—I had the opportunity to take an agriculture outreach tour throughout western Canada to meet with farmers and identify areas that are important in my role as agriculture and agri-food critic. After visiting various farmers in Manitoba, Saskatchewan, and Alberta, even early in the fall months it was evident that our grain handling system in Canada was not providing the capability to meet industry demands.

Along with the member from Winnipeg, we witnessed first-hand the mounds of grain that were piled right to the rafters. The bins were full at the McRae's farm, at St. Andrews, in Manitoba. He was optimistic at that time, but throughout the winter things changed for him. The situation became worse.

Initially the minister suggested cash advance payments—I wonder what good that is if their crop is not moving—and a working group to look into the disaster. As the months were going by and they were losing more money, it was too little and too late. Ships remained idle in Vancouver, resulting in millions of dollars in demurrage charges and on-farm operating debts being unpaid. Grain prices were dropping, and farmers were losing that window to sell their crop.

That all came as a direct result of the Conservatives' Fair Rail Freight Service Act, Bill C-52, introduced in the House before 2012. They had the opportunity. It was supposed to rectify the imbalance in market power between the farmers and railroads. The Conservatives took the Wheat Board out and had an opportunity to put something else in its place, and they did not. Bill C-52, an act to amend the Canada Transportation Act, was a great opportunity. We could have had a real rail act then. There were recommendations made, and we would not have had the $8 billion loss that we had to deal with.

In the continued spirit of an open and fair market, a need exists for an oversight to ensure that complaints against parties can be addressed in an appropriate manner. There is a strong need for the ability for shippers to seek solutions to problems arising during their interactions with the railroads. In order to effectively address issues that occur in the fulfilment of service level agreements, the complaint mechanism must allow not only for shippers to seek arbitration efficiently and fairly, but also for each party to be on equal footing. That is very important. Everybody has to be on equal footing to make this system work because everybody is accountable.

During the passage of Bill C-52, the Coalition of Rail Shippers made several recommendations, which we in the Liberal Party supported. However, none of those resolutions were passed back in 2012.

Many prairie groups agreed that the legislation needed to be amended to make it easier to hit the railroad companies with fines over transportation bottlenecks. If it had stuck then, the railroads might have complied with it last year.

This eventually brought forward Bill C-30, which was the bill we dealt with just last year, an act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures. That was introduced by the government in March of 2013. The measures being imposed will expire in another year's time.

As I said, there is no long-term solution for the farmers. The government is putting Band-Aids on as we go along. There is no long-term solution that will keep the same situation from happening again and again. The crops are going to continue to do well, they are going to get bigger, and there is no solution.

Many agronomists and public servants at the agriculture department have said that these harvests are only going to get bigger and better, which is great, but we have to get those crops to the Asian markets especially and to the United States. The bill does not attempt to find a long-term solution for farmers.

The fact that the measures will expire demonstrates yet again that the Conservatives see this as a political short-term issue, while in reality, this is a structural issue farmers are faced with. The problem could very well resurface at the next harvest.

This year, as bad as it was, there are still bottlenecks, and it is not working well. Farmers are still shipping grain that was produced the year before, and last year was just an average year.

The minister has brought forward pieces of legislation that seem to be reacting to the issue rather than leading the way, on the agriculture front, on a long-term solution. It seems that members only have a chance to debate agriculture-related bills in the House when something is going wrong. There is no long-term vision. When something happens, then it is brought to the House. It seems that this is what happens every time.

The most recent grain transportation crisis is a prime example. The government waited months and months before acting. Then it scrambled together a bill that could help farmers get their grain moving. The government only acts when it needs to, and it delays action as much as possible, because it is all politically driven.

Farm lobby groups in Saskatchewan and Manitoba say that fines levied against Canada's two largest railroads stemming from the provisions in Bill C-30 do not reflect the damage caused when the companies failed to transport the minimum required grain volumes last year. The railroads are going to be fined, but even if they get the money from the railroads, it will go to the government. It will not pay the farmers who are losing money while the crops are stored in their buildings or bins.

Norm Hall is president of the Agricultural Producers Association of Saskatchewan. He represents a lot of farmers in Saskatchewan. He says that farmers are frustrated about the fallout from months of railway backlogs following last year's bumper grain crop. He stated:

“There's also some relief that the federal government did step forward, but there's still frustration. The one thing that bothers us most about this is that fine, that money, goes to government [instead of the farmers who are losing the money]. It in no way goes to those that were hurt...be it the producers or the grain companies.”

He also said that the fines are a drop in the bucket for the railways. He is a representative of the farmers in Saskatchewan.

Also, Doug Chorney, who represents many producers in Manitoba and is head of Keystone Agricultural Producers in Manitoba, said there needs to be a way to compensate shipping companies and farmers who are adversely affected by rail delays. He stated:

A fine of such [a] small amount really doesn't reflect the kind of damage poor service is impacting on shippers and farmers. We've always had challenges with reliable and adequate service from railways because of different planning issues, not always because of capacity. We do have fundamental challenges in terms of making sure we have a system that's well-co-ordinated. ....we can't be left to wait months and months for rail service.

In March 2014, the Minister of Transport said fines against rail companies could total up to $100,000 a day. What happened? She came out with $100,000 a week. That is a big change, from $100,000 to $100,000 a week.

To wrap up, what the government has done is not working for farmers. It is not working for customers around the world who need our grain so badly. We should have a long-term plan, and that is why I am bringing this motion forward.

Agriculture and Agri-Food

[Lisa Raitt, Conservative, Minister of Transport]

Mr. Speaker, again I want to personally thank the Minister of Agriculture and Agri-Food for his great work on the file, to ensure that we are working together as a government on this matter.

We should also talk to the people out there who are the ones who are the beneficiaries of Bill C-30.

Brett Halstead, president of the Canadian Canola Growers Association stated:

This action demonstrates that Government is listening to farmers' concerns. We look forward to working with the Government and other industry stakeholders.

Quite frankly, the opposition is not in the game on this one. The government is the one that is dealing with this on a daily basis and is out front through the minister.

Motions in Amendment

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I am very pleased to rise in the House today to speak to Bill C-13, which has already been debated for three hours today and has just come back from the Standing Committee on Justice and Human Rights.

A lot of hard work has been done on this bill. I am thinking, in particular, of the many witnesses who appeared before the committee. I am happy to hear that good work was done in committee.

However, the results of that work are perhaps not quite what we on this side of the House expected. Unfortunately, the amendments that were made to this bill were not sufficient for us to be able to support it at report stage.

I must first say that this bill may be a rather sensitive subject for some people. It may hit close to home and be a sensitive subject for some people because it involves bullying and there is often mention of the unfortunate incidents that were reported in the media. It is vital that we remember the importance of the work we are doing as parliamentarians to try to address this issue, which sometimes has tragic consequences. Bullying is a problem in our society that has evolved over the past few decades. Obviously, the Internet is one of the elements that has changed the problem of bullying. It is becoming easier to bully someone online today because we can easily access the Internet with our cellphones and computers.

This problem has evolved and has become quite a significant issue for our youth and also for adults. As parliamentarians, we must discuss this problem and try to solve it, even though there is no magic solution. We have to consider the underlying causes. My colleague from La Pointe-de-l'Île often talks about the underlying causes. Furthermore, we must not believe that the solution to the problem is to create a Criminal Code offence and that all of a sudden there will be no more bullying. It is never that simple. It is therefore important to discuss this problem and other ways of dealing with it.

We were also somewhat disappointed with the process that led to the drafting of this bill. Members will remember that Bill C-30 was also introduced in the first session of the 41st Parliament and that there was significant opposition to that bill from civil society and the different political parties. It is unfortunate that Bill C-13 contains some of what was widely rejected in Bill C-30. I am talking about the provisions concerning the electronic surveillance of Canadians.

My impression is that the government is taking Bill C-13 and the issue of bullying—which is a very important and sensitive issue—and integrating certain parts of Bill C-30, which was very controversial, as I said. It was abandoned by the Conservatives after the uproar that followed its introduction. It is sad that they are using this tactic and are trying to do indirectly what they said they would not do. It was abandoned. It is disappointing to see that it is now being included in Bill C-13.

This issue could have been settled quickly, or at least more quickly. I do not think that we are going to solve the problem of bullying overnight. However, we could have at least moved in the right direction.

The hon. member for Dartmouth—Cole Harbour introduced a worthwhile bill. Unfortunately, it did not receive the Conservatives' support. However, one part of his bill did find its way into the Conservatives' current bill. I find that somewhat curious.

If I understand correctly, the Parliamentary Secretary to the Minister of Justice seems to have an explanation. He says that it is all well and good to add an offence to the Criminal Code, but it is also important to grant investigative powers to the police.

I do not remember when exactly during the process of studying the bill this happened—it may have been the day after it was introduced—but the Spencer decision provided some clarification. Unfortunately, the bill did not change, even in light of the decision, which defined the limits that can be placed on electronic surveillance and the amount of personal information Internet service providers can share about Canadians.

I believe that the government should have complied with the Spencer decision, but that is not the case, unfortunately. That is the main reason we are opposing this bill.

I would like to clarify the court's decision in Spencer, which had to do with providers sharing information. The decision clearly established that Canadians had the right to online anonymity and that the police had to get a warrant to find out Internet users' identity.

However, Bill C-13 creates a new policy that allows access to personal information with or without a warrant. This opens the door to obtaining personal information without a warrant even though the Spencer decision said the opposite. It said that a warrant was absolutely necessary to get personal information about a Canadian citizen on the Internet.

Internet service providers have access to that information. They can find that information and share it with law enforcement to investigate bullying cases, for example. The Spencer decision set boundaries for getting information by requiring a warrant. However, Bill C-13 opens the door to getting personal information without a warrant.

All of this is unfolding in an era when people have growing concerns about electronic surveillance because the government is monitoring our actions more and more. Not long ago, groups met peacefully to talk about issues or met in the streets to demonstrate. We know that the government, which has thousands of employees who monitor Canadians, would watch what such groups were doing during those completely peaceful meetings and demonstrations that could not have given anyone any reason to believe there was a threat to Canada's security.

This is unfolding in an era when people feel that the government is collecting more and more information about Canadians. We also have to set clearer boundaries about how this information is obtained and about Canadians' right to privacy.

I would be pleased to answer my colleagues' questions.

Agriculture and Agri-Food

[Pierre Lemieux, Conservative, Parliamentary Secretary to the Minister of Agriculture]

Mr. Speaker, let us look at Bill C-30. It was introduced into the House on an urgent basis and passed by the House on an urgent basis. It increases supply chain transparency, it strengthens contractual mechanisms between producers and shippers and it helps to ensure that the entire grain handling and transportation system is working at its capacity. It obligates the rail companies to move one million metric tonnes of grain a week.

This system is working and it is serving our western Canadian grain farmers.

[Pierre Lemieux, Conservative, Parliamentary Secretary to the Minister of Agriculture]

Mr. Speaker, the Prime Minister and the Minister of Agriculture showed tremendous leadership by tabling Bill C-30, the Fair Rail for Grain Farmers Act, to solve the serious grain transportation problems that were present in Canada. The bill was well received across Canada by stakeholders and right here in the House. It was a bill that was clear and unequivocal and it set ambitious but realistic goals.

The latest figures show that our government's efforts to get grain moving are working.

Energy Safety and Security Act

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Mr. Speaker, I would like to thank my hon. colleague for all of his hard work on behalf of his constituents.

Today, I read an op-ed in the Manitoba Co-operator, where my colleague from Welland was quoted as saying that we all came together as parties to move through Bill C-30, the railway act. Here we had this instance of co-operation. It is something that often does not happen. All parties got together, the government listened, we made suggestions and, all of a sudden, we had a bill that benefited all Canadians.

This is a golden opportunity for this bill to go to committee and for the government to listen and not do what it did, for example, when I was on the agriculture committee studying the food safety bill. Both the NDP and the Liberal Party provided something like 25 amendments, and not one was accepted. That is not how government works and that is not how democracy should work. This is an opportunity.

I welcome the question from the member for Winnipeg North. I really hope that once it gets to committee, we will have this debate and strengthen the bill so it will be our bill on behalf of Canadians, not just the government's bill.

Extension of Sitting Hours

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

moved:

That, notwithstanding any Standing Order or usual practice of the House, commencing upon the adoption of this Order and concluding on Friday, June 20, 2014:

(a) on Mondays, Tuesdays, Wednesdays and Thursdays, the ordinary hour of daily adjournment shall be 12 midnight, except that it shall be 10 p.m. on a day when a debate, pursuant to Standing Order 52 or 53.1, is to take place;

(b) subject to paragraph (d), when a recorded division is demanded in respect of a debatable motion, including any division arising as a consequence of the application of Standing Order 61(2), but not including any division in relation to the Business of Supply or arising as a consequence of an order made pursuant to Standing Order 57, (i) before 2 p.m. on a Monday, Tuesday, Wednesday or Thursday, it shall stand deferred until the conclusion of oral questions at that day’s sitting, or (ii) after 2 p.m. on a Monday, Tuesday, Wednesday or Thursday, or at any time on a Friday, it shall stand deferred until the conclusion of oral questions at the next sitting day that is not a Friday;

(c) the time provided for Government Orders shall not be extended pursuant to Standing Order 45(7.1);

(d) when a recorded division, which would have ordinarily been deemed deferred to immediately before the time provided for Private Members’ Business on a Wednesday governed by this Order, is demanded, the said division is deemed to have been deferred until the conclusion of oral questions on the same Wednesday;

(e) any recorded division which, at the time of the adoption of this Order, stands deferred to immediately before the time provided for Private Members’ Business on the Wednesday immediately following the adoption of this Order shall be deemed to stand deferred to the conclusion of oral questions on the same Wednesday;

(f) a recorded division demanded in respect of a motion to concur in a government bill at the report stage pursuant to Standing Order 76.1(9), where the bill has neither been amended nor debated at the report stage, shall be deferred in the manner prescribed by paragraph (b);

(g) for greater certainty, this Order shall not limit the application of Standing Order 45(7);

(h) no dilatory motion may be proposed, except by a Minister of the Crown, after 6:30 p.m.; and

(i) when debate on a motion for the concurrence in a report from a standing, standing joint or special committee is adjourned or interrupted, the debate shall again be considered on a day designated by the government, after consultation with the House Leaders of the other parties, but in any case not later than the twentieth sitting day after the interruption.

Mr. Speaker, I am pleased to rise to speak to the government's motion proposing that we work a little bit of overtime over the next few weeks in the House.

I have the pleasure of serving in my fourth year as the government House leader during the 41st Parliament. That is, of course, on top of another 22 months during a previous Parliament, though some days it feels like I am just getting started since our government continues to implement an ambitious agenda that focuses on the priorities of Canadians. We still have much to do, and that is the basis for Motion No. 10, which we are debating today. Regardless of what other theories that folks might come up with, our objective is simple: to deliver results for Canadians, results on things Canadians want to see from their government.

As government House leader, I have worked to have the House operate in a productive, orderly, and hard-working fashion. Canadians expect their members of Parliament to work hard and get things done on their behalf. We agree, and that is exactly what has happened here in the House of Commons. However, do not take my word for it. Let us look at the facts.

In the previous session of the 41st Parliament, 61 government bills received royal assent and are now law. In 2013 alone, which was a shorter parliamentary year than normal, the government had a record-breaking year with 40 bills becoming law, more than any other calendar year since we took office, breaking our previous record of 37 new laws in 2007 when I also had the honour to be the leader of the House. That is the record of a hard-working, orderly, and productive Parliament. With more than a year left in this Parliament, the House has accomplished so much already, handing many bills over to the Senate for the final steps in the legislative process.

Just as we had a record year for legislative output, Canadian grain farmers experienced a bumper crop with a record yield in 2013. Understanding the real challenges faced by grain farmers, our government acted quickly on Bill C-30, the fair rail for grain farmers act, moving the bill through three readings and a committee study before handing it over to the Senate. This bill would support economic growth by ensuring that grain is able to get to market quickly and efficiently. The House also passed Bill C-23, the fair elections act, which would ensure that everyday citizens are in charge of democracy, ensuring the integrity of our electoral system and putting rule breakers out of business.

Two supply bills received royal assent, thereby ensuring that the government has the money it needs to continue providing services to the people.

When we passed Bill C-25, the Qalipu Mi'kmaq First Nation Act, we fulfilled our promise to protect the Qalipu Mi'kmaq First Nation's enrolment process, making it fair and equitable while ensuring that only eligible individuals will be granted membership.

Earlier this spring, royal assent was also given to Bill C-16, the Sioux Valley Dakota Nation Governance Act, making the Sioux Valley Dakota Nation the first self-governing nation on the prairies and the 34th aboriginal community in Canada to achieve self-governance.

Next on the agenda is Bill C-34, the Tla'amin Final Agreement Act, which will implement the agreement with the Tla'amin Nation. Bill C-34 will give the Tla'amin increased control over their own affairs. They will have ownership of their land and resources and will be able to create new investment opportunities and make decisions determining their economic future.

We considered and passed through all stages of Bill C-5, the Offshore Health and Safety Act, which will enhance safety standards for workers in Canada’s Atlantic offshore oil and gas industry to protect Canadians and the environment while supporting jobs and growth.

Bill C-14, the Not Criminally Responsible Reform Act, became law just a few weeks ago. This act will ensure that public safety should be the paramount consideration in the decision-making process involving high-risk accused found not criminally responsible on account of mental disorder.

Also, this spring, our government passed Bill C-15, the Northwest Territories Devolution Act, which honoured our government's commitment to giving northerners greater control over their resources and decision-making and completing devolution all before the agreed-upon implementation date of April 1, as well as Bill C-9, the First Nations Elections Act, which supports the Government of Canada's commitment to provide all Canadians with strong, accountable, and transparent government. Bill C-9 provides a robust election framework, improves the capacity of first nations to select leadership, build prosperous communities, and improve economic development in their communities.

However, despite these many accomplishments, there is more work to be done yet before we return to our constituencies for the summer, let alone before we seek the privilege of representing our constituents in the 42nd Parliament.

During this mandate, our government's top priority has been jobs, economic growth and long-term prosperity.

It is worth saying that again. During this mandate, our government's top priority has been jobs, economic growth, and long-term prosperity. That continues. Through three years and four budgets since the 2012 budget, we have passed initiatives that have helped create hundreds of thousands of jobs for Canadians, as part of the one million net new jobs since the global economic downturn. We have achieved this record while also ensuring that Canada's debt burden is the lowest in the G7 and we are on track to balance the budget in 2015.

As part of our efforts to build on this strong track record, our government has put forward this motion today. Motion No. 10 is simple. It is straightforward. It would extend the hours of the House to sit from Monday through Thursday. Instead of finishing the day around 6:30 p.m. or 7 p.m., the House would, instead, sit until midnight. This would give us an additional 20 hours each week to debate important bills. Of course, the hours on Friday would not change.

Extended sitting hours is something that happens practically every June. Our government just wants to roll up its sleeves and work a little harder a bit earlier this year.

Productivity is not just a function of time invested, but also of efficiency. To that end, our motion would allow most votes to be deferred, automatically, until the end of question period to allow for all hon. members' schedules to be a bit more orderly.

Last year, we saw the New Democrats profess to be willing to work hard. Then, mere hours later, after the sun would go down and people were not watching, what would the NDP do? It would suggest we pack it in early and move adjournment, without any accomplishment to show for it.

In order to keep our focus on delivering results and not gamesmanship, we are suggesting that we use our extra evening hours to get something done, not to play idle, unproductive games. We are interested in working hard and being productive, and doing so in an orderly fashion. That is the extent of what Motion No. 10 would do. Members on this side of the House are willing to work a few extra hours to deliver real results for Canadians. What results are we seeking? Bills on which we want to see progress, that are of great significance to Canadians, are worth spending a little extra time to see them considered and, ideally, passed.

Of course, we have the important matter of passing Bill C-31, Economic Action Plan 2014, No. 1. This bill implements our government’s budget—a low-tax plan for jobs, growth and a stronger Canadian economy. It is also an essential tool in placing the government on track to balanced budgets, starting in 2015.

We have a number of bills that continue to build on the work we have done in support of victims of crime. Bill C-13, the Protecting Canadians from Online Crime Act, is another essential piece of legislation that will crack down on cyberbullies and online threats by giving law enforcement officials the tools necessary to investigate and tackle these crimes. We are taking clear action to combat cyberbullying and I ask the opposition to join us in this pursuit.

Every day in Canada, our most vulnerable—our children—are the victims of sexual abuse. This is truly unacceptable and as a society we must do our part to better protect our youth. With Bill C-26, the Tougher Penalties for Child Predators Act, we are doing our part.

Our government's comprehensive legislation will better protect children from a range of sexual offences, including child pornography, while making our streets and communities safer by cracking down on the predators who hurt, abuse, and exploit our children.

Therefore, I ask the opposition to work with us, support this important piece of legislation by supporting this motion.

It is also important that we move forward with one of the most recent additions to our roster of other tackling crime legislation. Last month, we introduced Bill C-32, the victims bill of rights act, which will give victims of crime a more efficient and more effective voice in the criminal justice system. It seeks to create clear statutory rights at the federal level for victims of crime, for the first time in Canada's history. The legislation would establish rights to information, protection, participation, and restitution, and ensure a complaint process is in place for breaches of those rights on the part of victims. It would protect victims, and help to rebalance the justice system to give victims their rightful place. I hope we can debate this bill tomorrow night. By passing Motion No. 10, we will make that possible.

Our efforts to protect families and communities also extend to keeping contraband tobacco off our streets, so that the cheap baggies of illegal cigarettes do not lure children into the dangers of smoking. Bill C-10, the tackling contraband tobacco act, would combat this by establishing mandatory jail time for repeat offenders trafficking in contraband. Aside from protecting Canadian children from the health hazards of smoking, it will also address the more general problems with trafficking and contraband tobacco propelled by organized crime roots. With luck, I hope we can pass this bill on Friday.

Just before the constituency week, the Prime Minister announced Quanto's law. Bill C-35, the justice for animals in service act, would pose stiffer penalties on anyone who kills or injures a law enforcement, military, or service animal. I know that the hon. member for Richmond Hill, having previously introduced a private member's bill on the subject, will be keen to see the extra time used to debate and pass this bill at second reading before we head back to our constituencies.

Bill C-12, the drug-free prisons act, could also have a chance for some debate time if we pass Motion No. 10. This particular bill will tackle drug use and trade in the federal penitentiaries to make the correctional system a safer place, particularly for staff, but also for inmates, while also increasing the potential for success and rehabilitation of those inmates. As a former public safety minister, I can say that this is indeed an important initiative.

Delivering these results for Canadians is worth working a few extra hours each week. Our clear and steady focus on the strength of our Canadian economy does not simply apply to our budgets. We will also work hard next week to bring the Canada-Honduras free trade agreement into law. Bill C-20, the Canada-Honduras economic growth and prosperity act, would enhance provisions on cross-border trading services, investment, and government procurement between our two countries. It would also immediately benefit key sectors in the Canadian economy, by providing enhanced market access for beef, pork, potato products, vegetable oils, and grain products.

As a former trade minister, I can say first-hand that this government understands that trade and investment are the twin engines of the global economy that lead to more growth, the creation of good jobs, and greater prosperity. Trade is particularly important for a country like Canada, one that is relatively small yet stands tall in terms of its relationship and ability to export and trade with the rest of the world. If we are to enjoy that prosperity in the future, it is only through expanding free trade and seizing those opportunities that we can look forward to that kind of long-term prosperity.

Through Bill C-18, the agricultural growth act, we are providing further support to Canada's agriculture producers. This bill would modernize nine statues that regulate Canada's agriculture sector to bring them in line with modern science and technology, innovation, and international practices within the agriculture industry. The act will strengthen and safeguard Canada's agriculture sector by providing farmers with greater access to new crop varieties, enhancing both trade opportunities and the safety of agriculture products, and contributing to Canada's overall economic growth.

As the House knows, our government has made the interests of farmers a very important priority. We recognize that since Canada was born, our farmers in our agriculture sector have been key to Canada's economic success. As a result, Bill C-18 will be debated this afternoon. It would be nice to have the bill passed at second reading before the summer, so that the agriculture committee can harvest stakeholder opinion this autumn.

Over the next few weeks, with the co-operation and support of the opposition parties, we will hopefully work to make progress on other important initiatives.

My good friend, the President of the Treasury Board, will be happy to know that these extra hours would mean that I can find some time to debate Bill C-21, the red tape reduction act. This important bill should not be underestimated. It would enshrine into law our government's one-for-one rule, a successful system-wide control on regulatory red tape that affects Canadian employers. Treasury Board already takes seriously the practice of opining that rule, but we want to heighten its importance and ensure that it is binding on governments in the future. We want to ensure that Canadians do not face unreasonable red tape when they are simply trying to make a better living for themselves, and creating jobs and economic growth in their communities.

Another important government initiative sets out to strengthen the value of Canadian citizenship. For the first time in more than 35 years, our government is taking action to update the Citizenship Act. Through Bill C-24, the strengthening Canadian Citizenship Act, we are proposing stronger rules around access to Canadian citizenship to underline its true value and ensure that new Canadians are better prepared for full participation in Canadian life. This legislation will be called for debate on Wednesday.

The health and safety of Canadians is something that our government believes is worthy of some extra time and further hard work in the House of Commons.

Tomorrow evening, we will debate Bill C-17, the protecting Canadians from unsafe drugs act. Under Vanessa's law, as we have called it, we are proposing steps to protect Canadian families and children from unsafe medicines. Among other actions, the bill would enable the government to recall unsafe drugs, require stronger surveillance, provide the courts with discretion to impose stronger fines if violations were intentionally caused, and compel drug companies to do further testing on a product. In general, the bill would make sure that the interests of individual Canadians are looked out for and become a major priority when it comes to dealing with new medications and drugs.

Bill C-22, the energy safety and security act, would modernize safety and security for Canada's offshore and nuclear energy industries, thereby ensuring a world-class regulatory system, and strengthening safety and environmental protections. This legislation, at second reading, will be debated on Thursday.

Bill C-3, the safeguarding Canada's seas and skies act, could pass at third reading under the extended hours, so that we can secure these important updates and improvements to transportation law in Canada.

We could also pass the prohibiting cluster munitions act. As the Minister of Foreign Affairs explained at committee, the Government of Canada is committed to ridding the world of cluster munitions. Bill C-6 is an important step in that direction, but it is just the beginning of our work. Extending the relevant elements of the Oslo Convention into domestic law would allow Canada to join the growing list of countries that share that same goal. I hope members of all parties will support us in this worthy objective.

By supporting today's motion, the opposition would also be showing support for Canada's veterans. The extra hours would allow us to make progress on Bill C-27, the veterans hiring act. The measures included in this legislation would create new opportunities for men and women who have served their country to continue working for Canadians through the federal public service. As a nation, we have a responsibility to ensure that veterans have access to a broad range of programs and services to help them achieve new success after their time in uniform is complete. This initiative would do exactly that.

Of course, a quick reading of today's order paper would show that there are still more bills before the House of Commons for consideration and passage. I could go on and on, literally, since I have unlimited time to speak this afternoon, but I will not. Suffice it to say that we have a bold, ambitious, and important legislative agenda to implement. All of these measures are important, and they will improve the lives of Canadians. Each merits consideration and hard work on our part. Canadians expect each one of us to come to Ottawa to work hard, to vote on bills, to make decisions, and to get things done on their behalf.

I hope that opposition parties will be willing to support this reasonable plan and let it come to a vote. I am sure that members opposite would not be interested in going back to their constituents to say that they voted against working a little overtime before the House rises for the summer.

I commend this motion to the House and encourage all hon. members to vote for adding a few hours to our day to continue the work of our productive, orderly, and hard-working Parliament, and deliver real results for Canadians.

Transport—Main Estimates, 2014–15

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Chair, today I was talking to one of the minister's colleagues from Alberta. He has been unable to get his grain off to market. We can only hope for better next year, but we cannot be assured. We just hope that more and more of our farmers will not go belly-up.

My next question is this. If the minister thinks the changes in Bill C-30 to deal with the grain crisis are important, why do they all have sunset clauses?

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Chair, I assume that the regulations in all cases will be prepared well in advance of the beginning of the next crop year, on August 1, so farmers will be sure to know what they are.

Under Bill C-30, the section that empowers the Canadian Grain Commission to create regulations specifically contemplates penalties for performance failures, but the section in Bill C-30 that empowers the CTA to create regulations does not specifically refer to reciprocal penalties. Why is there a difference in the language? Does the government in fact plan that the regulations with respect to the railways not have that crucial power of reciprocal penalties? Will they be there or not?

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Chair, Bill C-30 is largely enabling legislation that would give the power to create regulations. Producers do not have a good idea about what the legislation would do until they actually see the regulations. The consultation has not yet started with respect to the regulations, and the weeks and months are ticking by.

I wonder if the minister can indicate when the consultation with stakeholders, even on an informal basis, will get under way so that they can know what is being contemplated under those regulations.

Will those regulations provide specific definitions of what constitutes level of service and how level of service will be measured in terms of performance? Will those regulations provide specifically for reciprocal penalties to be applied, which every single one of the witnesses before the parliamentary committee said was necessary?

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, that is exactly why we have introduced Bill C-30, and that is why we enjoy the support of all parties on C-30, because we want to get to the right place, and the right place is ensuring that we are moving as much grain as we possibly can.

However, we cannot forget or deny the fact that this has been a bumper crop year. We have seen an increase of over 33% over previous years. We had anticipated there would be a higher carry-out if it continued along at the same level. That is why we found it necessary and important to issue an order to the railway companies to make sure that they are moving a million tonnes of grain a week so that we can move and clear out as much of this backlog as possible.

Even more important is preplanning. Commencing next year, in coordination with the CTA, I would be, as minister, in the position of being able to discuss and plan at the front end what the crop looks like and how we will accomplish moving the crop. It is something in which we believe very strongly and in which we are taking strong action.

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Chair, I am glad to have this opportunity to question the minister. I must say that in response to the last exchange, it certainly does stand out that the government is spending close to $100 million on rail safety and close to $600 million on tax-paid government advertising.

I would like to take the minister to Bill C-30, the issue of grain transportation in western Canada and the horrendous backlog of grain transport this last year. The industry is forecasting, and indeed, I think the minister herself used this number, that the carry-forward at the end of this particular crop year will be something in the order of 23 million tonnes that was grown last year but was unable to be shipped because the grain handling and transportation system failed so badly. If that is the carry-over on top of even a normal crop in western Canada this summer, the industry will be facing much the same challenge this year as it faced last year. It will be a huge problem for a great many farmers.

Will the government ensure that the system, which failed last year, will not fail this coming year, that it is ready to cope with that volume and that it is ready to cope with other exigencies, like difficult weather conditions? Will farmers have that assurance?

Fair Rail for Grain Farmers Act

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, there have been consultations, and if you seek it, I believe you will find unanimous consent for the following motion regarding Bill C-30, which was just reported back.

I move:

That, notwithstanding any standing order or usual practices of this House, Bill C-30, An Act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures, be deemed concurred in at the report stage and deemed read a third time and passed.

(Bill C-30. On the Order: Government Orders)

May 1, 2014—Report stage of Bill C-30, An Act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures.

Agriculture and Agri-Food

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I have the honour to present, in both official languages, the third report of the Standing Committee on Agriculture and Agri-Food in relation to the order of reference recommitting Bill C-30, An Act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures.

The committee has studied this bill and has decided to report the bill back to the House with amendments.

Opposition Motion—Safeguarding of Personal Information

[Charmaine Borg, NDP, Terrebonne—Blainville, QC]

moved:

That, in the opinion of the House, the government should follow the advice of the Privacy Commissioner and make public the number of warrantless disclosures made by telecommunications companies at the request of federal departments and agencies; and immediately close the loophole that has allowed the indiscriminate disclosure of the personal information of law-abiding Canadians without a warrant.

Mr. Speaker, I would like to begin by stating that I will be sharing my time with my colleague from Timmins—James Bay.

I am very pleased today to move this motion to ensure that justice is served for Canadians. However, I am very disappointed to have to rise once again to protest this government's extremely reprehensible actions.

I would have thought that, after three years, it would have finally understood. However, once again, the government has been caught spying on its own people.

With such ridiculous statements as, for example, if we did not support bill C-30 we were siding with pedophiles, the government has constantly tried to minimize the impact of its proposed measures on the lives of Canadians, all the while boasting and insinuating that it is proposing reasonable and necessary measures, which has been proven to be false by many impartial stakeholders.

The Conservative government called our assessment “speculation and unwarranted fearmongering” or a series of outlandish conspiracies made up by the NDP. After being harshly criticized by the public, media, and civil liberty and rights groups, as well as by privacy experts, the government finally listened and withdrew these bills or let them die on the order paper.

However, we still need to point out that exploiting the personal information on Canadians without reasonable cause and without a warrant is a huge violation of their privacy. I do not think I have heard about 1.2 million criminals being convicted of accessing personal information in 2011.

Last week, new revelations showed that government agencies and departments allegedly asked telecommunications companies to share personal information with them without a warrant. Not once, not a hundred times or a thousand times. They asked 1.2 million times.

We condemn this highly questionable tactic, since there is no legislative oversight to determine whether the government's reasons for accessing this information were valid.

Like many Canadians, I understand and support the need for security authorities to have the tools they need to fight crime in our country and to make us feel safe at home.

However, how can the government justify 1.2 million requests in a single year to achieve that goal? That happened in 2011, and the government was not required to explain what this information was necessary or how and for what it would be used.

When I think of the majority of Canadians who abide by the law and who could be affected by these requests, I find it unacceptable, disgusting and incomprehensible that the government is treating them like criminals.

The privacy of Canadians has been taken lightly by past Liberal and Conservative governments for far too long, and Canadians affected by the thousands of data breaches in government agencies are paying the price. To hear that the government is snooping on them as though they were common criminals when they have done nothing wrong is another blow on top of it all. Last week the government tried to make us believe these requests were made for public safety reasons, but let us look at the case of the CBSA.

In response to my order paper question, after reviewing the number of requests made from the CBSA in one year, we find that no requests were made in exigent circumstances. The 18,849 others were made in non-exigent circumstances. From these requests, only two were made for national security reasons, none for terrorism alerts, none for foreign intelligence, and none on the grounds of child exploitation, so it is hard to believe the government when it says that these millions of requests were made for national security reasons when the numbers speak a very different truth.

Canadians understand that law enforcement institutions need information to identify, catch and judge criminals. However, when the government makes 1.2 million requests for Canadians' private information from telecommunications companies per year, that is not just about cracking down own crime; that is spying.

The vast majority of Canadians are law-abiding. There is no reason for the government to engage in such broad spying activities. If the Canadian government decides to spy on its own citizens, it should do so only if it has reason to suspect them and only with a warrant.

If the law permits this kind of warrantless spying, the law must be changed immediately, and that is what the NDP is trying to do today. If the government needs a warrant to listen to Canadians' phone conversations, the same should apply to their online activities.

We understand that certain extremely urgent circumstances do not permit the obtaining of a warrant. However, the information we received from the Privacy Commissioner last week goes far beyond the imaginable: 1.2 million requests for subscriber data without a warrant is unacceptable and unjustifiable.

In Canada, we are very lucky to have a legal framework for obtaining a warrant. That framework protects Canadians and prevents abuses by the authorities. Unfortunately, there is a loophole in the system the Liberals introduced.

Today, the Conservatives are taking advantage of that loophole to spy on their own citizens. Clearly, the government is no longer in control of the warrantless disclosure procedures.

As I said earlier, the Conservatives' spying cannot be justified on national security grounds. Moreover, it is done in secret. The Privacy Commissioner is not even informed.

If the government had a real, viable motive for snooping on Canadians, it would have no problem whatsoever with warning Canadians when they were being snooped on, it would have no issue working with the OPC, and it would strengthen our laws to better protect Canadians against these types of abuses.

We do not know why, how often or how long the government has been spying. What is even more incredible is that the Conservatives have long been trying to expand the legal framework around requesting information without a warrant. If the government decides to spy on Canadians, there should be just cause, it should be overseen by the courts and it should happen only under exceptional circumstances.

What is even more ridiculous than the government's unwillingness to protect Canadians' privacy is its complete lack of understanding about the scope of the problem. Just last week, the Privy Council Office asked that all departments provide details about the number of personal information requests submitted to various telecommunications companies over the past three years.

That proves that the government has abused the loophole in the law to the point where it has lost control of its departments on this issue.

The Conservatives have proven that they are unable to protect the privacy of Canadians. The Privacy Act dates back to 1983, before the arrival of the Internet, and PIPEDA has not been updated since 2000, before the age of social media.

Instead of strengthening the laws and increasing government accountability, the Conservatives are moving in the other direction. Instead of protecting Canadians' privacy, Bills C-13 and S-4 will increase the likelihood that the government will spy on its own citizens. From an ethical standpoint, that is extremely problematic.

With Bill C-13 alone, the government would expand the number of people who can make requests for subscriber data so that even people like Rob Ford could access our personal information. It would create legal immunity for voluntary disclosure of personal information and it would expand the circumstances under which personal information could be disclosed.

As if that were not enough, the government is using taxpayers' money to spy on them. Government agencies pay telecommunications companies between $1 and $3 for each information request. That means that, at the very least, Canadian taxpayers have paid between $1.2 million and $3.6 million to be spied on. I say that is the minimum because only some of the telecommunications companies have disclosed how often they provide information to the government.

If all of those information requests were justified, and if the telecommunications companies were not worried about disclosing their practices, I would likely not be making this speech today. Unfortunately, the Conservatives are trying so hard to hide their spying that it is worrisome.

What are they using all that personal information for? Can they even justify the importance of the information? It is clear that the government believes that Canadians are criminals because it spies on them without their knowledge, as though it suspected them of something. This motion defends the privacy rights of law-abiding Canadians, and it is meant to counter the government's nefarious attempts to get information by the back door.

Since becoming the critic for digital issues, I have risen dozens of times to draw attention to and criticize the alarming state of our privacy laws. Laws that are meant to properly protect us in the digital age should have been revised years ago and are now unsuitable for protecting the public and our children.

In my time as opposition critic for digital issues, I have seen not one but four different pieces of legislation introduced in the House that would facilitate government snooping instead of fixing the problem.

Canadians are worried. They are right to be. The Internet that they have known as an open and free space for social and political discussions is threatened by the snooping of their very own government. Law-abiding citizens should be able to benefit from the Internet without the threat of being treated like common criminals.

I ask all my colleagues to vote in favour of our motion in order to restore Canadians' trust in matters concerning the protection of their privacy and of the Internet as the social and political tool it should be.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, first, let me acknowledge my colleagues', and I say that in the plural, co-operation with respect to both Bill C-30, the fair rail for grain farmers act, and Bill C-25, the Qalipu Mi'kmaq first nation act, today. We appreciate that co-operation.

This afternoon, we will continue with the second reading debate on Bill C-33, the first nations control of first nations education act. That debate will conclude tomorrow and we will then proceed with a committee study of this important legislation this spring.

Monday shall be the fourth allotted day. We will debate a proposal from the New Democrats.

The Liberals will then get their turn on Tuesday, which shall be the fifth allotted day. I am still waiting to see a proposal from the Liberal leader on the economy. Maybe he is still finessing his newest definition of the middle class. I recommend to him the recent study from the U.S.A., the one that has been widely reported, which demonstrated that the Canadian middle class, according to his recent definition, that is the median income, is doing better than ever in history. For the first time, the Canadian middle class is doing better than its American counterpart. Perhaps we will see that on Tuesday as the subject of debate in the Liberal motion, since they claim that the middle class is their priority.

On Wednesday, we will start the report stage debate on Bill C-23, the fair elections act. I want to take this time to acknowledge the hard work of the members of the procedure and House affairs committee. My friend was just talking about the hard work they have been undertaking and the difficult pressure they are under. Largely, it should be said, it is a result of the lengthy filibuster, of which the New Democrats were so proud, at the start, whereby the committee lost many days, when it could have heard witnesses.

Notwithstanding that loss of work, those delay tactics, and the obstruction by the New Democrats, the committee has got on with its work. It heard from almost 70 witnesses. It had over 30 hours of meetings. Now it has gone on to complete about a dozen or so hours of detailed study of the clauses of the bill and the government's reasonable and common-sense amendments to the bill. I expect that it will complete that work shortly.

Despite the long hours the committee members are putting in, I know that they will be keenly anticipating the appearance, before the next constituency week, of the Leader of the Opposition at that same committee. That will, of course, be in compliance with the House order adopted on March 27 respecting the allegations of inappropriate spending and the use of House of Commons resources by the New Democratic Party. There the hon. member for Outremont will have the opportunity to answer many important questions of interest to all Canadians, including, I am sure, some questions from his own caucus members, who have been dragged into the scheme the NDP leader has put in place.

Finally, on Thursday morning, we will consider Bill C-3, the safeguarding Canada's seas and skies act, at report stage and third reading. After question period, we will resume the third reading debate on Bill C-8.

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

Mr. Speaker, this was not a good month for this government: three of its bills were rejected by the courts because they were flawed.

Given that the government is routinely invoking time allocation and closure, the work on the bills has been sloppy.

This morning, another flawed bill, Bill C-30, was sent back to committee because this government did not do a good job in the first place. Mr. Speaker, you were obliged to reject the manner in which the government put in place this bill.

The government's process is not working. The courts and even the Speaker of the House have to call this government to order.

Now the government seems to be doing the same thing with Bill C-23, the unfair elections act. The committee was working to address many of the problems that exist in the bill. The NDP, as it always does, offered sound amendments to bring forward on this bill so that it would actually work for Canadians and Canadian democracy. However, we have the government now setting an artificial deadline. When the committee still has over 200 pages of the bill to scrutinize and still has hundreds of amendments to consider, the government is saying that the committee has to finish its work within just a few hours.

This is obviously going to be another bill that the government is going to screw up. How can the government expect bills to stand up to scrutiny if it will not allow proper scrutiny in committee and in the House?

My question is very simple. What will the Conservatives do next week to start restoring the confidence of Canadians that has been sorely lost by the amount of botched legislation we have seen coming from the government?

Bill C-33—Time Allocation Motion

[Malcolm Allen, NDP, Welland, ON]

Mr. Speaker, I think you heard a lack of noise from this side when the House leader from the government moved the closure motion, because it is so usual for us to hear that.

The minister suggested that somehow we oppose everything. Let me remind the minister that today Bill C-30 will come before us and that it was this opposition, this New Democratic Party, this critic of agriculture, who said to the minister opposite, “We will help you, sir. We will help you get the legislation through. We will help you at committee. We will help you bring it back, because it is an emergency.” We intend to continue to do that.

Unfortunately, as you heard earlier in the Speaker's ruling, the government brought forward amendments. What happened in its rush to do all of that? The government was ruled out of order. When we rush, we make mistakes. That is a human frailty. It is not necessarily a Conservative frailty, albeit the government is the one that brings closure all the time. Clearly, its frailty is probably more obvious than anyone else's when it comes to making mistakes.

This single piece of legislation is immensely important. I do not sit on that committee, so my opportunities to speak to this legislation are limited to this place. By doing what the government has done 60-odd times, it limits the opportunity for those of us who do not have the opportunity to go to committee. Some would ask why we do not just substitute in. That would be an opportunity. However, I can imagine that the government would come up with some sort of ruling that there could only be so many substitutes, because if we all tried to substitute in to listen to committee hearings, the government would say that it would take too long as well.

There are times we need to take the time to study. In this case, the minister should reconsider. I do not know why he wants to rush this through. Education is important for every child. We agree with him that first nation children deserve to have the same education and the same opportunities as everyone else, but let us get it right in the first place. Let us not make mistakes.

Standing Committee on Agriculture and Agri-Food—Speaker's Ruling

[The Speaker, Andrew Scheer]

I am now prepared to rule on the point of order raised on April 10, 2014, by the hon. member for Edmonton—St. Albert, regarding the admissibility of an amendment adopted by the Standing Committee on Agriculture and Agri-Food for Bill C-30, an act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures and reported to the House on April 8, 2014.

I would like to thank the hon. member for Edmonton—St. Albert for having raised this matter, as well as the Parliamentary Secretary to the Leader of the Government in the House of Commons for their comments.

The member for Edmonton—St. Albert claimed that an amendment adopted by the Standing Committee on Agriculture and Agri-Food in relation to Bill C-30 is inadmissible, because it aims to amend a section of the Canada Transportation Act that is not contained in the bill. He argued that, in so doing, the committee had exceeded its authority and went beyond the scope of the bill that had been referred to it.

On April 28, 2014, the Parliamentary Secretary to the Leader of the Government in the House of Commons countered the points made by the member for Edmonton—St. Albert. He asserted that the amendment in question was relevant and consistent with the subject matter of the bill, and respected the rules and usual practices of the House. He explained that the amendment aimed to modify the Canada Transportation Act, which is under consideration in Bill C-30. He also reminded the House that the amendment was considered without procedural objection and was adopted by a recorded vote without dissent.

In a Speaker’s ruling delivered on April 28, 1992, which can be found at page 9801 of Debates, Speaker Fraser explained the restrictions faced by committees when considering amendments to a bill. He said:

As the House knows, the Speaker does not intervene on matters upon which committees are competent to take decisions. However, in cases where a committee has exceeded its authority, particularly in relation to bills, the Speaker has been called upon to deal with such matters after a report has been presented to the House.

In relation to the Speaker’s authority with respect to amendments adopted in committee, House of Commons Procedure and Practice, second edition, at page 775 states:

The admissibility of those amendments, and of any other amendments made by a committee, may therefore be challenged on procedural grounds when the House resumes its consideration of the bill at report stage. The admissibility of the amendments is then determined by the Speaker of the House, whether in response to a point of order or on his or her own initiative.

I have reviewed the amendments adopted by the committee, and particularly the amendment that gave rise to this point of order, which created the new clause 5.1 in the bill. It amends section 116 of the Canada Transportation Act, a section that was not originally amended by the bill, to provide an additional power to the Canada Transportation Agency.

The parliamentary secretary referred to several procedural authorities to support his arguments. Most notably, and helpfully, he quoted from House of Commons Procedure and Practice, second edition, at page 766 on the issues of scope and relevance. However, in the same paragraph that he quoted from, a critical element went unmentioned. At pages 766 to 767, it also reads:

In the case of a bill referred to a committee after second reading, an amendment is inadmissible if it proposes to amend a statute that is not before the committee or a section of the parent Act, unless the latter is specifically amended by a clause of the bill.

This is sometimes referred to as the parent act rule.

The Chair has no difficulty agreeing with the parliamentary secretary that the amendment is relevant to the subject matter of the bill. Indeed, as a fellow Saskatchewan MP who represents a large number of grain producers, I can certainly agree on the importance of this issue. As Speaker, however, not only can I not simply act according to my personal beliefs, I must respect House of Commons precedents which, in the case before us, are only too clear. Relevance is not the only test to be applied in judging admissibility. As the amendment in question reaches back into the parent act to modify a section of the act originally untouched by the bill as passed at second reading, long-standing practice leaves the Chair no choice: the amendment and those consequential to it are inadmissible.

The procedural jurisprudence is clear. I am therefore obliged to rule that the amendment, and the two other consequential amendments adopted by the committee, are null and void and no longer form part of the bill as reported to the House. In addition, I am directing that the bill be reprinted without these amendments.

Let me close by recalling how the parliamentary secretary to the government House leader has reminded the House that this bill enjoyed all-party support at second reading and that the specific measures this ruling addresses were unanimously agreed to in committee. In light of that, the Chair would be remiss if I did not, in turn, remind the House that, should there still be a clear will on the part of all parties in the House to effect these changes in the law, there are several very simple and straightforward procedural options available.

I thank honourable members for their attention.

Standing Committee on Agriculture and Agri-Food

[Brent Rathgeber, Independent, Edmonton—St. Albert, AB]

Mr. Speaker, I was under the impression, and in fact we had been advised, that the Chair would be delivering a ruling on my point of order raised in the House on April 10 with respect to the amendments passed by the agriculture committee regarding Bill C-30.

The Chair is not in a position to offer a ruling now, but I was curious if you might be able to advise the House when that ruling might be forthcoming. As you can appreciate, I, the government House leader, and, I suspect, the Minister of Agriculture and Agri-Food are very anxious to hear your ruling.

Protecting Canadians from Online Crime Act

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, the member indicated that the warrantless production of documents and the warrantless search is now a thing of the past, and that this element of Bill C-30 is not present in Bill C-13. However, there is something in Bill C-13 that would provide immunity to Internet service providers and telephone companies when they produce records at the request of law enforcement authorities. In order to make it easier for them, this immunity would apply to both criminal prosecution for the production of these records and any civil suit.

Given that the member's position is that there are no longer warrantless searches, is it not the case that there is now an incentive for co-operation among Internet service providers, or at least a disincentive has been removed, which is tantamount to having warrantless searches all over again? What the government is doing indirectly is what it tried to do directly, through Bill C-30.

Standing Committee on Agriculture and Agri-Food

[Tom Lukiwski, Conservative, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I am rising today to respond to the point of order raised on April 10 by the hon. member for Edmonton—St. Albert respecting the amendments to Bill C-30, the fair rail for grain farmers act, contained in the second report of the Standing Committee on Agriculture and Agri-food presented on Tuesday, April 8. The government disagrees with the assessment offered by the hon. member.

The amendment in question, which adds clause 5.1 to the bill, is relevant to the subject matter of Bill C-30. It respects the rules and usual practices of the House. It would amend a part of the Canada Transportation Act, a law that is already under consideration in Bill C-30.

The summary of Bill C-30 clearly states that a goal of the legislation, and in particular the part which would amend the Canada Transportation Act, is to “facilitate the movement of grain by rail”. This amendment would provide the tools required in the supply chain to make sure all parties are committed to making this happen.

The sponsor of the bill clearly believes that this clause is relevant and consistent with his policy intentions or he would not have asked his parliamentary secretary to propose that amendment.

Clause-by-clause consideration of the bill followed an ambitious and full series of meetings by the agriculture committee. Many witnesses with interests in this legislation appeared and gave evidence. The government heard what witnesses asked for. In response, it drafted an amendment to fulfill the desire of witnesses.

Furthermore, I understand that the amendment was considered at committee without objection. Not only was it considered without procedural objection, it was adopted by a recorded vote of nine to zero. Every member of the committee voted for and supported the amendment. A competent and informed decision was made when each member reviewed, considered, and voted for the amendment. The unanimously adopted amendment aids and advances the bill's purpose of facilitating the movement of grain by rail.

As the Speaker knows, House of Commons Procedure and Practice, second edition, at page 766 states:

An amendment to a bill that was referred to a committee after second reading is out of order if it is beyond the scope and principle of the bill...Similarly, an amendment which is equivalent to a simple negation of the bill or which reverses the principle of the bill as agreed to at second reading is out of order.

An amendment to a bill must be relevant in that it must always relate to the subject matter of the bill...

Erskine May's Parliamentary Procedure, 24th edition, helpfully defines the scope of a bill at page 6564:

Any amendment (or new clause or new schedule) proposed to a bill must be within its scope. The scope of a bill represents the reasonable limits of its collective purposes, as defined by its existing clauses and schedules. In particular cases difficult questions of judgment may arise. The scope of a bill, particularly of a bill with several purposes, may be wider than its long title, although the long title may help to determine the scope.

Bill C-30's long title is An Act to Amend the Canada Grain Act and Canada Transportation Act and to provide for other measures. Clearly clause 5.1, which would amend the Canada Transportation Act, meets this threshold.

Let me add from page 565 of Erskine May:

An amendment which is outside the scope of a clause may be admissible if presented as a new clause, provided that it is within the scope of the bill.

As I have previously mentioned, clause 5.1 joins other amendments to the Canada Transportation Act to facilitate the movement of grain by rail.

Beauchesne's Parliamentary Rules & Forms, 6th edition, addresses the admissibility of amendments to legislation at citation 698. Let me quote from some of the paragraphs of this citation. Paragraph (1) says:

An amendment is out of order if it is irrelevant to the bill, beyond its scope, or governed by or dependent upon amendments already negatived.

That is not the case here.

Paragraph (2) reads:

An amendment must not be inconsistent with, or contradictory to, the bill as so far agreed to by the committee, nor must it be inconsistent with a decision which the committee has given upon a former amendment.

This amendment complements and enhances the purpose of the bill. It absolutely is not inconsistent with the bill.

Paragraph 5 informs us that “An amendment which is equivalent to a negative of the bill, or which would reverse the principle of the bill as agreed to at the second reading stage is not admissible.” However, this is not applicable because the amendment does not overturn the principle of the bill. I could offer even more quotes from citation 698 to make my case, but in the interest of time, I will not.

Let me take a brief moment, especially as a member of Parliament from Saskatchewan, to acknowledge and thank the opposition members for the work they did; and in fact the non-partisan work they all did, as well as the cordial approach taken during the committee's work to see this important bill considered promptly, expeditiously, and thoroughly.

Members of the House understand extremely well that this amendment is important because it gives tools to the shippers who enter service level agreements. In fact, the proposed amendment further facilitates the movement of grain by rail through the creation of a better balance and accountability between shippers and railways and the strengthening of the strong foundation provided for effective and reliable service. The amendment is something that many witnesses from all commodities have asked for at the committee. The Alberta Wheat Commission said this recently:

AWC would like to recognize the members of the House of Commons and the Standing Committee on Agriculture and Agri-Food for the amendments made to strengthen the legislation and the potential for effective Service Level Agreements between railways and shippers. [...]The need for financial penalties was identified by AWC as a necessary component for Service Level Agreements.

Mr. Speaker, it is for these reasons that you should find it easy to reject the point of order raised by the hon. member for Edmonton—St. Albert and find in order the second report of the Standing Committee on Agriculture and Agri-Food on Bill C-30, the fair rail for grain farmers act.

[Brent Rathgeber, Independent, Edmonton—St. Albert, AB]

Mr. Speaker, I rise on a very important point of order.

On Tuesday morning, during routine proceedings, the chair of the House of Commons Standing Committee on Agriculture and Agri-Food reported Bill C-30 back to the House with amendments. I wish to seek a ruling from the Chair as to whether an amendment to Bill C-30, adopted by the committee, is in order.

I understand that generally, the Chair does not involve itself with the business of committees, given that committees are masters of their own proceedings. However, as Speaker Milliken pointed out on February 27, 2007, at page 7386 of the Debates, ruling on a similar matter:

As the House knows, the Speaker does not intervene on matters upon which committees are competent to take decisions. However, in cases where a committee has exceeded its authority, particularly in relation to bills, the Speaker has been called upon to deal with such matters after a report has been presented to the House.

I submit that an amendment moved by the Parliamentary Secretary to the Minister of Agriculture and Agri-Food, and adopted by the committee, is out of order, because the committee has exceeded its authority.

The amendments to the committee-adopted subsection 116(4) seek to add an entirely new and different provision to the Canada Transportation Act that was clearly not envisioned in the original draft of Bill C-30, as tabled and passed by the House at second reading on Friday, March 28, 2014.

The summary of the original Bill C-30 states that:

This enactment amends the Canada Grain Act to permit the regulation of contracts relating to grain and the arbitration of disputes respecting the provisions of those contracts. It also amends the Canada Transportation Act with respect to railway transportation in order to, among other things, (a) require the Canadian National Railway Company and the Canadian Pacific Railway Company to move the minimum amount of grain specified in the Canada Transportation Act or by order of the Governor in Council; and (b) facilitate the movement of grain by rail.

Bill C-30, as originally tabled, was about moving grain. It is much needed. It is a serious problem with respect to farmers getting their grain to market. However, the amendment, tabled at committee by the Parliamentary Secretary to the Minister of Agriculture and Agri-Foods, and adopted by the committee, seeks an entirely new power:

Subsection 116(4) of the Canada Transportation Act is amended by adding the following after paragraph (c):

(c.1) order the company to compensate any person adversely affected for any expenses that they incurred as a result of the company's failure to fulfill its service obligations or, if the company is a party to a confidential contract with a shipper that requires the company to pay an amount of compensation for expenses incurred by the shipper as a result of the company's failure to fulfill its service obligations, order the company pay that amount to the shipper;

The Minister of Agriculture may believe that this is a favourable amendment, and it may very well be. The problem is that it exceeds the authority of the original bill and provides quite an extraordinary remedy in that it gives the regulator the power to award damages in the absence of any procedural fairness, any rule of law, or any discoveries.

In the ruling on the power of a committee to make amendments, Speaker Fraser ruled, on April 28, 1992, at page 9801 of the Debates, stating:

When a bill is referred to a standing or legislative committee of the House, that committee is only empowered to adopt, amend, or negative the clauses found in that piece of legislation and to report the bill to the House with or without amendments. The committee is restricted in its examination in a number of ways. It cannot infringe on the financial initiative of the Crown, it cannot go beyond the scope of the bill as passed at second reading, and it cannot reach back to the parent act to make further amendments not contemplated in the bill no matter how tempting this may be.

It may have been very tempting to amend the bill to provide for compensatory powers within the regulator, but it falls outside the four corners of Bill C-30 as it was adopted by the House.

Mr. Speaker, I submit to you that in this instance, the amendment to Bill C-30 is both beyond the scope of the bill and also reaches back to make changes to the Canada Transportation Act that were not contemplated by the bill. The amendment passed by the committee has the effect of giving the Canada Transportation Agency the right to award damages, a right that at this point in time has been the sole purview of the courts.

The amendment to subsection 116(4) is out of order, because it does not relate to the original subject matter of Bill C-30 as introduced and passed by the House at second reading and because it introduces new issues that were not part of Bill C-30 as originally introduced. The amendment is therefore beyond the scope of Bill C-30 and should be removed from the bill. I look forward to a ruling from the Chair.

Agriculture and Agri-Food

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, it is indeed a pleasure and an honour to present, in both official languages, the second report of the Standing Committee on Agriculture and Agri-Food, in relation to Bill C-30, An Act to amend the Canada Grain Act and the Canada Transportation Act and to provide for other measures.

The committee has studied the bill and has decided to report the bill back to the House with amendments.

[Pierre Lemieux, Conservative, Parliamentary Secretary to the Minister of Agriculture]

Mr. Speaker, this government has shown real leadership in putting in front of Parliament, Bill C-30. We had witnesses come in front of committee; we held extensive meetings all last week, and we have received written inputs as well. Tonight we will be doing clause by clause, and the committee will be doing its work. I ask the member to let the committee do its work.

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Speaker, about grain transportation, all parties are trying to deal quickly with Bill C-30. The deadline for filing amendments was last Friday. Because of that timing, some key stakeholders had no chance to submit their views, including the Province of Saskatchewan.

We have all just received a letter from provincial minister Lyle Stewart. Will the government accept his request that emergency legislation not be sunsetted in 2016, but kept in place until the CTA review is done and permanent legislation is enacted? That is sensible. Will the government agree?

Agriculture and Agri-food

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, I have been paying attention. I spoke on Bill C-30, and we have been studying it in committee every day.

I want to know when the Conservatives will stop taking these farmers for granted and actually take action.

The minister knows full well that increased interswitching limits do not compensate farmers and that Bill C-30 is not a long-term solution. These changes will cost rail companies more, and these higher costs will be passed on to farmers. While a few grain companies will fight over the profits, it is farmers who are paying more.

Will the minister accept our constructive amendments at committee?

[Pierre Lemieux, Conservative, Parliamentary Secretary to the Minister of Agriculture]

Mr. Speaker, I would invite this member to follow what is actually happening here in Parliament.

Just last week, our government put forward Bill C-30, which is the fair rail for grain farmers act. It would obligate the rail companies to move one million metric tons of grain a week to help clear the logistic backlog with respect to grain. It would also increase supply chain transparency, strengthen contractual mechanisms between producers and shippers, and help ensure that the entire chain is working at peak capacity.

I invite this member to vote in favour of this legislation.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I am pleased to see that the House is currently focusing on jobs, growth and long-term prosperity by debating Bill C-31, the Economic Action Plan 2014 Act, No. 1, at second reading.

This debate will continue tomorrow, Monday and Tuesday, with members of Parliament having an opportunity that night to vote on this bill to enact key measures of our low-tax plan for jobs and growth in the Canadian economy.

I am currently setting aside next Wednesday and Friday for debate on Bill C-32, the victims bill of rights. This important and much needed piece of legislation would give victims their rightful place in our justice system: at its heart. The Conservative Party has long stood alone in putting the rights and interests of victims ahead of those of criminals.

Also, I would like to note that Bill C-30, the fair rail for grain farmers act, has been making good progress in committee this week. Should that bill be reported back to the House next week, I will make time for its consideration if we are able to enjoy the same level of co-operation that we saw at second reading last Friday, when it was passed by the House after we heard from a speaker from each party.

Finally, Thursday, April 10, shall be the second allotted day. I understand that we will debate a Liberal motion on that day. Perhaps the hon. member for Papineau will ask the House to debate his definition of middle class. In fact, it appears he could have a vigorous debate on that issue with himself that would fill the entire day. I eagerly await to see if his newest definition of the middle class will still include the CEOs of the big banks. I am confident that his caucus will stand ready to move an amendment to that motion if, during the course of the day, his definition changes yet again.

I noticed today in question period that we heard yet another definition of middle class. It is that one magical person who happens to make the median income in Canada. At least that way the middle class is easily defined and the number of people who are middle class is unlikely to change. It is one person, and that is a number that I know the member for Papineau will be able to grasp. He will be able to remember the number one. It is easier than remembering the thousands of billions number that he is also fond of.

I am also confident that he will not choose as the subject of debate the matter of eliminating the budget deficit. After all, he says the budget will balance itself.

Agriculture and Agri-Food

[Gerry Ritz, Conservative, Minister of Agriculture and Agri-Food]

Mr. Speaker, the member for Wascana has pointed out a portion of the new legislative package, Bill C-30, and the regulatory capacity under that. As he well knows, witnesses will be there all this week at the SCAAF committee, talking about this very issue.

What we have in mind is for the ability of farmers to have some reciprocity when a contract is issued by a grain company, so they actually have some power to push back. Right now, there is only buyer's preference. We would like to see something from the farmers' perspective that would give them some leverage as well.

[Ralph Goodale, Liberal, Wascana, SK]

Mr. Speaker, in Bill C-30, the government seeks to regulate contracts between farmers and grain companies, but it is not clear what kind of regulation. They should in fact table the draft regulations.

One problem is the so-called basis calculation, meaning how grain companies discount world prices to set the actual Prairie price paid to farmers. Farmers call this deduction “tookage”, and it has never been bigger than it is today.

Would Bill C-30 force transparency and put some limits on this grain company cash grab that is gobbling up about half of the farmers' price?

[Pierre Lemieux, Conservative, Parliamentary Secretary to the Minister of Agriculture]

Mr. Speaker, as I mentioned, Bill C-30 is important and very good legislation. This legislation would help to correct the problem that farmers are having moving their grain to port. It would impose transportation requirements of one million metric tonnes of grain moved to port each and every week by the two railroad companies. It would impose fines of $100,000 per day for non-compliance.

I have quotes here. The Manitoba minister of agriculture states, “The Manitoba government supports this move”. The Alberta minister of agriculture says, “We are pleased that the federal government has brought forward the fair rail for grain farmers act.”

I would ask that member and his party to support this key legislation.

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Mr. Speaker, the last time legislation was put before the House to deal with the grain transportation issue, the government ignored all the good advice it got from farmers. It voted down every single amendment that farm groups proposed, and because of that it has this $8 billion grain crisis on its hands now.

When farmers, provincial governments, and even its own parliamentary secretary are saying that Bill C-30 is not good enough, is the government finally going to listen? Will it protect short lines and producer cars?

Offshore Health and Safety Act

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member made reference to grain. In the Prairies, we are really sensitive these days on the issue of grain and the transportation of grain. In fact, I would have loved to have seen us debating Bill C-3 today. I know that my colleague, the Liberal Party critic for agriculture, wants to see that bill get to committee, where we can hear from farmers and other stakeholders.

The Liberal Party has long been very supportive of efforts that would ensure protective measures in occupational health and safety. We appreciate that this is something being driven more by our provinces than by Ottawa.

We recognize how important it is to have those offshore industries, which provide all sorts of economic opportunities and so much more in terms of wealth for all Canadians. There is a lot happening on the east coast. One does not have to be an eastern member of Parliament to have an appreciation for what is taking place there. I am very happy to see the prosperity.

Having said that, it is important to have labour laws and occupational health and safety measures enshrined. This is what this legislation is going to do. It has fallen short, to a certain degree, but it is a strong step forward. We give the government credit for that.

I wonder if the member might like to comment on what she believes would have given more strength to the legislation we are going to pass.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I first want to say here what I said on Twitter last week; that is, I would like to thank the hon. member for Skeena—Bulkley Valley for the working relationship that we have enjoyed over the last couple of years. I wish him well with his new critic responsibilities.

Now let me thank the hon. member for Burnaby—New Westminster for his first Thursday question. I welcome the hon. member to his new role as the House leader of the official opposition. I have been told by my staff that he is the tenth House leader from across the aisle with whom I have had the pleasure of working.

While I am confident that his predecessor has briefed him on our government's approach toward facilitating a hard-working, productive, and orderly House of Commons, I see that he has already fallen into one of the grievous errors of his predecessor. For a whole bunch of reasons, I would encourage him to look in some detail at the House of Commons rules and procedures.

For example, he was concerned with time allocation and referred to it again as limiting debate, yet when he reviews the rules, as I know he is going to, and I know he will do that with some enthusiasm in the near term, he will notice citation 533 of Beauchesne's Parliamentary Rules and Forms of the House of Commons of Canada, sixth edition, which reminds us that:

Time allocation is a device for planning the use of time during the various stages of consideration of a bill rather than bringing the debate to an immediate conclusion.

That is what we have always tried to do here: schedule debates so that we can make decisions, have fair and adequate debate, and give members of Parliament an opportunity to decide questions. It is not to curtail debate; it is to schedule and facilitate decisions being made. I hope that the member will have regard for those rules, something that had escaped his predecessor.

However, I should say that I do look forward to working with him on our business in the future. That said—and I hope that he will not take personal offence to this—in our scheduling of these matters, we will continue to work off of the Gregorian calendar, not the Julian calendar.

Today, we will continue the third reading debate on Bill C-5, the Offshore Health and Safety Act. Tomorrow, we will start the second reading debate on Vanessa’s law, Bill C-17, the protecting Canadians from unsafe drugs act. Monday will see the third day of second reading debate on Bill C-20, the Canada-Honduras Economic Growth and Prosperity Act.

That is one that I know he is a great supporter of.

Tuesday, April 1, shall be the first allotted day. It being April 1 after all, I assume that the NDP will ask us to debate one of its economic policies.

Finally, starting on Wednesday, we will debate our spring budget implementation bill to enact many of the important measures contained in economic action plan 2014, our low-tax plan for Canadians, as we make further progress on balancing the budget in 2015.

I might also add that with regard to the grain situation, Bill C-30 is now before the House. There have been very positive discussions among the parties to date. I hope that they will lead further to being able to have that bill passed through at least second reading on a fairly constructive basis. I hope those discussions will yield fruit, in which case there might be some change to the schedule I have presented to the House today.