Bill C-640 (Historical)

VIA Rail Canada Act

An Act respecting VIA Rail Canada and making consequential amendments to the Canada Transportation Act

This enactment establishes a legislative framework for the crown corporation of VIA Rail Canada and describes the scheme of governance and funding for it. It also requires VIA Rail Canada to maintain public passenger service for the routes set out in the schedule.
This enactment also amends the Canada Transportation Act to enable a railway company to electrify the tracks of another railway company, by applying to the Canadian Transportation Agency for this purpose. It accords scheduling and operational preference to public passenger service by VIA Rail Canada over freight service where there is a conflict between the two. It requires VIA Rail Canada and any other railway company to set out public passenger service performance standards and incentive payments in agreements between them and allows the Canadian Transportation Agency to investigate and impose monetary penalties for poor performance and delays. It promotes the transparency of agreements between VIA Rail Canada and another railway company to use that railway company’s facilities or services by requiring publication of these agreements.

VIA Rail Canada Act

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I rise today to lend my support for an excellent private member's bill, to create a legislative framework for the provision of national passenger rail services.

Canada is a laggard, an outlier, in the provision of passenger rail services in the world, on the planet. We have a system that is owned by the federal government somehow, without legislative oversight. It has recently cut service so drastically that it is now almost laughable in some parts of Canada. All other modern economies, whether that is the U.S., Europe, Asia, or Australia, all have robust and thorough passenger rail systems.

That is not so with Canada. Canada has decided, starting with the Mulroney government, and now with this government, to cut our passenger rail systems and to cut them in such a way that it is a self-fulfilling prophecy. The argument is that there are not enough passengers so they cut service, which then causes there to be even fewer passengers. That then causes the government to say it should not be subsidizing the fewer passengers.

Rail service is one of the ways that we, as Canadians, can reduce our use of fossil fuels and the greenhouse gases that we would normally be putting into the atmosphere through the other transportation systems we use in the country, through cars, airplanes, trucks, and other vehicles. The rail system in Canada is ideally suited to take over that role of transporting individuals. However, we do not have a government that believes in transporting individuals by rail. We do not have a government that believes in very much, but the system of transporting individuals by rail is one of the things that we are certain it does not believe in.

In terms of us being a laggard, there are statistics around the world about what countries do in terms of billions of passenger kilometres in a year. India is by far the leader, with over a trillion passenger kilometres. On that list are countries like Belgium, Austria, Hungary, Turkey, and the Czech Republic. Canada is not on the list at all, and that is because we have almost no passenger rail service in the country because it has been cut by successive Liberal and Conservative governments.

That is the crying shame that we are here to try to start correcting. It is going to take time, but at least with a legislative framework for VIA Rail, we can start rebuilding it.

The parliamentary secretary talked about one aspect of the bill that would harm our freight rail system by giving passengers priority. Well, the last time I checked, there were not too many people on a freight train who might be late for a meeting if they had to wait for a passenger train to go through. The rail companies have systematically eliminated their sidings. We used to have a system in Canada where freight trains would move on to a siding while a passenger train went through. Now they run trains that are too long for their sidings. In my riding of York South—Weston, they are actually removing the siding because they cannot get the trains on it anymore. Therefore, these two-mile long trains full of oil or grain are preventing passenger trains from travelling at a reasonable speed.

In addition, we have a government that has subsidized the freight rail system in our country to a large degree. The most recent example was the money it spent, reportedly on VIA Rail. It spent half a billion dollars on VIA Rail upgrades by giving money to CN. CN put in a beautiful new third line between Toronto and Montreal. Who uses it? It is used for freight. Who has to stop and wait for the freight trains to go by? VIA has to wait, even after the government put that rail in.

In addition, Mr. Speaker, even though we the taxpayers paid for the line, which is you, me, and everyone else in this room, and everyone else in Canada, VIA Rail still has to pay rent on that line. Does that make any sense to you, Mr. Speaker? Does that make any sense to anyone in the room?

[An hon. member]

Only to the shareholders.

[Mike Sullivan, NDP, York South—Weston, ON]

Only to the shareholders of VIA Rail, Mr. Speaker.

In terms of freight, Canada is actually number two in the world in terms of tonne-kilometres per capita that are transported. Russia is number one at 12,000 tonne-kilometres per person, and Canada is number two at 10,517. What does that mean? It means we have the infrastructure. We have the rail capacity in this country to move lots and lots of goods, but we are not using it effectively to move people. We are not using it in such a way that the people of Canada can actually make use of that infrastructure, some of which, if not all of which, was created with federal and provincial government money.

People in this country been asking the government to change its approach to the VIA Rail dilemma for the past several years, ever since VIA Rail started to do the bidding of the Conservative government by reducing service. In St. Marys, Ontario, Chris West and Lynn Hainer and the rest of an advocacy group there have been holding meetings on a regular basis and invited VIA Rail to the meetings to find out why their service had to be cut when the service had lots of passengers. The answer they had was, “Well, we just decided.” There is not really an answer.

We know that there is something going on from the government side that is perhaps pushing VIA Rail to remove itself from what the government might call non-competitive routes, or non-filled routes, but that it has made it impossible for individuals in the area between Toronto and Sarnia to get to Toronto or to get to Sarnia. As a result, the farmers and residents of rural Ontario are now forced to drive, and they do not want to drive. They want to take the train, but they can no longer take the train. It is no longer possible. The trains have been cancelled.

There are residents of New Brunswick and in the Gaspé region who are begging the government to reinstate their rail service. We have it in New Brunswick, although it runs very slowly, and in the Gaspé it is still not there. On Vancouver Island, a rail service was put in place as a result of the sale of a CP Rail system to the people of Vancouver Island so that they could put a rail service in between Victoria and Comox. There was a huge tax benefit to the CP Rail system, but that rail system is now languishing because repairs were necessary. CP had left it in a derelict state. It received a huge tax benefit for the so-called donation, and now where are we? We do not have any rail service. It is not running. There was agreement locally that there would be, but VIA Rail has not come forward with its side of the agreement.

In four areas of this country—the Gaspé, New Brunswick, southwestern Ontario, and Vancouver Island, rail service is disappearing under the Conservative government. We had it and we are losing it, and that is the crime of the government's approach to rail service. While the rest of the world is moving toward rail service, this government is moving away, in such a way that it is sometimes irretrievable.

My colleague for Acadie—Bathurst pointed out how long it takes for trains to get from A to B there, and the same is true in southern Ontario, except that the federal government gave a private rail company money to upgrade the line. It did not bother to do it, so the train takes two hours to get from Kitchener to Toronto, whereas it takes about 45 minutes to drive that distance. It is yet another example of the government's waste. The government sends money freely away, supposedly to upgrade a service, and then watches the money disappear when the service does not actually get upgraded.

This is an excellent bill. It would give us a start in putting VIA Rail back on the footing it needs to make Canada competitive in the transportation business with the rest of the world.

[The Speaker, Conservative, Andrew Scheer]

The time provided for the consideration of private members' business has now expired and the order is dropped to the bottom of the order of precedence on the order paper.

It being 2:15 p.m., the House stands adjourned until next Monday at 11 a.m., pursuant to Standing Order 24(1).

(The House adjourned at 2:15 p.m.)

The House resumed from February 20 consideration of the motion that Bill C-640, An Act respecting VIA Rail Canada and making consequential amendments to the Canada Transportation Act, be read the second time and referred to a committee.

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I am pleased to have this opportunity to discuss Bill C-640, an act respecting VIA Rail Canada and making consequential amendments to the Canada Transportation Act. The government remains committed to ensuring economic growth and long-term prosperity for Canadians. Given this focus, the government cannot support Bill C-640, because it would have a negative impact on Canada's economic competitiveness and risk its reputation as a reliable trading partner.

To illustrate the potentially negative implications of this bill, I would like to first highlight the important role that freight rail plays in Canada. For more than 130 years, railways have linked communities, supported trade and expanded the Canadian economy. The historic role of railways in our country's growth since Confederation is well known.

The importance of freight railways has only increased today. Canada's freight railway sector, which comprises more than 60 short lines and two class 1 railways, Canadian National and Canadian Pacific, operates nearly 46,000 kilometres of track. Canadian businesses, producers and manufacturers rely on this expansive rail network every day to move a whole wide variety of goods to thousands of domestic and global destinations.

It is also worth noting that a substantial portion of rail movements contribute to our domestic and international trade. Clearly, the success of Canadian businesses is contingent on efficient, effective and reliable freight rail services. Grain farmers work hard to supply global markets with a world-class product. Lumber, pulp and paper, and other forest products from Canadian mills have a global reputation for being second to none in terms of quality. Demand for these products is increasing around the world. Global buyers in emerging economies are seeking high quality iron ore, coal and other commodities extracted from mines located across Canada.

Canada's manufacturing industries, including the automotive sector, continue to demonstrate strength and resilience in increasingly competitive global markets and integrated supply chains. However, success in all industrial sectors requires reliable and efficient freight rail service. Shippers would face broken sales contracts, declining market share and irreparable harm to their reputation as reliable global suppliers if they could not get their goods to market reliably and efficiently.

The government has taken important steps to ensure the efficiency, effectiveness and reliability of the rail-based supply chain. In 2010, the government initiated the rail freight service review. In 2013, the government passed the Fair Rail Freight Service Act, which aimed to support commercial solutions by providing shippers with the right to request a service level agreement, and a process to establish one if commercial negotiations fail.

Less than a year ago, the government passed the Fair Rail for Grain Farmers Act. which included additional measures designed to support the entire grain transportation system and achieve the goal of moving grain more efficiently and quickly. For example, the act required railways to move minimum amounts of grain; extended interswitching limits for shippers in Alberta, Saskatchewan and Manitoba; and clarified operational terms in service level agreements. In combination, these efforts have contributed to a strong, dynamic freight rail network in Canada that is recognized around the world for its ability to move diverse commodities over vast distances.

A cornerstone of the development of Canada's transportation system is a policy approach that supports competition in market forces. Specifically, the national transportation policy outlined in the Canada Transportation Act indicates that the objectives of a competitive, economic and efficient transportation system are most likely to be achieved when competition and market forces are the prime agents in providing transportation services. Furthermore, it states that regulation and strategic public intervention should not unduly favour any particular mode of transportation.

What would happen to this critical rail transportation system if Bill C-640 were to be passed? Provisions in the bill would undermine the government's recent efforts to strengthen Canada's rail-based supply chain and would also run counter to foundational policy principles by undermining commercial solutions and unduly favouring one type of rail transportation over another.

Specifically, Bill C-640 proposes amending the Canada Transportation Act to give VIA general scheduling and operational preference over freight rail in the event of conflict. Let me be clear on what this proposal intends to do. Essentially, this amendment would give unfettered primacy to passenger rail operations at the expense of freight rail efficiency.

Currently, VIA and freight railways negotiate commercial agreements for track access that allow parties to work together to find an operational arrangement that works for everyone involved. This approach recognizes that the best solutions are those negotiated by the parties themselves.

If commercial negotiations are unsuccessful, the Canada Transportation Act provides VIA and other public passenger service providers with recourse to the Canadian Transportation Agency to secure access to track, equipment, or other facilities. This dispute resolution mechanism balances the interests of communities, consumers, and public passenger service providers with those of freight rail carriers.

I want to emphasize today that passenger rail service in many parts of Canada needs to be enhanced to meet community needs. My constituency of Sarnia—Lambton is a good example of this. Due to lack of ridership, passenger rail service provided by VIA Rail has been cut back in my community over the past few years, causing issues for students, the elderly, and others who utilize this travel option. I have worked hard to advocate on the need for these services for my constituents to decision-makers at VIA Rail and in cabinet.

I also want to give credit and recognition to a local group of individuals who have worked tirelessly to improve passenger rail service for local residents. Rail Advocacy in Lambton, or RAIL, as it is more commonly known, has accomplished numerous achievements in its advocacy efforts through a broad, community-driven consultation process and through working in a co-operative fashion with VIA Rail Canada. This group has presented various solutions that may work well for my community, and as mentioned, it has had success with its efforts thus far, as a recent meeting with VIA Rail Canada ended with a promise by VIA officials to visit Sarnia-Lambton and to seek to enhance the passenger rail options for my riding.

I support RAIL in its efforts and will continue to do so, because it is seeking proactive solutions, but not at the expense of one mode of service over another. It understands that any viable solution to the transit issues facing the region will require a holistic, integrated approach, likely requiring the attention of the three levels of government involved: federal, provincial and municipal.

Its solutions do not place freight above passenger rail. Rather, they include both aspects of the rail industry in the discussion, as both sides' co-operation is indeed required for a positive solution to be reached with regard to passenger rail enhancement across the region. These are solutions that do not require the hardships Bill C-640 would create. By this I mean that Bill C-640 proposes amendments that would be in stark opposition to long-established commercial principles, such as ensuring modal neutrality and balancing the interests of the parties involved.

Ultimately, the changes proposed in Bill C-640 would greatly impact a railway's ability to operate its network, leading to inefficiencies and reduced reliability. This would have a corresponding negative impact on shippers' ability to get their goods to market, thereby risking their global reputations as reliable suppliers, reputations they work hard every day to achieve and sustain. It would also move away from a proactive solution that needs to involve both freight and passenger rail entities.

In closing, I would like to reiterate that Canada's economy cannot risk the reckless approach proposed in Bill C-640. Canadian shippers work hard to grow their businesses and realize global economic opportunities. Bill C-640 would ultimately undermine this hard work, risk shippers' global reputations as reliable suppliers, and harm the overall competitiveness of the Canadian economy. For that reason, the government cannot support Bill C-640.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am pleased to speak to Bill C-640, An Act respecting VIA Rail Canada and making consequential amendments to the Canada Transportation Act.

I would first like to commend my colleague from Gaspésie—Îles-de-la-Madeleine for his excellent work. He has worked very hard on this file. He wanted to bring this issue to the forefront in Parliament. We have been trying to pass these vital measures in this Parliament for about 20 years. The member has done excellent work by proposing these very important changes.

I would first like to comment on why this bill is so important. Many Canadians across the country must use the services of VIA Rail, and the NDP believes that Canadians deserve rail services that are shared, adequate, safe and efficient. We know that most MPs have used VIA Rail services. We know just how essential this service is, but we also know that there is a great deal of room for improvement.

It is time for Canadian passengers to have priority over freight, as is the case in the United States. Later, I will talk about Amtrak, which Canada could really look to for best practices.

My colleague also introduced this bill because we believe that VIA Rail has a duty to provide a minimum level of service and that it should not cancel routes without consulting the public and Parliament. This bill has a number of measures and I will talk about a few of them. This bill essentially provides a legislative framework for VIA Rail's mandate. It requires VIA Rail to maintain service and to maintain the frequency of certain routes that must be served. Later, I will also talk about some essential routes that have been abandoned by VIA Rail in recent years.

The bill also provides for a transparent and democratic assessment mechanism if VIA Rail wishes to cancel service. It provides a framework for VIA Rail governance and funding. We know that these two priorities are important if we want VIA Rail services to work. This bill ensures that municipal representatives have a say in VIA Rail services.

The bill also gives priority to passenger trains over freight trains. It imposes fines on rail companies for failing to comply with regulations that favour VIA Rail. It demands transparency with respect to the fees paid by VIA Rail to rail companies. Lastly, if VIA Rail wishes to cancel service, it must first seek approval from Parliament.

I would like to digress for a moment to also talk about Canada Post. We know that this topic has been debated in the House and there is a lot of talk about it in my riding of Rivière-des-Mille-Îles. The people of Rosemère have already lost their home mail delivery and people in Boisbriand will lose it this year. Of course they oppose this reduction in service, but we know that the Conservatives' approach, which involves cutting services and increasing prices, is not the right way to run a business. That is not the right thing to do to ensure that Canada Post remains a profitable business.

The government keeps repeating that people are sending fewer letters, for one thing. That may be true, but they are sending more parcels, they are doing more online shopping and they still receive bills by mail. Furthermore, municipalities still need to send their correspondence related to municipal taxes to their residents by mail. The reduction in Canada Post services is affecting a large segment of the population, as well as municipal budgets, which are already very tight.

I mention Canada Post because, similarly, it is not by reducing VIA Rail's services or access to it that the crown corporation will become more profitable.

Since 2011, VIA Rail has dropped major routes. The Victoria-Kootenay line was dropped in 2011. In December 2012, VIA Rail also stopped its passenger service on the Matapédia-Gaspé line, despite the fact that a major part of that line is now safe.

In 2012, VIA Rail announced that it was reducing its Ocean train service between Montreal and Halifax. I would like to mention that a number of my colleagues here in the House defended that train service and travelled from one end of the country to the other to mobilize people in order to protect VIA Rail services. I am talking about the hon. member for Halifax and other NDP members from the Maritimes. Following the derailment of a freight train in June 2014, VIA Rail stopped operating the Winnipeg-Churchill line indefinitely.

It is important to talk about these lines because Canada is a very diverse country and remote municipalities do not have the same needs as major urban centres. VIA Rail's service is very important to these remote regions.

Passenger rail service in remote areas is in free fall. Furthermore, in more urban areas, freight trains cause significant delays in passenger service. This is very inconvenient for people who use these services.

Basically, the bill supports the concept that management of passenger rail service must comply with section 5 of the Canada Transportation Act and section 5 of the Federal Sustainable Development Act, especially when it comes to the principles of accessibility, economic growth of urban and rural communities and sustainable development.

When I was researching this bill, I looked at Amtrak, a U.S. passenger train company. Amtrak, which serves our neighbours to the south, decided to increase frequency rather than reduce it, as a result of a study that showed that decreasing the frequency of passenger trains does not result in significant savings.

Quite the opposite is happening in Canada. In the case of the Halifax-Moncton-Montreal train, there was a reduction of almost 40% in ridership in 2012, while there was only a $1 million savings in fuel and operating costs.

Furthermore, the increased frequency of Amtrak trains in the United States has resulted in a significant increase in ridership and revenue.

I would like to comment further on the case of Canada Post. We know that if there is good management, more service and some guarantee of quality service, people will use the services available and the number of users will grow. Cutting services will not make an organization profitable. There are some interesting comparisons to be made with the case of VIA Rail.

We want VIA Rail to have a clear mandate to provide safe, adequate, efficient service. During question period in the House, NDP members have often called for VIA Rail to reinstate all of the routes that have been cancelled since 2011. We also want all changes to its network to be subject to public consultation and debated in Parliament. This is an important issue, particularly for my NDP colleagues who live in areas served by VIA Rail.

For example, the member for Churchill knows her community's needs. She is in an ideal position to understand the impact of service cuts at VIA Rail on her community and the ability of her constituents to travel and be mobile.

I see that my time is up, so I would like to conclude by inviting all of my colleagues to support a wonderful bill, Bill C-640.

[LaVar Payne, Conservative, Medicine Hat, AB]

Mr. Speaker, I am please to have the opportunity to speak to private member's bill C-640, an act respecting VIA Rail Canada and making consequential amendments to the Canada Transportation Act.

An intercity passenger rail service with VIA Rail as the predominant service provider is an important component of our transportation system. VIA benefits our economy and society by connecting Canadians from coast to coast. Recognizing this, our government has and continues to support VIA Rail.

Our government provides VIA Rail with substantial financial support to operate and maintain its network. VIA was given a subsidy amounting to $305 million in 2013-14, a significant amount of funding. In addition, our government is making unprecedented capital investments in VIA Rail to allow it to make important improvements to modernize its operations.

Our government has made available more than $1 billion in capital funding over the past seven years to upgrade and modernize portions of VIA Rail's network and many of its rail cars and locomotives.

However, despite our government's demonstrated support for VIA, we cannot support the bill. The bill would introduce legislation that would not only increase these costs, but would fundamentally alter, for the worst, how the corporation would be operated and managed.

VIA Rail is a federal crown corporation. Like all corporations, both private and public, VIA is governed by a board of directors that is responsible for all decisions the corporation takes. Our government has made efforts to strengthen governance practices in crown corporations and agencies by setting guidelines and best practices for board membership and operation. These best practices include seeking candidates with a range of experience drawn from both public and private sectors. To this end, VIA's board of directors is made up of qualified citizens who represent the diversity of Canada. There are currently members from many regions of the country, with each member bringing their unique skills, experience and perspective to the board.

The bill proposes to limit the pool of potential candidates for selection as VIA board members to only those candidates who are already members of the Canadian Tourism Commission and the Federation of Canadian Municipalities. This is curious logic, as by unduly limiting potential candidates for the VIA board, the bill works against these best governance practices.

Furthermore, as VIA board members have the responsibility to act in the best interests of the corporation and exercise due care and diligence, the proposal in the bill would put VIA directors in a real or perceived conflict of interest with their obligation as directors of the Federation of Canadian Municipalities and the Canadian Tourism Commission.

The bill also promotes the addition of significant financial risk to the government by moving VIA Rail from its current non-agent structure to that of an agent of the Crown. Our government cannot support this proposal as being an agent of the Crown would increase the government's financial risk by exposing the government directly to all VIA's debts, losses and liabilities.

Bill C-640 would further add to the financial risk to the government by providing VIA with borrowing power. The proposed bill allows the corporation to borrow, issue or pledge debt on the credit of the corporation. It also allows the Ministers of Transport and Finance, in co-operation with the Governor-in-Council, to authorize VIA to borrow up to an aggregated total of $500 million from the consolidated revenue fund. Ultimately, however, the government would have to backstop these financial commitments.

Furthermore, the bill proposes to change the share structure to provide employees with a 10% ownership in VIA. This makes no economic sense, given VIA's reliance on federal subsidies to operate. Typical of most scheduled, intercity passenger rail carriers around the world, VIA has no market value as its debts and liabilities far outweigh its assets. With little prospect for share value appreciation, the granting of non-market traded shares as performance incentives to employees would likely be an ineffective and inappropriate use of taxpayers money.

The bill also attempts to define a new mandate and objectives for VIA. In fact, it makes many of VIA's objectives inflexible and removes VIA's ability to seek an optimal balance between its objectives. On the one hand, the proposed legislation mandates the current root structure, while on the other hand, it requires VIA to maximize its financial performance. In other words, the bill ties VIA's hands and sets it up for failure.

Our government believes that VIA operates most efficiently as an independent crown corporation. This means the government does not operate the railway. This means the government does not get involved in VIA's day-to-day operations. This means the government does not try to tell VIA how many times per day it should operate its services.

It does not mean our government provides VIA with the necessary resources and funding needed to achieve its plans. This process has been clearly evident in recent years, with our government providing significant capital infusions and increased operating funding to allow VIA to build extra capacity, replace equipment and align the delivery of its services with planned resources.

Our government believes the current method of approving VIA's direction through annual corporate plans is the best approach. Currently, VIA's object is:

To offer a national passenger rail transportation service that is safe, secure, efficient, reliable, and environmentally sustainable, and that meets the needs of travellers in Canada.

Overall, this approach provides the necessary flexibility in service delivery to Canada's passenger rail service.

Although passenger rail remains an important service, particularly in remote areas and to support tourism across Canada and along the Quebec-Windsor corridor, it is no longer a predominant mode of transportation in Canada. Travel by private car remains the overwhelming choice for most intercity travellers.

VIA Rail is ultimately responsible for making business decision on its operations, including how best to lower its cost to reduce its reliance on federal taxpayer dollars, while meeting its objective to operate a national railway system that is safe and efficient. This is why VIA rail has to continuously assess its markets and operations to decide how best to provide the most economically efficient service to passengers.

The bill would make the process for determining the optimal mix of routes and fleet resources more difficult to achieve and delay VIA from proactively reacting to changes in its marketplace. It would take away this essential flexibility for VIA, resulting in poorer financial performance and governance processes that would not align with best practices for crown corporation governance. It bill would result in higher borrowing, insurance and risk management, costs for VIA. The bill would also result in higher costs and risk exposure for the Government of Canada.

Our government will not support Bill C-640.

[Lise St-Denis, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, the slow erosion of the passenger rail system in Canada is relentless. In Haute-Mauricie, cuts are being made to services for aboriginal people, services for those who travel to receive medical care, services for the many tourists and vacationers, and interregional services. We are facing an organized dismantling of rail transportation in order to decrease service delivery in remote regions. If the government wants to shut down the towns and villages in the regions, there is no better way to go about it.

We no longer see trains passing by. Our train stations are becoming museums in memory of our investments of yesterday in areas abandoned by government. Nevertheless, it is rather ironic to hear the Prime Minister boast about the advantages of occupying the areas adjacent to the Northwest Passage in response to thirsty nations' claims on our Arctic regions, when meanwhile the current government is abandoning our regions by closing the railway lines that forged our national and territorial identity.

How far will the destruction of our symbols and our infrastructure go? You have to be familiar with the regions to see the problems caused by the elimination of train service, and it seems fairly obvious that the executives at the head office have never set foot out of the Toronto or Montreal stations. The cuts made to the passenger rail system should not have an impact on local economies. Were they expecting the Holy Spirit to provide service to remote regions?

Despite the wishful thinking of VIA Rail executives and their obvious lack of sensitivity to rural populations, people are suffering from these haphazard cuts. They are selling stations for a dollar, abandoning one-hundred-year-old services, liquidating our heritage to the lowest bidder, replacing station agents with self-service kiosks—and you can forget it if you are not paying with plastic.

The bill introduced by the member for Gaspésie—Îles-de-la-Madeleine partially meets the expectations of local populations. Is it realistic to put restrictions on VIA Rail to give passenger service priority over commercial or industrial service? We are aware of the limits of such a measure, in light of who owns the railways in Canada. It seems to us that, in this context, the lack of a national strategy for passenger transportation will be a crucial consideration in developing new criteria and controls for VIA Rail.

Little by little, the train has become the means of transportation for urban dwellers, to the detriment of people living in the regions. We are one of the industrialized societies that invests the least in public transit. The dismantling of VIA Rail and its regional services was done without consultation. Changes in rates, schedules and the number of destinations are determined by bureaucrats who happily sacrifice regional development without listening to users' complaints.

How can we get VIA Rail back on track? How can we make the current government realize what is happening in the regions? We understand the gist of the member's bill. We can see the complete indifference of VIA Rail executives towards people in the regions. However, how can we compel this crown corporation and private rail companies without having a national rail transportation policy?

The number and scope of rail disasters should have prompted the minister to develop a serious rail policy. We are still waiting for the improvisation to stop.

We must conduct a comprehensive study of the negative effects of the cuts to passenger rail service in order to align those findings with the modernization of freight transportation.

The government is proposing that penalties be imposed on recalcitrant carriers as the ultimate fix for these carriers' possible mismanagement. The many planned restrictions with regard to services and the prioritization of passenger transportation are not realistic because passenger transportation is not as profitable as freight transportation.

Any passenger rail policy that is developed must align with the development of freight transportation. The co-existence of the two systems requires an assessment of the risks inherent in their respective areas of expertise, which are disproportionate. The prosperity of one must benefit the other.

Regional development, which relies on many industrial bases, is related to the needs of local populations. We cannot hope to earn a profit from our resources without giving small communities sustainable infrastructure.

For many, the end of VIA Rail means the end of many communities. Every generation must reinvent its prosperity. The same is true of the role of this passenger rail stakeholder.

For the time being, we are not assessing the magnitude of the social disaster caused by the disappearance of passenger rail service. We have not assessed the social costs of this disappearance. We believe, as does the member for Gaspésie—Îles-de-la-Madeleine, that VIA Rail must be forced to provide services to remote regions. We believe that the current level of service is lacking. We are disappointed about the lack of regard for passenger safety on a number of lines of this so-called national carrier.

VIA Rail has a critical role to play as a passenger carrier in Canada, but resources are lacking as a result of the lack of interest shown by governments. In addition to imposing a new legal framework on the carrier, we must finally develop a real Canadian passenger and freight transportation policy.

The topic of land use must not be limited to the throne speech. We need to make our historical presence in the north and south a national priority. The almost total lack of rail service in the regions is a daily struggle. The local populations have been abandoned and must reluctantly leave their homes.

We believe that the thought process initiated by the member for Gaspésie—Îles-de-la-Madeleine is the first step toward the creation of a national inclusive transportation policy. The introduction of Bill C-640 enables us to begin a debate on the role of public services in Canada. This bill sets out responsibilities that are consistent with the historic role of parliamentarians in this place. We need to be able to debate the people's needs and report on the progress and setbacks in this domain.

This bill decrees rules of precedence and shared use for the crown corporation and private companies, rules that we have to take a close look at while considering the costs arising from such a policy.

However, private companies do not operate in a vacuum and must be accountable to civil society, particularly with respect to safety and the common good.

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

Mr. Speaker, I am happy to rise in the House today to support Bill C-640, the work of my colleague, the member for Gaspésie—Îles-de-la-Madeleine. He follows in a great tradition of rail advocacy by the NDP. I would be remiss if I neglected to mention Bill Blaikie, who along with his many principled contributions to the House as the member for Elmwood—Transcona and deputy speaker was and remains a fierce defender and advocate of preserving, diversifying, and expanding rail infrastructure in our great country.

Bill C-640 is an effort to turn the tide on the steady erosion of rail travel that began with the Liberals' deregulation of the industry and the privatization of the Canadian National Railway system in 1995.

Bill C-640 seeks to prevent VIA from cancelling routes and passenger service without consulting with Canadians and with Parliament. Canadians have the right to the highest levels of service, protection, and accessibility of travel that can be provided. Instead we have seen the erosion of infrastructure due to neglect and corporate offloading and the cancellation of services across the country.

Canada has a growing population comprising families with children, seniors, and citizens who need to travel and are very conscious of the environmental legacy we are creating for future generations.

With proper stewardship and a visionary plan, there is real potential to revive our once thriving rail travel industry. However, that kind of vision requires a federal government focused on national stewardship rather than what both Liberal and Conservative governments did when they sold off national interests and pandered to those who bankroll their campaigns. Even worse, this current Conservative government, as did previous Liberal governments, refuses to acknowledge that the economic and environmental benefits of a truly enhanced, integrated, accessible, and sustainable rail transit system far outweigh and outlive short-term political gain. It fails to understand that everyone, from the youngest Canadian to the seasoned commuter, benefits from the kind of forward thinking that ensures that rail travel is part of our future.

This reality is not lost on the citizens of London and southwestern Ontario. These are the Canadians who suffer from what is described in the Network Southwest action plan as a mobility gap. VIA Rail needs substantial modernization and service improvements to prevent a further decline in ridership. Investment and modernization would permit the enhancement and strengthening of rail service for future generations.

We have to be forward thinking. Rail travel is cost-effective in terms of the pocketbook and the environment. While high-speed rail is a longer-term vision, high-performance rail is able to operate on many existing main and secondary routes. High-performance rail is part of an interconnected alternative public transit system, and it provides infrastructure to feed future high-speed rail.

The Network Southwest report, written by Greg Gormick in March 2015, outlines the need for VIA Rail services to be upgraded to HPR standards as one of its three building blocks. The plan also includes feeder bus services to provide transit between trains and communities off the rail lines and mobility hubs to connect all transportation modes, including local traffic.

All of this can be done efficiently and seamlessly. There are already several successful models of rail-based regional public transport solutions in the U.S. One of the characteristics they all share is the joint support of federal and state governments. A joint approach by federal and provincial governments in Canada could bring about the mobility improvements needed in regions like southwestern Ontario, and such a transit solution could become a template for other parts of Canada.

A successful precedent for innovation happened after the federal Liberal government slashed half the rail passenger service in Canada in the1990s. In response to that void, the Ontario NDP government partnered with VIA and restored a London-Toronto train that was threatened by the axe. This restored service was a crucial link that the provincial government knew must be saved. It was a matter of determination and foresight.

Bill C-640 would allow Canadians and this Parliament to evaluate cases where VIA Rail plans to eliminate a required route and would call on Parliament to study, debate, and then vote on the recommendations in the minister's report, thus giving Parliament the final decision. Interestingly, that is what our system is supposed to do: ensure that Parliament, and not the party in power, has a role in vital national decisions.

VIA serves three well-populated corridors in southwestern Ontario, and there are many factors in favour of improving these routes. First of all, they service one of the highest population densities in Canada. They can be utilized by significant numbers of students in numerous colleges and universities, students who do not have access to cars.

These routes bring visitors to tourist and cultural attractions, including the Stratford Shakespeare Festival. They have close proximity to Toronto, which is a destination and an economic hub. They decrease often difficult travel on Highway 401 and the QEW. Both those highways can be very hazardous at any time of year.

I have had occasion to meet with numerous community organizations in London and area that rely on VIA Rail for their transportation. Groups like the University of Western Ontario Student Council and Fanshawe Student Union have a keen interest. A significant segment of the London workforce relies on VIA Rail to commute to the GTA. The intercommunity travel between London, Sarnia, Windsor and Toronto is vital to all of our local economies.

The London Chamber of Commerce and business leaders in the community know that without dependable VIA Rail service, many community jobs would be lost. Bill C-640 provides effective measures to ensure that that does not happen.

As the London Free Press reported on April 11, new rail investment would create 30 to 36 new jobs and $3 million to $4 million in economic spinoffs. Bus network improvements would add to those regional economic benefits as well. The cost associated with Network Southwest's five-year plan is equivalent to the cost of building just one kilometre of subway in Toronto and the benefits are huge. American studies indicate that for each $1 million invested in rail, 30 jobs are created and GDP increases threefold.

When we consider the drain on the Canadian economy associated with motor vehicle accidents and injuries which cost us $22 billion per year, these benefits are impossible to ignore.

Rail Advocacy in Lambton says of Bill C-640 that the concept of a national rail policy is, in their view, a necessary step in supporting a sustainable passenger rail system for all Canadians. It says that without this legislation, Via Rail and Canada's passenger rail system is doomed to die a slow death, with no hope of resurrection, unless immediate restorative action is initiated. It says that it needs an affordable, frequent, marketable passenger rail service that ensures no passenger is ever left behind. It also says that this legislation is the first step in a long-overdue process that will make VIA Rail a viable, productive, successful national transportation agency.

Mike from London, Ontario, has written to remind me that next year will be the 160th anniversary of the London and Port Stanley Railway, the third oldest in Canada, founded in 1856. Included in all the other travellers who rode that line were big band musicians and fans headed to Port Stanley's famous Stork Club. Reconnecting London and St. Thomas to Port Stanley's beaches and shops again would be a boost to our local economy.

I also want to mention the work that is being undertaken by the City of London. I am encouraged by London's Shift initiative that presents a bold and important vision for transportation in our city. It focuses on rapid transit as part of the transportation system that will help our city grow and prosper.

The Shift proposal calls for London to conduct a public environmental assessment that allows citizen input in planning and designing the network. In addition, it will assess the need for rapid transit, and how rapid transit can alleviate such problems as congestion, overcrowded buses and the high cost of driving. The assessment will determine which streets are suitable for rapid transit and how they can be designed to improve mobility for everyone, and determine the form or forms of rapid transit that should be used. Shift is a City of London initiative that has great potential.

The integration and coordination of VIA Rail routes and services is vital to moving the population of London in, through and around the community. Bill C-640 lays the framework for that progress to happen.

I am very happy to stand in support of Bill C-640. It is good for the people of London and southwestern Ontario. It is good for all of Canada.

[The Acting Speaker, Conservative, Bruce Stanton]

The hon. member for Gaspésie—Îles-de-la-Madeleine now has five minutes for his right of reply.

[Philip Toone, NDP, Gaspésie—Îles-de-la-Madeleine, QC]

Mr. Speaker, I am honoured to close this first debate on Bill C-640, VIA Rail Canada Act. This bill is very important to me personally. For one thing, it guarantees passenger rail service to my region, in the Gaspé. Regions like the Gaspé need reliable, affordable passenger rail service. In our regions, bus service is far from exemplary, and air travel is simply too expensive.

Our regions need a Canada-wide passenger rail system. It is more affordable than air travel, it is the best option for the environment, it would connect our remotest regions, and it would help develop the economies of the regions served. Let us be clear: this bill is in the best interest of our environment, our economy and our regions.

I cannot emphasize enough the benefits such a passenger rail service could have, not only in the communities that are served directly, but also for society in general. According to the U.S. Department of Commerce, every dollar invested in passenger rail service produces between $3 and $4 in economic spinoffs.

However, our current system is not reaching its full potential. The status quo is simply not working. This becomes clear simply by comparing VIA Rail with the Amtrak passenger rail system in the U.S.

With Amtrak, a traveller can get from Seattle to New York in three days for the equivalent of 275 Canadian dollars, and departures are offered daily. With VIA Rail, a trip from Vancouver to Montreal takes a day longer than with Amtrak, four days in other words, and costs an extra $200, or $475. What is more, VIA Rail offers just three departures a week during the summer and only two departures in winter. In fact, it would be cheaper, better and faster to travel with Amtrak in the United States to get from Vancouver to Toronto.

In the United States, politicians of all stripes understand that a modern country cannot afford not to invest in passenger train services. In Canada, we recognize the importance of investing in public infrastructure such as schools, hospitals, and fire stations. We even allocate a lot of money to road and air transport. Why then refuse to recognize the importance of passenger rail service?

It is not a question of nationalizing a private company because VIA Rail is already a crown corporation and is already subsidized by the federal government. Bill C-640 simply proposes to clarify VIA Rail's role, rights and responsibilities. Canadians deserve to know what they are getting for their investment and to have the power to ensure that their expectations will be met.

The VIA Rail Canada Act would give passenger trains priority over freight trains. This is not all that outrageous. Such a system is already in place in the United States. What is more, VIA Rail was created to free CN and CP from their obligation to provide passenger service. In return, CN and CP now allow VIA Rail to use their rail lines for a fee. It is important to note that VIA Rail pays more than Amtrak for those same rights.

Bill C-640 would allow VIA Rail Canada to negotiate on equal footing with these host railway companies and would ensure that it had scheduling preference in order to promote increased passenger use. Let us not forget that the preference of passenger trains would not apply if it were to unduly impair the freight service of a railway company. This is not about penalizing railway companies. It is simply about ensuring effective passenger transportation.

Bill C-640 would also establish a list of mandated routes. We are paying for a Canada-wide network so we expect to see a Canada-wide network, especially since the service would generate economic spinoffs in the communities being served. This model was very successful in the United States.

I would like to close by quoting the former president of Amtrak, David Gunn. He said:

No national rail passenger system in the world is profitable. Without public subsidy, there will be no passenger rail transportation systems....

We cannot get along without a national passenger rail transportation service in the 21st century. Privatizing VIA Rail is out of the question. The reason why the crown corporation was created was that the private sector was unable to provide this essential service. We must have a Canada-wide service. This bill is the first step in that direction.

[The Acting Speaker, Conservative, Bruce Stanton]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Conservative, Bruce Stanton]

All those in favour of the motion will please say yea.