Transportation Modernization Act

An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts

This bill is from the 42nd Parliament, 1st session, which ended in September 2019.

Sponsor

Marc Garneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment amends the Canada Transportation Act in respect of air transportation and railway transportation.
With respect to air transportation, it amends the Canada Transportation Act to require the Canadian Transportation Agency to make regulations establishing a new air passenger rights regime and to authorize the Governor in Council to make regulations requiring air carriers and other persons providing services in relation to air transportation to report on different aspects of their performance with respect to passenger experience or quality of service. It amends the definition of Canadian in that Act in order to raise the threshold of voting interests in an air carrier that may be owned and controlled by non-Canadians while retaining its Canadian status, while also establishing specific limits related to such interests. It also amends that Act to create a new process for the review and authorization of arrangements involving two or more transportation undertakings providing air services to take into account considerations respecting competition and broader considerations respecting public interest.
With respect to railway transportation, it amends the Act to, among other things,
(a) provide that the Canadian Transportation Agency will offer information and informal dispute resolution services;
(b) expand the Governor in Council’s powers to make regulations requiring major railway companies to provide to the Minister of Transport and the Agency information relating to rates, service and performance;
(c) repeal provisions of the Act dealing with insolvent railway companies in order to allow the laws of general application respecting bankruptcy and insolvency to apply to those companies;
(d) clarify the factors that must be applied in determining whether railway companies are fulfilling their service obligations;
(e) shorten the period within which a level of service complaint is to be adjudicated by the Agency;
(f) enable shippers to obtain terms in their contracts dealing with amounts to be paid in relation to a failure to comply with conditions related to railway companies’ service obligations;
(g) require the Agency to set the interswitching rate annually;
(h) create a new remedy for shippers who have access to the lines of only one railway company at the point of origin or destination of the movement of traffic in circumstances where interswitching is not available;
(i) change the process for the transfer and discontinuance of railway lines to, among other things, require railway companies to make certain information available to the Minister and the public and establish a remedy for non-compliance with the process;
(j) change provisions respecting the maximum revenue entitlement for the movement of Western grain and require certain railway companies to provide to the Minister and the public information respecting the movement of grain; and
(k) change provisions respecting the final offer arbitration process by, among other things, increasing the maximum amount for the summary process to $2 million and by making a decision of an arbitrator applicable for a period requested by the shipper of up to two years.
It amends the CN Commercialization Act to increase the maximum proportion of voting shares of the Canadian National Railway Company that can be held by any one person to 25%.
It amends the Railway Safety Act to prohibit a railway company from operating railway equipment and a local railway company from operating railway equipment on a railway unless the equipment is fitted with the prescribed recording instruments and the company, in the prescribed manner and circumstances, records the prescribed information using those instruments, collects the information that it records and preserves the information that it collects. This enactment also specifies the circumstances in which the prescribed information that is recorded can be used and communicated by companies, the Minister of Transport and railway safety inspectors.
It amends the Canadian Transportation Accident Investigation and Safety Board Act to allow the use or communication of an on-board recording, as defined in subsection 28(1) of that Act, if that use or communication is expressly authorized under the Aeronautics Act, the National Energy Board Act, the Railway Safety Act or the Canada Shipping Act, 2001.
It amends the Canadian Air Transport Security Authority Act to authorize the Canadian Air Transport Security Authority to enter into agreements for the delivery of screening services on a cost-recovery basis.
It amends the Coasting Trade Act to enable repositioning of empty containers by ships registered in any register. These amendments are conditional on Bill C-30, introduced in the 1st session of the 42nd Parliament and entitled the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act, receiving royal assent and sections 91 to 94 of that Act coming into force.
It amends the Canada Marine Act to permit port authorities and their wholly-owned subsidiaries to receive loans and loan guarantees from the Canada Infrastructure Bank. These amendments are conditional on Bill C-44, introduced in the 1st session of the 42nd Parliament and entitled the Budget Implementation Act, 2017, No. 1, receiving royal assent.
Finally, it makes related and consequential amendments to the Bankruptcy and Insolvency Act, the Competition Act, the Companies’ Creditors Arrangement Act, the Air Canada Public Participation Act, the Budget Implementation Act, 2009 and the Fair Rail for Grain Farmers Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-49s:

C-49 (2023) Law An Act to amend the Canada—Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts
C-49 (2014) Price Transparency Act
C-49 (2012) Canadian Museum of History Act
C-49 (2010) Preventing Human Smugglers from Abusing Canada's Immigration System Act
C-49 (2009) Law Appropriation Act No. 3, 2009-2010
C-49 (2008) Law Appropriation Act No. 1, 2008-2009

Votes

May 22, 2018 Passed Motion respecting Senate amendments to Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
May 3, 2018 Passed Motion respecting Senate amendments to Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
May 3, 2018 Failed Motion respecting Senate amendments to Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts (amendment)
Nov. 1, 2017 Passed 3rd reading and adoption of Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
Oct. 30, 2017 Passed Concurrence at report stage of Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
Oct. 30, 2017 Failed Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts (report stage amendment)
Oct. 30, 2017 Failed Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts (report stage amendment)
Oct. 30, 2017 Passed Time allocation for Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
June 19, 2017 Passed 2nd reading of Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
June 15, 2017 Passed Time allocation for Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:20 p.m.

London West Ontario

Liberal

Kate Young LiberalParliamentary Secretary for Science

Madam Speaker, I thank the member for his very important words. We have had many discussions over the past two years about transportation, and I know how important it is to get this right. I wonder if the member could reflect on how Bill C-49 would help the Niagara area, because I know how important it is to ensure that transportation is increased and improved in that general area.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:20 p.m.

Liberal

Vance Badawey Liberal Niagara Centre, ON

Madam Speaker, I appreciate the question by my hon. colleague, who has done a lot of work with me on the transportation strategy.

Niagara is unique. We are a trade corridor. We have a very robust multi-modal transportation system, with the Welland Canal going right up the middle of the region, as well as short and mainline rail. We are a border community, with road and air links shared by both nations. Within a one day's drive, we represent over 44% of North America's annual income. Therefore, the bill, as well as the overall strategy with respect to transportation, not only contributes to Niagara, but because of the strength of Niagara as a border community, it can also contribute overall to accomplishing the recommendations that will be coming out of both the strategy and Bill C-49.

We look forward to its being passed. We look forward to taking advantage of the strengths, as well as the resources, that would be made available to us through Bill C-49.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:20 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Madam Speaker, I thank my colleague for his wonderful speech. Bill C-49 is a key piece of the plan to implement the transportation 2030 vision announced by the Minister of Transport last fall.

Would the member tell us a little bit about that and explain why it is important?

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:20 p.m.

Liberal

Vance Badawey Liberal Niagara Centre, ON

Madam Speaker, I appreciate the question from my great colleague, who also does a lot of work on transportation, in particular on the committee.

Canadians expect a transportation system that allows them to travel safety and to bring global trade through our partners' jurisdictions safely, efficiently, and in an environmentally friendly manner. We want to ensure that where and when a product is moving, it is also moving economically and that jobs are created and preserved. Businesses and customers expect a transportation system they can trust and have confidence in to deliver.

Bill C-49 would become an enabler of the entire transportation strategy, transportation 2030, to become something that will breathe and mature and offer our great nation the ability to perform better when it comes to our economy on the global stage.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:20 p.m.

Liberal

Judy Sgro Liberal Humber River—Black Creek, ON

Madam Speaker, I want to ask my colleague to talk a little about the on-board recording device. The unions have visited us at committee and here in the House. They are quite concerned that the LVVR system not be used for disciplinary proceedings. We had assurances from the Canadian Transportation Safety Board and all of the federal departments that this would be used exclusively for safety issues. Would the member like to comment on that issue.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:25 p.m.

Liberal

Vance Badawey Liberal Niagara Centre, ON

Madam Speaker, this has been a point of discussion within the committee, as well as on our side. We have had discussions with both unions: Unifor and the Teamsters. The bottom line is that the LVVR devices would not be used for anything other than safety purposes. They would not be used for disciplinary purposes. As mentioned earlier today, they would be used in the case of an accident, which is reactive, but also in a proactive way, using the video and audio recordings for recommendations that may in fact make it safer for the industry well into the future.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:25 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, it is my pleasure to rise to address the House today on Bill C-49. We have covered a lot of ground in the debate today.

The word “omnibus” has been used by both the official opposition and the NDP to describe this bill. The vision that came from committee and the minister is that this bill reflects the nature of transportation. Transportation, as we know, is now called logistics. It is more than just moving goods and people; it is also the data behind the networks. It is tracking packages as they go from one form of shipping to another. Whether it is from a ship onto a container at a transloading facility, onto rail, and then onto a truck, we need a transportation network that has an act behind it that reflects the true nature of transportation.

The acts that this legislation would cover, the CN Commercialization Act, as was mentioned by the previous speaker, would attract investment up to 25% of the ownership of CN or CP being covered by international investment, to look at attracting international capital into Canada.

The Railway Safety Act, as was just mentioned, would include the use of devices for the safety of rail and, as we saw in the disaster in Lac-Mégantic, how to avoid disasters in the future through the use of technologies, so we can make sure that the equipment is operated safely and effectively. It is governed by subsection 28(1) of the Canadian Transportation Accident Investigation and Safety Board Act. We have a backstop. We will not have to focus on conversations in the cab between the engineer and other operators. We are looking at safety and the safe operation of equipment, and we have acts to govern that. We are looking at the comprehensive nature of safety between air travel, road travel, shipping, and rail.

We are also looking at the Canadian Air Transport Security Authority Act, to authorize the Canadian Air Transport Security Authority to enter into agreements for the delivery of screening devices on a cost-recovery basis. That concern was mentioned by the NDP earlier, but cost recovery can take many forms in terms of financing activities, such as improving screening devices within facilities.

The Coasting Trade Act looks at repositioning empty containers on ships that are registered in any register. There can be tracking of empty containers and a more efficient way of handling the movement of containers across Canada as they become unloaded and go to other forms of shipping, and then eventually get back to the registered owners. It is to make use of the containers throughout the time they are in Canada.

The Canada Marine Act permits the port authorities and their wholly-owned subsidiaries to receive loans and loan guarantees from the Canada infrastructure bank. That infrastructure bank, which has been discussed in this place on other occasions, looks at how to attract international investment. It looks at how to maintain control of it through our management of foreign capital within our shores, knowing how expensive it is to operate ports, to add rail infrastructure, to build bridges, to improve our transportation network across Canada. There are international markets looking for investment, looking for projects to participate in. As long as Canadians know how we are doing that and we are transparent in the way the conditions of Bill C-44 will be coming forward to Parliament so that it can get royal assent and we can get on with investment in transportation, that is what we want.

There are also other acts, as always, including the Bankruptcy and Insolvency Act, the Competition Act, the Companies' Creditors Arrangement Act, the Air Canada Public Participation Act, the Budget Implementation Act, 2009, and also the Fair Rail for Grain Farmers Act.

This bill is not omnibus; it is omni-transportation. We are not suggesting that we cut down environmental protection in the middle of a budget bill or other things that have been termed omnibus in the past. We are not bringing this forward in any way, other than to make sure we have an integrated act that reflects the integrated nature of transportation in Canada.

When we look at integration and different forms of travel, we also have the competition between freight and people. How do we manage the investments in our infrastructure? In my riding of Guelph, people are trying to get down Highway 401 to Toronto on the train, and the train gets waylaid as freight comes through. Freight makes a profit for rail organizations. Freight always takes precedence over people. People are trying to get to work or trying to get home, and they cannot do that efficiently.

The only way to get past these problems is with comprehensive legislation that allows investment, so that we can get dual tracks between Toronto and Kitchener-Waterloo, including Guelph, to have one track for freight and one track for people.

Transportation 2030 is looking at where we are going in the next 20 or so years. We want to have an integrated nature of transportation that can also pave the way to use the new forms of transportation, autonomous vehicles, new ways of moving goods through new ways of port control, and new transloading facilities for rail. We need to have comprehensive legislation, such as Bill C-49, in order to make way for future carriers of people and goods across this great country that we have.

When we look the scope of Canada, we also need legislation that is as broad in scope as we are as a country, so that we can reach northern Alberta, reach Windsor, and so we can have proper control in our major centres of Toronto, Montreal, Vancouver, Halifax, and all points in between.

When we look at the joint ventures, attracting the most efficient use of travel, we do not want part carriers on part carriers and two operations losing money, but a means in which they can collaborate and work to the benefit of Canadians under the new legislation.

Competition is essential, and competition, as I mentioned earlier, includes attracting international participants. We can look at countries where there is best practices that we can borrow from, such as China and the United States. Europe has border issues that it has been able to solve. We are are still working on old border issues that will hopefully benefit from this legislation as well, as we open up our roads and bridges and our rail lines to international markets.

Finally, I mentioned in the question section that Guelph is looking at increasing our opportunities for air travel. We have YKF, which is the international regional airport in Waterloo that is partway between Guelph, Waterloo, Kitchener, and Cambridge. To come to Ottawa this morning, I had a 4:15 a.m. pickup and a shuttle to Pearson. I had to go through security, so I was dropped off an hour and a half before my flight. I got to my office here for 8:30 a.m., after having left Guelph at 4:15 in the morning. If we had YKF operating and we had a low-cost operator, as we almost had last year—we had it for a very short period of time—I would have been able to drive 20 minutes to the airport and be at the office an hour earlier than I was. I would be able to get home to my family a lot easier once we are finished with the work of the House.

However, we cannot do that without good legislation such as we have before us, which attracts investment, attracts competition, and enhances the network that we have in Canada, bringing it into the next century with transportation 2030.

I will be supporting this bill as it comes forward.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:35 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Madam Speaker, I would encourage my colleague to remember that while he does not call this omnibus legislation, it is a bit of verbal engineering to try to stay away from that.

Another thing that the member mentioned in his comments was YKF, the airport in the greatest riding in all of Canada, Kitchener—Conestoga. It is not in Guelph, but it is very close to Guelph. I remember when we had good service directly from YKF to Ottawa. Certainly, anything we can do to restore that service would be welcomed by many people, not just members of Parliament.

My question is related to the issue of the air transport, and specifically the air passenger bill of rights that this bill includes. It seems very thin on details as it relates to the legislation. This was a campaign promise of the Liberal Party in the last campaign, and yet here we have this legislation with almost no details as to the air passenger bill of rights. All of that is going to be left for the regulatory process later on.

Would my colleague care to comment on why the Liberals did not take a little more time to get it right on the passenger bill of rights?

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:35 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, YKF will become active again, coming to Ottawa I am hoping in the near future.

It is interesting to note that with respect to the passenger bill of rights, on one hand we are criticized for putting too much into this legislation, and on the other hand we are criticized for not putting everything we could into it.

The legislation lays the groundwork for a passenger bill of rights to come forward. It really is looking at making an integrated approach to all traffic. The airlines would be a part of that and the passenger bill of rights I am sure would come forward in the early new year, should we be able to pass this legislation before then.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:35 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, I could not agree more with my hon. colleague from Guelph that we made a dreadful mistake when we separated out passenger rail, VIA Rail, and gave the tracks in this country to CN and freight. The current length of trains that are bringing freight across this country is so long that they do not fit on any siding, which is why VIA Rail, that does not control the signals, is sent to the siding and passengers have to wait sometimes for as much as an hour for a freight train to pass.

I do not see anything in Bill C-49 that would fix the problem the member for Guelph just identified. What we need to do is make sure we are investing in VIA Rail and investing in tracks for VIA Rail. I do not see that in this legislation.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:35 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, there is a third rail line, the Guelph Junction line, that also has some shunting yards that move freight between the two major carriers in Canada.

This legislation would open up the opportunity for international investors to see a more efficient network to invest in and attract the capital that we need to pay for the tracks that have to go in to do the dual tracking between some of the major centres in Canada.

Part of the work of this legislation involves attracting attention and investment through the greater efficiencies that it would provide.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:35 p.m.

London West Ontario

Liberal

Kate Young LiberalParliamentary Secretary for Science

Madam Speaker, talking about transportation in southwestern Ontario always piques my interest. We are talking about the London International Airport of course. We are talking about a new low-cost carrier. We are hoping that will come to fruition and it might help all of us get to our destinations that much quicker.

I wonder if the hon. member could talk about that type of investment and how that would serve southwestern Ontario in general.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:35 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, if we were able to have low-cost carriers in London and in Hamilton at YKF, that would take a large load from Pearson and it would take a lot of traffic off the 401. A lot of our traffic now goes to Buffalo because it is easier to fly out of Buffalo, so the greenhouse gas emissions in our area would be reduced. It would provide further opportunities for people to get home faster and to get to work faster.

If we can get this working in London, in Hamilton, and in YKF, Kitchener-Waterloo-Guelph-Cambridge, we will see some terrific advances being made in not only getting traffic off the 401 but also in getting to work on time.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:40 p.m.

Whitby Ontario

Liberal

Celina Caesar-Chavannes LiberalParliamentary Secretary to the Minister of International Development

Madam Speaker, I would like to take this opportunity to speak to Bill C-49, an act to amend the Canada Transportation Act and other acts.

This proposed legislation is critically important to help modernize transportation policies and practices to help ensure that we have safe, clean, and efficient transportation across Canada. Of course, Canada is a vast country and we rely on transportation to ensure that our trade happens across the country and that we are able to travel across the country. Therefore, it is critically important.

Last week, we had an opportunity to hear the great news of our fall economic statement. We saw growth in this country that has not been seen in quite some time in terms of our place in the G7. We have seen the creation of hundreds of thousands of jobs and, more importantly, over 100,000 full-time jobs. Having an efficient transportation system will allow that growth to continue. It will give our businesses, our small businesses in particular, the capacity to get their goods and services from city to city and province to province, and across this great country.

I know that a lot of businesses in Whitby really appreciate the fact that we are looking at transportation. In Whitby, there is always heavy congestion on the 401, just as it bottlenecks into my town. Many of us realize the inefficiencies that can result when we do not pay attention to the intricacies and importance of our transportation networks and to ensuring that we are able to get our businesses' goods and services across the country. This helps broad economic growth. In this we want to make sure that we are taking a whole-of-government approach when looking at ensuring vast economic growth in Canada.

In Whitby there are a lot of families who really like to travel across the country. We have seen various reports in recent times that travel is not so nice for some passengers. The introduction of a passenger bill of rights will give families peace of mind when they are travelling. They want to know that when they have spent their hard-earned money to take a trip across the country either by train or by air that they will be treated appropriately in whatever mode of transportation they take.

However, this is not just about planes or trains. When we think about driving across country on a family trip, it all really ties together. We also want those roadways to be efficient. We want that transportation to be efficient so that people can travel across the country, spend their money, and encourage economic growth when they are going across the country. Again, it is very interconnected, and I think this government has taken a proactive approach of looking at each piece of legislation, seeing that we can build upon each of them in turn and ensure that we do have the economically viable modes of transportation we need to continue to grow the country.

I want to speak a little to the fact that we have adopted some of the amendments brought forward at committee.

When I came to this place, people asked me questions about our capacity to work together across the aisle and to exchange ideas and to ensure that we can put together the best pieces of legislation possible. We have taken the opportunity to put this proposed legislation to committee, and the committee came back with various amendments that we have taken into account. We know that it is very important to the Canadians, including people within my constituency of Whitby, that we serve and represent everyone and take their input into account.

The adoption of those amendments represents a critical opportunity to work together.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 6:45 p.m.

The Assistant Deputy Speaker Carol Hughes

It being 6:45 p.m., pursuant to the order made earlier today, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the report stage of the bill now before the House.

The question is on Motion No. 1. Is it the pleasure of the House to adopt the motion?