Bill C-49 (Historical)

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 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.

Air Transportation

[Karen McCrimmon, Liberal, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, it is my pleasure to provide an update to the hon. member and to the House on the status of Bill C-49 and our efforts to create and implement a world-leading air passenger rights regime in Canada for Canadians.

When Canadians purchase a plane ticket, they expect the airline to meet its end of the deal and treat them with respect, fairness, and consistency. That is why our government has introduced legislation for the establishment of new regulations to strengthen Canada's air passenger rights. The Minister of Transport has even challenged airlines to immediately respect the clear intent of this legislation so we can finally move toward greater passenger rights.

The Senate Standing Committee on Transport and Communications is currently reviewing Bill C-49, and we look forward to hearing the views of the Senate on this proposed legislation.

It is important to note that, should the bill receive royal assent, it would be the Canadian Transportation Agency, in coordination with Transport Canada, that would begin to develop the air passenger rights regulations, not the airlines, as suggested by the hon. member.

Some concern has been expressed about having the proposed air passenger rights regime enshrined in regulations, as opposed to legislation. Let me address those concerns.

The existence of these rights in the regulations would not diminish their power. Air passenger rights would cover a number of issues, including denied boarding and tarmac delays, and would establish clear standards of treatment and levels of compensation in some instances, with specific penalties against air carriers that do not comply.

Utilizing the regulatory process for air passenger rights would ensure that Canadians and industry stakeholders have a voice at the table during the development process. We have always said that the most important voice in this process is that of the Canadian public, and the regulatory process would ensure that this voice is heard and that a balanced and effective air passenger rights regime is developed.

As well, the regulatory process would make it easier to make future changes and modifications, as opposed to the time-consuming process of changing legislation. Other jurisdictions, such as the United States and the European Union, have also taken the regulatory approach for these very same reasons.

As Bill C-49 continues to move forward in the other place, we will continue to listen to Canadians as we work to develop a world-leading air passenger rights regime that will be the envy of travellers throughout the world.

[Lawrence MacAulay, Liberal, Minister of Agriculture and Agri-Food]

Thank you very much, Mr. Chair.

Good afternoon, everyone.

I'm pleased to be back at the committee today. I'm joined by Deputy Minister Chris Forbes and by Assistant Deputy Minister Pierre Corriveau of the corporate management branch.

I want to thank the committee for its outstanding work in support of the Canadian agricultural sector. You have been tackling some very important issues for Canadian farmers, including a food policy for Canada, non-tariff barriers, climate change, and water and soil conservation issues.

My message to you today is that the government will continue to work with you to grow Canada's agriculture and food sector. Today, I'd like to touch on three key points: our progress since we last met, our priorities ahead, and challenges and opportunities.

Mr. Chair, Canada's agriculture and agrifood industry continues to grow. Last year, the industry generated over $111 billion of our GDP. The sector is not stopping there, and neither are we. The estimates you have before you show the government's increased investment of $23 million to support programs in competitiveness, market development, and innovation. That brings our total allocation for the department to $2.4 billion.

As you know, Growing Forward 2 is ending on March 31. We are now working with the provinces and the territories on the new Canadian agricultural partnership. Beginning on April 1, 2018, the Canadian agricultural partnership will drive investments of $3 billion over five years. This agreement will build on the future of our great industry. It will support the growth and potential of the Canadian agriculture and food sector. It will help farmers innovate, grow, and prosper.

At Agribition last week in Regina, I announced federal programs under the partnership. Backed by a federal investment of over $1 billion, these programs will help farmers and processors expand into new markets, be more efficient and environmentally sustainable through agriculture research and technology, and build better consumer confidence.

Trade continues to be a strong focus for our government. We aim at increasing our agricultural exports to $75 billion by 2025. Trade with China will help us get there. This is a vital market for our farmers. China is our second-largest trading partner in agrifood. Their middle class grows by the population of Canada every year.

I was in China two weeks ago with a delegation over a hundred strong. I can tell you, Mr. Chair, that Chinese consumers are looking for the safety and top quality that our farmers can deliver. More and more, they're buying groceries on their smartphones and tablets. I have to say that we had a very successful trip. Industry signed deals for new business worth nearly $300 million, from wild blueberries and barley to swine genetics and ice wine.

We promoted e-commerce to sell our great Canadian food and beverages, and I sat down with my counterparts, Minister Han and Minister Zhi of AQSIQ to explore further ways to develop our trade. We also signed an agreement to collaborate on biotechnology.

Also, we were in Europe in October to help our industry maximize its opportunities under CETA. This historic and progressive agreement will help boost agricultural exports to Europe by approximately $1.5 billion a year.

There is still much more work to be done, and that is why our mission to Europe was so important. We helped open doors for our exporters and made many great connections with European importers. We also held bilateral meetings with many senior EU officials. We want to maximize the opportunities that CETA provides our farmers.

Here at home, we continue to support a strong and modernized NAFTA. Over the past few months, I have met with many government and industry people from the U.S. and Mexico. I can tell you that everyone I've spoken to recognizes the benefits that NAFTA has brought to our industry, our farmers, and the economies in the three countries. Canada will continue to work hard to grow our trading partnership across North America, and we will continue to defend our supply management system and our dairy, poultry, and egg farmers.

We're also investing $350 million in programs to make sure our dairy farmers and processors stay on the cutting edge through new technologies.

To ensure that our products get to the consumers around the world, we're also strengthening our grain transportation system through measures in Bill C-49, the transportation modernization act.

Just yesterday, we announced that Canada successfully restored market access for Canadian pork exports to Argentina, effective immediately. This could put another $16 million a year into the pockets of our farmers.

I want to say, Mr. Chair, that we're deeply concerned by and disappointed with the recent regulatory and tariff decisions made by the Government of India that are affecting the Canadian pulse trade. We've been working together with our farmers to find a mutually acceptable way forward with the Government of India to provide stable, sustainable access for Canadian pulse exports to India.

I've raised these issues with my counterparts in India. Recently, the Minister of International Trade led a mission to India, and the recent increase of tariffs on pea imports was raised at every opportunity. Canada and the rest of the world have been hit with a 50% tariff on peas, and this was a decision that India made without any advance notice. We stand ready to work constructively with the Government of India and our pulse farmers to resolve these issues, thus helping to ensure India's long-term food security.

Mr. Chair, I would now like to take a brief look at our priorities over the coming months.

On the Canadian agricultural partnership, CAP, we continue to work closely with our provincial and territorial partners to finalize the bilateral agreements. Our government is committed to supporting our farmers with strategic investments that expand growth and create well-paid middle-class jobs.

As I mentioned, last Friday I announced federal-only investments of $1 billion under CAP. These investments will focus on key priorities: growing trade and expanding markets; the innovative and sustainable growth of the sector; and, supporting the sector by better reflecting diversity and enhancing public trust.

This is an exciting new chapter in Canadian agriculture, and the Canadian agricultural partnership will help ensure that farmers and food processors can meet the world's growing demand for our high-quality products. My deputy minister will be pleased to provide the committee with further updates on the Canadian agricultural partnership during the second half of this meeting.

Governments fully realize that we must continue to make sure that our business risk management programs respond to farmers' needs. Along with my colleagues from the provinces and territories, we have made changes to strengthen these programs. We also announced a comprehensive review of the BRM programs in partnership with our Canadian farmers.

Innovation is certainly a priority for the Canadian agricultural partnership. It will give our farmers a competitive edge on the world stage. We will continue the great work of our agricultural clusters under the Canadian agricultural partnership. We will collaborate with the private sector to help the industry grow and help feed the world. Our government has identified the agrifood sector as one of six industries that can make Canada a global leader in innovation, and that is exactly what we intend to do.

Action on the environment is key to keeping the sector meeting the global demand for food sustainably. Our government is investing in programs to help farmers adapt to climate change. We have invested $27 million in the agricultural greenhouse gases program, which will help ensure that our farmers are the world leaders in the use and development of clean and sustainable technology and processes.

We have invested $70 million in agricultural science through budget 2017, which will focus on addressing emerging priorities such as climate change and water and soil conservation. We are encouraging industry across the country to take a national approach to the environmental farm plans. These have been tremendously successful, and they have a great potential to build the Canadian brand in global markets.

We look forward to placing an increased focus on environmental sustainability under CAP. I know that your committee has undertaken a study on some of these issues, and I certainly look forward to the results of these studies and how you can inform the government on these issues going forward.

We continue to work towards a food policy for Canada, based on our consultations, which reached tens of thousands of Canadians and industry stakeholders across the country. This policy will be our shared vision for the future of food in Canada. I look forward to the results of your recent study on the food policy.

Mr. Chair, there will always be challenges in agriculture, whether it's tough competition on the global stage, protectionism, or changing consumer demands. At the same time, Canada has the competitive advantages that will help turn these challenges into opportunities. We are blessed with huge resources of farmland and water and the best farmers and ranchers in the world.

The time is right for the Canadian agriculture and food industry to increase its presence on the global stage. Through smart investments and continued collaboration, I'm confident that we're up to any challenge that lies ahead.

Thank you for the great work.

Thank you.

[Kelly McCauley, Conservative, Edmonton West, AB]

Good.

I just want to get back to your website with your watch-list.

Despite what happened in Lac-Mégantic a couple of years ago, you still have it listed on your watch-list as transportation of flammable liquids by rail. We've had some changes with double-hulled tankers and Bill C-49. Why specifically is it still on the watch-list? What's Transport Canada not doing that we should be doing to get this issue off the watch-list?

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

I will follow up on the previous comments in terms of the robust system in the transportation of dangerous goods.

I'm sure you're aware that in Bill C-49, there is an exclusion clause when it comes to TIHs. I'm wondering why an exclusion clause like that would have been put into that bill. We moved an amendment to have it removed because it didn't address the concerns around captive shippers that are shipping dangerous goods or chemicals that are considered dangerous.

If we have a robust system in the transportation of dangerous goods and we know we have another piece of legislation that governs it, why would we need to have an exclusion put into Bill C-49?

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

In fact, I would like to ask more questions about CATSA. Besides, I have one that is very clear.

Bill C-49 indicates that if regional airports want to obtain security services for chartered flights, at the international level, for instance, it will have to be done on a cost-recovery basis. It's also true for designated airports, but it's very true for smaller airports, like the one in my riding of Trois-Rivières.

Have you been able to evaluate, in any way, what the cost recovery is for a regional airport?

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

My questions are going to be directed to CATSA first.

It is my understanding that airlines are required to register and collect the air travellers security charge. However, under Bill C-49 we know that CATSA will be allowed to enter into a contract with airports, both designated and non-designated airports, in order to provide additional screening services on a cost recovery basis. How will airports pay for this additional cost? Can you comment on that?

Transportation Modernization Act

[The Assistant Deputy Speaker, NDP, Carol Hughes]

It being 5:30 p.m., pursuant to order made Tuesday, October 31, 2017, the House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C-49.

Call in the members.

The House resumed from October 31 consideration of the motion that 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, be read the third time and passed.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Madam Speaker, the member talked about how much legislation is in Bill C-49. The member is quite right. It is a very comprehensive piece of legislation. For 10 years we were dormant on this. When we looked at modernizing our transportation network, we looked at rail and air and saw what was happening around the world, and we were just not keeping pace.

I know that the member feels strongly about the Ambassador Bridge but more so about getting that Gordie Howe International Bridge complete. We know that there is $2 billion a day going across our border every single day. It is goods, people, etc. It is really a lifeline, if we think about our trade in this country. That bridge is probably the number one spot for trade.

Does the member not feel strongly that we have to get on with this and move forward? We have to modernize our transportation network for the health of his community as well as our country.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, it is an honour to raise issues on Bill C-49, the transportation modernization act, which is a long bill with many different components in it. I am going to focus on one important component. There are a number that speak to all Canadians and communities, but one specifically speaks to an issue in my community that is very troubling, very sad, and very disturbing. This bill would give the powers that be, those who are appointed, who lurk in the shadows, and who do not have to have accountability, the strength and more empowerment to do what the public does not want. Specifically, Bill C-49 would allow port authorities to have more clandestine borrowing practices through the Canada infrastructure bank and allow the ports to do more environmental and other community damage with less accountability.

People at least appreciate the context of what a port authority can or cannot do. Port authorities across Canada are stewards of the land of the people. That is, first and foremost, what we need to get straight, especially for the people who feel they do not have the power to speak against the powers that be. The reality is that ports, with their control and their power, at the end of the day, are responsible to the Minister of Transport, the Prime Minister, and cabinet, full stop. The use of the lands and relationship with communities are still, at the end of the day, controlled by the Prime Minister, the cabinet, and the people of Canada. They are not private businesses or enterprises that have no responsibility or no moral compass as they go about their business. They are, in fact, having to answer accountably to the Prime Minister and the Minister of Transport.

In my situation, what is very peculiar is that the bill would create additional powers that cause me concern related to a place called Sandwich Town. It is basically the oldest European settlement west of Montreal. It was settled by the French, then the English, and now is the home of many immigrants, new Canadians, students, populations that, quite frankly, have challenges because of the geography. For those out there who feel compelled to understand the story of the underdog, this is it in Canada.

Imagine living in an area where Canada was defended during the War of 1812. This was where it happened on the front lines of southern Ontario. This was where the decisive battles occurred that formed this nation. Aboriginal communities, the British at the time, the militia, and the local populations bonded to defend Canada. Since that time, we have seen the most unusual of circumstances for this small settlement that eventually became part of the City of Windsor, which marks its special foundation today.

I am talking about a small community being trapped next to the Ambassador Bridge, which is owned by a private American billionaire, who in his operations on the U.S. side actually went to prison because of practices related, ironically, to government contracts on the U.S. side, where homes were being bought up, boarded up, and eventually demolished or left to decay. People have lost businesses, schools, and places of faith. All of those things have happened in the shadow of an empire that has 10,000 trucks per day, 40,000 vehicles in total, of pure profit. Some 30% to 35% of Canada's daily trade with the United States, nearly $1 billion, is within earshot of some of the people most disenfranchised because of the repercussions from what has taken place.

Why Bill C-49 is important is that most recently there has been hope, an extended opportunity, with the fight for this area, for a new border crossing. It took place over a decade and a half. The original idea was to allow the development next to this place to destroy it.

However, we have a new border crossing, the Gordie Howe international bridge, which will be built as a result of a compromise among the community, the environment, business, and two nations to finally add border capacity. In this capacity, there will be a community benefit fund. We actually voted for that in Bill C-344, a Liberal member's bill that the House recently passed at second reading, including with the support of the Minister of Transport and the Prime Minister, to at least send it to committee. The community benefit fund is for infrastructure projects such as this to get some relief, planning, and opportunity. That bill, in spirit, is what is taking place. We are finally getting some community benefits to come to this area.

What has happened, and why Bill C-49 is so important, is that the port authority wanted to develop a piece of its property, called Ojibway Shores, against the wishes of the community. This port authority property is pristine environmental acreage, 33 acres in total, with endangered species, flora, fauna, species at risk, amphibians, wildlife, birds, and all of those things that are so important. It is right on the Great Lakes, and one of the last places on the Great Lakes that is undisturbed in this era.

The port wanted to bulldoze Ojibway Shores, it wanted a way to clear it, and it actually got at one time a private partnership that would have done so. The private developer with the port at that time, despite knowing they would have made a lot of money, said no, because it was the wrong thing to do. When they backed out, the port no longer considered Ojibway Shores to be developable. However, the port has asked for $12 million from the community benefit fund to not develop Ojibway Shores for 30 years. They do not just want the land to remain undeveloped, in terms of turning it over to the public in perpetuity, but have asked for $12 million for a 30-year lease not to bulldoze it.

It is almost unconscionable to think that a board member would request this of the public. By the way, board members are representative of the city, province, federal government, and the users. They are citizens like anyone else. Part of people's education today, including the the people of Sandwich, Essex, and beyond who care about the environment, is to understand that people are paid to represent them on these boards and to make decisions. They need to understand that power and their ability to connect with those individuals, and not just in Windsor, but in other ports across this country. This is the first step in actually taking back land and stewardship for the people, which should belong to them.

Bill C-49 now proposes to give more power to the infrastructure bank to allow the ports to develop things. We are concerned about that, because it would potentially open up another revenue source for the port to go ahead and bulldoze the property.

It is interesting right now that when we think about this situation, a choice has to be made for the people. A simple clause would allow this property to be divested to Environment Canada. It is a simple thing that we have asked for. It would just take a two-signature process, and has been done before. We have done the research, and it is actually part of a legislative process, and part of what I think was drummed up with regards to the transfer of properties for situations like this in the public interest.

As I conclude today, we have a choice on this. Right now, Bill C-49 would give more powers, but in the meantime, let us save this situation. Instead of the port getting that $12 million, it can go to poverty reduction, students' education, housing, or employment in one of the most disadvantaged areas of Ontario.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Madam Speaker, I welcome the opportunity to provide some comment at third reading on Bill C-49. I represent a part of the country that has a lot of rail workers, and I have heard concerns from the workers themselves and from their union about Bill C-49 and what it would mean for their privacy rights when they are working on trains across Canada and the ability for employers to access footage and audio recording of those workers working on trains pretty much for just about any purpose.

The government says that the real rules are going to come in regulation, but we have seen that it is a government that has a pretty cozy relationship with some of the major transportation companies in Canada, and frankly, its track record has not been very good.

We heard already from my hon. colleague about some of the concerns around privacy, which are very real and ought to be addressed in the same way they are for the airline industry, where only the Transportation Safety Board has the authority to look at those recordings. I wonder if the member would want to expand his comments to the question of why Canadians should have faith in the government to leave it all to regulation, without legislating in favour and ensuring the privacy protection for railway workers in this country.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, before I begin, I wish to notify you that I will be splitting my time with the hon. member for Windsor West.

When I look at this bill and examine some of the debate surrounding it, I think about some of the Liberals' key messaging over the last two years, specifically how they like to talk a lot about helping the middle class and those working hard to join it. However, when we look at some of the measures contained within Bill C-49, I believe that some of them are indeed designed to help the corporate class and not the middle class.

I want to concentrate my speech, because to give a 10-minute speech on such an expansive bill makes is nearly impossible to do in the detail it deserves, but there are a few key areas I wish to touch on that I believe have incredible significance for the constituents I represent and, indeed, many Canadians across this great country.

We have opposed some of the principal amendments proposed in this bill. I have to give great credit to my colleague from Trois-Rivières for his incredible work on the transport committee, and the way he has informed our caucus of the work he is doing. He did a lot of great work on this bill. He attempted to shift it, to amend it, to change it, and to make it more amenable. We can see that those efforts came to naught when the Liberal-dominated committee chose to reject them.

The first measure in the bill that we oppose is with respect to the arrangements between airlines. This bill amends the Transportation Act to give the Minister of Transport the power to approve joint venture arrangements between airlines even if the Commissioner of Competition finds an arrangement to be anti-competitive and one that could increase the price of airline tickets. Again, this measure is not really designed to help middle-class Canadians, who will have to suffer through this if prices are increased.

Next, the Transportation Act is amended to increase the limit on foreign ownership of Canadian airlines from 25% to 49%. I believe there was even a study cited on Transport Canada's website showing that this would have absolutely zero effect on increasing the competitiveness of Canadian airlines. Therefore, we have to wonder why that measure is in here.

Another point is with respect to the amendments to the Railway Safety Act that would will force railway companies to use video and voice recorders.

Of course, there is also the attempt to create some sort of passengers' bill of rights, wherein the Canadian Transportation Agency is ordered to propose and make regulations to establish a new passengers' rights regime. Indeed, this last issue is one that is very near and dear to our caucus. In previous parliaments, several members have fought long and hard to codify a passengers' bill of rights through private members' bills. Therefore, although we are glad to at least see the attempt made here, we are certainly unhappy with the end result.

This bill primarily protects the interests of foreign investors and violates the right to privacy and workers' rights. That is specifically with respect to railway workers.

We are certainly in favour of improving the rights of air travellers and protections for grain shippers, but we want to call upon the government, and indeed we have called upon the government, to separate those specific measures out of this omnibus bill so they could be studied as separate pieces of legislation and passed into law. I think the government side would have found a lot of co-operation from the Conservatives and NDP if those measures had been left to standalone bills so they could be examined in the detail they deserved.

We opposed Bill C-49 at second reading, and certainly made attempts to amend the bill at committee. Many amendments were put forward by both the Conservatives and the NDP, but ultimately many of them did not make it. We moved amendments specifically to establish far more concrete air passenger protection and compensation measures, to make the interswitching routes more accessible to grain farmers, and to protect the labour rights of train conductors, which were all rejected by Liberal members of Parliament.

Now I would like to talk about the joint venture agreements between airlines. Currently, the Commissioner of Competition has the power to determine whether these joint venture arrangements are anti-competitive and whether to apply to the Competition Tribunal. It gives me great pause to now know that the minister is in fact going to have final power over these measures.

The bureaucracy is supposed to be non-partisan and not influenced by outside events. However, cabinet is lobbied extensively by many different companies and private interest groups. In the current government and in previous governments, once corporations try to bend the ear of government, legislation sometimes is changed in their favour. To give the minister this kind of power, a person who can be lobbied by industry, and who perhaps gets a greater voice than the average Canadian citizen does, gives me cause for concern.

If Air Canada proposed an arrangement to merge its operations with those of an American company, even if the commissioner were to find that agreement would lessen competition among airlines and would increase ticket prices for passengers, the minister could still approve that arrangement. We are quite concerned with this.

With the amendments to the Railway Safety Act, Bill C-49 would force railway companies to fit their locomotives with video and voice recorders. The government wants us to believe this measure will improve rail safety, but we are worried that Canadian National and Canadian Pacific could use the information to discipline their employees and measure their productivity.

We believe the bill is far too vague and does not specify how the private information of train conductors would be accessed, collected, and used by the minister and the railway companies. Therefore, we proposed amendments to limit the use of these video and voice recorders to the Transportation Safety Board. Of course, that was rejected by the Liberals. We have concerns this may violate those workers' charter protections, specifically under section 8 of the Charter of Rights and Freedoms.

The vice president of the Teamsters Canada Rail Conference stated:

We think the bill in its present form is contrary to our rights as Canadians. To exempt 16,000 railroaders from PIPEDA, we believe is not appropriate, and this legislation would call for a specific exemption for the purpose of our employers, the people who have been found to foster a culture of fear, to watch. We have a problem with that.

I would like to move on to the part that has the most significance for people all across Canada, the venture to try to establish some sort of rights regime for passengers.

In the previous Parliament, the NDP introduced Bill C-459, which would have codified many of these measures and put them explicitly into an act. It was a far stronger effort than what we see in Bill C-49. The measures in Bill C-49 give the minister the power to make regulations.

Regulations can be well and good for certain measures. For certain legislation, we want the minister to have that leeway to change rights and so on. However, we again have to raise our concerns that if airline companies start lobbying the minister really hard on these, how are the regulations eventually going to turn out? Are the regulations going to start benefiting airline companies, or are they honestly going to be on the side of passengers? That is why we feel codifying these in the actual bill rather than leaving them to regulations would have been a far stronger measure.

My concerns are not unjustified with respect to Air Canada. I would like to remind members of when we were busy debating Bill C-10, which was the government's attempt to legislate outsourcing for Air Canada. It was an amendment to the Air Canada Public Participation Act. Air Canada definitely had the ear of the government during that time. It brought forward a bill that specifically benefited that company and left many workers out in the cold. It gave Air Canada the ability to outsource jobs if it so wished.

Half measures are not what we were expecting after this length of time. Two years have passed. We would have liked to have seen some greater efforts in many of these areas. We are disappointed that this bill is the final result.

[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.

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Last I checked, Madam Speaker, we are debating Bill C-49, and it would do nothing for passengers.

I was very clear in my remarks. The bill is a hodgepodge of a number of ideas, but there are not a lot of details. The devil is in the details, and passenger advocates have been clear that this legislation does not cut it.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Madam Speaker, when we look at this vast country, with a pretty small population, what we have seen are a lot of monopolies and oligopolies when it comes to transportation in our rail system and our airlines. We have few, and that has caused a lot of concern, a lot of challenges, and a lot of difficulties for our shippers.

The member should listen to the experts and read the science on modernizing our transportation system and making a better transportation system.

I listened to University of Saskatchewan professor James Nolan, who said that this is good news for our grain shippers. He said, “The bill is surprisingly pro-shipper. Shippers have got a fair number of concessions that they wanted”.

This legislation would meet shippers' requirements when they have only one or two transport companies in their area they are able to negotiate with. This legislation would enable them to move away from that, maybe the primary carrier, and have another carrier take care of their needs. That has not been possible, and that has been a challenge for farmers. We must listen to the experts.

Would the member for Simcoe—Grey not agree that bringing in more competition through Bill C-49 would help our industry, our farmers, and our businesses compete in what we find in our country, which is a transportation system with few players?