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 was last introduced in 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.

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.

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 31st, 2017 / 12:50 p.m.


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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, obviously, the riding of Mégantic—L’Érable is pretty far from the coast, but I do understand the concerns of citizens who live near the coast and who must live with the measures contained in Bill C-49. I am convinced that there are many people in my colleague’s riding who would have liked to testify and who would have liked us to take more time to discuss this situation, which is highly problematic, especially for people who live on the coast and are very concerned about it. Unfortunately, the way in which the Minister of Transport chose to present the measures that will affect the people in my colleague’s riding prevents us from taking the time we need to consider all possible consequences. This will lead to unintended consequences.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:45 p.m.


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Liberal

Filomena Tassi Liberal Hamilton West—Ancaster—Dundas, ON

Mr. Speaker, my colleague mentioned “unintended consequences” a number of times. He has probably heard that from our side. The Minister of Finance has used the these words repeatedly in the last couple of months. This is why we engaged in that level of consultation. This is why the Liberals think it is so important to engage in wholesome consultation to ensure we do not have unintended consequences.

Therefore, just as we engaged in consultation with respect to Bill C-49, we did the same in finance with the proposed tax changes. As a result of that consultation, we made substantial changes, and I am proud of that. We listened to do exactly what the member addressed, which was to avoid unintended consequences.

The member said that he liked certain parts of the bill, and I appreciate that honesty. It is fantastic when members in the House can talk about the positive things on which we all agree. Could the member at least mention one or two things he likes in the bill?

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:35 p.m.


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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, first I would like to say that I will be sharing my time with the member for Beauport—Limoilou, and I look forward to hearing his thoughts on this issue.

I also want to thank our transport critic, the member for Carlton Trail—Eagle Creek, for the excellent work she has done on Bill C-49. I had the pleasure of working with her on this file for a while. I know that she worked very hard on this and that she shares many of the opinions that I am going to express here today. I also want to thank Patrick, my intern from the parliamentary internship program, for his assistance in writing the speech I will be giving today. He witnessed the magnitude of this omnibus bill first-hand.

The scope of this bill is huge; it makes significant changes to 13 different acts. It will substantially affect air, rail, and sea transport. This bill will affect most of the trains, planes, and ships that travel around and across our immense country. It is what is known as an omnibus bill.

I would remind members that, in 2015, the Liberal government promised to change the rules of this place to prohibit omnibus bills. The Liberals made that promise to Canadians over and over again. In its election platform, the Liberal Party said that it would no longer resort to legislative tricks to avoid scrutiny. It added that it would bring an end to this undemocratic practice by changing the Standing Orders of the House of Commons.

It was a very convenient promise to make during an election campaign. Now it is more convenient to ignore it. What is even more interesting is that the minister who sponsored the omnibus bill we are talking about today has repeatedly criticized the use of these political games in Parliament. In a motion the transport minister moved in the House in 2012 when he was the Liberal House leader, he suggested that the intentions of omnibus bills were so varied that a single vote on so many matters would put members in conflict with their own principles.

The sponsor of the omnibus bill we are talking about today said those things in 2012. That is a totally different perspective than the one the minister and his government are taking on Bill C-49.

Why did the Liberals change their minds? Where are their principles now that they are in power? Let us not forget that this is not the only political stunt the Liberal government has pulled in order to circumvent the democratic process here in the House. Omnibus bills are not the only trick up the Liberal government's sleeve. To top it off, yesterday it decided to use time allocation to limit the debate on all these proposals. As a result, even though the government's list of proposed changes remains quite long, the time we will have to debate those changes has been shortened considerably. This is the same government that likes to talk about being open and transparent. It claims to be a government that listens, but after having worked with this government it is clear that it really does not.

By all accounts, a bill that changes our transportation system, that weakens the legislative protections for shippers and farmers, and creates a passengers' bill of rights that does not even have the support of passengers' rights advocates, deserves a more thorough and engaged debate. However, yesterday's decision to use a time allocation motion does not really surprise me or any of the other opposition MPs. It certainly did not surprise Canadians who have been watching for weeks as the Liberal government tries to defend their tax reform and the Minister of Finance's decisions in question period.

What is becoming very clear is that Canadians are losing faith that this government has a moral compass. That is another unintended consequence for the Liberals. What is not clear is the bill we are currently debating. After months in committee, and debates and studies on this bill, there are still very few details and explanations.

Let us talk about Bill C-49. The Liberal government says that the measures it is proposing will establish a new air passenger rights regime; loosen international ownership restrictions for Canadian air carriers; enable Transport Canada to examine and approve joint ventures by two or more airlines; update the Canadian freight system; require railway companies to install voice and video recorders in locomotive cabs; expand the authority of the Governor in Council to require major railway companies to provide information regarding rates; and amend the Canada Marine Act to permit port authorities to access the Canada Infrastructure Bank.

All of that is in the same bill. Whether one is for or against certain of those measures, voting is impossible. One may like some of them, but if one dislikes others, there is no way one can logically vote for this bill.

There is a fundamental lack of respect and clarity in all these measures, including the passengers' bill of rights that the government promised. The Liberals say the measure is a document that will protect travellers, but upon closer examination, one can see that is not necessarily the case. Precious little is known about this bill of rights. Nobody knows what it will look like or what penalties will be imposed on airlines if they break the rules.

Instead of putting forward something very clear, the government decided to let the Canadian Transportation Agency made the decisions. The agency will decide what is in the document and will flesh out the details, details that will affect every air traveller and every airline in Canada.

How can we have an intelligent discussion about a passengers' bill of rights without all the necessary information? How can we avoid other unexpected consequences of the sort that seem to be this government's trademark and that arise, when we are not given details about what it is proposing?

We must not forget the unintended consequences of tax reform on farmers and on small and medium-sized business owners. We must also not forget how this government attacked our most vulnerable citizens by clawing back the disability tax credit. As members of the opposition, what can we do to seek solutions to a bill under the current circumstances? For that matter, we are not the only ones sounding the alarm. We cannot support measures that are unclear. The government is asking us to trust it blindly, but it would be irresponsible of us to do so.

Let us move on to the other proposals in the government's bill. Bill C-49 would permit port authorities and their wholly-owned subsidiaries to receive loans and loan guarantees from the Canada infrastructure bank . However, this is somewhat paradoxical because, as members may recall, the infrastructure bank does not exist yet. This measure therefore makes no sense.

This bill would allow port authorities to receive loans from a soon-to-be-created infrastructure bank. In other words, they are getting immediate permission to do business with an entity that does not yet exist. What a great opportunity for the Liberal government to create even more unintended consequences with a new bank that has yet to be approved by Parliament and that will cost taxpayers billions of dollars.

As we continue to consider the impact of this bill on other industries, we find more examples of its lack of clarity. For shippers who use the railways, this bill proposes new 30-km interswitching rates that, according to the government, would be set every year and take into account railway infrastructure needs for the entire system. However, the lack of information about how the bill will implement these rates is leading shipper organizations and producer groups to be cautious regarding their position on long-distance interswitching. Like us, they are not really sure how this is going to affect them.

Shippers like Greg Cherewyk, Pulse Canada's COO, reminds us that the devil is always in the details. In May, he told the Manitoba Co-operator, and I quote, that “every word does matter, and the order of the words matters”. He pointed out that he was not sure about the exact impacts of the government's new proposals.

Today, we are going to vote on this matter because we have to vote on the omnibus bill as a whole. We cannot study this component more thoroughly because the government decided to make it part of one huge bill. We tried to make this part of the bill less vague, but the Liberals voted against those changes, even the administrative ones. It is clear that they do not understand the consequences of these measures, and that will create even more unintended consequences.

The two major railway companies in Canada have also expressed their concern regarding the impact of the new regulations, especially with respect to investments in the Canadian railway system. The president of CN thinks this is an odd decision, especially since NAFTA is still being negotiated and we do not know what impact the negotiations will have on trade. Why then give American companies even greater access to Canada? These are the questions we are asking.

In conclusion, everyone in Canada knows how important transportation issues are. Bill C-49 is an omnibus bill that is forcing us to take a position on measures that might have seemed acceptable but that we cannot support, because there are other, totally unacceptable measures in the bill.

For these reasons, I cannot support Bill C-49. There are too many unintended consequences that we can already foresee.

Once again, I would like to thank my intern Patrick for his assistance writing this speech, and I am ready to answer my colleagues’ questions.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:30 p.m.


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Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, I apologize. I was not here in the House when the previous government was here.

Speaking to the first part of my colleague's question, we cannot compartmentalize such a vast transportation system. When 90% of Bill C-49 deals with one act, I do not see that it is an omnibus bill.

To the second part of the member's question, we worked quite collaboratively in committee. If specific amendments were rejected, it could have been due to duplication or a number of other reasons. There was no malice there. We worked really well together.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:15 p.m.


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Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

In fact, Mr. Speaker, in the fall of 2016, the Minister of Transport exempted from the 25% ownership restrictions two companies that wanted to enter the Canadian market supported by increased foreign investment. This decision is now permitting Enerjet and Jetlines to pursue their intention to create low-cost carrier service to Canadians. With liberalized foreign investment provisions, Canadians would have more frequent access to air travel within and from Canada to transborder and international locations.

Like most countries, Canada limits international ownership and control of domestic air carriers. As I mentioned, under the Canada Transportation Act, non-Canadians currently cannot possess more than 25% of the voting shares of a Canadian carrier. Additionally, Canadian air carriers must also be controlled by Canadians, which means they may not be subject to controlling influence by international investors.

Limits on foreign ownership and control of air carriers are the norm around the world. For example, in the United States, the limit is 25%, while the European Union, Korea, Australia, and New Zealand allow up to 49%, and Japan allows 33.3%. Limits vary depending on the circumstance of each region. However, Canada's current ownership limits may be acting as a barrier to new services and enhanced competition.

Earlier I mentioned that the two prospective ultra-low-cost carriers, Canada Jetlines and Enerjet, have already applied for and received exemptions to the current limits on international ownership from the Minister of Transport. This was granted because both companies successfully argued that, under the current 25% limit, there is insufficient risk capital in the Canadian market to support the launch of new services.

Reflecting on this reality and the Canada Transportation Act review recommendations, the government is proposing changes that would allow international investors to own up to 49% of the voting shares of Canadian air carriers, by introducing legislation that would amend the act and other relevant acts. As I mentioned earlier, countries have different approaches to international ownership of air carriers, and our government wants to make sure that Canadian air carriers compete on a level playing field.

To protect the competitiveness of our air sector and support connectivity, no single international investor or any combination of international air carriers would be allowed to own more than 25%, but how would this benefit Canadian travellers? The direct impact of higher levels of international investment is that Canadian air carriers would have access to a wider pool of risk capital. This would allow air carriers to be better funded and could allow new carriers, which are otherwise not able to find sufficient risk capital, to enter the Canadian market.

New carriers, including ultra-low-cost carriers offering extremely competitive prices, are expected to bring more competition into the entire Canadian air travel sector. This could, in turn, reduce the cost of air transportation and open new markets to Canadian consumers and shippers. Small markets currently underserved by existing carriers could also benefit from services by new carriers. For example, airports in smaller cities that currently offer services to a very limited number of destinations could benefit from the addition of new services since we know that ultra-low-cost carriers use these smaller airports as their hubs. All of this could lead to more choice when purchasing airline tickets, more travel destinations for all travellers, including those from smaller cities, and lower prices for Canadian travellers. Additionally, there could also be benefits for airports and suppliers and the entire country, as more jobs are added to the Canadian economy.

Another improvement to the air travel sector in this bill is that it proposes a new transparent and predictable process for the authorization of joint ventures between air carriers, taking into account competition and wider public interest considerations. Joint ventures are a common practice in the global air transport sector. They enable two or more air carriers to coordinate functions on specific routes, including scheduling, pricing, revenue management, and marketing and sales. In Canada, air carrier joint ventures are currently examined from the perspective of possible harm to competition by the Competition Bureau under the Competition Act.

Unlike many other countries, notably the United States, Canada's current approach does not allow for the consideration of the wider public interest benefits other than competition and economic impacts. Furthermore, the bureau's review is not subject to specific timelines. This raises concerns that the current approach to assessing joint ventures may make Canadian carriers less attractive to global counterparts as joint venture partners and may limit the ability of Canadian carriers to engage in this industry trend.

The bill before us in the House proposes amendments that would allow the minister to consider and approve air carrier joint ventures, taking into account competition considerations. On this latter concern, the current transport minister would work in close consultation with the commissioner of competition to ensure that he or she was properly informed regarding any concerns he or she may have with regard to competition. Air carriers that chose to have their proposed joint ventures assessed through the new process would be given clear timelines for an expected decision.

Providing Canada's air carriers with such a tool would also benefit the air traveller. By joining up networks, air carriers could allow seamless travel to a wide range of destinations and could reduce the duplication of functions. For Canadians, this could mean more seamless access to key global markets, easier inbound travel in support of tourism and business, and increased transiting traffic through our airports, thus increasing flight options.

Globally, airports are making unprecedented investments in passenger screening to facilitate passenger travel and to gain global economic advantages. Canada's largest airports have expressed interest in making significant investments in passenger screening, either through an additional workforce or technology innovation. Smaller airports have also shown interest in obtaining access to screening services to promote local economic development. In the last two years alone, 10 small airports across Canada have requested screening services.

The proposed amendments to the Canadian Air Transport Security Authority Act are important, as they would create a more flexible framework to allow CATSA to provide these services on a cost-recovery basis, which would in turn allow Canada to maintain an aviation system that is both secure and cost-effective. It would also strengthen Canadian communities' competitiveness as they attracted new commercial routes.

That is not all the transportation modernization act would do. Bill C-49 proposes to mandate the Canadian Transportation Agency to develop, in partnership with Transport Canada, new regulations to enhance Canada's air passenger rights. These new rules would ensure that air passenger rights were clear, consistent, and fair for both travellers and air carriers. When passengers purchase an airline ticket they expect and deserve that the airline will fulfill its part of the transaction. When that agreement is not fulfilled, passengers deserve clear, transparent, and enforceable standards of treatment and compensation for such situations.

Under the proposed legislation, Canadians would benefit from a uniform, predictable, and reasonable approach. The details of the new approach would be elaborated through the regulatory process, which would include consultations with Canadians and the air stakeholders. My objective is to ensure that Canadians have a clear understanding of their rights as air travellers without negatively impacting access to air services and the cost of air travel for Canadians.

Bill C-49 specifies that the regulations would include provisions regarding the following most frequently experienced irritants: providing passengers with plain language information about carriers' obligations and how to seek compensation or file complaints; setting standards for the treatment of passengers in the case of overbooking, delays, and cancellations, including compensation; standardizing compensation levels for lost or damaged baggage; establishing standards for the treatment of passengers in the case of tarmac delays over a certain period of time; seating children close to a parent or guardian at no extra charge; and requiring air carriers to develop standards for transporting musical instruments.

The minister has been clear that he intends that the regulations include provisions ensuring that no Canadian is involuntarily removed from an aircraft due to overbooking after having boarded. The minister has issued a challenge to Canada's air carriers on this matter, on seating arrangements for minors, and on moving to strengthen air practices even before new passenger rights are finalized.

The bill also proposes that data could be required from all parties in the air sector to monitor the air traveller experience, including compliance with the proposed passenger rights approach. This data would also inform any future policy or regulatory actions taken by the Minister of Transport to ensure that the air traveller experience to, within, and out of Canada was efficient and effective.

To finish, I will underscore that the experience of Canadian air travellers is a priority for the Government of Canada. We know that it is also a priority for Canadians. This is why we have proposed to increase international ownership restrictions for Canadian carriers. It is why we are proposing new rules on joint ventures that would help create greater efficiencies and more choices for Canadian travellers. It is why we are proposing some modest changes to the provisions of CATSA screening services that should help air passengers transit through airports more quickly. Finally, it is why we are creating a legislative framework so that Canadians can finally benefit from an air travellers' bill of rights.

Once these new measures were in place, they could help lower prices, support increased competition among air carriers, provide more choice to Canadians when it comes to purchasing tickets, and improve service and connectivity for all Canadians and Canadian travellers.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:10 p.m.


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Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, last year the Minister of Transport presented his vision for the future of transportation in Canada, also referred to as transportation 2030. This vision reflects thorough consultation with Canadians, stakeholders, provinces and territories, indigenous groups, and academics, following the release of the final report on the Canada Transportation Act review, also known as the Emerson report.

Transportation 2030 is made up of a series of initiatives under five themes: the traveller; safe transportation; green and innovative transportation; waterways, coasts, and the north; and trade corridors to global markets. These themes encompass various modes of transport and allow the government to take a holistic approach in ensuring the transportation system is equipped to support our broader priorities.

Canadian travellers and their experiences are top of mind for our government. During consultations conducted by the Minister of Transport, we asked Canadian travellers for their feedback, and they were clear. They want lower-cost air travel, more opportunities for leisure and business travel, and they want to see Canada become a more attractive travel destination for visitors. Canadians told us that they want long-term sustainable competition, which will allow for the introduction of additional air services, improved air connectivity, and more choice.

The government has listened, and it is committed to achieving tangible improvements to the traveller experience. As a result of the feedback we received, a number of proposals have been introduced in Bill C-49 to help improve the traveller experience. For example, the government intends to liberalize international ownership restrictions for Canadian air carriers. What does this mean for Canadian travellers? Allow me to briefly describe this initiative.

The legislation proposes to liberalize international ownership restrictions from 25% to 49% for Canadian air carriers, with associated safeguards. For example, a single international investor would not be able to hold more than 25% of the voting interests of a Canadian air carrier, and no combination of international air carriers could own more than 25% of a Canadian carrier. The policy change would not apply to Canadian specialty air services, such as aerial photography or firefighting, which would retain international ownership levels at 25%. Liberalizing international ownership restrictions means Canadian air carriers—and this includes all passenger and cargo providers—would have access to more investment capital that they can use for innovation. This would bring more competition into the Canadian air sector, providing more choice for Canadians, and generating benefits for airports and suppliers, including—

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:10 p.m.


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NDP

Robert Aubin NDP Trois-Rivières, QC

Mr. Speaker, I thank my colleague from Salaberry—Suroît for asking this truly broad question.

Indeed, in this magnificent maritime corridor that is the St. Lawrence and the Great Lakes, all members affected will not have the opportunity to speak. Spokespersons are sent to Ottawa to defend their part of the country, and they are not given the opportunity to speak on bills that affect them directly. That is ridiculous.

As for the passenger bill of rights, the main amendment by the NDP was very simple. It sought to include in Bill C-49 the passengers' bill of rights that was tabled by the NDP in the previous Parliament, and to have us vote on a true passengers' bill of charter, not guidelines for consultation.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:05 p.m.


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NDP

Robert Aubin NDP Trois-Rivières, QC

Mr. Speaker, I thank my colleague for her comments.

We may have wanted Bill C-49 to do more, although I am not sure, as we are already dealing with an omnibus bill. Quite certainly, Bill C-49 could have done better, particularly on the issue of fatigue. Most witnesses were independent. No one would be surprised to learn that the union representatives who came to speak about employee fatigue among their members probably leaned a certain way. Similarly, no one would be surprised to learn that the employers claimed the issue was not really a priority and that it is already being addressed by an all-party committee.

However, neutral witnesses, such as the Transportation Safety Board, came to say that there was a problem with pilot fatigue and that it needed to be addressed. That was not done. Bill C-49 completely misses the mark on the issue of fatigue, even though many joint committees are already working to find solutions.

How can the Minister of Transport not be sensitive to this issue? Unfortunately, I still have no answer.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 12:05 p.m.


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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, it is my first time to rise at this stage of Bill C-49, and due to the time allocations applied, I was not able to have a chance to speak to the bill at all.

I do want to say that I am disappointed that so much has been lost in what is the potential for a transportation act. To give an overarching statement before I go to my quick question to the member, it is as though the Government of Canada decided, for efficient transportation on our highways, we should figure out ways to attract capital investment to privatize sections of road, and hope that people from other countries want to invest. To paraphrase, this is no way to run a railroad.

I thank my colleague from Trois-Rivières very much for his efforts to highlight the importance of fatigue. I would like to ask him if he wants to add a few elements, because it really is a priority issue for the safety of our transport system.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / noon


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NDP

Robert Aubin NDP Trois-Rivières, QC

Mr. Speaker, I thank my colleague for her questions. I will try to answer both.

First, the passenger rights issue perfectly illustrates just how empty Bill C-49 really is. It does not propose a passengers' bill of rights. To be clear, it only proposes guidelines that may lead to potential consultations by Transport Canada, who will then invite the minister to accept or not accept the recommendations made by Transport Canada. Moreover, if that ever actually happens and recommendations are made, they will only be applied through regulation. Once again, that is much easier for a minister to undo than legislation, which can only be amended by Parliament.

On the issue of protected rights, we are miles from what was needed. Though the member may not have been with us in the previous Parliament, I remind her that the Liberals voted in favour of a passengers' bill of rights proposed by the New Democrats, and yet, we were never shown what was now wrong with that bill before throwing out the baby with the bathwater and embarking on consultations.

As for my colleagues, if I can so easily answer questions about Bill C-49, it is only because I have been working on it for months, so I can understand if some of my colleagues need a little more time to prepare than they are given under a time allocation motion.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / noon


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Liberal

Filomena Tassi Liberal Hamilton West—Ancaster—Dundas, ON

Mr. Speaker, first, the member started by talking about concerns of time allocation used on this particular bill. If the member is concerned that not everybody had the time to speak, why did his party, the NDP, give up spots yesterday in terms of speaking to this bill?

Second, the statement was that the member is concerned about lobbying in favour of big business at the cost of consumers. I am quite curious about that because Bill C-49 is about consumers. It is about establishing rights so that travellers can be assured safe and comfortable travel. Would the member not agree that Bill C-49 is an effort, and a very good one, to ensure that travellers are protected and made comfortable in their travel?

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 11:40 a.m.


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NDP

Robert Aubin NDP Trois-Rivières, QC

Madam Speaker, I would really like to say that I am pleased to rise to speak to Bill C-49, but that is not the case. In fact, I rise because I have an interest in this bill and because it is my privilege to do so. As my party's transport critic, I have the privilege of rising first today, which will not be the case for my colleagues who are directly affected by this bill but who will not have the chance to rise in the House because the bill is under time allocation. This is the first serious mistake.

The Minister of Transport told us that this is not an omnibus bill since it only affects transport legislation. However, we could be talking about an omnibus, mammoth, or even a Trojan horse bill, since it contains a number of intentional gaps.

For young people who do not yet have the right to vote, a good metaphor would be a chocolate Easter bunny. Everyone remembers biting into their first Easter bunny only to find it hollow, sadly. What a disappointment. Bill C-49 is kind of like that, especially when it comes to the passengers' bill of rights, which I will come back to.

In speeches from the government side, we hear a lot about Bill C-49 striking a balance, but nothing could be further from the truth. Hearing everybody's point of view is a good thing, but it does not mean that the middle ground the Liberals are proposing strikes that balance. I would suggest it is just the opposite.

It is no secret that I am fond of my fellow Conservative members of the Standing Committee on Transport, Infrastructure and Communities, but we rarely see eye to eye. It would be a shock if one of my Conservative colleagues were to run as a New Democrat in the next election or vice versa. Having heard the same witnesses and the same evidence, they and I have managed to get ourselves on the same page with respect to quite a few amendments. If the right and the left have found a way to agree, how is it that the Liberals, who have positioned themselves as the extreme centre, are not listening to reason? We have to ask ourselves some serious questions about why that might be.

The chair of the Standing Committee on Transport, Infrastructure and Communities was particularly skilled at getting us to work together in a spirit of co-operation. However, unfortunately, the end results do that reflect that. I cannot believe that none of the amendments proposed by the opposition parties were good enough. Obviously, instructions came down from on high that the bill should remain as is, with no changes. That is not what the witnesses we heard from wanted, but that is what the ministers wanted, for their own reasons, which coincidentally are not consistent with the agenda they announced during the election campaign.

To give just one example, during the election campaign, the Liberals promised not to amend the Coasting Trade Act. However, Bill C-49 makes three major amendments to coastal trade. As far as I know, Canadian shippers did not storm the transport minister's office to tell him that he absolutely had to make changes to the Coasting Trade Act because it makes no sense.

The government is therefore responding to other lobby groups. We are seeing that more and more often. I have mentioned it in some of the questions I have had the opportunity to ask since debate began this morning. Lobby groups are having a growing influence on this government, and the outcome always seems to be the same: big business profits at the expense of consumers.

This debate is taking place under time allocation, and yet debate in the House is the only means we have left to try to shed some light on a given situation and change it, if possible.

There are probably dozens or even 100 or so members who wanted to speak in this debate but could not, and yet in a few hours, all 338 members will be voting either yes or no to express their support for or opposition to Bill C-49 as a whole, which is all over the map. This does not say much about our democratic process.

Furthermore, if we look at the Minister of Transport's legislative record, I have to say that after two years, I am not very impressed. There has been talk of a high-frequency train for decades, but nothing is happening on that file. On top of that, during the campaign, the Liberals promised to reverse the terrible amendments the previous government made to the Navigation Protection Act. Instead, we are heading in exactly the same direction as before, and the list of protected waterways in Canada is going to stay exactly as it appears in the schedule of the act, even though many witnesses, if not the majority, wanted the government to abolish that schedule altogether.

However, we are not there yet when it comes to protecting navigation, when it comes to developing rail transportation, or with respect to Bill C-49.

I want to talk about what is not in Bill C-49. After all, it is an omnibus bill that is supposed to cover just about everything that has to do with transportation.

At the Standing Committee on Transport, Infrastructure and Communities, we had the chance to conduct a study on aviation safety and we had a significant number of studies on rail transportation. One thing that kept coming up in both files was fatigue among both pilots and train conductors. Fatigue is the cause of most accidents or incidents. We never want accidents to happen, or at least we hope to keep them to a minimum.

What does Bill C-49 propose to combat fatigue or to take a new approach to air or rail transportation? It seems to me that this also falls under transportation. Guess what? There is not a word. There is nothing in Bill C-49 to address this major issue.

Let us now talk about some of the dubious aspects of this bill. The first one that I want to address has to do with airport safety, especially as it relates to the potential development of regional airports.

Security measures at Canada's major international borders are working well, although there are still questions, mainly about direct costs charged to passengers. Under the former government, a lot of money was charged for security. It is clear that there has been no improvement in this practice under the Liberals, because even more money is being charged for security. According to the most recent data from Statistics Canada, $636 million was collected from passengers and $550 million was actually spent on security measures. That is a difference of $100 million. Where is that money going? It goes into the consolidated revenue fund and apparently is used for other measures. Once again, just like employees' employment insurance contributions that were used for other purposes, passengers are being charged more money for air security than is being invested into the security network.

Furthermore, while millions of dollars are being raked in, regional airports are told that they can certainly expand, but they will have to do so on a cost recovery basis.

What that means, for example for a regional airport such as the Trois-Rivières airport, is that it can obtain CATSA services, but it will have to foot the bill. Oddly enough, Bill C-49 makes no mention of a great report that I have here called “Expanding Passengers Security Screenings at Regional Airports”. This report is signed by no less than nine of the largest airport authorities in three Canadian provinces, namely Quebec, Ontario, and Alberta. The report proposes measures other than cost recovery. Even after the document and research findings were presented in June 2016, which is not that long ago, we have heard nothing from Transport Canada. It is still going with a cost recovery model.

I will give an example of what this can mean for an airport like the one in Trois-Rivières. The Trois-Rivières airport was originally a very small airport, mainly intended for what I would call recreational flying. It offered flying lessons and skydiving, but it was really tiny. Then the city of Trois-Rivières decided to massively expand its airport facilities to turn them into a major economic driver. This involved making numerous investments, such as extending the runway so any jumbo jet could land there. The airport also invested in high-intensity approach lighting so planes could land at any time, day or night. The area's economic activity was diversified, creating a major aerospace cluster in Trois-Rivières. The city has welcomed several aerospace companies, such as Premier Aviation, which is now contracted to maintain much of Air Canada's fleet at its facility in Trois-Rivières. As a recent $500-million investment shows, this company is thriving. Trois-Rivières' aerospace market, specifically its airport, has come a long way from its original recreational niche. It is now a centre for economic development and a major regional hub for business people flying to other destinations in Canada or internationally.

Over the last few years, partnerships have also been developed with aviation companies that offer charter flights to southern destinations. Market studies have been done and Trois-Rivières is clearly the heart of Quebec for a reason. We are the metaphorical heart but also the geographic heart of Quebec. If someone wanted to take a charter flight for a trip down south and had the choice between going to Trois-Rivières with traffic jams that easily last five to six minutes, or to the airport in Montréal, the choice would be quite easy. However, that whole study, that whole potential and all of those agreements already negotiated with carriers have fallen through because CATSA security measures are only available for regional airports through cost recovery. That is totally ridiculous. If an airport like Trois-Rivières, Sherbrooke or any other regional airport has to cover the cost of security measures alone, that drives up air ticket prices considerably. That means that the company is no longer able to compete on the market and the agreement collapses.

However, other options are considered in the report I referred to earlier. In particular, there is the possibility of all amounts collected for security being allocated to security expenses and not returning to the government’s consolidated coffers. We could also consider the possibility of all transportation costs being distributed among all passengers on the flight.

Flying south, whether from Trois-Rivières, Québec City or Montreal, involves the same business and the same security services. The cost could therefore be divided between all travellers annually, instead of the number of passengers related strictly to one airport or another.

There are many possible solutions that should have been heard, discussed, and questioned, but Bill C-49 sweeps all that under the rug, a fitting image today for Halloween.

I just want to say a word about cabotage. I would remind members that the Liberal government committed during the election campaign to not touch the Coasting Trade Act. However, there are three amendments in that regard. There are not one, not two, but three major amendments regarding coasting trade that directly affect the Canadian marine industry.

What are those three amendments in a few words? There is the repositioning of empty containers, dredging activities, and the transportation of bulk products between Montreal and Halifax.

Those are three important areas of economic activity that systematically fell to Canadian shipowners and that could now be offered to foreign shipowners. Because of the market opening under the terms of the economic agreement that we signed with Europe, they are saying that European companies cannot be prevented from conducting dredging in the waters of the St. Lawrence River. Oddly, however, no one can confirm that the opposite is true and that Canadian shipowners would be able to bid on dredging contracts in Europe.

Beyond what might be seen as relatively unfair competition, it is important to realize that European dredging companies, for example, that operate all year long and are much larger, may be better able to consider crossing the Atlantic and remaining in our waters, where they can be competitive, while the opposite is quite hard to imagine.

Trois-Rivières is also a port city. It is impossible to understand this without having visited an organization like the Foyer des marins in Trois-Rivières, where shipowners come from all around the world, but it only takes a few exchanges, sometimes with the help of hand gestures because my knowledge of foreign languages is limited, to realize that there are fundamental differences between foreign-flagged vessels and their crews and Canadian-flagged vessels and their crews. I mention no country in particular as to not single anyone out, but first, we are talking about very different salaries, working conditions and expenses. These amendments to the Coasting Trade Act will therefore create unfair competition that no one ever asked for, certainly not in Canada.

I would like to read one or two quotes. St. Lawrence Shipoperators said, “The Comprehensive Economic and Trade Agreement entered into with the European Union opened an unprecedented breach in the Coasting Trade Act by giving ships of all flags access to certain parts of the Canadian market. Bill C-49 widens that breach. We are witnessing the erosion of the Coasting Trade Act.”

Maritime Magazine said, “After years of underfunding of port infrastructure, disengagement from dredging, and inaction on renewing the fleet of icebreakers, it is now coasting trade that is being sorely tested. It is important for decision-makers to understand the scope of the economic, social and environmental role of maritime transportation and the importance for the country of having a strong and health maritime industry and domestic fleet.”

Those are just two examples about coasting trade. I could also have talked about the Infrastructure Bank that is once again being quietly included in Bill C-49. I could have talked about the passengers' bill of rights. I could have talked about joint ventures.

I could have talked about so many subjects that it shows once again that we are dealing with an omnibus bill and that it is a total disgrace to ask all parliamentarians to vote yes or no on an omnibus bill. It is one more thing that the Liberals committed to stop doing during the election campaign. They seem to have a short memory.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 11:35 a.m.


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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Madam Speaker, I would like to commend my colleague on the excellent speech he gave, in which he very ably summed up what happens when we discuss a bill in committee and when we return it to the House afterwards.

Naturally, we try to work with the government in a different, more collegial atmosphere when we are in committee, to try to get amendments passed. Unfortunately, in the case of Bill C-49, many of the amendments proposed by the opposition parties were voted down by the government.

I will remind members that our committee convened a week before Parliament resumed, to allow for intensive study of Bill C-49. We had to absorb a lot of information in a very short time, because the government wanted to rush this bill through. This unseemly haste was vividly illustrated by yesterday's time allocation motion, which was introduced to prevent members who had something to say about Bill C-49 from speaking.

Would my colleague agree that Bill C-49 amends so many acts and will have so great an impact on various sectors that we should have taken as much time as we needed to study it and that each member should have had a chance to speak on every option and part of this omnibus bill?

In fact, given what the Liberals promised on the campaign trail, this government should not be tabling any more omnibus bills.

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 11:30 a.m.


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NDP

Robert Aubin NDP Trois-Rivières, QC

Madam Speaker, I know that the Minister of Transport does not like it when we refer to Bill C-49 as an omnibus bill, but I think the fact that I have questions for my colleague on a number of different subjects when we are talking about just one bill further illustrates the omnibus nature of it. Since I have to pick and choose, I will refer to a part of his speech that dealt with these joint ventures in Bill C-49 and in which the competition commissioner's authority has been diminished. As we saw in the way the Minister of Heritage handled the Netflix file, lobbies have a considerable influence on this government. My question is quite simple: can my colleague tell me whether the competition commissioner can be lobbied as easily as a minister?

Transportation Modernization ActGovernment Orders

October 31st, 2017 / 11:10 a.m.


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Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, I am pleased to join this debate at the last stage of the bill, affording my last opportunity to mention a few things.

I did not get a chance to stand once more to make another comment for the parliamentary secretary. She used the word “historic” in her speech. It would be incumbent upon me to point out that today is a historic day. It is 500 years since the great reformation when Martin Luther nailed his 95 theses in the Wittenberg Cathedral. That is a true historic day.

The bill is interesting, and it is an omnibus bill. However, before I go into the nature of omnibus bills, I want to mention a unique part of my riding of Calgary Shepard, and I am very honoured to represent the residents there.

The community of Ogden is on the north side of my riding. It is where my constituency office is located. The head office of one of Canada's major railways is also located there. It is called the Ogden stockyards for a reason. CP moved its headquarters to Ogden, a community that was historically set up and named after CP's vice president at the time, Mr. I.G. Ogden. There is a deep relationship between the railroad, Calgary Shepard, and the area in which the riding finds itself. It hosts a spectacular Legion Remembrance Day celebration, commemorating all those who were employees of the railroad and their family members who served in Word War I and World War II. It serves a lunch to the community afterwards. It is a fantastic thing. It started after it moved to the area, with which it historically has a relationship. CP used to have its headquarters in downtown Calgary at the Gulf Towers, but moved it in 2012.

Another interesting part is that because CP cares so much about its history and has such a deep relationship with the community, early in June it moved the 91-tonne Locomotive 29 from downtown. If people have been to the Calgary Stampede, they would see this locomotive on TV, as the parade route passes by it. It is a 130-year-old locomotive, and was moved to commemorate CP's history.

The bill, because it deals with railroads, airlines, and transportation, is omnibus legislation. The minister said yesterday that 90% of the bill dealt with one facet. However, it would go on to amend so many other pieces of legislation, some of which really do not deal so much with safety as with competition and the relationship between a consumer and producer of a good or service provider. Therefore, when the minister says this, then it is an omnibus bill. It is kind of like introducing an infrastructure bank in a budget implementation bill. That makes the budget implementation bill an omnibus bill. Therefore, the Liberals cannot deny that this is another broken Liberal promise.

Yesterday I called it a trick or treat bill. It is offering something that supposedly will resolve an issue or problem in the marketplace, a user-experience problem, but it is not so much the treat but the trick. It would not resolve the issues the Liberals believe it would.

The general opinion I have heard on the bill, from editorialists and critics on passenger rights and the service provided by different railroads, is that the proposed legislation will not meet the goals set out by the government. It might be a step in the right direction sometimes, but it is one step forward and two steps back.

As I had mentioned in my commentary for the parliamentary secretary, all the reasonable amendments put forward by Conservative members were voted down. The three that were not were subamended by Liberal members. I had put forward very similar ideas. The Liberals had heard a very similar concept from witnesses. They are actually changing it from seven to two days and one year to 180 days. These are highly technical date and number amendments done at committee. It is not the type of work I have seen with other pieces of legislation, such as the Senate private member's bill that dealt with the Magnitsky Act. There was far more back and forth and substantive amendments were made.

I know many members expect this, so I have a Yiddish proverb. “To every answer you can find a new question.” I will lead off the rest of my intervention on this proverb.

The more I hear answers from the government and various members on all sides, the more questions I have about the goals of the bill and where it will go. With every answer, I have even more questions. Therefore, I have some rhetorical questions that I will share with the House.

I read a May Globe and Mail editorial called the bill “a strange beast”. Yesterday, I called it the “demogorgon” from Stranger Things, a show I highly recommend for all members of the House, although not for young children.

The bill works at cross-purposes. Editorialists mentioned that the costs might be reduced on one end but would go up on the other end. Hopefully, competition will increase, which is a goal of this legislation. I do not think it will achieve that. The government hopes more people will be enticed to use airline services and choose to fly instead of drive.

Security fees will go up, which is a disincentive for air passengers. However, cost is only one issue for passengers. There is also the user's experience and accessibility. Access, in general, is a point we should always remember.

The bill talks about a higher max amount for foreign ownership being changed for Canadian airlines. Although it is a step in the right direction, it is only one step.

Higher equity stakes by themselves do not lead to more competition, and that is important to remember. Allowing international investors to own a bigger portion of current companies will not lead necessarily to more competition. It is a goal. What we need is a level playing field to allow an opportunity for new airlines and joint ventures.

I have much more to say about joint ventures because the bill gets that balance wrong. It puts the onus on the wrong person. More government involvement in the private sector in business is not the correct way to structure the economy in general.

As well, new entrants will look at taxation and a solid, stable business environment. That is something the fall economic statement does not envision for the future of Canada. GDP is going down every year. There is a gap between the first budget the Liberals tabled in the House and the following budgets, such that GDP growth goes up one year and the next year it goes down drastically. Today is Halloween, so I find these GDP growth numbers spooky.

A few provisions in the bill directly affect how joint ventures will be agreed to. It gives the minister of transport a role in approving applications for airline joint ventures, where two independent companies arrive at a negotiated agreement to provide a service to customers in Canada. Injecting the Minister of Transport into such a process is the wrong way to go. We already have the Competition Bureau to ensure there will be an increase in competition. We should not be involving more ministers of the crown in business decisions. There should be less government involvement in the business sector and the private economy.

The Government of Canada's answer has been that this will be good for business. This brings back the Yiddish proverb that it begs more questions. If the solution is that more government involvement will create more competition and thus be good for customers, then why politicize the process by putting a minister of the crown in the position where he or she has to decide whether a joint venture goes forward? Why inject the minister into a business decision?

The exact reverse is being done in the energy infrastructure approval process where everything is being delegated down to the National Energy Board. We can see the results of this. There is a complete paralysis in companies going ahead with the approval and construction of new projects. A lot of companies are concerned about going forward with new projects being considered in their shops and offices. They have not yet gone to the regulator to propose them. They are concerned that they will be unable to meet the new rules the NEB keeps creating, or that the costs of meeting them will be high.

This does not improve the business environment. Rather, it is worsen it. It would be much better to level the field, reduce political involvement, and ensure business certainty is provided. I do not think injecting the minister into joint venture provisions and allowing him or her to have a say over whether a joint venture can go ahead is the right way.

Most of the amendments were put forward after the committee had heard from witnesses, but I really want to dispel the notion that this bill, as it stands, is a product of bipartisanship or collaboration between the parties. Although I am sure there is collaboration at committee in terms of the discussions back and forth and that everything is cordial and collegial, there still have to be substantive differences between the opposition and the government, and there were on this issue. The opposition parties provided substantive amendments that could have been considered more seriously by the government caucus members for approval. Then we could say the bill was truly due to a collegial bipartisan effort and that the product is good.

What do passengers care about? That is the goal of the bill. Members were asking themselves what passengers and producers care about when dealing with railroads, but especially asked this question with respect to air passengers, because more and more Canadians are travelling by air. Cost, access, and user experience I think are the three most important things. Cost comes down to the dollar amount. There is opportunity to shop on different websites and I think everyone considers how many points they will get. We know that Canadians love their points, whether from Mastercard, Visa, Aeroplan, or Air Miles. Whatever they are, people in this country like to collect points, and it goes into the total cost.

Access comprises the ease of the travel, the convenience, and the airport services. Who can travel and how are other considerations. I choose an airline based on my ability to sit with my kids. I have three young kids and I want to make sure that I do not have to rush to the airport early to get them assigned seats. I want to make sure that they will all be sitting with me, so other passengers and I have an easier time travelling. I actually pick an airline based on the one that will give me the easiest time dealing with my three kids to make sure they can get through their experience.

As for the total user experience, Bill C-49 focuses only on user experience. This is not just my point. Massimo Bergamini, president of the National Airlines Council of Canada, says that the bill focuses too much on air carriers and fails to recognize that the air traveller experience, as I mentioned, does not just start at the check-in phase and then end at baggage pickup. It is the total experience one has. That is far more difficult to get right in one piece of legislation and the bill before the House does not quite achieve that point, because it does not consider the end costs or the access component of it.

We should not sacrifice customer expectations. That point was raised by others, and I agree with it. We are always purchasing difference services and products, and critics of the bill have said that the passenger bill of rights is a band-aid solution. To the point of the Yiddish proverb, the government caucus says this will resolve customer expectation and service-delivery issues, but it begs the question of why we are doing this if critics are saying this is only a band-aid solution. What then is the best remedy? The best remedy is always more competition in the free market, which leads to more consumer choice. The solution is not more government, yet this bill would create more government. By setting out expectations, the government would be able to deliver on more fairness and would be able to police the airlines more effectively. On the railway side, the government would also be more involved in setting prices and telling the railroads how to deal with their customers.

The passenger bill of rights has a section called “Ministerial Directions”, and says, “The Minister may issue directions to the Agency to make a regulation under paragraph (1)(g) respecting any of the carrier’s other obligations towards passengers.” This is after listing a whole series of obligations. In the bill, “obligations” is a very general term. It says, “The Agency shall comply with these directions.” If, in the future, the minister decides that airlines have a new obligation they need to meet, whatever it could be, whether providing a certain type of meal, a certain type of seat, or a certain type of service beyond those enumerated, then the minister can give that direction.

Again, in a free market, we can shop around. That would be the best way to go forward. We have already seen this is in the tech sector. There are apps on our iPads and phones and when an app does not deliver what we expect, we delete it. We get rid of it and move on. Whatever costs we have sunk into it, we ignore them. Hopefully, it was free, though it is not always free, and then we move on.

The same thing applies to smart phones. There is broad competition phones between all of the different smart phone providers and software types offered. People pick and choose which ones they want based on the services offered, the functionality, cost, and ease of use of the phones, and sometimes the ease of transferring to another device when it comes time for an upgrade.

The same concept should apply to airlines and the services they provide, particularly if people are not satisfied with them. It is not necessarily just a matter of choosing between airlines, but also about choosing other modes of transportation. Depending which part of the country someone lives in, people will have different modes of transportation to choose from. If someone lives in the Windsor, Montreal, Toronto, Ottawa corridor, they will have more choices. I have taken advantage of that and taken Via Rail in the past. As a westerner, it is quite an experience because we do not have those types of service levels. The distances are far greater. I could have flown but chose not to. I wanted to experience Canada, as well as the travel time it would take using passenger rail.

I have travelled throughout Europe using passenger rail as well. It is very convenient. Again, their governments are sometimes involved in setting prices, but mostly in dealing with disputes. There is far more competition in Europe. Encouraging competition and new entrants is more than just about the equity stakes allowed. It is a matter of the regulatory environment, fees, and taxes that new entrants will face. At the end of the day, it is about the ease of doing business.

I remember my time working at the Calgary Chamber of Commerce, where people would not come to us complaining about taxes or to verify a specific regulation, although that would happen, but more about the total package. For example, there was the issue of how complicated it was for them as business owners to comply with regulations. That applies to the owners of small-, medium-, and large-sized businesses. If the large businesses are publicly traded companies, the owners will be looking at the quarterly bottom line, and their executive team will be looking at how easy it is to comply with different rules and whether they have the people to do it. Can they meet the expectations of both their customers and the government, and can they deal with their competitors?

I know that the equity stake issue has been used. Vancouver's Jetlines have said they want a higher equity amount in their specific case to capitalize their company. This is because airlines face cash flow crunches and need large volumes of passengers to make ends meet, and profitable routes are quite limited. To have a new entrant come in, companies need to be well capitalized to be able to compete. Therefore, in their particular case, it would be beneficial to them.

As I mentioned before, I think about this Yiddish proverb, and every answer we hear from the government caucus and members leads to more questions. More generally, why do we continue to worry about foreign ownership in airlines? I want to draw a parallel. We are not as worried about the devices we use that are not manufactured in Canada, with operating systems not made in Canada, or that sometimes have data that is not even stored in Canada. I do not hear vast amounts of complaining about that, because people generally like the services they receive from their smart phone providers and the different software they use on the phones, whether it be operating or business software, or other recreational features they use. We are not as concerned about where those components come from, where they are ultimately made, but at the end of the day we care about the user experience and the cost. Foreign ownership in that respect is not as important.

However, with airlines, we could achieve far more if we provided much looser foreign ownership rules. In the legislation itself, the government goes into a lot of detail trying to change it. It has been said that airlines are not at the commanding heights of the economy. I know the government changed some of the definitions of what being Canadian means.

I have been signalled to wrap it up, so I have one last point. The problem thus far is that the answers I get from government caucus members lead me to have more and more questions. The bill is incomplete. Its goals for air passengers will not be met. Amendments offered by my colleagues at committee would have vastly improved this proposed piece of legislation.

I will continue to oppose this bill. I hope that every answer I give during questions and comments leads to even more questions, just as I used the Yiddish proverb to illustrate.