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.

Motions in amendment

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

Mr. Speaker, I truly appreciated working with my hon. colleague on the transportation, infrastructure and communities committee when he served as the shadow minister for infrastructure. It is on that note that I ask my question.

Clauses 73 and 74 would amend the Canada Marine Act to allow ports to borrow money from the Canada infrastructure bank. When the member was on the committee, he put forward a motion that we study the infrastructure bank. Would he like to comment on that measure in Bill C-49 and why he believes this might be problematic?

[Alain Rayes, Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, today we are debating a bill that makes significant changes to 13 existing laws and affects three different sectors, namely the air, rail, and marine sectors.

By introducing this grab-bag of a bill on transportation modernization, the Liberals are breaking their campaign promise to not introduce omnibus bills during their term. This is just one more broken promise. Let us face it; Bill C-49 has lost the media's attention. There seems to be some push-back now, after it was introduced under false pretences as dealing exclusively with the passengers' bill of rights to ensure rights and guarantees for all Canadians. Perhaps that is what the Liberals are going for, that is, a communication plan, a political strategy, and a few talking points designed to make people forget all of their mistakes and broken promises.

From the beginning of the session, the Liberals have been managing one disappointment after another and are drowning in a political quagmire: supply management threatened, the mishandling of the Netflix deal, incredibly long delays and chaos regarding the plan to legalize marijuana, and the Minister of Finance's conflict of interest regarding his botched tax reform. This government could really use some good news, and that is probably what it is going for here.

Nevertheless, it is our job as parliamentarians to scrutinize the repercussions of a bill and to have the courage to point out the risks and problems of a given measure, even if that is not a popular move. That is what the Conservative Party did when the government introduced tax reforms that it framed as fair but that we figured out were anything but. That is what the Conservative Party has done since this bill was introduced. My colleague the member for Carlton Trail—Eagle Creek, who sits on the Standing Committee on Transport, Infrastructure and Communities, talked to her committee about asking the government to split the bill into four parts to make it easier for the committee to examine it closely. Every single one of the Liberal members said no, and they refused to explain themselves. Canadians do not see that as a confidence-inspiring move on the government's part; it is the kind of decision that feeds the public's cynicism towards politicians.

First of all, let us clarify a misconception: this bill does not specify what compensation passengers might be entitled to; it only establishes that they will eventually be eligible for compensation. We are to vote on the form, but not on the substance. We have no real information whatsoever. The government would rather shirk this responsibility and hand it over to the Canadian Transportation Agency. We are asked to vote on a blank cheque.

That is not all. If we give the Canadian Transportation Agency the responsibility of deciding which regulations will be part of the passengers' bill of rights, we also give the Minister of Transport the power to be the sole advisor to the CTA. That means that penalties will not be set by an independent body, unless the minister objects to these penalties and imposes his own proposals. How ironic for members to have to vote on handing over all of their powers to a single minister, the Minister of Transport. How ironic for an elected official to be allowed to deliberately influence an independent, non-partisan agency.

The Canadian Transportation Agency will therefore not be able to consult consumer groups, airlines, airports, or any other stakeholder in the sector, only the Minister of Transport. That is not all. The minister is also giving himself extensive powers to approve joint ventures between airlines. That power traditionally belongs to the Competition Bureau, which should also be independent and non-partisan, and certainly operate at arm's length from the Minister of Transport.

The lack of integrity and transparency in the process is quite apparent, but mostly it is troubling. If the minister cannot bear to allow the agency to establish its own standards, he should simply present them to the House and give all members a say on the matter.

There is another false message: the purpose of the bill is to reduce travel costs for Canadians, while improving service, and yet the reverse could happen. The costs related to the bill could force consumers to pay more, since they will have to pay for the new regulations, for example, regarding overbooking.

If the goal is to enable Canadians to travel for less, why not just lower taxes for airline companies, which already have a narrow profit margin, by cancelling the carbon tax, for example? Canada already has more than enough aviation legislation. Today, the government is just making it more cumbersome and complicated and forcing passengers to foot the bill.

The third inaccurate and false message is that this bill is a new air passengers' bill of rights. That is how the government is presenting it, but in reality, it will also affect three other modes of transportation and amend 13 different laws. Passengers' rights and benefits are just part of the bill. By leading Canadians to believe that this bill simply creates a new bill of rights, the Minister of Transport is glossing over a good portion of the bill, the part that is much more controversial and unpopular. The goal of this voluntary oversight is clear: to control the media message and ensure that the Liberal government does not make any more mistakes by announcing controversial measures.

That is why the transport minister failed to mention that the bill will allow foreign investors to own up to 49% of the shares in a Canadian company, give the transport minister the power to approve joint ventures, update the Canadian freight system, require railways to install audio-video recorders in locomotives that could be used for disciplinary purposes, and amend the Canada Marine Act so that port authorities can go through the Canada infrastructure bank that the government just created.

On top of all that, passengers' rights advocates and many consumer protection agencies are opposed to the bill as it was introduced by the Minister of Transport. Gabor Lukacs of Air Passenger Rights thinks that the bill of rights will not adequately protect passengers and that it would be more effective for Canadians to take legal action.

Jeremy Cooperstock, associate professor at McGill University and founder of a passenger rights web site, felt that this bill did nothing to protect air passengers and that the air transport regulations and the Carriage by Air Act already do the bulk of what is promised in this bill. In other words, we are reinventing the wheel. The Liberals are very good at that.

As if that were not enough, case-by-case management of the complaints and the long-haul tariff being charged to the railways could add more red tape. We will have to hire extra people and hope that consumers do not get discouraged by the response time and drop their complaint. In short, no one will come out ahead and no Canadian will be better protected.

I urge the House to be wary of the smokescreen this Liberal government is deploying today to make us forget its endless string of failures, disappointments, and disorganized policy ad libbing. I also urge all my parliamentary colleagues to be wary of the scope of power that this bill would give the Minister of Transport. We must also closely monitor the minister's dangerous intrusion into independent, non-partisan organizations such as the Transportation Agency and the Competition Bureau.

Lastly, to all those who are thrilled by the prospect of passengers getting more rights, I must point out that this bill makes no provision for consumer compensation. I would remind all members who are planning to support this bill that they will not be able to boast of having voted to improve rights and protections for the Canadian public.

Passengers' rights advocates are all profoundly disappointed to see this issue fumbled yet again. The bill before us is incomplete, imprecise, and totally inconsistent. It would be deeply troubling if it were to pass in its present form.

This bill is yet another sloppy rush job aimed at grabbing even more power by any means possible and entrusting it to a single individual, in this case the Minister of Transport. The same thing happened with the Minister of Finance's tax reform plan. We need to be extremely vigilant. I urge all members, even those on the Liberal side, if they have the guts, to condemn this bill and vote against it.

[Sean Fraser, Liberal, Central Nova, NS]

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

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

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

[Martin Shields, Conservative, Bow River, AB]

Mr. Speaker, I have already heard a lot of people speak about Bill C-49. I had the privilege of attending the hearings in September when I subbed in for that week. I found the hearings incredible in the sense of the knowledge that was shared by all of the experts, as well as the learning, and collegiality among all parties listening and questioning the people there. Having said that, I put some notes down on paper. I am not as well spoken as the previous member, so I will refer to my notes extensively.

Bill C-49, the transportation modernization act, makes large-scale changes to how transportation is regulated in Canada. It is an omnibus bill. It makes big changes to rail, air, and marine port authorities. The question is, does it make all the right ones?

I would like to discuss the complicated set of changes Bill C-49 makes to rail in Canada. The changes to the long-haul interswitching this bill makes replace the provisions introduced by the previous Conservative government, which extended interswitching distance to 160 kilometres. Those provisions expired on August 1. I remember well the winter of 2013-14, and the reason why these changes were made at that time.

This is a significant challenge. It needs to be dealt with sooner rather than later. The shipping industry has been left in limbo since that time. Shippers and producers rely on those tools to ensure access to competing railways. Without them, they lose an important bargaining chip in negotiating prices with railways. Some would say they were not used that much. On the other hand, they were there as a bargaining tool.

This directly hurts competition and can even result in no produce being moved at all in some areas. That' is what happened in the Peace country in 2014. That is why the Fair Rail for Grain Farmers Act was necessary to address the situation in 2014.

Therefore, new interswitching provisions are long overdue. Unfortunately, it is far from clear whether this bill meets its objective of improving shipper and producer options with the 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. Bill C-49 proposes changing this so that the interswitching rate over 30 kilometres will be decided by the CTA on an ad hoc basis. The witnesses I heard at the transport committee preferred the 160-kilometre regulated rate system we already had.

The 30-kilometre interswitching rate will be set each year. It takes into account the railroad's infrastructure needs across their entire network. This could increase the rate paid by shippers.

The rate-setting regime this bill introduces needs to be designed to ensure that shippers have access to competitive rates. As designed, the rate will 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. The government cannot just design this system and leave it to its own devices. Without a sunset clause, which we heard asked for many times, or predesignated review dates in two to three years, there are absolutely no guarantees for shippers and producers that they will benefit.

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

Speaking of captive shippers and producers, it is noteworthy that the nearest interswitching location for many shippers and producers in northern Alberta and B.C. would be in Kamloops-Vancouver corridor. The other exclusionary zone is from Quebec City to Windsor. Interswitching is not allowed beyond 30 kilometres in these areas. For these captive shippers, the new interswitching provisions will do nothing to yield more competitive rates and improve competition. This is a serious problem. These captive shippers and producers have no choice but to use one company to which they are effectively held hostage.

It is important to remember that railways in Canada operate in a near monopoly situation. This situation could put shippers and producers at a real disadvantage. The provisions of Bill C-49 that allow shippers to request a contract from a railway, with reciprocal penalties, offers the chance to foster more competition.

However, the penalties need to be designed to acknowledge that the railways have much greater economic power than the shippers. 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. Therefore, the government needs to take a clear position that because of the difference in economic power, railways would be penalized at a higher rate than shippers. One dollar to a shipper versus one dollar to a railway is very different. Giving both the same fixed penalty would not be reciprocation. The railway simply would not face a meaningful penalty for failing to fulfill its service obligations.

The lack of short-line rail is also a pressing issue. There are very few left, and they are a critical component, where they do exist, of our infrastructure. Without them, we need to rely on trucking, which is hard on the roads in municipalities and worse for the environment.

When the railway does not operate efficiently for shippers, the whole supply chain is impacted. This we heard a number of times. They need to collaborate and plan with the whole chain, or the system does not work efficiently. If the respective parties plan their supply chain, the whole system has a chance to be more equitable and efficient. If a producer contracts with a shipper for a specified date, then gets a call that the cars will be showing up a week late, that is a problem, and the producer pays the penalty. The cars then show up late at their destination, and the producer is often the one who ends up suffering for it. When railways do not get their cars where they are supposed to be on time, that incurred cost goes back to the producers. They are held ransom by the whole system.

What I heard in committee when this bill was being considered was a lot of talk about adequate rail service. This bill needs to do more than strive for adequate. The government has expressed a desire to increase agriculture exports by 40%. Transportation needs to work much better, or increasing the amount of produce will be irrelevant. Canadians need and expect great rail service. We need an efficient system that ensures that cars show up and ship grain on time.

We all are aware that NAFTA negotiations are ongoing. 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. The U.S. could access this Canadian traffic without reciprocity. It seems like weak negotiating on the part of the government to give up this leverage before NAFTA negotiations are concluded.

With regard to air travel, Bill C-49 introduces some interesting provisions. It would take the ultimate authority on joint-venture decisions away from the commissioner of competition, which was mentioned by others, and would give it to the minister. It would further require the minister to take into account the public interest. This is a broad and extremely subjective term. We currently have an independent, non-partisan public official making the decisions to promote competition. The bill may introduce a needless political component to the decision-making process.

Bill C-49 would also allow the Canadian Air Transport Security Authority to sell security screening services to airports. When large designated airports that already have security screening services buy additional screening, that cost is shifted to the airlines. The airlines then pass it on to consumers. This provision would essentially be a veiled tax on air travellers.

I respect that the government intends to benefit air passengers by introducing this bill. However, it would leave what compensation passengers would be entitled to from the airlines to the discretion of the minister and the CTA. This would be extensive government intervention. We cannot risk those well-intentioned measures actually making air travel more expensive through ad hoc decisions. The CTA would have to determine on a case-by-case basis if a service breach was the fault of the airline or of any other factors. We need a charter of rights. We need it up front. People need to know what the compensation factors are, not to be judged ad hoc.

The administrative costs of implementing this legislation could be large. Again, it is a large omnibus bill, with many parts to it. Do we have all the right parts in it? I think not. There are other things that could have been done and should have been done.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Mr. Speaker, I am speaking to Bill C-49 today. I am opposed to this bill because of a number of issues with it, but in particular I want to speak to section 14 of the bill.

Section 14 concerns the review of arrangements involving two or more transportation undertakings providing air services. In other words, section 14 involves joint ventures between two airlines, joint ventures that allow airlines to co-operate in terms of sharing routes, frequent flier programs, and revenue-sharing and cost-sharing.

This is not an insignificant section of the bill. This is a major change to competition law. Section 14 of Bill C-49 makes major changes to the Competition Act.

I want to take a step back and explain why I think this is so concerning. The Competition Bureau is a very important organization. It ensures fair competition in Canada. It ensures that Canadian consumers and Canadian companies operate in a marketplace where they can prosper, a marketplace where there is sufficient competition, and a marketplace that delivers lower prices and more choices for consumers and companies.

Canada has long had a strong legal tradition and strong framework legislation in the area of competition law. We introduced competition law before the United States did in the 19th century, and throughout the last 150 years we have continually strengthened that competition law in order to ensure that we do not see anti-competitive behaviours in the marketplace.

I remember in 2004 when the then-minority government of prime minister Paul Martin was in place. It introduced a bill that would modernize competition law with the introduction of administrative monetary penalties that would work in place of, and alongside of, Criminal Code penalties that have a much higher threshold of proof.

While that legislation did not pass, the subsequent Harper government introduced similar legislation that was eventually adopted, and administrative monetary penalties are now part of our competition law. Canada has long had a strong tradition of ensuring competitive marketplaces. We are also seen around the world as leaders in competition law enforcement and ensuring that companies cannot abuse their marketplace position.

It is with great concern that I read section 14 of this bill that is in front of us, because it would weaken the bureau. The bureau is an independent law enforcement agency. This bill would actually take power away from the Competition Bureau and the commissioner of competition, and give it to the Minister of Transport. Not only that, it would allow the Minister of Transport to ignore competition concerns and to approve airline joint ventures.

The reason why this is so very concerning is that we know that more competition and a more competitive marketplace leads to lower prices and more choice for Canadian consumers. If we look at the history of airline policy in this country, we have come a long way over the last 30 years.

Privatization and increased competition have given Canadians more choice and lower prices in the airline industry. We started with deregulation in the 1980s, we privatized Air Canada in 1988, we spun out of Transport Canada the airports across this country in 1992, we established independent airport authorities in the 1990s, and because of that, there have been literally tens of billions of dollars of investment in airports and in airlines in this country.

For example, in the early 1990s, some $50 million a year was being spent on airport improvements. Since airports were spun out of the Department of Transport in 1992, over $14 billion has been invested in Canadian airports. The same is true of Air Canada. It is a much better airline today than it was in the 1980s when it was heavily regulated and not subject to competition, and owned by the Government of Canada. Today it is a much better airline, and it is a better airline because it has been subject to competition.

However, the job is not yet done. It is clear through numerous studies that the Canadian travelling public is still paying far too high a price to get from A to B in this country. That is why section 14 of the bill is so very concerning. It is going to lead to less competition, increased prices, and less choice for the travelling public, which runs counter to the effort that we made over the last number of decades to increase competition and lower prices for Canadians.

I want to give an example to illustrate this point. In 2011, Air Canada wanted to enter into a joint venture with United Continental that would allow them to share many transborder routes between Canada and the United States, and Canada and other destinations. That joint venture was fully reviewed by the Competition Bureau and the bureau demanded that certain conditions be put on that joint venture. The bureau in its review concluded that 10 cross-border routes between Canada and the United States would be less competitive for Canadian consumers because Air Canada and United Continental would be subject a monopoly and nine other routes would be subject to less competition than currently is the case.

The bureau refused to approve the joint venture unless certain routes were exempted, so the consent agreement that was entered into between the parties and the Competition Bureau exempted 14 cross-border routes from this joint venture, ensuring that on those 14 cross-border routes there was sufficient competition for Canadian consumers. The bill in front of us today would allow the minister to override the bureau and to approve these joint ventures without any conditions to ensure sufficient competition.

If we take a step back from this and we ask ourselves why the government is doing this, it seems to me that one of the reasons is that it has become a bit of a political “scratch my back and I will scratch yours” game. The government pressured Air Canada to buy 75 C Series jets from Bombardier in order to help the government politically with the problem it had with Bombardier. Fearing that the company was entering a dangerous period of insolvency, the government put a lot of pressure on a private sector company to purchase these 75 C Series jets.

I suspect that in return two bills were introduced in Parliament. I think the government needs to come clean on whether or not there was a quid pro quo in this arrangement. Air Canada buys these jets and in return the government introduces two bills, Bill C-10, which lifted the requirement for Air Canada to have maintenance facilities in certain cities in this country, and Bill C-49, which has section 14 that would allow the Minister of Transport to approve joint ventures without any conditions to ensure sufficient competition.

This would be a real step back for competition law. It would weaken competition particularly when it comes to future joint ventures that airlines in this country may enter into. It would lead to higher prices for Canadian consumers and less choice. It is for that reason that I strongly believe that this section of the bill should be deleted and why I am opposed to the bill. I look forward to members' questions and comments.

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

Mr. Speaker, I thank my colleague for her question. My speech and questions may have made it sound as if I want to throw the baby out with the bathwater and think everything is terrible.

There is one positive aspect of our work that I would highlight, however, and that is the collegiality of committee testimony. We get to hear every point of view in committee. We studied Bill C-49 for five days from dawn to dusk, and we were happy to do it. Every piece of testimony added one more brick to the building of this bill.

That being said, why is it that, after our study, these bricks are not being used to build up the bill? Why are they instead being used either to build a Liberal version of the bill, or to stone some amendments to death?

Several lines of consensus clearly emerged from all of the testimony we heard during our study of Bill C-49. The reason they are no longer reflected in the bill is not because members from any party felt uneasy about calling for a given addition, deletion, or change. It is because, I repeat, all of the amendments were rejected, except those the Liberals had proposed.

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

Mr. Speaker, I would like to thank my hon. colleague for his remarks. I thoroughly enjoy working with him on committee. In fact, he would have made the observation during our clause-by-clause study of the bill and amendments made that we often had the same amendments we would have brought forward. I believe that was because it completely reflected what we heard from the stakeholders and experts. These were not amendments that we came up with ourselves, but amendments that the industry told us were needed.

The other observation made at that time was that this piece of legislation was a crowning achievement. I do not know if he would like to comment on that, but what I would ask him to comment on is the privacy commissioner's letter that was written to our committee chair, dated September 12, 2017, which raised concerns about how Bill C-49 was addressing the data that was going to be collected from LVVRs. Now that we are at report stage, does the member believe that the bill addresses these concerns adequately?

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

Mr. Speaker, I admit that I had two reactions when I learned that I had another 10 minutes to speak to Bill C-49.

First, I felt a little bit of panic. I asked myself how I would manage, in 10 minutes, to cover everything that is wrong with this bill. Second, I told myself to calm down, because no matter what I say, I will not be heard, and nothing I suggest will be retained. I will simply have to talk about some aspects of the bill that seem to have major problems, raise the question of relevance, and talk about how we work in the House and in committee.

Members will recall that during the 2015 election campaign, the Liberals said that everything about the previous Conservative government's approach had to be changed. Now, we see that essentially nothing has changed. As soon as a party is in government, it seems to magically become all-knowing, and bills automatically become wonderful and unchallengeable.

I still maintain that enlightenment comes from the clash of ideas. This is also what Quebeckers and Canadians expect from Parliament. They expect all members, regardless of their role in the House or their political stripes, to bring their perspectives and to work together to find the best solution. I must say that this is not the experience I am having right now.

I want to take the few minutes I have left to give an overview of the aspects of this bill that are ill advised. This bill plays well in the media, because Canadian consumers have been waiting for this for years. For a number of weeks the public saw Bill C-49 as a bill on the passengers' bill of rights, and yet, it is much more than that. It is an omnibus bill, so even if it often deals with transportation, it remains an omnibus bill.

One might ask why the government would introduce an omnibus transportation bill instead of addressing each problem and finding the best solution. Was the government hoping to use a wide-ranging bill such as this to discreetly gloss over some issues it does not care as much about? To ask that question is to answer it.

I will say that, as I was preparing my speech, I began to think 10 minutes might be too much. Perhaps I would not need more than 10 seconds to sum up Bill C-49 with the help of an old saying about biting off more than one can chew. That is exactly what is happening with Bill C-49, a bill that tried to tackle some major and necessary changes but falls short in many regards.

I want to comment on the passengers' bill of rights that consumers have been waiting for for years. Canada will once again be the last hold-out in adopting a passengers' bill of rights not unlike the ones that already exist all over the world. Let me emphasize that a great many witnesses told the committee that similar bills of rights already exist and that the European version is probably the gold standard. The European model is actually the one that inspired a New Democratic colleague of ours to introduce a proper passengers' bill of rights during the 41st Parliament. All Bill C-49 does is offer some general guidelines for Transport Canada consultations so that, at some point in 2018, the department can come up with some recommendations that the minister can do with as he pleases. If we are lucky, I get the sense the government will propose a passengers' bill of rights a few weeks or months before the 2019 election to generate some media hype. In the meantime, passengers will still have no rights.

No one needed to reinvent the wheel, here; every single witness testified that the systems that already exist work well, and yet, what we have amounts to an empty gesture. I would like to share one brief example of the difference a bill of rights can make.

Flight cancellations that invoke the European passengers' bill of rights account for 0.4% of all cancelled flights, whereas in Canada, where we still do not have a bill of rights, the rate is four times higher. That shows beyond a doubt that a bill of rights does have a real impact.

This could even be described as a government approach, since all of the rules that will make up this bill of rights will be applied by regulation. They will not be embedded in the act and so the minister will be able to easily change them on the back of a napkin some Friday afternoon as he sees fit. It is much more complicated to amend a law since that requires the involvement of the House. The approach is therefore questionable, as is the fact that the bill of rights is not embedded in Bill C-49,

I also want to say a few words about the voice and video recorders that were mentioned in previous questions. Everyone agrees that we should try to do everything we can to enhance protections and decrease the number of potential incidents. That is why airplanes have black boxes. As soon as there is an incident, the data from the black box can be checked to try to determine what the problem was, come to the best conclusions possible, and amend the approach if necessary.

We proposed an amendment that allayed all of the concerns workers have about the bill of rights and the protection of privacy. Everyone agreed that the Transportation Safety Board of Canada inspectors were the ones who needed that information. That is what those recordings should be used for. The TSB and the TSB alone should have access to those recordings if an incident occurs. That would allay all of the concerns of workers who might think that the employer could use those recordings for disciplinary or other purposes. It also addresses any concerns regarding the violation of privacy. The recordings would be available to TSB inspectors and only TSB inspectors when necessary. That is another amendment that was dismissed out of hand.

I would like to talk a little about the competition commissioner. Those who followed the case will remember the joint venture agreement between United Airlines and Air Canada that the competition commissioner ruled on. He said that a number of routes should be omitted from the agreement because, in the end, it was consumers who would lose out. He had the authority to limit this sort of agreement.

Now, the government is giving the minister that power, and relegating the commissioner to an advisory role. The minister can make his own decisions based on the public interest, a concept that is rather vague and becoming even vaguer. The committee never managed to define this concept. Neither the minister nor any of the witnesses or public servants who appeared managed to define it. That could result in an abuse of power by the minister, who may not necessarily defend the interests of Canadian and Quebec consumers. That is a serious problem.

Finally, I want to talk about regional airports. We all agree on the need to develop regional airports. Many companies want to offer cheap flights from regional airports rather than the larger airports. Some municipalities, such as Trois-Rivières, have explored the option of developing chartered flights, but had to abandon the idea because the cost of security is too prohibitive. No consideration is being given to the possibility of redistributing the cost of security to every passenger and airport. Instead, those who want security services are simply being told they have to pay for it. If a regional airport like the one in Trois-Rivières wanted to offer security services and pay for them itself, it would have to charge an extra $70 or $80 per ticket. We know full well that at that rate, the airport cannot compete and the idea will be dropped.

Those are the four elements I wanted to address. I sense that the Speaker would like me to wrap up so I will leave it there and make myself available to answer questions.

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

Mr. Speaker, I have to tip my hat to the response I got from my Conservative colleague a few minutes ago when she said that she cannot get inside the head of a Liberal. I would not be able to manage it either.

I always believed that in the House, as well as in committee, solutions emerge from the clash of ideas. That is how we come up with the best solution. I must apologize to the hon. member for saying earlier that no amendment had been accepted. That is not true. One amendment was accepted, and then only because the Liberals had proposed the exact same one. That is not what I would call open-minded. Even in the example that we are talking about, voice and video recorders on locomotives, what is being proposed in Bill C-49 is at odds with the conclusions of a Transport Canada working group.

I will repeat the question. What place do the opposition parties have in developing a bill if all amendments are always rejected?

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

Mr. Speaker, I am pleased to rise today to speak to Bill C-49.

Our rail transportation system is essential to Canada's reputation as a reliable trading partner. It is one of the economy's driving forces. That is why our government is taking a proactive approach by introducing this bill. The proposed measures will support the system's commercial orientation, which has made Canada's freight rail service one of the most efficient systems with some of the lowest freight rates in the world—even lower than in the United States.

Railway companies have also made significant investments to make Canada's rail transportation system more efficient and safe. That is why this bill also includes measures to promote future investment. This bill not only adds to our success, but will also ensure future risk management. Even if the rail transportation system is currently doing fine, there are some pressures to handle.

Canada's freight rail legislative framework must address these pressures, and that is why Bill C-49 would foster a balanced, efficient, transparent, and safe freight rail system. Overall, the freight rail measures in this bill strike a delicate balance between railway and shipper interests and provide the right conditions for our freight rail system over the long term. These legislative provisions would provide shippers with stronger tools so they can access the highest level of service at the best possible rates.

Through their diligent work in reviewing Bill C-49, the Standing Committee on Transport, Infrastructure and Communities has proposed amendments that would further strengthen Canada's freight rail legislative framework. Amendments made by the committee include providing captive shippers in British Columbia, Alberta, and northern Quebec with access to long-haul interswitching; extending the notice period for the removal of interchanges and clarifying that the removal of an interchange does not relieve a railway of its level of service obligations; advancing the timelines for the coming into force of the new data requirements on service and performance metrics to six months following royal assent; and tightening the timelines for the posting of these metrics on a weekly basis by the Canadian Transportation Agency, which would improve transparency. Together, these amendments would strengthen the freight rail provisions while maintaining the balance that Bill C-49 is intended to achieve.

Safety is also a critical element of our future success, and that is why this bill includes important measures on voice and video recorders. We recognize that the greater use of technology can often create challenging and complex dynamics in the work environment. I am certain that my hon. colleagues can appreciate that this is the case with the proposed amendments to the Railway Safety Act, which would mandate the installation of voice and video recorders in the locomotive cabs, including both freight and passenger trains.

As background, allow me to remind my hon. colleagues that the call for in-cab voice and video recorders was added to the Transportation Safety Board of Canada's watch list in 2012. Further, the question of mandating this technology has been studied numerous times and been the subject of various recommendations from technical industry working groups, the TSB, and parliamentary committees. This includes, over the years, Transport Canada working groups, with the participation of the railway industry and labour unions, to study the feasibility and safety benefits of requiring this technology in locomotive cabs, specifically in 2006, 2009, and 2012. The latter resulted in the adoption of a voluntary approach whereby railways were encouraged to install the devices on a voluntary basis. More recently, there have been calls for a mandatory regime in the independent Canada Transportation Act review report and in the 2016 report of a committee of this House, the Standing Committee on Transport, Infrastructure and Communities.

The Transportation Safety Board of Canada has always supported a regime such as the one being proposed in this legislation, which is outlined in their safety study on in-cab recorders published in September 2016. In that report, the Transportation Safety Board of Canada concluded that to maximize safety benefits, the use of data obtained from these recorders should not be limited to post-accident investigation, but rather should be used to also support proactive safety management.

The government has carefully considered and examined how to maximize the safety benefits of this technology while respecting employee privacy. This is why the changes we are proposing specifically define, limit, and control access to, and uses of, the data obtained through these recordings in accordance with Canadian privacy laws. As my hon. colleagues can attest, this is a comprehensive and balanced approach that would significantly advance railway safety while expressly supporting employee rights.

Bill C-49 also proposes a new, transparent, and predictable process that takes into account both competitive and public interest considerations in the assessment of air carrier joint ventures. Under the proposed process, the Minister of Transport would receive a report from the commissioner of competition identifying any risks to competition. The minister would assess these arrangements from a public interest perspective and make a decision taking both competition and public interest considerations into account.

As mandated by the amendments made at committee, a summary of the commissioner's conclusions and the minister's final decision would be made public to ensure the transparency of the process. Making this information public would inform Canadians of the grounds for granting or refusing a joint venture arrangement, and under what conditions, and would likely help build public confidence in the process.

Also, due to a clerical error, the text of the French language version of the adopted amendment continues to make the publication by the commissioner of competition a voluntary step in the process instead of a mandatory one. There is a government amendment being proposed at report stage today that would correct this clerical error so that the English and French versions of this bill will be aligned.

To conclude on this topic, it is expected that joint ventures would lead to better connectivity and an overall improvement in the air passenger experience, while ensuring competition.

As it relates to air passenger screening services, Canada's largest airports have expressed an interest in improving the timelines of passenger screening, either through additional screeners or technological innovation. At the same time, some smaller non-designated airports have expressed an interest in obtaining screening services to help develop economic opportunities. 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.

Additionally, important amendments to the Canada Marine Act are proposed that would allow Canada port authorities to access loans and loan guarantees from the newly created Canada infrastructure bank, which would support investments in Canada's trade corridors and infrastructure projects, contributing to our long-term growth as a nation. Finally, Bill C-49 would improve the efficiency of Canada's supply chain by allowing foreign vessels to reposition owned or leased empty containers between locations in Canada on a non-revenue basis.

In summary, Bill C-49 provides critical objectives, including fair access to shipper remedies, efficiency, long-term investment, transparency, and safety. I urge members to support Bill C-49 in its current form and to adopt it as quickly as possible so that the right conditions will be in place for a successful winter season in our rail transportation system.

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

Mr. Speaker, I thank my colleague from Carlton Trail—Eagle Creek for her presentation. I admit that I agree with the key components of her speech. It is truly a pleasure to work with her at the Standing Committee on Transport, Infrastructure and Communities. I would not have believed it when she was in the Conservative government and that brings me to my question.

Since she was once on the government side, and it will surely be my turn in 2019, what happens to members when they arrive in government to make them suddenly think that they have all the answers and that every amendment proposed by the opposition is out of order?

That is what we experienced with Bill C-49, and that is what we recently experienced with Bill S-2 as well.

What makes the Liberal government members think that the light only shines when it is red?

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

moved:

Motion No. 14

That Bill C-49 be amended by deleting Clause 73.

Motion No. 15

That Bill C-49 be amended by deleting Clause 74.

Mr. Speaker, it is an honour for me to rise and speak to my report stage amendments to Bill C-49, the transportation modernization act.

This bill amends 13 other acts. It deals with planes, trains, and ships. It touches on airports and seaports. It is vast in its reach and wide in its scope. Yet, if I had to state my thoughts on this bill in two words, it would be “missed opportunity”.

Through Bill C-49, the government had the opportunity to make great strides in improving our Canadian transportation system to ensure that it works well for all Canadians. Instead, the government let that chance go by.

The transport committee began special hearings on Bill C-49 in the week prior to the House's return from its summer recess. Over the course of that week, we heard 44 hours of testimony from dozens of stakeholders and expert witnesses in each of the sectors touched on by Bill C-49. We were given briefs and letters, consisting of thousands of pages of data, with over 100 suggested technical amendments from those whose lives and livelihoods will be affected by this bill.

We heard, almost unanimously, that Bill C-49 was a good start, and that if the suggested amendments were made, the bill would actually accomplish its stated objectives. However, after only two weeks to review this mountain of information, the Liberal members of the transport committee defeated over 24 reasonable technical amendments. Again, these amendments were suggested by a wide range of stakeholders and experts, and were written to make the bill a workable solution for all involved.

The good new is that there are still some amendments we can make here at report stage of this bill. I will be suggesting four amendments, as they were moved. The first of these has to do with airline joint ventures. Joint ventures, while sometimes useful for creating efficiencies for airlines on routes in the air passenger industry, can also run the risk of comprising consumer interests due to the loss of competition on a given route, and the ensuing increase in ticket prices.

That is why the decision to grant or deny an application for a joint venture has historically been left in the hands of the very capable Competition Bureau and the Commissioner of Competition. Bill C-49 would change that. If the bill were to pass in its current form, the Minister of Transport would have the final say on whether or not two airlines could combine routes and share cost and profit.

Further, this bill stipulates that the Minister of Transport must consider the nebulous terms “public interest”, and not simply whether or not a proposed joint venture would reduce competition. I use the word “nebulous” to describe the terms “public interest”, because over the past two years, far too often we have seen the Liberal government and its ministers claim to be serving the public interest while, in fact, they are only serving their own political or personal interests.

The recent political machinations that led to the cancellation of energy east come to mind as an example of the government serving its own political interests rather than the interests of all Canadians.

However, getting back to the amendment before us, this change gives an uncomfortable amount of power to the Minister of Transport over the currently non-partisan process and over the Competition Bureau. Bill C-49 risks taking a non-political process and politicizing it.

Bill C-49 also introduces an option for airport authorities to purchase the services of additional security personnel from CATSA. Ostensibly, additional staffing would increase the speed at which travellers are processed through security. On the surface, increasing security and processing speed to ensure that travellers remain safe while not missing their flights sounds like a good idea. However, there are two significant areas of concern.

The first has to do with costs. Air travel in Canada is already among the most expensive in the world. This provision could increase the costs even more. We all know that any added cost for the airports would simply be passed along to the end user, making air travel for middle-class Canadians even more expensive.

Second, we heard in testimony throughout the study of this portion of Bill C-49 that the federal government currently takes more in security fees than it provides back to CATSA to perform its duties. I believe this is unacceptable.

This is the opposite of making travel more affordable for Canada's middle class. Bill C-49 would, rather than addressing the issue, simply impose yet another de facto tax on Canadian travellers. For this reason, I have proposed a report stage amendment to remove this clause from the bill.

I am also proposing an amendment to remove two other clauses, clauses 73 and 74, from Bill C-49 that would give port authorities access to the Liberals' infrastructure bank. The infrastructure bank is funded by taking $15 billion away from infrastructure projects for small and medium-sized communities across Canada through the Liberals' imposition of a $100 million minimum cost requirement for projects to qualify for support from the infrastructure bank. Small and medium-sized communities would see almost no benefit as a result. While I understand that our ports are in need of infrastructure investments, the infrastructure bank is not the way to address this.

While these are the report stage amendments I am proposing, I was very disappointed by the display of partisanship at committee when this bill was reviewed. At committee, my colleague from the NDP, the member for Trois-Rivières, and I proposed small, reasonable, technical amendments, which were defeated by the Liberals at committee.

For instance, with the introduction of long-haul interswitching, the Liberals sought to create their own solution to a problem which had already been addressed with a reasonable Conservative solution.

In the Fair Rail for Grain Farmers Act, the previous Conservative government had created a regime of extended interswitching that worked so well in the prairie provinces that shippers from across Canada requested that it be extended to the entire country.

Instead, the Liberals created the complicated, inefficient long-haul interswitching regime that has such poor conception, and so many exceptions, it will be all but useless to shippers. For example, the member for Trois-Rivières and I both proposed an amendment requested by many stakeholders that would have made LHI work that much better.

This minor technical amendment would have changed the wording of the provision to allow the first interchange point to be in the reasonable direction of the shipper's destination. What does that mean exactly? Simply put, shippers did not want to have to send their product potentially hundreds of kilometres in the wrong direction to reach the nearest interchange point, as this would increase their costs. What happened to this very reasonable technical amendment? The Liberals defeated it. It was another huge missed opportunity to make this bill work.

Meanwhile, not content to make this measure simply worthless, the Liberals may have actually succeeded in making it harmful. In Bill C-49, toxic inhalation hazards, known as TIHs, are exempted from long-haul interswitching, supposedly due to safety concerns. However, this is not a reasonable exemption to make. TIHs are shipped under an extensive safety regime, as prescribed under the Transportation of Dangerous Goods Act and its regulations.

The real concern is that this exemption undermines the principle of the common carrier obligation. This principle essentially states that railways are obligated to carry all products without discrimination, and allows shippers to access the railway's services without unreasonable carriage fees or threats of denial of service. Denying access to long-haul interswitching for TlHs could be the thin edge of the wedge that would one day break apart the common carrier principle.

Ten minutes is not nearly long enough to list every reasonable technical amendment that the Liberals voted against. Suffice it to say this bill is full of missed opportunities. It is my hope the government will take a small step forward, and accept our report stage amendments.

Speaker’s Ruling

[The Speaker, Geoff Regan]

There are 15 motions and amendments standing on the Notice Paper for the report stage of Bill C-49.

Motions Nos. 1 to 15 will be grouped for debate and voted upon according to the voting pattern available at the table.

The House proceeded to the consideration 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, as reported (with amendment) from the committee.

Business of the House

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

Mr. Speaker, this afternoon, we will continue the debate we began this morning on the Conservative Party's opposition motion.

Tomorrow, we will begin debate at report stage of Bill C-46 on impaired driving.

Next Monday shall be an allotted day. For the remainder of next week, we will resume debate on Bill C-46 and also commence debate at report stage of Bill C-49, transportation modernization.