Mr. Speaker, it has been a few years since I was last on the transportation committee, I think four or five, if my memory serves me correctly, but I enjoy speaking about these issues. One reason I enjoy talking about them is that in a country as vast as Canada, transportation really matters. Every country has its unique issues, but Canada's would be distinctly different from most countries in the world. Perhaps Australia, the United States, and Russia face some of the same challenges as Canada, but very few other countries in the world would have the exact same problems.
The other thing I find very interesting about the legislation is that it deals with an underlying problem, which is different economically than many issues with which we deal.
Before I discuss that, let me say a few basic words for context about this broad legislation.
Bill C-49, the transportation modernization act, is legislation that we call, for people watching at home, an omnibus bill. Many elements from different areas are put together under one larger theme. We have heard members from various opposition parties point out that not all elements of the bill really fit together. In fact, I suggest the government would have been better off breaking the bill into three, or perhaps even four, pieces of legislation.
A very small element of the bill deals with marine issues. There is a larger element that deals with railway issues, which could have been subdivided into separate legislation to deal with railway safety issues and broader economic railway issues. It also deals with issues related to airlines, consumers, the financing of airlines, foreign ownership rules, and so forth.
In many ways, the government has put together many things that really do not belong in a single piece of legislation, which makes it somewhat difficult to comment on. Some things in the bill are well-intentioned and could possibly be useful and good for the country. Other pieces of the legislation the government should rethink. I will take apart as many elements of the bill in the time allotted to me.
One of the biggest rail transportation issues in Canada is that there is a natural monopoly tendency. That is not caused by the railways through any malice or problem; it is just that there are some very natural realities. To build a railway, a large capital investment is required, making it very difficult for competition. Railways also serve specific geographic areas exclusively. They need to have that natural monopoly. To pay for the underlying capital cost, they need to capture the majority of the market. That, then, leads to a problem of a power imbalance.
If commodities can be shipped by means other than railways, for example, oil can be shipped by pipeline or perhaps trucking is better for other commodities, that is not a problem. However, for certain commodities and situations, rail may not be available. That is where a problem tends to result and get argued about when it comes to rail transportation.
In highly competitive markets where a lot of commodities enter and exit and product substitution is easily done, etc., there is no call for the government to get involved because there are few issues with the market. No monopoly is ever naturally total or pure, but to some degree railways in our country have those sorts of issues.
That has therefore caused a long history of the governments of Canada regulating, subsidizing, and interfering in the rail transportation industry, particularly in the west. If we look at the population centres of eastern Canada, they are much closer to the United States and commodities can be trucked. In that case, there is a considerable amount of competition.
That tends to be the underlying issue the government has to deal with whenever it deals with rail transportation issues.
In a previous Parliament, there had been some issues on grain transporting in the Prairies due to bottlenecks. Some of this was perhaps due to the railways, some of it perhaps due to weather issues, and the large crop in western Canada. The previous government put in some adjustments, which allowed shippers to use the railway system within 160 kilometres. This is a bit of a simplified interpretation. They were allowed to use the existing railways, and have the right, to ship their grain and other commodities to the United States and then connect.
It is this interconnection that is being discussed. It used to be 30 kilometres and was then extended to 160 kilometres. For those in places like Regina who needed to ship their grain and CN, CP could not get it out, they could then get them to ship it to the United States at which point a railway like Burlington Northern would have the option to ship the grain. As has been noted, that is coming to an end.
What the government has suggested is changing the rules to introduce something it is calling long haul interchangeability rights, eliminating this 160 kilometre rule.
This is very similar to what has already been in the legislation before and has not been used. If the government is putting in a new provision but it is almost identical to something that has been in the legislation since the 1990s but has not been used, what is the purpose? What is the government trying to accomplish?
The government will have to deal with this at committee. Why is it eliminating something that has helped eliminate a bottleneck situation and going back to an older system that has not worked well. That is my first criticism and question for the government.
The second thing I want to point out, particularly with the rail issues, is that I do not see anything the government is doing in this to bring down the costs. Service is important, and commodity shippers in western Canada have told me they are willing to pay more if they can get timely and accurate services. That is very good. Ultimately, time is money when shipping products.
I am failing to see where the government is dealing with ways to make the regulatory process quicker and smoother. In fact, most of the legislation seems to add more layers onto it. I understand it goes back to that underlying problem, the natural monopoly and how to dealt with it. We often deal with it through regulation.
There is a second question I would like to put to the government. With the rail situation and the added costs that will soon come through the carbon tax, which will ultimately hurt the producers, the shippers, and other Canadians involved, how will it do things to lower the costs?
Finally, there are elements in the bill which personally interest me and many of my constituents. They are around the creation of a passenger's bill of rights. In many ways, this sounds very good. As someone who flies a lot, and most western Canadian members of Parliament joke that our third office is an airplane, I am very familiar with problems airlines can have.
My question is this. What has been costed and how will this cost be passed on to the customer? Costs for airline flights in Canada are some of the highest in the world. We all have a major concern with that. If our businesses are going to grow, if we are going to have better connection and the ability for places like Saskatoon, where I come from, to move out and do business in the world, we need costs to be dealt with.
Therefore, these are the basic questions. Why is the government taking away something that has worked and replacing it with something that has been tried and seems to be wanting? Where is the government's ability to bring down costs, both for railways and air passengers? Also, how is it going to simplify the regulatory burden?
These are questions the government needs to deal with when the bill goes to committee. The Liberals would have been wiser if they had split the legislation into smaller bills so we could deal with it in more bite-sized pieces.