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. The Library of Parliament often publishes better independent summaries.

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

June 16th, 2017 / 10:20 a.m.
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Liberal

Iqra Khalid Liberal Mississauga—Erin Mills, ON

Mr. Speaker, there were major consultations done on the bill. We consulted with all those impacted. We understand that, as a government, we have a role to play in increasing competition, but also ensuring that our consumers are protected. The bill does just that with respect to transportation. It provides for more reliable transportation, more protection of consumers, and for more accountability of airlines to consumers, while also ensuring that the level of competition is still there.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:20 a.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I am pleased to rise and add my remarks to the debate on Bill C-49.

Before I begin, I would like to take a second to acknowledge a very poignant moment today in the House. I was here when the Clerk, Marc Bosc, arrived for his last shift here in the House of Commons as Acting Clerk of the House, as we have heard from a number of sources.

Mr. Bosc was the person who welcomed the members who had been newly elected in 2015 to the House. It was a very emotional time for us. To us, Mr. Bosc is the Clerk of the House, because he is the only one we have ever known. Mr. Bosc has always been there for us and has always shown the utmost professionalism. He was respected by all, at least by everyone on this side of the House. Mr. Bosc has always served with enormous professionalism, and we have always respected him.

For me, Mr. Speaker, it was a very poignant moment to see him enter the chamber this morning and take his place before us, to begin his final sitting day in the House of Commons. I trust that Mr. Bosc will always hold a place of honour here in Parliament.

In closing, we found out about this rather suddenly. I would have liked the opposition parties to be consulted more on the process to replace the Clerk. No offence to the incoming Clerk, but I just wanted to take a few moments on behalf of my colleagues, myself, and my family, who shared in all the emotion that we experience when we first arrive here, to acknowledge Mr. Bosc's excellent work.

Mr. Bosc has been here much longer than I have, but like me, he has seen his share of governments and their different approaches to ensuring that their bills get passed.

Bill C-49 is another example of the government using closure to prevent giving the opposition opportunities to speak to this bill or criticize it. By the minister's own admission, this bill is quite complex, and it will make significant changes to Canada's transportation industry. Even so, we will have just a few of hours of debate to discuss it and raise what I think are some very important points.

Why is this especially troubling in the case of Bill C-49? It is because this bill does not amend just one or two sections or one or two acts. It amends 13 pieces of legislation.

For the past two days, I have been listening to the arguments given by the Minister of Transport who says that the opposition is overreacting, since 80% of the changes proposed in Bill C-49 will amend just one law, and therefore the opposition has no reason to protest so loudly. What? How is that an argument? It is as though one section of an act were more important than another. If the 20% of Bill C-49's clauses that amend 12 other laws are not all that important, why bother including them? Why are we talking about them? If they are not that important, if everything is focused on just one law and the opposition is outraged, why keep the other 20% of the amendments? Why not remove them and create another bill with those amendments and consider it separately? It does not matter, because everything is in the same bill.

Clearly, this argument simply does not hold water. It is particularly troubling. As members know, I have been a member of the Standing Committee on Transport, Infrastructure and Communities since I arrived in this place. Obviously, transportation affects all Canadians in every field. Transportation has an impact on the daily lives of all Canadians, whether we are talking about the transportation of goods or people.

They say this is a complex bill, that they will not give the opposition much time to talk, and that, since 80% of it is specific to one act, there is no need for us to protest so loudly. I think the minister should go back to the drawing board, take another look at what is in his bill, and think carefully about the repercussions that each amendment in Bill C-49 will have on the day-to-day lives of all Canadians.

Here is the lowdown on Bill C-49. The Liberals' omnibus transportation bill will establish a new air passenger rights regime; liberalize international ownership restrictions for Canadian air carriers; enable the Minister of Transport to consider and approve joint ventures by two or more airlines; update the Canadian freight system; require railways to install audio-video recorders in locomotives; expand the Governor in Council's powers to require major railway companies to provide rate, service, and performance data; and amend the Canada Marine Act to allow port authorities to access Canada infrastructure bank loans.

However, there is nothing there. According to the Minister of Transport, a few hours of discussion are enough to address all of these issues, since he did not think that the opposition had anything relevant to say during the first hours of this debate. Why would the government want to continue listening to opposition members provide supposedly irrelevant information when it can simply expedite the process by muzzling them? At least, that is what the minister seems to think.

Since when are opinions that differ from the government's irrelevant? The big problem with the Liberals is that, when we do not agree with them, on this or any other issue, they feel threatened and under attack. They think that anyone who does not share their opinion and does not think like they do is irrelevant, and so they have no reason to take any interest in what those people have to say in the House. That explains a lot.

It explains a lot, such as Motion No. 6 and the many time allocation motions that have been imposed on us since the beginning of this session. It explains the infamous discussion document that the Leader of the Government in the House of Commons tabled to supposedly improve the way the House operates. When we read that document carefully, we learned that the Liberals' intention was once again to avoid hearing what the opposition parties had to say.

It is not complicated. When things do not sit well with the government, it decides to muzzle dissenting voices that cast grey clouds over Liberal sunny ways. Well, I have news for the Liberal government. The official opposition and all the other opposition parties, I am sure, have no intention of staying quiet. We have no intention of letting changes slip through. We have no intention of completely agreeing with everything the Liberals put in front of us. We have no intention of being the people who enable the Liberal Party to push through their entire election platform. That is not our role here. Our role is to present criticisms.

As an aside, let us talk about the Liberal platform. It did not take long for the Liberals to realize that much of what they wanted to do is simply impossible. They promised big spending and small deficits. They kept only one of those promises. They are spending big, but they have come to realize that that requires huge deficits. That is something the government does not want the opposition to criticize. They would like us to keep quiet and just watch them and applaud them because they really like applause. That is not what we are going to do. That is not our role.

Let us come back to Bill C-49 because it seems like we are off topic, that we just keep providing an overview, and that we keep talking about everything but Bill C-49. Let us talk about Bill C-49 and what it amends. As I was saying, it significantly amends 13 different laws and has repercussions on three modes of transportation. This legislative measure will weaken legislative protections for shippers and western Canadian farmers.

We want to concentrate on proactive measures to make travel less expensive and more convenient for all travellers. This would include abolishing the carbon tax, instead of the Liberals’ plan to establish reactive compensation that will benefit only a small segment of the population.

This bill provides very little detail about the proposed air passengers’ bill of rights, and it does not have the support, in its current form, of many passengers’ rights advocates. Also, port authorities and their wholly owned subsidiaries will have access to loans and loan guarantees from the Canada infrastructure bank. There is an inconsistency here. That does not make any sense to me, since this bank does not exist yet. It remains a proposal for now, and it is held up in another house, for very good reasons.

Like us, the senators think that the infrastructure bank warrants its own bill, given the impact it will have and the $15 billion that the government intends to provide to it. That is $15 billion from Canadian taxpayers to be given to a board of directions to manage on our behalf without any accountability to Parliament.

These points alone justify our opposition to the passage of Bill C-44, which is currently being studied on the other side in its current form and includes all these budget measures as well as creating the infrastructure bank. I hope that people will get the message.

In Bill C-49, they already assume the outcome. Port authorities are being given approval to access loans from the non-existent infrastructure bank. What I do not understand is that the government, ever since it began telling us about the infrastructure bank, keeps saying that it will be an independent bank. As an aside, the process to find the president for this non-existent bank has already started.

Therefore, the infrastructure bank, which does not exist, will be made up of a so-called independent board of directors who will manage the money given to them by the Liberal government. At the same time, these supposedly independents will be told that they have to invest $1.3 billion in Montreal’s Réseau électrique métropolitain and provide loans to port authorities. To sum up, here is an independent infrastructure bank that will not be independent and does not yet exist. However, we are being asked to approve a clause of the bill that will allow port authorities to secure loans from this infrastructure bank that will be created in the near future.

It is clear that something is not working, that they are improvising, and that the minister wants to move quickly. We do not understand why he insists on moving so quickly. Some will tell us that it is because they want to settle the matter of Bill C-30 before it expires on July 31 in order to protect western grain producers in their rate negotiations with the railways. That could be the case, but that is not what is going to happen, since even if Bill C-49 is rushed through today or Monday and is referred to committee, the committee meetings are scheduled for September.

The committee was prepared to meet in July if the government agreed to hive off all the measures concerning Bill C-30. That would have allowed us to study them quickly in order to avoid having a legal vacuum for western grain producers. These meetings could have been held before August 1. The committee was prepared to meet in the middle of summer, during vacation—at least, the opposition members of the committee were. That would have been a major sacrifice for some of us to show up and study a bill to help western grain producers.

Why was the official opposition prepared to do that? Because we get that this is important. Right now, grain producers are concerned about what is going to happen this fall if there is a legal vacuum. We do not know exactly how the market will react. These people are negotiating right now.

We see another problem here. I myself am not a grain producer. However, several of my House of Commons colleagues represent western Canadian ridings, and they know a lot about grain production. From what I understand, grain producers usually harvest their crops in the fall. What time of year is busiest for grain producers? The fall, when they are bringing in the harvest.

The government is going to ask grain producers to testify on Bill C-49, which will have a major impact on their future, in the fall. The government is going to ask them to leave their machinery and their fields so they can come testify in Ottawa in September. That is when they should be in their fields doing their work, doing what we support them doing, and making their contribution to Canada's economy by producing and working. This makes no sense.

That is why the opposition was prepared to agree to move quickly on that part of the bill. We were prepared to let many things slide in order to move quickly. Why? Canada's grain producers are far more important to us than adding another number to our legislative record. The farmers need us to come to Ottawa to protect them, stand up for them, and help them succeed. That is our role.

If we are not taking extraordinary measures to get Bill C-30 passed before the deadline, then there is no urgency to justify speeding up the process and muzzling the opposition. The government probably does not want to let the opposition speak because it does not want to hear arguments like mine in defence of western grain producers.

I want to talk about another initiative that was very well received by the public, I admit. This was the main point in the message from the Minister of Transport. Indeed, he wants to create an air passengers' bill of rights. This is urgent. Like all of us, all Canadians who have flown over the past few months have seen the coverage of some of the dramatic incidents that have taken place in the U.S. Since the bill announced the creation of an air passengers' bill of rights, we thought we would get some information. We thought we might be told what to expect, but no, all the minister did was mandate the Canadian Transportation Agency to begin consultations that will eventually lead to regulations and, at some point, the air passengers' bill of rights.

Do we really need a bill to ask the Canadian Transportation Agency to begin consultations on a bill of rights? It makes no sense. There is no need for urgency when it comes to Bill C-49, apart from the legislation protecting western Canadian grain farmers; on that, we agree.

We believe that the only way to go and the only explanation or justification to make this measure acceptable, to make this gag order acceptable, would have been to split the bill and immediately pass the measures in Bill C-30, in order to make certain temporary measures permanent. We were ready to go ahead with that, but everything else could have waited; there is no need to panic. The only emergency here for this government is to silence the opposition. The government is not ready. It is improvising and presenting measures that just do not make sense.

For all these reasons, and despite a few good measures in the bill, the official opposition cannot support Bill C-49.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:40 a.m.
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Liberal

Leona Alleslev Liberal Aurora—Oak Ridges—Richmond Hill, ON

Mr. Speaker, why has my hon. colleague spent over half of his time talking about things that had very little to do with the bill? Most of the conversation was about us not providing enough time to talk about it.

I would like to understand why quantity and quality are not necessarily equated. One could be succinct and point out critical points that may not be strengths of a bill in a significantly shorter time. When we look at time for debate, the debate should be around the substance, the precise criticisms, the highlighting of the oversights or the challenges within a bill. That is the point of being in the House: to highlight the specifics that perhaps the opposition does not feel are the strengths of a motion or a bill.

Could the member opposite provide three significant focused and specific challenges with the bill that he feels must be changed?

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:40 a.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I would ask my hon. colleague, who said that I spent over half of my time talking about things that had nothing to do with Bill C-49, to withdraw her remarks.

I will check, but I am sure that I spent 100% of my time talking about the impact of Bill C-49. The fact that we are debating this bill when they are imposing time allocation is a fact that has to do with Bill C-49. Perhaps she misunderstood my intention.

One clause alone has major repercussions for western grain farmers—the one that extends them protection and makes it permanent. What, then, gives my colleague the right to say that my remarks are irrelevant? I would like her to explain herself to western grain farmers and answer that question.

Why does she not consider these measures to be important for western grain farmers?

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:40 a.m.
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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Mr. Speaker, I thank my colleague for his speech.

I wish to raise two points that he talked about in his speech. It seems to me that the theme both these points have in common is the arrogance of this government. The fact that there will be a period of time between when the old rules expire and when the rules proposed in Bill C-49 are brought in is a real problem for western grain farmers. This does not seem to be a problem for the Liberals; they look after their own when they should be fulfilling their duty to work on solving the problems of western grain growers.

The member also mentioned the fact that in the bill, an integral part of the transportation strategy is the infrastructure bank, a contentious subject here in the House of Commons as well as in the other place. The bill may not pass in time. When the Liberals stated that something Parliament has yet to vote on will be a part of their transportation strategy, their arrogance was on full display yet again.

Have I forgotten other aspects of the member’s speech touching on this theme of arrogance?

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:45 a.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I thank my colleague for his question, which is very relevant and gives me an opportunity to talk about another equally important topic, the relevance of the opposition.

My colleague also read the bill and saw the impact that Bill C-49 will have on all of the areas he just talked about. In response to the statement about how we are only concerned with a few issues, I would say that only a few members will have the opportunity to speak. If the government would let us all talk, we could hear people's opinions on every aspect of Bill C-49. Since the government is muzzling us and denying us the right to speak, we have to focus on the essentials. We have to focus on what affects us directly and what will have the greatest impact on Canadians. If the Liberals would give us more time, we would address Bill C-49 in its entirety, from beginning to end.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:45 a.m.
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Liberal

Fayçal El-Khoury Liberal Laval—Les Îles, QC

Mr. Speaker, I thank my colleague for his speech.

I was shocked to hear him say in his speech that the members on his side of the House were going to reject all of the Liberals' proposals. Is that how he plans to help Canada and Canadians, by rejecting everything the government is proposing to improve the lives of Canadians and make our country more prosperous?

I am asking my colleague whether he will withdraw that statement and correct himself?

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:45 a.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I would be pleased to withdraw those words if I had said them, but I did not. Therefore I will not withdraw them.

I thought them, though, but I restrained myself because sometimes the Liberals do in fact include some good measures in their bills. There are some, in Bill C-49, that we could support, particularly with respect to western grain producers. We are prepared to support them, and we wish to do so.

If the government did the right thing, which is to split the bill, it would have the opposition’s support to pass the positive measures introduced by the Liberals. There are not that many. That is why I did not say it. I thought it, though.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:45 a.m.
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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I am going to explore the questions from the member for Aurora—Oak Ridges—Richmond Hill. She was quite indignant when asking my colleague to give three reasons on Bill C-49. The irony is that the Liberals are limiting debate on all of these subjects.

We have a government that has only passed 19 bills in its time in office, and now the Liberals are using time allocation on virtually every piece of legislation, limiting debate, yet they are not giving any reason for that. This is a bill that addresses rail, marine, and air safety, and the Liberals are limiting debate on it. Then when we ask questions or give speeches here in the House, they suggest that it is not sufficient debate.

I would ask my colleague what he thinks about the Liberal government not permitting debate or even the questioning of their decisions in our nation's interests. It is quite concerning, and I would like my colleague's comments on that.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:50 a.m.
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Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I find that, in telling us that, my colleague makes an absolutely extraordinary point. I am a fairly new member, and I do not have my colleague’s experience. By the way, he ran an excellent leadership campaign, and I wanted to point that out. He learned a lot because he travelled across Canada and saw the effects of Liberal proposals. He very much appreciates why the opposition needs time here, in the House, to ask questions and point out the flaws. They may not like it, but it is simply because our role is to find what does not work and to propose better legislation.

What we want is to improve the lives of Canadians. It is not just to introduce bills quickly, with a lot of flash and photos, and then go through Parliament and arrange things to avoid uncomfortable moments when decisions are questioned, and finally take another photo when the bill is passed. We want to do real work for Canadians.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 10:50 a.m.
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Conservative

Larry Maguire Conservative Brandon—Souris, MB

Mr. Speaker, it is my privilege to rise today to speak to Bill C-49, the so-called transportation modernization act.

Before I go any further, I would like to say that I will be sharing my time with the member for Saskatoon—University. I look forward to his presentation on this as well. He comes from a neighbouring province to the west, and he also has a great knowledge of what is required in this field.

It is a privilege to put on the record again, as I had the opportunity to do with our opposition day motion on Monday this week, how important the movement of grain is to western Canadian farmers, as my colleague just said. However, it is not just important to the farmers but to the whole industry and economy of western Canada, which affects us all. We are one of the largest exporters of grain in the world with regard to the percentage that we grow.

I think the changes that have come forward in the bill would be somewhat detrimental, although there are a few that will work very well on the grain side.

Bill C-30 was brought in by my colleagues when we were in government due to the conditions that took place in the Prairies in the winter-fall of 2013 and the spring of 2014. I will never forget that because that is when I was elected as a member. Having farmed in western Canada all my life prior to getting into politics, I certainly know the importance of making sure that we have a reliable system of moving grain and exporting it, not just for the farm community but for the logistics of the rail companies and the port authorities and facilities on the west coast, east coast, and in Thunder Bay. At that time, there was also some grain movement through the Port of Churchill.

Before I get into too much of that, I would like to say that what we need to do in the Prairies with regard to the evolution of the transportation system, as we move forward, is to make sure that we look at processing more of these grains on the Prairies than we have in the past. I was in the room with the minister from Regina—Wascana, which I believe was his constituency at the time, in 1995, when the Crow benefit changed and was taken away. I lobbied to make sure that happened. I did that because my farm was located halfway between Vancouver and Montreal at the time, and we would have been faced with the highest freight rates on the Prairies, right in my kitchen.

We did that so that our future family members, our children, in western Canada would have a job locally by processing more of that grain. That is one of the key reasons for a lot of the lobbying that went on in those days to make changes not just to the rail system but to the way grain was marketed. My colleagues in the House have also brought forward the opportunity to allow farmers to sell their own grain and do their own marketing, which is key to the future development of more processing plants and those types of facilities in the Prairies.

The processing of grain is an example of how important this can be. We have rail lines that begin in Winnipeg and pretty well run parallel out to Portage la Prairie, and then branch off to Calgary and Edmonton through the west. That is why the interswitching that my colleague has brought in, and extending it from 30 kilometres to 160 kilometres, was a great advantage for farmers and competitive rates in the Prairies. It did not only work for them but also for the grain companies. It gave them the ability to have a bit more competition.

The types of things that we gained from the 160-kilometre range of interswitching would be taken away in this new bill, Bill C-49, which I think is a detriment to the longevity of the competitiveness we could have. One example is that we can only do it at a point where that interswitching is available. If one's grain is in northern Alberta or the Peace River areas of northern B.C., the first point of interswitching is Kamloops.

Of course, then one cannot really have much competition for all of that grain in northern Alberta and the Peace River area, if one cannot get access to a competitive rate until it gets to Kamloops. I worked there in the early seventies. I know the city well. It is a great place. I know my colleague from Kamloops agrees with me. This would not allow the type of rate competitiveness that we could have seen in the Prairies.

Bill C-30 also mandated the rail companies to carry half a million tonnes each of grain per week to catch up on some of the backlog that was there at that time. This bill just allows them to continue to talk. It does not mandate a level of grain shipments. That was for a period of time until that backlog got taken care of, which happened later on that summer. We hope we do not see those kinds of conditions, but we do have cold weather on a regular basis in western Canada in wintertime and there was a lot more at stake than just the cold weather in forcing that grain back on to the Prairie farms at that time.

There may be some opportunities here. We cannot haul all of the grain in the Prairies by truck. It has to get onto a rail system at some point. Now that there are more opportunities for farmers to move their own grain, I have young farmers coming to me every day talking about the movement of their grain north-south by truck. Some of that is entering into the United States.

We also purchase a lot of grain in feed form, and that sort of thing, from the U.S., and we need to look at continuing to expand our processing. We need to make sure we continue to have that mechanism to move the grain and also to import from the United States.

We also need to make sure that we are continuing to process even more of the product we have on the Prairies. That is being done in many places in Saskatchewan and Alberta. Some of it is being done with the expansion of our livestock industries, because they consume an awful lot of feed grains in western Canada, which then gets moved in another form. Most of it ends up being slaughtered in some of the largest processing plants in the world in Alberta, in Brooks and High River. We know there is an opportunity there to continue to move that product.

It is being done in Manitoba with the largest pea processing plant in the world, coming to Portage la Prairie. It is a $400-million investment by a French company. The Manitoba government is putting very little infrastructure money into this, other than connecting the hydro lines and natural gas.

These are the kinds of investments we need. I know Bill C-49 will not be as good as Bill C-30 was, as far as that goes. It also speaks to other areas though, such as the air industry and marine industry as well. We need to make sure that while there are changes taking place, they are not detrimental to the future of those industries as well, because we do rely quite heavily on our export ports, particularly on the marine side, to be able to export and move this grain.

Bill C-49 eliminates some of the things that were good parts of Bill C-30, particularly in regard to ordering the railways to compensate any person for expenses caused by the railway's failure to fulfill service obligations.

I will end there and see if anyone has questions before my colleague, the member for Saskatoon—University, takes over.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 11 a.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

The hon. member for Brandon—Souris will have a period of five minutes for questions and comments pertaining to his remarks when the House next resumes debate on the question.

The House resumed consideration of the motion that Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts, be read the second time and referred to a committee.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 12:20 p.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

When the House last took up the question, the hon. member for Brandon—Souris had a period of five minutes for questions and comments. He had just finished his speech prior to the beginning of members' statements, so we have five minutes for questions and comments and we will go to that now.

Questions and comments, the hon. parliamentary secretary to the government House leader.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 12:20 p.m.
See context

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, we are very happy with the Brandon airport and the expansion that has been taking place. I know that my colleague across the way would be very familiar with that. Maybe I will use that as a link to how important it is that we have air passenger rights. This is legislation that will ultimately lead to rights for air passengers. Would the member agree that we need to do what we can as legislators to ensure that there is a higher sense of fairness and that passenger rights are overdue?