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.

Rail Transportation

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Mr. Speaker, almost a year ago, the Liberals refused to listen to the NDP and remove the section on grain transportation from their omnibus transportation bill. As a result, the bill is still being studied in the Senate and our grain producers are still being held hostage by CN and CP. It is time for the Senate to fix the Liberal government's botched job and remove the section on grain transportation from Bill C-49.

Will the government commit to supporting our motion today formally asking the Senate to expedite the passage of these provisions, and help the crisis facing grain farmers out west?

[Marc Garneau, Liberal, Minister of Transport]

Mr. Speaker, we want to get our western farmers' grain to market as quickly as possible, unlike the previous government, which for 10 years did not do a darn thing to move grain and other commodities more efficiently. By the way, they voted against Bill C-49 and I would ask them to speak to their colleagues in the other House to speed up the process with Bill C-49.

In the meantime, the Minister of Agriculture and I have spoken to CN and CP, and told them that they have to do better. They are doing better, but we will watch them very carefully.

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

Mr. Speaker, again, we have proven time and time again that we are strongly committed to Canadian farmers and our agricultural industry. Unlike the band-aid solutions of the past with an expiry date, our government put forward Bill C-49, which would meet the long-term sustainable needs of users for years to come.

To quote the Western Grain Elevator Association, “this bill [Bill C-49] is a significant improvement over the existing legislation and is a positive step forward for the grain industry.

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

Mr. Speaker, our government recognizes the importance of efficient and reliable rail service, especially in moving Canadian grain and other commodities to market. However, after enduring 10 years of band-aid actions on behalf of the other government, we introduced Bill C-49. It will provide a strong, reliable, and efficient freight rail system for the future.

The Minister of Transport and the Minister of Agriculture have been in contact with the railways, urging them to do better. We will closely monitor the situation.

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, if they are working on improving the Asian market, why do we have a 50% increase on chickpeas?

For two of the past four weeks in Manitoba, the one railroad has only met 6% of the railcar orders placed by shippers. That means tens of thousands of tonnes of contracted grain is not moving, which has virtually stalled cash flow for farmers on the Prairies.

Will the Liberal government stop delaying? We warned the Liberals about Bill C-49 last fall. It is too late. Farmers cannot wait. Action is needed. Reinstate our previous Conservative government's effective measures and get grain moving now.

Agriculture and Agri-Food

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

Mr. Speaker, our government has proven time and time again that it is strongly committed to Canadian farmers and to the agriculture industry. Unlike the previous Harper government's band-aid solution with an expiry date, this government put forward a permanent and sustainable solution in Bill C-49 that would meet the long-term needs of farmers.

The Western Grain Elevator Association said, “...this bill is a significant improvement over the existing legislation and is a positive step forward for the grain industry.”

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

Mr. Speaker, we know this is a serious situation. That is why we introduced Bill C-49 to establish a strong, reliable, and efficient grain transportation system for the long-term.

The Minister of Transport and I have contacted CN to indicate how serious it is, and that it needs to move grain faster. I have spoken to grain farmers, and indicated to them that we are fully aware of the seriousness of the situation.

[Marc Garneau, Liberal, Minister of Transport]

Mr. Speaker, unlike the previous government that did nothing for 10 years, we actually brought forward Bill C-49, which, by the way, that side voted against. It was intended to have fair rail legislation for the movement of grain.

I was speaking to CN this morning and in actual fact, the amount of grain transported at this point in time is only 3% behind the average of the past three years. Last week was particularly bad, but the situation is improving.

[Marc Garneau, Liberal, Minister of Transport]

Mr. Speaker, our government recognizes the importance of an efficient and reliable rail system to transport grain for our farmers.

That is why we put Bill C-49 in place, unlike the previous government that did absolutely nothing for 10 years. I have been in touch with CN and CP. I was in touch with CN this morning. The month of February was particularly difficult, but at this point I feel that, looking to the future, the grain situation will certainly improve in the months to come.

[Marc Garneau, Liberal, Minister of Transport]

Mr. Speaker, let me correct the hon. member.

For 10 years, the previous Conservative government did absolutely nothing for the farmers in this country except to put in place a band-aid temporary bill. We put in place Bill C-49 to give our farmers, shippers, and railways a modern freight rail legislation. We certainly hope that the other chamber is going to pass this bill as quickly as possible.

I would encourage my fellow member across the way to encourage his fellow Conservatives to pass the bill as quickly as possible.

[Marc Garneau, Liberal, Minister of Transport]

Mr. Speaker, unlike the former government, which for 10 years did absolutely nothing except introduce a temporary bill, we are here for Canada's grain producers.

We have farmers' interests at heart. That is why we introduced Bill C-49. I hope that the other chamber will pass this bill as soon as possible.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, while the Prime Minister and six of his ministers were traipsing around India, the situation of western grain farmers deteriorated. Because the Liberals decided to play partisan politics instead of taking care of government business, they refused to split Bill C-49. A whole season's crops cannot be delivered by rail for partisan reasons, and the Minister of Agriculture and Agri-Food is doing absolutely nothing.

When will the Prime Minister finally do his job and take action so Canada's grain producers can access the market and sell their crops?

Grain Farmers

[Martin Shields, Conservative, Bow River, AB]

Mr. Speaker, the government has failed Canadian grain farmers with Bill C-49. According to Ag Transportation Coalition, CN and CP supplied only a combined 38% of hopper cars ordered in grain week 29. Week 29 was the worst week to date during the 2017-18 grain year.

This is a crisis for grain farmers. They need to get their product to market and pay last year's bills. Guess who pays the penalty for delayed delivery for shipping the wheat at the port in Vancouver? It is not the port facility, not the shipper, and of course not the railway. It is the farmer who pays the penalty.

We urged the government to split up the omnibus Bill C-49 so we could pass the interswitching provisions quickly and protect the grain farmers, and the Liberals failed to do so. Now Canadian grain farmers are feeling the consequences.

The government needs to act quickly. We have winter in Canada every year and the Liberals need to quit using that as an excuse. It is time to get it done. Let us fix it for the grain farmers.

Air Transportation

[Karen McCrimmon, Liberal, Kanata—Carleton, ON]

Mr. Speaker, Bill C-49 is presently before the Senate Standing Committee on Transport and Communications. The Senate will debate the merits of this proposed legislation, and we look forward to hearing its views on our efforts to establish a world-leading approach to air passenger rights.

The intent has always been to have air passenger rights enshrined in regulations, as is done in the United States and the European Union. Undertaking a regulatory approach would also ensure that Canadians are consulted before and during the regulatory development phase. These passenger rights are for all Canadians, and this approach would ensure that their voice is being heard.

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

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

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

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

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

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

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

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

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

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