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 is from 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 has also written a full legislative summary of the bill.

This enactment amends the Canada Transportation Act in respect of air transportation and railway transportation.
With respect to air transportation, it amends the Canada Transportation Act to require the Canadian Transportation Agency to make regulations establishing a new air passenger rights regime and to authorize the Governor in Council to make regulations requiring air carriers and other persons providing services in relation to air transportation to report on different aspects of their performance with respect to passenger experience or quality of service. It amends the definition of Canadian in that Act in order to raise the threshold of voting interests in an air carrier that may be owned and controlled by non-Canadians while retaining its Canadian status, while also establishing specific limits related to such interests. It also amends that Act to create a new process for the review and authorization of arrangements involving two or more transportation undertakings providing air services to take into account considerations respecting competition and broader considerations respecting public interest.
With respect to railway transportation, it amends the Act to, among other things,
(a) provide that the Canadian Transportation Agency will offer information and informal dispute resolution services;
(b) expand the Governor in Council’s powers to make regulations requiring major railway companies to provide to the Minister of Transport and the Agency information relating to rates, service and performance;
(c) repeal provisions of the Act dealing with insolvent railway companies in order to allow the laws of general application respecting bankruptcy and insolvency to apply to those companies;
(d) clarify the factors that must be applied in determining whether railway companies are fulfilling their service obligations;
(e) shorten the period within which a level of service complaint is to be adjudicated by the Agency;
(f) enable shippers to obtain terms in their contracts dealing with amounts to be paid in relation to a failure to comply with conditions related to railway companies’ service obligations;
(g) require the Agency to set the interswitching rate annually;
(h) create a new remedy for shippers who have access to the lines of only one railway company at the point of origin or destination of the movement of traffic in circumstances where interswitching is not available;
(i) change the process for the transfer and discontinuance of railway lines to, among other things, require railway companies to make certain information available to the Minister and the public and establish a remedy for non-compliance with the process;
(j) change provisions respecting the maximum revenue entitlement for the movement of Western grain and require certain railway companies to provide to the Minister and the public information respecting the movement of grain; and
(k) change provisions respecting the final offer arbitration process by, among other things, increasing the maximum amount for the summary process to $2 million and by making a decision of an arbitrator applicable for a period requested by the shipper of up to two years.
It amends the CN Commercialization Act to increase the maximum proportion of voting shares of the Canadian National Railway Company that can be held by any one person to 25%.
It amends the Railway Safety Act to prohibit a railway company from operating railway equipment and a local railway company from operating railway equipment on a railway unless the equipment is fitted with the prescribed recording instruments and the company, in the prescribed manner and circumstances, records the prescribed information using those instruments, collects the information that it records and preserves the information that it collects. This enactment also specifies the circumstances in which the prescribed information that is recorded can be used and communicated by companies, the Minister of Transport and railway safety inspectors.
It amends the Canadian Transportation Accident Investigation and Safety Board Act to allow the use or communication of an on-board recording, as defined in subsection 28(1) of that Act, if that use or communication is expressly authorized under the Aeronautics Act, the National Energy Board Act, the Railway Safety Act or the Canada Shipping Act, 2001.
It amends the Canadian Air Transport Security Authority Act to authorize the Canadian Air Transport Security Authority to enter into agreements for the delivery of screening services on a cost-recovery basis.
It amends the Coasting Trade Act to enable repositioning of empty containers by ships registered in any register. These amendments are conditional on Bill C-30, introduced in the 1st session of the 42nd Parliament and entitled the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act, receiving royal assent and sections 91 to 94 of that Act coming into force.
It amends the Canada Marine Act to permit port authorities and their wholly-owned subsidiaries to receive loans and loan guarantees from the Canada Infrastructure Bank. These amendments are conditional on Bill C-44, introduced in the 1st session of the 42nd Parliament and entitled the Budget Implementation Act, 2017, No. 1, receiving royal assent.
Finally, it makes related and consequential amendments to the Bankruptcy and Insolvency Act, the Competition Act, the Companies’ Creditors Arrangement Act, the Air Canada Public Participation Act, the Budget Implementation Act, 2009 and the Fair Rail for Grain Farmers Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-49s:

C-49 (2023) Law An Act to amend the Canada—Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts
C-49 (2014) Price Transparency Act
C-49 (2012) Canadian Museum of History Act
C-49 (2010) Preventing Human Smugglers from Abusing Canada's Immigration System Act
C-49 (2009) Law Appropriation Act No. 3, 2009-2010
C-49 (2008) Law Appropriation Act No. 1, 2008-2009

Votes

May 22, 2018 Passed Motion respecting Senate amendments to Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
May 3, 2018 Passed Motion respecting Senate amendments to Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
May 3, 2018 Failed Motion respecting Senate amendments to Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts (amendment)
Nov. 1, 2017 Passed 3rd reading and adoption of Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
Oct. 30, 2017 Passed Concurrence at report stage of Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
Oct. 30, 2017 Failed Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts (report stage amendment)
Oct. 30, 2017 Failed Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts (report stage amendment)
Oct. 30, 2017 Passed Time allocation for Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
June 19, 2017 Passed 2nd reading of Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts
June 15, 2017 Passed Time allocation for Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:25 p.m.

Liberal

Darrell Samson Liberal Sackville—Preston—Chezzetcook, NS

Mr. Speaker, right now many of these small airports are not being used and are not very efficient. Air Canada just changed some flights from here to Halifax and passengers will have to stay overnight because there are no available flights before the next morning.

We need to find ways to make these small airports viable, and the only way to do that is by creating funding through foreign investment or joint ventures. That would create more prosperity and investment and make things better in small rural communities.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:30 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I also have a really important airport in my riding, the Victoria International Airport. It is a superbly run airport. It is smaller than the Halifax Stanfield International Airport.

I discovered that the airport authority handles some things and Transport Canada regulates, but in-between there is this entity called Nav Canada. I was distressed to discover that it has been several years since Nav Canada removed air traffic controller supervisors. Nav Canada does not have a single air traffic control inspector who has ever worked in civilian air traffic control, and there are significant issues of concern to air traffic controllers in my riding.

Has the hon. member heard any similar concerns from air traffic controllers in the Halifax area?

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:30 p.m.

Liberal

Darrell Samson Liberal Sackville—Preston—Chezzetcook, NS

Mr. Speaker, I did not hear of any specifics in my region concerning air traffic controllers, but I have heard them before. It is an issue that we need to keep in mind as we move forward with this legislation.

As I said, this is a first step and there are other steps to follow. We will be able to capture some of those issues as we move forward.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:30 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, today I rise to speak at the report stage of Bill C-49. This bill covers a range of amendments on the transportation sectors.

During my campaign, I heard loud and clear from many of my constituents that people were tired of omnibus bills from the previous government. There was an increased desire for accountability and transparency, yet here we are again discussing an omnibus bill that is moving through this House, with amendments to 13 acts, without giving parliamentarians adequate time for debate.

Because of the broad range of topics in this bill, I will keep my comments to air transportation, CATSA, and will quickly touch on marine transportation.

As many do in this House, I fly often. Over the last several months, we have seen stories of people being dragged off planes, stalled on the tarmac, and having to call emergency services. Too often, settlements are swept under the rug, and the industry continues with business as usual. I think Canadians are fed up. They are tired of waiting on the tarmac endlessly and are tired of overbooking.

The NDP introduced a bill that clearly set out the steps needed to establish a passenger bill of rights. The transport minister supported our bill and could have followed our example by introducing concrete measures to protect airline passengers. For example, when a flight is cancelled, the airline would have to offer passengers a choice between a full refund and re-routing under comparable conditions. Air carriers that failed to comply with this rule would have to pay $1,000 in compensation to every passenger, in addition to the refund. If an aircraft was held on the ground for more than one hour, the airline would have to provide passengers with adequate food, drinking water, and other refreshments. For each additional hour during which the airline failed to comply with that rule, it would have to pay each passenger $100 in compensation.

We also asked the government to implement protection measures immediately instead of delaying them until 2018. However, the minister chose not to propose concrete measures. Instead, he included provisions in the bill. The government sold it to the media and to Canadians as a passenger bill of rights, but that is simply misleading. The minister is delaying what needs to be done by handing over the responsibility for regulations to the Canadian Transportation Agency. When the CTA enacts inadequate regulations, it will give the minister a way out. That is not the political leadership Canadians expect.

What is disappointing is that the Liberals rejected our amendments without studying them, folding under pressure from the airlines.

The facts are clear that flights subject to the European regulations have a cancellation rate of 0.4%, which is four times lower than flights subject to the current Canadian regulations.

We have seen this government continuously abdicate its responsibility for airports. While the federal government does not manage them directly, it is up to the government to ensure a strategic vision, especially in a country as large as Canada. This vision must include every single size of airport, from Pearson to the local airports in my riding.

The communities of Campbell River, Comox, Port Hardy, and Powell River have expressed serious concerns about this continued pursuit of the for-profit privatization of our airports. These airports are essential elements of the social and economic infrastructure in our region. Representing many medium-sized and rural communities, air transportation provides a vital link that connects families and communities and promotes economic growth.

As a representative of the third largest riding in British Columbia, I have landed and taken off from several airports in my region, going to or returning from Ottawa. This is how I get to community events across the riding when travelling to and from this place.

These communities need these services, and as the government continues this privatization creep, they are connecting with me about their concerns. Campbell River recently shared with me that these privatization plans delay much-needed effective action on other issues, such as the burden of federal rents and fees on airlines and air travellers. These stand in the way of more competitive and economical air transportation in Canada.

There is still worse news in this bill regarding remote and rural airports. I think members can understand why I will not be supporting this bill as it stands. Bill C-49 would amend the Canadian Air Transport Security Authority Act. Instead of supporting the growth of regional airports, the government would use Bill C-49 to pass the buck for security screening to regional airports or the municipalities that own them. This policy would hurt rural economies, as the cost of security screening is so high that almost no small airport would be competitive if it had to pay the bill. The government is clearly stepping back from funding and developing regional airports.

Currently, the commissioner of competition has the power to determine whether a joint venture arrangement between airlines is anti-competitive and can subsequently apply to the Competition Tribunal to prohibit the joint venture. However, Bill C-49 would strip this power from the commissioner of competition. If Bill C-49 is adopted, the Minister of Transport would have the final word on proposed joint ventures between airlines. Once an arrangement was approved, the Competition Tribunal would no longer be able to prohibit it.

If Air Canada proposed an arrangement to merge its operations with those of an American company, even if the commissioner found that the agreement would lessen competition among airlines and increase ticket prices for passengers, the minister could approve the arrangement if the minister was satisfied that it was within the public interest. This is why the NDP proposed deleting clause 14 of Bill C-49, as it would expose consumers to unfair increases in airline ticket prices.

A decision by the minister to ignore the commissioner's advice could be influenced by political considerations to favour an airline at the expense of consumers. In addition, the bill does not spell out what is meant by the “public interest” as a basis for a decision by the minister to approve a merger of two airline operations. The concept of public interest is so broad that the minister could consider factors that are not in the interest of Canadians but rather in the interest of the shareholders of major airlines.

Bill C-49 would impact two elements in the marine industry. First, the bill would allow foreign-registered vessels to compete unfairly with Canadian shipowners. We are requesting that Canadian-registered vessels continue to have preferential access to government contracts, carriage of goods by container, and repositioning of empty containers. In addition, the government did not consult with stakeholders who would be affected by this measure.

Second, the Canada infrastructure bank would be permitted to provide loans to port authorities. Instead of assuming responsibility for directly funding the development of port facilities, the federal government would transfer that responsibility to private investors. Investors would charge high rates of interest on their loans, and once again, the consumer would foot the bill. The cost of the required return on investment could affect consumers, since many goods transit through ports.

If private investors such as Morgan Stanley acquire port facilities, Canadians would lose control of their port infrastructure. In fact, the government has asked Morgan Stanley to study a port privatization scenario, even though a subsidiary of Morgan Stanley is earning millions by buying and reselling parts of Canadian ports.

The concerns I have raised today were also brought up by our transport critic in committee and in the House. The bill is simply not good for Canadians, and for that reason, I cannot support it.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:35 p.m.

Winnipeg North Manitoba

Liberal

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

Mr. Speaker, I appreciate many of the member's comments. I think it is worth noting that we have a substantial piece of legislation. A great deal of effort over the last couple of years has gone into it, and it went to committee. As many members know, in committee there were a series of amendments, the majority of them opposition amendments, to improve the legislation. I think that speaks volumes in terms of the willingness to try to improve the legislation.

The member, as I did, sat in opposition when Stephen Harper was the prime minister, when we didn't have any opposition amendments. However, we had six opposition amendments pass. I can see that my Conservative friends do not necessarily like that, but it is true.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

That is not true.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

I would challenge the member across the way to demonstrate a piece of legislation that Harper ever passed when there were six opposition amendments while he was in a majority government situation.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

An hon. member

I was on the industry committee, and we passed tons of amendments.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

I invite the member to share with the House—

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

The Deputy Speaker Bruce Stanton

Order. We have some other debate going on here that is not necessarily directed to the Chair. I encourage hon. members to listen while other members have been recognized and are arguing their points here in the House. They will have an opportunity to respond perhaps in another segment of questions and comments.

The hon. member for North Island—Powell River.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, that was an interesting discussion on the floor. I am not sure what the question actually was.

I am happy to point out the fact that there were many amendments added in this conversation at committee, and many of those amendments were absolutely ignored. Where we have to look specifically is at the passengers' bill of rights.

What we wanted to see in this legislation was something concrete that would set a direction, and we did not see that. Again, this is wishy-washy legislation that does not really give direction. It certainly does not assure Canadians that their rights are going to be honoured and that we are going to move forward in this country and actually have a bill of rights for passengers. Sadly, we do not see that.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, my question has to do with the price of an airline ticket. I am a little concerned when I see some of the provisions in the bill that would allow the airport authorities to basically buy screening services. I worry. In my riding, for example, there is only Air Canada. It is a monopoly situation. The price of a ticket there is nearly $1,000 to get to Ottawa, compared to being able to go to Florida for $200, if I wanted to.

Is the member concerned about the increase in airline ticket prices?

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, I think we have to be very concerned about what we are seeing, which is the downloading of services and increasing privatization, which will specifically hinder regional, small airports across this country.

I think of my riding of North Island—Powell River. Many people come to the beautiful region for tourism. It is a huge part of our economy. We love to see people visit and appreciate the beauty of the surroundings. However, if our regional airports cannot be competitive, that is going to create a huge barrier to economic development.

Again, we have to make sure that we see a slowing down of the government's fast-tracking towards privatization. We have to make sure that we look at being competitive and make sure that those airports are successful so that our communities can be successful.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:40 p.m.

Liberal

Angelo Iacono Liberal Alfred-Pellan, QC

Mr. Speaker, I am pleased to have the opportunity to speak today about rail safety in the context of Bill C-49, the transportation modernization act, which proposes to amend the Railway Safety Act. This is an important step in strengthening Canada’s comprehensive approach to rail safety.

I would like to take this opportunity to acknowledge the dedication that the Standing Committee on Transport, Infrastructure and Communities has demonstrated in its thorough analysis of the components of Bill C-49. Improving transportation safety and, in particular, enhancing the safety of the rail transportation system, is a priority for this government.

To this end, the government is proposing to amend the Railway Safety Act to mandate voice and video recorders in the locomotive cabs of federally regulated freight and passenger railways in Canada.

The approach proposed in Bill C-49 builds on the 2016 report from the Transportation Safety Board of Canada which confirmed that data from combined voice-and-video recording systems would help investigators understand the sequence of events leading to an accident and in identifying operational human factor issues, including those that may have been a factor in the accident.

The Transportation Safety Board of Canada also stated in its safety study that, when used proactively as part of a safety management system, the information from voice and video recorders can provide significant benefits to help identify and mitigate risks before accidents occur.

The proposed changes to the Railway Safety Act reflect careful consideration of the best way to maximize safety benefits while safeguarding the privacy rights of railway employees.

In essence, the amendments would require companies to install and maintain voice and video recorders in locomotives but would also establish specific limits on how the recordings can be used.

The result of the proposed legislative requirements would be, first, objective data that would allow Transport Canada, companies, and safety investigators to better understand events leading up to, and during, an accident or incident.

Secondly, the information could also be used in a proactive way, but within very clear limits, to identify safety risks before accidents occur. For example, data would allow Transport Canada to perform trend analysis to inform future safety rules and regulations. Companies could use the data to develop new or improved training programs, to strengthen existing operating procedures, or to establish new ones to address identified safety gaps.

This government understands that the proposed amendments have privacy implications, in particular for operating crews. These implications have been recognized throughout the study of this bill.

I can assure the House that safeguarding the privacy rights of railway employees has been a key consideration in the development of the proposed amendments. This is why Bill C-49 imposes strict and clear limits on the use of the information from video and voice recorders, as well as strict and clear provisions on how information must be handled, all to safeguard the privacy rights of employees.

For instance, any recording used for safety management must be selected through random sampling. Regulations that would follow royal assent will outline objective parameters for random sampling. They will also outline requirements for data protection that companies would be required to comply with, such as standards for encryption, data storage, and retention periods. Companies would also be required to develop and implement policies and procedures to respond to record-keeping requirements and managing access to the information, in particular how they will safeguard against unauthorized access.

During the committee’s study of the bill, one other issue we heard about is the issue of discipline. We heard from parliamentarians and some stakeholders concerns that data from locomotive voice and video recorders might be used for disciplinary purposes. I can assure this House that the fundamental purpose behind the proposed regime is safety. It is not about, nor does it allow for, the monitoring of day-to-day performance of employees. In this context, it is not meant to facilitate disciplinary measures.

However, it is possible that, in certain egregious circumstances shown by the recordings, disciplinary measures might be the most appropriate means to address a serious safety concern. The regulations will define what is meant by egregious circumstances so that this is not left to the discretion of railway companies.

Consultations with stakeholders, including individuals, companies, unions and other interested parties will be an integral part of building the regulations to ensure we get this right. The proposed regime clearly provides that no company shall use or communicate the information that is recorded, collected and preserved unless the use and communication is done in accordance with the law.

As is the current practice, Transport Canada would conduct inspections and audits to monitor compliance with legislative and regulatory requirements. In the event of non-compliance, Transport Canada would have the authority to take appropriate enforcement action, including imposing administrative monetary penalties.

I would like to reiterate that mandating on-board recording devices has one purpose and one purpose only: to strengthen the safety of Canada's rail industry for all Canadians, including railway employees. The recordings will help explain what happened after an accident, but, more importantly, they will have the real potential to allow us to identify and address safety concerns in order to prevent accidents from happening.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 3:50 p.m.

Conservative

Kelly Block Conservative Carlton Trail—Eagle Creek, SK

Mr. Speaker, my colleague and I had the opportunity to work on the committee together. The member said that he could assure the House that the information collected through the video and voice recordings would absolutely not be used for disciplinary purposes. Previous to that comment, he said that the details of how the legislation would be monitored would be articulated in regulations. I am not sure how he can assure the House of something that is not written in the bill.

The committee received a letter from the Privacy Commissioner, outlining a number of serious concerns he had with the bill and how the bill might be interpreted. Would the member like to comment on that as well?