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.

Opposition Motion—Canadian Economy

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

They are being thrown under the bus, Mr. Speaker, as my friend from Durham just said, by the Liberals. That is not acceptable. It is callous and inconsiderate. The Liberals are hurting those who need every penny kept in their own pockets, but the pickpockets on the Liberal side just love to pull more revenue from Canadians through additional taxes.

The Liberals are also going after the gas and oil companies by putting in place things like a methane tax, again increasing the cost of doing business and not doing anything to change the story on climate change.

When fuel prices go up and energy costs rise, Canadians still have to buy their gas, their diesel, their electricity, and their home heating fuel. Higher prices do not reduce consumption rates. All they do is generate more dollars for the coffers of the Government of Canada and the provinces, and that is not appropriate. Doing that kills jobs.

There is a jobs crisis in Alberta, Saskatchewan, and British Columbia, provinces that depend on the oil and gas sector, and in western Manitoba and places in Ontario, Newfoundland, and Nova Scotia, with the Hibernia oil fields and offshore drilling. Those jobs are being lost, yet those jobs support communities. When oil workers leave the field, who is going to be in those small businesses up and down Main Street, those pa and ma shops? If they have no one to come in to do business, how will they stay in business? If they are not able to sell their wares, sell their services, that is unacceptable.

Finally, the other issue I want to talk about today, and the House will hear in detail from my colleagues about this, is how the government's Bill C-49, what the Liberals call the modernized transportation act, is the opposite of that. The bill would put shippers and grain farmers across Canada at risk.

For western grain farmers, August 1 is a new crop year. Those farmers will have more difficulty moving their grain when the current shippers service agreements expire August 1. It will be more difficult for them to get the new crop to market. The bill would put all the power back in the hands of the oligarchs at the railways.

I am looking forward to hearing all the arguments brought forward by my colleagues on today's important motion.

Alleged Premature Disclosure of Contents of Bill C-49—Speaker's Ruling

[The Speaker, Geoff Regan]

I am now prepared to rule on the question of privilege raised on May 17, by the hon. member for Carlton Trail—Eagle Creek concerning the alleged premature disclosure of the contents 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.

I would like to thank the hon. member for Carlton Trail—Eagle Creek for having raised this matter, as well as the Parliamentary Secretary to the Leader of the Government in the House of Commons and the hon. member for Elmwood—Transcona for their submissions.

In raising this question of privilege, the member for Carlton Trail—Eagle Creek explained that the media had made public specific details contained in Bill C-49 before it was introduced in the House. By drawing comparisons between what was revealed in several news reports from Monday, May 15 and the contents of the bill which was introduced in the House on Tuesday, May 16, she alleged that the required confidentiality before the unveiling of the legislation in the House was simply not respected and members' privileges were breached as a result.

The member stated her belief that this was not due to a simple accidental leak but, rather, was the result of a systemic advance briefing of the media.

For his part, the Parliamentary Secretary to the Government House Leader contended that at no time had the government prematurely divulged any details of Bill C-49; rather, it had simply held extensive consultations on the review of the Canada Transportation Act, as is the government’s prerogative. He added that the minister and his staff were clearly aware of the need for confidentiality, declining to comment on any specifics of the bill when asked by the media.

The right of the House to first access to legislation is one of our oldest conventions. It does and must, however, coexist with the need of governments to consult widely, with the public and stakeholders alike, on issues and policies in the preparation of legislation. Speaker Parent explained on February 21, 2000, at page 3767 of Debates:

Although the members of the House should always be the first ones to examine legislation after it has been introduced and read the first time, this rule must be balanced against the need for the government to consult both experts and the public when developing its legislative proposals.

When ruling on a similar matter on November 1, 2006, Speaker Milliken concluded that the government had not divulged confidential information on the bill, nor the bill itself, but rather had engaged in consultations prior to finalizing the legislation in question. At the same time, he explained at page 4540 of the House of Commons Debates:

The key procedural point...is that once a bill has been placed on notice, it must remain confidential until introduced in the House.

In acknowledging this important nuance, he made room for both consultation and confidentiality, but also saw the distinction between the two.

In the case before us, the Chair is asked to determine if the level of detail reported upon by various media outlets in advance of the tabling in the House of Bill C-49 constitutes sufficient proof of a leak of the contents of this bill, and thus constitutes a prima facie breach of the member's privileges. In examining the bill, and noting the obvious similarities to the information cited in the media, the Chair can appreciate the seriousness of the matter raised.

When ruling on a similar question of privilege on April 19, 2016, I found a prima facie case of privilege in relation to the premature disclosure of Bill C-14, an act to amend the Criminal Code and to make related amendments to other acts (medical assistance in dying). In that particular case, the government had acknowledged the premature disclosure of the bill while assuring the House that this had not been authorized and would not happen again. In other words, the facts were undisputed.

That is not the case with the situation before us. The parliamentary secretary has assured the House that the government did not share the bill before it was introduced in the House but conceded that extensive consultations were conducted. Nor is the Chair confronted with a situation where a formal briefing session was provided to the media but not to members.

Finally, it is a long established practice to take members at their word, and the Chair, in view of this particular set of circumstances, is prepared to accept the explanation of the Parliamentary Secretary to the Leader of the Government in the House of Commons.

In the absence of evidence that members have been prevented from conducting their parliamentary functions due to the premature release of the bill itself, I cannot find that a prima facie case of privilege exists in this case.

Business of the House

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

Mr. Speaker, this afternoon, we will continue the debate we began this morning on the NDP opposition day motion.

This evening, we will return to Bill C-24, an act to amend the Salaries Act and to make a consequential amendment to the Financial Administration Act. Following that, we will begin second reading of Bill C-50 on political financing.

Tomorrow will be dedicated to debating Bill C-44 on the budget.

As for next week, our hope is to make progress on a number of bills, including Bill C-6 concerning citizenship; Bill C-50 respecting political financing; Bill C-49, transportation modernization; and Bill S-3, amendments to the Indian Act.

Finally, next Monday, Tuesday, and Wednesday shall be allotted days.

As the member very well knows, I always look forward to working with all members. I look forward to continuing our conversation.

Air Transportation

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

Mr. Speaker, first the Liberals took aim at the parliamentary budget officer, and now they have the Commissioner of Competition's powers in their sights. In 2011, the commissioner blocked a deal between Air Canada and United Airlines because it would have eliminated competition and raised the cost of flying. Under Bill C-49, the minister will have sole authority to approve such deals, and it just so happens that Air Canada and United Airlines are planning to resubmit the exact same proposal.

If the commissioner rejects the deal again, will the Prime Minister tell his minister to listen to the commissioner, or will he once again bend to Air Canada's will?

Rail Transportation

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

Mr. Speaker, a closer look at Bill C-49 reveals that the Liberals are trying to sell shippers a weaker version of the Fair Rail for Grain Farmers Act. Adding insult to injury, the pro-shipper measures contained in Bill C-30 will sunset on August 1. As a result of the minister's delay tactics, farmers will be forced to negotiate next year's contracts without the benefit of a law.

This omnibus bill is too late for western shippers. Will the minister now separate the rail shipping measures for expedited scrutiny?

Transportation Modernization Act

[The Assistant Deputy Speaker, Anthony Rota]

When we resume debate on Bill C-49, the hon. member will have 10 minutes to finish his speech.

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

Mr. Speaker, I thought I would only have 10 minutes, but it sounds like I will have 20. I will try not to bore you too much and close off nicely this long day that the Liberals have granted us.

The subject of today's debate is the transportation modernization bill. The Liberals have proposed this transportation bill—an omnibus bill, I might add. Bill C-49 establishes new rights for air passengers and liberalizes international ownership restrictions for Canadian air carriers; enables the Minister of Transport to consider and approve joint ventures by two or more airlines; updates the Canadian freight system; requires railways to install audio-video recorders in locomotives; enables the Governor in Council to require large railways to provide rate, service and performance data; and amends the Canada Marine Act to allow port authorities to access Canada infrastructure bank loans. I will focus on that last aspect in a few minutes.

I am saying all this to show how huge this part of the bill is. Unfortunately, we will have little time to discuss it. This part is hidden in an omnibus bill. The government has found a way to muzzle us so that we cannot point out the flaws in this bill.

The Emerson report is a study of the Canada Transportation Act that was led by the Hon. David Emerson. The study was launched on June 25, 2014 to address a variety of changing conditions and challenges, especially in the grain transportation industry across the Prairies.

Liberals tabled this report on February 25, 2016. Then, they launched a new process because the work done by the Hon. David Emerson was not enough for them. This means that today we have very little time to discuss this issue. The bill was introduced after 18 months of work. It built on the work done by the previous government and contained 60 recommendations to deal with a variety of changing conditions and challenges in Canada's transportation industry.

Unfortunately, the Liberals decided to launch another consultation process, and are only now introducing another bill. We will study it to make sure it strikes the right balance between the industry and consumers rights. That is the thorough work we, the opposition parties, will do together to try and support the government, who needs a lot of help implementing structuring bills for all Canadians.

This bill is supposed to amend the Canada Transportation Act but surreptitiously empowers the mysterious Canada infrastructure bank. This particular clause can easily be overlooked, and yet it raises many questions. We are not even sure why this infrastructure bank is being created in the first place.

That is what I what to speak to in the House tonight. The infrastructure bank is funded with taxpayers' money to the tune of $35 billion. Those same citizens will have to guarantee these $35 billion if foreign investors fail to bring projects to fruition. Thus, it will be the citizens taking the risks. The Liberals are putting their infrastructure bank in place for all of their friends around the world, those foreign investors our Prime Minister likes to visit outside of the country.

The top infrastructure bank official said it was created to underwrite funding for carefully planned, complex projects.

“Underwrite” means that if someone defaults on a loan, the underwriter is responsible for the debt.

In this case, Canadians taxpayers will assume all of the risk for the Liberals' bank venture. Considering how they are managing the deficit, we have every reason to be concerned about how they will manage the $35 billion if that is really how the bank was set up.

I would like to tell the House the story of the infrastructure bank.

In October 2015, the Liberals promised small deficits on the order of $10 billion and announced the creation of an independent infrastructure bank. We know what happened next. In November 2016, the highly anticipated bank was announced. At a meeting of the Standing Committee on Transport, Infrastructure and Communities, I asked the minister where the money would come from. All I got was radio silence. There was no response in the budget.

The next day, I again asked where the money would come from, and I was told that the government would take the $15 billion out of the infrastructure program that was supposed to help all Canadian municipalities.

The minister decided to take that money and put it in the infrastructure bank to finance projects worth more than $100 million in the municipalities.

Now we get to the really good part because a few weeks later, I had an opportunity to ask the Minister of Finance and the Minister of Infrastructure and Communities questions about who would really benefit from these $100-million-plus projects they wanted to fund through the infrastructure bank.

We are wondering about this because most municipalities cannot afford projects of $100 million or more except maybe Montreal, Toronto, and Vancouver. We get the feeling that the government has diverted $15 billion that should have been given to all Canadian municipalities to support infrastructure projects and put it in a new infrastructure bank that it created for its little friends. The government is still trying to figure out what kind of projects can really be funded under this program.

In November, December, January, February, March, April, and May, we asked the Minister of Infrastructure and Communities to name a single project of $100 million or more that could be carried out in Canada's small or medium-sized municipalities. Every time, we got complete radio silence, despite the fact that, at one point, the minister was surrounded by his cohort of senior officials and experts at a committee meeting. We repeated that it was not a complicated question and asked him to name, not five or six, but just one single project. We wanted to know one project that a small or medium-sized municipality in Canada would need the infrastructure bank to carry out. Radio silence.

That is normal, because over the past 10 years, and not over the past six months or 10 days, the average cost of infrastructure projects in Canada was not $100 million or $500 million, as certain investors would like. It was $6.7 million. The difference between $100 million and $6.7 million is a lot of money. This is simply to prove that this infrastructure bank will not serve many people, apart from reassuring investors by making sure that it will be Canadians all across the country who carry the risk for these projects.

I think the Prime Minister is missing something about the Robin Hood story. Indeed, instead of taking money from the rich and giving it to the poor, he decided to take taxpayers' money and give it to his friends and Liberal Party donors. This is where we get a sense of the dishonesty of these plans for the infrastructure bank.

Then we learned that Michael Sabia, president of the Caisse de dépôt et placement du Québec, and other investors who are working with the infrastructure bank, will want returns of 7% to 9%.

As a former mayor of a municipality of 45,000 residents, I can say that I never would have accepted funding at a cost of 7% to 9% when I had access to all kinds of municipal bonds at a rate of return of roughly 2% to 2.5% at most.

Once again, one might wonder why a municipality would need to go looking for financing. Just last week I had the opportunity to meet with the vice-president of the Union des municipalités du Québec, who is also the mayor of an important city in Quebec. I do not want to name him and put him on the spot here tonight. He is probably sleeping at this hour, but he might be listening on CPAC. I asked him whether, during all his years as mayor and at the council table, he had ever needed to go looking for financing from a bank. It has never happened.

It is late and we all want to get to bed. I thank you, Mr. Speaker, for the time you have given me to speak to Bill C-49. However, it is not nearly enough time to speak to such an important bill.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, I hope I can comment sufficiently on the question from the member for Sherbrooke.

Bill C-30 really looked at grain. It was looking at a bumper crop situation and it had to do something. It was really a Band-Aid solution that focused on the grain market.

In the case of today's market and what we propose in Bill C-49, we would also be handling lumber. We are looking at softwood lumber being an issue in the United States. We are looking at new markets in Asia. How do we get lumber to either coast, and a lot of it? Lumber would be something that we would want to address. In the case of mining, resources coming out of the ground, how do we get that efficiently to market? How do we get auto parts to market in southwest Ontario?

It is really more than just a Band-Aid solution for grain. We need a comprehensive solution that is part of an integrated transportation strategy. Bill C-49 addresses that need.

[Lloyd Longfield, Liberal, Guelph, ON]

Mr. Speaker, it is my pleasure to speak today to Bill C-49, which proposes amendments to the Canada Transportation Act to advance the efficiency and competitiveness of our freight rail system. This is especially important to Guelph, which is home to one of Canada's three federally chartered railways.

The Guelph Junction Railway was established in 1886 by a special act of the federal government to foster economic growth in Guelph and in the surrounding communities. The City of Guelph has owned the railway since 1908. The GJR operates 38.6 kilometres of track that runs from Guelph Junction near Campbellville, Ontario, to Guelph's northwest industrial park. It is a strategic line that runs between the Canadian Pacific Railway and the Canadian National Railway.

Canadian exporters today have the advantage of the lowest freight rates in the world, even lower than in the United States, and a track record of significant investment by the railways that is essential for keeping these rates low in the future. However, even the strongest system has room for improvement, and we have heard concerns from both shippers and railways through our consultation process. We have heard in particular about system bottlenecks and other constraints that slow the movement of our goods. We have heard about delays in shipping that can affect our nation's reputation for reliability, and about regulations that dampen investment in the network to everyone's detriment.

Canada's rail system is the backbone of our export trade. It moves our goods to destinations across the country, to the United States, and for export overseas. The conditions we establish now, in 2017, will be essential for our nation's long-term growth and prosperity.

Following extensive consultations, our government is proposing new measures that would lay the groundwork for future success.

The bill would promote greater efficiency and investment in the system for the benefit of all Canadians. First, the bill proposes a new competitive access tool for shippers that would allow them to obtain better options for service and rates. This new tool, long-haul interswitching, would allow a shipper served by only one railway to access a competing railway at a rate and on service terms set by the Canadian Transportation Agency. Long-haul interswitching has been designed to meet the needs of captive shippers across a wide range of sectors: grain, forestry, and mining just to name a few. It would apply at a distance of 1,200 kilometres or more to ensure that some of our most remote shippers could benefit.

By providing competition between railways, this measure would improve system efficiency in moving goods to market, and at the same time, railways would be fairly compensated for their services and for the cost of maintaining infrastructure. The agency would set the rates under this measure based on comparable traffic. This would help prevent the risk that railways might unde-invest or even close their lines due to lack of revenue.

As a part of this, we would allow extended interswitching in the prairie provinces to sunset as planned on August 1. Many members will recall that this measure was adopted in 2014 under the Fair Rail for Grain Farmers Act in response to the unique challenges in the grain handling and transportation system at that time and in that season.

Most challenges no longer exist, and extended interswitching is problematic in many respects. It only applies up to 160 kilometres and only in the prairie provinces. It does not cover other shippers in Canada who have told us about railway service issues. Its rates are far too low to compensate railways for moving the traffic, which would erode investment over time. A key beneficiary of this measure is not the shipper community but the American railway, the railway that scoops traffic away from Canadian railways but makes comparatively little investment in the Canadian network.

Long-haul interswitching is a far better tool as it would apply across sectors and across regions of Canada.

The grain sector would be far better off, as all captive grain shippers would have access to this competitive tool, not just those falling within a specific zone. The railways would be compensated appropriately to ensure that the system runs smoothly and grain moves to market effectively. The proposed new measure is also being carefully structured to minimize the risk of American railways unfairly taking traffic.

Many members will recall that the Fair Rail for Grain Farmers Act also imposed minimum volumes of grain to be moved by the railways. In our consultations, we have heard that this had negative effects. It benefited specific shippers to the detriment of others. It was good for the large companies, but not for the farmers. More importantly, the unique challenges of 2014, and that growing season, no longer exist. For these reasons, the volume requirements would be allowed to sunset as planned on August 1.

Our government recognizes the importance of moving grain and other commodities efficiently to market. Greater transparency on how well the system is working is obviously critical to efficiency. That is why Bill C-49 would require railways to report publicly every year on their plans to move grain and to manage weather-related disruptions. They would also need to report service and performance metrics that help them measure how the system is doing. The agency would have clear new authorities to hold an inquiry into any emerging issue at the minister's request. These measures would help all parties to keep track of emerging problems and work together to find solutions before the crisis point hits.

Importantly, this bill would provide shippers with the ability to maintain reciprocal financial penalties in service agreements. Applying penalties for service failures would encourage the most efficient service possible. Our rail system can only flourish within the right regulatory framework. To promote system efficiency, the bill would also modernize the Canada Transportation Act. For example, it would update the insolvency regime for railways, which dates back to 1903 and cannot address the complexity of modern business arrangements.

The railway industry must invest significantly in the network to keep it running safely and smoothly. That is why this bill also proposes measures to promote continued investment. For example, it would loosen shareholder restrictions on CN Railway that have been in place since it was privatized in 1995.

Bill C-49 would also fix problems with the maximum revenue entitlement, which caps the revenue per tonne that CN, CP, and Guelph Junction can earn for moving western grain. I just threw in Guelph Junction. It would fairly credit their investments in the network, and encourage them to obtain new modern hopper cars. It would also promote the movement of grain by containers, which is an innovative way to provide service and extra capacity at peak periods when the system is full. Again, this would apply across all regions of Canada, including Guelph.

Together, these amendments would achieve the goals of a competitive, efficient freight rail system, a system in which commercial forces drive efficiency but legislative backstops are in place to ensure that the system is fair, balanced, and transparent, a system in which the conditions are right for low rates, future investment, and future success.

I urge colleagues to adopt Bill C-49 as quickly as possible so that we can serve our farm community.

[Joe Peschisolido, Liberal, Steveston—Richmond East, BC]

Mr. Speaker, before I begin my comments, I would like to note that I will be sharing my time with the hon. member for Guelph.

In commenting on Bill C-49, I will be focusing on the liberalization of the international rules of Canadian airlines.

Canadian travellers and their experiences are top of mind for our government. During consultations conducted by the Minister of Transport, we asked Canadian travellers for their feedback and they were clear. They wanted lower-cost air travel, more opportunities for leisure and business travel, and they wanted to see Canada become a more attractive travel destination for visitors. They asked for long-term sustainable competition, which would allow for the introduction of additional air services, improved air connectivity, and perhaps, above all, more choice. The government has listened and is committed to achieving tangible improvements to the traveller experience.

As a result of the feedback we received, a number of proposals have been introduced in Bill C-49 to help improve the traveller experience in Canada.

For example, the government intends to liberalize international ownership restrictions for Canadian air carriers. What does this mean for Canadian travellers? Let me begin by briefly describing this initiative.

Like most countries, Canada limits international ownership and control of domestic air carriers. Under the Canada Transportation Act, non-Canadians currently cannot possess more than 25% of the voting shares of a Canadian carrier. Additionally, Canadian air carriers must also be controlled by Canadians, which means they may not be subject to controlling influence by international investors.

Limits on foreign ownership and control of air carriers are the norm around the world. For instance, in the United States, the limit is 25%, while the European Union, Korea, Australia, and New Zealand allow up to 49%, and Japan allows 33.3%. Limits vary depending on the circumstances of each country and the circumstances of each region.

However, Canada's current ownership limits may be acting as a barrier to new services and enhanced competition. Two prospective ultra low-cost carriers, Canada Jetlines and Enerjet, have already applied for and received exemptions to the current limits on international ownership from the Minister of Transport. Both companies successfully argued that under the current 25% limit, there was insufficient risk capital in the Canadian market to support the launch of new services.

Reflecting on this reality and the Canada Transportation Act review recommendations, the government is proposing changes that would allow international investors to own up to 49% of the voting shares of Canadian air carriers by introducing legislation that would amend the act and all other relevant acts.

As mentioned earlier, countries have different approaches to international ownership of air carriers, and our government wants to ensure that Canadian carriers compete on a level playing field. To protect the competitiveness of our air sector and support connectivity, no single international investor or any combination of international air carriers will be allowed to own more than 25%.

The direct impact of higher levels of international investment is that Canadian air carriers would have access to a wider pool of risk capital. This would allow air carriers to be better funded and could allow new carriers, which are otherwise not able to find sufficient risk capital, to enter the Canadian market.

New carriers, including ultra low-cost carriers offering extremely competitive prices, are expected to bring more competition into the entire Canadian air travel sector. This could in turn reduce the cost of air transportation and open new markets to Canadian consumers and shippers.

Small markets currently underserved by existing carriers could also benefit from services by new carriers. For instance, airports in smaller cities that currently offer services to a very limited number of destinations could benefit from the addition of new services, since we know that ultra-low-cost carriers use these smaller airports as their hubs. All of this could lead to more choice when purchasing an airline ticket; more travel destinations for all travellers, including those from smaller cities; and lower prices for Canadian travellers. Additionally, there could also be benefits for airports and suppliers and the entire country as more jobs and more prosperity are added to the Canadian economy.

To finish, let me underscore that the experience of Canadian air travellers is a great priority for the Government of Canada. We know that it is also a priority for Canadians. This is why we have proposed to increase international ownership restrictions for Canadian air carriers. If this initiative is implemented, we believe it could significantly improve the travel experience for all Canadians. Once in place, it could also help lower prices, support increased competition among air carriers, provide more choice to Canadians when it comes to purchasing an airline ticket, and ultimately improve service and connectivity for Canadian travellers.

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.

Business of the House

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

Mr. Speaker, this afternoon, we will continue debate on the Conservatives' opposition motion. This evening, we will proceed with Bill C-45, the cannabis act, at second reading.

Tomorrow morning, we will commence report stage of Bill C-44, the budget. In the afternoon, we will return to Bill C-45.

Our hope for Monday and Tuesday is to send Bill C-45 to committee, and also to deal with report stage of Bill C-44. Other bills for next week include the Senate amendments to Bill C-6, the Citizenship Act; and Bill S-3, provided the bill is passed by the Senate.

Should time permit, we would also like some debate on Bill C-49, transportation modernization; and Bill C-24, to amend the Salaries Act.

We have had a conversation among House leaders. I look forward to continuing those conversations, and I will do my best to report to this House the information that I have, and we will do our best to work well together so that all members can do the good work that we are sent here to do.

Alleged Premature Disclosure of Contents of Bill C-49

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I am rising to respond to the question of privilege raised by the member for Carlton Trail—Eagle Creek on May 17, 2017, on the alleged premature disclosure of the contents of Bill C-49, the transportation modernization act.

The member alleges that the media reports on the bill prior to its introduction constitutes a breach of the privilege of the House. Our government holds parliamentary privilege in the highest regard and takes seriously any allegations that privileges were not respected.

In the case before the House, I submit that the government took great care to ensuring that the details of Bill C-49 were not prematurely divulged prior to its introduction.

I would like to draw the attention of members to the extensive consultations that were held on the review of the Canada Transportation Act. In fact, these consultations began under the previous government. As part of these consultations, over 480 meets and roundtable discussions were held and over 230 written submissions were received between June 2014 and December 2015. The current Minister of Transport supplemented this work with a wide-ranging set of consultations, holding 10 major round tables across the country between May and November 2016, as well as holding engagement sessions on social media.

Following these extensive consultations, the minister made a speech on November 3, 2016, which outlined his vision entitled “Transportation 2030 - A Strategic Plan for the Future of Transportation in Canada”.

Following the launch of the transportation 2030 strategy, the minister continued to meet with a wide range of stakeholders in the transportation sector, gave speeches and media interviews, and spoke in the House about issues he intended to address through upcoming legislation. That is to say, any reporter or interested stakeholder would have had a very good idea of what issues were to be addressed in Bill C-49.

Before turning to the facts of the matter before the House, I would point out that the Speaker must judge the extent to which the issue has infringed upon the ability of members to discharge their parliamentary duties. Page 145 of the second edition of House of Commons Procedure and Practice states:

In deliberating upon a question of privilege, the Chair will take into account the extent to which the matter complained of infringed upon any Member's ability to perform his or her parliamentary functions or appears to be a contempt against the dignity of Parliament.

On October 4, 2010, the Speaker ruled that it is indisputable that it is a well-established practice and accepted convention that the House has the right of first access to the text of bills that it will consider. At no time were the specific details of the bill made public. In fact, the minister and his staff refused to comment on the specific details of the provisions of Bill C-49, which was reported by a number of media outlets.

The member cites the March 2001 ruling by Speaker Milliken, which is a clear acknowledgement of the government's prerogative to consult with stakeholders and Canadians in the development of government policy. The ruling states:

In preparing legislation, the government may wish to hold extensive consultations and such consultations may be held entirely at the government's discretion. However, with respect to material to be placed before parliament, the House must take precedence.

I submit this is precisely what the government has done with respect to Bill C-49.

The case that the member cites is drastically different than the situation before the House. The 2001 ruling referred to by the member involved a minister of the crown who gave a detailed briefing on a government bill to the media in advance of the introduction of the bill. Moreover, members and their staff were not permitted to attend the briefing. As a result, members were unable to respond to media inquiries on the content of the bill. This situation sits in stark contrast to the situation before the House.

Let me take a few moments to show why this is not a legitimate question of privilege.

First, in the evening of May 15, the CBC website stated, “Passenger bill of rights will set national standard for air travel”. Stating the general goals of proposed legislation is not a detailed description of the specific measures contained in the bill.

I would submit that this is a general statement of the objective to address an issue. There was no reporting on what the national standards would be or the modalities of scheme. In fact, this would be impossible, since the bill simply authorized the development of regulations to address this issue.

Similarly, CTV News referred to minimum standards for reimbursement for travel disruptions and lost luggage but did not, and I submit could not, refer to what the minimum standards would be, since these standards would be set through the regulatory process. This was confirmed by a CBC report and on CTV News. I am not sure how the member believes that the disclosure of the proposed standards would be in regulations constitutes in any way contempt of this House.

In instances such as this one, where the government has consulted extensively on the development of policy, there are bound to be cases in which an issue, such as air passenger rights, would be made public prior to the introduction of a bill. What differentiates a bona fide contempt of the House through the premature disclosure of the contents of a bill and the case before the House is that no specific details were released.

Moreover, the minister and his staff were clearly cognizant of the imperative of not disclosing the specific details of the bill to avoid a contempt of the House.

For example, I would refer to the May 14 Globe and Mail article where the minister's office denied to comment on the specifics of the bill until properly introduced. Again, in the Canadian Press article of April 11, the minister's spokesperson is quoted as declining to say if the legislation would set industry-wide standards, or raise compensation levels offered in the United States or Europe.

The difference between divulging specific details of a bill and speaking about current issues that may be addressed in a bill should not be lost on members. Speaking about general issues to be addressed in a bill without divulging the specific content of the bill is not only permissible but reasonable. While the government consults on issues which may be made public during the course of consultations, the specific details of provisions to address such issues are only made public following the introduction of the bill. This is precisely the case before the House.

I would refer to the Speaker's ruling of April19, 2016, with respect to the premature disclosure of the content of Bill C-14, where the Speaker highlighted that the specific details of the bill were prematurely disclosed, which had the effect of impeding members in the discharge of their parliamentary duties.

The government brings forward bills that were mentioned in the party's electoral platform, Speech from the Throne, Budgets, mandate letters, or were subject to public consultations. Would a bill to implement an initiative announced in one of the aforementioned policy proposal be automatically be deemed to constitute a prima facie question of privilege once the bill has been introduced?

That cannot be the intent. Media reports leading up to the introduction of Bill C-49 did not reveal specific measures. Nor did these reports act in any way as to impede members in the discharge of their parliamentary duties.

In conclusion, the matter raised by the member for Carlton Trail—Eagle Creek does not meet the threshold of constituting a prima facie question of privilege.

Resuming debate

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

Mr. Speaker, I invite the parliamentary secretary to listen to the rest, as it is very interesting. I would add that I was hanging on his every word throughout his speech,

As I was saying, when we want to voice our points of view, on the opposition side, it does not work. The Liberals do not want to hear them, and as a result, they make serious mistakes, like the one they made this afternoon when they voted against the autism motion. It would be very much to the government’s advantage to demonstrate good will and allow the opposition the time it needs during these long, hard sittings we will be starting shortly.

This evening, I am going to talk about Bill C-46, after motion No. 14 is passed. I have things to say to the government about what has been done badly in the bill. I am pleased to have the time to do it and to stay here late tonight to voice my disagreement on several aspects of Bill C-46. However, I would also have liked the government to acknowledge, with just as much enthusiasm, that when we have something to say, it may be equally interesting.

I understand why the government is in a hurry and absolutely wants to extend sitting times. It is because few government bills have received royal assent since the start of the session. By contrast, in the first 18 months of the Harper government, more than twice as many government bills had received royal assent.

In short, the Liberals are in a bit of trouble, because the bills they present to the House are slipshod and do not really reflect what Canadians expect. Canadians expect that the government will prepare good bills. This is not because of a shortage of consultation, however, since the Liberals have done nothing else since the beginning. They consult a group on the left before making a decision, then they go and consult another group to find out whether the decision is satisfactory. Then they raise the subject in the House and we discuss it. For some time, however, they have been preventing the opposition from talking about it. They pass a closure motion, and they send the bill to the Senate. That is where the big problems start for the government, because its bills come back with amendments.

That is the new way that things are done. They wanted to elect independent senators. They told them that they would be able to state their opinions and their wisdom would be used to improve bills, but what happens when there are amendments to the bills? Everyone is up in arms, the government sends them back, telling them that this was not their job and it does not accept their changes. The result is that the government is unable to get its bills passed.

If the goal was to embark on an ambitious agenda to speed up the passage of crucial programs for Canadians, then why not? However, that is not happening. They are being asked to attend to urgent matters. For example, this afternoon, the Standing Committee on Transport, Infrastructure and Communities had a discussion about the defunct Bill C-30, which is set to expire in August. The government addressed this very recently through the Minister of Transport's Bill C-49, an omnibus bill that changes just about every transportation-related law imaginable. Then the government realized that part of the bill absolutely had to go through before August or western grain producers would run into problems, so the Standing Committee on Transport, Infrastructure and Communities was told there had been a little mistake and it would have to speed up its study of the whole bill in order to pass this one little measure.

We moved a motion to split the bill so the government could get the job done faster, achieve its goals, and deal with grain producers' concerns. I am looking forward to its response. We have come up with some good, reasonable proposals to move this country's legislation and files forward, but nothing the opposition suggests is good enough for the government. That is the problem.

The government wants our trust, but that is hard. Remember Motion No. 6 and the attempts to change the rules of the House, not to mention the consultations that never happened on partisan appointments as in the case of Mrs. Meilleur? The government wants our trust and says it is going to work hard, but it is making no promises not to take full advantage of this extraordinary measure to change the rules of the House. That brings me to our other condition: the government must pledge not to move a motion to change the rules of the House. Maybe then it will have the people's support.

In short, we are ready to work. To conclude, I am going to quote the Parliamentary Secretary to the Leader of the Government in the House of Commons, who told the Hill Times, in an article published on May 29, that their goal was to feel productive inside the House of Commons.

Giving the impression of being productive does not produce anything. It simply gives the impression of work. What we want is some real work. We want to work late, and we are prepared to do that and to collaborate with the government, but we are asking it for two little things. If the government really wants us to recommend its bills and if it really wants us to help it move its agenda forward, which is not as ambitious as all that, I would note in passing, then let it give us, too, the opportunity to make our motions and to present our concerns as they relate to Canadians. The government will then certainly have the support of our party and the official opposition.

This is an invitation to collaborate that I know will go nowhere.

Extension of Sitting Hours

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

moved:

That, notwithstanding any Standing Order or usual practice of the House, commencing upon the adoption of this Order and concluding on Friday, June 23, 2017:

(a) on Mondays, Tuesdays, Wednesdays and Thursdays, the ordinary hour of daily adjournment shall be 12:00 a.m., except that it shall be 10:00 p.m. on a day when a debate, pursuant to Standing Order 52 or 53.1, is to take place;

(b) subject to paragraph (e), when a recorded division is demanded in respect of a debatable motion, including any division arising as a consequence of the application of Standing Order 61(2) or Standing Order 78, but not including any division in relation to the Business of Supply or arising as a consequence of an order made pursuant to Standing Order 57, (i) before 2:00 p.m. on a Monday, Tuesday, Wednesday or Thursday, it shall stand deferred until the conclusion of oral questions at that day’s sitting, or (ii) after 2:00 p.m. on a Monday, Tuesday, Wednesday or Thursday, or at any time on a Friday, it shall stand deferred until the conclusion of oral questions at the next sitting day that is not a Friday;

(c) notwithstanding Standing Order 45(6) and paragraph (b) of this Order, no recorded division requested after 2:00 p.m. on Thursday, June 22, 2017, or at any time on Friday, June 23, 2017, shall be deferred, except for any recorded division which, under the Standing Orders, would be deferred to immediately before the time provided for Private Members’ Business on Wednesday, September 20, 2017;

(d) the time provided for Government Orders shall not be extended pursuant to Standing Order 45(7.1) or Standing Order 67.1(2);

(e) when a recorded division, which would have ordinarily been deemed deferred to immediately before the time provided for Private Members’ Business on a Wednesday governed by this Order, is demanded, the said division is deemed to have been deferred until the conclusion of oral questions on the same Wednesday;

(f) any recorded division which, at the time of the adoption of this Order, stands deferred to immediately before the time provided for Private Members’ Business on the Wednesday immediately following the adoption of this Order shall be deemed to stand deferred to the conclusion of oral questions on the same Wednesday;

(g) a recorded division demanded in respect of a motion to concur in a government bill at the report stage pursuant to Standing Order 76.1(9), where the bill has neither been amended nor debated at the report stage, shall be deferred in the manner prescribed by paragraph (b);

(h) for greater certainty, this Order shall not limit the application of Standing Order 45(7);

(i) no dilatory motion may be proposed after 6:30 p.m.;

(j) notwithstanding Standing Orders 81(16)(b) and (c) and 81 (18)(c), proceedings on any opposition motion shall conclude no later than 5:30 p.m. on the sitting day that is designated for that purpose, except on a Monday when they shall conclude at 6:30 p.m. or on a Friday when they shall conclude at 1:30 p.m.; and

(k) when debate on a motion for the concurrence in a report from a standing, standing joint or special committee is adjourned or interrupted, the debate shall again be considered on a day designated by the government, after consultation with the House Leaders of the other parties, but in any case not later than the twentieth sitting day after the interruption.

Mr. Speaker, I rise to speak to government Motion No. 14. For the benefit of members, the motion would extend the sitting of the House until we rise for the summer adjournment.

We have much to accomplish in the coming weeks. Our government has an ambitious legislative agenda that we would like to advance in order to deliver on the commitments we made to Canadians in the last election. Let me reflect on our recent legislative achievements before I turn to the important work that lies before us over the next four weeks.

In our last sitting week, the House and Senate were able to reach agreement on securing passage of Bill C-37, which would put in place important measures to fight the opioid crisis in Canada. I would like to thank members of the House for the thoughtful debate on this bill and for not playing politics with such an important piece of legislation. In particular, I would like to thank members of the New Democratic Party for co-operating with the government to advance this bill when it was in the House and for helping us dispense with amendments from the Senate. This was a high watermark for the House and I hope that we can take this professional and courteous approach forward. I would also like to thank senators for their important contributions to this bill.

I would also like to point out the passage of two crucial bills related to trade. The first, Bill C-30, would implement an historic trade agreement with the European Union. The second, Bill C-31, would implement a trade agreement with Ukraine, a country that is dear to many members.

I am proud that our government continues to open the doors to trade and potential investment in Canada to grow our economy and help build a strong middle class.

In looking forward to the next four sitting weeks, I would like to highlight a few priority bills that our government will seek to advance. I will start with Bill C-44, which would implement budget 2017. This bill is about creating good middle-class jobs today while preparing Canadians for the jobs of tomorrow.

I will provide some examples of the initiatives that will contribute to building a strong middle class. The budget makes smart investments to help adult workers retain or upgrade their skills to adapt to changes in the new economy and to help young people get the skills and work experience they need to start their careers.

The budget also provides for investments in the well-being of Canadians, with the emphasis on mental health, home care, and health care for indigenous peoples.

Bill C-44 would provide financing to the provinces for home care and mental health care. It would also create leave for those who wish to care for a critically ill adult or child in their family. These initiatives help build stronger communities.

I would also like to point to initiatives in the budget that deal with gender equality. The first-ever gender statement will serve as a basis for ongoing, open, and transparent discussions about the role gender plays in policy development. Our government has other initiatives that aim to strengthen gender equality. For example, Bill C-25 encourages federally regulated companies to promote gender parity on boards of directors and to publicly report on the gender balance on these boards.

Another bill, which I will discuss in greater detail later in my remarks, is Bill C-24, a bill that would level the playing field to ensure a one-tier ministry. The bill has a simple premise. It recognizes that a minister is a minister, no matter what portfolio he or she holds.

Our government has committed to legalizing and strictly regulating the production, distribution, sale, and possession of cannabis. I look forward to the debate on this important bill tomorrow. I will note that the bill would provide strong safeguards and deterrents to protect young people from enticements to use or access cannabis.

The government has taken a responsible approach in seeking to legalize cannabis by ensuring that law enforcement agencies have approved methods to test the sobriety of drivers to guard against cannabis use while operating a motorized vehicle. This afternoon, the House will continue to debate this bill, which, I will happily note, has support from all opposition parties in the House. I hope that we can agree to send this bill to committee on Wednesday.

Now I would like to return to our government's commitment to improving gender equality. Bill C-24, which stands in my name, seeks to formalize the equal status of the ministerial team. This bill is very straightforward in its nature. It is fundamentally about the equality of all ministers. We strongly believe that the Minister of Status of Women should be a full minister. We believe that the Minister of Science and the Minister of Democratic Institutions should be full ministers.

I am disappointed that the Conservatives do not share this fundamental belief in equality. I think we should send this bill to committee for a detailed study of what the bill actually does.

I would like to draw members' attention to another piece of legislation, Bill C-23, regarding an agreement with the United States on the preclearance of persons and goods between our two countries.

This bill is currently being studied by the Standing Committee on Public Safety and National Security. The principle of the bill is simple. It is about ensuring a more efficient and secure border by expanding preclearance operations for all modes of transportation. This will increase the number of trips and the volume of trade, which will strengthen both of our economies.

As members may know, preclearance operations currently take place at eight Canadian airports, and immigration pre-inspection is also conducted at multiple locations in British Columbia in the rail and marine modes.

Once that bill comes back from committee, I hope that we can work together to send it to the other place.

In our last sitting week, our government introduced comprehensive modernization of our transportation systems. A strong transportation system is fundamental to Canada's economic performance and competitiveness. Bill C-49 does just that. The bill would enhance the utility, efficiency, and fluidity of our rail system so that it works for all participants in the system. Freight rail is the backbone of the Canadian economy. It moves everything from grain and potash to oil and coal, to the cars we drive, the clothes we wear, and the food we eat.

I would also like to draw to the attention of members provisions in Bill C-49 that would strengthen Canada's air passenger rights. While the precise details of the air passenger rights scheme will be set out in regulations, the objective is that rights should be clear, consistent, transparent, and fair for passengers and air carriers.

Finally, our government committed to creating a national security and intelligence committee of parliamentarians. Bill C-22 seeks to accomplish two interrelated goals, ensuring that our security intelligence agencies are effective in keeping Canadians safe, while at the same time safeguarding our values, rights and freedoms, and the open, generous, inclusive nature of our country.

I appreciate the work that was done in the House committee to improve the bill. The bill is currently before the Senate national security committee, and I look forward to appearing before that committee with my colleague, the Minister of Public Safety and Emergency Preparedness.

Sitting a few extra hours for four days per week will also give the House greater flexibility in dealing with unexpected events. While it is expected that the Senate will amend bills, it is not always clear which bills and the number of bills that could be amended by the Senate. As we have come to know, the consideration of Senate amendments in the House takes time. This is, in part, why we need to sit extra hours. I know that members work extremely hard balancing their House duties and other political duties. I expect that extending the hours will add to the already significant workload.

I wish to thank members for their co-operation in these coming weeks. As I reflect upon my time as government House leader, there were examples where members of the House came together, despite their political differences, and advanced initiatives that touched directly upon the interests of all Canadians. I hope that over the four remaining sitting weeks before we head back to work in our ridings, we can have honest and frank deliberations on the government's priorities and work collaboratively to advance the agenda that Canadians sent us here to implement.

In the previous Parliament, when the government decided to extend the sittings in June of 2014, Liberal members supported that motion. We knew then, as we know now, that our role as legislators is a privilege, and we discharge our parliamentary functions in support of our constituents.

There will be initiatives that the government will bring forward over the coming weeks that will enjoy the support of all members, and there will be issues on which parties will not agree. Our comportment during this time will demonstrate to Canadians that we are all in this together, despite our differences, for the good of this great country. Let us not lose sight of that.

I believe the motion before the House is reasonable. I hope opposition members can support sitting a few extra hours for four days a week for the next few weeks to consider important legislation for Canadians.