Transportation Modernization Act

An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Marc Garneau  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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

Elsewhere

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

Votes

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

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 12:55 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, that is an important question because the expectation is that by going to 49% we would increase competition. However, there should be in the bill, at the very least, measurables for that. There is no corroboration between the two in terms of increasing the foreign ownership. That is a real problem because there are so many anomalies with regard to who owns airlines and what they can have financially.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 12:55 p.m.
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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Mr. Speaker, I am rising today to speak to what is essentially the government's omnibus transportation bill. Unfortunately, I will not be able to hit on all the points of what is contemplated in the bill because, frankly, there is too much. It changes laws having to do with everything from shipping to railways to the airlines. It changes a number of different acts, and with a number of different purposes in mind. It would have been better to break the bill up into its component pieces so that they could be studied properly and on theme, rather than trying to rush it all through at once.

I would remind members of the House that debate in this place is not just for the sake of opposition politicians, or even backbench MPs on the government side, wanting to talk a lot. When we are talking in the chamber, and during the time it takes to pass the bill, Canadians and civil society are also learning about the bill and forming a judgment about whether they think it is a good idea or not, and having the time to be able to mobilize, either in support or against aspects of the government program.

When we talk about criticizing omnibus bills, it is not just for the sake of members in the House who want to go on talking. While we talk about that bill, Canadians are talking about it too, and they are getting a chance to weigh in. They are able to contact us, and become, through us in this place, part of the debate. Therefore, when governments lump a whole bunch of significant changes together and ram them through Parliament, they are not just cutting out parliamentarians from that debate. That is the time it takes in order to have a meaningful, civil engagement with respect to changes.

Bill C-49 contemplates many significant changes in a number of different areas of transport within Canada. As someone who comes from a rail town, I am particularly concerned about the provisions that purport to be about railway safety. Actually, what they are about is supervising workers in the workplace and tramping on their right to privacy in the workplace. We know that in terms of railway safety, the predominant issue has to do with fatigue management. What we hear time and again from people who are working on the trains is that railway companies in Canada are doing a very poor job of fatigue management. We know that is having real consequences for Canadians and the extent to which they feel safe in their own communities.

A government that was genuinely sincere about wanting to do something about railway safety in the country would be taking action on the issue of fatigue management. However, that would require getting involved in telling the railway companies something they do not want to hear. What we have seen from the government is that it is not willing to stand up to big companies and tell them what they do not want to hear. That is certainly true of railway companies.

It is not only true of railway companies. It was true when Bay Street corporate magnates came to Parliament Hill and told the Liberals to break their promise on closing the CEO stock option loophole. It was true when Air Canada came knocking and said it wanted to be off the hook for when it broke the law and exported the maintenance work on its planes, which rightfully belonged to Canadian maintenance workers. The government retroactively changed the law, and shame on certain members of the House. I am thinking of some colleagues of mine from Winnipeg, particularly the member for Winnipeg North, who stood with those workers and said the previous government should enforce the law and then became part of a government that changed the law and pulled the carpet out from beneath the feet of those workers who were successfully challenging Air Canada in court.

It is a theme of the Liberals to play pushover to big companies. The provisions around railway safety in the bill are no different. The railway companies came to them and said, “Let's not talk about fatigue management. Let's talk about putting video and audio surveillance in the cabs of trains so that we can watch the workers”.

If the Liberals were sincere about making it a safety issue, there would be provisions in the bill that would say only the Transportation Safety Board would have access to those recordings, and only when something happened, so it could go back and find out what was the root cause of an incident and rule on that. Instead, the legislation would give that 24-7 surveillance material to the companies, any time they like, for whatever purpose they like. Therefore, it is hard to believe that this is really about railway safety when the government is silent on the real issue facing railways and railway communities when it comes to their safety, and is giving unfettered access to that material to employers who we know will be able to use that information for other purposes.

The other thing about omnibus bills is that, for as much as certain things that require more legislation and more study do not get that study, by mingling issues, some things where there is widespread agreement, for instance some of the provisions in the bill for grain producers on the Prairies, who in part because of the elimination of the Wheat Board now need a legislative fix in order for them to be able to get a fair price for shipping their grain, do not get passed as quickly as they might.

The problem with the legislation is that the Liberals took so long to take action on that particular issue, which was not a surprise and did not have to wait on developing. To the extent that the government was putting all these issues together, and it is not a very fulsome air passenger bill of rights, because it wanted to present it in an omnibus bill, the Liberals took far too long to address a real problem on the Canadian Prairies for grain growers.

Now we are going to have a gap between when the old rules were in place, as a bit of band-aid solution to be able to help those grain producers on the Prairies, and when these new rules come in. If the Liberals were not so committed to omnibus legislation, they could have introduced those measures separately. They would have found that there was enough agreement to be able to expedite passage of those provisions. On this side of the House, we care about western grain growers and we want to make sure that they can get a fair price for shipping their grain.

However, the Liberals wanted to tie all these issues together in order to be able to conflate the issues and say that opposition parties are opposing good pieces of legislation, or were supporting bad pieces of the legislation. It is all tied together. In other words, in order to cover their political behinds, Canadian grain producers are the ones who are going to suffer.

It is wrong of the government to ask Canadian grain growers to essentially pay for political cover for the government. That is a big part of what is going on here.

I just want to take a moment to thank the member for Windsor West, not only for sharing his time with me today but also for the work that he did on the air passenger bill of rights. He actually helped to develop a substantive air passenger bill of rights. I will also recognize one of my NDP predecessors for Elmwood—Transcona, Jim Maloway, who did good work on an air passenger bill of rights. He paved the way and presented a bill in the last Parliament that the now Minister of Transport actually supported. It took forever to produce and the changes that were necessary to actually protect consumers were spelled out in that legislation, a bill the Minister of Transport supported.

However, do we see the substance of that bill represented in this omnibus piece of legislation? No, we do not.

This is just how complicated omnibus legislation gets. Canadian grain growers were waiting for legislation to fix a legitimate problem the government knew about since it took office. The Liberals came up with a lame phantom version of an air passenger bill of rights that was already developed while they were really just having discussions with the railway on how to institute 24-7 surveillance, so that the railway companies could know about the issues that were being discussed in the workplace between workers who were members of the union and who wanted to file grievances or take up other issues with their employers.

That is how muddled it all gets when things that have absolutely nothing to do with each other are all rammed into the same bill. That is really what is going on with the bill. It is kind of a big tossed salad of different legislative measures, some of which the government probably could have found widespread agreement on and would have been able to advance quickly, and some of which is just sort of a hollow version of previous legislation that the Liberals have no excuse for having taken this long to get around to. Had they adopted more substantive provisions, they probably would have found more widespread agreement.

All of that is going on so that the Liberals can work with certain companies, and in this case I would say particular rail companies, in order to do something that has nothing to do with rail safety and everything to do with employers at the railway being able to put employees under their thumb. It is a travesty.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:05 p.m.
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Conservative

Jim Eglinski Conservative Yellowhead, AB

Mr. Speaker, I was very interested in a lot of what the hon. member had to say. I totally agree with him that 13 acts on three modes of transportation is ridiculous. One would think the Liberals do not care at all about Parliament and just want to ram the bill through. It is absolutely disgusting to see what is happening on such an important matter, whether it is air traffic, rail traffic, or whatever.

The member made some good points on safety. There has been no opportunity for good debate in this place, and that is what we are here for. We are here to talk about the safety of rail transportation, but I am more interested in the safety of the communities the railways go through and the safety of the people working on the railways. We are not being given the opportunity to speak. I will give a quick example and then ask my hon. friend to comment.

In my community, there are supertrains, large trains with grain bins, oil tankers, and containers. They go into small communities from one end of Canada to the other. They block crossings, and people cannot get to and from their communities, cannot get to hospitals, and cannot get to work, sometimes for hours on end, because the trains sit while waiting for another train going east or west. I wonder if the member would comment on that situation. I know it is happening in his and all members' ridings in this country, and it is a danger to Canadians.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:05 p.m.
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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Mr. Speaker, the member is quite right that there is a lot to talk about when it comes to rail safety. The length of trains is certainly part of that. My father, who was in this place before me, has a long record of fighting for trains of appropriate length. It has been a tradition in Canada for trains to get longer and longer. That has an economic impact because for the goods that are not moving by train, it means significant delays. Safety is involved when people are delayed in getting to hospital. It is another example of successive Liberal and Conservative governments just not being willing to stand up to the railways to tell them they are changing their practices in ways that have serious negative effects on communities and they need to stop it, because they can still make money by running shorter trains. No one can tell us that it is not economically viable to run trains of a reasonable length.

Fatigue management is a serious issue. I spoke to that a little earlier. There are issues in my own backyard. In the community of Mission Gardens a new underpass was built and now the railway has unilaterally decided that it is going to start marshalling trains on the main line between the shops and the yards, which it never used to do. People who have lived in the community for 30 or 40 years are now saying they have cracked windows, cracks in their foundations, diesel fumes in their homes, pictures are falling of walls, and the government is not willing to tell the railway that it cannot make those kinds of unilateral decisions. Communities should not be forced to bear the consequences of the decisions that railways make in their own economic self-interest without regard to what is going on in communities.

It is high time we had a government in this country that is willing to play tough with the railways and let them know they are not the only ones using the land in Canada. People live by their tracks and the railways have to respect them.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Conservative

Todd Doherty Conservative Cariboo—Prince George, BC

Mr. Speaker, having formerly been in the transportation industry for over 22 years, I have a lot of questions regarding Bill C-49. On the airline part of the bill, the bill does not specify what the compensation levels for passengers would be under the passenger bill of rights, and that causes concern.

There is something I have not seen in the bill, which I would like to ask my colleague about. Just a week ago, we were debating the Liberals' legalization of cannabis and I spoke at length about my concern of how that is going to impact the transportation sector. Bill C-49, the transportation modernization act, is an omnibus bill and I have not seen anything with respect to drug use, drug policy, and specifically cannabis addressed. I am wondering if my hon. colleague could comment.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Mr. Speaker, I have a two-point answer.

On the first issue he raised, one of the virtues of the legislation that the NDP proposed on an air passenger bill of rights was that it would stipulate what the penalty would be, that passengers who had their flights cancelled or could not get on their plane would be entitled to a full refund, and if the airline was not compliant, it would be a $1,000 penalty to passengers on top of the full refund. There are ways of doing this, which the Liberals who are now in government supported in the past, but they have simply decided not to include them.

He raises a fair point in saying that there are a lot of other moving pieces when it comes to government legislation. One of the virtues of giving time to study them is to ask those questions about how interrelated issues are addressed in difference pieces of legislation. If we had more time, then we could get into those kinds of questions in greater detail. As it is, I have not even talked about any of the shipping provisions in the bill.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

Is the House ready for the question?

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Some hon. members

Question.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Some hon. members

Agreed.

No.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

All those in favour of the motion will please say yea.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Some hon. members

Yea.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

All those opposed will please say nay.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Some hon. members

Nay.

Transportation Modernization ActGovernment Orders

June 16th, 2017 / 1:10 p.m.
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Conservative

The Deputy Speaker Conservative Bruce Stanton

In my opinion, they yeas have it.

And five or more members having risen.

Pursuant to order made on Tuesday, May 30, the recorded division stands deferred until Monday, June 19, at the expiry of the time provided for oral questions.