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.

[Sara Wiebe]

This is where I mentioned that with Air Canada we keep an open and ongoing dialogue on a wide series of policy issues, including official languages. What we try to do—and I think you see some of this reflected in the proposal the minister has made in Bill C-49—is identify those policy issues that could continue to ensure the strong viability of our Canadian carriers, including Air Canada. This is where we look at issues such as joint ventures, and where we take a look at other issues such as international ownership.

We're constantly looking at measures to make sure that we strengthen the existing carriers while continuing to ensure competition. In that way, we try to create that broader framework within all of our air carriers, including Air Canada, so that they can continue to grow and prosper and to serve Canadians well.

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.

Alleged Premature Disclosure of Contents of Bill C-49

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

Mr. Speaker, I am rising on a question of privilege concerning the leak 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, which was introduced yesterday. It has become an established practice in the House that when a bill is on notice for introduction, the House has the first right to know the contents of that legislation.

As Speaker Milliken explained on March 19, 2001, at page 1840 of the Debates:

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. Once a bill has been placed on notice, whether it has been presented in a different form to a different session of parliament has no bearing and the bill is considered a new matter. The convention of the confidentiality of bills on notice is necessary, not only so that members themselves may be well informed, but also because of the pre-eminent rule which the House plays and must play in the legislative affairs of the nation.

The required confidentiality expected before the unveiling of this bill was simply not respected due to the government's so-called pre-positioning for Bill C-49 earlier this week.

Allow me to explain.

First, for context, all the information the House had when a notice for the bill was tabled Friday afternoon was that it would bear the long title, “An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts”. Considering the wide scope of the activities of Transport Canada, a title like this one could be used with respect to any mode of transport or any type of activity the department undertakes. However, despite the ambiguous bill title, yesterday's Toronto Star revealed that this legislation would be called the “Transportation Modernization Act” and reported many of the bill's details. That short title, set out in clause 1, only became known to us once the bill was tabled, well after yesterday's Toronto Star had gone to print.

Furthermore, the CBC website, on Monday evening, stated, “The...government will introduce legislation for a passenger bill of rights Tuesday in a move that will set a national standard for how airline passengers are treated in Canada”. The bill's summary reads, on page 2:

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.

CTV National News offered more information to its viewers on this legislation during its broadcast Monday night. It stated, “CTV News has learned the government will mandate minimum levels of reimbursement for travel disruptions and lost luggage.” I was watching the news at the time and was extremely surprised to see such detail being made public for a bill that had not yet been made public in Parliament. Later in the same CTV report, I heard, “Under the bill Transport Minister...will table tomorrow, airlines would provide clear and transparent rules so passengers know when they're entitled to compensation; airlines would compensate travellers for flights delayed or cancelled, though not for weather or air traffic...”

Turning to clause 19 of Bill C-49, we see that CTV News was reporting on the proposed new paragraphs 86.11(1)(a),(b), and (c) of the bill.

Meanwhile, on CBC's The National, viewers were told, “CBC News has learned the legislation is also expected to stop airlines from charging parents extra to sit with their kids.” In this case, CBC was reporting on the proposed new paragraph 86.11(1)(d) from the bill, which says, “respecting the carrier’s obligation to facilitate the assignment of seats to children under the age of 14 years in close proximity to a parent, guardian or tutor at no additional cost.” This is specific detail of the legislation that could not have been guessed at ahead of time by the CBC. Details of the bill were clearly leaked.

Furthermore, the CBC report noted “don't expect exact compensation levels tomorrow. They won't be written into the law.”

If you were watching CTV Monday night, Mr. Speaker, you would have known that “The exact rates for compensation under the new rules will be set at a later date by the Canadian Transportation Agency and reviewed regularly.”

This was in reference to the proposed new subsection 86.11(1) of the bill, which reads, “The Agency shall, after consulting with the Minister, make regulations in relation to flights to, from and within Canada, including connecting flights.”

It is clear this was no simple, accidental leak, though that would also be inexcusable, but, rather, this appears to be the result of a systemic advance briefing of the media about pending legislation as there would be no other way for them to know such specific detail about the bill. Details such as airlines not being able to charge extra for parents to sit next to their children, or that the fines would not be detailed in the bill, or that airlines would be forced to compensate travellers for delays and missed flights could only be known by the media as a result of a leak.

As the Conservative Party critic for transport, I cannot hold the government to account if I learn about the content of the legislation through the news and not through Parliament. That is why this is so important.

As Speaker Milliken said in the ruling I cited earlier:

To deny to Members information concerning business that is about to come before the House, while at the same time providing such information to media that will likely be questioning Members about that business, is a situation that the Chair cannot condone.

Speaker Milliken also found a prima facie case of privilege in connection with advance leaks to the media about a bill to be introduced, on page 6085 of the Debates for October 15, 2001.

Indeed, Mr. Speaker, you also had occasion to find a prima facie case of privilege last year, on April 19, 2016, on the premature disclosure of the contents of Bill C-14, the assisted dying bill. On page 2443 of Debates, the Chair stated:

In this instance, the chair must conclude that the House's right of first access to legislative information was not respected. The chair appreciates the chief government whip's assertion that no one in the government was authorized to publicly release the specific details of the bill before its introduction. Still, it did happen, and these kinds of incidents cause grave concern among hon. members. I believe it is a good reason why extra care should be taken to ensure that matters that ought properly to be brought to the House first do not in any way get out in the public domain prematurely.

Thus, the available precedents lead me to conclude that this incident constitutes a prima facie question of privilege...

The House considered and passed a motion to refer that matter to the procedure and House affairs committee, which has yet to report on the situation. I understand it was last considered in September, when the Liberal majority voted down a number of motions intended to allow the committee's investigation to continue.

It is incumbent upon us, as the opposition, to call out the government for these abuses of Parliament, and to place before the Chair any perceived breaches of the privileges of the House of Commons, since you, Mr. Speaker, are the defender of the rights and privileges of the House.

Based on the facts I have presented, and the clear precedents on this matter, I believe you should have no trouble in finding a prima facie case of privilege.

[Bob Masterson]

Today, in the U.S. Senate there was a bill introduced that would provide significant federal support to create the infrastructure in Pennsylvania to store the natural gas liquids that are abundantly available to facilitate the processing of that industry, so you have a partnership approach. It's not just financial. There's a true partnership approach to try to intentionally develop the chemistry sector in states like Pennsylvania, Louisiana, and Texas.

Here, to be honest, it's more of a laissez-faire approach. If the investment comes, fine; if it doesn't, fine. That will hurt us in the long term if we don't get more aggressive and try to figure out what we need to do to recruit that investment. I think today's introduction of Bill C-49 takes a number of important steps that will improve transportation competitiveness in Canada. That's a good step in the right direction. Many of our investing companies tell us the cost of transportation in Canada is the second most important factor they look at when deciding whether to invest.

Transportation Modernization Act

[Marc Garneau, Liberal, Minister of Transport]

moved for leave to introduce 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.

(Motions deemed adopted, bill read the first time and printed)