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.

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 begin debate on Bill C-76, the elections modernization act. This debate will continue tomorrow, and the following week will be a constituency week.

However, if we receive a message from the Senate this afternoon about Bill C-49, the transportation modernization act, this bill will get priority.

Upon our return following the constituency week, we will resume debate on Bill C-76 on Tuesday.

On Wednesday, we will start debate at report stage and third reading of Bill C-57, an act to amend the Federal Sustainable Development Act.

On Thursday, we will begin debate on Bill C-75, the justice modernization act.

Finally, pursuant to Standing Order 81(4), I would like to designate Tuesday, May 22, for consideration in committee of the whole of the main estimates for the Department of Finance, and Thursday, May 24, for the Department of Citizenship and Immigration.

Rail Transportation

[Adam Vaughan, Liberal, Parliamentary Secretary to the Minister of Families]

Madam Speaker, our government understands the challenges faced by our farmers every day. We are committed to ensuring that they have access to freight rail systems that effectively move their goods to market. That is why we introduced Bill C- 49, the transportation modernization act, which would put in place the right conditions, over the long term, for a safe, efficient, effective, and transparent freight rail system, which would benefit all rail users right across the country.

We are delighted that this bill, which both the member opposite and I voted for today, would provide robust, long-term solutions for many of the challenges facing our freight rail transportation system and its users. It would provide for enhanced accountability through reciprocal financial penalties between shippers and railways. It would improve transparency through increased reporting from railways, and it would provide captive shippers with a way of accessing an alternate rail carrier through long-haul interswitching. It would encourage investments in hopper cars through changes to the maximum revenue entitlement process, which would be retained for the benefit of the grain sector. In short, it would help avoid the kind of situation we are witnessing now. It would also provide the Canadian Transportation Agency with the powers it needs to investigate systemic issues of its own motion.

We understand that rail service this year has not lived up to expectations, both for grain and other commodities. That is why our government continues to work with railways to ensure that they are taking the necessary steps to improve service and to move grain and other commodities to market. Railways have provided us with their plans for relieving the backlog, and we will continue to keep a watchful eye on their performance to ensure that these plans have the desired effect.

What our government has not done is introduce a short-term approach, like minimum grain volume requirements, which could risk negative consequences for farmers, grain shippers, and shippers of other commodities. Minimum grain volumes could result in preferential treatment of some corridors, even within the grain sector. As a result, they are not a silver bullet. Their benefits are not felt evenly, and they can have real implications for shippers in the grain sector and for other commodities.

As to the particular question the member opposite raised about nationalizing the rail system, I am pretty certain that this is not in our government's forecast in terms of potential legislation that may be introduced. However, I will note that in the city I come from, one of the greatest inhibitors of stronger passenger rail movement is the conflict between rail that is carrying cargo and passenger movement, in particular commuters in the GTA.

There is a missing segment of the rail lines between Sudbury and Ottawa and down towards the east coast, which was given away and abandoned by rail companies. If used properly, it could reroute some of that cargo and free up rail capacity for commuters, which would take cars off the road. Switching away from cargo on the rail and getting passengers is one priority, but the other option is to make sure that other commodities that can move by different methods do not plug up the rail system as well.

Therefore, realigning, reassessing, and recommitting ourselves to a long-term rail strategy in this country is one of our government's priorities. The member can see that in budget 2018, with the significant investment we have made in modernizing VIA to get it back into a position where it can start to grow its customer base and move people more effectively, and in environmentally clever ways, so that we can make our strategic investments in infrastructure and also reduce greenhouse gases.

As for grain, I am glad that the bill has come through the vote today. It is progress. We continue to move forward to make sure that grain shippers get the service they need from this government.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, it is an honour to rise tonight at adjournment proceedings to pursue a question I asked. I am really pleased to bring it up when not too much time has passed since the question was raised. It was toward the end of March this year, when we were seeing Prairie grain shipments almost at a standstill when the shippers, CN and CP, were unable to bring forward enough railcars to move the grain. It was of crisis proportions, but it was not the first time this had happened.

I will briefly review the question I asked, which was to point out that millions of tons of grain were stuck on Prairie farms and in grain elevators. However, it was connected to a problem we were also experiencing on the coast of British Columbia, where freighters and container ships waiting to pick up that grain in the port of Vancouver were backed up and using the waters of the Salish Sea essentially as a free parking lot. The port of Vancouver was backed up, so as the container ships were waiting to go in and out of the port of Vancouver, which could each have three and four different containers within them, they would go back to collect grain and then go back to sit off Plumper Sound in the Salish Sea in my riding waiting to know if the grain had been delivered.

The knock-on effects of poor service by CN and CP are real pain and economic trouble for the Prairie grain farmers, an inefficient port of Vancouver, and a significant cost in quality of life to people living in Saanich—Gulf Islands and Nanaimo—Ladysmith, where these container ships were sitting off of Gabriola Island.

Members will be surprised to know that these anchorages for container ships off Saanich—Gulf Islands and Nanaimo—Ladysmith are available legally, but in that sense are largely unregulated, and there are no fees paid for sitting in the waters off Ganges, Plumper Sound, or Pender Island.

These enormous factory ships often have lights on through the night. I have talked to constituents who said that after they turn off all the lights in their house, they can still read a book because of the lights from the ships stuck there waiting.

It is a real cost in quality of life that we do not have an efficient rail service to deliver grain on time. It costs money to the shippers, the farmers, and those buying the grain. There needs to be a whole-of-government approach. A the t least, Transport Canada needs to start figuring out how we make sure we move goods quickly and effectively. Perhaps through a computerized system, the port of Vancouver could tell the grain farmers when to move the grain.

By the way, we used to have a better system when we had the Wheat Board. The Wheat Board did a better job in synchronizing shipments, and this problem did not come up. However, we had a crisis in 2014. On Vancouver Island, we were two days away from livestock operations not being able to get any feed because none of the mills that process the grain into livestock feed had any grain. The farmers had to band together and hire trucks. Again it was a big cost and poor service.

I know that Bill C-49, which we just voted on in the House, would help. There would be penalties for the shippers. From 1918 until 1995, this railway was a crown corporation, and it worked much better. What do we do to get goods moving in this country? Do we need to make it a crown corporation again?

Transportation Modernization Act

[Sean Fraser, Liberal, Central Nova, NS]

Mr. Speaker, we have spent a great deal of time on questions in this debate about the role of Bill C-30 versus the long-haul interswitching included in Bill C-49. Bill C-30 provided a short-term solution to respond to an immediate need, but it did not solve the long-term problem of the transportation of western Canadian grain. It also did not provide any solution for the rest of the country in different industries and different regions.

Although I lived in Alberta for about five years, I am proudly Nova Scotian. I am curious if the hon. member could offer some thoughts on the importance of extending efficiencies in our transportation system to different sectors of the economy and to different regions, to make sure that our transportation system works for everyone and brings the greatest growth to the Canadian economy.

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

Mr. Speaker, what a privilege it is to stand in my place today to talk about a fantastic piece of legislation.

I thought the minister really paid tribute to a lot of the fine work that was done, from first reading of the legislation to second reading debate to the standing committee debate, listening to what had taken place in the standing committees, then coming back to the House and going to the Senate, which has proposed amendments. I highlight that for a couple of reasons.

First and foremost, let us acknowledge that when the legislation was brought in, it was long overdue. The minister has taken the approach of making fairly comprehensive changes to our transportation industry. He recognizes how valuable that industry is to our country. The fact that he invited and welcomed input and in many ways accepted many different changes speaks volumes with respect to the degree in which the minister, working with cabinet and all members of this chamber, has seen this legislation get to where it is today. This is positive legislation.

When I was on the opposition benches, we would talk about government legislation and how the Harper government was never really open to opposition ideas when the legislation came before a standing committee. In this case, the members of the standing committee worked exceptionally well together. They came together on a number of different ideas, some Conservative, some the Liberal, some New Democrat. These individuals were prepared to put their party politics aside to try to improve the legislation. As a direct result, many amendments were passed, virtually through a consensus that was quickly evolving. From what I understand, originators of some of those amendments crossed party lines.

It then went to the Senate. As the minister mentioned, the Senate scrutinized the bill quite extensively. The senators met with many different stakeholders and came up with a series of amendments. The minister and the department, after doing some further consultations with others, decided the government was prepared to accept some amendments in order to further advance Bill C-49. A very open and transparent process has led us to what we are debating today.

I was provided some quotes to reinforce what I just said. If we look to the Grain Growers of Canada, grain farmers from across Canada are praising the decision by the Minister of Transport to accept the recommendations and amendments put forward with respect to Bill C-49, the transportation modernization act announced on April 27. It says that the decision demonstrates the government is listening to farmers in their calls for a balanced and accountable rail transport system.

Mr. Nielsen of the Grain Growers of Canada said:

We need the legislation in place well in advance of August 1, 2018 to ensure hard working middle class farmers don’t have to suffer through another grain shipping season with terrible rail service...“Accepting these amendments demonstrates that [the ministers of agriculture and transport] are working for the growth of the rural economy. Bill C-49 is key to the long term success of my industry and key to reaching the goal of $75 billion in agri-food exports by 2025. We urge parliament to pass it now.”

The fine work parliamentarians have done in both Houses has been recognized, but we are now being called upon to pass the legislation.

There are a number of things we have talked a great deal about. In listening to the debate today and at second reading, there is a very interesting and important point. I use this as an example. We hear a lot about air passengers and the grain industry, which I will provide comments on shortly. However, I always thought there was something quite interesting within the legislation that I have not really heard, and it was just recently pointed out to me. It comes from the Transportation Safety Board, where an idea has been talked about, a recommendation, for years now. I would have thought this was something that could and should have been acted on relatively quickly. The idea is to have cameras in locomotives. It is very much a safety issue. Even though we spend a lot of time listening to the debate and comments from across the way, whether it is now or at second reading, I cannot recall hearing that particular comment.

The bill is a fairly significant change from what we have had in the past. We would have to go many years before we would see the types of changes we have seen in this legislation. We have a minister, working with others, who has really advanced a major piece of legislation that is going to a profound positive impact on several sectors, on passengers, shippers, farmers, the rail industry as a whole. These are significant changes. We have a minister who has been able to pull all this together in a relatively short period of time.

I remember sitting in the opposition benches, and this is something I have made reference to in the past, and asking Stephen Harper directly about the piles of grain on the Prairies. The grain was not in storage bins. It was in the fields. There was the threat that some of that grain was starting to rot, while in the Pacific Ocean there were ships anchored and unable to come into port to be loaded because the grain was not at the port. The grain could not be exported.

Canada is a trading nation. We need trade. Trade is what allows us to grow our middle class, fuel our economy, and provide the types of jobs that are so very important. When we think of the example I raised back then, we get a sense of the frustration. Imagine the frustration for farmers, whose crops are literally sitting in the fields and they want to get it to market.

I am listening to the debate this morning, and Conservative members have a great deal of criticism toward this legislation. They were in government for many years and had the opportunity to bring forward this kind of legislation. They had many years to do it, but it has taken this government to ultimately get the job done. Now, it is not complete yet, and we very much appreciate all the fine work that has been done by members of all political entities in the House and the Senate.

We also recognize and acknowledge the immense amount of work done by the stakeholders. It is the stakeholders who continued to lobby year after year for the types of changes we are witnessing today. That is why people should not be surprised at the pressure on all of us to get this piece of legislation passed.

There is another interesting quote that was provided to me. I will mention this because I come from the Prairies and we are talking about the importance of wheat. The following is a quote from the Alberta Wheat Commission and Alberta Barley:

The Alberta Wheat Commission (AWC) and Alberta Barley say that [the] Federal Transport Minister[...]’s move to endorse key amendments to Bill C-49 in the House of Commons, as recommended by the Commissions, is good news for farmers.

They go on to say:

“We see the news from [the] Minister...as an excellent show of support for the agriculture industry and for farmers,” said Kevin Bender, AWC Chair. “

This is why it is so important that we advance this legislation.

I will give a real example of the type of frustration farmers have. Let us imagine a farmer has a contract with the rail company, and the farmer says he will deliver x amount of wheat on x date to the rail line. If that farmer does not fulfill the contract as he had committed to the rail line, the rail line could take action against the farmer, such as fines and so forth. The farmer would suffer penalties. That is the way it is and the way it was, yet it was never reciprocal. The farmer felt helpless. What about the railway company? If the farmer delivers the product on time to where it is supposed to be, should there not be any sort of obligation for the rail line? This legislation actually takes that into consideration so that it would be reciprocal. Not only would the rail line ensure more accountability for farmers, but, for the first time, it would be reciprocal, and farmers could look for some sort of justice if the rail line does not meet its obligation.

We can call it prairie frustration, but I want to ensure that products coming from the prairie provinces get to market. The same principle would apply for all regions of our country, but right now I am focused in particular on prairie farmers, because our wheat needs to get to market. We want rail line companies to work with us.

I was very happy when the Minister of Transport made the calls necessary to move additional grain. It was the Minister of Agriculture, working with the Minister of Transport, who corresponded with the rail lines to try to get more grain cars to the Prairies and out to our markets. It has improved a great deal over the last number of weeks, but there are a lot of advocacy groups and individual farmers who are still very much concerned about getting their product on the rails. It is not as though there is that much of a choice.

Winnipeg North, the area I represent, probably has the highest number of long-haul truck drivers and trucks per capita. Commodities can only go so far by long-haul trucking. We need an effective, efficient rail line, a rail line that is going to be accountable to producers and manufacturers. Whether it is a widget or a commodity, we need to be able to get them to market. We are talking about billions of dollars and millions of jobs which are affected by our transportation industry. That is why it is so critically important.

I want to also provide some comments in regard to our airline industry. Members of Parliament do a great deal of travelling. A number of us share some of the concerns that we hear from our constituents on a fairly regular basis, some of the frustrations that they face.

People can be on a flight scheduled for five o'clock and after they board the plane, the plane sits on the tarmac for what seems to be an endless amount of time. There are no requirements for the airline to serve its passengers. If passengers are left waiting on the tarmac for an extended period of time, one would like to think that some basics, such as water or food, would be available to them, but there is no guarantee of that. That is absolutely critical.

If members of Parliament were asked what kind of problems they have encountered, we would hear things such as sitting on the tarmac and lost luggage, which is fairly common. What about passengers who arrive at the airport to find that their flight has been cancelled? What about overbooking? All of these things take place and every airline has a different procedure to follow. This legislation takes a unifying approach. Every airline would be obligated to do certain things with respect to those situations I have mentioned.

Consultation does not stop there. If we pass this legislation, the regulations will follow. It is through those regulations that we will get the details as to what the consequences will be. This is something all of our constituents want to see.

I debated a bill on air passenger rights when I was in opposition. All of us are very sympathetic to this issue. We want to see this advance. It would be great to have more details, and a lot of those details will come in the form of regulations. Those regulations will be worked on proactively. The purpose of the legislation is to establish a framework that would provide good regulations. Our constituents have been calling for this for many years. They want some protection against the airlines.

That is the reason I started off by saying that this is a great piece of legislation. It is comprehensive. Those that were involved in putting it together, the average Canadian, stakeholders, members of Parliament, senators, staff within the minister's office, have come together to provide a comprehensive piece of legislation. Now we are at the final stages.

It is a good day when we see this kind of legislation move forward.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, I want to thank our shadow minister for transportation for all the incredible work she has done on what is an ominous and very difficult bill to try to wade through.

She is exactly right. We cannot underestimate the financial impact of inaction on Bill C-49. We went through this in 2013-14 and the impact on the Canadian economy was in excess of $8 billion. That is why we put forward Bill C-30 to ensure we would never have those types of issues again.

We are certainly hearing from our stakeholders that this has not only impacted this year's harvest, but will very likely impact next year's harvest. They have nowhere to store their product. Their bins are full now. Until things start moving, there is not going to be anywhere to store their products.

Nutrien in Saskatchewan has shut down an entire potash mine because it cannot move product. There is no demand for those inputs because farmers are at a loss as to what to plant this year, or if they will be able to plant. They have full bins and road bans are in place. This has caused such stress among our agriculture sector. I really want to highlight the fact that the implication this has had is not simply a matter of frustration. It has really impacted people on the ground and their families.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, this will be wait and see. I am going to challenge my colleague. If we have another larger than average harvest this fall, I would like to see if Bill C-49 does what she says it will do. I do not think it will. Our stakeholders have raised the alarm bells on that.

She spoke about some of the submissions. They were not saying that they were necessarily satisfied with Bill C-49. Their message is to get this through and let us move on. I think they understand, just as we do, that to say Bill C-49 will be the solution to everything is disingenuous.

She should really talk to her Minister of Transportation and Minister of Agriculture who admitted in the last two weeks that Bill C-49 would not address all of the issues that had been brought forward.

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

Mr. Speaker, I would like to reassure the member that Bill C-49 really is about a long-term, sustainable solution that will actually provide the kind of predictability needed for us to grow a more prosperous future. Getting that long-term solution did take a little longer, but I think it will pay off in the end.

The Agricultural Producers Association of Saskatchewan, Alberta Wheat Commission, Alberta Barley, Grain Growers of Canada, and I have more pages, are happy with what Bill C-49 manages to accomplish. We just need to work together to get it passed.

[John Barlow, Conservative, Foothills, AB]

Mr. Speaker, it is pleasure to rise today and speak to Bill C-49 and the motion put forward by the government.

The message I want to get forward today is really about what brought us here and whether Canadian agriculture had to go through all this pain and suffering when we really did not achieve much at the end. What is disingenuous with the entire process is that over the last several months the Minister of Transport and the Minister of Agriculture were telling our producers, stakeholders, and shippers to hang on and be patient, that once Bill C-49 was passed it was going to resolve all of their problems and we would not have a grain backlog in the future.

I am going to speak more on the agriculture side than I will on some of the other elements of Bill C-49.

The inaction by the ministers and the government on this issue for almost a year has been mind-boggling. Last June my colleague, the shadow minister for transportation, put forward a list of amendments that would have addressed many of these problems we are facing, but they were turned down. Now we have them back on the table from the Senate. They went through the Standing Committee on Transport, Infrastructure and Communities and again through the Senate. Now they are here, and the Liberal government is saying it will be supporting a number of those amendments. I am not sure what changed over those 10 months; the Liberals could have supported those amendments last June, but they did not.

It was the start of time after time when the Liberals were given numerous options to get Bill C-49 through the process as quickly as possible, as well as to address many of the problems that our grain farmers across western Canada have been facing. Every time the Liberals were given an option to address the situation, which became a crisis in January and February, they did nothing.

Last summer, we encouraged the government to extend the provisions of Bill C-30, the Fair Rail for Grain Farmers Act, which extended interswitching and mandatory minimum volumes, a process that we had in place in 2013-14 when we went through the previous grain backlog. This addressed many of those problems. Our stakeholders, producers, grain terminals, and shippers were satisfied. They were quite pleased with that process. It gave the rail lines some accountability to ensure that they were able to move grain as well as other products, whether it was lumber, mining, or oil and gas. We want to make sure that all our producers have an opportunity to get their commodities to market.

In the fall, when Bill C-49 was first brought to the House, we saw that it was a massive document and that it was going to be extremely difficult to get any sort of consensus on a bill that dealt with everything from video recorders and locomotives to an air passenger bill of rights to interswitching. How were we possibly going to be able to find some sort of satisfaction among all stakeholders and within all the different points of view in our industries, let alone here in the House of Commons or in the Senate?

At that time we saw that this was going to be an issue. With the size and the scope that Bill C-49 entailed, we knew that getting it through that process with any sort of expediency was going to be nearly impossible. Once again we provided what I thought was a thoughtful resolution to the Liberal government, which was to split Bill C-49 into two bills. We would take many of the aspects of the bill that had to do with grain and grain transportation through the process as quickly as possible. Some of the other contentious issues that had to do with airline rights and other issues would take longer to go through the process, but we knew there was no time crunch or time sensitivity of the kind that there was on the grain side.

Last fall, with a larger-than-average harvest and the challenges CN and CP were facing in terms of meeting the contracts, we saw the rail line numbers dipping with each weekly report that was coming out.

We raised the alarm bells last fall that this was going to be a problem. We encouraged the government to split Bill C-49. I recall being in this House last October making almost the same argument that we were not going to get Bill C-49 through this process in a timely fashion to prevent another grain backlog. Again, it fell on deaf ears.

The result of that inaction last October, before we got to this point, was rail service that put us in a grain crisis. It is a crisis that still exists today. I do not think we can miss that point. Although we are here now, no problem has been resolved. We have road bans across the western provinces. We have more than 30 transport ships off the coast of British Columbia waiting for product. Those demurrage costs of $10,000 a day and up are now being passed on to the producers. Who will pay those additional costs that are now being passed on to our farmers across western Canada?

We have to keep that in mind as we have this discussion and this debate today. The crisis our farmers have been facing since last fall is still there, and it is not going away anytime soon. It is going to impact their fall season. They cannot move grain right now. Many of them are finally in the fields seeding. Road bans are in place in many of the western provinces, inhibiting their ability to actually transport grain to the terminal.

They are watching us today with a lot of focus on the decision we will be making in this House. How are we going to address the problems they are facing? The crisis has become so bad that our most recent report says that almost half a billion dollars' worth of grain is sitting in storage bins across western Canada. That is grain that our producers and our farmers cannot sell. They are unable to sell their product and get it to the terminal and then to the coast.

These same farmers who are unable to sell their product still have bills coming in. There are mortgage payments, lease payments on land, equipment purchases, and input costs as they try to get ready to start seeding. There are programs in place through Farm Credit Canada and the advanced payments program, essential programs that are in place to help in these times of extenuating circumstances.

I know that our producers do not want to have to rely on those assistance programs for a product they work hard all year to plant and harvest and are now trying to sell, but are unable to because of logistics.

As my colleague from Guelph said, we had an emergency meeting of the agriculture committee. I want to commend my colleagues on that committee for agreeing to have that emergency meeting with many of our stakeholders.

One of our witnesses at that meeting was a young farmer from Saskatchewan. I thought he put it quite well. He said, “We have to face so many uncertainties when we are in agriculture: uncertain weather, uncertain input costs, uncertainty when it comes to the commodity prices. The one thing we should be able to rely on is a reliable transportation system, which we do not have right now.”

One of the key issues with Bill C-49 is that it does not resolve those problems. We have gone through this entire process. As I said earlier, the Liberal government, the Minister of Transport, and the Minister of Agriculture and Agri-Food, through this entire process, have said that we should be patient, because Bill C-49 would address all the problems. Then just a few weeks ago, we had both ministers admit publicly that Bill C-49, indeed, will not resolve a lot of the problems that have been raised.

The government is asking our producers to suffer through yet another grain backlog, which should never have happened. The government had all the tools in place to address this problem, yet it did nothing. I can understand the frustration of our producers across the western provinces. They are looking at us today to take action to ensure that they never have to face this sort of issue again.

We have had many of our grain, barley, and pulse growers here over the last couple of weeks as they have had their days on the Hill. They have raised some other points that I do not think we have talked enough about as we have gone through this process. Not only is this grain backlog causing them to suffer because they are not able to sell their product, it is tarnishing our reputation as a reliable trading partner around the world. A lot of our producers are not getting a premium price for their product, because for all intents and purposes, Canada does not have a reputation for being able to get their contracts out in a timely fashion. We cannot meet our commitments to other countries. When prices are high in the fall, in October, November, and December, we should be selling our crops. We are not getting them to market, to the terminals, and to the west coast until the spring, sometimes a year later, so we are missing out on those premium prices, because we have an inept logistical system and an inept transportation system, a transportation system that has very little to no accountability.

Earlier today, the Minister of Transport was talking about one of the amendments the Senate had brought forward, which I think is critical. It is on “own motion powers” for the Canadian Transportation Agency. That was an amendment brought forward at the standing committee for transportation. It was an amendment brought forward by many of our stakeholders. They want accountability for the rail lines. If there are issues, and our stakeholders see issues, the Canadian Transportation Agency, once it receives a complaint, or even if it does not receive a complaint, can take action to try to address some of those key issues. It is a key part of Bill C-49.

The Minister of Transport earlier today spoke very highly about this part of the bill when he said that we are giving the CTA its own motion powers, which will make such a critical difference for our producers. In fact, in the amendment the Liberal government has put forward, there are no own motion powers. It states in the amendment that the authorization goes to the Minister of Transport. He will be the one who decides if the CTA can take action and put forward some guidelines, a template, on what action can be taken.

Let us put that into a perspective that I think all of us in the House today can understand. That is like my parents saying, “You know what, son? You can do whatever you want with your life, as long as it's okay with mum and dad”. That is what the Liberal government's own motion powers are in Bill C-49. Who is going to give that any credence? There is supposed to be some accountability in Bill C-49 for our shippers. However, this only comes into effect if it is okay with the Minister of Transport. It is okay for people to make their own decisions, but they have to ask the minister first. That has nothing to do with own motion powers. It is really quite hollow hearing that this is going to be a critical part of the bill, because it is taking the arms of the CTA and tying them behind its back.

As we have gone through this process, every step of the way we have offered the Liberal government a solution. My colleague, the shadow minister for transportation, has offered another solution today. She has brought forward an amendment that will concurred the Senate amendments to get this bill passed as quickly as possible.

We are not saying that we agree with every aspect of Bill C-49. In fact, I think we have heard in the debate today that there are still some significant issues with the bill. We also listened to our stakeholders. They need something that will give them some piece of mind that there is going to be some sort of legislation in place to help them address some of the problems they are facing.

We have had stakeholders like the CFA. They represent 200,000 farm families. The Grain Growers represent 50,000 active producers, and they are asking for no further delays on Bill C-49. They want it passed immediately. That is what my colleague's motion today will do.

We want to ensure that we can get this bill passed as quickly as possible. Again, every time we have offered an option or a solution to get this bill through the process, the Liberals have put in yet another step and delay.

They are saying today that if they do not support our motion, and they want our support to pass their amendments and the minister's motion, this all of a sudden will be a quick process. That is simply not the case. If the Liberals do not accept our motion and they pass theirs, Bill C-49 will go back to the Senate, and the Senate will have to agree to the Liberals' amendments. It is yet another obstacle to keep Bill C-49 from passing. This is going to be a ping-pong ball that will go back and forth, or maybe not. Maybe the Senate will agree to the Liberal amendments, but we do not have any assurance of that.

There are amendments they could have passed almost a year ago. There have been opportunities put forward to pass Bill C-49, or, what preferably would have been the case last fall, to extend Bill C-30, and we would never have faced any of these issues.

I am really encouraging our colleagues across the floor to support our motion today, pass the Senate amendments, go right to royal assent, and give our stakeholders the assurances they are looking for to ensure that they can get their job done. What this comes down to is our stakeholders' inability to get their products to market. We have a great deal of concern that this will spill into the fall as farmers get ready for next year's harvest. That has been the disconcerting part of it all.

I think my colleague across the way can understand the comments we heard at our emergency meeting last month on the grain backlog. Many of those witnesses came forward and said that they have given up on it this year. They know that they are not going to get their grain to market and are hoping that this does not impact next year's harvest and next year's shipping season.

I want to highlight that this bill is certainly not perfect. There are lots of concerns about what is in Bill C-49. I want to read some comments from the Premier of Saskatchewan, who has been extremely vocal in his concern about Bill C-49 and the problems it has caused in Saskatchewan. We have seen that Nutrien has just announced that it has laid off or is laying off more than 600 employees, which is going to impact maybe up to 1,300 employees in rural Saskatchewan. The Saskatchewan Premier said, “This is a direct result of the federal government not taking action where there is a huge problem, and they have the clear authority to fix it.”

What have the Liberals done in response to that? They have done nothing. Once again, they want to put this bill back to the Senate, which would delay this process even further.

We have to highlight the financial impact these delays have had. Again, $500 million in grain is sitting in storage bins across western Canada, not getting to market. We have now seen the job layoffs in Saskatchewan at Nutrien, and that is just one company, one potash company. Certainly there will be others that will be facing similar problems.

This is having implications for rural communities. If farmers cannot sell their grain, and they cannot get it to market, it means they do not have money in their pockets to spend in our small communities. That is grocery stores, gas stations, and little movie theatres. That is charities, ball teams, and fundraisers. Those are the things that are suffering because our farmers do not have money in their pockets. They cannot get their grain to market, and that is a direct result of the inaction of the Liberal government when it comes to this grain backlog.

The Liberals could have stopped it a year ago. They could have stopped it in the fall. They could have taken action with an order in council in January or February. Every single time, they have stuck up for the rail duopoly.

With Bill C-49, there is no accountability. Why have the Liberals made our grain farmers suffer through yet another grain backlog? When it comes down to it, they have really done nothing.

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

Mr. Speaker, I thank my colleague for her kind words. I agree that the work in committee was collaborative. Why can this collaboration not continue?

My second issue is with her comment that their approach to the passenger bill of rights or the proposal is in alignment with the European model, which, as I said earlier, serves as a model for a number of legislative measures. We all agree. Why not include it, then? Why prolong the suspense, why drag things out, when hundreds of thousands of passengers are waiting for clear rules across the board? The government could have drawn upon these rules, or even amended them to reflect the Canadian reality. We are stuck in a vacuum with Bill C-49. The government wants to start consultations when everyone seems to agree that the European model is the one to follow.

Could the government pick up the pace and introduce an actual bill of rights?

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

Mr. Speaker, I would like to begin by thanking my hon. colleague for all his work on this issue. The work was done in a very collaborative way, and we appreciate that.

I want to reassure him that the approach we have undertaken with respect to the passenger bill of rights is in alignment with the European approach, in that Bill C-49 is the legislative framework for the passenger bill of rights and is equal to the European treaty article 79(2), which is the European legislative framework. Out of that flows the regulatory work, which in the European model is derived into flight compensation regulation 261/2004. Right now this is the legislative piece, and the regulatory piece will follow.

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

Mr. Speaker, I would qualify that by saying that Bill C-49 will ultimately address a number of issues that have been facing farmers for months now. I would like to add that we are extremely sensitive to that and remind my hon. colleague that we proposed taking action much sooner to prevent these problems from happening in the first place, to ensure that the measures set out by the previous government would be extended beyond August 1, 2017, and finally, to ensure that the measures dealing with transporting western grain would be separated out of Bill C-49 so that they could be incorporated into the rest of the procedures as quickly as possible. I realize that we both share the same concern. I would advise my colleague to initiate a serious discussion within his own caucus to ask why they refused to fast-track that process.

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, Bill C-49 is an important piece of legislation, important enough that amendments were put forward by both the official opposition and the NDP at committee. These amendments were rejected by the Liberal majority on committee. The bill went back to the Senate, and the Senate came back with almost exactly the same amendments. I think that is a reflection of what Canadians would like to see in this legislation.

My hon. colleague spoke about these amendments. Why does he think that the Liberal government is not accepting the amendments that were made not just by the opposition and the NDP but by the chamber of sober second thought, the Senate?

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

Mr. Speaker, I thank my colleague for his question.

Although we often disagree, I must say that I really enjoy working with all members of the Standing Committee on Transport, Infrastructure and Communities. The simple answer to his question is no.

I must once again point out the irony of the fact that, although my Liberal colleagues seem to have very specific opinions on what the passengers' bill of rights should contain and why, they are refusing to include those measures in Bill C-49. It seems to me that they are talking out of both sides of their mouths if they refuse to budge on their proposal. Once again, we can compare this to the bills of rights in other countries and on other continents in order to compare apples to apples and ensure that a concrete plan is proposed rather than conducting yet another study.

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

Mr. Speaker, as I rise to speak to Bill C-49, I cannot look past the magnificent bouquet of flowers and the hockey jersey that I see in front me, a painful reminder that a member of our family has left us far too soon. I would personally like to extend my heartfelt condolences to his wife and their entire family. I take solace in knowing that their Conservative family will rally around them to provide comfort and support.

On another topic, it goes without saying that yesterday's sad news eclipsed an event that is a little more positive. Yesterday was the seventh anniversary of all the members elected to the House for the first time on May 2, 2011. I wish each and every one of them a happy anniversary. I would once again like to thank the people of Trois-Rivières who have placed their trust in me since then. I want them to know that in everything I do, and not just here in the House, I am always thinking about how I can do them proud and live up to their expectations.

I will now turn to the subject at hand, the debate on Bill C-49 that got off to a very strange start. The minister said it is not an omnibus bill because, for the most part, it is about just one act. However, there is so much going on in this bill that it is not at all clear how any of this can be rushed through. I do not think the word “rush” even applies in this case because we have been working on it and waiting on some of this legislation for two years now. For example, what of the air passengers' bill of rights that the NDP introduced in the previous Parliament? It was not a bill to study ways to create or implement regulations that could someday be included in a bill of rights. The NDP introduced a bill that contained a bill of rights with answers to all of the usual questions on the subject. At the time, the Liberals voted in favour of the NDP bill, even acknowledging the relevance of what we had done. Why reinvent the wheel when the MP became Minister of Transport in this government? That makes no sense. As I said earlier, there is an expression about biting off more than one can chew that seems very fitting in this case. What we are seeing here is an excellent example of that.

We have made tremendous efforts to speed up the process, because we know that there are many stakeholders in the various sectors affected by Bill C-49 who are waiting for a problematic situation to be resolved or a new procedure to be recommended.

To speed things up, the Standing Committee on Transport agreed to hold an intensive series of meetings in early September, a full week before the House of Commons reconvened. This morning, we agreed to cut our debate short so that we can proceed to a vote as quickly as possible at noon and give Bill C-49 the best possible chance of getting off the ground and solving some problems.

We could have done a much better job in a much shorter timeframe had the bill been split from the outset, when all the parties agreed on the grain transport measures. We could have dealt with that side of things quickly, taken appropriate measures, and prevented a great many farmers from being adversely affected by long, legislative delays.

However, the government's bills have a habit of favouring big corporations' bottom lines over workers' rights and consumers' best interests. Bill C-49 is no exception, hence the lack of meaningful protections for air passengers, its dubious worker surveillance measures, and the powers it grants the Commissioner of Competition.

Those are the main thrusts of my presentation; they are a clear indication of how we will be voting. Members will have no doubt understood. It goes without saying that the NDP has always fought for the interests of consumers and workers and that any bill that fails to defend those interests may not meet with its approval.

I am going to discuss Bill C-49 by putting its various elements into four main groups because I only have about twenty minutes to go over this bill, and a couple of them have already gone by.

With regard to grain transportation by rail, as I was saying, although the measures are late in coming, we should not reject everything outright, far from it. I am referring to the main measures concerning grain transportation.

Grain producers following the debate have experienced economic uncertainty since August 1, 2017, upon the expiry of measures meant to help producers and shippers negotiate better shipping rates.

We had already proposed not only that the bill be split, but also that we bring back the temporary measures created by the previous government while waiting for Bill C-49 to cross the finish line. That was rejected.

In the absence of safeguards to improve competition, producers must accept the rates imposed by two railway companies, Canadian National and Canadian Pacific. Some might think that with two railroads there would be competition, everything would be going well, and that producers could find the best deal for the services they want. However, everyone knows very well that we are dealing with a duopoly. That is why the NDP twice proposed that the bill be split. I will move on because I have already spoken enough about that and time is flying by.

Although we voted against omnibus Bill C-49, we have always supported measures that affect the rail transportation of grain. We support the Senate's amendments on this issue and many others. We do so for the sake of consistency. Strangely enough, many of the amendments proposed in the Senate were almost exactly the same, give or take a comma, as those proposed by the Conservatives and the NDP when this bill was examined in committee. The party in power did not accept those amendments. It agreed to a few of them, after similar amendments were proposed by the Senate, but it rejected most of them.

As I said earlier, members of the opposition are not mandated by the public to systematically oppose everything the government does. The role of the opposition, which does not control the legislative agenda, is to point out that the party in power may not know everything about the bill it has introduced on a certain subject and that perhaps we could find ways to improve it if we worked together. That is why the opposition is trying to find solutions. Need I remind the government that 61% of voters voted for opposition members from various parties in the last election? I believe that those voices must be heard. Unfortunately, our democratic system falls a bit short in that regard. The sooner we implement the electoral reform proposed by a number of parties during the last election campaign the better. Unfortunately, the Liberals did not keep their promise in that regard.

I want to come back to the Senate amendments. We welcome the amendment that gives the Canadian Transportation Agency the authority to conduct proactive investigations into rail transportation of grain. I almost feel like applauding but I will restrain myself, and hon. members will quickly see why. In fact, we are at the same time disappointed in the government's position to make this Canadian Transportation Agency initiative conditional on the minister's approval.

Once again we are seeing the centralization of powers into the hands of a single person who holds the title of Minister of Transport. Imagine how independent a Canadian Transportation Agency investigation will be if the agency has to first justify the ins and outs of that investigation to the minister. There is a good chance that the agency will be told “no” or “yes, on condition that... by focusing the investigation on...”. This inconsistency and ministerial intrusion is totally unacceptable. This completely changes the nature of the proposed amendment.

Next, I would like to talk briefly about voice and video recorders. Bill C-49 requires railway companies to install voice and video recorders in locomotives. We strongly oppose this provision, unless these recorders provide for better safety systems and prevent potential rail accidents by providing information. We had said that we would agree to installing these recorders if the recordings were used exclusively by the Transportation Safety Board to analyze a situation and look at all potential findings, which would help us improve how things are done. We refused to allow these recorders to be used to provide information on workers, even randomly. We initially thought this would be appropriate. However, this change could violate section 8 of the Canadian Charter of Rights and Freedoms. Furthermore, as I was saying, companies could end up using these recordings to monitor employees or take disciplinary action, which we believe is completely unacceptable.

Often a train conductor spends more than 12 hours in his cabin. Can you imagine being in front of the cameras for 12 hours? That is our reality here in the House, but rarely for 12 hours in a row. What is more, we are not alone and we do parliamentary work. When a conductor is alone in a locomotive, he might end up talking to himself. If he gets a text message that puts him in a bad mood, he might make an inappropriate comment that could be used against him later. That is unacceptable to us. A bipartisan committee made up of representatives from Transport Canada and the major unions found that this was not the solution and that it was intrusive. The proposed installation of these voice and video recorders is therefore problematic.

I would also like to talk about the passenger bill of rights because it is truly hogwash. Everyone is talking about it, including the media. This is a critical topic that affects the vast majority of people watching us, since most of them travel by air for business or pleasure, for vacation or recreation. At some point, we have all had an unpleasant experience that made us wonder what recourse we had.

Bill C-49 almost entirely overlooks this very important matter. What it does say is that once the bill receives royal assent, extensive consultations will be held to establish regulations, which will be approved, amended or rejected by the Minister of Finance and that will lead to the creation of a passenger bill of rights. Even if Bill C-49 were to receive royal assent before we rise for the summer, we would still be without the long awaited passengers' bill of rights.

I gave the minister the benefit of the doubt. I said to myself that he believes the consultation is necessary because he does not yet know what position to take on some of the elements of this bill of rights and because he wants as much information as possible. He already has all the information he will get. I am familiar with the minister's reading and comprehension skills, and I know that he has the file well in hand.

This morning, I asked a question about a specific amendment the Senate proposed to reduce tarmac delays from three hours to 90 minutes before disembarking passengers. I am sure we all remember what happened to those Air Transat passengers just a few months ago. I think examples like that show that the Senate's amendment makes sense.

I asked the minister if he was rejecting the amendment because he is fundamentally opposed to it for clear, compelling, obscure reasons, or if he was rejecting it because it would be the subject of future consultations and regulations that will be proposed at some point. The minister rose and gave me a very eloquent explanation of why he was fundamentally opposed to the 90 minutes and in favour of the three hours. That made it abundantly clear to me that the minister has already made up his mind about what the Canadian Transportation Agency is going to suggest in terms of regulations. How many months are we going to have to wait for those suggestions? That is another unanswered question.

If his mind is already made up, why not put the bill of rights directly into Bill C-49? That would give us a chance to vote on a bill of rights, rather than on a process that will lead to a consultation that may eventually, by the next election, allow him to again campaign on the promise of a passenger bill of rights. People have been waiting far too long. They want answers.

For example, the bill of rights that the NDP proposed in the last Parliament was largely based on the European charter. According to many of the witnesses who testified during our studies, the European model is the gold standard. With regard to flights that are subject to the European regulations, the regulations need to be invoked in 0.4% of cases because of excessive wait times. However, that figure is four times higher for flights subject to Canadian regulations, for this metric alone.

I would like to quickly move on to my fourth point, namely measures concerning joint ventures. I think they provide a crystal clear demonstration of a slippery slope. If memory serves, Air Canada and Delta Air Lines have proposed a joint venture. Essentially, a joint venture proposal should be favourable. Two companies decide to pool their equipment, airlines, and services in order to offer passengers the best service at the lowest price. However, if a joint venture between two industry giants creates fierce or unfair competition for smaller industry partners, there is a fundamental problem that may completely undermine the level playing field we are aiming for.

Thank goodness for the competition commissioner, who used to be able to reject a proposed joint venture on the grounds that it did not foster healthy competition. However, Bill C-49 takes that authority away from the competition commissioner and gives it to the minister. For the sake of national interest, a very broad and often abused concept, the minister alone will be able to approve joint ventures, even if they go against the competition commissioner's recommendations, because making recommendations is all the commissioner will have the power to do from now on. I think that is completely unacceptable. It goes against the initial goal, which is to provide Canadians with better services and better fares.

I am out of time, so I will stop there. Perhaps I will have the opportunity to elaborate on some aspects of my speech when answering my colleagues' questions.