Good morning, Mr. Chair and committee members.
Good day, everyone.
My name is Bruce Burrows, vice-president of the RAC. Joining me today is John Lynch, chair of our taxation committee and also AVP of taxation for Canadian Pacific in Calgary.
Thank you for inviting us to share some thoughts today about how rail, under a modernized fiscal and funding structure, could better help Canadians achieve a more prosperous future with improved quality of life and environmental and economic sustainability--in other words, maximize the potential in the long term, to quote the chair from his introductory remarks.
Rail faces many growth challenges for the first time in decades, with significant changes in the works in terms of services, technologies deployed, security provisions, and an evolving workforce. This year alone, the rail sector has to spend over $2 billion in Canada. Today we are fundamentally talking about getting Canada's products to market faster and cheaper and moving passengers and tourists quickly and more efficiently.
First, a little bit about who we are. We are the Railway Association of Canada, representing some 60 railway companies across the country. These are the well-known large class 1 freight railways such as CN and CPR, but also over 40 entrepreneurial short lines from across the country, all of the main commuter authorities in the main urban centres, our intercity service provider--VIA--and up to 10 tourist passenger railway companies. We employ, with our suppliers, over 100,000 people. We are a key partner with the Canadian ports. And we represent, interestingly, a small footprint environmentally with a big capacity on separate and very secure corridors. That's a third of the land use of highways and the equivalency of over 1,000 cars and up to 280 trucks per train.
This means we are producing only about 3% of transport GHG emissions with less energy intensity than other air quality emissions. For example, one tonne of freight can move 165 kilometres with just one litre of fuel. With the right technology, rail has become an effective way to minimize the shock of rising fuel prices.
Before I turn to my colleague, I'd like to acknowledge the continued progress made in Budget 2006. In particular, the reduction of the corporate income tax, the elimination of the large corporation tax, and the phasing out of the federal surtax are all welcome and sensible fiscal measures.