Okay. I'll try to be brief. Thank you.
Bruce was talking about the capital-intensive nature of rail. The issue of CCA rates is particularly important. I would like to refer the committee to the 2004 committee report, in particular recommendation 14, which emphasizes that three criteria should be used to evaluate CCA classes: essentially, similar asset classes should be treated in the same fashion; Canadian rates should be competitive with the U.S.; and Canadian rates should reflect the useful life of assets.
The rail sector feels that using these criteria, which we agree with, there is a compelling case that rail rolling stock should be at a 30% CCA rate. Certainly if you use the first criterion, trucks are at 40%, road trailers are at 30%, vessels are at 33%, and aircraft are at 25%. As for the second criterion, comparability with the United States, they have a different tax depreciation system, but essentially, for U.S. rail, it would be equivalent to about a 30% CCA rate, which we're proposing for the Canadian side.
On the third criterion, in terms of the useful life of assets, with the rapid technological innovation that has taken place--the computerization of the railway sector--a modern locomotive is very much a highly technological asset. Under all three criteria we feel that there is a compelling case for the CCAs to be at 30%.
In terms of the benefits of such a move, because of the capital-intensive nature of the rail sector, we feel there would be an economic spinoff for supply and component companies and, as Bruce referred to, improved emission performance for the rail sector with increased investment. It also helps Canadian trade competitiveness with, again, the requirement for Canada's infrastructure to move the enormous amounts of freight that the rail sector does move.