Evidence of meeting #31 for Finance in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was service.
A recording is available from Parliament.
Bloc
Gabriel Ste-Marie Bloc Joliette, QC
Therefore, urgent action is needed to support companies in the short term.
You also spoke of the recovery in your presentation and in your answer to my first question.
In particular, you mentioned that, in that respect, it will be necessary to implement measures ensuring the safety of passengers, who may be fewer in number.
What could the government do to support you?
More generally, how do you see your operations resuming?
President, Groupe Autocar Jeannois
Resuming operations will be very difficult and very gradual. The fact that we have been deprived of our revenue for several months will make it difficult to maintain the infrastructure and buildings, as I mentioned earlier.
Our businesses, like many others, are simply not designed to support a total lack of income for six to twelve months. No business can afford a total lack of income and then go back to business as usual. This is therefore an important factor to consider.
In addition, when we reopen, we will have to implement special measures that are not normally included in our operating costs. Currently, we are seeking consistency. It will be important to have consistency among the provinces as well, because to be able to travel from one province to another and move freely with our vehicles, we must have the same level playing field and the same requirements in order to keep our passengers and our employees safe.
Bloc
Gabriel Ste-Marie Bloc Joliette, QC
Thank you.
I have questions for Mr. Buy, but I believe Mr. Easter is going to tell me my time is up.
I will be back on my second turn. I hope that you will allow me to ask more than one question, Mr. Chair.
Liberal
The Chair Liberal Wayne Easter
I am, but you'll get a second round, Gabriel.
We'll turn now to Mr. Julian, who'll be followed by Mr. Morantz.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thanks very much, Mr. Chair.
Thanks to all our witnesses for being here today. We hope that your families are safe and healthy.
I think you've really struck a chord with the committee about the importance of providing supports for our transportation sector. Canada's the largest democracy on earth, and to make sure that after the pandemic Canadians can get from one part of the country or one part of the province or one part of the city to another, you're absolutely essential.
My questions will start with Mr. D'Angelo.
You made reference to $400 million that the government has not approved. Can you tell us where these discussions are at and what we can do to force the government to actually provide the supports that are needed for our rapid transit systems?
President and Chief Executive Officer, Canadian Urban Transit Association
Thanks for the question.
We've been working with both the provinces and the federal government, so we're very pleased. There are cities that are reopening, and in British Columbia, the province did step forward to provide certain guarantees to TransLink. Those have yet to be figured out by the senior levels of government.
To answer an earlier question as well, it shows that provinces are willing to be at the table. In Quebec some distribution of masks was facilitated by the Quebec association. That's been great. Also, the Premier of Ontario has been championing the need to get together at the table, because as the economy reopens, we're going to see ridership increase. Cities like Vancouver, Edmonton and Calgary are having double-digit increases just this—
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I'm sorry to interrupt, but what can we do to force the federal government to actually provide this funding? I've been hearing about this for weeks now. We had Jonathan Coté, chair of the mayors' council for TransLink in British Columbia, before this committee. The federal government hasn't moved, so what can we do as committee members to force the federal government to take on its responsibilities in this regard?
President and Chief Executive Officer, Canadian Urban Transit Association
I think hearings like this are of assistance in bringing the message that senior levels of both governments need to act together, because municipalities are least able to provide all of this operational money. The federal government has been great for capital, and we thank them. It's part of the post-pandemic recovery. However, the argument we're still making is that our transit networks can't be broken over the next few months as we get through this operational rebuilding time. We feel the federal government has a unique role to play along with the provinces. Hopefully, that happens in the next couple of weeks.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Okay. Thank you.
I'd like to go to Mr. Wardrop, Ms. Paleczny and Mr. Buy.
I'd like to confirm that you do not have access to the wage subsidy and currently you're not getting any supports from the federal government in any other way. Could the three of you quickly confirm to what extent you're getting supports?
Chief Executive Officer, Canadian Ferry Association
I can start, if you wish. A minority of our members have access to the wage subsidy. The great majority do not.
General Manager, London Transit Commission
Some of our employees who are off on protected leave may have access to some supports, but other than that, there is nothing.
Chief Transportation and Utilities Officer, City of Winnipeg
In terms of any direct subsidies supporting operations, no, there isn't support in that regard. In terms of laid-off employees, there are of course programs available to help support those staff.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Okay, thank you for that.
What you're confirming is that the federal government is not anywhere right now, and yet what you very eloquently said, in each of your cases, is how catastrophic this is if we're not providing those supports. The federal government gets most of the tax dollars, and certainly the banking sector has gotten hundreds of billions of dollars in support. It boggles my mind that the transportation sector, so vital for Canada, is not getting these supports.
Mr. Kendrick, as far as the intercity transportation network is concerned, my understanding is that intercity bus companies are asking for about $26 million to hold the transportation sector in place so we can come through the pandemic and restore those transportation sectors. Can you confirm that, and can you confirm that the federal government, to date, has not taken its responsibilities to provide those supports?
Senior Vice-President, Greyhound Canada Transportation Corporation
Yes, I can confirm that the $26 million is accurate for the coalition of five carriers that joined together in discussions with the federal government. I can also confirm that we have not had any positive response back.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
What is the difference between having that $26 million and not having it?
Let's say the federal government continues to refuse while it shovels money at the banks and companies that work with offshore tax havens. What would happen if that $26 million was not made available as quickly as possible to the intercity transportation sector?
Senior Vice-President, Greyhound Canada Transportation Corporation
Well, right now, four of the five carriers have zero operations. They've suspended service, and the one carrier has very limited service. What will happen is a fractured network, and possibly some companies won't survive post-COVID. That $26 million will allow 50% frequency to remain consistent as customers get comfortable to travel again coming out of the restrictions in each province.
NDP
Liberal
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I just want clarification that the $26 million is for six months.
Senior Vice-President, Greyhound Canada Transportation Corporation
That is correct. It's for six months.
Liberal
The Chair Liberal Wayne Easter
Okay.
Peter, I do want to clarify something, though, in your questioning. The federal government is not shovelling money to the banks. What they're doing is providing liquidity so the banks can provide the loans to others, the same as we're providing liquidity to others. I wouldn't want the wrong impression to be left there. I'm not a great fan of the banks myself, but we want the right information out there.
We'll turn to Mr. Morantz, who will be followed by Ms. Koutrakis.
Conservative
Marty Morantz Conservative Charleswood—St. James—Assiniboia—Headingley, MB
Thank you, Mr. Chair.
I want to address my questions to Mr. Wardrop.
In full disclosure, I worked very closely with Mr. Wardrop in my four years on council, particularly when I was chair of public works. We worked on many transit-related projects together, including the rapid transit projects.
Mr. Wardrop, just to get a sense of the scale of the problem, I know you talked about the percentage of reduction in ridership being 72%, but to put a number on it, what would a normal weekday ridership look like pre-COVID?