Finance Committee on Oct. 26th, 2026

[Steven MacKinnon, Liberal, Gatineau, QC]

I didn't speak with every one of those companies, but since I spoke with many industry stakeholders, I assume they will tell you that many measures have been taken and that—

[Éric Lefebvre, Conservative, Richmond—Arthabaska—des-Sources, QC]

Minister—

[Steven MacKinnon, Liberal, Gatineau, QC]

—concerted action has been sustained by the provinces to verify licences for all these companies, but that the guidelines, the substance of the system—

[Éric Lefebvre, Conservative, Richmond—Arthabaska—des-Sources, QC]

Thank you, Minister. As you know, I only have five minutes. I know you're a savvy politician.

[Steven MacKinnon, Liberal, Gatineau, QC]

As you can see, I care deeply about this file, just as you do.

[Éric Lefebvre, Conservative, Richmond—Arthabaska—des-Sources, QC]

Minister, you spoke about air passengers' trust in Bill C‑31 and regulations pertaining to complaints.

What I want to talk to you about, based on my understanding so far, are complaints related to Alto. There's talk that $2.8 million was distributed in bonuses to 134 employees, and yet, not a single kilometre of tracks has been laid.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Lefebvre. Your time is up.

We will continue now with Mr. MacDonald for five minutes.

[Kent MacDonald, Liberal, Cardigan, PE]

Thank you, Chair.

Thank you, Minister, for appearing today.

I want to begin by thanking our government and you for the decision to rename the Charlottetown airport in honour of Alex B. Campbell, who happened to be the longest-serving premier of P.E.I. As you would be aware, he was a true visionary, who was around for a lot of progress and expansion in the island economy. Our airport was important. It continues to be incredibly important to families, workers and the tourism sector throughout Atlantic Canada, because it is one of the few ways to come and go to and from the island.

As our constituents face unexpected flight disruptions, the realities of living on an island really hit home, because if a problem starts in Toronto, it's a big problem by the time it gets to P.E.I.

I would like to pivot now to the consumer protections that you introduced in Bill C-31. Minister, for residents of Atlantic Canada, particularly P.E.I., can you explain how the structural reforms to the APPR under Bill C-31 will offer stronger protections and greater peace of mind?

[Steven MacKinnon, Liberal, Gatineau, QC]

I'd certainly be happy to.

I can't let that Alex Campbell reference go by, though, Mr. MacDonald, without agreeing that it's important we recognize our greatest public servants. I know you're well aware, as you just said, of Premier Campbell's contributions to Prince Edward Island. I'll note that he told me at that ceremony that one of his first jobs was at that very airport, which was undoubtedly an airfield at the time. He is, in many ways, an aviation pioneer not just in P.E.I. but also in our country. It is all the more fitting that we recognize Premier Campbell and his contributions.

I know you're well aware that when there are problems in Toronto, the plane doesn't get in the night before to do the invariable 5 a.m. departure that you're probably subjected to from time to time, Mr. MacDonald. We're determined to improve regional air services on a number of fronts. Part of our program inviting expressions of interest to operate our largest airports will involve an important regional air service program that we will put in place to improve regional air services all through Canada. There are more details to come on that.

Specifically with respect to air passenger protections, what Islanders and others can assume is that we will have a system where airlines are incented by the disincentives in this regime to have a consistent application of the regulations and to not exhibit behaviours that are against those regulations lest they be subject to significant fines.

When passengers cannot get a settlement immediately with an airline, they will be able to avail themselves of a system that will get them an answer quickly, or get a fair, independent adjudication made and compensation issued, if applicable—all within a very reasonable timeline and based on very clear criteria. The system right now is unwieldy, as it has different sliding scales for different things. It is unclear to many people and leaves too much room for interpretation on all sides. It is one that, as we now know, has gotten bogged down by a large backlog.

We believe this system will work far better for people who depend on air services big and small. That would include people in Prince Edward Island.

[Kent MacDonald, Liberal, Cardigan, PE]

Can you explain this to me for the constituents out there? If you have a complaint about an airline, are you reaching out to the airline first, and then the adjudicator process kicks in?

[Steven MacKinnon, Liberal, Gatineau, QC]

Ideally, the airlines—

[The Chair, Liberal, Karina Gould]

Give a very brief response, Minister.

[Steven MacKinnon, Liberal, Gatineau, QC]

—will recognize that they have breached their contract with the passenger and will offer compensation. When that is not done, passengers will be able to avail themselves of an independent process to get their case adjudicated.

[The Chair, Liberal, Karina Gould]

Thank you, Minister.

Thank you, Mr. MacDonald.

I now give the floor to Mr. Thériault for two and a half minutes.

[Luc Thériault, Bloc, Montcalm, QC]

Minister, earlier, you told me that criteria would be included in the regulations. However, you and I know that regulations always come after legislation. Additionally, the proposed amendments to the act are contained in an omnibus bill, which the Senate Standing Committee on Transport and Communications criticized in a report. Indeed, the report notes that “this increasingly common practice limits both parliamentary scrutiny and public debate on measures that would normally be the subject of a separate bill”. The report also notes that the committee would have welcomed the opportunity to hear from you, since you seem to disagree with the committee about its reading of the bill.

As such, would your government be open to amending the bill to clarify the guidelines to regulate the activities of third parties responsible for handling complaints?

[Steven MacKinnon, Liberal, Gatineau, QC]

Clearly, your comments are based on observations pertaining to bill-making. My answer to that would be that regulations—

[Luc Thériault, Bloc, Montcalm, QC]

Regulations are never brought before parliamentarians. You're telling me that the criteria are going to be in the regulations and so I'd like an answer to my question.

Are you going to be open to our proposed amendments to the bill to ensure criteria are not left out? That's because once the bill is passed, you're going to do as you please.

[Steven MacKinnon, Liberal, Gatineau, QC]

There is no limit, Mr. Thériault, to the subject of comprehensive scrutiny by parliamentarians. However, I can assure you that the regulations will be the subject of broad stakeholder consultation, which may include your comments, obviously.

[Luc Thériault, Bloc, Montcalm, QC]

For instance, would you agree to adopt an amendment so that carriers can't choose an adjudicator?

[Steven MacKinnon, Liberal, Gatineau, QC]

In my opening remarks, I said I was open to suggestions to reassure passengers of these firms' independence. Yes, I would welcome your suggestion.

[Luc Thériault, Bloc, Montcalm, QC]

Interesting.

According to the same report by the Senate Standing Committee on Transport and Communications, the proposed process set out in the bill raises concerns regarding independence, impartiality and conflicts of interest. The report also notes that to preserve the integrity of the process and ensure national consistency in decision-making, air carriers should not be able to choose the private third party responsible for addressing complaints against them.

I agree with the Senate on that.

[The Chair, Liberal, Karina Gould]

Thank you, Mr. Thériault.

That concludes your speaking time.

We will continue now with Mr. McLean for five minutes.

[Greg McLean, Conservative, Calgary Centre, AB]

Thank you, Madam Chair.

Minister, thank you for coming today, particularly since I know your other job in the House of Commons keeps you very busy getting legislation through. Thank you for paying attention to this part of your job as well, which is important in terms of the bill before us.

This is transferring regulations from the CTA to you directly, to the minister. How many people at the CTA, the Canadian Transportation Agency, were overseeing this process prior?

[Serge Bijimine, Assistant Deputy Minister, Policy, Department of Transport]

I'm sorry. Just as a quick clarification, do you mean overseeing the complaint process as a whole? It was around 120 people.

[Greg McLean, Conservative, Calgary Centre, AB]

Now those 120 people will be directly reporting to you, Minister, as opposed to an agency. Is that correct?