Thank you very much, Mr. Chair, colleagues and committee members, for your kind invitation.
With me this morning are Mr. Jacques Pigeon, General Counsel of the Department of Transport, and Ms. Brigita Gravitis-Beck, Director General of Air Policy. If the questions become a little more technical, you'll understand if I ask these people to give you the answer.
Mr. Chairman, once again, thank you very much for your invitation and also for allowing me to be here this morning. I want to take the opportunity to thank you personally, and on behalf of Minister Verner, for your efforts, yours and those of committee members, in the preparation of the standing committee's report on the status of language obligations at Air Canada.
It is indeed my pleasure and privilege to speak to you today on the Government Response to the First Report of the Standing Committee on Official Languages and on the matter of Bill C-29, which seeks to introduce amendments to the Air Canada Public Participation Act.
As members of this committee are well aware, Air Canada's corporate restructuring, while it was under bankruptcy protection for an 18-month period between 2003 and 2004, resulted in changes to the scope of application of the Air Canada Public Participation Act vis-à-vis Air Canada and its newly created affiliates. In particular, the application of the Official Languages Act was reduced given a number of significant changes in the corporate structure of the airline company.
The previous government attempted to address this issue with the introduction of Bill C-47. This bill, you'll recall, would have restored language obligations at Air Canada's affiliates to what existed prior to the restructuring. However, this bill only made it as far as the committee stage in the House of Commons, as the bill died on the order paper when Parliament was prorogued for the election call in November 2005.
On June 15 of this year, members of this committee issued a report entitled “Application of the Official Languages Act to ACE Aviation Holdings Inc. following the restructuring of Air Canada”. I will refrain from going through the report at length, as I am sure you are even more familiar with the contents than I am. However, I will focus on how the recommendations in that report have been addressed by the government's response, which was presented to the House on October 16, 2006, and through Bill C-29.
The committee's first recommendation was for the government to reintroduce a bill repeating the provisions of Bill C-47 and add a number of amendments suggested by Ms. Adam, the former Commissioner of Official Languages, when she appeared before the Standing Committee on Transport on November 22, 2005.
In large part, this is precisely what the government has done. We are strongly committed to protecting and respecting the linguistic rights of Canadians. On October 18, 2006, I introduced legislation that seeks to amend the Air Canada Public Participation Act. Bill C-29 will ensure that official languages obligations continue to apply to the restructured Air Canada and are restored at the various affiliates of the airline.
In many respects, this new bill is substantially similar to Bill C-47. Bill C-29 will require that former internal divisions of Air Canada that fall within federal jurisdiction restore official languages obligations to what existed prior to the restructuring. This includes providing service to the public in both official languages and ensuring employees are able to work in the official language of their choice. The proposed amendments also require affiliates of Air Canada that provide air services, such as Jazz, to offer service to the public in both official languages.
I should point out, however, that this bill as tabled in the House does vary slightly from Bill C-47. As was raised in your report, Ms. Adam, then Commissioner of Official Languages when Bill C-47 was before the Standing Committee on Transport in November 2005, and her officials raised several issues regarding that bill. In essence, the Commissioner testified that some aspects of the bill, as is, left room for interpretation that could potentially reduce the linguistic obligations of Air Canada, ACE Aviation Holdings, and its various affiliates.
In order to address that situation, the commissioner proposed that the various entities, which were intended to be captured by the amendments, should be named specifically in the legislation. In other words, the bill should state that ground handling, technical services, cargo, and Air Canada online would all be subject to the full provisions of the Official Languages Act.
This was also stated in recommendation number 3 of this standing committee's report. However, the amendments proposed by the commissioner raised concerns with some of my officials.
In initial discussions with the office of the commissioner leading up to the drafting of Bill C-29, these concerns were brought to their attention.
Recognizing that there was a valid argument to be made in favour of both sides, every effort was made to arrive at a mutually agreeable compromise that would address all respective concerns. As a result of these discussions, subclauses 10.2(2) and 10.2(3) were added to this draft of the legislation.
These new provisions allow the Governor in Council to name those specific affiliates of Air Canada that will be captured by the proposed legislation through an order in council, if needed.
In this way, Mr. Chair and colleagues, the government will be able to designate these affiliates in the corporate structure that will be subject to the official languages provisions of the Air Canada Public Participation Act. This also provides the government with sufficient flexibility to add or remove affiliates, as the circumstances warrant, should the company undergo further significant restructuring.
Based on the most recent information available, an order in council could name and ensure language rights at the following affiliates: Air Canada Cargo, Ground Handling and Technical Services.
Incidentally, Air Canada has made it known through the press that a new restructuring is imminent. That is why this list could be revised when and if the bill comes into force.
At this time, we do not believe that Air Canada Online falls under federal jurisdiction, and it should therefore not be subject to the Air Canada Public Participation Act.
By the same reasoning, the government was not prepared to fully support recommendation four, which requested that the new bill stipulate that Jazz, Air Canada Vacations, and Aeroplan be subject to part IV, language of service, of the Official Languages Act. However, the government will ensure that bilingual service to the public will be imposed on Air Canada Jazz, given its nature as a federally regulated undertaking, although it should be noted that the carrier was subject to these same requirements prior to Air Canada's restructuring.
The activities of Aeroplan and Air Canada Vacations, on the other hand, fall outside the scope of federal jurisdiction and therefore were never subject to the legislation prior to restructuring. As such, the bill does not subject Aeroplan and Air Canada Vacations to the official languages provisions of the Air Canada Public Participation Act.
I understand that Bill C-47 was supported in principle by all parties in the House. It is my hope that Bill C-29, with the minor amendments that have been incorporated as per the commissioner's and this committee's suggestions, will receive similar support.
That concludes my opening remarks, Mr. Chair. I would be pleased to answer any questions from committee members.