Evidence of meeting #21 for Public Accounts in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was funding.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Maurice Laplante  Assistant Auditor General, Office of the Auditor General of Canada
Yves Desjardins-Siciliano  President and Chief Executive Officer, VIA Rail Canada Inc.
Patricia Jasmin  Chief Financial Officer, VIA Rail Canada Inc.

9:25 a.m.

Assistant Auditor General, Office of the Auditor General of Canada

Maurice Laplante

The points raised in the report are clear. The impact on VIA Rail activities is well established. The question is hard to answer because VIA has been in this boat for a number of years. The funding arrives late, the tracks are shared, and so on. These issues have all been raised and discussed since the start of the meeting.

If we set aside these issues, it's tricky to know how VIA would manage its operations. We also noted strengths in other aspects of the management of the corporation. For example, the strategic planning was good, and the corporation was well aware of the risks it faced, and it assessed and dealt with them properly.

So setting aside the issues related to government decisions or shared railway tracks, we could say that, overall, the corporation was well managed.

9:25 a.m.

NDP

David Christopherson NDP Hamilton Centre, ON

That's the conclusion I came to, and it bothered me because it left me with less to get riled about, which is what I do.

Let's tease that out a bit. Again, it seems as if we're often playing a game of gotcha, when at the end of the day the ultimate goal of public accounts and the Auditor General is to change behaviour so we don't have any necessity for gotcha.

Let me move to another area. You just got off the hook for a whole host of things; otherwise, you'd be dancing right now.

I had a lot of sympathy for the fact that a lot of it was out of your control. In the limited time I have left—and I'll get another chance later—the other priority I want to talk about is safety. You raise it in the report, and I've heard what you said about it, but I want to take one step back from safety and approach it this way.

[ Technical difficulty—Editor]

9:30 a.m.

Conservative

The Chair Conservative Kevin Sorenson

Mr. Christopherson, I think maybe.... Yes, that's the problem.

9:30 a.m.

NDP

David Christopherson NDP Hamilton Centre, ON

As usual, I'm my own problem, the biggest problem anyway.

9:30 a.m.

Conservative

The Chair Conservative Kevin Sorenson

If we just keep our phones away from the microphone, we have better sound.

Go ahead, Mr. Christopherson.

9:30 a.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Thank you, Chair.

On safety overall—and remember we're televised—what is the status of safety issues as raised by the union representing the employees who work at VIA Rail, and also communities, consumer groups, and others who represent the customers? Are there big issues in front of you? Are they business as usual? Have you made great strides?

It's a big important file. Are the union or consumer representatives putting on incredible pressure? What is your interpretation of your relationship with safety in general?

9:30 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

Thank you for the question and it's a very important one.

As people, we assume, rightfully, that train services are safe, that it is the safest mode of transport for the users, the operators, and the general public.

Therefore, at VIA it's a constant and daily commitment of all employees that first and foremost safety is paramount to our operations. It is the cornerstone on which this business is built. That is why we have quite an enviable safety record at VIA, but it's work that we do every day.

We just concluded our collective agreement with our brothers from Unifor on Sunday evening. In the course of that negotiation, issues related to health and safety, or specifically safety, were not a matter of debate. We're all on the same side, whether it be unionized or non-unionized personnel, senior management, board members, and obviously our shareholders in Canada, when it comes to that area.

We are very pleased with our safety record, but we do not take it for granted. When we have issues, we take action. Right here in this town, in Ottawa, when I took over in May 2014, we were having issues at Barrhaven, in MP Arya's region. We dealt with it right then and there in May and June of that year and, touch wood, the operation there has been quite reliable ever since.

We take that very seriously, because, as I said, it is the cornerstone on which this business is built. We all should assume that taking a train is the safest way to travel and we are committed to maintaining that. It is not currently an issue where we have challenges.

9:30 a.m.

Conservative

The Chair Conservative Kevin Sorenson

Thank you very much.

We'll now move back to the government side and to Mr. Arya, please, for seven minutes.

9:30 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

Thank you, Mr. Desjardins.

I want to put on the record the efforts you have been making in reaching out to us, especially the MPs and others where we have quite a number of crossings. I also want to put on the record that your employees in the Ottawa office have been quite good in their communication with us. They keep us updated on things that are happening.

As you know, my riding in Nepean has six crossings and each one of them has a high volume of traffic that crosses those crossings. We had that unfortunate accident a few years back that resulted in the loss of nine lives, so the grade crossings in my riding are a very high priority for me.

Have you included the grade crossings in Nepean in any of your plans?

9:30 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

Since way before the tragic incident that took place at the Barrhaven crossing a few years back, VIA, when it was just the user, not the owner—at the time the infrastructure was owned by the freight companies—indicated its concern about maintaining the grade crossings in that area.

9:30 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

Sorry, I have to interrupt because of the limited time. I know about that.

We know the federal government allocated $15 million for the Woodroffe crossing exclusively and that has to be used by next year. Have you included grade crossings in Nepean in any of your future plans?

9:30 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

What I was leading to was the conclusion that we would like to see grade separation. We were suggesting it before we owned the track. Since we've owned the track, we've been asking for it and suggesting it, and we're still suggesting it.

The reality of grade crossing construction is that it is a responsibility of the road authority. If the road is owned by the municipality, it's a municipal responsibility. If it's a provincial road—

9:35 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

What you're saying is that it is the city's responsibility. As I said, we have six crossings. On one, the city is implementing the grade separation. We are talking about a budget of around $200 million or $300 million. You are saying that is the city's responsibility. Obviously, the city cannot afford to spend so much money for one single crossing.

9:35 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

The reality is that separating the railway from road crossings is a road authority responsibility, because the road authority, or whoever owns the road, puts the road crossing over the trackage to seize the tax revenue of the land being developed. That's the genesis of it.

9:35 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

Basically what you're saying is that other than the $15 million that has been allotted, which has to be used by the end of next year, there are no plans from your side on the grade separation.

9:35 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

On VIA's side, there are no plans to build or fund grade separation in Ottawa. What we've committed to do is share the cost of the study—

9:35 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

We know the study is going to come out next year. We all know what the report will be. They are going to recommend that there be a grade separation. You're saying you don't have any plans, that it's the responsibility of the city, and I know that the city doesn't have that kind of money, so where does that leave us? Where does that leave the residents of Nepean?

9:35 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

The cities all over Canada, when they do grade crossings, seek funds usually from their own funds, the province, and usually federal infrastructure funds. My point is, the financial framework, the financial montage, of those investments, is the responsibility of the road authority. If VIA has to make a contribution, usually it will go to the Government of Canada, its shareholder, and seek funding for those undertakings, but it is extremely rare for VIA to build or pay for grade separation.

9:35 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

That's what I'm asking. It is not in your current plans now to go to your sole shareholder and ask for any support for this crossing in Nepean.

9:35 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

No, because we're not aware that the City of Ottawa is planning to build a grade crossing.

9:35 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

Why is that? You are participating in the study that is currently being undertaken.

9:35 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

Because we're hoping that the study will nudge them into pursuing grade separation. We're trying to support those who want to see grade separation, because that is what we would like to see happen.

9:35 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

If the city comes up with some sort of proposal requesting support, are you willing to consider it?

9:35 a.m.

President and Chief Executive Officer, VIA Rail Canada Inc.

Yves Desjardins-Siciliano

We would support any proposal that the city brings forward to any authority for funding for grade separation in Ottawa.

9:35 a.m.

Liberal

Chandra Arya Liberal Nepean, ON

Okay.

I'll change from my riding. Basically you mentioned the timing of the funding that is made available to you. You stated that usually funding comes late, and you don't have any commitment beyond March 2017 as of now. Do you think the decision will come soon? Is there any change in culture at Transport Canada?