Transport Committee on Nov. 28th, 2006

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Most of the communities, quite frankly, would either have a regular service or they wouldn't use the service in the first place, because it would be for tourists or bear hunters or people like that. Is that correct?

[Brigita Gravitis-Beck]

Yes, and the seasonal services, again, are for very limited periods of time, in many cases. Some of these seasons last 180 days, and if we're talking about using a 120-day process of advance warning, it really becomes a very impractical kind of connection.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

Indeed, the people who use these seasonal airlines would be the people who would not be from the community in the first place, because they're not going to use it if they have regular modes of service. Is that fair to say?

[Brigita Gravitis-Beck]

Correct. That's absolutely correct.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

So indeed, it's a burden that is not necessarily going to have any effect on the outcome that Mr. Julian wants, but indeed will have the opposite outcome for the rural communities in that they won't receive the service in the first place. Is that fair to say?

[The Chair, Conservative, Merv Tweed]

We'll go to Mr. Scott.

[Andy Scott, Liberal, Fredericton, NB]

If I may, I'm trying to find the logic in this, and I see some, but because the people who visit the community don't come from the community doesn't mean the community is not interested in their visit. They come into the community--

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

They don't visit.

[Andy Scott, Liberal, Fredericton, NB]

They fly in and out of communities. It's a part of the economic.... Tell the people in Charlottetown that all the tourists that visit--

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

There are more than 10,000 people in Charlottetown.

[Andy Scott, Liberal, Fredericton, NB]

No, we've already agreed on the number. That's gone. The issue is whether the community has an interest in this, and we're just trying to figure out some way to go from an overly burdensome requirement of 120 days to something that would be more than just simply saying they'll be permanently exempted.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

But they have a regular service in Charlottetown, for instance--

[Andy Scott, Liberal, Fredericton, NB]

No.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

--with a population of over 10,000, I understand.

[The Chair, Conservative, Merv Tweed]

It's a seasonal service.

[Brian Jean, Conservative, Fort McMurray—Athabasca, AB]

But they're not going to be stranded, because they have a regular service already provided to them.

[The Chair, Conservative, Merv Tweed]

Mr. Laframboise.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Why not simply issue seasonal licences valid for a set period of time?

[Brigita Gravitis-Beck]

I don't have an answer for you. You would have to ask the agency. I don't know why this isn't done.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

In my view, for safety reasons, it would be simpler to issue a licence, for example, for 120 days. This licence would be valid for a set period of time.

[Brigita Gravitis-Beck]

Again, it's probably more efficient to proceed in this manner. If there is only one type of licence, then it's easier to assess assignment criteria. However, another administrative layer could be introduced with the imposition of another criterion such as the seasonal nature of service. I would imagine that this is the rationale behind this approach.

[Alain Langlois]

The question of licences and the process for discontinuance of service are two different issues. When an operator applies for a licence, the agency does not set conditions. However, it must ensure that certain conditions are met, insurance being the basic condition, quite obviously. Provided the operator has insurance and meets the other criteria, then a licence is issued. If, after a year, the licensee wishes to have his licence cancelled or suspended, then he is free to submit a request to the agency to have his licence cancelled or suspended. However, the licensee is not required under section 64 of the existing legislation to make such a request. The operator must give 120 days' notice of his intention of discontinuing service. These are two separate requirements.

To answer your first question, safety will not be affected because as soon as the statutory insurance lapses, the agency suspends the operator's licence. This is a mandatory requirement of the act. Immediate action must also be taken if a licensee fails to meet statutory insurance requirements. These are two separate issues. The suspension or cancellation of a licence does not relieve a licensee of his obligation to meet the requirements prescribed in section 64.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Basically, what the licensee wants is to suspend operations so that he no longer has to pay insurance, which accounts for the bulk of his costs.

You're saying that in the past, when his insurance lapsed, the licensee would give notice to the agency to suspend his licence. Automatically, his insurance lapsed. Now, you're saying that as soon as his insurance lapses, the agency will be notified. When I mention the safety of the public, it's not that I think the airplane could crash. However, it's important that passengers who board an airplane have insurance coverage. If ever that wasn't the case, because no follow up was done, then the passenger would not be able to take legal action against the operator, because the latter is no longer insured. And we would have been the ones responsible for having authorized that.

I felt that the existing system reassured the public that the operator was licensed and that passengers were covered by insurance in the event of an accident. Now you're saying that passengers would be covered in any case since the agency is notified as soon as the licensee allows his insurance to lapse.

[Alain Langlois]

No aircraft in Canada, whether serving a domestic or international route, is authorized to fly if the owner is not insured.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

I understand that. Insurance is a licensing requirement.