Evidence of meeting #14 for Transport, Infrastructure and Communities in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was projects.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Louis Ranger  Deputy Minister, Department of Transport

3:35 p.m.

Conservative

The Chair Conservative Merv Tweed

Thank you, and good afternoon everyone. Welcome to the Standing Committee on Transport, Infrastructure and Communities, meeting number 14.

Pursuant to Standing Order 81(4), we are considering the main estimates for 2009-2010, votes 1, 5, 10, 15, 20, 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, and 75 under Transport, referred to the committee on Thursday, February 26, 2009.

Joining us today we have the Honourable John Baird, Minister of Transport, Infrastructure and Communities; and the Honourable Rob Merrifield, Minister of State for Transport. Also joining us at the table, from the Department of Transport, are Mr. Marc Grégoire, assistant deputy minister of safety and security; Mr. André Morency, assistant deputy minister of corporate services; and Mr. Louis Ranger, deputy minister. Also joining us, from Infrastructure Canada, are Mr. David Cluff, assistant deputy minister in the corporate services branch and chief financial officer; and Mr. John Forster, assistant deputy minister of the policy and communications branch.

As I stated, we're here to talk about the estimates, so I will open the floor.

Mr.Volpé, you have a point of order.

3:35 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

Thank you, Mr. Chairman.

You know we have a time-honoured tradition in committee where to go first, but first let me welcome the minister back. I understand he has had some medical issues over the course of last week. And I welcome the other minister, Mr. Merrifield. I thank them both.

Since we're very accustomed to meeting the two of them and know them well, I'm wondering whether both ministers would agree to simply go to questions and answers on the issues, and forgo the opportunity to regale us with an introductory speech.

3:35 p.m.

Conservative

The Chair Conservative Merv Tweed

Mr. Baird?

3:35 p.m.

Ottawa West—Nepean Ontario

Conservative

John Baird ConservativeMinister of Transport

I'd be pleased if you want to go from 90 minutes to 80. I would be pleased to acquiesce.

3:35 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

We've already gone from two hours to an hour and a half, so let's go.

3:35 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

You'd get a great speech.

3:35 p.m.

Conservative

The Chair Conservative Merv Tweed

We'll open the floor to Mr. Baird for his opening comments, and then immediately go to the questions.

3:35 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

Starting now.

3:35 p.m.

Conservative

The Chair Conservative Merv Tweed

Starting now.

3:35 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

Thank you very much, Mr. Chair.

Committee members, I'm very pleased to be here today with my cabinet colleague, Rob Merrifield. You've already done me the pleasure of introducing our officials from both Transport Canada and Infrastructure Canada.

I also want to tell you that we're looking into the Brandon airport project, which I know you've been working hard on.

I want to begin by thanking the committee for its work over the past several months. A number of important pieces of legislation, such as Bill C-9, the Transportation of Dangerous Goods Act, and Bill C-3, the Arctic Waters Pollution Prevention Act, have progressed through this committee since February of this year. I appreciate the time and effort each of you has put into this achievement.

We're here to facilitate discussion and to help answer any questions you may have regarding the main estimates for both Transport Canada and Infrastructure Canada.

The actions taken by our government through the spending outlined in the estimates are contributing to cleaner air and water, to safer roads, and to more prosperous and livable communities. We are focusing our efforts on key actions and key infrastructure investments that will stimulate the economy, create jobs, and support Canadian families.

The 2009-2010 main estimates show significant investments through Transport Canada and Infrastructure Canada in the upcoming year, when our economy will need them the most. And we are working collaboratively with provincial, territorial, and municipal governments to help ensure there is three times more money flowing into the economy for more projects and more jobs.

We have accomplished a great deal since the meeting of first ministers in January. At that meeting, we agreed to a five-point action plan to accelerate infrastructure investments.

In keeping with this plan, we have amended the Navigable Waters Protection Act, reduced duplication of federal and provincial environmental assessments, and streamlined our own federal approval processes.

Our government, led by Prime Minister Stephen Harper, is also delivering on our economic action plan to stimulate economic growth, create jobs, and support Canadian families.

Within weeks of the budget being tabled, we approved more than 500 projects, valued at $1.5 billion, in small communities in various parts of Canada. We announced major projects, with a total federal contribution of almost $1 billion—$980 million to be exact—including the Evergreen Transit Line in the great city of Vancouver; the Edmonton southwest ring road; GO Transit improvements in the province of Ontario; and the expansion of a drinking water facility in Lévis, Quebec. And we have flowed over $307 million to provinces and territories under the provincial-territorial base initiative.

I would also note that when this new fiscal year began, we accelerated the first payments to cities of the federal gas revenue transfer. The first payment was issued within days of the start of the fiscal year. We will flow another $1 billion to municipalities later this year, because, I am proud to say, this fund has now doubled to $2 billion per year. It will remain at that level beyond 2014, when it becomes a permanent measure. Municipalities across the country will benefit from this additional funding now and for years to come.

The Federation of Canadian Municipalities recently noted that “The Government of Canada and all parliamentarians deserve recognition and thanks for their ongoing support...and the working partnership they have forged with Canada's municipalities.”

Our economic action plan made available nearly $12 billion in federal money for new infrastructure stimulus funding over two years. This includes infrastructure funds for which I am responsible: the $4 billion infrastructure stimulus fund and the $1 billion green infrastructure fund, and accelerated payments under the provincial-territorial base fund.

I have to tell you that we are working incredibly well with our provincial partners to help maximize those investments; I cannot put too fine a point on this. Premier McGuinty of Ontario, Premier Gordon Campbell of British Columbia, Premier Gary Doer of Manitoba, and Premier Charest are among those who are showing leadership in Canada's collective response to the global economic crisis. They are responding to the call for governments to put aside partisanship and political games and to work collectively for the benefit of Canadians and job creation in our economy.

There are several examples I would like to cite. Recently, my Ontario counterpart, Minister George Smitherman, and I sent a joint letter to Ontario municipalities, outlining our non-partisan approach to infrastructure development and the importance of these significant investments as a stimulus to our economy. We are working in lockstep to fully allocate funding for the communities component under the Building Canada fund. Strong provincial partnerships also allow us to put the infrastructure stimulus fund into action. We're providing more than $100 million from this fund to British Columbia's community infrastructure projects.

In the province of Quebec, we invested $700 million in a program to address water quality and repair sewers.

Mayors across Ontario are quickly preparing their stimulus fund applications, which are due by the end of this week.

Under our Building Canada plan, the provincial-territorial base fund was established to provide predictable funding of $25 million over seven years, with a total of $175 million per jurisdiction by 2014. We will be accelerating this funding where provinces and territories can match it by working to provide $175 million over the next two years. We have great pickup from that around the country. I'm also happy to say that several are taking advantage of this and investing more money in the economy as a whole.

Another major priority of this portfolio is to ensure that our transportation system is safe and secure. I'm pleased to report to the committee that, following the most recent Auditor General's report and the chapter on national security, an agreement was signed between Transport Canada and the RCMP. This will expand criminal background checks for transportation and security clearance applicants to include more intelligence data from more sources. This will allow us to better beat back criminals who may attempt to infiltrate our airports and will allow us to keep Canadian travellers secure.

Canada is a trading nation, and the importance of ensuring that Canada has an economically effective and efficient transportation system cannot be understated. We're focused on ensuring that this is the case while we work to ensure that the stimulus projects can be implemented quickly to get shovels in the ground and jobs created. These strategic and targeted investments will provide a much-needed shot in the arm for the Canadian economy.

The main estimates before us are directly linked to addressing the economic challenges that confront our nation and indeed all nations.

I look forward to chatting with you today. I'll turn it over to Minister Merrifield.

3:40 p.m.

Yellowhead Alberta

Conservative

Rob Merrifield ConservativeMinister of State (Transport)

I'll keep my comments very short because you are indeed looking forward to questions. I have spent a considerable amount of time on committees and I know full well what work you do and how important it is to Canadians and on behalf of Parliament.

I just want to reinforce with you my part of the responsibility in the transportation portfolio. We have the 15 crown corporations, including everything from Canada Post to VIA Rail, Marine Atlantic, and many others. I'm not going to name all 15 corporations. I think you're familiar with them.

Within the portfolio, I also assist Minister Baird more directly on the infrastructure file, in charge of Alberta and Saskatchewan, and work very closely with the provinces to get the money going, get Canadians working, and make sure that we get shovel-ready projects that are indeed going to contribute to our long-term infrastructure for the country.

We're here to talk about the estimates today and I also want to make note of our action plan and some of the significant numbers of dollars that you'll see in the fall estimates. It's important for you to consider this as we discuss some of the issues this afternoon.

For CATSA, there is $282 million in our action plan over two years to improve air traffic and air safety. On the safety of travel in Canada, we're looking forward to implementing this initiative by the government very, very quickly.

VIA Rail is at $407 million. I believe that the last time we were here we talked about that a little with regard to making sure that we keep our rolling stock safe but also contribute to the speedy and efficient use of the VIA system across this country. I also want to highlight rail safety. Significantly, the number of dollars is at $72 million for rail safety and grade-crossing improvements, as well as enhanced regulatory oversight and enforcement. We are looking forward to implementing that $72 million as well.

On Marine Atlantic, I was able to be in Atlantic Canada to officially launch a new vessel, the Atlantic Vision, and you might want to take note of how that will improve service there in the long term.

So we're really about keeping Canadians safe, whether it's air, rail or bridges, stimulating our economy, and working on behalf of Canadians. We're looking forward to any questions you might have.

3:45 p.m.

Conservative

The Chair Conservative Merv Tweed

Thank you.

Mr. Volpe, you have seven minutes.

3:45 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

Thank you, Mr. Chairman. I'm going to share my time with Mr. Kennedy.

Minister Baird, I'm wondering if we can turn our attention to the estimates. I noticed that under the airports capital assistance program, the amount of funds available has actually dropped from $49 million to $36 million. In a period where we're trying to create jobs, as you so determined in your presentation, how would you justify cutting about 256 jobs with this reduction?

Mr. Baird.

3:45 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

I'll tell you that we are funding $4 billion under the economic stimulus fund, and under the Building Canada program, airports are eligible categories. I'm happy to ask my deputy to respond to the specific nature of your question with respect to the airports capital assistance program.

3:45 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

But he's not responsible for answering questions in the House, so I'm wondering if I can just focus on you. Would you mind?

3:45 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

We're not in the House.

3:45 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

How do you justify the loss of 256 jobs with this cut?

3:45 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

Go ahead, Mr. Ranger.

3:45 p.m.

Louis Ranger Deputy Minister, Department of Transport

If I may, this is a five-year program. It's fully funded. It varies from one year to another just because of the variations in demand, but over time, we average the full amount of $38 million a year. There might be some slight fluctuations, but we certainly spend the full amount, and frankly, the program is always over-subscribed. We manage to stage the work so that it eventually gets done.

3:45 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

Let me try a second question on the same theme. Part of your presentation talked about security, yet I notice, again, in the estimates, that the marine security contribution program is collapsed by a further $16 million this year. So does that mean we're not as concerned about security? And what about those other 300 jobs that go with it?

3:45 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

I can tell you that there are obviously significant responsibilities the federal government has with respect to marine security. There are also a significant number of responsibilities the private sector has in for-profit operations with respect to their requirement that they operate in a secure environment. We have provided some support, and the department has, particularly over the last six and a half to seven years. But there also are responsibilities the private sector has.

I can ask my assistant deputy minister for safety and security, Marc Grégoire, to respond specifically to the question you have with respect to the allocation on marine security.

3:45 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

I'm wondering if he can wait for a moment for me, because the third theme you touched on was the clean air program. The clean air program, I notice, has gone from $205 million in the last budget to $34 million in these estimates.

You were the Minister of the Environment when the allocation was $205 million. Now you're the Minister of Transport, and we've reduced that to $34 million and to $25 million in this next year. Has that become less significant for you now that you're the Minister of Transport?

3:45 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

I strongly believe in the “polluter pays” principle. I don't think taxpayers should have to subsidize industry to clean up its act. I believe that the polluters, those people who are profiting from polluting our environment, should be accepting responsibility for their actions, and they, rather than middle class families, should have to pay to clean the air. So we have provided--

3:45 p.m.

Liberal

Joe Volpe Liberal Eglinton—Lawrence, ON

That means that you have a list of those polluters you've identified, because you were able to cut the funds from $205 million to $34 million, knowing who the polluters were. Are you going to provide that for this committee?

3:45 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

Every registered marine vehicle, every registered aeronautic--