Transport Committee on May 30th, 2018

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

I'm calling to order the 106th meeting of the Standing Committee on Transport, Infrastructure and Communities. My apologies for the lateness.

Good afternoon, everyone. I'm especially pleased to welcome the Honourable Marc Garneau, Minister of Transport, to study a number of the votes from the main estimates 2018-19, namely: vote 1 under Canadian Air Transport Security Authority; vote 1 under Canadian Transportation Agency; votes 1, 5, 10, 15, and 20 under Department of Transport; vote 1 under Marine Atlantic; vote 1 under The Federal Bridge Corporation Limited; and, vote 1 under VIA Rail. These were referred to the committee on April 16, 2018.

On behalf of Transport Canada, we also have with us Michael Keenan, deputy minister, and Pierre-Marc Mongeau, assistant deputy minister, programs, as well as Karen Cahill, director general, financial planning and resource management.

For the Canadian Air Transport Security Authority, we have Mike Saunders, president and chief executive officer, and Nancy Fitchett, acting vice-president, corporate affairs, and chief financial officer.

For the Canadian Transportation Agency, we have Scott Streiner, chair and chief executive officer, and Carole Girard, executive director, internal services, and chief financial officer.

For Marine Atlantic, we have Don Barnes, president and chief executive officer, and Shawn Leamon, vice-president of finance.

For The Federal Bridge Corporation Limited, we have Ms. Natalie Kinloch, chief financial and operating officer.

Finally, for VIA Rail Canada, we have Jacques Fauteux, director of government and community relations, and Patricia Jasmin, chief financial officer.

Welcome, everyone.

I shall start the discussion by calling vote 1 under the Canadian Air Transport Security Authority.

Over to you, Mr. Garneau.

[Marc Garneau, Liberal, Minister of Transport]

Thank you very much, Madam Chair. In the interests of time, I won't read my introductory remarks in order to allow as much time as possible for questions.

[The Chair, Liberal, Judy Sgro]

Thank you.

Ms. Block.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you very much, Madam Chair.

Thanks to you, Minister, and to all of the departmental staff, for joining us today to answer any questions we may have.

I do believe, Minister, that your government has another live political grenade that's about to go off. I believe that only someone from your government can put the pin back in and prevent this story from blowing up. I'm referring to the situation with iChurchill Inc. and the planned purchase of the Hudson Bay railway. I'm going to list a number of the facts as I understand them.

In March 2018, iChurchill signed a letter of intent with OmniTRAX. After the letter of intent was signed, OmniTRAX notified the government's lead negotiator that they had come to terms with a prospective buyer of the assets. After notification was given, OmniTRAX was informed by the government's lead negotiator that the federal government was pursuing a deal with another firm.

I do want to make it clear, because perhaps I wasn't last week when I asked you some of these questions in the House, that I am not asking you to publicly discuss the negotiations. I just want to know: of the three facts that I've listed, are there any untruths or partial untruths contained in what I've said?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

I will answer the question by saying that we have a very capable chief negotiator, Mr. Wayne Wouters, a previous Clerk of the Privy Council, who is entrusted with the task from Western Diversification, which of course comes under ISED, to examine potential buyers. It is up to Mr. Wouters and his team to look at all serious and viable contenders who would be interested in taking over fixing and operating the line for the long term.

We are very grateful to Mr. Wouters for doing the job that he is doing. He has met with a number of interested parties. I fully trust his ability to choose which team, company, or group is most capable of ensuring for the people of Manitoba—northern Manitoba in particular and Churchill—the best new operator and owner of the line to take us forward. I would suggest that if you have any questions that are specific to the companies you address those to WED and ISED.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you very much, Minister.

The company, iChurchill, says that they had reached an agreement that fulfilled the three obligations outlined by your government, yet their deal has been rejected. You said that all options were being considered last week when I asked you the question. I'm just wondering if you could clear up for me why iChurchill's tentative deal has been dismissed.

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Well, I can't comment on the veracity of the allegations or comments that are made by iChurchill. I can only tell you that we have a chief negotiator who is looking at all those who have expressed an interest in becoming the operators. I will leave it to our chief operator in the Department of Innovation, Science and Economic Development to answer any specific questions related to the different candidates, including iChurchill.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

You know, there is an old saying, “follow the money”, and the treatment of—

[The Chair, Liberal, Judy Sgro]

Ms. Block, we're trying to keep to four-minute segments. You have 15 seconds left.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Okay. Thank you.

[The Chair, Liberal, Judy Sgro]

Mr. Fraser.

[Sean Fraser, Liberal, Central Nova, NS]

Thank you very much.

Minister, it's good to have you here once again. Just when I thought we were done with Bill C-49, I'm going to breathe some life back into it.

Long-haul interswitching was a major piece of this marquee legislation for your department. One of the issues I discussed during debate in the House and at length at committee with some of my colleagues from different parties was the need to ensure that long-haul interswitching allows for more effective and efficient transport between different regions and different industries. I saw that members of the opposition actually wrote a letter to the editor in one of my local papers, suggesting that the Maritimes were in fact being discriminated against because of certain remedies not being available for that part of the region. I don't believe that to be the case, seeing as how there are actually no class I railways in Nova Scotia, P.E.I., or Newfoundland, though, with respect to New Brunswick, at least one shipper has raised this potential issue.

I'm curious; can you reassure those watching back home that in fact this is not some slap against Atlantic Canada, and on the importance of making sure that products are moving in different regions of the country—not just western Canadian grain, for example?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Of course, long-haul interswitching is a very critical part of the new approach we are taking with respect to the movement of freight across Canada. The bill is supported by a wide range of stakeholders insofar as long-haul interswitching is concerned. It offers large benefits to captive shippers and the community at large. We're committed to working with this community to ensure that these benefits are properly understood and maximized to the fullest extent possible.

As it stands, this bill makes significant improvements to existing remedies that will benefit all captive shippers in the Maritimes and across Canada. It's important to talk about all of the things we've changed that make it a more level playing field for shippers, and not just the issue of long-haul interswitching. We feel that with all of the benefits we've put toward the shippers all across Canada, the shippers in the Maritimes are now on a level playing field with respect to moving their goods.

[Sean Fraser, Liberal, Central Nova, NS]

Excellent.

I'd like to change gears and go toward the oceans protection plan, which I note was included in the speaking notes you skipped over today. From an Atlantic perspective, we're surrounded by the ocean in every direction, but it's of course a national issue.

One of the major opportunities I see is engaging indigenous communities who live along our coasts and who care deeply about stewardship of the environment and our oceans. I'm curious; can you offer some insight on the opportunities that might be present for our indigenous peoples to help take part in this $1.5-billion plan?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

I would go so far as to say that the indigenous coastal first nations and Inuit play a critical role in the oceans protection plan. They have indicated to us for a long time that not only do they know their local waters better than anyone else, they've been there for millennia. Sometimes it's their means of living through fishing. Their deep connection with their local waters is such that they have told us that they want to participate in making sure these waters remain safe from a marine safety point of view. Whether we're talking about possible pollution or whether we're talking about ships that may experience difficulties, they are often, indeed, the first who are on the site when an incident occurs.

We are very much involving them. This is extremely exciting. This is a very strong demonstration of our efforts at reconciliation. I can assure you that we are providing them with the resources, the training, and the situational awareness so that they can actively participate as part of the oceans protection plan in ensuring the safety of local waters.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Minister.

Mr. Nantel.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Thank you, Madam Chair.

Thank you for being here, Mr. Garneau.

As you know, it has been a year now since we were together at the Montreal Electric Vehicle Show. At that time, you announced a transportation electrification strategy. I do not want to assume that it will not happen, because meetings are indeed being held according to my information, but will you be announcing something in that regard soon?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Yes, we saw each other there last year.

Our commitment is to release a zero-emissions vehicle strategy by the end of the year.

This is an issue that warrants our attention. As you know, transportation accounts for 24% of greenhouse gas emissions, and 80% of that 24% comes from cars and trucks. We have an important role to play in order to reach our greenhouse gas reduction targets.

We will be presenting a strategy by the end of the year.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Are you committed to presenting the strategy by the end of the year? We did not see anything about it in the estimates.

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

That is our objective. We have a lot of projects on the go, as you know, but we are also working on that strategy. Once we have some news, we will be pleased to share it with you.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Let me repeat my invitation: if the committee needs another partner, I am available. Things have to get rolling. It is important. The whole planet is going in that direction.

I also have a question about high frequency rail. My colleague Robert Aubin has noted various contradictory statements by your government. In January 2018, the prime minister said he supported the project, but a few months later, in April 2018, you said that you need answers because you want to know in advance if such a major investment is worthwhile. It seems you have gone from “yes” to “maybe”.

Where are we at on this initiative?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Our position has been consistent from the beginning. Perhaps Mr. Aubin took certain comments out of context; you always have to consider the context.

As to high frequency rail, let me clarify that we are currently conducting a serious study of the line between Quebec City and Toronto. No pun intended, but we want to know if it is viable. Since taxpayers' money is at stake, we need to have an idea of the potential number of passengers. We want to know if Canadians in that region will decide to leave their cars at home and take the train, or in some cases take the train instead of a plane.

Before we make that investment, we need to know how many people will be committed to it, first of all. Secondly, we want to assess private sector interest. That is what we are doing right now.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Is completion of the project contingent on private sector interest?

Do you intend to provide the committee with the results of the public opinion surveys that have been conducted on high frequency rail to date?

[Marc Garneau, Liberal, Notre-Dame-de-Grâce—Westmount, QC]

Of course, we will provide the results. Once we finish our work, we will have a good overview. Those results will influence our decision. It is our duty to share that information.

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Is the private sector's commitment—