Transport Committee on May 9th, 2019

[Robert Aubin, NDP, Trois-Rivières, QC]

Extremely interested.

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

I would have been disappointed if you hadn't asked me a question about it.

[Robert Aubin, NDP, Trois-Rivières, QC]

Don't worry, I have another one.

I found absolutely nothing in the budget about the HFR. Your colleague from Infrastructure and Communities told me that the project is progressing well, even though there was not one word in the budget about it.

Once you are convinced of the relevance of this project, if all the funds earmarked for studies on the HFR project have not been used up, will you still be able to make a decision, or will you have to wait until all those funds have been used up?

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

I want to assure you that we are doing our work very diligently. I am sure you will understand that this is an extremely complex project that involves hundreds of kilometres and raises some key issues. Will there be enough passengers to make the HFR viable? We do not want to be forced to subsidize this train beyond a certain amount, if I may say so. There are also environmental issues and the need to consult with indigenous peoples. In addition, there is an interoperability issue if the Réseau express métropolitain (REM) is built in Montreal.

[Robert Aubin, NDP, Trois-Rivières, QC]

If you had answers before the end of the studies, could you make a decision?

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

We are working very hard and diligently to make a decision. I expect you to remind me every week that this is something I should not forget.

[Robert Aubin, NDP, Trois-Rivières, QC]

Absolutely, and I will continue to do so.

Let's change the subject. The budget referred to zero emission vehicles with fewer than seven passengers. I attended a symposium in recent weeks on the hydrogen and fuel cell sector. It seems that Canada is quite a way behind on this issue, particularly with regard to hydrogen-powered buses and trucks.

If heavier vehicles were electrified and recharged, either from the electricity grid or by a more complex system, could this be another approach to reducing greenhouse gases? Is hydrogen also being considered in Canada?

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

That's certainly an open question. We look to the market to see whether other models of cars will meet the criteria necessary for a grant.

I must remind you of one of the measures that has not been mentioned very much and that applies to individuals wishing to buy one of those cars. Companies are also entitled to a tax cut if they buy cars, light or heavy, that run on hydrogen fuel cells.

[Robert Aubin, NDP, Trois-Rivières, QC]

Thank you very much for that answer.

In my last minute, I would like to briefly talk about CATSA. As we well know, the sums deducted from passenger tickets for security measures are not fully reinvested in security. It is like a cash cow for the government.

Could privatizing security services have advantages, particularly for regional airports, such as Trois-Rivières, which need security services to operate the discount travel business sector, for example?

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

One of our objectives is to reduce costs for passengers. Of course, costs must be incurred for security measures. Users pay for their security, that is to say those who buy airline tickets, but we do not want the cost to be higher than needed.

For airports that are not served by a system such as CATSA, as mentioned in Bill C-49, the modernization of the Canada Transportation Act, airports have access to this system, but at their own expense. It is possible that, in the future, we will review the designated airports, but we don't expect that by June.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Minister Garneau.

Mr. Iacono is next.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Thank you, Madam Chair.

Minister, thank you for being here this morning.

Our committee has been working on the impact of aircraft noise near Canada's major airports, which is a problem for some communities across the country, particularly in Laval. In fact, the report was tabled in the House on March 19.

Do you have any comments on that issue?

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

Thank you for your question.

I recognize that transportation affects the daily lives of Canadians, including the noise it generates. Although airports are the hub of the economy, their activities must take into account the needs of communities.

In terms of the specific problem of airport noise, the government is sensitive to the concerns of residents living near Montreal airport and other airports across the country. We continue to monitor the situation very closely.

Aircraft noise management is complex. It requires the combined efforts of various levels of government and various players in the air transport industry. Various groups are involved.

It's encouraging to see that the industry is paying attention to this issue. For example, NAV CANADA and the Greater Toronto Airport Authority have called on recognized experts and the general public to help them find ways to reduce aircraft noise at Toronto Airport. They have openly committed to implementing most of the recommendations provided by this group of experts. They are preparing reports and consulting on this work.

There are things that can be done, but all players must work together. I am highly aware of this issue because I constantly hear about it.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Thank you.

Let us now turn to rail transport. Last March, you announced a number of appointments to VIA Rail Canada, including that of Ms. Garneau, who was appointed president and chief executive officer.

Can you tell us about Ms. Garneau's appointment process and mandate objectives?

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

In an appointment process like that, you try to find the best person to fill the position, someone who has the experience and qualifications to be at the helm of a large company with tremendous responsibilities. I am particularly proud to see Cynthia Garneau officially taking charge of VIA Rail today. I am sure there's a bright future.

As you know, one of VIA Rail's major projects is currently the renewal of its fleet in the Quebec-Windsor corridor. That's a considerable investment. All equipment, locomotives and cars will be replaced. From 2022, we will be able to see the new cars and locomotives. It is a big project and a significant responsibility. As you know, the contract has been awarded to Siemens Canada, which will be responsible for providing this equipment. Finally, if we decide to take action on the high-frequency train, a lot more work will have to be done.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Since May 1, the federal incentives program for zero-emission vehicles has been a game changer for Canadians who want to “drive green”. The most frequent comments were about the cost of those vehicles. In Quebec and Laval, incentives are already in place for the purchase of zero emission vehicles.

Can this new federal incentive be cumulative? In other words, can it be in addition to those provided by the provinces and municipalities?

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

Yes, the list of eligible vehicles is available on Transport Canada's website. The incentive can be up to $5,000. Quebec has an incentive of up to $8,000. As you mentioned, the City of Laval is unique in that it also provides a $2,000 incentive. All those incentives can be combined, but the vehicle the person is buying must be on all three lists. It might appear on one list, but not on the others. If the vehicle appears on all three lists, which include the most common vehicles, the person can benefit from a truly significant discount.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

What are the forecasts for the sale of zero-emission vehicles for 2019-20?

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

We have no forecasts, but we hope that many people will feel that it's time to buy vehicles like that. We would like to see a lot of people look at those vehicles at dealerships.

[The Chair, Liberal, Judy Sgro]

We'll move on to Mr. Rogers.

[Churence Rogers, Liberal, Bonavista—Burin—Trinity, NL]

Thank you, Madam Chair.

Thank you, Minister and officials, for being here today.

Minister, I want to focus on the issues of transportation pertaining to Newfoundland and Labrador, of course, which is predominantly done by flights or ferry service.

Marine Atlantic provides an important constitutionally mandated ferry service to the citizens of my province. Recently we have been faced with challenges in terms of rates set by Marine Atlantic and cost recovery rates, which some believe are too high. Many residents are concerned about the affordability of this crucially important ferry service to my province.

Could you comment on the process undertaken to ensure the affordability of the constitutionally mandated service that we have?

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

We try to achieve the right balance here. As you point out, Marine Atlantic service is vital to the interests of Newfoundland and Labrador, and for people who depend on it not only for their personal travel but also for most of the goods that arrive at and leave the island.

Marine Atlantic brings more than a quarter of all visitors to Newfoundland, as well as two-thirds of all freight and 90% of perishables and time-sensitive goods, and we have a constitutional responsibility to maintain the service between North Sydney and Port aux Basques.

Marine Atlantic is seeking $153 million for year-round constitutionally mandated ferry service between North Sydney, Nova Scotia, and Port aux Basques, as well as non-mandated seasonal service between North Sydney and Argentia. Budget 2019, as you know, mentioned that we're going to extend support for existing ferry services in eastern Canada, and we will also be looking to procure three new ferries, one of them for Marine Atlantic. That would be to replace the Leif Ericson.

I realize the service is still expensive. Our approach has been that we subsidize the constitutionally mandated one, and we aim to get 100% recovery on the non-mandated one. We feel we've achieved the right balance, although perhaps not everybody agrees with that. We're trying to do something that provides that service and allows the fleet to be modernized when the time comes, but at the same time we also have to be mindful of the expenditures involved.

[Churence Rogers, Liberal, Bonavista—Burin—Trinity, NL]

I appreciate trying to find a balance in all of that, but I think there's a general sentiment across the province from the business community, tourism operators and others that the current rates are an impediment to people coming to the province. We've seen marked improvement in tourism in the province, but people still believe that affordability is an issue, and they suggest we may need to take a closer look at the cost-recovery rates.

I'm glad you mentioned the new ferry, because I wonder how that fleet renewal approach is going to impact the operations of Marine Atlantic and the services it provides.

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

We have people from Marine Atlantic here. Murray Hupman is here. Did you want to say anything?

[Murray Hupman, President and Chief Executive Officer, Marine Atlantic Inc.]

Sure. It will not impact the service at all.

When the new vessel comes into service, it will enhance the service. We will have the existing fleet right up to the point when the new vessel comes into service, and then at that point we will dispose of the Leif Ericson, so it won't impact the service at all.