As I alluded to at the last meeting, colleagues, you will recall that we conducted a study on freight rail transportation in 2016 and, more specifically, the transportation of grain and agricultural products. We heard from numerous stakeholders that the measures in Bill C-30, also known as the Fair Rail for Grain Farmers Act, including extended interswitching, were not in fact ideal. The legislation was often characterized as a temporary band-aid, hastily applied after the grain-handling crisis in 2013 and 2014, a piece of legislation with many flaws.
Many farmers and other shippers felt that the 160-kilometre extended interswitching did not go far enough. Notably, sectors such as mining and forestry, in particular, pointed out that they too would like to benefit from interswitching but were usually outside the 160-kilometre radius. At the same time, rail companies objected to the rates not being determined on a commercial basis and argued that this would be a disincentive to them as regards making needed investments in their infrastructure.
In the absence of a solution that could address these various conflicting interests, this committee ended up passing a motion calling on the government to extend the provisions for interswitching that were due to sunset for one year, until August 2017, but only until such time as the minister could find a better—and I want to stress this point—longer term solution.
The good news is that with Bill C-49, the proposed transportation modernization act, the minister is proposing just such a long-term solution, including a new measure, calling for longer haul interswitching, which will be available to captive shippers within a 1,200-kilometre radius.
I understand that the initial reaction from shippers, including farmers, has been very positive thus far. However, there will be a legislative gap between when the interswitching provisions in Bill C-30 sunset in August 2017 and when Bill C-49 receives royal assent, assuming it does, likely sometime later this year, depending upon how long it takes to get through the House and, of course, the Senate. Some shippers are understandably concerned about this gap and would like to start benefiting from the new and improved measures contained within Bill C-49 as soon as possible. I know our government has heard these concerns and wants to help, and I'm sure that members of the committee, especially those in sensitive areas such as Saskatchewan, have heard the same concerns.
I understand that the government House leader has indicated a willingness to deal with Bill C-49 at second reading and get it to our committee before the summer adjournment. If that in fact happens, I propose that our committee meet prior to the House's returning in the fall to study Bill C-49. This would provide us an opportunity to hold extended meetings and do a lot of work in a relatively short period of time. Ideally, we could even complete our study before the House gets back in September.
I think this would go a long way to speeding up the process and delivering results for our grain farmers and other captive shippers who are eagerly awaiting the passage of this bill and will certainly be supportive, in our view, of the certainty that this bill will provide.
Bill C-49 also includes a number of other important measures, notably a passenger rights regime for air travellers that is long overdue and that I'm eager to start studying.
I hope our colleagues in opposition will join me and the rest of the members of the committee in supporting our farmers and agree to hold the meetings prior to the return of the House in September. I know that on this side of the table we're prepared to do that work. We're prepared to bring this bill forward, we're prepared to support our farmers, and we're prepared to expedite this process to hopefully get Bill C-49 through and fill the gap between the August 1 sunsetting and the passage of this very important bill.
Thank you, Madam Chair.