Thank you, Madam Chair.
Thank you to the committee for the invitation to appear before you today.
The Canadian Transportation Agency is Canada's longest-standing independent and expert regulator and tribunal. Established in 1904 as the Board of Railway Commissioners, the CTA has evolved over the years in its responsibilities as Canada has evolved, its transportation system has evolved, and its economy and society have evolved.
Today the CTA has three primary mandates. The first is to help ensure that the national transportation system runs smoothly and efficiently. This includes dealing with rail shipper issues, rail noise and vibration complaints, and challenges to port and pilotage fees.
Our second core mandate is protecting the fundamental right of persons with disabilities to accessible transportation services.
Our third core mandate is providing consumer protection to air travellers.
Among the CTA's most important activities in recent years is the regulatory modernization initiative. Launched in May 2016, this initiative is a comprehensive review of all regulations the CTA administers to ensure they are up to date with business models, user expectations, and best practices in the regulatory field.
Over the next 10 minutes, I would like to speak about how Bill C-49 will affect the CTA's roles and how, if and when it is passed, we will implement those elements for which we will be responsible.
I would like to note that my observations are offered from the perspective of the arms-length organization that has primary responsibility for day-to-day administration of the Canada Transportation Act.
The Minister of Transport's principal source of public service policy advice is Transport Canada, and I would defer to the minister and his department with respect to questions regarding the policy intent of the bill's various sections.
I will structure my remarks around two key elements of Bill C-49: air passenger protection and mechanisms for addressing rail shipper matters.
Air travel is an integral part of modern life. Usually it's uneventful, but when something goes wrong, the experience can be frustrating and disruptive, in no small part because as individual passengers we have little control over events.
Bill C-49 mandates the CTA to make regulations establishing passengers' rights if their flights are delayed or cancelled, if they are denied boarding, if their bags are lost or damaged, if they are travelling with children or musical instruments, and if they experience tarmac delays of more than three hours. This is a significant change.
The current regime simply requires that each airline develop and apply a tariff: written terms and conditions of carriage. The CTA's role as it stands right now is to assess whether an airline has properly applied its tariff and whether the tariff's terms are reasonable.
We have said it's important that air passengers' rights be transparent, meaning that they can be found easily by travellers; clear, meaning that they are written in straightforward, non-legalistic language; fair, meaning that they provide for reasonable compensation and other measures if something goes wrong with the flight; and consistent, meaning that travellers facing similar circumstances are entitled to the same compensation and measures.
Last fall we launched public information efforts to help make travellers aware of the recourse available to them through the CTA if they have a flight issue that they are not able to resolve with an airline. We did so because we believe that for remedies created by Parliament to be meaningful, the intended beneficiaries have to know that those remedies exist.
The results of these efforts combined with the Minister of Transport's and media's focus on air travel issues have been dramatic. Between 2013-14 and 2015-16 the CTA typically received about 70 air traveller complaints per month. Over the last year, since we started our public information efforts, that number has risen to 400 complaints per month. And over the last week alone we have received 230 air traveller complaints. That is to say that in one week we have received one-third as many complaints as we used to receive in an entire year.
This jump suggests that the need for assistance has always existed and once Canadians knew that the CTA is here to help, they began turning to us in far greater numbers.
If and when Bill C-49 is passed the CTA will move quickly to develop air passenger rights regulations. Our goal will be to balance, on the one hand, the public's high level of interest in air travel issues and desire to shape the rules with, on the other hand, the expectation that those rules will be put into place quickly. To strike this balance we will hold focused, intensive consultations over a two to three-month period with industry, consumer rights associations, and the travelling public using both a dedicated website and in-person hearings across the country. Once in force, the new air passenger rights regulations will give Canadians travelling by air greater and long overdue clarity on their rights and what recourse is available to them.
Let me turn now to the second main component of Bill C-49: changes to the provisions dealing with relations between freight rail companies and shippers.
Facilitating these relations has been a key part of the CTA's mandate from the beginning. That reflects both the fundamental importance of the national freight rail system to Canada's prosperity, and the enduring concern among shippers about what they see as an equal bargaining power between them and the small number of railway companies on whom they depend to move their goods.
The CTA has observed that, notwithstanding these concerns, shippers make relatively limited use of the remedies available to them under the law. If this is because good-faith commercial negotiations are producing mutually satisfactory agreements across the board, that is excellent news. But if it is because the cost and effort involved in accessing the remedies are perceived to outweigh the likely benefits, or because of challenges with how these remedies are structured, the provisions in question may not be fully realizing their objectives.
We have also noted that there is relatively little information available about the performance of the freight rail system. This paucity of information affects the effective functioning of the market and evidence for decision-making, and stands in contrast to the situation south of the border.
The freight rail elements of Bill C-49 have the potential to address some of these issues. Amendments related to rate arbitrations, service level arbitrations, and level of service adjudications may help recalibrate the cost-benefit analysis that shippers make when considering whether to access recourse mechanisms. The the requirement that railway companies submit more data and that the CTA publish performance statistics online may help fill information gaps.
Perhaps the most significant rail-related change in Bill C-49 is the replacement of both the CTA's authority to set general interswitching limits beyond 30 kilometres and of the competitive line rate provisions with a new mechanism called long-haul interswitching. The CTA's role with respect to long-haul interswitching will be to order that the requested service be provided if an application is made and certain conditions are met, and to establish the rate for that service.
The bill gives the CTA 30 business days to receive pleadings from parties and to make these determinations. We've already begun to develop a process to ensure that we can meet that extremely tight timeline. We know that the parties will be watching our decisions on long-haul interswitching closely. Those decisions will be based on the criteria that Parliament ultimately adopts and on the CTA's analysis of facts before us, because as a quasi-judicial tribunal and regulator, what guides us is nothing more and nothing less than the law and the evidence.
Before concluding, I would like to mention one item that is not contained in Bill C-49: extension of the CTA's ability to initiate inquiries on its own motion.
The CTA already has this authority for international flights—and most recently used it to undertake an inquiry into some of Air Transat's tarmac delays. That case shows how relevant the authority—