Transport Committee on Feb. 2nd, 2021

[The Chair, Liberal, Vance Badawey]

Good afternoon, everyone.

Welcome to meeting number 14 of the House of Commons Standing Committee on Transport, Infrastructure and Communities.

Today’s meeting is taking place in a hybrid format, pursuant to the House order of January 25, 2021. The proceedings will be made available via the House of Commons website. So you are aware, the webcast will always show the person speaking rather than the entirety of the committee.

To ensure an orderly meeting, I would like to outline a few rules to follow.

Members and witnesses may speak in the official language of their choice. Interpretation services are available for this meeting. You have the choice, at the bottom of your screen, of floor, English or French.

For members participating in person, proceed as you usually would when the whole committee is meeting in person in the committee room. Keep in mind that directives from the Board of Internal Economy regarding masking and health protocols are in effect.

Before speaking, please wait until I recognize you by name. If you are on the video conference, please click on the microphone icon to unmute yourself. For those in the room, your microphone will be controlled as normal by the proceedings and verification officer.

As a reminder, all comments by members and witnesses should be addressed through the chair.

When you are not speaking, your mike should be on mute. With regard to a speakers list, the committee clerk and I will do the best we can to maintain the order of speaking for all members, whether they are participating virtually or in person.

Pursuant to Standing Order 108(2), the committee is meeting today to continue its study on the impact of COVID-19 on the aviation sector.

Now I would like to welcome our witnesses.

From the Canadian International Freight Forwarders Association, we have Bruce Rodgers, executive director, as well as Julia Kuzeljevich, public affairs manager. From Downsview Aerospace Innovation and Research, we have Samantha Anderton, executive director; and Andrew Petrou, chairman of the board. From the Greater Toronto Airports Authority, we have Ian Clarke, chief financial officer; and Hillary Marshall, vice-president, stakeholder relations and communications.

From Nav Canada, we have Ray Bohn, president and chief executive officer; and Jonathan Bagg, director, stakeholder and industry relations. From Pascan, we have Julian Roberts, president and chief executive officer; and Yani Gagnon, vice-president and chief financial officer. Finally, from Porter Airlines, we have Robert Deluce, executive chairman.

Welcome to all of you.

To members of the committee, welcome to you, as well.

We'll start with our witnesses, for five minutes each. We'll start with the Canadian International Freight Forwarders Association.

Mr. Rodgers and Ms. Kuzeljevich, you have the floor.

[Bruce Rodgers, Executive Director, Canadian International Freight Forwarders Association]

Thank you, Mr. Chair.

Dear members of the Standing Committee on Transport, Infrastructure and Communities, we thank you for the invitation to appear today and for the opportunity to present our statement.

I provided a brief description of our organization with our briefing notes yesterday, and I assume that the committee would prefer that I move directly to our statement and the question period.

Our industry is experiencing the biggest change in aviation in our lifetime, perhaps since deregulation. The dramatic drop in demand for passenger air transport due to the COVID-19 pandemic and containment measures cut capacity even deeper, as approximately half global air cargo was carried in the belly hold of passenger aircraft.

At this point, there is great uncertainty as to how changes will shake out in the long term, although we are conscious of the fact that the aviation sector will experience severe long-term disruptions and perhaps ever-changing consequences.

Canada is recognized globally as a strong, stable and reliable trading nation, and one of the best places in the world to invest and start a business. The availability and security around cargo capacity in the air sector assist in providing trade and economic prosperity.

We come today to this committee on behalf of our freight forwarding members, concerned with the following current trends facing the aviation industry relating to the movement of cargo: one, the elimination of cargo capacity in passenger jet belly holds and the recent elimination of certain large aircraft types from route circulation, which has led to significantly increased costs and the addition of ad hoc charter flights; two, network changes and reduced schedules will affect the smaller and/or remote centres, which will be disadvantaged; and three, additionally, supply chain hand-offs for dangerous goods, ground handling services, and additional fees and surcharges to recoup business losses at airport facilities and/or by carriers.

We understand that the first item on the agenda will be relating to the impact of the Air Transat sale on the aviation sector. This is of little consequence to our freight forwarding members, as a carrier traditionally has little capacity for cargo movements. But we look forward to the other items on the agenda.

We would like to thank the committee for recognizing this as an area of rapid and nerve-racking change and challenges. We respect the committee's involvement in following the developments closely and anticipate the recommendations of policy changes as they become necessary.

Thank you very much for the opportunity.

[The Chair, Liberal, Vance Badawey]

Thank you.

Were we going to have a second speaker on behalf of your organization, or are you good to go?

[Bruce Rodgers]

I think we're good to go, at this point. Thank you very much.

[The Chair, Liberal, Vance Badawey]

Thank you.

We'll now move to the Greater Toronto Airports Authority.

Mr. Clarke and Ms. Marshall, the floor is yours for five minutes.

[Hillary Marshall, Vice-President, Stakeholder Relations and Communications, Greater Toronto Airports Authority]

Good afternoon, everyone. On behalf of the GTAA, my colleague Ian and I are happy to be here to present to you today.

I guess I can start by saying this on behalf of the entire aviation industry—some of whom are represented here—and possibly everyone in Canada: COVID sucks. While it certainly feels like a race to the bottom with other hard-hit industries, in spite of these efforts to push through and do everything we can to survive these toughest times, the pain is particularly acute at Canadian airports, notably Toronto Pearson.

As you know, Toronto Pearson is Canada’s largest airport. In 2019, we welcomed over 50 million passengers. The airport is the anchor employer in the second-largest employment zone in the country, which contains 300,000 jobs. It feels like we see daily headlines about job cuts related to Toronto Pearson—from front-line security screening jobs, 500 of which were just cut two weeks ago, to advanced roles like air traffic controllers and engineering, or construction roles tied to the massive capital projects that were under way at Pearson.

We represent a vast ecosystem of what were once stable airport jobs that have now been decimated by the impacts of COVID on our sector. Pre-COVID, more than 400 companies operated on the grounds of Toronto Pearson. As well, 68% of our employees resided in Toronto and Peel region, as many of the local MPs represented here would know. These jobs and economic benefits aren't tied to just the area around Pearson. Pre-COVID, the airport contributed 6% of the province's GDP.

We are proud of the role airport workers played in bringing Canadians home at the beginning of the pandemic. Likewise, we are proud of the role we played in ensuring that supply chains remained open for vital cargo like personal protective equipment and vaccines.

Last week, the Prime Minister announced mandatory COVID-19 testing for all international travellers coming into Canada. This is a welcome requirement and it's one that the GTAA and other stakeholders have been recommending in terms of mandatory testing for some time. Arrivals testing began at Pearson on January 6 and was made mandatory by the Province of Ontario for any international travellers remaining in Ontario past this Monday. Studies show that arrivals testing quickly identifies asymptomatic positive travellers and allows them to be referred to public health for proper management. We support a science-based approach with clear standards on testing that can be implemented by Canadian airports. Last June, we moved quickly to introduce our own healthy airport program.

As you know, the aviation sector has been devastated by the impacts of the pandemic, as have many other sectors. At the airport, we have seen a reduction of jobs by approximately 68%. Over and above well-publicized airline layoffs, we've seen, as I mentioned, front-line jobs being reduced. In recent months, Toronto Pearson is experiencing a general decline in passenger numbers in the range of 85% to 90% compared with 2019. With the new restrictions implemented and announced last week, we expect those numbers to be further reduced.

In the third quarter of 2020, our passenger traffic was down 88% from the same period in 2019. Revenues were reduced by 63%. We made the difficult decision in July to reduce our workforce by 27%, eliminating some 500 roles. We also dramatically decreased operating and capital expenditures.

We have borrowed heavily and taken the unprecedented step of asking our bondholders to relieve us from our debt covenants for 2020 and 2021. We have shuttered basically 45% of Toronto Pearson. Unfortunately, the worst doesn't appear to be over. The year has begun with significant additional challenges. These include the emergence of new variants, continued and stringent travel restrictions, stay-at-home orders and general confusion related to testing requirements.

[The Chair, Liberal, Vance Badawey]

You have one minute, Ms. Marshall.

[Hillary Marshall]

I guess what I want to say in particular is that, for many months, we've been asking the federal government to waive rent for 2020 and 2021. The government waived rent for 2020 and has offered a deferral for 2021.

In the interest of getting through this very difficult period, we would ask that a waiver be implemented instead. We have asked that of the government. It reduces our expenses at a time when revenue is seriously impacted. We're urging the government to revisit this decision and provide a rent waiver instead of just a deferral.

Thanks very much for your attention.

[The Chair, Liberal, Vance Badawey]

Thank you, Ms. Marshall. Well done.

We're now going to move on to Pascan Inc. We're going to ask Julian Roberts, as well as Yani Gagnon, to speak.

You have five minutes. The floor is all yours.

[Yani Gagnon, Vice-President and Chief Financial Officer, Pascan inc.]

Good afternoon.

My name is Yani Gagnon, and I am the co-owner of Pascan Aviation. During this presentation, we will share with you the challenges that are unique to regional air transportation. My business partner, Julian Roberts, who is here today, and I would then be happy to answer your questions.

Here is an overview of our company, Pascan Aviation. We are not promoters, but rather certified operators. Our business is fully Canadian-owned, and it is set up in Quebec. We have been operating it for 20 years. Our mission is to connect regions to one another and to large urban centres. We have more than 130 employees and currently offer flights across eastern Quebec and Labrador by serving 10 airports daily.

We have an aircraft fleet consisting of seven 19-seat BAe Jetstream 32s and four 34-seat Saab 340Bs. We will also have an opportunity to acquire another three to six Saab 340Bs in 2021.

We have a proven track record in terms of safety and compliance with Transport Canada. We have not had an accident since the beginning of our operations.

Before the pandemic, we were completing about 80 flight segments a day and transporting over 5,000 passengers a month. However, those figures have dropped by 35%.

We ensure the delivery of essential goods to the regions. We cover postal, medical and commercial needs. We have taken over for Air Canada in a number of regions, especially when it comes to medical needs. We also transport patients and medical staff to the Îles-de-la-Madeleine, Gaspé and Fermont hospitals.

The impact of COVID-19 on air transportation is a global disaster that has led to significant reductions in passenger volume and to dropped air connections, as well as to spiralling operating costs. The industry as a whole must reinvent itself. That will certainly require some time, but the status quo is no longer possible. Most specifically for us, small carriers, COVID-19 has magnified the vulnerabilities of regional air transportation, which existed before the pandemic.

The main purpose of regional air transportation is to serve small communities that are far from major centres. Most of those communities have a population of 25,000 or less, and an air link is a matter of economic survival for them. Therefore, regional air transportation is characterized by low passenger volumes.

Some stakeholders are saying that passenger volume reflects a direct correlation between ticket price and service offering. However, there are limits to that correlation. There are actually market pockets for which we could not generate more volume, even if we were to lower prices by 50% and add 50-seat aircraft. Some markets essentially reflect worker movements, especially in the mining sector.

Our operating cost structure is very high. All sorts of taxes and fees, for which the air carrier is only a collecting agent, account for between 35% and 40% of a ticket's cost. The constant increase in operating costs is also unfortunate. Last fall, for example, Nav Canada increased its fees by 30% unilaterally.

Many people are making the following comparison. They are saying that a plane ticket from Montreal to Sept-Îles costs more than a ticket from Montreal to Paris. Unfortunately, apples are being compared to oranges in this case. On international flights, large aircraft for 300 passengers and up have first class and business class seats that are sold at a high price. We are talking about $3,000 to $7,000 for a return ticket, which covers the total cost of the flight. The rest of the seats account for profit. The regional market is not large enough to support aircraft of that size. What is more, no one will buy a first-class ticket for a flight from Montreal to Sept-Îles.

For air carriers, the commercial risk is tremendous, as operating costs are almost predominantly imposed just before takeoff, regardless of the number of passengers on board. It is clear that various levels of government assuming some of the airport fees could lead to lower ticket prices.

Safety management and compliance with Transport Canada's regulations are critical in aviation. This is also very costly, especially for small airlines like Pascan Aviation. Safety management must be part of the carrier's DNA, and it is not something that is gained overnight. It requires years of experience and safety audits over the years.

[The Chair, Liberal, Vance Badawey]

You have one minute, Mr. Gagnon.

[Yani Gagnon]

Another repercussion of the pandemic is that the largest air carriers have given up on a number of regional destinations they deemed non-profitable or non-strategic. Air Canada even announced its permanent withdrawal in some regions—for example, in Sydney and in Gaspé—owing to low passenger volumes. We need our national air carrier, Air Canada, and its international position has to be improved. However, the government must avoid the constant trap of subsidizing large air carriers to force them to return to the regions and compete unfairly with small carriers. We can serve the majority of regional markets. We don't think of us as Air Canada's competitors. However, we do provide a complementary service.

For instance, Air Canada tends to focus on direct flights, while Pascan provides more options in terms of non-direct flights.

[The Chair, Liberal, Vance Badawey]

Thank you, Mr. Gagnon.

We are now going to move on to Porter Airlines.

Mr. Deluce, the floor is yours for five minutes.

[Robert Deluce, Executive Chairman, Porter Airlines Inc.]

Good afternoon, Mr. Chairman and members of the committee.

Thank you for the invitation to speak on behalf of Porter Airlines and our 1,500 team members.

I will begin by offering a brief overview of Porter’s business, which started in 2006 from Billy Bishop Toronto City Airport as part of an effort to revitalize this transportation asset for the city and country. I’m pleased to say that this has been largely successful, with Porter serving some 22 destinations in Canada and the U.S. as of the beginning of 2020, while operating a fleet of 29 made-in-Canada De Havilland Dash 8-400 aircraft.

As a smaller carrier, Porter contributes greatly to competition on the regional routes it serves. Historically, base airfare prices decrease by approximately 60% or more when Porter enters a market, many of those previously having been served by only one airline. This has been true as Porter started service across Ontario, Quebec and Atlantic Canada, with benefits accruing even to the busiest routes, such as Montreal-Toronto and Ottawa-Toronto.

At the outset of the COVID-19 pandemic, Porter determined that it was in the best interests of our team members, passengers and public health efforts to temporarily suspend operations. While we never imagined at the time that this would be the case, our planes are grounded today and will be for more than a year before operations restart. Currently, we are hopeful that some flights can resume in the first half of 2021, subject to the course of the pandemic and evolving travel restrictions.

Porter has maintained its temporary service suspension longer than other airlines that made similar decisions. While some carriers had low levels of traffic, allowing them to continue operating certain longer-haul flights and maintain minimal levels of service for the country, Porter has been acutely affected because of its regional network, downtown Toronto hub, business traffic focus and exposure to U.S. markets.

The committee has heard how devastating the pandemic has been for airlines, so I will not repeat this information during my statement. I will only emphasize the trauma this situation has caused for so many people in the wider travel industry, from those involved with hotels, attractions and restaurants to travel agencies, airports and taxi drivers. This, of course, includes approximately 90% of Porter team members on temporary layoff.

We want nothing more than an opportunity to begin recalling these workers so they can contribute to rebuilding our business and the wider economy. In this context, government financial assistance is genuinely welcome by airlines and other travel businesses. Ensuring that airlines like Porter, and others that are much smaller, are in a position to contribute to economic recovery, sustain regional connections and provide competition is a benefit to the entire country.

At the same time, we understand that assistance is not a blank cheque. Porter is open to considering conditions being attached to any money made available to airlines by the government, including a more comprehensive approach to passenger refunds. While the government has reasonably tried to balance the interests of passengers and airlines when it comes to refunds, the strain on everyone has become greater as the pandemic drags on. In Porter’s case, we estimate that additional refunds not already provided to our passengers amount to a fraction of 1% of what is outstanding among all airlines in Canada.

The timing of government assistance potentially becoming available at this stage of the crisis may ultimately prove to be beneficial as a means of boosting service levels and economic growth, just as we hope to see vaccines lead to diminishing restrictions on mobility this spring and summer. Smaller markets stand to benefit most immediately from this, with the possibility of routes being re-established and competitive alternatives returning. As this develops, we believe that there is also value in expanding the use of rapid testing at airports as part of a coordinated and comprehensive effort to promote safe travel and facilitate the reopening of the economy and borders.

Porter’s overarching interest regarding potential government assistance is that it be considered equitably. It is crucial that smaller airlines not be disadvantaged at the expense of supporting others with larger interests.

Thank you for your invitation to speak. I would be pleased to expand on any topic mentioned or otherwise of interest to you during the question period.

[The Chair, Liberal, Vance Badawey]

Mr. Deluce, you get the prize today because you were absolutely bang on five minutes. Well done.

I'll now move on to Downsview Aerospace Innovation and Research, DAIR.

We have Ms. Samantha Anderton, as well as Andrew Petrou.

Folks, you have the floor for five minutes.

[Andrew Petrou, Chairman of the Board, Downsview Aerospace Innovation and Research]

Good afternoon, Mr. Chair and members of the committee.

Downsview Aerospace Innovation and Research, also known as DAIR, is a consortium of industry and academic partners working in highly collaborative ways to enable cutting-edge R and D, workforce training and education, and entrepreneurial support for start-ups and SMEs. Together, we are establishing a global aerospace innovation hub for Canada at Downsview Park in Toronto, also the location of the production of the Dash 8-400.

Aerospace is a key sector for Ontario. More than $500 million of the total $1.4 billion that Canada spends on R and D annually is spent in Ontario. More than 200 aerospace firms are responsible for over 44,000 direct and indirect jobs.

We're here today because Canadian aerospace is at a critical juncture.

Prior to the devastating impact of the COVID-19 pandemic, the Canadian aerospace sector had already fallen from fifth place in the world to seventh. As you heard last week from the AIAC, significant challenges from the pandemic are threatening to further exacerbate this trend. Canada is currently losing its highly skilled workforce and homegrown expertise in aerospace to other countries around the world which are heavily investing in this sector.

With aerospace and aviation companies having to make very tough financial decisions, we are anticipating a decrease in essential research and technology spending. Unfortunately, this can and will stagnate the promising work being led by industry and academic partners to pivot and transform this sector, but we don't have to let this happen.

[Samantha Anderton, Executive Director, Downsview Aerospace Innovation and Research]

We believe Canada needs to have a top-down approach to support commercial airlines. This would mean that support would flow to original equipment manufacturers, OEMs, and down the full supply chain, including those companies focused on aircraft maintenance. But, make no mistake, this is only part of the solution.

We also need a bottom-up aerospace framework to foster innovation and collaboration at the SME level. This would spur novel, sustainable technologies in green tech and advanced manufacturing.

Supporting a dynamic, collaborative aerospace innovation ecosystem such as the one we are developing at DAIR would be valuable to all stakeholders. For example, DAIR was able to rapidly respond to support COVID-19 research by working on a project to study how to reduce passenger exposure to the virus. By leveraging our access to an extensive expertise pool, as well as our established relationships with industry and academia, we were able to accelerate funding applications and reduce wait times to initiate and advance this key research. That's the power of collaboration.

Collaboration also helps SMEs to grow by mobilizing their talent and expertise through facilitating knowledge transfer between smaller enterprises and the larger stakeholders such as tier ones and OEMs. SMEs have so much untapped knowledge in key disruptive technologies such as eVTOL, hybrid-electric propulsion and UAVs.

We can seize this chance to differentiate ourselves as Canadians if we focus our energy on these novel technologies now. We can also leverage the similarities the Canadian aerospace sector has with other industries, such as the automotive industry, when it comes to artificial intelligence, machine learning, the Internet of things, advanced manufacturing, and big data.

More incentives have to be created to encourage working together rather than in silos. This will benefit all of Canada. Strengthening investments in R and D now would not only offer long-term benefits, but it would also provide the ability to pivot out of the COVID pandemic to emerge a stronger, more resilient aerospace sector. This will have tangible results in all levels of our industry, from airlines to OEMs and SMEs across Canada.

[The Chair, Liberal, Vance Badawey]

You have one minute, folks.

[Andrew Petrou]

Lastly, we want to draw your attention to the short- and long-term need to work together to cultivate a highly skilled workforce in aerospace. Organizations such as DAIR can support the government in engaging our students, starting from the ground up. This is required from elementary school students all the way up to those needing mid-career training through rescaling and upscaling opportunities.

Promoting science and technology to help facilitate a wide exposure to STEM opportunities will help grow a valuable culture of innovation. This will facilitate key populations, including marginalized communities, to gain exposure to an industry that offers rewarding, high-quality careers.

In closing, if we act now, Canada can protect and support its global leadership in advanced manufacturing, skills training, and research and development. This is about supporting Canadians. It's about the people and securing Canada's position as a global leader in aerospace.

Thank you, Mr. Chair.

[The Chair, Liberal, Vance Badawey]

Thank you, and well done to both of you.

We're now going to move on to our final presentation, to witnesses Mr. Ray Bohn, president and chief executive officer of Nav Canada; and Mr. Jonathan Bagg, director, stakeholder and industry relations, also from Nav Canada.

Gentlemen, welcome. You have the floor for five minutes.

[Ray Bohn, President and Chief Executive Officer, Nav Canada]

Thank you, Mr. Chair.

Good afternoon, everyone.

I am Raymond Bohn, president and chief executive officer of Nav Canada. I am joined today by Jonathan Bagg, director of stakeholder and industry relations. I would like to start by thanking the chair, vice-chairs and members of the Standing Committee on Transport, Infrastructure and Communities for the opportunity to appear this afternoon.

As the country's private not-for-profit provider of air navigation services, Nav Canada is responsible for the safe and efficient movement of aircraft in all Canadian-controlled airspace. Nav Canada's mandate is achieved primarily through the delivery of air traffic control and flight information services; the maintenance, update and publishing of aeronautical information products; the reliable provision of communications, navigation and surveillance infrastructure; and the 24-7 availability of advanced air traffic management systems, many of which we develop right here in Canada and export around the world.

We are responsible for more than 18 million square kilometres of airspace from coast to coast to coast, reaching halfway across the North Atlantic, what is usually the busiest oceanic airspace in the world. Thanks to the work of our more than 4,400 dedicated employees, operating out of more than 100 operational facilities throughout the country, Canada boasts one of the best air traffic management safety records in the world.

It should come as no surprise to members of this committee that Nav Canada has not been immune to the severe impacts that COVID-19 has had on our industry. As traffic levels have declined domestically and globally, so too have our revenues, which are based on service charges paid by our customers—the airlines and aircraft operators who utilize our services.

For the first quarter of our current fiscal year, which ran from September to November 2020, weighted charging units, which are a measure that reflects the number of flights, aircraft size and distance flown in Canadian airspace, decreased by 58.8% compared to the previous year. Our net loss for last fiscal year totalled $348 million. We anticipate a loss of $295 million for the current fiscal year, though I should note that this is based on forecasts made prior to the travel restrictions announced Friday.

Nav Canada took action early in the pandemic to significantly reduce operating costs and capital spending while continuing to ensure that essential air navigation services remained available to support our customers and their critical operations.

We had to make the difficult decision to increase service charges for our fiscal year 2021 after exhausting all available options. In doing so, we worked to minimize the impact of a rate change by using our debt capacity and our liquidity to support our customers by deferring payment of the increase, interest-free, over a five-year period.

Like many in the industry, Nav Canada had to make the very difficult decision to reduce the size of its workforce, eliminating more than 720 positions or 14% of our pre-COVID workforce through implementation of a voluntary retirement program, followed by involuntary reductions in staffing of temporary and permanent positions, impacting all areas of our business.

Nav Canada recently launched numerous aeronautical studies to safely streamline operations at airport locations where we provide air traffic services. While our studies are still under way, it is important to note that any change to our level of service will be made only after careful assessment of all safety factors, and following concurrence with our safety regulator, Transport Canada.

From the outset of the pandemic, all of our decisions have been made with a view to preserving the integrity of the air navigation system and ensuring aircraft safety operations now and well into the future.

A consistent theme we have heard from our stakeholders is the desire for co-operation with the federal government on solutions that will not only help the industry weather and recover from the current crisis, but also position the industry to build a pathway to future economic growth.

We believe that the federal government is well positioned to take account of this broad and complex situation and to deliver a balanced set of supports that can help enable the economic potential of the industry.

[The Chair, Liberal, Vance Badawey]

You have one minute, Mr. Bohn.

[Ray Bohn]

There is no doubt that the aviation sector will continue to contribute significantly to the fabric of our nation, connecting Canadians to each other and the world, and fuelling our economy. At the same time, we must recognize that industry forecasts indicate that a return to 2019 air traffic levels will likely take several years to achieve.

Industry and government must work in lockstep now more than ever to take action on future risks and to drive solutions to the current public health and financial crises. In this context, Nav Canada appreciates the opportunity to be a part of the dialogue as this committee undertakes its study on the impacts of COVID-19 on the transportation sector.

Thank you, Mr. Chair. I welcome questions from members of the committee.

[The Chair, Liberal, Vance Badawey]

Thank you, Mr. Bohn. That was well done.

We're now going to move on to our first round of questions. We'll first have Mrs. Kusie for the CPC, followed by Mr. Sidhu for the Liberal Party, followed by Mr. Barsalou-Duval for the Bloc, and then Mr. Masse for the NDP.

You'll have six minutes each.

Mrs. Kusie, you have the floor.

[Stephanie Kusie, Conservative, Calgary Midnapore, AB]

Thank you, Mr. Chair.

I'm going to start by presenting the motion that I gave notice of. I think it's very timely, as much as we have these witnesses here today, all of whom I'm very grateful to. I met with many of them.

I thank the witnesses.

I just feel that this really is a project critical to the national interest, and as such, I will present this motion here at this time. As you read when it was put on notice, the motion itself is:

That pursuant to Standing Order 108(2) the Standing Committee on Transport, Infrastructure and Communities study the cancellation of the Keystone XL pipeline; that this study focus on (a) the devastating loss of jobs and investment across Canada in all sectors that supply the energy sector, (b) the environmental impact of the United States purchasing foreign oil from nations with terrible environmental records, and (c) the impact the cancellation of this project will have on Canada’s economic recovery from COVID-19; that the committee invite relevant witnesses, including representatives of industries and workers affected, as well as the Minister of Foreign Affairs, the Minister of Natural Resources, the Minister of International Trade and the Minister of Environment and Climate Change; that the Ministers appear separately for not less than two hours each; that these meetings be televised; that six meetings be allocated for this study; and that following this study a report with recommendations be presented to the House of Commons.

Mr. Chair, I really think that if we think about what this committee is about, it's about transportation, infrastructure and communities. I will say that this incredible project.... As the former Canadian consul to Dallas, Texas from 2010 until 2013, I advocated hard for this project in the Obama environment. Therefore, with a change in administration for our neighbours to the south, I was hopeful that finally this project's time would come.

Unfortunately, the hemming and hawing of this government and an eventual change in administration to the south led to its demise, with the result of at least tens of thousands of jobs.... Eleven thousand was the last number I saw, but it's far beyond that. It's tens of thousands if you add everyone implicated.

Really, it is about pipelines being forms of transportation and critical infrastructure to our nation. It's certainly about not only the communities that will be provided with good jobs as a result of this project, but also those that the pipeline will service, those it will bring good Canadian fuel to.

I would add finally, Mr. Chair, that this is more critical this week than ever before, as we see the demise of Line 5—again, at the hands of our neighbours to the south. If only we had advocated for energy when we had the opportunity.... This is something that this government continues to fail to do.

With all of that, Mr. Chair, thank you for your patience as I present this. I lay this at the feet of the committee with the hope that this committee will recognize the importance of this project and what its cancellation means, and with the hope that we can study this as a committee for the benefit of each and every Canadian across this country.

Thank you, Mr. Chair.