Evidence of meeting #17 for Transport, Infrastructure and Communities in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was travel.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Michael Keenan  Deputy Minister, Department of Transport
Lawrence Hanson  Assistant Deputy Minister, Policy, Department of Transport
Anuradha Marisetti  Assistant Deputy Minister, Programs, Department of Transport
Kevin Brosseau  Assistant Deputy Minister, Safety and Security, Department of Transport

3:35 p.m.

Liberal

The Chair Liberal Vance Badawey

Members of the committee, I welcome all of you and the witnesses, Minister Alghabra and his team, to meeting number 17 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 will outline a few rules to follow. First off, 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 the directives from the Board of Internal Economy regarding masking and health protocols.

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 microphones will be controlled as normal by a 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 speaking list, the committee clerk and I will do the very 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) and the motion adopted by the committee on Tuesday, January 26, 2021, the committee is meeting today to continue its study on the impact of COVID-19 on the aviation sector.

It's my pleasure to welcome our witnesses. We have, first of all, the Honourable Omar Alghabra, member of Parliament and Minister of Transport. Along with Minister Alghabra, we have officials from the Department of Transport: Mr. Michael Keenan, deputy minister; Mr. Kevin Brosseau, assistant deputy minister of safety and security; Mr. Lawrence Hanson, assistant deputy minister of policy; and Anuradha Marisetti, assistant deputy minister of programs.

With that, I'm going to hand the floor over to Minister Alghabra.

Minister, you have five minutes for your opening comments.

February 18th, 2021 / 3:35 p.m.

Mississauga Centre Ontario

Liberal

Omar Alghabra LiberalMinister of Transport

Thank you very much, Mr. Chair and committee members, for inviting me to contribute to the committee's study of the impact of COVID-19 on Canada's transport sector.

I deeply respect the work of this committee. I spend many hours in physical and virtual committee rooms like this, and I know the importance of the work that is being done in them. It is an honour to appear before you for the first time as Minister of Transport, and I look forward to working with you to improve Canada's transportation system.

Since the earliest days of the COVID-19 pandemic, Transport Canada has worked with the transportation sector to introduce a layered system of measures and guidance to protect Canadians and those working in the transportation and shipping sectors.

Recently, in an effort to further curb the spread of the virus and its new variants into Canada, we added new rules on international travel. Under these new rules, all international passenger flights must now land at one of Canada's four largest airports. Air travellers must provide proof of a negative COVID-19 molecular test before boarding an international flight to Canada. Upon arrival, they must take another COVID-19 molecular test and reserve a room in a hotel approved by the Government of Canada for three nights at their own expense while awaiting the test results. In addition, the government and Canada's airlines have agreed to suspend all flights to and from Mexico and Carribean countries until April 30 of this year. These measures have been informed by the latest science and data as well as the guidance of public health agencies.

The Government of Canada knows that the pandemic is also disproportionately affecting remote and northern communities, which depend on small air carriers for essential services. That is why we have announced funding of up to $191.3 million for provinces and territories to ensure that remote, fly-in communities continue to receive essential supplies.

To help mitigate the decline in business at Canadian airports, we've also provided rent relief for the 21 airport authorities that have ground leases with the federal government. Most recently, through the fall economic statement, an additional $1.1 billion in financial support for the air sector was announced. This will be provided through a series of targeted measures designed to support regional connectivity, critical infrastructure investments and the continued operation of Canada's airports.

As we look to the future, we know that a strong and competitive air transport industry is vital for Canada's economic recovery. Allow me to address what I know is on the minds of many Canadians, particularly those working in the aviation sector. The sector has some of the world's best-trained and committed employees. I know many are anxious and frustrated about the fact that negotiations on financial help for the sector have not yet concluded. To those Canadians who have written to me, know that I'm acutely aware of the toll this crisis has taken on your lives. COVID restrictions have dramatically and negatively impacted the sector. Nobody wants a return to pre-COVID normalcy for the sector more than me.

That being said, I'm also aware that any financial assistance package needs to address the concerns of Canadians more broadly. We have to consider the matter of refunds for air travellers who purchased tickets but were unable to use them due to COVID and the issues of communities that have lost regional flights connecting them to the rest of the country. We therefore have a responsibility to take the time necessary to reach an agreement with the airlines that will be broadly supported by Canadians. That depends on all parties at the table. It is also in everyone's interest that we do so.

Among the other tasks outlined in my mandate letter, I've been asked to promote Canada's green and innovative aerospace sector, sustain regional air infrastructure, support regional economic development and enable growth in other key sectors such as tourism.

In addition, I will work with my colleagues to make sure that we put in place recommendations in response to the PS752 tragedy. I have personally met with the families on many occasions and remain committed to supporting them and doing everything we can so that a similar tragedy never happens again.

Finally, the Prime Minister has made it clear that I must continue to make progress on the commitments laid out in Minister Garneau's 2019 mandate letter. I look forward to building on the excellent work of Minister Garneau.

Colleagues, this is just a quick summary of the work that is ahead of us. Thank you once again for giving me the time to appear before you.

Before I hand it back over to you, Mr. Chair, I want to take a moment to express my gratitude to officials within the Department of Transport and to staff within the minister's office who have been working tirelessly to support me over the last four weeks since my appointment to make sure that I'm up to speed and ready for the work ahead.

Thank you, Mr. Chair.

3:45 p.m.

Liberal

The Chair Liberal Vance Badawey

Thank you, Minister Alghabra.

We are now going to start with the speaking order for the first round. We have Ms. Kusie for the Conservatives. Following her, we have Mr. El-Khoury for the Liberals. Following Mr. El-Khoury, we have Mr. Barsalou-Duval for the Bloc, and following Mr. Barsalou-Duval, we have Mr. Bachrach for the NDP.

Ms. Kusie, you have the floor for six minutes.

3:45 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Thank you, Chair.

Welcome, Minister. Congratulations on your appointment. It's very significant.

It was reported in the press on Monday, in The Globe and Mail, that a plan is coming. Canadians, workers and the aviation sector was devastated when this news came out of Reuters in December and again they were disappointed.

Is this true? Is there a plan coming imminently, Minister?

3:45 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

I want to thank my colleague, Ms. Kusie, for her kind remarks. I had a chance to speak with her right after my appointment, as well as with other critics from other parties. It's very important for me to remain in touch with opposition members to use their insights in my decision-making process.

Let me comment on her question. The airline sector is incredibly important for Canada's economy and security. We recognize that the pandemic has disproportionately and massively impacted—

3:45 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Thank you, Minister. We don't have a lot of time.

Is there a plan coming imminently, yes or no? Can the airline sector expect a plan imminently, which they've been asking for for a year? Give a yes or no, please, Minister.

3:45 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

I said in my opening remarks that I want to see the deal happen as quickly as possible, but there are also other parties at the table, so we are negotiating in quick order and are in discussions with the airline sector. I hope that it happens in short order, but there are other players here at the table. We hope we can reach an agreement soon.

3:45 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Can you give us a date for when we can expect this plan, please?

3:45 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

As I said, there are other factors here including the other parties that are at the table. I'm not able to give a specific date. I'm not able to prejudge the outcome yet. All I can say is that I and our government are committed to having this deal as quickly as possible.

3:45 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Thank you for your work on that.

You discussed the plan a little in your opening statement, but I'm going to go back to parts of it.

Can you commit that it will restore regional routes and lost service to communities who have been disconnected from coast to coast to coast, as was mentioned by your own colleague, the MP for Saint John-Rothesay, today in statements? Can you confirm that this plan will incur the restoration of regional routes, please, Minister?

3:45 p.m.

Liberal

The Chair Liberal Vance Badawey

I'm sorry, Mrs. Kusie.

Minister Alghabra, the interpreters are asking me if you can bring your mike up just a tad—maybe a centimetre. Thank you, Minister.

Thank you, Ms. Kusie.

Minister, the floor is yours

3:45 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

I offer my apologies to the interpreters.

As I stated in my opening remarks, restoring regional routes is part of the consideration of this negotiation. At this moment, I'm not able to prejudge the specifics exactly, but I could tell you that it's a massive consideration of the deal. It is an important part of the deal and it's necessary for public support.

3:45 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Thank you, Minister.

Will the plan protect workers? Will we ensure that there are no further job losses as a result of this money potentially being distributed to airlines? Can you ensure that this plan will protect workers?

3:45 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

At the heart of our negotiations with major airlines is protecting jobs and restoring regional routes, and making sure the airline sector is resilient. One way of making sure the airline sector is resilient is that we maintain those highly trained and highly skilled jobs.

3:45 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Excellent.

You addressed this in your opening remarks, Minister, but again, I would like you to confirm it for the Canadian public. For all of those Canadians who are thousands of dollars out of pocket, will the plan ensure that passengers receive refunds for cancelled flights, please?

3:45 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

As I again mentioned in my opening remarks, refunds for passengers who lost trips because of COVID restrictions are a critical element of our discussions. It's regional routes. It's jobs. It's refunds. All of those aspects are taken into account in the ongoing discussions with the airlines.

3:50 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Excellent. Thank you for recognizing that, Minister.

Minister, can you also ensure that airlines are not allowed to claw back travel agents' commissions as a result of this plan?

3:50 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

I can also add that the aspect of independent travel agents' refunds or commissions are a part of the discussions as we speak.

3:50 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Excellent.

Finally, can you please ensure and can you commit that NAV CANADA will maintain adequate service levels for air traffic controls as a result of this plan?

3:50 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

I think my friends and my colleagues know that NAV CANADA is an independent private organization that operates at arm's length. Having said that, let me just say that I am watching it very carefully, watching the decisions that NAV CANADA is going to make very carefully. There are ongoing studies right now on the level of service, and Transport Canada will review any decision that may have an impact on safety.

3:50 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Thank you, Minister.

Minister, since you are new, I'm certain you're aware that since March 12 your government has been saying it was looking into mitigating the impacts of COVID-19 on the aviation sector with some type of support, yet discussions didn't start until November 8, 2020.

Can I ask you, Minister, what took your government so long to act in favour of this sector and attempt to help this airline sector and to help connect Canadians with a strong and viable airline sector? Why did it take so long, Minister, to come to this point where you are ready to release this plan and all of these commitments you have made today?

3:50 p.m.

Liberal

Omar Alghabra Liberal Mississauga Centre, ON

Let me just say that, since the beginning of the pandemic, our government acted very quickly and decisively with broad-based support programs that focused on Canadians and Canadian workers and businesses. We've introduced measures like CERB. We've introduced measures like the wage subsidy, which supported everyone in Canada, and by the way, the airline sector alone benefited up to $1.7 billion or $1.8 billion from the wage subsidy. There are additional measures, which I also mentioned in my opening remarks, that the airline sector has been receiving.

Having said that, I acknowledge the second wave, the introduction of new variants of COVID and the implementation of new travel measures, which added a further burden on the airline sector, have introduced a new sense of urgency and a specific need for measures for the airline sector. That's why late last fall, last November, we started discussions with the airlines on particular sector supports for them.

3:50 p.m.

Liberal

The Chair Liberal Vance Badawey

Thank you, Ms. Kusie.

Thank you, Minister Alghabra.

3:50 p.m.

Conservative

Stephanie Kusie Conservative Calgary Midnapore, AB

Thank you, Chair.

Thank you, Minister.

3:50 p.m.

Liberal

The Chair Liberal Vance Badawey

We're now going to move on to Mr. El-Khoury.

Mr. El-Khoury, you have the floor for six minutes.