Mr. Speaker, I rise to speak to the motion to refer Bill C-101 to committee prior to second reading.
This massive document is supposed to be the first step in moving toward a rail system that will survive into the 21st century. It falls a little short. The rail transportation system has undergone major changes in the past decades but nothing compared to what is needed to ensure its future contributions to Canada's transportation needs.
The end of the Crow signalled the end of federal government subsidization of the railway companies. The rail companies must now be wholly dependent upon consumers paying for their services which is a novel idea in a country that has historically fostered government dependency.
We commend the Liberal government for realizing that changes must take place in the rail industry, however there must be more than just a realization that changes must be made. Tinkering with the rail system will not get to the route of the problem.
In the spring session we saw a number of bills rammed through the House without proper analysis.
Bill C-89, the commercialization of CN Rail, was sent to committee directly following first reading. In theory this should have allowed the committee to seriously examine the legislation and make amendments prior to second reading. In practice, this was smoke and mirrors and referral to committee was a ploy to allow rapid passage of the bill by short circuiting debate.
There should have been an opportunity to analyse the bill in detail but that never happened. The Liberal majority had no interest in even debating proposed amendments, much less giving them serious consideration. It now appears that Bill C-101 may be following the same fast track taken by Bill C-89.
Other bills that followed a similar process in the spring session were Bill C-64 on employment equity and Bill C-69 on electoral boundaries. There were some amendments on that one but they were only Liberal amendments and then it was fast tracked through. Another was Bill C-91, reorganization of the Federal Business Development Bank, and on and on.
The Reform Party will not be conned again into supporting this devious strategy. Bill C-101 has enormous implications for rail transportation in this country and it deserves serious assessment which it will not get if the government spirits it away to one of its neutered committees where the Liberals and the Bloc can, as usual, collude. They do not have to take seriously or even consider the smallest changes which we in the real opposition might propose.
The Reform Party has categorically stated numerous times that distortions in the marketplace caused by subsidies and regulations must be removed. Although subsidies to the rail companies ended with the death of the Crow, many of the regulations will remain in place.
I am going to briefly outline a number of concerns that Reform has with Bill C-101 with regard specifically to the agricultural sector. The legislation as it now stands calls for statutory review of the freight rate cap four years after the act comes into force. It will then be determined by the minister whether or not to repeal the cap and move toward a more market oriented system. It has been
suggested that because a cap is a double edged sword, rail companies will automatically charge the maximum freight allowed for as long as they can.
The Reform Party supports the move away from a regulated system toward a system where freight rates are freely negotiated between shippers and carriers. Having a maximum rate does little in the way of promoting efficiencies in the industry.
We accept the need for a transition period between regulated rates and those determined through competition. This should be accomplished in the shortest possible time. Four years as originally proposed is ample, more than ample.
A less regulated system will allow for more efficient rail transportation. Rail line rationalization of high cost, low volume branch lines will permit an overall reduction of system costs. Several grain companies and farmer owned groups are already preparing for this type of system by building high throughput elevators on economically viable rail lines.
With respect to the creation of short lines, these should operate without government funding in locations where they will provide a viable cost effective alternative to other means of transportation. Short lines must be allowed to compete with other carriers on a level economic playing field. If they cannot compete, then they should not exist.
There are competitive short lines in Canada. The line operated by Railtex between Truro and Sydney, Nova Scotia, the Cape Breton and Central Nova Scotia Railway, carries coal, steel and general freight. Last year it had a profit of more than $3 million which was shared among the owners and employees. A second success story is the 70-mile Goderich-Exeter Railway, also operated by Railtex.
Efficient cost conscious short lines work even when they are grain dependent. A couple of good examples are the little Southern Rails Co-operative in southern Saskatchewan and the 114-mile Northeast Kansas and Missouri line south of the border.
A glaring fault in Bill C-101 is that under the proposed process for discontinuance, a railway company abandoning a branch line will be able to stifle competition by refusing to negotiate seriously with prospective buyers who want to operate a short line, notwithstanding section 144(3) which is window dressing. Canadian taxpayers, having financed these branch lines through the rehabilitation program in the 1970s and 1980s, have a very legitimate stake in this process.
In order for a competitive transportation system to develop, cumbersome regulations and restraints must be lifted in all sectors. This is very evident in the marketing and transporting of grain. A large number of producers and shippers close to the United States no longer want to be held captive by Canadian rail companies. Many farmers in southwestern Saskatchewan want to see more Canadian grain shipped on the U.S. rail system in order to take advantage of the efficient and economical elevation and terminal facilities south of the border. This would indirectly result in a more competitive environment for Canadian railways especially where, as in my riding, one carrier has a monopoly.
In summary, there are a number of stakeholders with legitimate concerns about the proposed legislation. It is essential that these concerns be heard, reviewed and assessed accordingly. If the referral process to committee is just more smoke and mirrors on the part of the Liberals, then there is very little reason for the bill to go to committee.
The Reform Party wants the consideration of legislation to be meaningful and open to all stakeholders. It therefore opposes the fast track ploy.