Mr. Speaker, the hon. member for Beauport-Montmorency-Orléans wants the government to require the railway companies to put lines that have been ordered abandoned up for sale.
I contend the lines have already been advertised as available for sale. The fact they have been subjected to the long abandonment process which is now in place should be seen as a clear indication the railways do not want them.
Currently there are only five line segments that fall into the category defined by the member's motion. The CP Cornwall subdivision from Soulanges, Quebec to Cornwall, Ontario was approved by the National Transportation Agency for abandonment on December 27 of this year.
The CP Chalk River subdivision from Smiths Falls to Pembroke is scheduled for abandonment on November 19 next, as are the CP Chalk River and North Bay subdivisions from Petawawa to Mattawa, Ontario. A segment of the CN Chatham subdivision between Bloomfield and Tucumseh, Ontario is to be abandoned on July 14, 1996. Finally, the agency has ordered CN to abandon the segment of the Newmarket subdivision between Barry and Longford, Ontario on September 21 next year.
It should be noted that VIA has already expressed interest in acquiring the Chatham subdivision from CN, and the Ontario government has held and is holding discussions with CN regarding the Newmarket subdivision.
As is clear even from the wording of the motion, Parliament has delegated the responsibility for regulating rail line abandonments and conveyance to the National Transportation Agency in accordance with the provisions of the National Transportation Act, 1987. Briefly, the agency's powers under the act extend to the receiving and processing of abandonment applications. The criteria for reaching an abandonment decision are set out in the act. Any line abandonment application results in an abandonment order if there is no opposition to that abandonment.
However, if there is opposition expressed by anyone, the agency must publish the actual losses incurred from the operation of the line. Based on traffic and financial information provided by the railways and evidence submitted by intervenors in writing or at public hearings, it must make a determination as to whether operation of the line is economic or uneconomic.
If the agency finds the line is economic, the application is dismissed. Where the agency finds the line is uneconomic it is then required to make a further determination as to whether there is any reasonable probability that it could become economic in the foreseeable future. If not, the agency must order abandonment. If yes, the agency must order continuation of operations over the line if it is in the public interest.
For lines ordered continued in the public interest, the agency is required to reconsider the abandonment application at least once every three years. The agency is given some discretion in fixing abandonment dates to not less that 30 days or not more than one year after the date of an abandonment order. If VIA operates over the line the abandonment date is fixed at one year after the date of the order.
The governor in council has powers under the abandonment provisions to postpone the date of abandonment if certain criteria can be satisfied. This is in addition to powers accorded under section 64, whereby the governor in council can rescind or vary any agency order, decision, rule or regulation.
As members may have noticed neither the agency, the minister nor the governor in council has power to issue orders to the railways with respect to what properties they should put up for sale and when they should do so. It has always been possible for other governments, as my colleague from Rainy River said, to take an active role in promoting the sale of a line, or even to purchase the line itself.
No other business sector or mode of transportation is subject to such strict regulation of exit as has been imposed on the railway industry. With the enactment of the Canada Transportation Act, the government hopes to place the responsibility for rail rationalization where it belongs, with the railway companies.
The decision to withdraw from a certain segment of business is a commercial decision and does not justify government intervention. For example, if a trucking firm decides it no longer wants to serve a particular city because it is losing money, it simply stops going there. Why should a railway company not have the same freedom? If a grocery chain decides it wants to close a store at a particular location and possibly open one at a more profitable location, the government does not interfere. Why should that same government prevent a railway company from doing the same thing? This government does not exist to tell competing businesses such as transportation companies how to conduct their business.
It is clear there is no overriding reason why the government cannot comply with the member's Motion 494. The member will find that the advanced publicity regarding railway rationalization plans required under the Canada Transportation Act fulfils the general intent of his motion.
I appreciate the member's interest in this important topic. We are at a stage where we are moving from one railway regime to another. There are difficulties inevitably involved with that transition.
The decisions made are very important indeed. To that extent I greatly appreciate the member's interest. However, I argue that his concerns are well met under the existing legislation.