moved:
That Bill C-20, an act respecting the commercialization of civil air navigation services, be referred forthwith to the Standing Committee on Transport.
Mr. Speaker, I rise in support of the motion to refer the civil air navigation services commercialization act to the Standing Committee on Transport. As members know, the navigation system is the network of air traffic control services, flight information services, aviation weather services and navigational aids necessary for the safe and expeditious movement of aircraft across the country.
It is customary for the underlying principle of a bill to be debated before it is referred to the committee. That debate usually occurs at second reading. However, in the case of this legislation the debate has taken place over the course of the past two years, and a very extensive debate it has been.
The government first announced it would study commercialization of the air navigation system in the 1994 budget. Hon. members debated the merits of commercialization at that time.
The not for profit model set out in the legislation was chosen by an advisory committee composed of users, unions and other stakeholders. The committee studied seven different options for commercialization. It consulted with interested parties across Canada. Many Canadians from coast to coast debated the merits of commercialization during the consultative process. I pay tribute to the energy and dedication displayed by members of the committee from all sides of the House in that exercise.
The government announced its decision to proceed with commercialization of air navigation in the 1995 budget. Hon. members were again afforded the opportunity to debate this decision. There has been already considerable debate on the underlying principle of this bill. Because so many have been given the chance to contribute there is today broad support for this piece of legislation.
As the House knows, Nav Canada was incorporated in May 1995 under the part II of the Canada Corporations Act for the purpose of developing, operating and maintaining the air navigation system. Highly successful negotiations have resulted in an agreement in principle between the government, Nav Canada and the involved unions. Under this agreement Transport Canada will transfer the navigation system to Nav Canada for $1.5 billion. This will make a significant contribution to the government's deficit reduction efforts, efforts to which the governor general in the speech from the throne paid tribute a few weeks ago.
Subject to the review and the approval of Parliament and the receipt of royal assent, this transfer is set for July 1 this year, a very significant date in Canadian history.
Nav Canada will receive all the assets used by Transport Canada in the provision of air navigation services. This includes land, equipment and other items required to ensure the system's continued safe and effective operation.
After the transfer Nav Canada will be responsible for providing all of the air navigation services currently provided by Transport Canada including air traffic services, community aerodrome radio services, aeronautical telecommunications, aeronautical information services and aviation weather services.
Transport Canada will be responsible for ensuring the continued safe provision of these services. The new safety regulations developed specifically to address the commercialization of the air
navigation system will be in place before the transfer happens. Transport Canada will monitor and enforce these regulations in much the same way it now does with the air carrier industry.
Nav Canada will be required to have an internal safety management program. In addition, the corporation will not be permitted to reduce the service it provides where it would jeopardize safety. Furthermore, the Aeronautics Act which establishes the regulatory framework to maintain safety in the aviation industry will always take precedence over the commercialization legislation.
I mentioned a moment ago that we have reached agreement in principle with all parties in this project. I underline this includes unprecedented support from the very people who will be most affected by commercialization, the employees working in the system itself. Their support is outlined in a memorandum of understanding between Transport Canada and the employee bargaining agents. Under this memorandum, which was signed last September, current collective agreements will continue to apply. Bargaining agents will have successor rights until Nav Canada and its employees reach their own agreements between each other.
Those who use the air navigational system have likewise endorsed this legislation, and no wonder. The government projects that costs will come down, possibly within two to three years, as private sector management principles take hold of the system, as subsidies are phased out and as the regulations governing the air navigation system are streamlined.
There are concerns of isolated communities and they are reflected in this legislation as well. The act ensures continued provision of air navigational services to northern and remote communities. It also includes a process to involve provincial and territorial governments should any service reductions be proposed by Nav Canada in the future.
Following established practice and in keeping with Nav Canada's national role, the provisions of the Official Languages Act will also apply throughout Nav Canada as if it were a federal institution.
Nav Canada must maintain services to humanitarian or emergency flights in the event of any work stoppage that might occur.
The commercialization of the air navigation system is a key part in the government's efforts to modernize the Canadian transportation system. It complements our other transportation initiatives including the commercialization of federal airports, seaports and harbours, the privatization of Canadian National Railways, the commercialization of ferry services and the conversion of Transport Canada's motor vehicle test centre to a government owned but contractor operated facility.
Commercialization of the air navigation system is consistent also with international trends such as those in Australia, New
Zealand, Germany, South Africa and Ireland. All those countries have opted for some form of commercial air navigation during the past decade.
This transaction is one of the largest commercialization initiatives undertaken by the federal government. It is a model of the co-operation required between public and private sectors. It is also a very visible demonstration of the government's commitment to streamlining its operations and reducing its expenditures as well as its determination to stop providing services that can be better provided by the private sector.
That is a good deal for all Canadians, for taxpayers, by making a $1.5 billion contribution to reducing the federal deficit. It is good for the industry by maintaining safety while increasing the system's ability to respond to changed demands and new technologies.
It is good for users by providing more efficient and cost effective operations. It is good for the system's employees by offering them the opportunity to continue to work and contribute in a new and challenging work environment. It is also good for Nav Canada by setting the stage for it to operate one of the world's best run and safest air navigation systems.
I urge all hon. members to approve the motion to refer the civil air navigation services commercialization act directly to committee. Let us speed up the process of ensuring continued safe, efficient and flexible air navigation services for Canadians.