Mr. Speaker, I am pleased to speak on Bill C-14, previously known as Bill C-101, as it has some direct impact on the western provinces and certainly my province of Saskatchewan.
I believe the proposed legislation is very constructive, creative and in a manner allows for unnecessary regulations and overlap to be removed. It places greater reliance on parties to negotiate their own solutions on commercial and economic issues and reduce, wherever possible, reliance on regulatory decision making in such matters.
In my view, this wisely places the matters of competition and monopoly in the realm of other appropriate legislation such as the Competition Act.
A number of places were uncovered where general business laws such as the Canada Business Corporations Act would be used instead of having specialized laws for transportation and companies. We wanted to reduce overlap and regulation. These matters were covered adequately by some other body.
This also makes it simpler for stakeholders who might otherwise be faced with confusion or who are burdened with many different pieces of legislation or regulation. Overall the new act will reduce the costly burden of excess regulation and will ensure the long term viability of Canada's transportation system.
First and foremost in my mind is the concern of my constituents about the rail sector. In this area alone, the legislation will reduce government intervention for approvals and decisions on railway actions, limiting them from 200 to approximately 40.
Although the bill is not completely satisfactory to either the railways or the shippers, it serves after months of public and open consultation to strike a compromise.
The amendments brought to the bill were after considerable work by the Standing Committee on Transport. Considerable consultation was undertaken with all the stakeholders. Because of the consultation, equilibrium and balance has been achieved. The bill has effectively addressed the need for balance between the marketplace and government policy issues and what must remain a matter for the regulator to be involved in.
I turn to some matters that drew considerable attention and fire during the debate from western stakeholders. I do this to demonstrate to the House that concerns have been listened to and changes have been made and to reassure western constituents they have not been hung out to dry in the process.
I wish to focus on three clauses that got the most attention while I travelled throughout the riding and when witnesses appeared before the standing committee. They were clause 27(2), formerly known as significant prejudice; clause 34(1), frivolous and vexatious arguments or applications; and clause 113, now known as clause 112, which obligated the agency to ensure any rates or service levels it sets are commercially fair and reasonable.
Let me deal first with clause 27(2). The clause was reworded, although some have missed it, to clear up what had been a problem. It provides guidance to the agency in ultimately rendering decisions. It does not act is a pretest as some had thought. The words "significant prejudice" were replaced by the words "substantial commercial harm", terms that are more understood in law. The new clauses 3 and 5 clearly signify and make clear that this does not apply to final offer arbitration.
In standing committee transcripts Cargill, a major shipper, was asked if these changes would satisfy it. Cargill responded positively. These amendments were adopted unanimously by all the parties in the standing committee.
Regarding the phrase "frivolous and vexatious arguments" many people in shipping organizations raised concerns. That clause has been removed from the bill.
The third major concern is clause 112. "Commercially fair and reasonable" is a phrase that has been heavily investigated and debated throughout the process. There are some concerns raised by the pools. I recall there was a question of commercially fair and reasonable to whom and in whose perspective? The government motion at report stage now adds some clarifying words to this provision. The words "to all parties" answer the questions of the shippers. This underscores the obligation that the agency's set rates must meet the test of fairness and provide the users with rail service.
I do not want to leave the House with the impression that I have conveniently grabbed all of these clauses and I quote them simply to support the position of the government. I have consulted widely with stakeholders and with my constituents on the issue. I feel confident that now is the time to move forward with the bill.
Let me quickly say a few words about the provisions of the bill as they relate to the grain interests in the country. Many witnesses who came forward to the standing committee were pleased that the government seemed to recognize that competition and market forces were not perfect in the grain sector and that a period of transition was needed. The changes that were made, especially in section 27, go a long way to remove the remaining fears of shippers, including grain shippers, about the issue. As well as the protection afforded all shippers under the new legislation, grain shippers will enjoy extra provisions such as maximum rates and a comprehensive hopper car allocation.
The Minister of Transport has indicated that the government intends to sell the 13,000 hopper cars which are presently owned by the department. He indicated that the department is inviting proposals to assess and determine the financial arrangements and the terms and conditions of sale. The interests of all stakeholders, including producers, will be taken into account in this process.
In closing, I will touch on the positive attributes of the legislation. While I was a member of the committee listening to the hearings and particularly presentations from the west, section
27(2), section 34(1) and also section 113 which is now known as section 112 were also major concerns. What happened with those?
We altered the wording in section 27(2) to meet the needs of shippers. Also section 34(1) which said "frivolous and vexatious arguments" was dropped completely, and I think correctly so. In section 113, which is now section 112, we have amended the wording to deal with those people who will be affected by it.
The shippers and rail companies and all who will be involved with new Bill C-14 have to come to the position of making it work. If they want it to work, it will. If they do not want it to work, they will use every effort in their power so that it will not work.
In my opinion, we have set legislation which is a compromise and in the final analysis will meet the needs of shippers, railways and all Canadians.