Mr. Chairman, I would like to use the few moments I have tonight to talk about three main issues.
First, the minister asked me to explain that he had to leave to take part in a meeting. He apologizes and will be back as soon as it is over. His parliamentary secretary, the hon. member for Chicoutimi--Le Fjord, is here and is taking note of what is being said tonight.
The first item I would like to cover briefly is the matter of safety in our air transportation system. I readily recognize that I am not an expert in this area and I will not attempt to provide advice as to what can be done to improve it. There is certainly a recognition nationwide that it has to be improved somehow. There will be those who are more familiar with these matters who will come forward and provide sound advice and we will improve the system.
There seems to be a consensus throughout the country that the government must take the lead in ensuring safety and security in the airline industry.
Everyone I have talked to since the tragic events, the horrific events of September 11, agrees that the government must ensure that Canadian airports and air carriers implement the best security measures possible. The government has a role to play in this area. It must once again assume some responsibilities, ask the RCMP to be more visible, and so on. That is the first point I guess on which most Canadians and certainly the residents of my riding of Ottawa--Vanier, with whom I have had the opportunity to discuss this issue, would agree.
The second item I would like to bring up is the matter of insurance companies that a few days after the horrors of September 11 decided they were no longer offering a certain item of coverage relating to war and terrorism. I find that behaviour despicable. I am speaking of companies that have been engaged to provide insurance coverage and suddenly decide, unilaterally, that they will no longer offer this coverage no matter how much they are paid.
That essentially put governments in the position of stepping up to the plate. Otherwise the entire system would have been grounded. I congratulate the government for having stepped up to the plate and for giving a 90 day breathing period to the industry to come up with a different solution.
I hope that we look in terms of those solutions to a self-insurance mechanism of sorts, whether it be through a co-operative venture involving all partners in the airline industry, whether it be through government or whatever mechanism we eventually end up with on self-insurance. I would hope that at that point we would look at the three other product lines that these insurance companies have not revoked and perhaps offer them to this joint venture, co-operative self-insuring mechanism that we have devised.
It is unacceptable that the private sector, which I hear being lauded by a lot of people across the way, would in a time of crisis and a time of dire need pull the plug as they have on their coverage. This is behaviour that I would not have expected from Canadian corporations. They are not Canadian. They are multinationals, I gather, and three of them control this market worldwide. I would hope that we have learned a lesson in not trusting monopolies.
The matter of insurance is one that I wish to bring to the attention of the government because I hope it will push these insurance companies very hard and reprimand them for their behaviour.
The third item is Air Canada itself. I have to admit that I am one of those who were quick to criticize Air Canada in the past, either because of its casual attitude or because of its lack of service or because of one of its employees or representatives. I have to admit that I am not always pleased, even today, with its behaviour, particularly since it has indicated its intention to ask $3 to $4 billion in government assistance. It is now down to $2 billion. I find this behaviour most reprehensible.
That being said, I think it is absolutely crucial for a country like ours, a country that has trading partners all over the world, to have a national air carrier. I think it is a must.
We need a national carrier. For a trading nation it is a necessity. Therefore we either deal with Air Canada or we invent another one. We have Air Canada for the moment and I for one think that it would be very detrimental to our economy and to our international reputation should this carrier be grounded. I am of the view that somehow, somewhere, we have to help Air Canada restructure itself and be sure that it can continue occupying the air space that Canadians wish to occupy.
What should we do? On one hand, the company is asking us for money; on the other hand, we do not want to give it a blank cheque, and I agree with that. There is no question of giving a blank cheque to Air Canada, and I think the government was pretty clear on that.
We must show some imagination. I want to go back to a suggestion made by the member for Davenport. We should invest in Air Canada. I do not think we should buy Air Canada shares that are currently available.
There are about 120 million shares outstanding. I think Air Canada closed at somewhere around $3.35 today, so its market capitalization is around $400 million. I am not suggesting that the Government of Canada buy those shares, buy back Air Canada. I am suggesting that it should consider making an equity investment to be issued as treasury shares, and it could make a significant equity investment before it goes out to secure loan guarantees and so forth. There might be a package of measures to sustain Air Canada but at the same time protect the Canadian public and its tax dollars.
The government should seriously consider some form of investment for which it would receive treasury shares, which would give it seats on the board, and I said seats, in the plural.
I think it is rather important that the government obtain through that mechanism seats, in the plural, on the board to help Air Canada restructure. For instance, having a good presence on the board, it could force Air Canada out of unfair competition, out of the regional carriers, out of the low cost carriers where there are others in the country that are prepared to compete in that area. It could concentrate on long haul flights in Canada and certainly on our international routes, which is what we would expect a national carrier to do. That is my first idea that I would encourage the government to consider. I am not the only one who has such an idea.
Second, there is a need for loan guarantees, it goes without saying, especially if the government has a major investment in Air Canada.
Third, It is perhaps time to act quickly and offer Air Canada employees, those remaining anyway because, unfortunately, there are many fewer than before, an opportunity to buy shares in Air Canada, so that they too are at the table to protect their interests.
An employee share ownership plan that might encourage some equity investments into Air Canada at this time could be very useful, certainly for the remaining employees of Air Canada. It might have been useful for those who may have been given notice that they will not work there any more.
Those are some of the measures that I think the government should look at: equity investment, some loan guarantees and certainly employee share ownership. As well, once we have seats on the board we can reorganize Air Canada and help it restructure. The government has proven that it can be a good manager. A private-public partnership would help us protect two things. As a private concern Air Canada is focused on maximizing shareholder value. That is its job. However, as a public concern we are here to be mindful of service to the public.
Now, as Air Canada heads into some very difficult times over the next few years, a private-public partnership would be one way of ensuring that the government does not just maximize value for shareholders and profitability, but that it also concerns itself with service to the Canadian public. It is important that we have a national carrier.
Incidentally, the government could ensure that Air Canada reviews the percentage it gives travel agents who sell its tickets. There was a decision on this very recently. Air Canada took a very tough stand against travel agents who sell plane tickets. This would be a way of forcing Air Canada to review this treatment of travel agents which is, in my view, heavy-handed.
These are the basic ideas I wanted to present. It is a very difficult situation and I hope that wisdom will prevail.