Mr. Speaker, it is an honour to speak in the House today on behalf of the New Democratic Party and on behalf of my constituents in Vancouver East on the second reading of Bill S-33, an act to amend the Carriage By Air Act.
Bill S-33 is largely technical legislation. The main purpose of the bill is to allow Canada to ratify the Montreal convention. The Montreal convention was developed in 1999 at a meeting of the International Civil Aviation Organization. The Montreal convention establishes a comprehensive and up to date set of international rules defining and governing the liability of air carriers in the event of loss of baggage or cargo, delay of international flights, or the death or injury of a passenger. Those are certainly important aspects to be covered and the NDP is pleased to be supporting the bill as a result of the Montreal convention.
I listened with interest to my colleague from the Bloc. It is ironic that we have this legislation before the House today because it represents one tiny piece of a much bigger picture of what the aviation industry in Canada is facing today, which concerns us all. It is a crisis. The bill before us today in no way addresses the fundamental consequences and issues facing both airlines, airline workers and the travelling public.
I also want to add my comments on the bankruptcy of Canada 3000, Canada's second largest airline. Thousands and thousands have been laid off which has caused huge insecurity for the workers, their families and local communities. In terms of the ripple effect and the impact this has had on people's lives, we can only begin to understand. Even beyond Canada 3000, the layoffs in Air Canada since September 11 have also caused enormous distress.
The bill only deals with a very small piece of what we are facing and yet all these other things are going unattended. I certainly add my voice to others in the House and those of my party who have called on the government to be much more proactive in its approach to dealing with our airline industry in Canada.
My colleague, the member for Churchill, our transportation critic, has done an outstanding job in questioning the minister and government members on exactly what it is the government intends to do to not just rescue in an immediate sense Canada's aviation industry but its long term plan. I think that is a question that is still unanswered. I think there is a lot of concern and anxiety in the travelling public who now have a lack of confidence about what it is they face in terms of safety, security, affordability and a certainty that Canada's airline industry and the various carriers that exist will be able to continue to operate.
The one thing we know, in this vast country of ours from east to west and north to south, is that we depend on airlines to move people and goods around. We also recognize the demise of our transportation industry in terms of rail, but there is no question that airline travel across Canada is very important to business and local communities that would otherwise be very fragmented and isolated.
Having dependable service and knowing there is a vision and a plan for Canada's aviation industry, is clearly within the mandate, the responsibility and the duty of the federal government.
While we are debating the bill today I absolutely want to add my voice to the others who are calling on the government to take a much stronger position on the question of the future of our airlines. There is no doubt we are now seeing the consequences not only of September 11 but of years and years of deregulation and privatization.
The Minister of Transport, as my colleague from Regina--Qu'Appelle pointed out so well in the House, has presided over the demise of six airlines. It makes me wonder whether anyone on the government side is in the driver's seat. Are they one step ahead of the game in figuring out what needs to be done or are they just watching what is going on?
We point these things out today even though we are dealing with a bill that is limited in scope. This is just the tip of the iceberg. We want to say loud and clear that the government must provide a sense of confidence not just to the House but to the Canadian public. It must assure Canadians that our airline industry has a promising and secure future and that people will not be dinged and find out their airline tickets do not mean anything any more.
People go to the airport and find that suddenly the pieces of paper that cost them $300, $500 or more do not mean anything. They must tear them up and figure out how they will get home. This is hardly what one would expect to see in Canada. This is a pretty serious situation.
We call on the government to be much more proactive in its response and planning. We call on it to articulate a vision which will secure the public interest after so many years of deregulation and privatization. It must come forward with an expression that our transportation industry and our airline industry is of national interest. There must be involvement by the federal government to uphold the public interest.
In terms of Bill S-33, the new set of rules governing the liability of carriers would modernize the Warsaw convention system. The convention dates back many years to 1929. Although it has been amended and supplemented over the years the convention still sets levels of liability for damage or loss of cargo and baggage. It also sets compensation levels for victims of air accidents, obviously something that very much concerns people these days.
The Montreal convention would be of considerable benefit to Canadian air travellers. Those who have lost luggage or had it damaged would benefit. Current levels of liability are low, resulting in a significant limitation of compensation. It is important that the new convention upgrade and update levels of compensation. The new limit would allow most passengers whose luggage is lost or damaged to receive full compensation. That is something that is important in the bill.
The major feature of the Montreal convention is the concept of unlimited liability. This is an important feature. The Warsaw convention, the earlier convention under which we operated, had set a limit of approximately $8,300 U.S. in the case of death or injury of a passenger. Clearly these kinds of liability limits are completely out of date and out of line in today's world.
The new Montreal convention would introduce a two tier system. In the first tier there would be strict liability up to a level of $135,000 U.S. irrespective of a carrier's fault. The second tier would be based on the presumption of fault by a carrier and would have no limit of liability. That is important in terms of the ability of the travelling public to know the second tier exists and that there is no limit of liability.
The convention would provide a mechanism for the periodic review of liability limits. This is an important element since one of the reasons a new set of rules is needed is the fact that earlier liability limits are completely out of date and have no provision for renewal.
The Montreal convention includes other important elements. Air carriers would need adequate insurance to cover their potential liability. This would ensure carriers would have the financial resources to pay in cases of automatic payment or litigation. In the case of an accident air carriers would need to provide advance payment to entitled persons to meet their economic needs. This would provide some financial protection for Canadian air travellers.
The new convention would provide another area of jurisdiction that is of benefit to claimants. It would allow a claim to be made in the country of the passenger concerned provided the carrier involved operated services to and conducted business in that country.
This would mean legal action for damages could be initiated in Canada for Canadians involved in accidents outside Canada as long as the air carrier was active in Canada. That is an important protection for the public. It would give air passengers an easier and more straightforward route through which to apply for compensation.
We are pleased to see this included in the convention. I have never experienced it myself but one reads about what happens when accidents occur. It is hard to imagine the horrific wrangling, bureaucratic paperwork and mess people must go through to make compensation claims. It is something none of us would want to experience. The fact that the convention would provide a more accessible route to apply for compensation is important.
The Montreal convention seeks to establish uniform rules governing the liability of airlines. It would help achieve equality and fairness in compensation arrangements.
Canada signed the Montreal convention in 1999 so it is fairly recent. It was done with a view to ratification. We in the NDP believe Canada should enact the legislation and facilitate that ratification. It is the sensible and right thing to do. The convention cannot come into force until it has been ratified by at least 30 of the ICAO's 185 member states. As such, the NDP is prepared to support the bill at second reading.
However our support for the bill in no way changes our significant concerns about the future of Canada's airlines. We will continue to stand in the House and urge the government to engage in an open debate. In question period, in committees and in debating legislation we will urge the government to come forward with a plan to provide a better sense of security for Canada's airline industry into the future.
We in the NDP believe that must involve an active role for the federal government. Moving down the road of further privatization, loading it all on to Air Canada and having a monopoly system that does not allow other carriers to exist would not be healthy for the aviation industry.
I remember the days when Air Canada was a public interest. It was a corporation that had public ownership. There was a lot more security in those days. There was a sense of accountability in terms of what we could expect to see from Air Canada in the way of performance. All that has gone. It is tragic that so many people's livelihoods have been affected by the massive layoffs and the fact that the government has not had a vision for the future of our airlines.
We in my party support the bill although we know it is limited. We reiterate our call for the government to be more proactive and come forward with a national plan to provide greater security for the aviation industry and the travelling public.