Mr. Speaker, it is my pleasure to rise today to speak at second reading of Bill C-11. This bill is about 60 pages long and is one of those bills that we cannot read in isolation. We have to have the existing legislation there so we can follow the amendments. Unless the House is prepared to give me an extension of about two hours, I am not going to address the whole bill. I will address certain aspects of it.
We are talking about the Canada Transportation Act and the Railway Safety Act. There are certainly many provisions of interest in this bill and they have been debated and discussed by hon. members through this debate, but I would like to look at a couple in particular.
Bill C-11 proposes that the Minister of Transport, Infrastructure and Communities be allowed to regulate the advertised pricing of airfare. This is an issue which is of great interest to Canadians, considering the recent history and volatility within the airline industry. It remains to be heard from the minister what his specific intentions are with regard to future airfare advertising regulations.
The whole question of regulations is kind of interesting to note for all hon. members. When we debate bills and vote at the various stages, we do so without the regulations, which do not come until after the legislation is passed, has gone through the Senate, received royal assent and is proclaimed. Then we get the regulations. There always has been this issue about whether or not there is this creeping problem where we have executive-made law, where the cabinet is enhancing what the insinuation of the legislation is through the regulations. It is the reason why we have the scrutiny of regulations committee, a joint Commons-Senate committee, to look at those regulations as they come through and to ensure that the regulations are authorized by the legislation.
I thought I would put that in because it is a very important aspect as it relates to this bill and it is incumbent upon the committee to do this. I am sure we will see this bill go to committee for review. We have to ensure that we get an indication from the government, from the minister, about the intent. What is the intent here? How can we, from an informed point of view, make decisions with regard to appropriate amendments to the legislation, if necessary?
The bill itself provides hints but no guarantees, and that is the issue. That is the problem with the regulations. Subsection 86.1(1) states:
The Agency may, on the recommendation of the Minister, make regulations respecting advertising in all media, including on the Internet, of prices for air services within, or originating in, Canada.
Subsection 86.1(2) of the same clause suggests that the minister may require that prices should include all costs to the carrier and all charges, but it does so without limiting the generality of the minister's power to regulate under subsection 86.1(1). Again it is this uncertainty, as a consequence of having the details, and the devil always is in the details with regard to regulations.
Members may recall that the issue of airfare pricing attracted a great deal of attention a few years ago when airport improvement fees and security charges became prevalent throughout the airline industry. At that time, the Liberal government recognized that protecting consumers was of utmost importance. Much of the materials we find in Bill C-11 are the provisions of the amendments to the Canada Transportation Act, which have been presented in bills in prior Parliaments, but which did not proceed through the full legislative process due to the call of an election.
The provisions that are in question today were inherited from the previous legislation. There are too many situations right now, quite frankly, and what we are trying to address is that every day Canadians are faced with misleading and simply false information. That is the reality that we are faced with when we are trying to decide, as consumers, how to spend our hard-earned dollars.
The wide range of fees and taxes on airfare can be particularly confounding as well. Charges vary depending on which airport one is in, the airport of origin and the destination, then based on whether it is domestic or international. Even then, in some cases when a flight connects through certain particular airports rather than others, there are other complications, so the comparabilities from airline to airline are in some difficulty too.
Then, of course, we cannot forget the taxes. When all the charges, fees and taxes are summed up, the actual price of an airline ticket can be substantially above the base price, which is usually the advertised price. Let me repeat that. The base price, without all those add-ons, is the one that usually appears in the advertising. The consumers really get a surprise when they see the add-ons.
The right to set regulations could simplify these charges into a single tax-inclusive number, which when advertised by one airline would lend itself to comparison with other advertisements by other airlines. It is possible to take for granted the importance of advertising in our society. Market economies depend on competition. The competition itself depends on the ability of purchasers, in this case the Canadian consumers buying airline tickets, to distinguish between prices in a meaningful way.
I would go so far as to say that the efficiency cannot be properly encouraged in a market without clear pricing. That is the issue. We do not really have clear pricing, at least in the eyes of the consumer.
We must see prices clearly in order to choose based on price. Only when we choose based on price do we encourage businesses to offer a better deal. This is competition. That is the purpose of healthy competition. It is to ensure that there is fair pricing. Competitive pricing means that there is a win-win.
Clearly we are supportive of the principle of price advertising clarity. However, we do not know precisely what kind of price advertising regulations the minister intends to undertake. This is a problem and it is something that I encourage the committee to address exhaustively when it looks at this legislation.
Specific types of regulation can certainly have some unintended effects as well. Forcing airlines to disclose a certain amount of information in their advertising may in fact interfere with the message in unproductive ways or confuse the consumer. If we go a little too far we may find that people do not focus in on exactly the key elements of the pricing mechanism.
We have all seen the commercials for automobiles, which contain a great deal of detail. That is an example of listing all these little things. In fact, many Canadians would argue that they contain too much detail to be of much use. Calling on the airlines to display a similar level of detail may in fact not be where we want to go. I think this is another issue that the committee should address very carefully.
As we know, industries are thoroughly interconnected. I am not just talking about the airline industry. When we think about it, even the advertising industry is obviously affected. Depending on what our requirements are, certain modes of advertising are more desirable, more productive or effective than others, so that depending on what we do in this legislation may have some consequential impacts on other industries. We have to ask ourselves whether or not new regulations will cause one type of media to take a greater share of advertising dollars than another type. It could have any number of effects, all of which we can only speculate about.
The Parliamentary Secretary to the Minister of Transport, Infrastructure and Communities began his remarks by outlining some details. We will be required to do our jobs, but full disclosure in any event is certainly essential. We do not know what regulations the minister will be eventually bringing forward. It is going to be difficult for us to assess some of these finer points in terms of the impacts on the industry and related industries or linked industries.
This brings me to another important point. As parliamentarians, we obviously have a duty to consider legislation very carefully, but the government is understandably anxious to more forward with certain priorities. This is one that we cannot rush. This is one that we have to be very careful of. We know it has taken some time to get to this point yet again. When we start the House every day we say prayers and one of our pleas is that we make “good laws and wise decisions”. That is always the case. Certainly we want to make sure that Bill C-11 ultimately makes the necessary amendments to make the Canada Transportation Act a better law.
Whether the bill is the size of Bill C-2, the accountability bill, which is five times the size of a normal piece of legislation, or whether it is like Bill C-3 on international tunnels and bridges, a very few pages, we cannot forget that when we give a bill our approval it eventually becomes law, with consequential effects for Canadians, whether we have had the foresight to see them.
This bill in particular has some potential pitfalls that are going to call on those responsible for scrutinizing the bill at committee to do their very best, to engage the best possible witnesses, to try to foresee, to try to identify some of those pitfalls and to absolutely ensure that the legislation does not have unintended consequences.
In terms of Bill C-11, we are asking the government and the minister in particular to take the time to properly address the many questions that flow from the amendments it proposes. The Minister of Transport spoke about another provision in Bill C-11 that is of interest. He indicated that he intends to amend the Canada Transportation Act to create a mediation process for disputes concerning federal transportation matters that fall within the jurisdiction of the Canadian Transportation Agency.
This is very interesting. It is an evolution that was previously found in Bill C-44 in a prior Parliament. Proposed subsection 36.1(1) would require a unanimous agreement of the parties in order to proceed, but in those circumstances it would seem to be a very useful process.
Any time that we can provide for alternatives to litigation in the area of transport, we do a favour to the parties who are looking for win-win solutions. We would like to explore that as fully as possible as well. The process suggests a quicker timeline and would inevitably be cheaper than lawsuits. That usually is the case. Many of our legal friends in the chamber certainly remind us of that from time to time, although for the life of me it really makes me think of the softwood deal and some of the dynamics that have occurred there.
To go back to this bill, in February 2004 CTA chairwoman Marian Robson wrote that 95% of matters that had been referred to mediation by the agency were resolved to mutual satisfaction. We can see that the history is very good in this regard.
Entities that fall under the domain of the Canadian Transportation Agency are more than likely parties that have ongoing contractual relationships. By its very nature transportation infrastructure is not particularly fluid and there may not be many possible alternative commercial relationships. Quick, amicable resolutions free up resources and ultimately lead to better prices and better services for Canadians.
My colleagues and I are supportive of these measures and commend the minister for bringing back these elements of amendments from previous Liberal bills.
Finally, I would like to dwell very briefly on the issue of corporate governance. It is a subject matter that has attracted quite a bit of attention these days and the CTA is a very important agency. The agency is responsible for balancing divergent interests in a fair and open manner. It licenses air and rail carriers and resolves complaints between shippers and railways regarding rates and service. It approves proposed construction of railway lines. It even participates in international bilateral negotiations and administers bilateral agreements.
Eyebrows were raised in the House when the minister asserted that changes to the makeup of the Canadian Transportation Agency will provide for cost savings. I think people's eyebrows usually go up when governments say they are going to save--it is almost like “show me”--but these are initiatives through which, if they are sound in terms of their operational impact, that is possible, and we certainly would like to see that.
It appears that the current board made up of seven part time members will be replaced by a board of five members in the full time employ of the CTA. These five members would be located here in the national capital region. The minister talks about efficiency of centralization, noting that more than one member must sign off on decisions the agency takes, and I would like to hear from the minister about how the agency will do its job better.
As we know, the bill is the third attempt to bring forward legislation on these particular matters. Let me say that Bill C-11 is made up of many, many amendments, some 60 pages of them. It was very difficult. I compliment all hon. members who took the opportunity to do the necessary work, the due diligence, to review the legislation so they could bring an informed debate to the House at second reading and so we could move the bill on through the legislative process with our eyes wide open with regard to the key elements that are of concern to parliamentarians and to consumers and the service providers as well.
An important part of our review was the statutory review of the Canada Transportation Act. I was very interested to hear the Minister of Transport, standing in his place earlier, mention that he would be tabling further amendments addressing the subject of rail shipping disputes. Certainly we have had a great deal of discussion on that. I know that the committee is going to be very cognizant of the concerns raised by all hon. members.
He talked further of consultations that are now complete and new conclusions that the Conservative minority government has drawn. I should note that Bill C-11 requires another statutory review of the Canada Transportation Act, something that makes a lot of sense given its primacy in an area, namely transportation, that is of broad importance to Canada and certainly to all Canadians.
As my hon. colleague from Ottawa South, the opposition critic for transport, has stated, we are looking forward to seeing the bill examined and revised as necessary at the House of Commons Standing Committee on Transport, Infrastructure and Communities.