Mr. Speaker, this government certainly supports consumer protection measures and in September 2008 we launched Flight Rights Canada, an initiative that informs the travelling public of Canada's consumer protection regime and their rights under the regime.
The foundation for Flight Rights Canada already existed in Canadian legislation as the Canadian Transportation Act requires that terms and conditions of carriage, which are the elements of the contract between an airline and its clients, be made readily accessible to consumers. WestJet, Air Canada, Jazz and Air Transat incorporated Flight Rights Canada in their terms and conditions of carriage for international and domestic travel. We are encouraged by such positive action taken by the industry leaders.
The member of Parliament for Elmwood—Transcona introduced Bill C-310 in February 2009, just over a year ago. The bill passed second reading and was referred to the Standing Committee on Transport, Infrastructure and Communities for review. Through the parliamentary process, industry and consumer stakeholders were given an opportunity to share their views on the bill as, of course, they would have the best perspective.
Although the bill's intention to improve airline customer service and ensure appropriate compensation was well received by all witnesses, industry stakeholders highlighted how this bill was structurally flawed. After hearing the detailed testimony, the Standing Committee on Transport, Infrastructure and Communities recommended that Bill C-310 not proceed further for several reasons that I will share with members now.
During the committee meetings, industry witnesses raised many concerns. In fact, the National Airlines Council of Canada, an industry association comprised of Canada's four largest passenger airlines--Air Canada, WestJet, Air Transat and Jazz--argued that while the bill's intent was commendable, it actually penalized airlines for situations that were simply beyond their control.
Although the National Airlines Council of Canada's president reiterated the industry's commitment to quality service, he noted that the bill's excessive penalties on matters external to the airlines' responsibilities would substantially increase their business costs. We know when business costs increase, those costs are put directly on consumers. In doing so, this extra financial burden would simply be passed on to them in the form of higher priced tickets and would also risk reducing services to remote Canadian communities.
I come from a constituency with several remote communities, including Fort Chipewyan. The expert testimony in the committee greatly concerned me and many of the other members on that committee. This reduction in service also includes rural areas in Atlantic Canada, including Newfoundland. I spoke with one industry representative who simply said the airline would stop flying into some of these communities if this bill were passed. Northern Connect also goes to some very remote communities as well.
The most important concern raised by witnesses, however, is that Bill C-310, by imposing such harsh penalties for circumstances that were simply beyond the control of the airlines, could compromise passenger safety. In order to avoid paying high levels of compensation to jilted passengers, pilots may be inclined to fly in unsafe conditions. Pilots may simply put the issue of safety behind them and worry more about the monetary penalty that may be assessed to the airline and ultimately, their jobs. Although the government is committed to consumer protection, as we have seen in many pieces of legislation that this Conservative government has put forward, safety of Canadians is always our ultimate, number one priority.
Bill C-310 does not mandate any enforcement agency to implement most of its provisions, many of which are unclear. As the National Airlines Council of Canada testified to the committee:
Because Bill C-310 employs Canada's court system as a dispute resolution mechanism, and because imprecise terms...are sprinkled through virtually every major provision of the Bill - no one...can determine with any certainty at this point how C-310 will actually be applied - and no one will know until a series of protracted and costly legal battles take place.
The National Airlines Council of Canada also highlighted the fact that Bill C-310's exclusive focus is the airline in question and not other organizations. As one can imagine, the airline industry itself has many aspects within the chain of travel.
Following is a direct quote from expert testimony that we heard at committee:
Federal agencies or entities such as NAV Canada, CATSA, [Canadian Air Transport Security Authority], CBSA, [Canada Border Services Agency], and Canada’s Airport Authorities are not contemplated and there is no consideration given to any foreign entity or legal framework, despite the complex and vital roles those organizations play in every trip Canadian passengers make.
By ignoring these obvious connections, C-310 fails in any meaningful way to address the problems it identifies--instead leaving it to airlines to deal with circumstances beyond their control, or face excessive penalties.
That certainly raised a lot of alarm bells with our members.
In addition to being held to account for the actions of other entities beyond the airlines' control, under Bill C-310 airlines are also taken to task and would be required to provide food and other compensation in the event of unfavourable weather conditions that simply delay flights.
We do not have control of the weather. I know members on the other side think we do have control of the weather because we are doing such a great job in keeping Canada's economy on track, but the reality is that as a government, we do not have control of the weather. It would be unfortunate to hold airlines to account for things that are simply beyond their control.
The committee also invited Mr. John McKenna, president and CEO and Tracy Medve, a member of the board of directors for the Air Transport Association of Canada. Like the National Airlines Council of Canada, the Air Transport Association of Canada also reiterated that the bill's high fines could put passenger safety at risk. We are not prepared to take that chance. They said that this would be a result of taking away the pilot's ability to decide whether to fly during dangerous weather conditions in order to avoid facing penalties.
They also stated that tarmac delays are usually the result of bad weather. Let us face it, in Canada we have excessive snowstorms from time to time and other weather occurrences that are simply beyond the control of Canadians and beyond the control of this government and the airlines themselves. These should not be blamed on airlines whose flights may be delayed because of the need for de-icing.
The Air Transport Association of Canada actually argued that compensation under the bill should not exceed the cost of the original airline ticket. To do so obviously would be bad business and could hurt the financial bottom line of the airlines. Ultimately, that cost would be passed on to consumers. It penalizes airlines but the cost would be borne by Canadians all across this country.
By imposing such harsh conditions on airlines, the bill neglects to take into account, and I quote again from the organization, that:
Some small airports don't even have a terminal building. If an airline flying to and from such a location takes a look at the financial risk that Bill C-310 engenders against a smaller return to flying the route, it is possible that the air carrier will not service these locations, or, alternatively, will provide service on a reduced basis.
There are many northern communities, many aboriginal settlements, many communities in Newfoundland and Labrador and other parts of the country that simply cannot afford to be isolated without airline travel on a regular basis. The government, as a result, cannot support legislation that would contribute to a reduction in the number of flights serving remote locations throughout the country, especially in our north.
Another key industry stakeholder present at the committee was Mr. Marco Prud'homme, president and general manager of the Quebec Air Transportation Association. I actually heard from him today on another matter. The association is a non-profit organization whose mission is to serve and work in developing Quebec's air transport industry.
Mr. Prud'homme's main concern with the bill was that it does not recognize the inherent complexities of the air industry and the particular issues for various regions in Quebec. For example, the bill's high fines would have a particularly great impact on smaller, regional carriers like Air Inuit, which primarily services the province's northern community. This would not be acceptable.
I would like to conclude by emphasizing this government's support for consumer protection legislation in the aviation industry especially, and our objective to create a balance in protecting passengers, the safety of Canadians, and ensuring a competitive industry.
Our Conservative government supports passengers and will continue to look at all possible practical ways to protect them while not punishing Canadian businesses or services to remote areas that rely on air transportation.