Mr. Speaker, I am pleased to rise today to discuss this bill, as this may be the dawn of a new era in rail transportation. It has been my sense that the sector has been in decline for decades.
When a bill is introduced in the House, it is usually because there is some problem that needs addressing. Laws are not passed just for the sake of passing them. We do not set out to bore people. We are not in the business of hurting market sectors. We are here to make things better.
The Liberals acted hastily when they privatized CN in 1995, and they failed to think through the consequences. Monopolies were created in some regions of the country and duopolies in others, and we know what this led to.
In my riding, for instance, one of the consequences of the privatization has become a recurring election issue: the upkeep of the Quebec Bridge and its rail lines. The matter has been before the courts for seven years and is the direct result of privatization. The Conservatives only ignored the problem. When CN was privatized there was no consideration given to the consequences for the users of the different services. It is not worth mentioning VIA Rail because we all know what the problems with it are. We will have other opportunities to discuss this. The users of these transportation services have had problems for years.
The government has finally decided to act, but it is doing the bare minimum, and more needs to be done. We intend to support the bill at second reading and propose amendments to improve it.
If the Conservative government ends up introducing regulations, one can be sure that it is because the problem has dragged on for some while and something really must be done.
Is the fact that it is a private company the cause of the problem? No, the problem is that there is a monopoly. In this situation, there are two conflicting priorities: a company's need to make a profit and provide a dividend to its shareholders, and the service that it must provide its customers.
If there is no incentive created by competition, customer service suffers for the sake of shareholders' dividends. Moreover, an increasing number of sections of railway are being closed in rural regions, more and more services are being dropped and more and more cuts are being made to passenger service. This era has seen the decline of rail transportation.
And that is despite the fact that ours is a huge but sparsely populated country with vast distances to cover. That is why we need an efficient long-distance transportation system that causes as little environmental damage as possible. Rail transportation would fit the bill, but the government is letting the system go downhill.
The government waited years to act. It should come as no surprise that people using the service began to get together. I am not suggesting that they began to unionize, because that would freak some people out. People who use the system felt the need to talk to one another about how the level of service does not make sense. They started to exert pressure on the government because the level and quality of service were poor.
Globalization means that we have to deliver products all over the place, and quickly. Obviously, if someone has a product, be it from a forest, a mine, a farm or anywhere else outside a major centre, that product has to be packed up and shipped quickly. Global competition means that we need to provide this kind of service and we need the infrastructure to do it.
So the question is, how can we balance the need for a business to make a profit—be it a farm or a major corporation in a remote location—with the needs of many companies that often have no alternative form of transportation? Throw into the mix the need for transportation to be as green as possible. How can we bring these needs in line with each other? This has always been a problem.
That is why, in January 2011, Transport Canada released a final report on its rail freight service review. The committee's mandate included the following:
Conduct a review of the rail-based logistics chain...with a focus on service provided to Canadian shippers and customers...
Identify problems and issues with respect to railway service including those stemming from other elements of the logistics chain.
Rail transportation is one part of the logistics chain for shipping to various clients.
For shippers located on shortlines, determine if there are any problems with logistics and, if so, the source of the problem including service, operating, or marketing practices of the main-line carriers.
Signs were already pointing to a deep-rooted problem. At the end of the report, of course, there are a number of recommendations. There is a whole range. For example, the first recommendation is as follows:
The Panel recommends that railways, in collaboration with their stakeholders, continue to develop commercial measures to improve rail service.
In 2011, it was acknowledged that there was an issue. That was two years ago.
The second recommendation is as follows:
Prior to implementing changes in local train service, railways should consult affected stakeholders and provide a minimum notification period of 10 working days.
That recommendation relates to previously identified service issues.
And here is the third recommendation:
Railways should enter into good-faith negotiations to establish service agreements upon request by stakeholders...
That recommendation truly concerns the scope of Bill C-52, and the bill addresses only the third recommendation.
There is a fourth recommendation:
The Panel recommends that railways, assisted by a facilitator appointed by Transport Canada, should engage in negotiations with stakeholders...
That happened a bit later. I will speak to that in a moment.
And the fifth recommendation is as follows:
Railways should provide improved supply chain visibility through enhanced reporting.
Basically, there is a lack of communication between the service provider and the clients. Plain and simple. We could keep going.
Last year, in May 2012, the facilitator's report also came with recommendations.
The first recommendation is as follows:
Transport Canada should make the service agreement template...available to rail freight stakeholders...
There is mention of a service agreement template, a dispute resolution process, and so on.
This is a fundamental problem. Clients often have no choice. Even rural or more remote areas are producing goods.
That is the beauty of globalization. We can produce goods across the country and deliver them to anywhere in the world. To do this, we need world-class infrastructure. We have a serious problem when it is totally impossible for users to get adequate service.
We see that people are dissatisfied and have lost confidence. We also have to consider the economic consequences for users of this service, one of which is the erosion of market share. We often forget this, but we are sacrificing Canada's economic driving force.
That is why I think this bill is a step in the right direction. We are slowly trying to solve the problem through this legislation. Although it does not do everything we would like it to and it does not come close to creating a national transportation strategy, at least we are trying to come up with solutions. We are getting closer to something better for the entire supply chain from the perspective of producers in rural and remote areas.
If we do not address this issue, Canada's ability to compete will be compromised. God knows that Canada's competitiveness is important. We therefore cannot allow rail service and our providers' ability to improve that service to deteriorate.