Debates of May 16th, 2016

Air Canada Public Participation Act

[Dominic LeBlanc, Liberal, Beauséjour, NB]

moved that Bill C-10, an act to amend the Air Canada Public Participation Act and to provide for certain other measures, be read a third time and passed.

[Jean-Yves Duclos, Liberal, Minister of Families]

Mr. Speaker, this is a somewhat unique situation. I know enough about this bill to know that it is important and it must be supported.

I rise here today to participate in third reading of Bill C-10, which is about modernizing the Air Canada Public Participation Act.

This bill amends the provisions of the Air Canada Public Participation Act dealing with Air Canada's operational and overhaul centres. More specifically, the bill amends paragraph 6(1)(d) in the provisions requiring Air Canada to maintain operational and overhaul centres in the City of Winnipeg, the Montreal Urban Community, and the City of Mississauga and replacing that with a reference to the following three provinces: Quebec, Manitoba and Ontario.

This bill also removes all references to “operational and overhaul centres” and replaces them with a broader reference, namely, “aircraft maintenance activities”, stipulating that this includes work relating to airframes, engines, components, equipment or parts.

The bill also specifies that Air Canada is not under any obligation when it comes to the type or volume of the aircraft maintenance activities it undertakes, either directly or indirectly, in Manitoba, Ontario, or Quebec. Nor is it under any obligation as to the level of employment it must maintain.

These changes seek to modernize the legislation, which is very important, in order to help Air Canada respond more effectively to the changing market conditions, while continuing to maintain jobs for the skilled workers in Canada's important aerospace sector.

First, I would like to say a few words about the privatization of Air Canada.

The House may remember that the main objective of the Air Canada Public Participation Act was to convert a crown corporation into a thriving and competitive private company. The new company would be expected to evolve in an aggressively competitive market that is highly cyclical and sensitive to external shocks.

The act came into force in 1989 to provide the federal government with the legal framework to privatize Air Canada. It also required Air Canada to have provisions concerning, in particular, the maintenance and overhaul of its aircraft, the use of official languages, and the location of its headquarters. Air Canada's competitors from Canada and abroad are not subject to such conditions.

Since privatization, and despite some challenging times, Air Canada has survived as a private company without direct government support.

Today, Air Canada is the only Canadian airline that offers a wide range of regional, national, and international services. Its fleet includes a wide range of aircraft from the world's largest manufacturers such as Bombardier, Boeing, Airbus, and Embraer. We are quite proud of that.

In 2015, Air Canada and its Air Canada Express partners served more than 40 million passengers and provided direct passenger service to more than 200 destinations on six continents. Air Canada alone employs nearly 28,000 people, including 2,400 for its maintenance services.

This bill comes at a very important time for a sector that is booming, but one that is also subject to a great number of fluctuations. We fully realize that this bill gives Air Canada more flexibility when it comes to maintenance, but other restrictions on Air Canada still fully apply, as most of the legislation will remain unchanged.

Other conditions that are important for Canadians, such as the location of the head office and official languages requirements, will continue to exist after the changes we are proposing come into effect.

I would like to remind members that Air Canada is the only Canadian industry stakeholder with such restrictions. None of its competitors are subject to the same restrictions. In a global market and in a sector such as air transportation, which is undergoing major changes, maximum economic flexibility is required to ensure viability in the medium and the long term.

Making this section of the law more flexible will make Air Canada even more viable and, above all, allow it to remain relatively competitive with its national and international competitors.

In this regard, I would like to quote one comment made by Mike Tretheway, chief economist and chief strategy officer at InterVISTAS Consulting Group, who appeared before the standing committee, and stated:

If you choose to have a competitive environment as the basis for your policy, there is a range of competitive issues there, and maintenance is one of the important ones because it's such a large portion of aircraft cost, and you have one airline that has to compete with other airlines that don't have these restrictions.

To give an order of magnitude, in 1980, the International Air Transport Association consisted of 100 airlines from 85 countries. Today, less than 36 years later, its membership consists of 260 airlines, accounting for approximately 83% of total air traffic.

Now more than ever the aviation market is characterized by open skies agreements and the emergence of important new international players. These market conditions offer Air Canada significant global growth opportunities, but also challenges in terms of global competitiveness. Air Canada provides vital connectivity both within our vast country and the outside world. It is also a very important source of jobs.

As Mr. Tretheway said:

...airlines operate with about a 2% profit margin. It's one of the thinnest profit margins of any transport industry, and we can and do see airlines go bankrupt. We've had 60 airline bankruptcies in Canada, and Air Canada itself has gone through one bankruptcy.

Mr. Tretheway further noted:

...[this bill] will have an impact on air travel costs for people flying Air Canada. It will help [Air Canada] get better competitive choices to maintain the high safety standard that Canada requires.... As they become more competitive that I think will get translated, not just for their customers, but customers of the other airlines they compete with, both Canadian airlines like WestJet and Porter as well as foreign carriers that fly in and out of Canada.

The day after Bill C-10 was introduced, some people wondered whether the government was suddenly abandoning skilled workers in the maintenance, overhaul and repair sector in Canada. Some people went so far as to publicly say that Air Canada could limit or even completely stop its maintenance activities that are carried out not only in Quebec, Ontario and Manitoba, but elsewhere in Canada.

Naturally, we listened and expressed our concerns about the impact that the Aveos Fleet Performance bankruptcy had on the workers and their families. At the time, we put pressure on Air Canada and the previous government to act in the best interests of the workers. However, today's conditions are completely different. Let us ask this question: what concrete gains have former Aveos workers made in the past four years?

There is no guarantee that the existing lawsuit would restore the same number of jobs lost four years ago in 2012. The opposition has implied that Bill C-10 would in some way legalize the outsourcing of aircraft maintenance jobs and that the alternative to this bill would be to rehire all the former Aveos workers. In fact, there is nothing in the existing act or the recent Quebec court decisions to require that Air Canada conduct its maintenance in Montreal, Mississauga, and Winnipeg, or to require that the airline go back to doing what it was doing in 2012, with exactly the same employees, before Aveos filed for bankruptcy.

My colleagues are unfortunately creating some unrealistic expectations. That is why we welcome the recent agreements of intent that Air Canada has signed with Quebec and Manitoba. These agreements mention the concrete possibility of jobs, in line with the modern reality of the air transportation sector.

In 2012, the aerospace review noted the growing importance of lower-cost providers of maintenance, repair and overhaul, what we also call MRO, from developing countries, many of which are closer to the growth markets in Asia, Latin America, and the Middle East. While Air Canada does not outsource its aircraft maintenance suppliers in developing countries, many of its competitors do. We must be aware of the global development of these types of services.

It is interesting to note that despite the closure of Aveos in 2012, the MRO sector has experienced significant growth in recent years. Based on data from the report on the state of the Canadian aerospace industry in 2015, the MRO sector experienced strong economic growth from 2004 to 2014, with a 37% increase in direct GDP.

Data from Innovation, Science and Economic Development Canada also indicate that MRO accounted for $3.8 billion of the gross domestic product, that 31,298 people were employed in MRO activities, and that the MRO sector generated revenues of $7.6 billion in 2015. This represents 26% growth in revenue compared to 2010.

Our aircraft maintenance sector remains strong, despite Aveos' bankruptcy, and it continues to be a source of jobs for skilled workers. Over the years, the MRO industry has adapted to the realities of the market. This industry is very competitive in certain leading-edge sectors.

The industry has had to adjust and has become specialized over the years. This industry looks nothing like it did some 30 years ago. It has evolved into a sector that now includes major economies of scale and economies of specialization.

In Canada, our strengths lie mainly in MRO work on engines, landing gear, and simulations. We are fortunate to have many companies working on aerostructure, but not all of them can work on all types of aircraft, so it would be difficult to say whether they would be competitive, in light of the big variety of aircraft operated by Air Canada.

Consider companies such as Air France-KLM and Lufthansa, major global players in aircraft maintenance, repair, and overhaul.

Looking closely at the maintenance structures of these important carriers, it appears that they generally maintain line maintenance within their respective countries for certain types of aircraft. However, their global supply chains are also very important. They are present in major markets, such as Asia and South America, where maintenance centres specialize in certain types of services. Of note, for example, is Air France-KLM, which has an MRO laboratory and innovation centre in Singapore.

The various announcements made by Air Canada, either with regard to the development of centres of excellence in Quebec and Manitoba or its intention to buy C Series aircraft from Bombardier, will result in huge job opportunities in the aerospace industry, and will especially favour continued growth in the MRO sector in Canada for the foreseeable future.

We must stop looking backward and take concrete actions to think about the future in the short, medium, and long term, in light of the very important changes that I have already mentioned.

I see the centres of excellence and the purchase of Bombardier's C Series aircraft as concrete measures that will produce real job opportunities for lots of Canadians.

When Peter Wallis, president and CEO of the Van Horne Institute, appeared before the standing committee, he said that the opportunity to create a centre of excellence in Quebec to maintain Bombardier's new planes is huge for the sector. It would enable that sector of Canada's industry to set itself apart from the global competition.

I strongly believe that in light of various Air Canada announcements, Delta's decision to purchase C Series planes, the creation of centres of excellence, and the decision to drop the lawsuit with Quebec and Manitoba, we will have a much better chance to create jobs and grow our aerospace sector, which is so crucial. Instead of sitting on our hands and waiting for other people to step in and do the work, we will have an opportunity to work and put forward solid proposals.

These promises, which will be fulfilled in the coming years, offer real opportunities for us to distinguish ourselves globally and create a Canadian hub of expertise and innovation. Projects like these will generate better long-term economic growth for Canada and create permanent skilled jobs. I think that is where what we are doing now differs from what was done in the past. Let us stop trying to do things over. Instead, let us look ahead and work for the future.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, Quebec's minister of the economy has asked the Government of Canada that the legislation only come into force once it has concluded its litigation against Air Canada.

Why is the government not respecting that request? Why is passing this legislation so urgent that a specific request from the Government of Quebec cannot be fulfilled?

[Jean-Yves Duclos, Liberal, Québec, QC]

Madam Speaker, I want to thank my colleague for her important question. I also want to congratulate her on her interest in this issue.

As my colleague knows, we have worked very closely with the aerospace industry, very closely with the industry in general, and very closely with the Government of Quebec, in particular. We are very proud of the spirit of collaboration that has allowed us to work very hard together, as I was saying earlier, not only to learn from past lessons, but more importantly, to work for the future of our aerospace industry in order to ensure that partners like Bombardier, Air Canada, the Government of Quebec, and the Government of Canada can build that future and create dependable, quality jobs for the future.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Madam Speaker, although I was somewhat disappointed, I listened carefully to my colleague's speech. I am sorry, but there is almost an Orwellian feel to some of the terms being used, for instance the “concrete possibility of jobs”, “future concrete jobs”, and “concrete ways to create opportunities”. This is unbelievable. Every time the Liberals use the word “concrete”, they are talking about something intangible, some sort of vague promise without any real commitment, when legislation had been negotiated to ensure that Air Canada's maintenance work is done here in Canada.

The only thing that was concrete for 2,600 families was the jobs they had, and the government is turning its back on them. They won their case before the Quebec Superior Court. They won before the Quebec Court of Appeal. To prevent the workers from maintaining their rights and keeping their jobs, the government is simply amending the legislation so that they cannot win their case before the Supreme Court.

How does the member explain his plan to create concrete jobs?

[Jean-Yves Duclos, Liberal, Québec, QC]

Madam Speaker, I want to take this opportunity to thank my colleague and commend him on his interest in this subject.

As he knows, this is not just about the aerospace industry. It is also about creating promising jobs for the future. It is about the importance of listening to our partners in the different provinces and working with them. He knows that, he is aware of that, and I am certain that he appreciates that.

The Canadian government conducted this exercise out of the greatest respect for the concerns of the Government of Quebec. This was all done in partnership. We believe that is the best and most useful way forward.

[Vance Badawey, Liberal, Niagara Centre, ON]

Madam Speaker, on February 17, 2016, Air Canada announced its intention to purchase 45 Bombardier C Series aircraft, with options for 30 more.

Heavy maintenance on these aircraft will occur in Quebec for at least 20 years following their delivery. Air Canada will also collaborate with Quebec in the creation of a centre of excellence on aircraft maintenance in Montreal. Quebec expects that this will create 1,000 jobs over 15 years, beyond the work generated by the manufacture of the aircraft.

Within Manitoba and Ontario, can we expect more jobs to be created under the plan for centres of excellence?

[Jean-Yves Duclos, Liberal, Québec, QC]

Madam Speaker, let me start by thanking my colleague for his great question, and more importantly for his interest in this very important topic for the future of our economy, our jobs, and for the future in particular of the aerospace industry. He has well noted the importance of the investments that Air Canada will make in Quebec, Manitoba, and Ontario.

He has also signalled the value of the jobs that we hope to create through the centres of excellence, which will have the good news of making all kinds of important partners, including the governments of these provinces, Bombardier, and Air Canada, work together to build a better economy, strong growth, and great jobs for our citizens.

Again, let me thank and congratulate the member for his attention to this matter. I hope we will be able to continue our collaboration in the work for Canadian families and those who are looking forward to a better future.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, the member who just spoke again referenced Bombardier. Of course, Bombardier is not mentioned anywhere in this legislation, but Liberals continue to reference Bombardier as if it were part of the discussion.

I want to ask the minister a question that we have asked before without a clear answer. Was there a quid quo pro? Did the government agree with Air Canada that it would make these changes to the act in its favour if Air Canada made purchases from Bombardier? Was that something that was agreed to? If not, then what in the world does Bombardier have to do with changes to the Air Canada Participation Act?

[Jean-Yves Duclos, Liberal, Québec, QC]

Madam Speaker, my honourable colleague is correct. Bombardier is not part of this law. However, what I am alluding to is a broader picture in which our government is working. We are working collaboratively with industry, with all kinds of sectors, and with provincial governments, in order to make sure that the growth that Canadians expect and want of the government does happen. It is very much a collaborative exercise, which is shown in this particular context, but which, as I mentioned earlier, appears in many other contexts, some of them more related to this particular question.

I would like to signal to him that the process of good job creation for our economy involves strong collaboration, strong listening. We are very proud, as in this case today, of some of the outcomes that we have been able to achieve.

[Louis Plamondon, Bloc, Bécancour—Nicolet—Saurel, QC]

Madam Speaker, I have a quick question. When the hon. minister was speaking earlier, he said that Bombardier could not continue to have its maintenance done in Montreal because of international competition. He said that its competitors were at an advantage because they could go wherever they wanted to have their aircraft repaired. Now he is saying that the Bombardier aircraft that are being purchased will be fully maintained and repaired in Montreal.

Why would the international competition that has played a role now and in the past not play a role in 2022 when Bombardier's new planes are delivered to Air Canada? Why would the impact of international competition be any different then?

[Jean-Yves Duclos, Liberal, Québec, QC]

Madam Speaker, I would like to take this opportunity to remind the House that the last time my colleague spoke, I pointed out that he is the dean of this House, as everyone knows, and his comments are always greatly appreciated. I thank him for his interest in this matter.

The member rightly pointed out the importance of international competition in the context of this bill. We therefore want to position Air Canada and the workers who will be supported by Air Canada in a very strong competitive environment.

We are proud of Air Canada's growth in Canada and abroad. We are also aware that in order for that growth to continue, we need to create the right conditions. That is what this bill does since, as I said earlier in my speech, the competitive conditions have changed a lot in recent decades. As a result, we want to create the right new conditions so that Air Canada is with us in the short, medium, and long terms.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I am wondering if the minister could provide some further thoughts in regard to how important the aerospace industry is to Canada. We highlighted my home province of Manitoba, but also Quebec and Ontario, in that we are assisting in setting that framework, whether it is through this piece of legislation or through our budget, to ensure that we have a long-term, healthy aerospace industry.

[Jean-Yves Duclos, Liberal, Québec, QC]

Madam Speaker, Air Canada is indeed a very important company in Canada. Along with its partner, Air Canada Express, Air Canada carried 40 million passengers in 2015 and offered service to 200 destinations on six continents. Air Canada alone employs 28,000 people, 2,400 of whom work in aircraft maintenance.

We are extremely proud of this company, and we are going to continue to support it in the coming years.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, while I welcome this opportunity to speak once again to Bill C-10, an act to amend the Air Canada Public Participation Act and to provide for certain other measures, I am disappointed that the bill has come back from committee without amendment, after Liberal members voted unanimously against an amendment that would have respected the requests made by both the Government of Quebec and the Government of Manitoba to delay the bill's coming into force. However, I will speak to this specifically later on in my remarks.

Upon its privatization in 1989, Air Canada was subject to four conditions: the carrier would be subject to the Official Languages Act; the carrier's headquarters would be in Montreal; 75% of the company's voting shares had to be held by Canadians; and overhaul maintenance was to be done in Montreal, Winnipeg, and Mississauga. The last condition of the act regarding aircraft maintenance is the subject of the legislation that we are debating here today.

I do not think this point has been made clear enough, so I will repeat it again. The Government of Quebec, with the Government of Manitoba as an intervenor, brought Air Canada to court to challenge the carrier's assertion that it was fulfilling its obligations under the Air Canada Public Participation Act, after Aveos Fleet Performance, its primary maintenance provider, went bankrupt and Air Canada was forced to get its overhaul maintenance work done outside its traditional maintenance centres in Montreal, Winnipeg, and Mississauga.

The Superior Court of Quebec ruled on February 4, 2013, that Air Canada had not fulfilled its obligations under the act. The Court of Appeal of Quebec ruled on November 3, 2015, that Air Canada had not fulfilled its obligations under the act, and again, just two months later, on January 5, Air Canada asked the Supreme Court, Canada's top court, to overturn the Quebec court of appeal's decision.

Bill C-10 would, for all intents and purposes, remove Air Canada's obligation to do its overhaul maintenance in these three specific geographic locations that were named in the original act. According to the Minister of Transport, the legislation was introduced, “As a result of the decision by the Quebec government and Manitoba government not to litigate any further against Air Canada, we felt this was an appropriate time to clarify the law and modernize it so that Air Canada can compete with the rest of the world.”

The minister also noted that the legislation would help additional litigation against Air Canada in the future. This statement is fraught with problems. First, it goes without saying that if we change the law that governs Air Canada's privatization, it will become more difficult for anyone to challenge Air Canada in court on whether the carrier is respecting the law as the maintenance provisions will be deemed never to have come into force.

Second, the governments of Quebec and Manitoba do not need to litigate further against Air Canada, because they have already won in court twice. It was Air Canada that opted to continue litigation all the way to the Supreme Court.

The minister's statements lead me to believe that he does not have his facts straight. We have heard the Minister of Transport, and every single member of the Liberal Party in their defence of the legislation, talk about job creation in Manitoba and Quebec, and Bombardier and centres of excellence in aircraft maintenance. However, I do not understand the link these topics have with Bill C-10.

Bill C-10 would replace the paragraph of the original act that described Air Canada's obligations on aircraft maintenance with the following:

(4) For the purpose of carrying out or causing to be carried out the aircraft maintenance activities referred to in paragraph (1)(d) in Ontario, Quebec and Manitoba, the Corporation may, while not eliminating those activities in any of those provinces, change the type or volume of any or all of those activities in each of those provinces, as well as the level of employment in any or all of those activities.

The floor on the number of jobs in each province is one. Although it does not specify the nature of the work that has to be done, line maintenance would probably apply. However, neither the minister nor his officials were able to provide the committee with the minimum number of maintenance jobs Air Canada will have to keep in the country. His officials stated that they could not speculate on how Air Canada would operationalize the centres of excellence, or the 150 jobs in Winnipeg, yet that seems to be all that the Liberal members can talk about.

We are here discussing the Air Canada Public Participation Act, not Bombardier, not the C Series, not the centres of excellence. I hope that members will keep that in mind and try to keep their comments on the Air Canada Public Participation Act for the rest of this debate.

If members would like to discuss agreements between Air Canada and Quebec, and Air Canada and Manitoba, for the creation of centres of excellence, I would expect that they could table these agreements because, despite my best efforts in requesting them, I have not seen any.

Coming back to the sequence of events that have brought us here today, Air Canada likes the C Series airplane. That has been made clear. It made that clear during its appearance last week. However, as recently as January 5, Air Canada's plan was to appeal the Quebec court of appeal's decision to the Supreme Court. Something changed and Air Canada decided that it was better off settling these lawsuits than pursuing this matter in front of the Supreme Court.

Whether the federal government was somehow involved in this change of heart is unknown, beyond a statement made by Air Canada's representative that it is acting under the assumption that the section of the Air Canada Public Participation Act that we are discussing right now will be repealed, and if it is not repealed, then Air Canada would consider its next steps concerning the creation of centres of excellence and aircraft maintenance.

On February 17, 2016, Air Canada announced that it had signed a letter of intent to purchase the Bombardier C Series aircraft and maintain these in Quebec and that it would undertake the overhaul maintenance of those aircraft in the province. On the same day, the Minister of Transport announced that he would lessen Air Canada's obligations under the act.

Just imagine the coincidence. On the same day that Air Canada throws a lifeline to Bombardier by signing a letter of intent to purchase C Series aircraft, the Minister of Transport announces his intention to introduce legislation that would directly benefit the carrier by allowing it to get its overhaul maintenance done, legally, outside of Canada. The minister did not even wait a day to make this announcement. It leads me to wonder if the minister would have removed Air Canada's official language obligations if the carrier had made a firm order for 75 C Series aircraft, rather than a letter of intent for 45, as is what has happened.

I would also note that in its latest earnings report, Bombardier announced that it would record an onerous contract provision of approximately $500 million as a special item in the second quarter of 2016 because it is believed to have sold the C Series aircraft to Air Canada and Delta at a loss of $4 million to $5 million per aircraft.

However, I digress.

The Minister of Transport has attempted to justify the legislation by stating, repeatedly, that the governments of Quebec and Manitoba have dropped their lawsuits against Air Canada.

This is simply not true. On two occasions, the governments of Quebec and Manitoba won in court against Air Canada. That is what gave them the power to bring Air Canada to the table to negotiate an acceptable settlement. In the case of Quebec, the reasonable settlement appears to be the purchase of the C Series aircraft and the commitment to undertake that C Series maintenance in Quebec and create a centre of excellence in the province. In the case of Manitoba, the reasonable settlement appears to be the transferring of approximately 150 jobs from around Canada to the provincial capital.

We should be under no illusion that these negotiations are concluded. Air Canada has not even converted its letter of intent for the C Series into a firm order yet. There are no centres of excellence in either Quebec or Manitoba.

On February 10, Air Canada and the Government of Quebec informed the Supreme Court of Canada that an agreement was reached to report the decision on the application for leave to appeal until July 15, 2016. That means that the parties have until July 15 to negotiate a settlement.

If Air Canada is unwilling or unable to fulfill the terms of their agreements concerning the centres of excellence to the satisfaction of the Government of Quebec and the Government of Manitoba, it can be presumed that Air Canada will continue to challenge the Quebec court of appeal's decision in front of the Supreme Court.

It is critical for members to understand that if this law is changed today, then there will be no incentive for Air Canada to remain at the table and negotiate with the governments of Quebec and Manitoba. Both the minister of the economy of Quebec and the deputy premier of Manitoba, who is also her province's attorney general, understand this basic fact. That is why both have asked the federal government to wait until their negotiations with Air Canada are complete before passing the legislation.

Here is the relevant part of a brief from Quebec's Liberal minister of the economy:

...in order to provide for all the aspects of the agreements reached, the Government of Quebec is asking that, once Bill C-10 receives royal assent, the legislation come into force after the final agreements described above have been concluded.

As it is presently drafted, Bill C-10 would come into force immediately upon receiving royal assent.

The deputy premier of Manitoba was equally clear in her appearance in front of the committee. She said:

The federal government's approach to Bill C-10 simply put is jumping the gun. Bill C-10 is being rushed through the process before the necessary specific investments and binding commitments by the federal government and Air Canada have been secured.

There we have it. Two provincial governments have asked the federal government to respect their process and not immediately pass the bill in its current form. However, these reasonable requests have fallen on deaf ears.

This is not the first time the Liberal government has railroaded processes undertaken by local governments that they do not agree with. We all remember that the Minister of Transport's first act was tweeting that he would unilaterally impose his will on Toronto city council by ending any discussion on the future of the Billy Bishop airport. However, once again, I digress.

I presented an amendment in committee last week, the effect of which would ensure that the bill would not come into force until at least August 1, 2016, or two weeks after Air Canada and the attorney general of Quebec inform the Supreme Court on whether they seek to continue litigation or have settled outside of court. The member for Central Nova was the only Liberal who at least attempted to justify why he was voting against such a minor amendment that would have simply fulfilled the requests made by two provincial governments to give them more time to negotiate with Air Canada. My amendment would not have changed the bill, just when it would come into force.

His justification was as follows, “I believe the legislation is sound. If it will be a good idea in August then I believe it's a good idea today”. I like the member for Central Nova. However, as a lawyer, surely he knows that litigation and settlement negotiations take time, while the pace at which the current government is pushing the legislation through can only be described as lightning speed.

Hearings in the Superior Court of Quebec on this matter began on November 19, 2012, over three and a half years ago. The first time parliamentarians heard that the minister planned to amend this act was February 17, 2016, not even three months ago. If it is the member for Central Nova's contention that Parliament's stepping in and effectively siding with Air Canada in this dispute with the legislation, after Quebec and Manitoba were in court fighting for this act to be enforced for three years, is sound public policy, then I guess we know to what the lengths the Liberal Party will go to help out its friends.

Moving on, during the second reading debate on the legislation, my friend from Winnipeg North, who is a frequent commenter in this chamber, asked the member for Beloeil—Chambly if he would “at the very least acknowledge that provinces do matter and that their discussions and their beliefs should be taken into consideration”.

As I have noted earlier in my remarks, the deputy premier of Manitoba explicitly asked for the legislation to be delayed. That is the will of the government from the member for Winnipeg North's home province. I hope that he will consider Deputy Premier Stefanson's comments when he votes on Bill C-10 or makes his next intervention.

Everybody here wants Air Canada to be a viable company that offers safe, reliable and affordable air service to Canadians, while competing against international giants. If the purpose of the legislation is indeed to make Air Canada more competitive, the government has failed to make this case on how it would do so.

In response to a lob from his own member on how Air Canada's maintenance obligations affected its competitiveness, the minister responded, “It is a big, serious question and I do not have the answer”. If it is the government's priority to make Air Canada more competitive with the expectation that Air Canada will be offer lower fares to consumers, there are a number of better options available to it to reach this objective.

For example, the government could tie all airport improvement fees to specific projects with explicit sunset provisions, which would save many travellers more than 20% on their ticket. It could increase the foreign ownership limit of Air Canada, and all Canadian-based air carriers for that matter, to 49%, which would give the carrier access to cheaper capital to finance improvement.

The government could replace the current one-size-fits-all passenger screening approach which treats all passengers equally with an intelligence-driven risk-based passenger screening process. The airport security charge in Canada is $7.12 for domestic travel, so this adds up for frequent travellers.

All of these measures would stimulate Air Canada while maintaining jobs in Canada and would not cost the taxpayer anything. If anything is clear it is that the government has missed an opportunity to truly allow Air Canada to compete against U.S. and international carriers by only bringing forward such a narrow proposal to Parliament.

In conclusion, I remain extremely disappointed that the government is once again imposing its will on local governments that do not share its views, in this case Quebec and Manitoba, by forcing this legislation through Parliament before Air Canada has even converted its C Series letter of intent into a firm order.

If the federal government is actually committed to improving the competitiveness of Air Canada and the entire aerospace sector, it has come up short with this legislation.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I find it most interesting to hear the comments coming from a Conservative member. Back in 2010-11, when Air Canada was taking these actions, I stood in my place on the opposition side of the House and challenged the government of the day, ministers and the prime minister directly about what they were prepared to do.

They did absolutely nothing for the workers or the industry, whether it was in the provinces of Quebec, Ontario or Manitoba. In less than a few months we saw a new national government actually work with the different provinces and stakeholders. As a direct result of that effort, we now see a more promising future as opposed to a government that previously did absolutely nothing.

When the Conservatives were in power, why did they do absolutely nothing for the industry and nothing for the workers at the time when it really mattered?

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I do not agree at all with the premise of that question, certainly when the member talks about carving out a bright future for the aerospace industry through Bill C-10.

Bill C-10 does absolutely none of that. It does not stipulate any of the measures that the members across the way continue to talk about when they raise Bombardier and the centres of excellence. None of that is referenced in this bill. We will continue to assert that the federal government could have gone much further if it truly wanted to ensure that all of the aerospace in Canada was more competitive by contemplating other measures that would support all carriers and that would not affect jobs.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Madam Speaker, I would like to thank my colleague for her speech.

I can understand the fact that the Conservative Party is focusing on the time frames, the government's haste, the opportunity for the provinces to continue negotiations, and the Supreme Court appeal that must be heard. However, beyond these technical considerations, which have real consequences, there is also the the root problem: Bill C-10 eliminates all the guarantees that were in place to keep jobs in Canada, whether in Winnipeg, Montreal, or Mississauga.

When I moved an amendment at the Standing Committee on Transport, Infrastructure and Communities that would delete this part of Bill C-10 and keep the job guarantees, the Conservative Party voted against the NDP amendment. I would like the member to explain why.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I always enjoy and appreciate my colleague's interventions, both in committee and in the House. His passion is unmatched by many in the House.

The purpose of clause-by-clause consideration in committee is to propose amendments that approve a bill. My assessment of the amendment was that it did nothing to modify or improve the bill. All it did was propose removing the amendment in one clause of bill.

If members oppose a clause, they should simply vote against it, rather than putting forward an amendment that has no substance, the result of which is achieved by voting against the clause, and has no hope of receiving support from government members. We knew that. It was clear. The Liberals did not accept any amendments that were made by members in the committee.

The amendment we put forward was substantial and would have at least addressed the concerns of the Governments of Quebec and Manitoba, and probably could have led to a very similar outcome as the amendment those members proposed.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Madam Speaker, I have enjoyed pointing out the inaccuracies with the Liberal member from Winnipeg. He made comments about the strength of Air Canada. I would point out that the last two years have been two consecutive record years for Air Canada, with this year being better than the year before. That is pointing in the right direction.

Could the member from Saskatchewan take a look at two things? One is on the annual report. For the last two years at least, Air Canada has referenced exchange issues on labour for maintenance. That would lead me to believe it should be doing more maintenance in Canada. The other one is this. We just went through a massive Transportation Act review by Mr. Emerson. Why not take a larger, broader look at it instead of this piecemeal approach at which the Liberals are looking?

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I thank my colleague for the hard work he does as the deputy critic for transportation.

What he referenced is one of the glaring gaps in this legislation. This is one of the first pieces of legislation the government has introduced, and then has forced closure on it. The Emerson report, to which Air Canada provided a submission, was in the minister's hands. In Air Canada's submission, there are 66 recommendations that the federal government could have considered in making the aerospace industry more competitive, efficient, and cost effective for Canadians. Yet the government came forward with simply one measure, and it did it one day after Air Canada announced it would buy the Bombardier C Series.

[Kate Young, Liberal, Parliamentary Secretary to the Minister of Transport]

Madam Speaker, I want to make reference to something the member said.

You said you wanted Air Canada to be competitive. Do you believe the Air Canada Public Participation Act still applies as is, that Air Canada should not have the capability of being competitive by having these changes made?

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I want to remind the parliamentary secretary to address her remarks through the Chair.

The hon. member for Carlton Trail—Eagle Creek.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, when we contemplate the change that has been put forward by the government in Bill C-10, we need to take a step back and look at the benefits Air Canada has received as a legacy carrier over the last number of decades.

We need to look at what Bill C-10 would do and then contemplate a number of measures the Liberal government could have contemplated when it looked at amending the Air Canada Public Participation Act. The government chose to keep it so narrow. Therefore, I would put the question back for the parliamentary secretary and the minister. If the government is determined for Air Canada to become more competitive in a progressive aerospace industry, why would it not have entertained the other 60-some recommendations Air Canada made in the Emerson report? Why did it not look at other measures to ensure Air Canada would be more competitive without costing jobs in Canada?

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Madam Speaker, I really appreciated the work that my colleague did in committee on Bill C-10.

We heard several times from union and management representatives. We also heard at length from the minister, who tried repeatedly to explain why it was urgent that the bill be passed.

I would like to hear what my colleague has to say about that. Did the minister manage to convince members of the House of Commons of the urgency of passing Bill C-10?