moved:
That the fifth report of the Standing Committee on Transport, Infrastructure and Communities, presented on Tuesday, May 31, 2016, be concurred in.
Mr. Speaker, it is my privilege today to move concurrence and speak in support of the report of the Standing Committee on Transport, Infrastructure and Communities, which contains the text of a resolution to postpone, for a period of one year, the repeal of certain provisions of the Canada Transportation Act that were enacted by the Fair Rail for Grain Farmers Act.
The resolution, if approved by this chamber, would allow a one-year extension of the government's authorities over four key provisions related to: first, minimum grain volume requirements; second, operational terms related to the arbitration of service level agreements; third, compensation for rail service failures; and fourth, differentiation of interswitching distances by region and goods.
Those who were here at the time will recall that the Fair Rail for Grain Farmers Act was introduced in May 2014 to address the backlog of grain shipments that emerged during the winter of 2013-14 due to a record-sized grain crop and extreme cold conditions that significantly impeded the ability of the railways to move grain across the Prairies.
When introduced, the legislation received all-party support. At that time, we recognized the need to act quickly to ensure grain continued to move to port and to preserve Canada's international reputation as a reliable supplier of grain.
I am pleased to say today that the system has fully recovered from those challenges of the winter of 2013-2014 and a healthy grain crop is moving well through the supply chain this crop year. As of the end of April 2016, which represents the latest data available at this time, rail shipments of grain from Western Canada to all destinations were almost 34 million tonnes, over 5% higher than at the same time in the previous year. Shipments out of western ports to export destinations through April of this year are over 27 million tonnes, which is 7% higher than the same period last year.
Our Grain Monitor is also reporting that rail service has been strong and vessels are spending less time in port than in previous years. With the freight rail system currently performing well, we have the opportunity to consider the best approach to ensuring optimal performance over the long-term. Indeed, the government is in the process of doing this and our assessment will be informed by the findings of the Canada Transportation Act review.
As well, some will recall that in the summer of 2014, the CTA review was accelerated by one year and the review panel was asked to give grain transportation priority consideration in its mandate. The CTA review, led by the Hon. David Emerson, took a broad look at Canada's transportation system and made a number of recommendations on grain transportation in particular and the freight rail system more broadly.
Stakeholders across our nation were active in providing their perspectives on the challenges and opportunities facing the transportation system in the years ahead as part of the overall review.
The Minister of Transport tabled the review report in Parliament on February 25, 2016. It provides a source of independent advice as work continues to support the government's agenda as it relates to the transportation system.
In order to allow a comprehensive consideration of the long-term future of Canada's transportation system, while providing policy predictability to stakeholders, on April 22, the Minister of Transport, together with the Minister of Agriculture and Agri-Food, announced the government's intention to work with Parliament to postpone the repeal of the Fair Rail for Grain Farmers Act provisions, which are set to expire on August 1, 2016.
I am here today to seek support for the resolution, which would do exactly that.
In April, the Minister of Transport gave a speech in Toronto at the Economic Club of Canada, stating his intention to develop a long-term vision for Canada's transportation system that is focused on the future and on the outcomes we as a nation want to achieve. They include better growth, more competition, and better service.
Over the coming months, both the minister and the House of Commons Standing Committee on Transport, Infrastructure and Communities are taking the time to fully consider the future of transportation and how it can enable economic growth, job creation, and overall Canada's competitiveness and performance in global markets.
We want to ensure Canada's transportation system is innovative and adaptable to the changing trade flows globally and to assure Canadians that we are pursuing these goals along with a strong commitment to public safety and sustainability.
The government is carefully considering the CTA review report which includes recommendations on a range of issues, many of which were raised in stakeholders' submissions. We are interested in hearing the perspectives of all stakeholders on these recommendations and more broadly, on a transportation system as a whole, and not just one sector or one mode.
Collaboration with all key partners will be essential to move forward and ensure that Canada's transportation system is well positioned to capitalize on global opportunities, contribute to a higher-performing economy, and meet the evolving needs of all Canadians.
In this context, the minister and Transport Canada officials have started a wide-ranging stakeholder engagement exercise that will continue over the summer to discuss and further elaborate a long-term agenda for transportation in Canada, including elements related to freight rail transportation.
The House of Commons Standing Committee on Transportation, Infrastructure and Communities has also committed to study the issues related to freight rail transportation as it relates to grain shipments in Canada.
Discussions with stakeholders, including ministerial round tables, have begun and focus on broad themes, including strong and strengthened trade corridors, green and innovative transportation, the traveller, waterways, coasts, the North, and of course, safety.
Postponing the repeal of the Fair Rail for Grain Farmers Act provisions will allow us to fully assess the freight rail transportation system for all commodities, in the context of responding to the review of the Canada Transportation Act.
We know full well there are a range of views on the provisions in the Fair Rail for Grain Farmers Act. That is why we want to situate our consideration of these issues in the broader context, one that encompasses the whole freight rail transportation system. That way, we as a nation can align the transportation system overall to meet the future needs and support economic growth for our great nation.
Approval by this chamber of this resolution would provide predictable conditions for shippers and railways to plan for the upcoming year while we undertake this very important work.