House of Commons Hansard #225 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was c-49.

Topics

Transportation Modernization ActGovernment Orders

4:55 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, it is a pleasure to rise to speak to a couple of aspects of Bill C-49. I have had the opportunity to express a number of thoughts, a few of which I will go over, but I want to look at a very important issue. Even though the legislation deals with transportation in general, I want to focus my opening remarks on something that I think is really important.

It was not that long ago when we talked about the important role that standing committees play in Parliament. The Standing Committee on Transport, Infrastructure and Communities did a great job of listening to the different stakeholders that made representations with respect to this legislation. Ultimately, through those hearings, I understand the committee reported to the House early in order for the bill to pass clause by clause. The encouraging thing to recognize is that this is yet another piece of legislation that went through the process with a number of amendments. We often hear about government amendments on a bill that passes, but in my years in opposition in the House, it was very rare. I could not recall one occasion where opposition amendments were accepted and ultimately passed. I was quite pleased that out of nine amendments, there may have been six from the opposition, though I do not want to be quoted on that. That demonstrates a great deal of goodwill on the part of the government, and in particular the minister.

The minister has done an incredible job in bringing forward legislation that deals with tangible issues, and I want to focus on two of them specifically. One deals with the situation that many farmers have found themselves in over the years. When I was in opposition, I recall hearing from farmers first-hand about the piles and piles of wheat being stored outside because their containers were full. They could not get the rail service they required in order to get that commodity to port. I understand that there were empty ships outside of ports that wanted to transport that commodity, but unfortunately the disconnect was through the railways.

The member for Wascana at the time, along with myself and many others, was exceptionally frustrated. We felt that the farmers were not being listened to by the government of the day. We did not know why there was not more action, and why the producers, the ones putting so much of their sweat equity, finances, and resources into producing the world's best commodities, were not able to get their commodities to port in a more timely fashion. When I was briefed on this legislation, it was one of the issues that stood out. It is important to have mechanisms that enable service agreements to be arbitrated in a fairer fashion, so that there is a better quality of service for the producers.

As an MP from the Prairies, I am quite pleased that we as a government are able to do something that the former government, which claimed to have a significant representation in the Prairies, was unable to do. It speaks volumes about the sense of commitment that the Prime Minister in particular has, and that the government as a whole has in building rural communities. This is one of the ways that I think it is fairly well received. This legislation covers a number of areas, but that one really came to mind for me.

The other area is airlines and the idea of having an airline passenger bill of rights in place. This legislation contains a mechanism that would enable that bill of rights to happen. I see that as a strong and encouraging aspect of the legislation.

Most MPs do a considerable amount of flying, some more than others, depending on their proximity to Ottawa. I do not know how many stories I have heard over the years in regard to issues that have arisen between airlines and passengers. Passengers are quite upset because of the lack of recourse. Airlines have some restrictions in place that often lead to complications. Things are beyond one's control when it comes to nature. However, in many cases, airlines need to be held more accountable. That is why it is encouraging to see within this legislation things that will protect the interests of consumers and ultimately producers.

My colleague raised the issue of the Canada infrastructure bank and the opportunities there for our ports and others. He also talked about how this legislation would enable future investments. These things are critically important.

If we take the time to do this right and we invest in things such as infrastructure, or offer opportunities for investment in infrastructure through things such as the Canada infrastructure bank, then we will be creating all sorts of opportunities. We can talk about those opportunities in terms of the jobs directly affiliated with the construction of a particular project; they are tangible and easily seen. However, the jobs that can be created as an indirect result are equal to or quite often greater than that, especially if we are talking about issues surrounding our ports.

There is a huge demand for modernizing and improving our ports, and it would be at a substantial cost. We are talking about hundreds of millions of dollars. Bringing in legislation that could potentially enhance that development opportunity, the flow of goods both into and out of our country, is a positive thing. That would assist us in creating good, solid middle-class jobs that are necessary to drive our economy.

I am pleased with the policies that this government has put in place over the last couple of years, and their impact on Canada, on our middle class and those aspiring to be a part of it, and on those who are finding it more challenging. At the end of the day, literally hundreds of thousands of jobs are being created. We are seeing many benefits in terms of full-time jobs that are being created.

Bill C-49 would do many things, and I could list some of them, but I will not have time because I know the Speaker wants me to sit down. The point is that the bill caters to our airlines, our ports, and our railways, and members opposite would be best advised to get behind this solid legislation.

Transportation Modernization ActGovernment Orders

5:05 p.m.

Conservative

The Deputy Speaker Conservative Bruce Stanton

I would never want the hon. parliamentary secretary to sit down, but at the end of his time perhaps we will signal for that purpose.

Transportation Modernization ActGovernment Orders

5:05 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, while you may not want my colleague to sit down, many on this side are very happy to have him sit down.

One of the campaign promises that the Liberals made was to champion the so-called passenger bill of rights for air travel. There is some movement in that direction with this bill, but it is clear that they are short on details in the legislation as it relates to preserving the rights of air passengers.

Currently I serve as the co-chair of the scrutiny of regulations committee, and I am very much aware that a lot of regulations developed subsequent to legislation often end up creating some issues to be dealt with. It certainly prolongs the process of getting the bill and its regulatory framework into practice.

My question for my colleague is, why would the Liberal government, after championing this idea in their campaign, be so weak on details as it relates to preserving the rights of air passengers?

Transportation Modernization ActGovernment Orders

5:05 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I would argue that it is quite the opposite.

The member is right. We agree on one point. The Liberal Party, prior to the election, made a commitment to work towards getting an air passenger bill of rights. In a relatively short period of time, we are now debating and ultimately passing legislation that is going to assist in enacting that protection for our airline passengers.

We recognize that in good part it will be done through regulations. There is nothing wrong with doing that, and working with the many different stakeholders and individuals who have a lot of good ideas in terms of how it could best be done. The member is right, in one sense. We are not saying that fines are going to be x amount of dollars and so forth, incorporating that into the legislation. However, we are enabling it to take place.

That is what Canadians want. I would suggest that with the passage of this legislation, we will see yet another election platform issue being acted on, committed to, and ultimately passed.

Transportation Modernization ActGovernment Orders

5:10 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, there is much that we need to do in national transportation policy.

The minister has been holding consultations with members of Parliament. There is a lot to be legislated that is still missing in this bill. As we touch on rail service in this piece of legislation, Bill C-49, I wonder if my hon. colleague from Winnipeg North, the parliamentary secretary, has any comments on the critical importance of maintaining passenger rail service through VIA Rail? We have not legislated VIA Rail, ever, in this place.

There are some changes to that legislation contained in Bill C-49, but it is a missed opportunity not to legislate for VIA Rail in the same way that in the U.S., Amtrak has a legislated mandate.

Transportation Modernization ActGovernment Orders

5:10 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I suspect that if the member were to talk to the minister responsible for the legislation, he could probably come up with a half dozen or more other things it would have been wonderful to incorporate in some capacity in other pieces of legislation.

I look forward, in the months and years ahead, to seeing what other initiatives will come out of the department. I would like to think that all members of this House see the great value of the idea and the principle behind VIA Rail. It is something I would love to see expanded in some areas of our country. There is really no threat. Passenger rail is exceptionally popular and well utilized. In some of the other more remote areas, there are some legitimate concerns. It would be a wonderful thing. I do not know if the transport committee has even considered having that discussion, or if it has had that discussion in recent years.

Canadians as a whole support VIA Rail. If there are things that the government could do, as has been demonstrated in the committee on this particular piece of legislation, we are open to ideas and thoughts. Let us have a discussion about it.

Transportation Modernization ActGovernment Orders

5:10 p.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, once again this Parliament has been presented with a poorly and hastily crafted omnibus bill that would undermine workers' fundamental rights to privacy and protect the rights of investors.

It is hard to see any difference in policy between the current government and the one that went before. The disparity between Liberal election promises and Liberal actions in government is painful. Where is the promise to end the use of undemocratic omnibus legislation, so decried by the Liberals in opposition? Like the Conservatives before them, the Liberals are subjecting Canadians and members of this House to unworkable and flawed, now Liberal, omnibus bills.

Bill C-49, for all its omnibus bulk, contains only two measures New Democrats can support. We believe in the measures that would improve the rights of air travellers and the protections for grain shippers. These ideas are positive improvements to the status quo. For that reason, we are calling on the government to sever these two initiatives from the pointless and ineffective remainder of Bill C-49 so they can be studied at committee and passed into law.

As for the rest of Bill C-49, we will vote against it, and I will tell members why. Bill C-49 would amend the Canada Transportation Act, giving the minister of transport the power to approve joint-venture arrangements between airlines. This is worrisome, because that type of arrangement could proceed with the minister's approval even if the commissioner of competition found that it was anti-competitive, and it could increase the price of airline tickets. Let me repeat: it would give the minister of transport the final word on proposed joint ventures between airlines, and once an arrangement was approved, the Competition Tribunal could no longer prohibit it.

The NDP proposed deleting clause 14 of Bill C-49, because it would expose consumers to unfair increases in airline ticket prices, yet that clause remains. The bill would also increase the limit on foreign ownership of Canadian airlines from 25% to 49%, despite a University of Manitoba study, published on Transport Canada's own website, that demonstrated that this measure would have no positive impact on competition.

Most concerning, Bill C-49 would amend the Railway Safety Act to allow railway companies to use video and voice recorders, and despite the fact that the bill would risk violating section 8 of the Charter of Rights and Freedoms by authorizing the government or employers to collect private information without instituting adequate protections, the Liberals rejected NDP amendments to limit the use of these recorders.

Locomotive voice and video recordings should be accessible only to the Transportation Safety Board. There is nothing to stop individual railway companies from using them to attack workers' rights. In fact, there are a number of precedents in which CN and CP have attempted to attack workers' rights and privileges. New Democrats object to clause 14 for this reason.

If the government were truly serious about improving railway safety, it would revise the standards regarding train operator fatigue. Train operators are under pressure from employers to work unreasonable hours, and as such, this demand by employers represents a real danger to the safety of workers and the public.

There is a better way. Canada needs and deserves an affordable, accessible, reliable, and sustainable system of public rail transit, and Canadians have the right to the highest levels of service, protection, and accessibility of travel that can be provided. Instead, we see the erosion of infrastructure due to the neglect and corporate offloading of maintenance responsibilities, and passengers are subjected to the cancellation of rail services across the country.

Canada has a growing population, families with children, disabled Canadians, and senior citizens who need to travel. At the same time, Canadians are conscious of the environmental legacy we are creating for future generations. With proper stewardship and a visionary plan, we have the very real potential to revive our once thriving rail-travel industry. However, that kind of vision requires a federal government focused on national stewardship, rather than what both Liberal and Conservative governments did when they sold off national interests and pandered to those who bankrolled their campaigns.

It is because we need reliable rail service that I have drafted and tabled Bill C-370, which would create a clear mandate for VIA Rail Canada. Canadians are weary of the refusal by the current government, as well as Conservative and Liberal governments in the past, to acknowledge the economic and environmental benefits of a truly enhanced, integrated, accessible, and sustainable rail transit system that would far outweigh and outlive short-term political gain. Past governments have failed to understand that everyone, from the youngest Canadian to the seasoned commuter, benefits if rail travel is part of our future. I can tell members that this reality is not lost on the citizens of London and southwestern Ontario. They are the people who suffer from what is described, in the network southwest action plan, as the “mobility gap”.

Bill C-370 would provide the opportunity for Canadians and the current Parliament to evaluate cases where VIA Rail planned to eliminate a required router station. In addition, my bill would provide a legislative framework for VIA Rail's mandate as a crown corporation to make services mandatory, set minimum frequencies for certain itineraries, and increase levels of service with regard to punctuality. It would provide a transparent and democratic means to evaluate any proposed cancellation of service routes and a framework for managing and funding VIA Rail. It would help prioritize passenger trains where and when there were conflicts with freight trains and would create efficiencies. I encourage members on all sides of this House to support Bill C-370 when it comes to the floor for second reading.

In a previous parliament, the NDP introduced a bill setting out clear steps to establish a passenger bill of rights. The current Minister of Transport supported our bill. He could have followed our lead and introduced concrete measures to protect airline passengers but instead handed off responsibility for making regulations to the Canadian Transportation Agency.

The NDP proposal for a passenger bill of rights included measures to ensure that airlines would have to offer passengers the choice between a full refund and re-routing under comparable conditions when flights were cancelled. Air carriers that failed to comply would have to pay $1,000 in compensation to every passenger affected, in addition to the refund. Also, when an aircraft was held on the ground for more than one hour, the airline would have to provide passengers with adequate food, drinking water, and other refreshments, as well as compensation of $100 for each additional hour the flight was held on the ground.

Witness testimony tells us that such measures could result in flight cancellation rates four times lower than those experienced in Canada. The Liberals heard this testimony in committee, yet they rejected amendments from the NDP based on this solid evidence. It leads me to wonder what their motivation was and where their loyalties lie.

It is unacceptable for the government to shift the responsibility of protecting passenger rights to the Canadian Transportation Agency. Passengers and airlines need clear measures to discourage overbooking, and we need those measures now. The minister promised them for sometime in 2018. That is not good enough.

While our objections to Bill C-49 are many, I want to focus on one final point. Omnibus Bill C-49 would amend the Canada Marine Act to permit 18 port authorities to obtain financing from the Canada Infrastructure Bank. My New Democrat colleagues and I have spoken on the dangers of the Infrastructure Bank and will continue to do so as long as it exists as a loophole for selling off publicly funded infrastructure projects and public services to private corporations. We know that this transfer of public assets will allow private corporations to impose user fees and tolls on Canadians who have already paid hard-earned tax dollars for their public services.

Bill C-49 would allow private investors to provide loans to port authorities using the Infrastructure Bank. It would allow those private investors to charge high rates of interest on those loans, with the consumer footing the bill. In addition, ports whose building projects were valued at less than $100 million may not be eligible for Infrastructure Bank loans and so would be left without any resources. The cost of the required return on investment by these lenders could affect consumers, since many goods are transported through our ports.

New Democrats are wary of any legislation that shrouds the poisoned pill of selling off our valuable public assets and services to private corporations. Governments do not exist to serve private profits. At best, it appears that Liberals do not seem to understand that. At its cynical worst, they do understand and hope Canadians will not notice as they sell this country off to their corporate friends without any consideration for the public good. Either way, Bill C-49 is a flawed and poorly crafted piece of legislation that New Democrats cannot and will not support.

Transportation Modernization ActGovernment Orders

5:20 p.m.

London West Ontario

Liberal

Kate Young LiberalParliamentary Secretary for Science

Mr. Speaker, the member and I quite often come to the nation's capital on the plane together, so we quite often talk about transportation between London and Ottawa. We both are very interested in the future of transportation in our country.

I want to make sure that I understand that she would at least agree that the bill represents a first step. That is really what we are talking about here. Is it to provide Canadians with a safer, more reliable transportation system, whether it be air, rail, or whatever. This is the beginning of a longer process that we know is necessary for our country.

Transportation Modernization ActGovernment Orders

5:20 p.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, I have been around this place for 12 years, and I am tired of tiny steps. I want something substantive and meaningful that is going to work for the travelling public of our country. In terms of the passenger bill of rights in the airline industry, it needs to be better and stronger. First steps are fine, but we do not get many chances. It is important to do it right the first time.

In regard to rail passenger service, we have an opportunity, with the Minister of Transport, to make real and definitive changes. We need a mandate for VIA Rail. We need it to serve the people of the country. In the last 25 or 30 years, all we have heard about are cuts in service, the closing of routes, and the elimination of the kind of service people would use and would enjoy using and would feel good about, because it would help our environment.

Transportation Modernization ActGovernment Orders

5:25 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Mr. Speaker, one of the things covered in the bill is the joint ventures. Perhaps she addressed this and I did not catch that part. I was wondering if she could give her thoughts on the changes to the legislation in terms of joint ventures.

Transportation Modernization ActGovernment Orders

5:25 p.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, I am very leery and concerned about joint ventures. If he is talking about the infrastructure bank, I have profound concerns in that direction. We have experienced P3s in Ontario. They are more expensive, they are slow, and they do not provide the kinds of services that are intended.

In the case of the infrastructure bank, we would be partnering up with corporate entities that are designed to invest to make profits. Public services are for the public, and they are financed by taxpayers, the working men and women in our country. They should never be subject to extra tolls or extra costs to use their own services. Public services must remain public.

It is like Ontario Hydro. Who in their wildest dreams would have believed that any government would sell off a public entity like Ontario Hydro? This is all part and parcel of that selling out the public for private corporate good.

Transportation Modernization ActGovernment Orders

5:25 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Mr. Speaker, I am pleased to stand today to discuss Bill C-49.

However, before I get to the meat of the bill, I want to quote from liberal.ca/realchange, which says, “We will not resort to legislative tricks to avoid scrutiny. Stephen Harper has also used omnibus bills to prevent Parliament from properly reviewing and debating his proposals.” It goes on to say, “We will change the House of Commons Standing Orders to bring an end to this undemocratic practice.” However, what do we have before us? Like budget bills and others before it, the Liberals have introduced an omnibus bill.

In the bill, there are air passenger rights, with subsections on liberalized international ownership rules; joint ventures between air carriers; increased access to security screening services; rail initiatives with subsections under locomotive voice and video recorders; freight rail policy framework; and another area under marine initiatives that includes items such as would amend the Coasting Trade Act and the Canada Marine Act to permit Canada port authorities to access Canada Infrastructure Bank loans and loan guarantees to support investments in key enabling infrastructure.

We also know the infrastructure bank was introduced in a different omnibus bill. Ironies of ironies, the Liberals put time allocation on this omnibus bill after promising to never do either. The Liberals said that they would never be so cynical as to introduce omnibus bills and they were so sure they would never use them that they made it a campaign promise to show Canadians they were so different from Stephen Harper. With this broken promise, it once again shows that the student has become the master.

While I am on broken promises, I will review some of the other broken promises of the government, such as a revenue-neutral middle-class tax cut. The Liberals said this tax cut would pay for itself by increasing taxes on the wealthiest. Unfortunately, it has not. The tax cut is costing all Canadians $1.2 billion annually from the federal treasury. It is like borrowing against a line of credit and saying we just got wealthier, but it is not.

The Liberals promised modest deficits. They said that annual deficits would be just $10 billion a year, but they blew that out of the water pretty fast. Even with the economy doing well, the Liberal deficit will still be almost 100% higher than they had promised. They promised balance budgets. They said the budget would be balanced, probably balancing itself, with a $1-billion surplus in 2019-20. Now we know they will not commit to a balanced budget ever.

The Liberals promised revenue-neutral carbon pricing. They said the plan would be revenue neutral for the federal government, but we know that is not true because they are charging GST on the provincial carbon taxes, which is expected to cost Albertans and British Columbians almost a quarter of a billion dollars over two years.

On electoral reform, we were famously told that the 2015 election would be the very last using the first past the post balloting system. On this side, we have always said that if the government is going to fundamentally change the way citizens elect their government, there should be a referendum. Therefore, I am not that sad to see this promise broken, but it still shows a pattern.

The Liberals make promises to get elected and then throw the promises under the bus faster than, say, the revenue minister threw Revenue Canada employees under the bus over her mess-up with taxing minor employee benefits.

The government promised an open and transparent government. This one is an omnibus of broken promises.

I will read from the mandate letters to ministers, which state, “You are expected to do your part to fulfill our government’s commitment to transparent, merit-based appointments”. Here are some of the merit-based appointments. The former chair of the Liberal election campaign in Ontario was appointed to an ambassador role. A failed Liberal nomination candidate was appointed to the VIA Rail board. Another failed Liberal candidate, who already said she would run again, was appointed as the director of the Hamilton Port Authority. A Liberal described as a friend of Gerry Butts, who ran twice for the Liberals unsuccessfully, was given a plum government position in San Francisco at double—yes, double—the official pay scale.

The finance minister's mandate letter includes this doozy, “your private affairs should bear the closest public scrutiny. This is an obligation that is not fully discharged by simply acting within the law.” Here we have the finance minister, who, before entering politics, lobbied for a change in the pension system that would benefit his company, Morneau Shepell. What did he do after he was elected and became the country's top financial regulator? He sponsored the very bill he lobbied for before entering politics, but excuses it by saying he was following the letter of the law.

There is also the failed Access to Information Act we debated just recently. The Information Commissioner herself said that she was very disappointed with the act, that it was being used as a shield against transparency, and that it was failing to meet its policy objectives to foster accountability and trust in our government.

I will now move on to Bill C-49. It is unfortunate the government has once again chosen to break its promise and presented yet another omnibus bill to the House.

Bill C-49 is like a game of three card monte. That is where the dealer shows that one of the cards is the target card and then rearranges the cards quickly to confuse the player about which card is which. Except in the case of Bill C-49, instead of the queen of hearts, the minister is presenting the passenger bill of rights as the target. He hides the flaws and omissions of the bill under the guise of passenger protection, referring constantly to the much-reported United Airlines incident where someone was dragged from the plane, as if something like that had happened here.

He also tries to pretend that government regulation is what is needed to prevent those situations in Canada. We all have our own horror stories of airline travel. What would address this issue is not half-hearted regulations, but more competition.

Changing the foreign ownership limit to 49%, up from 25%, is a good start, but why limit it at all? If we want improved service and other issues, then open up the market to more competition. We saw how this worked when WestJet entered the market. Nothing has done more to force better pricing and service from airlines across the country than having WestJet expand across Canada.

Why not focus on this, instead of measures that are rolled out populist-style to take advantage of consumer sentiment influenced by a viral video.

A University of Toronto report has found that relative to Americans, we often pay between 50% and 100% more for comparable travel between Canadian cities. Various expert reviews of the airline industry, including by the Competition Bureau, have recommended allowing a right of establishment for foreign carriers on domestic routes to put pressure on our airlines to improve.

The airlines might argue that foreign carriers would only operate on lucrative routes. However, Canadian carriers are under no obligation to fly to money-losing destinations currently, and there is no proof that the airlines are presently cross-subsidized to operate otherwise unprofitable routes.

One of the problems of this part of the bill is that it amends the Canada Transportation Act with regard to joint ventures, taking away decision-making authority from the Commissioner of Competition, and places the power in the hands of the minister. Yes, giving the minister the power to interfere for political reasons is just what is needed to improve airline service and lower rates—said no one ever.

The CAA, the Canadian Automobile Association, notes that the Bill C-49 relies on a complaint from a passenger in order to trigger action. The Canadian Transportation Agency cannot initiate domestic investigations on its own. Advocates and organizations can not intervene and each complaint is handled as a one-off, adding time and delays.

It is worth noting that the CTA was able to initiate hearings into the recent infamous Air Transat situation only because it concerned an international flight. The CTA would not have the authority, even under Bill C-49, to decide itself to hold a hearing into a similar situation if the flight occurred within Canada. Nor would the CTA be able to examine any broader systemic issues the CTA might note that did not come from a specific complaint and would have to ask the minister for permission to investigate them.

Noted passenger rights advocate, Gabor Lukacs, says the bill is “smoke, mirrors and has no teeth”, and contains no provisions about the enforcement of rights of the passengers. He says, “This strikes me as an an attempt to shield airlines from complaints and further prevent the public from ensuring their right.”:

He says that Bill C-49 contains no provisions about the enforcement and that it passes the buck to the Canadian Transportation Agency to establish standards at some point in the future. What we need is more competition, not relatively toothless regulations basically responding to a United Airlines' video that went viral.

We do not need regulations that will increase airport costs and thus ticket costs, which will happen as airports expand screening services and are permitted to independently decide how to cover costs. We all know how that will end: with consumers paying more.

There is quite a few other issues on this bill. We would have preferred that it be broken up into several bills to address.

It is unfortunate that once again the government is hiding poor legislation in an omnibus bus, and Canadians will be the poorer for it.

Transportation Modernization ActGovernment Orders

October 30th, 2017 / 5:35 p.m.

Liberal

Chandra Arya Liberal Nepean, ON

Madam Speaker, why can my hon. colleague not support the excellent measures proposed in the bill?

The bill would allow foreign vessels to reposition their containers between locations in Canada. This would make Canadian trade corridors more attractive to global logistical companies. It would also allow Canadian port authorities to have access to the Canadian Infrastructure Bank. That would enable them to make critical investments in port infrastructure.

The bill would liberalize the ownership of air carriers, from 35% to 49%, while ensuring that no single foreign entity or group of airlines could own more than 25% of the airline stake. At the same time, it would ensure that speciality air carriers, like firefighting air carriers or aerial photography air carriers, would have no change in foreign ownership. It would still be limited to 25%.

Why can the member not support these excellent measures?

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5:35 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Madam Speaker, I outlined a lot of reasons why I could not support the bill. It is an omnibus bill that should have been broken up and presented separately in the House for review. There are quite a few reasons. There are privacy issues with the locomotive voice and video recorder. The Privacy Commissioner said that it could potentially encompass employee output measurement or other performance-related objectives. The bill could open the door to potential misuse of the data or function creep.

The problem with the bill is that it would not do enough to increase competition. Rather than allow more competition, the government seems to think more regulation, more government interference will make Air Canada or WestJet deliver better service. It strikes me as odd. If Liberal members went to a Tim Hortons and saw a lineup, I wonder if they would decide they needed to regulate that as well instead of allowing more competition.

The bill is flawed. It would do nothing to service Canadians better.

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5:35 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Madam Speaker, one of the things the legislation addresses in clause 14 is joint ventures and the putting in place of a ministerial component or a political lens.

Does my colleague have any comments on that section?

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5:40 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Madam Speaker, my colleague from Peace River—Westlock asked an important question about taking away a non-partisan oversight and handing it to the minister. The government interfered with energy east and killed it. It has interfered in a lot of other things for political reasons.

It would be a disaster if we allowed the government and a minister to decide, for political reasons, what should be decided by the market.

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5:40 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

Questions and comments, the parliamentary secretary to the government House leader, a brief question, please.

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5:40 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, the member across the way gives the impression that there is nothing in the bill for which he could vote. I would think his constituents would be pleased to know the bill would enable the department to work toward having a passenger bill of rights. I would think his constituents would want the member to at least say some encouraging words about the importance of those regulations.

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5:40 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Madam Speaker, you recognized my colleague and said “a brief question”. The two really are oxymoronic, but I would like to thank him for the quick question.

Some things are in this omnibus legislation that I am sure a lot of us could get behind. The problem is that they are all wrapped up into one large bill. There are issues with the interchange with the rail. There are problems with the infrastructure bank and port authorities. There are problems with the bill. By throwing it all together, it is difficult to get behind it without getting a lot of real bad legislation and regulations rolled into it.

Transportation Modernization ActGovernment Orders

5:40 p.m.

NDP

Brigitte Sansoucy NDP Saint-Hyacinthe—Bagot, QC

Madam Speaker, as it often happens, the Liberal government's bills first and foremost protect big businesses, at the expense of the rights of workers and consumers. By amending 13 acts, the omnibus Bill C-49 is no exception. There is certainly no doubt that the Liberal members are going to support this bill, but I would still like to remind the House why the New Democrats want to oppose it.

After two years of waiting, the minister wants us to rush through a bill that is deeply flawed and primarily favours the interests of foreign investors, while violating the rights of workers and consumers. I will explain all the reasons why the New Democrats oppose Bill C-49.

First, in 2012, the NDP tabled Bill C-459, which clearly outlined the measures to be taken to create a proper passengers' bill of rights. This bill set out concrete measures, for example, providing for appropriate compensation for passengers who were denied boarding. That could have amounted to $600 for flights of 3,500 km or more. However, the Liberals voted against the amendment that proposed to include this bill of rights in Bill C-49, without even trying to study it.

Why did the Minister of Transport reject our amendment? He could have taken a page from our proposal, which included concrete measures to protect air travellers. It is even harder to understand when we consider the findings of a study showing that 0.4% of EU-regulated flights are cancelled, which is four times lower than the cancellation rate of flights under current Canadian regulations. It seems clear that the Liberals are giving in to pressure from the airlines and turning a blind eye to the studies on the issue.

Bill C-49 would also require railway companies to install voice and video recorders in the locomotive cabs. This seems to make sense for dealing with accidents, but it must not prompt the railways to use this information for surveillance or disciplinary purposes. That is why we are calling for the use of these voice and video recordings to be reserved exclusively for the Transportation Safety Board.

The provisions of Bill C-49 are not clear enough and do not spell out how the train conductors' private information will be used by the railways. For example, the minister could decide by regulation that a train conductor's hourly productivity is something to take in consideration in a safety review. Following that reasoning, Via Rail Canada could use this data to manage employee performance, for example, during a stop at the Saint-Hyacinthe station.

The employees are refusing to give up their right to privacy. The government is not listening to the testimony of people like Roland Hackl, vice-president of the Teamsters Canada Rail Conference. According to him, the bill, as currently drafted, goes against the employees' rights as Canadians, and he is right. Bill C-49 might be in contravention of section 8 of the Canadian Charter of Rights and Freedoms because it would authorize the government or employers to gather private information without providing adequate protections. What is more, according to the findings of a Transport Canada working group, voice and video recordings are not part of proactive safety management.

The NDP therefore proposed a series of amendments to ensure that only the Transportation Safety Board could have access to the recordings in the event of an accident. Our amendments would also guarantee that the minister and the railways would not be able to use the voice and video recordings. Obviously, the Liberals in committee once again summarily dismissed these proposals.

I would like to talk about the change in the agreement between the airlines included in Bill C-49. Currently, the competition commissioner may make an application to the Competition Tribunal to propose the rejection of a merger of airline companies that stifles competition. The Competition Tribunal therefore has the authority to cancel a merger or a part thereof. However, under Bill C-49, the Minister of Transport will now have the final say in the matter.

As soon as the minister approves the agreement, the Competition Tribunal can do nothing to stop it. The NDP is opposed to clause 14 of the bill because it gives the minister the power to supervise and authorize joint ventures between airlines.

Imagine if Air Canada submitted a proposal to merge with United Airlines. Even if the commissioner found that the agreement would reduce competition among airlines and could raise ticket prices, the minister could still approve the merger if he or she deemed it to be in the “public interest”. I challenge the minister to provide a precise definition of that term. In Bill C-49, it is so vague that the minister could include reasons that are not in Canadians' interest but in the interest of shareholders of major airlines. The Liberal government is trying to erode our consumer watchdog's authority.

Bill C-49 would also amend the Canadian Air Transport Security Authority Act, the CATSA act.

Instead of designating new airports and helping regional airports grow, the government is passing the cost of security screening on to them.

Why did the government not propose a fairer model in which CATSA is responsible for funding screening and security services?

The government has been withdrawing funding from this area for a long time. Statistics Canada data shows that the former government collected $636 million from the public but that it allocated only $550 million of that amount to air security. The Liberal government is no better, since it has continued to underfund CATSA. Clause 69 of the bill provides for the addition of subsection 30.1(1) to the act, under which any airport can enter into an agreement with CATSA to provide new screening and security services.

Everything is fine up to that point. However, it is up to the airport to pay for these new services, which means that passengers will be the ones to foot the bill. In contrast, the NDP proposed that public funding be put in place for the development of regional airports. Our amendment would have also prevented designated airports, such as those in Montreal and Toronto, from being forced to absorb the cost of enhancing security services.

Indirectly, our amendment also sought to ensure that the cost of enhancing security is not passed on to passengers via ticket prices. All of our proposals in that regard were also rejected. Unfortunately, that is not surprising. That is how the government has been withdrawing funding from regional airports and screening and security services in large airports.

The government wants users to cover the cost of its own policy of underfunding. Bill C-49 also creates a loophole in the Coasting Trade Act in clauses 70 to 72. We are asking that these clauses be deleted from the bill. Canadian shipowners and sailors' jobs—and I should point out that my son is a sailor—must be protected from unfair competition from ships registered in the European Union.

Why would that competition be unfair?

Simply because labour on EU-registered ships is not subject to the same requirements as labour on Canadian ships. Under the provisions of Bill C-49, crew costs for European ships authorized to navigate in Canadian waters are 30% of Canadian crew costs. What is even more appalling is that there is no reciprocity whatsoever. In fact, the minister could decide to allow the repositioning of empty containers by ships registered abroad, while Canadian ships will not have reciprocal access to the EU market.

We would also like to see clauses 73 and 74 deleted from Bill C-49, as those clauses authorize the Canada Infrastructure Bank to provide loans to port authorities.

Lastly, with regard to Bill C-49, I want to point out that we fully support improving the rights of air travellers and protections for grain shippers. Many grain farmers have acknowledged that Bill C-49 is a step in the right direction.

Grain farmers have, however, proposed measures that go even further.

I will close by saying that we strongly oppose Bill C-49.

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5:50 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, I am very excited to see that small airports will have a chance to attract smaller new air carriers to their facilities. I was on the advisory board of the Waterloo airport for many years. One of the issues we had was trying to attract smaller carriers to our regional airport. The new act would allow international carriers to now own up to 49% of a Canadian air carrier versus 25% as it currently stands. Does the hon. member not see this as a great way to attract international investment into the Canadian marketplace to get better coverage for small facilities and small communities?

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5:50 p.m.

NDP

Brigitte Sansoucy NDP Saint-Hyacinthe—Bagot, QC

Madam Speaker, I thank my colleague for his question.

Yes, the whole issue of regional airport development is crucial. It is of concern to me, as well, as there is a small airport in my riding that would like to expand. However, as I said, these small airports cannot be asked to bear the burden of security costs. It is important that we have very clear public funding mechanisms in place to support the work these airports do.

We are living in an age when transportation is vital. In Acton Vale, a town in my riding, there is a transport logistics company that is demonstrating how companies must increasingly embrace multimodal transportation, the idea of transporting goods by a combination of truck, ship, and plane.

Transportation is too big an issue to cram into an omnibus bill that seeks to amend 13 vastly different acts at once. We need to focus on these elements. We need a true bill of rights for air passengers. The bill contains some important provisions about grain transportation, but they are eclipsed by the many provisions that put far too much power in the hands of the transport minister.

This bill needs to be split up so we can study all of its aspects in depth, because the transportation issue is far too big.

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5:50 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, my colleague gave a very good speech. I have many concerns about this bill. I have only one question to ask my colleague. What does the NDP think is the worst part of this bill?

I personally think there are some parts that are perfectly acceptable, but there are also some serious problems.

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5:55 p.m.

NDP

Brigitte Sansoucy NDP Saint-Hyacinthe—Bagot, QC

Madam Speaker, I thank my colleague for her question.

What worries me the most about Bill C-49 is that it does not make Canadians' interests a priority, whether it is customers, consumers, or even the people who work for these companies.

It seems as though this bill is going to serve the interests of large corporations and foreign investors. The government is ignoring the fact that some of the measures, such as the one calling for audio-video recorders in locomotives, will be in violation of workers' rights. The government is ignoring the fact that consumers will be the ones to suffer the consequences of this bill.

Our role in the House of Commons is to vote in favour of legislation that contributes to the common good and that serves the interests of our constituents. We need to pass legislation that respects charters of rights and freedoms.

When we were debating this bill, all of the members of the Standing Committee on Transport, Infrastructure and Communities were telling us that the experts were unanimous on some issues but that the amendments put forward to address those experts' concerns were still not adopted by the committee at report stage. We must ensure that the bill that we pass respects the rights of workers and consumers.

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5:55 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Madam Speaker, it is my pleasure to rise today to talk about what I term the “treat and trick” bill. It is in keeping with the season that is upon us. I call it that as it is being brought through as a bill of rights for passengers. It has been a topic of debate beyond this place, around the coffee tables and coffee shops in northern Alberta, particularly after some events in the media.

Here we are debating a bill of rights for passengers. One of the things that is beautiful about Canada is that we live in what we think of as a free trading country and no one is under any obligation to provide or buy services. Free trade and active competition allow us to travel fairly cheaply.

However, the bill of rights that would result from this bill may impede our free will or ability to choose a plane to fly on. As we impose a bill of rights upon airline carriers, it may be difficult for them to provide the same level of services they currently do at the same rates. We already have some of the most expensive air traffic rates in the world. With an increased burden upon them, the air carriers may increase the price.

That is definitely the main reason why I call it the “treat and trick” bill. While everyone likes the idea of a bill of rights, we do not really know what it will look like. The bill only lays out the framework to write it, not the actual details. There are many other things that slid underneath the first page of the bill, such as rail safety and interswitching.

Up in northern Alberta, rail is a big part of our transportation system. A lot of grains, cereal crops, and canola are grown in my riding. I heard from the Canola Growers Association of Canada that my riding might be the largest canola producing riding in the country and we utilize the rail system.

The interswitching that was brought in before, of 160 kilometres, worked very well for the grain farmers. However, given that my riding is 700 kilometres from top to bottom, people felt that it should have been increased much beyond 160 kilometres. Some of the grain that is grown in my riding is 700 kilometres from Edmonton or the nearest terminal in Westlock. Increasing the competition may bring the rail up north more effectively, perhaps to a loading terminal or that kind of thing.

Interswitching is a big deal. I have heard from my constituents that they are disappointed that the particular method that had been brought in by the previous Conservative government was not continued in this bill. The Liberal government talks about interswitching and making it better, but the regulations and different scenarios that have to be in place are convoluted and have many loopholes. Producers in my riding are concerned that the interswitching proposed in this bill would not have a positive effect on getting their products to market.

We heard very eloquently from the member for Central Nova about how it is imperative that we get the products that are produced in Canada to market. That is the stated goal of the bill as well, yet we see that it is not going to happen with the interswitching as it is laid out in the bill.

Finally, I want to talk about section 14 of the bill, particularly joint ventures. I understand a joint venture is where two airlines happen to fly similar routes between two cities and could get together in a joint venture and say they will fly to some cities together rather than competing with each other. When two airlines get together, the Competition Bureau must do an assessment and say they can work in a joint venture or no, it is going to lower competition and that would be detrimental to the public interest or to folks flying on the airplanes.

The bill proposes to change that requirement not only to have the Competition Bureau look at it, but also have the minister put a political lens on it. The term that the bill uses is “in the public interest”. I would say that the ability to use the airline, the ability to be able to afford to use the airline, and to ensure that everything is done safely would be in the public interest.

Most of these things can be dealt with. The safety aspect definitely needs to be addressed by the government, but the other two can be adequately addressed by competition. We need to ensure that there is more competition. Some of the things that the bill proposes to do are going to make it more difficult for airlines to come into the fore when it comes to rates at airports. We have seen the government in the area when it comes to conflicts of interest. We would like to see the minister sign-off be taken out of the bill because, as we have seen with other ministers of the crown, they have not been able to avoid conflicts of interest. This would place a potential transport minister in a conflict of interest when he has to judge on joint venture deals.

The government would like us to think this is all about a passenger bill of rights, but we see there are a number of other things in it that would do nothing to improve passengers' rights and would also perhaps place ministers in conflicts of interest.