Debates of Oct. 30th, 2017

Questions on the Order Paper

[Some hon. members]

Agreed.

The House resumed consideration of Bill C-49, An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts, as reported (with amendments) from the committee, and of the motions in Group No. 1.

Transportation Modernization Act

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, it is my great pleasure to be here today to debate this extremely important bill. I want to start by thanking the minister for his work and for the vision that he has shared with Canadians regarding this bill. I also want to thank the Canadians who were consulted and who gave us a lot of information about Air Canada.

The three main topics I want to discuss today are passenger rights, joint ventures and, of course, foreign ownership.

Before I begin speaking on those three points, I want to say that Canadians love to travel. They travel for pleasure, but also for business. When they do travel, they often mention certain areas that they feel we must do better in. One, of course, is the cost. The cost is very high in Canada compared to that in many other countries. It is an area where we need to make some improvements.

Canadian travellers also speak about their rights and ensuring that they are recognized in the many things they face while travelling. If it is simply a matter of delays, knowing the reason behind the delays would be extremely important. If it is overbooking, that is a different story altogether. They are looking for improvement in those areas, and it is obvious that Bill C-49 will answer many of those concerns.

I am the member for Sackville—Preston—Chezzetcook, and in Nova Scotia we have a fabulous airport in Halifax. It is a very important full-service airport in Atlantic Canada. It is always important to remember the importance of these types of companies that generate over $2.7 billion to the economy, which is extremely important for Nova Scotia. It is also important to mention that there are over four million travellers taking flights to and from Halifax. That, in itself, is very impressive.

Let us talk about the air passenger bill. This legislation will address very important issues that Canadians face and that we need to deal with, including consistency between our airline carriers, which is extremely important; passengers' rights; industry or carriers' rights as well; and when there are issues, the compensation. We need to bring some standardization to compensation, because it is not obvious if Canadians are being compensated for some of the challenges they face.

As I indicated earlier, we need to consider denial of boarding, delays and cancellations, baggage that is lost or damaged, tarmac delays, seating with family members or delicate cargo, such as musical instruments, etc. Those are major issues that we need to look at as a government. This bill will help us reach that objective.

Let us look at the issue we had last summer when a flight from Belgium to Montreal was diverted to Ottawa. The passengers stayed on the plane. They were told by the carrier there would be a delay of about 30 minutes. The 30 minutes continued on and on, and at the end of the day had become six hours. Throughout those six hours, the passengers were not able disembark from the plane, and the air conditioning stopped or broke down. They were running out of food and water. These are all critical things that passengers should be able to access at all times. Not being able to do so showed disregard for the passengers and their rights. We need to do something about that.

Not so long ago, we also saw on television a United Airlines flight on which a doctor, again because of a mistake by the carrier, was removed because of overbooking. Who did the overbooking? Again, it was the carrier that was at fault, yet the passenger was the one who was denied his rights. We need to make improvements in that area.

As far as adding to the bill of rights is concerned, we could also look at the question of official languages for Air Canada.

We need to ensure that people who want to use French or English have equal opportunities to do so. This is essential.

That is the important piece with respect to the bill of rights that I wanted to talk about.

We have to keep in mind that the air transportation sector is a challenging one today. There have been many changes. Many people choose to travel by air. It takes a huge capital investment by companies, yet results in a small profit margin. Therefore, we need to find ways to maximize efficiencies. It is already happening to some extent, as there are all kinds of different agreements. However, we need to do more. One approach that would really work well is the joint venture, with two or more companies working together to give better service to Canadians here in Canada and abroad. If a company or various companies want to have a joint venture today in Canada and to amalgamate to offer a better service, they normally have verify this with the Commissioner of Competition. That was the main analysis required. However, we need to look at the wider benefits for Canadians. With Bill C-49, these companies can now make an application to the minister, who would consult with the Commissioner of Competition, but who would also look at the other benefits that Canadians could take advantage of. To some extent, that would be the measurement we would use to make that happen. This process will be much better than what we now have and allow Canadian companies to benefit from global trends and to realize efficiencies. It will also allow Canadian travellers access to a wider range of destinations, provide for easier in-bound travel, increased tourism, and increased flight options. That is another big piece of Bill C-49 that will be very helpful.

With respect to foreign ownership, previously foreign investors were only allowed to own up to 25% of the voting rights. Now they will be able to own up to 49%, putting us in line with many other countries in the world. However, no single investor would be able to own more than 25%, which is crucial, as well as no more than 25% for other carriers as well, which is essential.

We are paying way too much. Many people are travelling across the border to take flights with JetBlue, allowing them to travel from Boston to Florida for $99. We need to do better, because last year five million people crossed the border to take flights in the United States. We need to do better in this area, and we are well on our way with this new bill.

In conclusion, Canadian travellers are a priority for our government, and this transparent new process will allow us to see many changes. We will see smaller airports, such as in Atlantic Canada, Fredericton, P.E.I., Cape Breton, etc., become more important because there will be more choices. With the new provisions for joint venture we will see more flights in smaller rural communities, lower fares, more choices, and improved services and connectivity. This bill is well in line with that. I wonder why it has been so long in coming, because this is extremely important to making us more competitive and ensuring that Canadians have better access to better transportation.

[Martin Shields, Conservative, Bow River, AB]

Mr. Speaker, I appreciate my colleague's enthusiasm for this bill. He referred to changes with respect to the air passengers' bill of rights. I wonder what rights he thinks passengers would have on a plane. The bill sets up a policy that discusses events and how someone else would establish the reasons for the events and the compensation to be paid. In the bills of rights in the United States and Europe, there are set standards, and when certain things happen the passengers know what they will receive compensation for. However, Bill C-49 is silent on that, especially as it talks about defining the causes of the problem after they have taken place. I wonder if the hon. member would respond to that particular issue with this piece of legislation.

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, there is no question that the bill of rights is extremely important, but we must take one step at a time, one block at a time.

Right now we are creating some implementation regulations. We are going to look at standardizing and finding out exactly what compensation to give. That is the next step. I am glad you are asking that, because that next step should have been done years ago but was not. It is about time and our government will move forward to get it done.

[The Speaker, Liberal, Geoff Regan]

I would remind my hon. colleague to address his comments to the chair, because when a member says “you” or “your”, it sounds like the member is referring to the Speaker. I do not think the member meant the Speaker in this case.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, like the member I also represent many small regional airports and have serious concerns about this legislation. I am concerned about the fact that the bill would pass passenger security screening to small regional airports rather than increasing funding for CATSA. The imposition of the cost recovery principle on these small airports will mean they will simply not be able to offer international flights. These are serious concerns.

Could the member please tell us a bit more about these concerns and what impacts there will be on small airports?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, right now many of these small airports are not being used and are not very efficient. Air Canada just changed some flights from here to Halifax and passengers will have to stay overnight because there are no available flights before the next morning.

We need to find ways to make these small airports viable, and the only way to do that is by creating funding through foreign investment or joint ventures. That would create more prosperity and investment and make things better in small rural communities.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I also have a really important airport in my riding, the Victoria International Airport. It is a superbly run airport. It is smaller than the Halifax Stanfield International Airport.

I discovered that the airport authority handles some things and Transport Canada regulates, but in-between there is this entity called Nav Canada. I was distressed to discover that it has been several years since Nav Canada removed air traffic controller supervisors. Nav Canada does not have a single air traffic control inspector who has ever worked in civilian air traffic control, and there are significant issues of concern to air traffic controllers in my riding.

Has the hon. member heard any similar concerns from air traffic controllers in the Halifax area?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, I did not hear of any specifics in my region concerning air traffic controllers, but I have heard them before. It is an issue that we need to keep in mind as we move forward with this legislation.

As I said, this is a first step and there are other steps to follow. We will be able to capture some of those issues as we move forward.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, today I rise to speak at the report stage of Bill C-49. This bill covers a range of amendments on the transportation sectors.

During my campaign, I heard loud and clear from many of my constituents that people were tired of omnibus bills from the previous government. There was an increased desire for accountability and transparency, yet here we are again discussing an omnibus bill that is moving through this House, with amendments to 13 acts, without giving parliamentarians adequate time for debate.

Because of the broad range of topics in this bill, I will keep my comments to air transportation, CATSA, and will quickly touch on marine transportation.

As many do in this House, I fly often. Over the last several months, we have seen stories of people being dragged off planes, stalled on the tarmac, and having to call emergency services. Too often, settlements are swept under the rug, and the industry continues with business as usual. I think Canadians are fed up. They are tired of waiting on the tarmac endlessly and are tired of overbooking.

The NDP introduced a bill that clearly set out the steps needed to establish a passenger bill of rights. The transport minister supported our bill and could have followed our example by introducing concrete measures to protect airline passengers. For example, when a flight is cancelled, the airline would have to offer passengers a choice between a full refund and re-routing under comparable conditions. Air carriers that failed to comply with this rule would have to pay $1,000 in compensation to every passenger, in addition to the refund. If 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. For each additional hour during which the airline failed to comply with that rule, it would have to pay each passenger $100 in compensation.

We also asked the government to implement protection measures immediately instead of delaying them until 2018. However, the minister chose not to propose concrete measures. Instead, he included provisions in the bill. The government sold it to the media and to Canadians as a passenger bill of rights, but that is simply misleading. The minister is delaying what needs to be done by handing over the responsibility for regulations to the Canadian Transportation Agency. When the CTA enacts inadequate regulations, it will give the minister a way out. That is not the political leadership Canadians expect.

What is disappointing is that the Liberals rejected our amendments without studying them, folding under pressure from the airlines.

The facts are clear that flights subject to the European regulations have a cancellation rate of 0.4%, which is four times lower than flights subject to the current Canadian regulations.

We have seen this government continuously abdicate its responsibility for airports. While the federal government does not manage them directly, it is up to the government to ensure a strategic vision, especially in a country as large as Canada. This vision must include every single size of airport, from Pearson to the local airports in my riding.

The communities of Campbell River, Comox, Port Hardy, and Powell River have expressed serious concerns about this continued pursuit of the for-profit privatization of our airports. These airports are essential elements of the social and economic infrastructure in our region. Representing many medium-sized and rural communities, air transportation provides a vital link that connects families and communities and promotes economic growth.

As a representative of the third largest riding in British Columbia, I have landed and taken off from several airports in my region, going to or returning from Ottawa. This is how I get to community events across the riding when travelling to and from this place.

These communities need these services, and as the government continues this privatization creep, they are connecting with me about their concerns. Campbell River recently shared with me that these privatization plans delay much-needed effective action on other issues, such as the burden of federal rents and fees on airlines and air travellers. These stand in the way of more competitive and economical air transportation in Canada.

There is still worse news in this bill regarding remote and rural airports. I think members can understand why I will not be supporting this bill as it stands. Bill C-49 would amend the Canadian Air Transport Security Authority Act. Instead of supporting the growth of regional airports, the government would use Bill C-49 to pass the buck for security screening to regional airports or the municipalities that own them. This policy would hurt rural economies, as the cost of security screening is so high that almost no small airport would be competitive if it had to pay the bill. The government is clearly stepping back from funding and developing regional airports.

Currently, the commissioner of competition has the power to determine whether a joint venture arrangement between airlines is anti-competitive and can subsequently apply to the Competition Tribunal to prohibit the joint venture. However, Bill C-49 would strip this power from the commissioner of competition. If Bill C-49 is adopted, the Minister of Transport would have the final word on proposed joint ventures between airlines. Once an arrangement was approved, the Competition Tribunal would no longer be able to prohibit it.

If Air Canada proposed an arrangement to merge its operations with those of an American company, even if the commissioner found that the agreement would lessen competition among airlines and increase ticket prices for passengers, the minister could approve the arrangement if the minister was satisfied that it was within the public interest. This is why the NDP proposed deleting clause 14 of Bill C-49, as it would expose consumers to unfair increases in airline ticket prices.

A decision by the minister to ignore the commissioner's advice could be influenced by political considerations to favour an airline at the expense of consumers. In addition, the bill does not spell out what is meant by the “public interest” as a basis for a decision by the minister to approve a merger of two airline operations. The concept of public interest is so broad that the minister could consider factors that are not in the interest of Canadians but rather in the interest of the shareholders of major airlines.

Bill C-49 would impact two elements in the marine industry. First, the bill would allow foreign-registered vessels to compete unfairly with Canadian shipowners. We are requesting that Canadian-registered vessels continue to have preferential access to government contracts, carriage of goods by container, and repositioning of empty containers. In addition, the government did not consult with stakeholders who would be affected by this measure.

Second, the Canada infrastructure bank would be permitted to provide loans to port authorities. Instead of assuming responsibility for directly funding the development of port facilities, the federal government would transfer that responsibility to private investors. Investors would charge high rates of interest on their loans, and once again, the consumer would foot the bill. The cost of the required return on investment could affect consumers, since many goods transit through ports.

If private investors such as Morgan Stanley acquire port facilities, Canadians would lose control of their port infrastructure. In fact, the government has asked Morgan Stanley to study a port privatization scenario, even though a subsidiary of Morgan Stanley is earning millions by buying and reselling parts of Canadian ports.

The concerns I have raised today were also brought up by our transport critic in committee and in the House. The bill is simply not good for Canadians, and for that reason, I cannot support it.

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

Mr. Speaker, I appreciate many of the member's comments. I think it is worth noting that we have a substantial piece of legislation. A great deal of effort over the last couple of years has gone into it, and it went to committee. As many members know, in committee there were a series of amendments, the majority of them opposition amendments, to improve the legislation. I think that speaks volumes in terms of the willingness to try to improve the legislation.

The member, as I did, sat in opposition when Stephen Harper was the prime minister, when we didn't have any opposition amendments. However, we had six opposition amendments pass. I can see that my Conservative friends do not necessarily like that, but it is true.

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

That is not true.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

I would challenge the member across the way to demonstrate a piece of legislation that Harper ever passed when there were six opposition amendments while he was in a majority government situation.

[An hon. member]

I was on the industry committee, and we passed tons of amendments.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

I invite the member to share with the House—

[The Deputy Speaker, Conservative, Bruce Stanton]

Order. We have some other debate going on here that is not necessarily directed to the Chair. I encourage hon. members to listen while other members have been recognized and are arguing their points here in the House. They will have an opportunity to respond perhaps in another segment of questions and comments.

The hon. member for North Island—Powell River.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, that was an interesting discussion on the floor. I am not sure what the question actually was.

I am happy to point out the fact that there were many amendments added in this conversation at committee, and many of those amendments were absolutely ignored. Where we have to look specifically is at the passengers' bill of rights.

What we wanted to see in this legislation was something concrete that would set a direction, and we did not see that. Again, this is wishy-washy legislation that does not really give direction. It certainly does not assure Canadians that their rights are going to be honoured and that we are going to move forward in this country and actually have a bill of rights for passengers. Sadly, we do not see that.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, my question has to do with the price of an airline ticket. I am a little concerned when I see some of the provisions in the bill that would allow the airport authorities to basically buy screening services. I worry. In my riding, for example, there is only Air Canada. It is a monopoly situation. The price of a ticket there is nearly $1,000 to get to Ottawa, compared to being able to go to Florida for $200, if I wanted to.

Is the member concerned about the increase in airline ticket prices?

[Rachel Blaney, NDP, North Island—Powell River, BC]

Mr. Speaker, I think we have to be very concerned about what we are seeing, which is the downloading of services and increasing privatization, which will specifically hinder regional, small airports across this country.

I think of my riding of North Island—Powell River. Many people come to the beautiful region for tourism. It is a huge part of our economy. We love to see people visit and appreciate the beauty of the surroundings. However, if our regional airports cannot be competitive, that is going to create a huge barrier to economic development.

Again, we have to make sure that we see a slowing down of the government's fast-tracking towards privatization. We have to make sure that we look at being competitive and make sure that those airports are successful so that our communities can be successful.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Mr. Speaker, I am pleased to have the opportunity to speak today about rail safety in the context of Bill C-49, the transportation modernization act, which proposes to amend the Railway Safety Act. This is an important step in strengthening Canada’s comprehensive approach to rail safety.

I would like to take this opportunity to acknowledge the dedication that the Standing Committee on Transport, Infrastructure and Communities has demonstrated in its thorough analysis of the components of Bill C-49. Improving transportation safety and, in particular, enhancing the safety of the rail transportation system, is a priority for this government.

To this end, the government is proposing to amend the Railway Safety Act to mandate voice and video recorders in the locomotive cabs of federally regulated freight and passenger railways in Canada.

The approach proposed in Bill C-49 builds on the 2016 report from the Transportation Safety Board of Canada which confirmed that data from combined voice-and-video recording systems would help investigators understand the sequence of events leading to an accident and in identifying operational human factor issues, including those that may have been a factor in the accident.

The Transportation Safety Board of Canada also stated in its safety study that, when used proactively as part of a safety management system, the information from voice and video recorders can provide significant benefits to help identify and mitigate risks before accidents occur.

The proposed changes to the Railway Safety Act reflect careful consideration of the best way to maximize safety benefits while safeguarding the privacy rights of railway employees.

In essence, the amendments would require companies to install and maintain voice and video recorders in locomotives but would also establish specific limits on how the recordings can be used.

The result of the proposed legislative requirements would be, first, objective data that would allow Transport Canada, companies, and safety investigators to better understand events leading up to, and during, an accident or incident.

Secondly, the information could also be used in a proactive way, but within very clear limits, to identify safety risks before accidents occur. For example, data would allow Transport Canada to perform trend analysis to inform future safety rules and regulations. Companies could use the data to develop new or improved training programs, to strengthen existing operating procedures, or to establish new ones to address identified safety gaps.

This government understands that the proposed amendments have privacy implications, in particular for operating crews. These implications have been recognized throughout the study of this bill.

I can assure the House that safeguarding the privacy rights of railway employees has been a key consideration in the development of the proposed amendments. This is why Bill C-49 imposes strict and clear limits on the use of the information from video and voice recorders, as well as strict and clear provisions on how information must be handled, all to safeguard the privacy rights of employees.

For instance, any recording used for safety management must be selected through random sampling. Regulations that would follow royal assent will outline objective parameters for random sampling. They will also outline requirements for data protection that companies would be required to comply with, such as standards for encryption, data storage, and retention periods. Companies would also be required to develop and implement policies and procedures to respond to record-keeping requirements and managing access to the information, in particular how they will safeguard against unauthorized access.

During the committee’s study of the bill, one other issue we heard about is the issue of discipline. We heard from parliamentarians and some stakeholders concerns that data from locomotive voice and video recorders might be used for disciplinary purposes. I can assure this House that the fundamental purpose behind the proposed regime is safety. It is not about, nor does it allow for, the monitoring of day-to-day performance of employees. In this context, it is not meant to facilitate disciplinary measures.

However, it is possible that, in certain egregious circumstances shown by the recordings, disciplinary measures might be the most appropriate means to address a serious safety concern. The regulations will define what is meant by egregious circumstances so that this is not left to the discretion of railway companies.

Consultations with stakeholders, including individuals, companies, unions and other interested parties will be an integral part of building the regulations to ensure we get this right. The proposed regime clearly provides that no company shall use or communicate the information that is recorded, collected and preserved unless the use and communication is done in accordance with the law.

As is the current practice, Transport Canada would conduct inspections and audits to monitor compliance with legislative and regulatory requirements. In the event of non-compliance, Transport Canada would have the authority to take appropriate enforcement action, including imposing administrative monetary penalties.

I would like to reiterate that mandating on-board recording devices has one purpose and one purpose only: to strengthen the safety of Canada's rail industry for all Canadians, including railway employees. The recordings will help explain what happened after an accident, but, more importantly, they will have the real potential to allow us to identify and address safety concerns in order to prevent accidents from happening.

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

Mr. Speaker, my colleague and I had the opportunity to work on the committee together. The member said that he could assure the House that the information collected through the video and voice recordings would absolutely not be used for disciplinary purposes. Previous to that comment, he said that the details of how the legislation would be monitored would be articulated in regulations. I am not sure how he can assure the House of something that is not written in the bill.

The committee received a letter from the Privacy Commissioner, outlining a number of serious concerns he had with the bill and how the bill might be interpreted. Would the member like to comment on that as well?

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Mr. Speaker, I thank my colleague for her question.

Let me reiterate that the installation of voice and video recorders on locomotives is something the Transportation Safety Board of Canada has been calling for for a long time. TSB officials appeared before the Standing Committee on Transport, Infrastructure and Communities to reaffirm their support for this measure and remind us of the critical role that recorders can play not only in helping investigators understand an incident, but also in preventing future incidents.

The TSB has added locomotive voice and video recorders to its Watchlist of key safety issues the transportation system needs to address.

As for the privacy issue, as I mentioned in my speech, Bill C-49 imposes strict limits on how the recordings could be used, and the regulations to be developed will have to take into account the important issue of privacy rights.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, it is very telling of the Liberal government when it says that it will make it safer for the public by going after engineers. Year after year, there has been underfunding of site inspections. After the Lac-Mégantic disaster, CP got rid of 500 safety and maintenance workers. Past derailments have been the result of poor track maintenance, poor on-site inspections, and problems with maintenance and oversight. However, the government is telling Canadians not to worry because it will be recording the work of the engineers. These engineers are running massive trains, without backup, because the government made a change, allowing a single driver on a train that could be carrying all manner of volatile combustibles through major cities.

I would like to know this. If public safety is such an important issue and the use of video recorders, which will contravene the Privacy Act, is important, why has the government not added video recorders for senior management at CP and CN? Following cut after cut in jobs, why is the government targeting the people who are doing the front-line work?

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Mr. Speaker, I thank my colleague for his question.

Our government is committed to rail transportation safety. That is why we are moving forward with this measure that takes a reasonable and balanced approach to strengthening rail safety.

I would also like to remind my colleague that representatives of the Transportation Safety Board appeared before the Standing Committee on Transport, Infrastructure and Communities to reiterate their support for this measure and to talk about how important recorders can be in understanding how an incident occurred and preventing future incidents.