House of Commons Hansard #226 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

12:10 p.m.

NDP

Anne Minh-Thu Quach NDP Salaberry—Suroît, QC

Mr. Speaker, I thank my colleague from Trois-Rivières for having explained so clearly the main problems with a bill that, as he said, is a mammoth omnibus bill, a Trojan horse. This bill amends 13 pieces of legislation and we are also under time allocation.

I will not even have the time to speak about this bill that will affect my riding. There is a port in Salaberry-de-Valleyfield. The Liberals claim to stand up for Canadian jobs. The part on coasting trade does not even favour our maritime industries for the transportation of bulk products, for example, or goods that go through Salaberry-de-Valleyfield.

What also worries me is everything related to passenger rights. We have seen very alarming videos lately of passengers being dragged from their seats because the companies overbooked. That is still happening and could continue to happen.

What does my colleague think about that? Could he discuss the NDP’s amendments that were defeated and that should have been accepted by the Liberals?

Transportation Modernization ActGovernment Orders

12:10 p.m.

NDP

Robert Aubin NDP Trois-Rivières, QC

Mr. Speaker, I thank my colleague from Salaberry—Suroît for asking this truly broad question.

Indeed, in this magnificent maritime corridor that is the St. Lawrence and the Great Lakes, all members affected will not have the opportunity to speak. Spokespersons are sent to Ottawa to defend their part of the country, and they are not given the opportunity to speak on bills that affect them directly. That is ridiculous.

As for the passenger bill of rights, the main amendment by the NDP was very simple. It sought to include in Bill C-49 the passengers' bill of rights that was tabled by the NDP in the previous Parliament, and to have us vote on a true passengers' bill of charter, not guidelines for consultation.

Transportation Modernization ActGovernment Orders

12:10 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, it is a pleasure working with my colleague on the transportation committee.

In 2002, the United States had a form of a passenger bill of rights, and in 2005, Europe did. We are actually playing 15 years of catch-up to our counterparts. I was wondering if my colleague could comment on the fact that, in Canada, we are actually playing catch-up to our counterparts.

Transportation Modernization ActGovernment Orders

12:10 p.m.

NDP

Robert Aubin NDP Trois-Rivières, QC

Mr. Speaker, I thank my colleague and I would like him to know that I also enjoy working with him in committee.

He raised some essential points. When it comes to a passengers' bill of rights, we do not have to reinvent the wheel here in Canada because good models already exist, including the European Union's bill of rights, which many witnesses mentioned in committee. They said that Europe's bill of rights was good, that it worked, and that we should use it as a model.

Transportation Modernization ActGovernment Orders

12:10 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, last year the Minister of Transport presented his vision for the future of transportation in Canada, also referred to as transportation 2030. This vision reflects thorough consultation with Canadians, stakeholders, provinces and territories, indigenous groups, and academics, following the release of the final report on the Canada Transportation Act review, also known as the Emerson report.

Transportation 2030 is made up of a series of initiatives under five themes: the traveller; safe transportation; green and innovative transportation; waterways, coasts, and the north; and trade corridors to global markets. These themes encompass various modes of transport and allow the government to take a holistic approach in ensuring the transportation system is equipped to support our broader priorities.

Canadian travellers and their experiences are top of mind for our government. During consultations conducted by the Minister of Transport, we asked Canadian travellers for their feedback, and they were clear. They want lower-cost air travel, more opportunities for leisure and business travel, and they want to see Canada become a more attractive travel destination for visitors. Canadians told us that they want long-term sustainable competition, which will allow for the introduction of additional air services, improved air connectivity, and more choice.

The government has listened, and it is committed to achieving tangible improvements to the traveller experience. As a result of the feedback we received, a number of proposals have been introduced in Bill C-49 to help improve the traveller experience. For example, the government intends to liberalize international ownership restrictions for Canadian air carriers. What does this mean for Canadian travellers? Allow me to briefly describe this initiative.

The legislation proposes to liberalize international ownership restrictions from 25% to 49% for Canadian air carriers, with associated safeguards. For example, a single international investor would not be able to hold more than 25% of the voting interests of a Canadian air carrier, and no combination of international air carriers could own more than 25% of a Canadian carrier. The policy change would not apply to Canadian specialty air services, such as aerial photography or firefighting, which would retain international ownership levels at 25%. Liberalizing international ownership restrictions means Canadian air carriers—and this includes all passenger and cargo providers—would have access to more investment capital that they can use for innovation. This would bring more competition into the Canadian air sector, providing more choice for Canadians, and generating benefits for airports and suppliers, including—

Transportation Modernization ActGovernment Orders

12:15 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Mr. Speaker, I rise on a point of order. I think, if you check, you will find we have lost quorum.

Transportation Modernization ActGovernment Orders

12:15 p.m.

Conservative

The Deputy Speaker Conservative Bruce Stanton

I thank the hon. member for bringing this to my attention. I will begin to count.

And the count having been taken:

Indeed, we do not have quorum. I will ask that the bells be rung.

And the bells having rung:

Quorum has been reconstituted, and we will carry on with the debate.

Resuming debate, the hon. member for Mississauga—Streetsville.

Transportation Modernization ActGovernment Orders

12:15 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

In fact, Mr. Speaker, in the fall of 2016, the Minister of Transport exempted from the 25% ownership restrictions two companies that wanted to enter the Canadian market supported by increased foreign investment. This decision is now permitting Enerjet and Jetlines to pursue their intention to create low-cost carrier service to Canadians. With liberalized foreign investment provisions, Canadians would have more frequent access to air travel within and from Canada to transborder and international locations.

Like most countries, Canada limits international ownership and control of domestic air carriers. As I mentioned, under the Canada Transportation Act, non-Canadians currently cannot possess more than 25% of the voting shares of a Canadian carrier. Additionally, Canadian air carriers must also be controlled by Canadians, which means they may not be subject to controlling influence by international investors.

Limits on foreign ownership and control of air carriers are the norm around the world. For example, in the United States, the limit is 25%, while the European Union, Korea, Australia, and New Zealand allow up to 49%, and Japan allows 33.3%. Limits vary depending on the circumstance of each region. However, Canada's current ownership limits may be acting as a barrier to new services and enhanced competition.

Earlier I mentioned that the two prospective ultra-low-cost carriers, Canada Jetlines and Enerjet, have already applied for and received exemptions to the current limits on international ownership from the Minister of Transport. This was granted because both companies successfully argued that, under the current 25% limit, there is insufficient risk capital in the Canadian market to support the launch of new services.

Reflecting on this reality and the Canada Transportation Act review recommendations, the government is proposing changes that would allow international investors to own up to 49% of the voting shares of Canadian air carriers, by introducing legislation that would amend the act and other relevant acts. As I mentioned earlier, countries have different approaches to international ownership of air carriers, and our government wants to make sure that Canadian air carriers compete on a level playing field.

To protect the competitiveness of our air sector and support connectivity, no single international investor or any combination of international air carriers would be allowed to own more than 25%, but how would this benefit Canadian travellers? The direct impact of higher levels of international investment is that Canadian air carriers would have access to a wider pool of risk capital. This would allow air carriers to be better funded and could allow new carriers, which are otherwise not able to find sufficient risk capital, to enter the Canadian market.

New carriers, including ultra-low-cost carriers offering extremely competitive prices, are expected to bring more competition into the entire Canadian air travel sector. This could, in turn, reduce the cost of air transportation and open new markets to Canadian consumers and shippers. Small markets currently underserved by existing carriers could also benefit from services by new carriers. For example, airports in smaller cities that currently offer services to a very limited number of destinations could benefit from the addition of new services since we know that ultra-low-cost carriers use these smaller airports as their hubs. All of this could lead to more choice when purchasing airline tickets, more travel destinations for all travellers, including those from smaller cities, and lower prices for Canadian travellers. Additionally, there could also be benefits for airports and suppliers and the entire country, as more jobs are added to the Canadian economy.

Another improvement to the air travel sector in this bill is that it proposes a new transparent and predictable process for the authorization of joint ventures between air carriers, taking into account competition and wider public interest considerations. Joint ventures are a common practice in the global air transport sector. They enable two or more air carriers to coordinate functions on specific routes, including scheduling, pricing, revenue management, and marketing and sales. In Canada, air carrier joint ventures are currently examined from the perspective of possible harm to competition by the Competition Bureau under the Competition Act.

Unlike many other countries, notably the United States, Canada's current approach does not allow for the consideration of the wider public interest benefits other than competition and economic impacts. Furthermore, the bureau's review is not subject to specific timelines. This raises concerns that the current approach to assessing joint ventures may make Canadian carriers less attractive to global counterparts as joint venture partners and may limit the ability of Canadian carriers to engage in this industry trend.

The bill before us in the House proposes amendments that would allow the minister to consider and approve air carrier joint ventures, taking into account competition considerations. On this latter concern, the current transport minister would work in close consultation with the commissioner of competition to ensure that he or she was properly informed regarding any concerns he or she may have with regard to competition. Air carriers that chose to have their proposed joint ventures assessed through the new process would be given clear timelines for an expected decision.

Providing Canada's air carriers with such a tool would also benefit the air traveller. By joining up networks, air carriers could allow seamless travel to a wide range of destinations and could reduce the duplication of functions. For Canadians, this could mean more seamless access to key global markets, easier inbound travel in support of tourism and business, and increased transiting traffic through our airports, thus increasing flight options.

Globally, airports are making unprecedented investments in passenger screening to facilitate passenger travel and to gain global economic advantages. Canada's largest airports have expressed interest in making significant investments in passenger screening, either through an additional workforce or technology innovation. Smaller airports have also shown interest in obtaining access to screening services to promote local economic development. In the last two years alone, 10 small airports across Canada have requested screening services.

The proposed amendments to the Canadian Air Transport Security Authority Act are important, as they would create a more flexible framework to allow CATSA to provide these services on a cost-recovery basis, which would in turn allow Canada to maintain an aviation system that is both secure and cost-effective. It would also strengthen Canadian communities' competitiveness as they attracted new commercial routes.

That is not all the transportation modernization act would do. Bill C-49 proposes to mandate the Canadian Transportation Agency to develop, in partnership with Transport Canada, new regulations to enhance Canada's air passenger rights. These new rules would ensure that air passenger rights were clear, consistent, and fair for both travellers and air carriers. When passengers purchase an airline ticket they expect and deserve that the airline will fulfill its part of the transaction. When that agreement is not fulfilled, passengers deserve clear, transparent, and enforceable standards of treatment and compensation for such situations.

Under the proposed legislation, Canadians would benefit from a uniform, predictable, and reasonable approach. The details of the new approach would be elaborated through the regulatory process, which would include consultations with Canadians and the air stakeholders. My objective is to ensure that Canadians have a clear understanding of their rights as air travellers without negatively impacting access to air services and the cost of air travel for Canadians.

Bill C-49 specifies that the regulations would include provisions regarding the following most frequently experienced irritants: providing passengers with plain language information about carriers' obligations and how to seek compensation or file complaints; setting standards for the treatment of passengers in the case of overbooking, delays, and cancellations, including compensation; standardizing compensation levels for lost or damaged baggage; establishing standards for the treatment of passengers in the case of tarmac delays over a certain period of time; seating children close to a parent or guardian at no extra charge; and requiring air carriers to develop standards for transporting musical instruments.

The minister has been clear that he intends that the regulations include provisions ensuring that no Canadian is involuntarily removed from an aircraft due to overbooking after having boarded. The minister has issued a challenge to Canada's air carriers on this matter, on seating arrangements for minors, and on moving to strengthen air practices even before new passenger rights are finalized.

The bill also proposes that data could be required from all parties in the air sector to monitor the air traveller experience, including compliance with the proposed passenger rights approach. This data would also inform any future policy or regulatory actions taken by the Minister of Transport to ensure that the air traveller experience to, within, and out of Canada was efficient and effective.

To finish, I will underscore that the experience of Canadian air travellers is a priority for the Government of Canada. We know that it is also a priority for Canadians. This is why we have proposed to increase international ownership restrictions for Canadian carriers. It is why we are proposing new rules on joint ventures that would help create greater efficiencies and more choices for Canadian travellers. It is why we are proposing some modest changes to the provisions of CATSA screening services that should help air passengers transit through airports more quickly. Finally, it is why we are creating a legislative framework so that Canadians can finally benefit from an air travellers' bill of rights.

Once these new measures were in place, they could help lower prices, support increased competition among air carriers, provide more choice to Canadians when it comes to purchasing tickets, and improve service and connectivity for all Canadians and Canadian travellers.

Transportation Modernization ActGovernment Orders

12:25 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Mr. Speaker, coastal communities rely on jobs in the transportation industry, especially in shipping. During the last election campaign, the Liberal Party promised not to change the Coasting Trade Act, yet the bill before us 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, to carrying goods by container, and to repositioning of empty containers. In addition, the government did not consult the stakeholders affected by this measure.

Why is the government going back on its word and now opening the door to unfair competition by foreign registered vessels?

Transportation Modernization ActGovernment Orders

12:30 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, I can assure my hon. colleague that anything this government does takes into account Canadians. We surely do not intend that any change affects Canadians in a detrimental way. At the same time, we have to recognize that we operate in a global economy and a global marketplace, which is why we should not be very protectionist. We should actually work with foreign investors to increase our economy and benefit all Canadians.

Transportation Modernization ActGovernment Orders

12:30 p.m.

Conservative

Tony Clement Conservative Parry Sound—Muskoka, ON

Mr. Speaker, we have had a lot of debate in the House already on the bill, which seems to be, and in fact manifestly is, an omnibus bill. It would amend 13 different pieces of legislation. At the same time, the much-vaunted expression to the Canadian people was that this was going to solve a lot of passenger issues. It was going to be the passenger bill of rights, yet there is very little in the bill that is about passengers.

I wonder whether the hon. member can give his perspective on why he is supporting this piece of legislation when it does not do what the Liberals said it was going to and it would have all this impact on 13 other pieces of legislation.

Transportation Modernization ActGovernment Orders

12:30 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, I find it curious to have that charge, knowing that the previous government was notorious for using omnibus bills.

If members look at what we are putting forward, it all deals with one piece of legislation, or 90% of it deals with one piece of legislation. Having said that, I am quite confident that this bill would help Canadians, especially with the aspect of air passenger rights. We are 15 years behind the United States and 12 years behind Europe, so it is about time we put something forward Canadians can rely on.

Transportation Modernization ActGovernment Orders

12:30 p.m.

Liberal

Dan Vandal Liberal Saint Boniface—Saint Vital, MB

Mr. Speaker, the hon. member has worked very hard on the transportation committee for the last couple of years, and it certainly shows.

Could the hon. member comment on how this legislation would affect the overall strategic plan with respect to the minister's comments on transportation 2030?

Transportation Modernization ActGovernment Orders

12:30 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, the approach is looking forward to 2030, and the approach has been to look at the entire transportation system holistically, as it is vast and quite intricate.

I applaud the minister for the work he has done and for all the consultations he has had with stakeholders and Canadians.

Transportation Modernization ActGovernment Orders

12:30 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, listening to the Conservatives accuse the Liberals of introducing omnibus bills is a little rich. The Harper government introduced omnibus bills to such an extent that Canadians became quite engaged and enraged about it, but that does not excuse the current government for doing the same thing, and it is doing it here. The Liberals stood in the House, along with New Democrats, and criticized the previous government for introducing omnibus bills, and here they have introduced one bill that would amend 13 different acts. It is by every single measure an omnibus bill.

My question is about Canadians, not about what we are doing in the House. I would like the member to explain why his Liberal colleagues voted against an NDP amendment that would have, among other things, required airlines to reimburse passengers for the full price of a ticket when a flight was cancelled. It would seem to me that this would be a very logical and reasonable request of airlines. Why did the Liberals not support that NDP amendment?

Transportation Modernization ActGovernment Orders

12:30 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, I apologize. I was not here in the House when the previous government was here.

Speaking to the first part of my colleague's question, we cannot compartmentalize such a vast transportation system. When 90% of Bill C-49 deals with one act, I do not see that it is an omnibus bill.

To the second part of the member's question, we worked quite collaboratively in committee. If specific amendments were rejected, it could have been due to duplication or a number of other reasons. There was no malice there. We worked really well together.

Transportation Modernization ActGovernment Orders

12:35 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Mr. Speaker, when David Emerson did a review of the act many years ago and put forward his report, he had a vision for transportation in the country. Obviously, this legislation falls well short of his vision.

With respect to the passenger bill of rights, the government has left it to regulations. Virtually everything is being left to regulations instead of being put in the bill, into law, so members of Parliament know what they are voting on. Why did the government fail to put these penalties, which would provide support to passengers, in the bill and instead are leaving it to the department to do through regulations?

Transportation Modernization ActGovernment Orders

12:35 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, this, quite frankly, leaves a lot of flexibility. Going forward, everything will be stipulated in the legislation. The important thing is to get the ball rolling now. As I said, we are playing catch-up with our counterparts in Europe and the United States. Once we get this in place, everything else will be stipulated in the legislation.

Transportation Modernization ActGovernment Orders

12:35 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Mr. Speaker, as stated earlier, the Liberal government ran on a platform that it would not ram omnibus bills through the House. The government has put 13 acts together in this one bill. It says that 90% of it is covered in one act. Why did the government not separate the one act and put that piece of legislation forward separately?

This legislation talks about joint ventures between airlines, a passenger bill of rights, and protecting the marine industry through transportation, which the government has not done. This legislation is jam-packed with many different issues that need to be debated separately.

The member pointed out that the Conservative government rammed through omnibus bills. The Liberals opposed them during the campaign, yet they are doing it themselves. I would like the member to explain why the government is ramming through omnibus bills. What is the threshold? Is it 15 acts, 20 acts, 25 acts? What is the threshold for the Liberal government in ramming through omnibus bills?

Transportation Modernization ActGovernment Orders

12:35 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, I completely disagree. We are not ramming through anything. With such a vast, intricate system, we cannot compartmentalize it. We need to look at it holistically, otherwise we would be duplicating the work we are doing here, which would not make sense. As I said, we are playing catch-up, especially when it comes to the air passenger bill of rights. We are over a decade behind, which speaks for itself.

Transportation Modernization ActGovernment Orders

12:35 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, the hon. member is trying to justify an omnibus bill. This bill deals with grain transportation, video and voice recorders in trains, a coastal trade act, port infrastructure, joint ventures between airlines, and a passenger bill of rights. Other than the common thread of transportation, these are all entirely separate and discrete areas that all warrant specific debate on separate legislation in the House. I really do not accept the member's justification of this omnibus bill.

However, my question is about coastal trade. We know that the previous government pursued negotiations with the European Union in CETA, and one of the concessions we gave European shippers was to allow European-flagged vessels to ply internal Canadian waterways between Halifax and Montreal and to move empty containers and take loaded containers back and forth, and to dredge. Canada got no reciprocal right to do so in internal European waterways. Can my hon. friend justify that?

Transportation Modernization ActGovernment Orders

12:35 p.m.

Liberal

Gagan Sikand Liberal Mississauga—Streetsville, ON

Mr. Speaker, I do not think this is a matter of justification. There are nuances when we are dealing in a global market space, and this government will act and has acted in the best interests of Canadians.

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12:35 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, first I would like to say that I will be sharing my time with the member for Beauport—Limoilou, and I look forward to hearing his thoughts on this issue.

I also want to thank our transport critic, the member for Carlton Trail—Eagle Creek, for the excellent work she has done on Bill C-49. I had the pleasure of working with her on this file for a while. I know that she worked very hard on this and that she shares many of the opinions that I am going to express here today. I also want to thank Patrick, my intern from the parliamentary internship program, for his assistance in writing the speech I will be giving today. He witnessed the magnitude of this omnibus bill first-hand.

The scope of this bill is huge; it makes significant changes to 13 different acts. It will substantially affect air, rail, and sea transport. This bill will affect most of the trains, planes, and ships that travel around and across our immense country. It is what is known as an omnibus bill.

I would remind members that, in 2015, the Liberal government promised to change the rules of this place to prohibit omnibus bills. The Liberals made that promise to Canadians over and over again. In its election platform, the Liberal Party said that it would no longer resort to legislative tricks to avoid scrutiny. It added that it would bring an end to this undemocratic practice by changing the Standing Orders of the House of Commons.

It was a very convenient promise to make during an election campaign. Now it is more convenient to ignore it. What is even more interesting is that the minister who sponsored the omnibus bill we are talking about today has repeatedly criticized the use of these political games in Parliament. In a motion the transport minister moved in the House in 2012 when he was the Liberal House leader, he suggested that the intentions of omnibus bills were so varied that a single vote on so many matters would put members in conflict with their own principles.

The sponsor of the omnibus bill we are talking about today said those things in 2012. That is a totally different perspective than the one the minister and his government are taking on Bill C-49.

Why did the Liberals change their minds? Where are their principles now that they are in power? Let us not forget that this is not the only political stunt the Liberal government has pulled in order to circumvent the democratic process here in the House. Omnibus bills are not the only trick up the Liberal government's sleeve. To top it off, yesterday it decided to use time allocation to limit the debate on all these proposals. As a result, even though the government's list of proposed changes remains quite long, the time we will have to debate those changes has been shortened considerably. This is the same government that likes to talk about being open and transparent. It claims to be a government that listens, but after having worked with this government it is clear that it really does not.

By all accounts, a bill that changes our transportation system, that weakens the legislative protections for shippers and farmers, and creates a passengers' bill of rights that does not even have the support of passengers' rights advocates, deserves a more thorough and engaged debate. However, yesterday's decision to use a time allocation motion does not really surprise me or any of the other opposition MPs. It certainly did not surprise Canadians who have been watching for weeks as the Liberal government tries to defend their tax reform and the Minister of Finance's decisions in question period.

What is becoming very clear is that Canadians are losing faith that this government has a moral compass. That is another unintended consequence for the Liberals. What is not clear is the bill we are currently debating. After months in committee, and debates and studies on this bill, there are still very few details and explanations.

Let us talk about Bill C-49. The Liberal government says that the measures it is proposing will establish a new air passenger rights regime; loosen international ownership restrictions for Canadian air carriers; enable Transport Canada to examine and approve joint ventures by two or more airlines; update the Canadian freight system; require railway companies to install voice and video recorders in locomotive cabs; expand the authority of the Governor in Council to require major railway companies to provide information regarding rates; and amend the Canada Marine Act to permit port authorities to access the Canada Infrastructure Bank.

All of that is in the same bill. Whether one is for or against certain of those measures, voting is impossible. One may like some of them, but if one dislikes others, there is no way one can logically vote for this bill.

There is a fundamental lack of respect and clarity in all these measures, including the passengers' bill of rights that the government promised. The Liberals say the measure is a document that will protect travellers, but upon closer examination, one can see that is not necessarily the case. Precious little is known about this bill of rights. Nobody knows what it will look like or what penalties will be imposed on airlines if they break the rules.

Instead of putting forward something very clear, the government decided to let the Canadian Transportation Agency made the decisions. The agency will decide what is in the document and will flesh out the details, details that will affect every air traveller and every airline in Canada.

How can we have an intelligent discussion about a passengers' bill of rights without all the necessary information? How can we avoid other unexpected consequences of the sort that seem to be this government's trademark and that arise, when we are not given details about what it is proposing?

We must not forget the unintended consequences of tax reform on farmers and on small and medium-sized business owners. We must also not forget how this government attacked our most vulnerable citizens by clawing back the disability tax credit. As members of the opposition, what can we do to seek solutions to a bill under the current circumstances? For that matter, we are not the only ones sounding the alarm. We cannot support measures that are unclear. The government is asking us to trust it blindly, but it would be irresponsible of us to do so.

Let us move on to the other proposals in the government's bill. Bill C-49 would permit port authorities and their wholly-owned subsidiaries to receive loans and loan guarantees from the Canada infrastructure bank . However, this is somewhat paradoxical because, as members may recall, the infrastructure bank does not exist yet. This measure therefore makes no sense.

This bill would allow port authorities to receive loans from a soon-to-be-created infrastructure bank. In other words, they are getting immediate permission to do business with an entity that does not yet exist. What a great opportunity for the Liberal government to create even more unintended consequences with a new bank that has yet to be approved by Parliament and that will cost taxpayers billions of dollars.

As we continue to consider the impact of this bill on other industries, we find more examples of its lack of clarity. For shippers who use the railways, this bill proposes new 30-km interswitching rates that, according to the government, would be set every year and take into account railway infrastructure needs for the entire system. However, the lack of information about how the bill will implement these rates is leading shipper organizations and producer groups to be cautious regarding their position on long-distance interswitching. Like us, they are not really sure how this is going to affect them.

Shippers like Greg Cherewyk, Pulse Canada's COO, reminds us that the devil is always in the details. In May, he told the Manitoba Co-operator, and I quote, that “every word does matter, and the order of the words matters”. He pointed out that he was not sure about the exact impacts of the government's new proposals.

Today, we are going to vote on this matter because we have to vote on the omnibus bill as a whole. We cannot study this component more thoroughly because the government decided to make it part of one huge bill. We tried to make this part of the bill less vague, but the Liberals voted against those changes, even the administrative ones. It is clear that they do not understand the consequences of these measures, and that will create even more unintended consequences.

The two major railway companies in Canada have also expressed their concern regarding the impact of the new regulations, especially with respect to investments in the Canadian railway system. The president of CN thinks this is an odd decision, especially since NAFTA is still being negotiated and we do not know what impact the negotiations will have on trade. Why then give American companies even greater access to Canada? These are the questions we are asking.

In conclusion, everyone in Canada knows how important transportation issues are. Bill C-49 is an omnibus bill that is forcing us to take a position on measures that might have seemed acceptable but that we cannot support, because there are other, totally unacceptable measures in the bill.

For these reasons, I cannot support Bill C-49. There are too many unintended consequences that we can already foresee.

Once again, I would like to thank my intern Patrick for his assistance writing this speech, and I am ready to answer my colleagues’ questions.

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12:45 p.m.

Liberal

Filomena Tassi Liberal Hamilton West—Ancaster—Dundas, ON

Mr. Speaker, my colleague mentioned “unintended consequences” a number of times. He has probably heard that from our side. The Minister of Finance has used the these words repeatedly in the last couple of months. This is why we engaged in that level of consultation. This is why the Liberals think it is so important to engage in wholesome consultation to ensure we do not have unintended consequences.

Therefore, just as we engaged in consultation with respect to Bill C-49, we did the same in finance with the proposed tax changes. As a result of that consultation, we made substantial changes, and I am proud of that. We listened to do exactly what the member addressed, which was to avoid unintended consequences.

The member said that he liked certain parts of the bill, and I appreciate that honesty. It is fantastic when members in the House can talk about the positive things on which we all agree. Could the member at least mention one or two things he likes in the bill?

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12:50 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, one of the unintended consequences of an omnibus bill like the one before us today is that I cannot answer my colleague’s question, because she is asking me to vote on a series of measures. Some of these measures may be positive, but others are undoubtedly negative.

Unfortunately, because the government cannot plan properly, because it improvises and wants to ram this down our throats, a major unintended consequence is the tax reform, an unprecedented attack on all small businesses and farmers across Canada. That is what happens when you take power before you are ready to govern. They try to consult without really consulting. They try to ram decisions down Canadians’ throats. We therefore have to deal with unintended consequences that prevent us from making the best possible decisions in the House, since the government is not allowing us to do so.