Madam Speaker, I will be splitting my time this morning with the member for Courtenay Alberni.
I am pleased to speak today to this opposition motion which calls, in part, on the government to provide assistance for the hard-hit airline sector in our country.
This is a timely topic. If media reports are to be believed, we could hear any day now about the outcome of negotiations that have been going on for months between the government and the airlines. We have seen those negotiations stall in past months and we may again, so who knows how long it will take to hear about support for this hard-hit sector.
I would like to begin by acknowledging the tens of thousands of men and women who work in Canada's air sector and who have lost their jobs over the past year due to the pandemic's disproportionate impact on the air-travel sector: pilots and flight attendants, mechanics, ground crews, baggage handlers, air traffic controllers and all of those working in the many diverse aspects of air travel. I hope that if any of these folks are watching and listening to the debate today, they take heart in the fact that there seems to be broad agreement in this place that government help is needed.
The motion before us is from the Conservatives. While I agree with its substance, I find it interesting that on one hand, the Conservatives are hand-wringing over the magnitude of pandemic relief that this country has put forward, while on the other they are calling for billions of dollars in government help for the air sector. I will leave the Conservatives to sort that out among themselves.
The fact is that the air sector does need help. Prior to the pandemic, the aviation sector directly employed 241,000 people in Canada and supported close to another 150,000 indirect jobs in the supply chain. Very few of those jobs still remain. Month after month, we have seen new rounds of layoffs at the big airlines and, sadly, no action from the government.
It is good to see the Conservatives echoing very closely the points we in the NDP have been putting forward since the beginning of the pandemic. First, any assistance to the air sector must focus on maintaining employment, not on executive bonuses or dividends for shareholders. Second, assistance must come with a commitment to restore and maintain Canada's very important regional routes. Third, airlines must refund passengers the money they are owed for cancelled flights.
Many Canadians are rightly skeptical about government bailouts, which is why it is so important that strong conditions are put in place to ensure that public funds are spent in the public interest. Unfortunately, in the case of the wage subsidy, we saw a program that was not structured strongly enough to prevent layoffs. Air Canada, for example, received over $500 million in the wage subsidy, making it one of the biggest beneficiaries of the program in our country, but it laid off over 20,000 workers with no financial assistance whatsoever. The company could have chosen to furlough those workers, utilizing the wage subsidy and allowing them to retain their benefits, their seniority and their pensions as many other companies did. Unfortunately, Air Canada chose otherwise.
Nor was the wage subsidy structured strongly enough to ensure it went only to those corporations that truly needed it. An analysis by the Financial Post, which I know my colleagues will be familiar with, showed that at least 68 publicly traded Canadian companies continued to pay out billions of dollars in dividends to their shareholders while receiving the wage subsidy. To ordinary Canadians, those facts just do not seem right. Thus, in the case of the deal being negotiated between the government and the airlines as we speak, it is essential that strong conditions are agreed upon that put employees first and prevent corporations from using public dollars to fund executive bonuses or dividends for shareholders.
The second set of conditions relates to regional routes. As the pandemic took its financial toll on airlines, smaller regional routes were the first to fall. Though often less profitable, these routes are nonetheless vital lifelines for communities, especially smaller communities. Even during the pandemic, people still need to travel, whether for work as essential workers or for medical appointments. We also know that these regional routes often support mail services and carry freight.
With Canada’s regional bus service much diminished in recent decades, cuts to regional air routes leave people with few options.
In Atlantic Canada, routes have been cut from 140 to just 29, with only nine of those connecting the region to the rest of Canada. The riding I represent in northwest B.C. experienced first-hand how the commercial decisions of the big airlines could leave communities high and dry. For months, my home community of Smithers was without scheduled air passenger service. It has since been restored, but scheduled flights remain suspended in Prince Rupert and Sandspit, as well as in other communities across the country.
Given the severe impact of the pandemic on passenger numbers, it was not surprising that these regional routes were suspended and reduced. However, airlines provide an essential service for small communities, and if the government is going to provide financial support to the sector, restoring these essential transportation links should be an integral part of the arrangement.
Supporting regional routes will not only mean people can get to their medical appointments in the city or commute as essential workers. It will also give tourism operators some certainty that their clientele will be able to return once it is safe to do so. It will give small municipally owned airports, which rely on the revenue from scheduled flights to maintain their infrastructure, some financial certainty. It will give rural regions some comfort in knowing the pandemic will not be allowed to further deepen existing geographic inequities and that, as the recovery takes hold, every part of the country will have a fighting chance.
In a country the size of Canada, maintaining a basic level of service to all corners of the country is not a luxury. It is a basic need. The restoration of regional routes must be a central component of any sectoral relief for the airlines.
Last, on passenger refunds, since the beginning of the pandemic New Democrats have been calling on the government to act and make passengers whole again when it comes to the money owed to them by the airlines. My colleague, the member for Churchill—Keewatinook Aski first called for this in a letter to the minister on April 13, yet while we in the NDP spent months going to bat for passengers, the Conservatives were nowhere to be found until months later.
This motion today shows us that the Conservatives have finally located their boarding pass and made it to the gate in one piece on this issue, which is good news because the more voices in this place calling for refunds, the better.
It is frankly unacceptable that the government has left Canadian passengers waiting for over a year to receive money that is rightly theirs. From the standpoint of basic consumer rights, this simply should never have happened. If people pay for a service and then do not receive the service purchased, they expect a refund. This applies to things we buy online as much as it should apply to a $1,000 airline ticket.
The people affected are Canadian families, and I have heard from lots of these folks. In the midst of a global health emergency and the worst economic recession in Canadian history, these ordinary people have been saddled with unnecessary financial anxiety.
When he was pressed on this issue, the minister’s response was totally unsatisfactory. On June 16, he said:
In the best of all worlds, we would like to make sure that all passengers are happy, but as you know, the airlines have been hammered by this pandemic.
In other words, corporations come first and the government will get to the people when it can. It does not have to be this way.
Other countries took very different approaches. In the U.S., the EU and the U.K., governments mandated refunds from the airlines. As a result, American passengers had the ability to claim refunds from Canadian airlines while Canada’s own citizens were denied that right.
The hard-earned money of Canadian passengers has now become a bargaining chip in a high-stakes negotiation between the government and the airlines. With the issue of refunds so closely tied to the negotiations around financial relief, Canadians are going to rightly wonder whether it is the airlines or the government that is refunding passengers.
To conclude, when the public health directive is to stay home, the hardest hit sectors are the ones that move people around. In the air sector, the pandemic has cost tens of thousands of jobs and threatened services that are central to the functioning of our country.
Few question that the government has a role to play, but based on the history of bailouts, many are skeptical of the government’s ability to structure support in a way that truly protects the public interest.
The motion we are debating today speaks to some of the conditions that could ensure public dollars are invested in the public good and not simply converted to private profits.