Madam Speaker, I will be sharing my time with the member for Saanich--Gulf Islands.
This debate is an extremely important one. Perhaps it is no more important to anybody else in this whole House than it is to the members who represent the province of Newfoundland and Labrador. Should members from any other province decide they want to walk or drive home, they can do it. We cannot. We have to fly, swim or take the ferry. We are more dependent on the airlines, especially our business people, our everyday travellers, people going on vacations, many students who are at universities on the mainland, and I could go on. Practically every family is affected by the service to our province by the airline. Basically, we are talking about Air Canada.
Fortunately, over the last while we have seen Canada 3000 coming in to the province and providing a bit of competition and some extra service. This certainly is looked upon by many as being one of the factors that kept the rates down somewhat. However, to a large degree Air Canada still has a monopoly. That is one of the concerns we have when we talk about this bill.
As we look at protecting and preserving our national airline, which we favour tremendously, we also have to make sure that the service that is eventually settled upon is provided at a reasonable price. Regardless of whether it is completely operated by the private sector, whether there is government involvement, or whether involvement by foreign companies is much greater than at present, whatever the case may be, that service must be provided to Canadians from British Columbia to Newfoundland at a reasonable price.
We are getting more letters than ever before from people who have no choice but to use the airline but cannot afford to do so. The prices to fly out of many of our smaller areas are extremely high. Consequently this has a very negative effect on many ordinary people throughout the country.
It is great if someone is travelling for a wealthy company that is paying the bill or travelling on behalf of the government, realizing of course that if the government is paying the bill, it is coming out of the taxpayers' pockets anyway. However, for the average family on medium or low income who have to travel because of sickness, educational needs or work, whatever the case may be, it is extremely difficult for them to get on and off the island of Newfoundland at the present rates that are being charged by the airline. We must keep that in mind. It is not just in Newfoundland; the service provided has to be reasonable enough to be used by all the people of the country.
The private sector, God love it, keeps the economy going. However, the bottom line for everybody involved in business is to make money. In order to make money they provide a service. In providing that service, any company worth its salt will try to make as much money as it can. When we are talking about providing an essential service to the people of this country, then companies have to be regulated to some extent so that they cannot charge people whatever they wish, or just pick lucrative routes into the larger areas.
Everybody wants to fly out of Toronto. Everybody wants to fly out of Vancouver. Everybody wants to fly out of Montreal. However, not everybody wants to fly out of Stephenville, Deer Lake, Goose Bay or even St. John's and many other small towns and cities throughout this great country.
People in the lucrative areas usually earn much higher incomes than those in the rural areas. If they can fly for fairly reasonable rates, why should people who are in areas where the going is tough economically have to pay two to six times more per mile than the people in the larger centres? It is entirely unfair. The government has to do something about it.
The problems first started a couple of years ago with the closure of Canadian Airlines. That was when the government should have stepped in and made the right decision. It certainly did not. The private sector had the opportunity to move in and solve the problems that we face today and by refusing to do what the government is now asking with the share restriction, we could have solved that problem two years ago.
Instead, the government basically forced the then lucrative Air Canada to take on the complete debt of Canadian Airlines. Canadian Airlines, with all kinds of employees, was going down the tubes. The government said to Air Canada, a company that was doing very well, that it could merge with Canadian Airlines and take it over but it would have to take all the debt and carry all the baggage, pardon the pun, with it.
It just cannot work that way. Rearranging the company so it would be a viable option was not allowed. Instead Air Canada was saddled by government regulations with a company that has now put it under.
Now that we are revisiting this whole situation, hopefully common sense will prevail. Whatever the resolution is, by the time we pass the present legislation and deal with the Air Canada situation in total, hopefully we will have a decision that will enable Air Canada, whoever the owners may be, to operate viably and to provide a reasonably priced service to everyone in the country.
Air Canada was viable before government asserted its authority and tried to tell it how to run the company. When we look at the experiences of this government in particular, when it asserts itself to try to do anything, we know the result is not successful. The records are there to prove it.
In all of this process the group of people we all must be concerned with is the employees of Air Canada itself. From coast to coast we have a tremendous number of hardworking dedicated Air Canada employees, some of whom have been with Air Canada for quite some time. Some of their jobs were jeopardized when Canadian Airlines was taken over by Air Canada. The type of deal the government set up was entirely unfair to the employees who had been with that company for quite some time.
Regardless of that, an employee is an employee. We certainly do not want to make choices as to who should be laid off and who should not. Hopefully a properly structured regulated airline can be busy enough and the profits lucrative enough for it to ensure that all the employees, regardless of whether they were with Air Canada for 30 years or whether they came with the Canadian Airlines merger, can find good, solid jobs within the airline.
In view of September 11, we must instill some confidence in people to get back in the airplanes and fly. As many of us know, in many cases it is much safer to fly than it is to drive or walk. Hopefully, we can get back to creating a good economy around our airlines.
However, profits are made around numbers. I mentioned this before. I know I am repeating myself to some degree, but I cannot overemphasize the fact that we are pricing ourselves out of business. It is great to say that we made a profit because we can charge $2,000 for a trip from point A to point B. If we charge $1,000, three times as many people may take the trip and then the profits would be even greater.
We have to make sure that an airline, especially where it is serving areas of the country which depend entirely upon that mode of travel, charges prices that are within reason. We are getting away from that. From Newfoundland to Ottawa the round trip costs anywhere from $1,800 to $2,000. Not many people can afford that. To fly from Newfoundland to Halifax quite often costs in the range of $700 to $800 and sometimes even more. Just a few years ago it cost in the range of $200 to $300. How many average people can afford to fly when they are paying three times more than they paid just a few years ago? Why should they have to pay that?
It is interesting to compare fares, as I mentioned earlier, in areas of British Columbia. I should not say British Columbia because it has the same problem in certain parts of the province that we have. However, quite often the fares from Vancouver, Toronto and Montreal are quite reasonable.
The member for Saint John who has been flying for some time will tell us that the prices paid to get from New Brunswick to here are much greater today than they were even two or three years ago. It does not make a difference for us; I have to come to work and the government pays my way. However, the taxpayers are paying for it. It is affecting our bottom line. If the person next door to me has a job in Ottawa and wants to go home, or his family wants to come to visit, they usually cannot afford to do so because the costs are so exorbitant.
There are a few things we have to keep in mind. If government is asserting itself by bringing forward and approving legislation, let us make sure it is good legislation. If we are to interfere with the operation of a company, let us make sure that we have some say. If government money is going into a company, the government has to have some say in its operation, not telling it how to run the company, let us stay out of that, but making sure that the consumer is protected.
We have to make sure that a private company can operate viably. Quite often the best way to do that is to get out of its way, cut the red tape and bureaucracy and let it do the job.
If we had let Air Canada do that two years ago or the private sector we would not be here today worrying about how to straighten out our national airline. If we had not stuck our nose in and interfered with Air Canada as it took over Canadian Airlines we would not be here today. It would undoubtedly still be a profitable operation.
We all know that Air Canada, Canada 3000, West Jet and all the other airlines were affected by the events of September 11. It is right and proper, because of actions taken by governments around the world, that the government compensate them for the direct losses they incurred during that process. We have no problem with that. However we cannot let inefficient companies or companies that are operating under such government restraints that they become inefficient piggyback on September 11. However, if it is the government's fault, as I would suggest it is with the present situation as it relates to Air Canada, then the onus is on the government to correct the mistakes of the past.
We should have learned from what happened a couple of years ago. Let us not make the same mistake again. Let us not make our cuts and changes on the backs of employees of the company. Nor should we make our decisions and cuts on the backs of people who live in certain areas. We should not sock it to them, as the saying goes, and say that if they want to travel they must pay the price.
Confederation is about looking after all the people and provinces that fall within this great dominion. We are supposed to be brothers and sisters who share and share alike. Some of us have advantages because we live in larger regions. Many have advantages because we live in small ones, whether it be greater resources, the types of freedoms we have or whatever.
When it comes to movement throughout this country, we should not be penalized because we live in remote areas. We should not be disadvantaged when it comes to educational or employment opportunities because we live in small communities or because our accent or skin colour is different. That is not what Confederation is about. That is not what Canada is about.
We have a chance here to do something right. Let us use a bit of common sense, as I said before, and make sure we do it right this time.