Mr. Speaker, I consider it a privilege to rise today to speak at third reading of Bill C-20, the act which will provide the legal means to transfer the air navigation system currently operated by Transport Canada to a private not for profit corporation, Nav Canada.
As members know, the bill carries out the decision which was taken by this government to commercialize the air navigation system announced back in February 1995 in the federal budget. In December 1995 an agreement in principle was reached for the sale of ANS to Nav Canada for the purchase price of $1.5 billion. Now that is a very significant contribution to the government's deficit reduction efforts.
I am pleased to highlight that on April 1, 1996 the Minister of Transport along with Nav Canada representatives signed the agreement to transfer which will allow this transaction to proceed to closing, subject to a number of conditions of course. Key among them are the approval of this legislation by Parliament and Nav Canada's ability to raise the required $1.5 billion purchase price for this not for profit entity.
Bill C-20 has received the benefit of thoughtful consideration by the members of the Standing Committee on Transport who, in addition to carrying out their own review and analysis of the legislation, also heard from a number of important national and regional witnesses representing, among others, industry, labour, government and community groups. A number of written briefs were also submitted. For all of these efforts we want to extend our appreciation.
A number of the witnesses demonstrated strong, unconditional support of the bill, recognizing the desirability and necessity of commercialization. Some of these were the Air Transport Association of Canada, the Aerospace Industries Association and Air Canada, the Nav Canada Bargaining Agents Association, including the Canadian Air Traffic Control Association and the Canadian Airline Pilots Association.
Other witnesses expressed a range of concerns, some of which were outside the scope of the legislation. However, I believe the government was well able to address many of these concerns.
There was a concern that Nav Canada might not continue to operate the ANS in a bilingual environment. In fact, the bill is very clear that the Official Languages Act will apply to Nav Canada as if it were a federal institution. It ensures the use of both official languages in communications with the public and the language of work. This is entirely consistent with established practice and is reflective of the national nature of Nav Canada activities. In the same context, Nav Canada has already enacted bilingual bylaws.
Another concern involved what some believed was an absence of regional representation. I want to reassure the House that this is simply an unfounded concern. In fact, the make-up of Nav Canada's board of directors and its newly appointed advisory committee, about which I will speak in a minute, have been
designed to bring a wide range of regional and other perspectives to the Nav Canada decision making process.
What is more, the two national trade associations, the Air Transport Association of Canada and the Canadian Business Aviation Association, have member groups of all sizes appointing directors to the Nav Canada board. They are drawn from all provinces and territories. These members are likely to account for more than 90 per cent of the current ANS revenues to be generated by Canadian operators.
The testimony of all the witnesses who appeared before the Standing Committee on Transport provided a very useful and timely perspective on their diverse interests. This has been helpful in setting the broadest possible context, moving the legislation forward in support of the further streamlining and modernizing of Canada's transportation industry.
Before going further, I would like to take the opportunity to commend the members of the Standing Committee on Transport, of which I am also a member, for their judicious handling of the legislation and the whole legislative review process to date, and for enabling this precedent setting bill to progress to this stage in the parliamentary process.
Let us look at the legislation for what it is. The bill represents a careful balancing of the commercial interests of the new ANS entity and the interests of the Canadian public. The bill will give Nav Canada the commercial freedoms it needs to develop and maintain a safe, efficient, cost effective and technologically advanced air navigation system while at the same time looking after the public interest by imposing certain operating conditions on Nav Canada and establishing a regulatory framework. For example, the bill ensures a continued high level of system safety by clearly establishing the supremacy of the Aeronautics Act and regulations made pursuant to the act.
Canada, perhaps more than any other country in the world, with its geographical uniqueness is dependent on air transportation that must be reliable, safe and competitive. The network of air traffic control services, flight information services, aviation weather services and navigational aids which comprise the ANS provide for this necessary safe and expeditious movement of aircraft in Canada.
For over 50 years Transport Canada has managed the safe provision of these air navigation services to the industry and to meet the needs of the travelling public. However, government realized that it does not need to own or operate the air navigation service to ensure that the public interest is met. Legislation, regulation and other means can accomplish this.
ANS commercialization is therefore a very visible demonstration of this commitment. It is yet another example, along with a host of others such as the commercialization of federal airports, ports and harbours and Canadian National, of initiatives that will move Canadian transportation into the 21st century. It will also move Transport Canada away from being the operator of the system toward a more policy and regulatory role, but I stress with a continued priority on safety. This government remains committed to streamlining and moving away from activities that can be operated more efficiently by the private sector unfettered by government processes.
Although internationally, commercialization of aviation facilities and services is progressing steadily, Canada is the first country to establish a commercial air navigation system entity without government ownership. This is an important precedent setting milestone.
A few words about Nav Canada's not for profit organization model are in order at this point to provide another context for understanding the uniqueness of this particular transaction. This model was the choice of an advisory committee of users, unions and other stakeholders who, over the course of several months, studied various commercialization options.
Since the time of its incorporation in May 1995, Nav Canada has carried out the necessary extensive due diligence process associated with purchasing the entity, and which contemplated the overall negotiation process leading to the $1.5 billion agreement in principle with Transport Canada in December 1995, and the signing of the larger agreement to transfer on April 1, 1996.
Nav Canada is also proceeding to establish itself as a responsible corporate citizen such as with the appointment of a board of directors, the naming of a president and chief executive officer and in other tangible ways that will ensure prudent corporate governance, including the articulation of a code of conduct and conflict of interest guidelines. Its unique structure with board members appointed by user associations, unions, government, as well as independents, will ensure that the corporation receives the benefit of a wide range of stakeholder views to guide its operations.
At its first annual meeting held in Ottawa in April 1996, which was open to and very well attended by the public, it announced the appointment of an advisory committee of 15 members from a broad range of groups, including Quebec, B.C. and Saskatchewan regional associations. This, along with the broad representation of the board of directors, should provide a further measure of reassurance regarding the opportunity for the inclusion of Canadians regionally and nationally in Nav Canada decision making.
Nav Canada through its annual report has highlighted four corporate priorities it will pursue as the operator of the ANS: people, safety, technology and service. Of particular importance to the government and public interest of course is Nav Canada's commitment to safety as the core of every operating policy, procedure and activity performed by Nav Canada. Nav Canada also recognizes the role which Transport Canada will continue to play in the establishment and monitoring of safety regulations and standards.
The point here is that Nav Canada is demonstrating that it understands only too well the critical mandate it will have as the operator of the system and the priority it is placing on successfully meeting these challenges.
I will now very briefly reiterate some of the key provisions of Bill C-20 which continue to be the cornerstones of this legislation.
Safety will continue to have the highest priority for Transport Canada. Safety regulations will be in place before ANS is transferred. Transport Canada will monitor and enforce compliance with these regulations as it does now in the case of airlines. The Aeronautics Act which sets out the regulatory framework to maintain the safety and integrity of the aviation industry will prevail. I point out to members of the Bloc that it will prevail over the ANS Act.
The transfer will see approximately 6,400 public servants being offered positions with Nav Canada with equivalent working conditions and benefits. During the transition period until Nav Canada reaches its own agreements with the employees, the current collective agreements will continue to apply and bargaining agents will be granted successor rights. This tripartite employment agreement reached in support of this transfer was a major accomplishment in that Nav Canada, Transport Canada and the bargaining agents worked together very successfully. We are pleased that the bargaining agents and the employees themselves continue to be strong supporters of Bill C-20.
All of the assets used by Transport Canada in the provision of air navigation services will form part of the transfer, including land, equipment and other items required to ensure its continued effective and safe operation.
The act grants certain powers to Nav Canada as well as imposes certain operating obligations on the corporation. For example, it obliges Nav Canada to provide public notice of any contemplated changes in services or facilities that are likely to affect a significant group of users in a material way. In addition, a process has also been established in the legislation to ensure public input to decisions by Nav Canada in respect of the introduction, increase, termination or even reduction of services and of course the closure of facilities.
The government must also monitor the performance of Nav Canada as a monopolist. There are many safeguards against
possible use of arbitrary power. These start with the nature of Nav Canada itself which, as a not for profit entity without share capital, does not have a financial incentive to abuse its monopoly position.
The act establishes an economic regulatory framework in respect of user charges based on requirements for public notice and consultation. A set of charging principles is established in the legislation and there is an opportunity for users to appeal new or revised charges.
The charging principles address issues such as transparency, safety, impact, equity and international obligations. The act also provides an opportunity for users to appeal new or revised charges to the National Transportation Agency. The legislation prohibits Nav Canada from generating revenues reasonably and prudently projected from exceeding Nav Canada's current and future financial requirements for the provision of civil air navigation services.
Through the board of directors and advisory committee, users of the system will now have more opportunity to determine their future in the way the corporation and the system will operate. For example, stakeholders in the industry will have meaningful input into the use of ANS revenues, setting of fees, long term expenditures and service standards.
The government also ensured that the special transportation needs of isolated communities would continue to be recognized in a commercial environment. This act preserves air navigation services to northern and remote communities, including a process which will involve provincial and territorial governments should possible service reductions be proposed by Nav Canada at any time in the future.
In summary, here are the highlights of Bill C-20, which will allow the air navigation systems transaction, one of the largest and most precedent setting commercialization initiatives which the federal government has undertaken to proceed for the benefit of all Canadians.
For taxpayers, it will make a $1.5 billion contribution to reducing the federal deficit.
For the industry, it will maintain safety while increasing the system's ability to respond to changing demands and new technologies.
For the users, it will provide more efficient and cost effective operations.
For the air navigation service employees, it offers the opportunity to continue to contribute in a new and challenging work environment.
For Nav Canada, it sets the stage for it to operate one of the best run and safest air navigation systems in the world.
Bill C-20 is yet another initiative by the government to ensure that the Canadian transportation industry meets the demands of our ever changing economy. This legislation, once passed, will be a milestone not only for Canadians but internationally, and something in which we should all take enormous pride.
