Douglas Young

[Canadian Pacific, December 1st, 1994]

Mr. Speaker, the question of the unsolicited bid by CP for CN assets east of Winnipeg is under active consideration by both the management of CN and the Government of Canada.

It is a very serious question. In addition to the matters raised by my hon. colleague, there is the question that it would have the result of reducing competition and really changing the way rail operates east of Winnipeg.

It is a very serious not only business question, as the hon. member has raised, but policy question. For that reason we are going to weigh the pros and cons very carefully and the government will announce its decision in due course.

[Government Expenditures, November 30th, 1994]

Mr. Speaker, the hon. member knows the government has already undertaken a review of all agencies and boards, and we are doing it very quickly.

I look forward to the assistance of members of the third party and other members of the House as we review in depth the operations on the maritime side of my responsibilities at Transport Canada. We have already announced that we are going to be looking at the structure of Ports Canada and how these arrangements are arrived at.

The case that the hon. member raises today is a result of an order in council appointment that I understand was made in 1987. It exemplifies the need to review all of these matters in depth, whether they have to do with the per diems of the chairman of Canada Ports Corporation or orders in council.

I can assure the hon. member that we are going to be doing it as quickly as we can. I look forward to their co-operation on this matter, unlike some of the things we have tried to correct where they have gotten into bed with whoever is convenient.

[Ferries, November 30th, 1994]

Mr. Speaker, we have made some progress in trying to determine exactly what is required to provide the service between Iles de la Madeleine and Prince Edward Island.

I want to say to my hon. colleague that we have made significant progress in this place since yesterday. One of the things that has been cleared up, I hope to the satisfaction of every one, particularly my friends who are concerned about the future of MIL Davie, is that in the future whenever the Government of Canada is concerned there will be no question of sole sourcing ships. Any process for acquisition will be through a clear, transparent and competitive bidding process.

[Ferries, November 30th, 1994]

Mr. Speaker, Transport Canada is responsible for providing a safe and efficient service between the Magdalen Islands and Prince Edward Island, and we will do everything we can to ensure that the people of the Magdalen Islands have this service.

However, I want to point out to the hon. member that we have asked the operator who is now responsible for providing the service with the Lucy Maud Montgomery to advise us of his requirements, and then Transport Canada will award him a subsidy.

Acquiring, leasing or building a ship is the sole responsibility of the service operator, not of the Government of Canada.

[Transportation, November 28th, 1994]

Mr. Speaker, with respect to the comprehensive review obviously that is under way. I think we have made significant progress on airports. We hope to be able to deal with the ports. Rail is something a bit different.

What has happened to railroading in the country over the last 20 years has literally been done on an ad hoc basis. That is why we are in the trouble we are with abandonment and decisions being made on a day to day basis without any real policy.

We have the Bob Nault task force out there now looking at what we can do with the commercialization of CN. We also have to deal very soon with the unsolicited bid from CP for the purchase of CN assets east of Winnipeg. In that context, with the ongoing consultations we have been conducting with shippers and interested parties we are committed to making clear a very comprehensive rail policy in 1995.

We have not been stopped. We will deal with the CP offer. We will deal with commercialization. We will bring an end to the ad hoc decision making that has been plaguing railroads in the country for the last 20 years.

[Canadian National, November 24th, 1994]

Mr. Speaker, there is no doubt that there are rules to be followed in this type of transaction. As I have indicated on a number of occasions, the arrangements between the president of CN and the board is one that is subject to the controls that are internal to a crown corporation.

The rules as I understand them are that if any loans are made in excess of salary they have to be declared. That was the basis of the legal advice the president referred to yesterday. I have indicated in this House before that it is very, very complicated when you get into loans and acquiring homes in defining what the rules are, as the leader of the government in Quebec well knows.

[Canadian National, November 24th, 1994]

Mr. Speaker, the hon. member is fully aware that yesterday we explained that the benefits granted to the CEO of CN and to its board of directors are an internal decision of the corporation. The salary is set by order in council.

As I suggested yesterday, the CEO of CN held a press conference and answered questions from the media, as I knew he would. If the hon. member has other questions, he should address them to the appropriate body, namely CN's board of directors.

[Canadian National, November 23rd, 1994]

Mr. Speaker, this is undoubtedly a very serious matter.

As I indicated, the salary paid to the president of CN is set by order in council. The question of other benefits is an arrangement between the president and the board of directors of CN. I believe, as is the case of every member of the House and any person who is working in the public sector, they have an absolute obligation to explain exactly what the arrangements are.

I fully expect the president of CN will avail himself of the opportunity to come before the press to explain to the hon. member who has raised the question or to anyone else exactly what arrangements he has concluded with his board of directors in a crown corporation that operates at arm's length from the government.

[Canadian National, November 23rd, 1994]

Mr. Speaker, yesterday, I indicated in my answer that the practice with regard to the president of CN was one for which there were precedents at CN with previous presidents. I also explained that this was a situation that was commonplace in the private sector, given that CN is a Crown corporation.

Certainly, we are all aware of the upcoming changes at CN and elsewhere in the Canadian railway system. The salary of the president of CN was set by order in council before this government came to power. There is no doubt that the situation identified by the hon. member is of great concern to us. I can assure this House that, if it were up to us to decide, no such things would ever happen again in the future.

[Railway Transportation, November 22nd, 1994]

Mr. Speaker, on an interim basis obviously we are going to review internally at VIA what has to be done, what should be done and what can be done.

I want to explain to my hon. colleague this was an unprecedented situation, something that no one could have foreseen. It is a tragic incident particularly the incident between Toronto and Montreal.

The safety transportation board is reviewing all of it and will report. We are going to do everything we can at VIA, at Transport Canada, at the police forces. Every possible avenue will be explored to make sure that people who travel in Canada on VIA trains can do so in safety and security.