Mr. Speaker, it is my pleasure to rise today to once again speak to the several benefits to shippers this historic piece of legislation would provide. Bill C-49 represents a watershed moment for Canada's freight rail sector. It would put in place the right conditions over the long term for a safe, fair, efficient, and transparent freight rail transportation system, for the benefit of all users.
We understand the concerns of captive rail shippers in the Maritimes, but it is critical that we ensure the continued viability and fluidity of the eastern rail network, including through the Montreal area. The proposed amendments from the other place would apply to a significant portion of the tonnage moving on CN's network in New Brunswick and Nova Scotia. Subjecting this traffic to long-haul interswitching, LHI, could impact the future viability of CN's rail services in eastern Canada, particularly on the northernmost branch line in New Brunswick, where line abandonment has been threatened in the past.
While LHI will not be expanded to allow captive shippers in the Maritimes to access the remedy in Montreal, the bill would make significant improvements to existing remedies that would benefit these same shippers. Shippers in the Maritimes would continue to have access to other shipper remedies contained in the act, many of which would be improved by the bill, including a definition of adequate and suitable rail service; the ability of shippers to seek reciprocal financial penalties in their service agreements; final offer arbitration, FOA; and a new, anonymous dispute resolution service.
Despite the many benefits this bill would provide, some continue to push for further amendments to the final offer arbitration process, a process that is already highly valued by shippers in its current form. However, FOA would already be strengthened under Bill C-49 by allowing shippers to pursue FOA to extend the applicability of an arbitrator's decision from one to two years and by raising the financial threshold for pursuing this streamlined summary FOA process for rate disputes from $750,000 to $2 million, therefore allowing more small and medium-size shippers to use this option.
Bill C-49 would also require railways to provide significant new data and performance metrics, including on rates, things that have never been available before. This would improve transparency, which would help shippers in their negotiations with railways.
Under the existing legislation, an arbitrator is already allowed to request technical assistance, including costing and legal assistance. There is nothing in the act that obligates the arbitrator to seek the consent of railways for such assistance, and the arbitrator can hold any failure to disclose information against a railway when coming to a decision.
Bill C-49 would benefit shippers in a variety of ways. In particular, it would enable shippers to seek reciprocal financial penalties; shorten the process for level of service from 120 to 90 days; allow a shipper to extend FOA decisions from one to two years; change the financial threshold for participating in a streamlined arbitration process; make certain temporary agency authorities permanent; recognize the agency's informal dispute resolute authority; and require railways to provide significant new data and performance metrics, including new data on rates. It would also provide agency “own motion” powers to investigate service-level issues in the freight rail system.
Passage of the bill is of the utmost urgency. Grain farmers and shippers are depending on the bill to prepare for the coming harvest season. Many stakeholders, including the likes of the Alberta Wheat Commission, Alberta Barley, the Grain Growers of Canada, and Cereals Canada, have stressed the need for Bill C-49 to be passed before the summer recess. These groups represent hard-working Canadians who are urging parliamentarians to pass the bill expeditiously, and in turn, to fight for them and their livelihoods.
The government and minister have carefully considered the risks, benefits, balance, and impacts of the policies in this bill. The bill has been thoroughly studied and debated for more than a year now in the two chambers. Prior to this, issues were studied by the Canadian transportation review panel, chaired by the hon. David Emerson. There has been an extensive series of additional round tables and consultations. All the input provided by stakeholders and witnesses was shared with the respective panels and committees.
It is clear that the other place wants the same as the government: an effective, efficient, and balanced rail system for the long term. The essential nature of the whole transportation system requires extensive study before changes are made to ensure that we do not end up with unintended consequences that put our system at risk. This study has taken place, and the government has produced a bill that best serves Canadians over the long term. There are many Canadians who will benefit from this bill, and they are eager to see it passed. It is now time to move forward.
