Kate Young

[Air Canada Public Participation Act, April 15th, 2016]

Mr. Speaker, actually we are doing quite the opposite. What we want to do is secure jobs for the future, and that is what making some changes to the act will do. The aerospace industry is so competitive that we must look to the future to make sure we keep jobs and build new jobs right across the country.

[Air Canada Public Participation Act, April 15th, 2016]

Mr. Speaker, the hon. member raised an important question.

It is important to underscore that this legislation does not talk about the bilingual nature of the Air Canada Public Participation Act. That is not part of any changes. That will continue.

We are all very happy that Air Canada has made the commitment to continue talking and working toward much better service for all Canadians throughout the country.

[Air Canada Public Participation Act, April 15th, 2016]

Mr. Speaker, listening to stakeholders is always very important when government is making decisions like this. That is why we want to move this forward to the committee.

We need to have stakeholders voice their concerns, if they have concerns, and the proper place to do that is at the committee level. That is what we are proposing.

[Air Canada Public Participation Act, April 15th, 2016]

Mr. Speaker, I am pleased to rise today to commence debate at second reading of Bill C-10, amendments to the Air Canada Public Participation Act. These amendments seek to modernize legislation to allow Air Canada to more effectively respond to the evolution of market conditions while continuing to support jobs for skilled workers in Canada's aerospace sector. This bill would amend the provisions of the Air Canada Public Participation Act dealing with Air Canada's operational and overhaul centres.

Let me first say that this bill is being submitted for consideration to the House in the context of an historic investment by Air Canada in Canada's aerospace sector. As members are aware, Air Canada has announced its intention to purchase up to 75 Bombardier C Series aircraft and to ensure that these planes will be maintained in Canada for at least 20 years.

Air Canada has also said it plans to support the creation of centres of excellence for aircraft maintenance in Quebec and Manitoba, and the company says it will continue to carry out significant work in other parts of Canada. In other words, this bill comes before this place at an important time for Canada's aerospace sector. Not only is Bombardier producing an aircraft that is a game changer for aviation in terms of its efficiency, environmental performance, and noise, but Air Canada is adding this plane to its fleet, creating significant opportunities for high-value employment.

Quebec has estimated that the creation of the centre of excellence in Montreal alone could produce 1,000 jobs over 15 years, while the manufacturing of Air Canada's C Series aircraft could create an additional 300 jobs. Air Canada also intends to support the creation of 150 jobs in Manitoba, with a possibility to expand beyond that. These are precisely the results that we should be pursuing. They are market-driven investments aimed at improving Air Canada's bottom line and ability to serve Canadians, by investing in world-class technology right here in Canada.

As members are aware, the Attorney General of Quebec took legal action against Air Canada following the closure of Aveos Fleet Performance in 2012, accusing the carrier of non-compliance with these provisions of the Air Canada Public Participation Act. In light of Air Canada's investments in aerospace in Canada, including aircraft maintenance, Quebec has since announced its willingness to discontinue its pursuit of that litigation.

This creates an appropriate context for us to modernize the Air Canada Public Participation Act. This legislation is now close to 30 years old. It was created to enable the privatization of Air Canada, which occurred in 1989. Specifically, I am referring to paragraph 6(1)(d), which calls for Air Canada to have in its articles of continuance:

provisions requiring the Corporation to maintain operational and overhaul centres in the City of Winnipeg, the Montreal Urban Community and the City of Mississauga;

Let me begin by providing to the House some of the history of this legislation. The Air Canada Public Participation Act was brought in at a time when countries around the world were moving away from a high degree of regulation and public ownership in certain sectors, notably air transport. Canada was no exception. To support economic growth, deliver new services to Canadians, and significantly reduce the burden on the taxpayers, the government took several actions. We deregulated the air transport sector. We commercialized our major airports. Also, by way of the Air Canada Public Participation Act, we transformed Air Canada from a crown corporation into a viable and competitive private company.

The air transport sector has greatly evolved since 1989. Now it is common for global air carriers to outsource aircraft maintenance and to distribute their supply chain across different geographic areas, with a view to being more efficient. This is the competitive environment within which Air Canada operates. Other air carriers, Canadian and international, are not subject to the same obligations regarding their maintenance facilities. That means that they can seek out efficiencies in ways that Air Canada cannot.

Ultimately, the result of this is that Air Canada could be less competitive. Furthermore, if Air Canada's ability to reduce costs is limited by the act, that could make air travel more expensive for Canadians. In other words, the Air Canada Public Participation Act could place limits on the company's ability to be competitive and cost effective, with implications for the travelling public and the Canadian economy. This does not support an approach to air transport that focuses on competition and market forces as the best means to deliver value to users. Air Canada, like any company, needs flexibility to evolve within its competitive environment to remain viable.

Of course, we were all concerned when Aveos closed its doors in 2012, resulting in layoffs across the country. Some divisions of Aveos were purchased as part of the bankruptcy process and kept in operation, but others were not. The closure of Aveos meant that Air Canada ceased to carry out certain work in Canada. The minister objected to this, as did many of our colleagues. That is why we are so pleased to see that Air Canada is now investing in Canada's aerospace and aircraft maintenance sector, and in doing so creating concrete employment opportunities for Canadians in this sector. That is precisely the type of outcome we wanted to see.

The Air Canada investment in the C Series and support for the creation of the centres of excellence in Quebec and Manitoba offer specific opportunities for highly skilled aerospace workers, both during the manufacturing phase, and later, for maintenance. Our intention in introducing this legislation is to strike the right balance.

First, we want Air Canada to have flexibility to organize its activities, to match how the air transport sector has evolved and will continue to evolve. At the same time, we want to ensure that the act continues to require Air Canada to carry out aircraft maintenance in certain Canadian regions. This proposed legislation maintains that commitment.

The act currently refers to the city of Winnipeg, the city of Mississauga, and the Montreal urban community. I note that the Montreal urban community, which no longer exists as a jurisdiction, did not include all of greater Montreal. For example, it did not include Mirabel. Also, Air Canada's activities extend throughout the greater Toronto area, not just Mississauga.

Given this, we have chosen to expand the reference in the legislation to cover the provinces of Manitoba, Ontario, and Quebec, which allows for Air Canada's maintenance work to extend to areas around the named cities, as opposed to remaining strictly within the city limits. Furthermore, Bill C-10 would clarify that paragraph 6(1)(d) of the Air Canada Public Participation Act requires Air Canada to commit to carry out or cause to be carried out aircraft maintenance, including with regard to airframes, engines, components, equipment, or parts, in Manitoba, Ontario, and Quebec.

However, this does not mean to specify particular types or volumes of such maintenance in each location, or particular levels of employment. In this way, it will be clear that we are not tying the hands of a private company to manage its operations into the future. Air Canada will be able to adjust its activities to respond to the evolution of the air transportation sector in the same way that any other company does.

I would like to remind the House of the nature of air transport and how it has evolved. This is a truly global business, characterized by large international corporations providing services over vast networks, using extremely expensive equipment. It is also highly susceptible to external shocks and is cyclical in nature. Air transport provides essential connectivity, both within this vast country and to the outside world. It is also a major source of employment. Air Canada alone employs close to 25,000 people.

Air transportation has evolved considerably since the 1980s. We have seen important new aircraft technologies, huge global growth in traffic, new business models, and new air carriers. It has also weathered major shocks, such as pandemics, economic crises, and the terrorist attacks of 9/11. We can only imagine how the sector will evolve in the future.

Federal policy regarding Canada's air transport sector places a premium on competition and market forces. We do not subsidize the sector. Rather, we support the user-pay principle with regard to infrastructure and service. This is not the case in all countries.

Since its privatization, Air Canada has existed as a private enterprise without state support, despite weathering some difficult periods. While the federal government participated in bridge financing, along with private partners, to help Air Canada through the credit crunch resulting from the 2009 global financial crisis, this was done on commercial terms. Any loans were paid back in full with interest.

Where both air transport and aerospace are concerned, it is essential that Canada be competitive, but we cannot rest on our laurels as the world of aviation is changing quickly.

I am particularly pleased that our aviation and aerospace sectors have come together, with the recent announcement by Air Canada regarding its purchase of the Bombardier C Series. This will allow Air Canada to operate aircraft that set new standards in aviation by cutting fuel consumption, reducing GHG emissions, and minimizing noise.

These aircraft will be designed, assembled, and maintained in Canada, creating opportunities for well-paid employment. It is hard to imagine a better outcome. This is the sort of result we hoped to see when we raised concerns around the closure of Aveos.

I am also very pleased that Quebec and Air Canada are nearing an end to the litigation based on the Air Canada Public Participation Act.

I commend Air Canada for supporting the creation of centres of excellence that will provide employment for highly skilled aerospace workers in Manitoba and Quebec.

In this context, it is now time to modernize the Air Canada Public Participation Act to clarify its intent. Yes, we want the legislation to be clear that Air Canada will undertake aircraft maintenance in Manitoba, Ontario, and Quebec. However, as it is a company that needs to compete in an evolving global marketplace, we need to give Air Canada the flexibility to meet these requirements in a way that also supports its competitiveness.

I believe that Bill C-10 achieves that balance. I hope honourable members will join me in supporting this bill and will quickly refer it to the Standing Committee on Transport, Infrastructure and Communities, where we can hear from stakeholders.

[Situation in Indigenous Communities, April 12th, 2016]

Mr. Speaker, you are right. We all want to take part in tonight's important discussion on this incredibly tragic issue.

What we are hearing tonight are heart-wrenching stories, and I would not expect anything less. I agree with the member when he said that words are not enough.

Just last week I had the honour of attending a grade 3 class at the Standing Stone School on the Oneida Nation of the Thames near London, Ontario. I heard from the students who had all written letters to the Prime Minister imploring him to make a difference. They questioned me on whether we were going to follow through on our commitments and on the mandate letters. I was so impressed with these grade 3 students who were all of seven or eight years old. They were asking me really tough questions. I realized at that point that words are not enough, that we must do more. The fact that we are all here tonight discussing this important issue makes me believe that we are on the same page and that we will make a difference.

[The Budget, April 12th, 2016]

Mr. Speaker, like my colleague, I have had the opportunity over the past number of weeks to discuss the budget with stakeholders in my area of London, and I was pleased with the response. We had a number of round table discussions with employment groups, high-tech companies, and aboriginal citizens, who feel that we are on the right track.

Would the member agree that the reception in his constituency has been as positive as I have found it to be?

[Business of Supply, March 8th, 2016]

Mr. Speaker, it is obvious that a number of times governments at all levels had an opportunity to react to this. We have decided not to reopen the current tripartite agreement after the City of Toronto and the federal government were asked years ago to do the same.

[Business of Supply, March 8th, 2016]

Mr. Speaker, I want to reiterate that the decision was in the best interests of the people of Toronto and the people of Canada, and the environment along the waterfront is so important, as well as commercial interests in Toronto. Under the circumstances, there was no reason to open that tripartite agreement, and we have decided that we will not be reopening it.

[Business of Supply, March 8th, 2016]

Mr. Speaker, I thank the hon. member for asking that question. It is true that at the right time, expansion is good, as it was when the London airport became an international airport. However, there is no compelling case to say that this Billy Bishop airport should be expanded, and the city of Toronto had a number of opportunities to open the tripartite agreement, but it never did.

Billy Bishop airport is already providing valuable airport services without an expansion, so it is important for the Toronto economy and it will remain important to the Toronto economy.

[Business of Supply, March 8th, 2016]

Mr. Speaker, I will be sharing my time with my hon. colleague from Toronto—Danforth today.

The government has noted the importance of Canada's aviation and aerospace sectors, and has noted Bombardier's contribution to these sectors. Allow me to reiterate our view that the Canadian aerospace has one of the strongest mechanisms for both investment and international trade, and serves both Canada and the world.

As the minister said at the start of the debate, our aviation and aerospace sectors connect people to jobs and help deliver essential goods and services. Their products, people and skills are in demand around the world, as are Canada's abilities as a certifier and regulator in these sectors.

Last year, our aerospace sector generated more than 180,000 jobs and added $29 billion to our country's economy. Companies such as Bombardier export approximately 80% of the products they make.

As we have noted, the Government of Canada was pleased by Air Canada's announcement about its intention to purchase Bombardier's C Series aircraft. The C Series aircraft is a major advancement in aviation as I have mentioned, and we are confident that its addition to Air Canada's fleet will benefit both the company and Canada's aerospace sector.

However, interest in the C Series has not been limited to Air Canada. The first C Series aircraft will be delivered to Swiss International Air Lines in the spring. The entry of the Swiss C Series aircraft into commercial service will give Bombardier a chance to show the world that the C Series is truly a quality aircraft for the world.

The government is proud that Transport Canada has been a part of the process to certify that the aircraft meets Canada's standards for airworthiness and environmental regulations. This initial approval is a significant step toward Bombardier obtaining full certification in Canada, Europe, the United States, and abroad. Such approval will also help Bombardier to build investor and customer confidence.

Moving on to the question of the Billy Bishop Toronto City Airport, I would like to restate our position that the question of whether to amend the tripartite agreement and allow the expansion of Billy Bishop Toronto City Airport, address the use of commercial jet aircraft and extend that airport's runway was not based on whether Bombardier could sell more aircraft.

The greater Toronto area and southern Ontario as a whole are well served by their airports, and I will include the London International Airport in that mix. Let me reiterate what the minister has said.

Toronto Pearson is by far Canada's busiest airport and has more international passengers than any North American airport, after New York's John F. Kennedy International. Billy Bishop helps to connect Toronto's business heart to other major centres in Canada and the United States. Other airports like the London International Airport and Hamilton's airport are expanding and providing specialty services, for instance, Hamilton courier traffic. Together these airports serve general and commercial aviation, passengers, shippers, and businesses contributing to both local and national economies.

Billy Bishop airport now offers service to 24 cities in Canada and the U.S., with connections to more than 80 cities across the globe. It is also a base for an air ambulance service, which flew approximately 4,600 flights in 2014, and is home to a sizeable personal aviation community that includes a flight school. Billy Bishop airport is already an important contributor to Toronto's economy and is already providing a valuable service without expansion.

Last month, it was named one of the top airports in North America and the Airports Council International, ACI, 2015 airport service quality award. It tied for third in the best airports North American region category, one of only two Canadian airports to make the list along with the Ottawa International Airport. This recognition demonstrates that the investments that have been made in the airport are already providing its users with better amenities, improved access, and an exceptional travel experience.

On November 12, 2015, the Minister of Transport announced that the Government of Canada would not reopen the tripartite agreement among this government, the city of Toronto, and PortsToronto to allow expansion of the Billy Bishop Toronto City Airport.

As the minister has noted in the debate, the government stands by this decision. The current tripartite agreement strikes the right balance between commercial interests and the interests of local communities, environmental and cultural challenges, including the evolution of the waterfront. This issue is larger than just the airport. With other jet-capable airports close by, we believe there has been no reason to change the current approach.

The government is not alone in this position. Several citizens groups in GTA have opposed any proposed expansion of Billy Bishop airport. Accordingly, they support our position against reopening the agreement.

As the minister pointed out, this issue goes beyond just the airport, and involves the fact that Torontonians desire a greater say in the development of their waterfront, a waterfront that could be affected by expansion of the Billy Bishop airport.

To entertain a proposal to amend the tripartite agreement between the federal government, the city of Toronto, and PortsToronto, we would have to consider more than just whether to allow jet aircraft or a runway extension. We would have to assess many factors related to safe, secure, efficient, and environmentally responsible air travel and cargo services.

This has already been done. The government continually assesses the air policy framework to ensure that Canada's air transportation system can respond to this evolving environment and is properly equipped to facilitate future growth. This decision considers the best interests of Torontonians and Canadians.

In April 2014, Toronto City Council debated the issue and actively sought the views of the then federal government. The city asked the federal government of the day to take a public position on proposed changes to the tripartite agreement that would permit the expansion of the airport and to allow jet aircraft, such as the Bombardier C Series, to operate from the airport.

Let me remind members that from April 2013 to the fall of 2015, there were multiple public meetings, conferences, and other events at which the proposed expansion of the Billy Bishop Toronto City Airport was discussed. There were web forums, opportunities for public comment, and many other open avenues where anyone could express their views on the issue. Many factors related to the proposal were discussed and debated, as were its potential economic benefits, but to link the expansion of Billy Bishop with the success of the Bombardier C Series is simplistic and ignores the larger picture.

Bombardier products have always and will always succeed based on their quality and competitiveness in global markets. Opposition members cannot imply that the success of Bombardier only depends on the expansion of Billy Bishop.

Let me reiterate that the government is confident that the existing tripartite agreement strikes the right balance between commercial interests and the interests of local communities, environmental and cultural challenges, including the evolution of the waterfront.

We made the right decision in not permitting the expansion, and we stand by this balanced decision. The government will therefore not support the motion.