Kyle Peterson

[Air Canada Public Participation Act, June 1st, 2016]

Madam Speaker, thank you for the opportunity to rise to debate Bill C-10, proposing amendments to the Air Canada Public Participation Act.

I would like to take a few minutes to explain why the Government of Canada believes this is an appropriate moment to modify the almost 30-year-old act.

Let us first recall that the Air Canada Public Participation Act's primary purpose was to convert a crown corporation into a thriving and competitive private corporation in an industry that is characterized by aggressive competition, strong cyclical business patterns, and sensitivity to external shock.

The Air Canada Public Participation Act was brought into force in 1989 to provide the federal government with the legal framework to privatize Air Canada. It also required the airline to have provisions regarding where it carried out its maintenance, the use of official languages, and where its headquarters would be located. Other airlines, Air Canada's competitors from Canada and abroad, are not subject to such conditions. The market conditions in which Air Canada operates are now greatly different from those of 1989.

The 1980s was characterized by deregulation. Since that time, the world has seen a proliferation of new air carriers as well as new airline business models. In June 1980, the then president of the International Air Transport Association reported that its membership was composed of 100 airlines from 85 nations. Today, its membership is composed of 260 airlines.

In short, the air carrier marketplace is now much more competitive. This is a good thing. It benefits travellers and it pushes the airlines to be as efficient as possible. However, we must ensure that our carriers are able to compete themselves, or we risk limiting Canadians connectivity and we threaten the economic viability of these carriers in Canada.

The Canadian marketplace has also evolved. By the end of the 1990s, Canadian Airlines International ceased operations, reducing the extent of competition. Other carriers, like Canada 3000, also came and went. However, since then there has been a flourishing of growth among Canadian companies. WestJet, Porter, Transat, Sunwing, and others provide important travel options for Canadians. I should also note the important role played by foreign carriers in offering other travel options to and from Canada. Choice is good for the consumers.

Air Canada continues to provide vital connectivity, both within our vast country and also to the outside world. It is also an important source of employment and opportunity. Our air sector has weathered some difficult times, including the tragic events of 9/11, global pandemic, and the recent economic crisis, yet it continues to robustly offer service options to Canadians. In short, we have come a long way since the 1980s when the government of the day created this law.

The Air Canada Public Participation Act has clearly achieved its primary objective of successfully privatizing Air Canada. Furthermore, many other aspects of the act remain relevant. However, given that times have changed and the air transport sector has evolved, it is also important to ensure that this statute remains up to date.

In particular, the provisions of the act that deal with aircraft maintenance risk hampering Air Canada's competitiveness by limiting its ability to organize its activities in a way that responds to the evolution in the air sector. Furthermore, given Air Canada's role in providing Canadians with connectivity, this could also impact on the overall competitiveness and cost of air transport throughout the country.

This leads me to my second point, which is about economic opportunity for Canada's aerospace sector. Air Canada and Quebec have indicated their intentions to end their litigation regarding the carrier's compliance with the Air Canada Public Participation Act. This announcement came on the heels of Air Canada's declared intention to purchase up to 75 Bombardier C Series aircraft, to ensure that these planes will be maintained in Canada for at least 20 years, as well as to collaborate in the establishment of a world-class centre of excellence in Montreal.

Furthermore, Air Canada will also be facilitating the creation of a centre of excellence on aircraft maintenance in Manitoba, and we understand that this has led the government of that province to agree to discontinue litigation.

The Air Canada-Quebec agreement will allow the carrier to benefit from cutting-edge aircraft technology produced here in Canada. It will also result in significant benefits for the aerospace industry, including aircraft maintenance right across the country. This is the sort of investment that the aerospace sector needs.

Quebec and Manitoba have accepted that these conditions create a context in which they no longer feel the need to pursue litigation against Air Canada. These developments provide us with an ideal opportunity to rethink our approach and look for opportunities for improvement.

Federal officials have identified specific concerns around the maintenance provisions of the Air Canada Public Participation Act because they create challenges for Air Canada's ability to be competitive. Specifically, they prevent Air Canada from doing what other carriers do, which is to organize its supply chain to optimize efficiency.

The intention of Air Canada, Quebec, and Manitoba to discontinue the litigation creates an appropriate context to modernize the act and indicates that the parties are working together toward a similar objective: the growth of Canadian prosperity. However, let me be clear, we continue to believe that Air Canada should commit to undertaking aircraft maintenance in Manitoba, Ontario, and Quebec, and we intend for this to be stipulated in the law. However, we need to provide Air Canada with the flexibility to meet the requirements to compete in an evolving global marketplace.

We cannot predict how the airline industry will evolve in the future. Whatever happens, our carriers will need to adjust to meet the challenges and remain competitive. Air Canada needs the flexibility to enable it to adapt to changing market conditions. Bill C-10 allows us to target the right balance between such flexibility and the continued expectation that the carrier will undertake aircraft maintenance in Canada.

The time is now to modernize the Air Canada Public Participation Act and to achieve this balance. With Bill C-10, the government is taking a necessary step to amend the Air Canada Public Participation Act to ensure it will continue to be relevant as the sector evolves in the future.

I would now like to take a minute to review how the air carrier sector has evolved since Air Canada was privatized in 1989.

There have been some fundamental shifts in the last 30 years. For example, there has been an important rise in the market share of new global carriers, like those of the Gulf States, that are now playing a major role in global competition.

In the United States, there has been significant rationalization of air carriers, where most major airlines have been through chapter 11 bankruptcy protection, resulting in a major reduction of their costs.

Europe has also seen a series of major air carrier alliances. The low-cost model has come to be a predominant paradigm for certain types of travel within some markets, like Europe, Southeast Asia, and the U.S.

All of these points speak to a highly competitive environment that creates a need for air carriers to seek constant cost reductions to meet travellers' and shippers' expectations.

Canada is no exception where major shifts in the air sector are concerned. Our air transport sector is now fundamentally different from how it looked in 1989. Following years of financial difficulties, Canadian Airlines International ceased to operate in the 1990s and was ultimately acquired by and merged with Air Canada. WestJet has since become a major player, resulting in robust and sustainable competition between two Canadian carriers. Other newer carriers have also been added to the Canadian market, such as Porter Airlines and Sunwing. Canada's charter market is particularly active with many carriers, such as Air Transat, offering services to Canadians. Air Canada itself underwent a major restructuring in 2003-04, under the provisions of the Companies' Creditors Arrangement Act, the CCAA, which allowed the carrier to emerge as a healthy and viable global competitor.

Where aircraft maintenance is concerned, Air Canada's restructuring under the CCAA included making some previously in-house operations independent, including its maintenance operations, repair and overall service provider, which ultimately became Aveos. Air Canada's decision at the time was in keeping with the practices of many global carriers.

The 2012 aerospace review noted the increasing importance of low-cost maintenance, repair and overhaul service provided in developing countries, many of which are closer to the growing markets in Asia, Latin America, and the Middle East. While Air Canada is not outsourcing its aircraft maintenance to suppliers in developing countries, many of its competitors are.

From these examples, it is clear that for a carrier to be viable in today's industry, it must be able to adapt the elements of its supply chain to manage its costs and remain competitive. For carriers, this covers all aspects of its business, including being able to determine how and where it conducts its aircraft maintenance activities.

Currently, Air Canada is limited in being able to deal with market forces the way other carriers can. I am referring, of course, to the provisions of the Air Canada Public Participation Act, specifically the obligation in paragraph 6(1)(d) that requires Air Canada to include 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.

What we need to remember is that the original intent of the Air Canada Public Participation Act was to function as a framework for the privatization of Air Canada almost 30 years ago. It also contained a number of provisions, including the requirement for aircraft maintenance, which we are talking about today. The intent was to turn a crown corporation into a viable and competitive private company while also ensuring that it was committed to undertaking aircraft maintenance activities in those three communities. We believe that the proposed amendments maintain the spirit of this intent by requiring Air Canada to undertake aircraft maintenance in Manitoba, Ontario, and Quebec, while allowing it to choose the nature of this work in each location to remain competitive.

As we know, these provisions have been the subject of ongoing litigation between Air Canada and the Province of Quebec, with intervening support from the Province of Manitoba. However, on February 17 of this year, the Province of Quebec and Air Canada mutually agreed to pursue an end to this litigation. The decision of the Province of Quebec and Air Canada to reach an agreement has opened up an opportunity for our government to finally modernize the act and relieve Air Canada of prescriptive obligations where its operational and overhaul centres are concerned, while maintaining the spirit of the intent behind them.

We are not proposing to repeal paragraph 6(1)(d). Rather, we are proposing amendments that would allow Air Canada to undertake aircraft maintenance in Manitoba, Ontario, and Quebec, and choose the nature of this work in each location to help it remain competitive. These amendments, which I am urging hon. members to support today, are consistent with the government's approach to the air sector as an industry that is deregulated and responsive to market forces. It is these guiding principles that we believe induce companies to continue to innovate their business and seek out better ways to work and be cost competitive in the face of a changing and ultra-competitive market.

The amendments the government has put forward would allow Air Canada the same flexibility that other carriers have to seek out the best aircraft maintenance services it can find and the ability to actively manage its costs. Modernization of the act is the right decision. We know that the Province of Quebec, the Province of Manitoba, and Air Canada have agreed among themselves to collaborate on the establishment of two centres of excellence for aircraft maintenance, one in Montreal and the other in Winnipeg.

In Winnipeg alone, this new western centre of excellence is expected to bring 150 jobs to the area by 2017. In Quebec, Air Canada has committed to maintaining all of its newly acquired CS300 aircraft in the province for at least 20 years and to the establishment of a centre of excellence for aircraft maintenance which will boost Montreal's role as a world-class aeronautical hub.

These developments are a clear indication that there is a willingness among the parties to foster an ongoing relationship, one that I hope will bring economic benefits to Canada and job opportunities for Canadians long into the future.

I urge hon. members to support this bill.

[Public Service Labour Relations Act, May 30th, 2016]

Madam Speaker, I want to thank my colleague opposite for his remarks, and I do appreciate his party's support for the components of the bill that he said he is supporting. I also want to thank him for his dedicated public service over the last three decades. We do appreciate that, as Canadians.

I want to be clear if he and his party understand what they are opposing. There seems to be some confusion about what impact and what effect the secret ballot component of the legislation would have. I want to make sure he is abundantly clear on what he opposes.

My understanding is that the secret ballot is not like one that would be used in an election, but these are members of unions who may or may not opt to be in the union. I wonder if he could clarify what he actually opposes. If they understood it better, maybe they would support the bill in its entirety.

[Copyright Act, May 17th, 2016]

Mr. Speaker, I share the member's affinity for this bill and his support for it. I just have a quick question for the member.

It has been said many times that it is never the wrong time to do the right thing. Why does the member see this as the wrong time to do the right thing? He must agree this is the right thing. We all agree on it. Let us get it done. Let us get this bill passed. I would like to hear his comments on that.

[Parkinson's Disease, May 16th, 2016]

Madam Speaker, I rise today to bring attention to a Canadian who is making a difference for people living with Parkinson's disease.

This Canadian is Harry McMurtry. Harry is a former colleague of mine. We practised law together at Affleck Greene McMurtry. More importantly, Harry is also my friend. A few years ago, Harry was diagnosed with Parkinson's disease. He refused to let this diagnosis slow him down.

In fact, on May 7, Harry began walking 500 miles, from New York City to Toronto, to raise awareness and money for Parkinson's. The walk will be finished on June 22 in Toronto. During that time, Harry will walk 15 miles a day, no small feat for someone with Parkinson's. To find out more or to contribute, please visit fivehundredmiles.org.

Harry is a great community leader and serves as a shining example of positivity. Once again, I rise to celebrate Harry and his courageous undertaking, and to thank him and his colleagues for their important contribution to Parkinson's research in Canada. Good luck, Harry.

[Budget Implementation Act, 2016, No. 1, May 6th, 2016]

Mr. Speaker, let me tell the member about the small businesses in my riding. I was a member of the Newmarket Chamber of Commerce long before I had political dreams or aspirations, so I know many small businesses in Newmarket and Aurora. The chambers of commerce support this budget.

The member should not tell me that we do not support small business. We on this side of the House do not need to take lectures about supporting small business from anybody. We support small businesses. We support family businesses. We also support anybody who is working hard.

Nine million Canadians will receive the middle class tax cuts. That is not insignificant.

We can all agree that small and medium-size enterprises are the backbone of our economy. There are so many great entrepreneurs all over Canada, especially in Newmarket—Aurora, and we are pleased to support them.

[Budget Implementation Act, 2016, No. 1, May 6th, 2016]

Mr. Speaker, the member's riding is just north of my riding of Newmarket—Aurora. If he wants to talk about the election and what was said, let me tell the House what I heard when I was knocking on doors in Newmarket—Aurora. I heard families complaining that they could not afford to put their children in sports. How is the tax benefit going to help them? People with children six, seven, and eight years old could not even afford to put their kids in basketball or hockey or baseball.

The member said here is a tax credit. All of us know that tax credits do not work if we do not have any money in our pockets to pay for a service to begin with. That is the problem with the member's way of thinking. That is the problem with his former government's way of thinking. The Conservatives think a tax credit will solve everything. We all know that the Conservative government's boutique tax credits were political gimmicks that helped no one but the Conservative Party.

I was happy to talk to the people of Newmarket—Aurora. I was happy to tell them that what we need more than tax credit gimmicks is money for young families so their children can play the same sports as other families' children play. Just because they do not have enough money, their children should not be denied that opportunity and the joy of being a child.

I am happy to stand with a government that will make that more possible when this government—

[Budget Implementation Act, 2016, No. 1, May 6th, 2016]

Mr. Speaker, I rise today to speak in favour of budget 2016, and specifically Bill C-15.

At the outset, I want to let this House now how proud I am of this budget, and how proud I am to be part of a government that believes in Canada, believes in Canadians, and believes in restoring hope and rewarding hard work.

This government is taking on what the past government could not, which is giving Canadians relief where it is needed most and removing measures that provided little to no help to many Canadians.

Investment is desperately needed, and it is needed now. Canada has the lowest debt-to-GDP ratio of any G7 country, and interest rates are at historic lows. Now is the ideal time for Canada to invest in its future success.

The strategic and smart investments in budget 2016 will strengthen and expand the middle class, reduce inequality among Canadians, and what I think is especially important, position Canada for sustained economic growth for years to come.

There are five important points that I would like to make in the House today about Bill C-15. One is the elimination of the boutique tax credits. Second is the Canada child tax benefit, which will help more people, tax free. Third, I will talk a little about much-needed help for seniors. Fourth, I will talk about connecting people with their tax benefits more efficiently and, last but not least, support for veterans.

We speak a lot about fairness in this House: fairness in our marketplace, for our constituents, and fairness throughout this great country. However, in the past, this fairness was hindered by promises that were just an illusion for many Canadian families.

The past government created a series of boutique tax credits. These were many small, seemingly significant benefits that were designed to help Canadians, but frankly were simply smoke and mirrors. There were tax credits, like the children's fitness tax credit and the children's art tax credit, which appear at first glance to help all families. However, families quickly realized that they only provided a 15% tax credit on the first $500 for families who could already afford these activities. It did nothing for those families who could not afford the activities in the first place.

For many Canadian families, the reality is that after food, shelter, and all other necessities, little is left over to help their children become more involved in the community through extracurricular activities. This means that those who needed it most were unable to garner that support.

Bill C-15 is one of the first steps this government is taking to better distribute benefits and programs more fairly to those who need it the most. That means removing the boutique tax credits and ensuring that support does go to those who need it, the low and medium-income families of Canada.

I think we can all agree that it is essential that Canada invest in its children. This government is also working hard to distribute money to those who need it most through the new Canada child benefit.

Canada's existing child benefit system is complicated, and it is not tax free nor income tested. The system set forth by the previous government is flawed and ultimately inadequate in meeting the demands of so many Canadian families. Once again, it does not target those who need it the most.

Our government will focus on giving Canadian families more money to help with the high cost of raising their children by replacing the current complicated system with the new CCB. This new system will provide a maximum annual benefit of up to $6,400 per child under the age of six, and up to $5,400 per child for those aged six through 17. Families with less than $30,000 in net income will receive the maximum benefit.

With the introduction of this much better targeted Canada child benefit, about 300,000 fewer children will be living in poverty by 2017. There will be 300,000 young Canadians with greater opportunity and greater hope for their future.

This government has also made a clear commitment to improving the lives of seniors. A key element of this commitment is improving the quality of life for seniors through strengthening public pensions and increasing social infrastructure funding for seniors living.

The government would make significant new investments to support seniors in their retirement years. These increased benefits would ensure that Canadian seniors have a dignified, comfortable, and secure retirement. While Canada's retirement income system has been successful in reducing the incidence of poverty among Canadian seniors, many seniors continue to be at risk of living in poverty.

Budget 2016 has committed to increasing the guaranteed income supplement top-up benefit to $947 annually for the most vulnerable single seniors, which would support those seniors who rely almost exclusively on old age security and the guaranteed income supplement. Our senior population is growing, and this government understands that every individual deserves a retirement that is safe, affordable, and ultimately, sustainable for years to come.

Not only would these benefits be available to those who need it most, but this government has also made it clear that it wants all Canadians to be aware of tax benefits for which they qualify. While the tax system seems overwhelming and daunting to so many Canadians, this government would increase accessibility through outreach and simplified tax return processes. Through proactive outreach, Canadians are more likely to know of and collect the benefits they deserve.

With fewer slips and credits to claim, Canadians' tax returns would be simpler. This reflects a new approach for government, one that offers immediate help for those who need it most and helps to set the course for growth for all Canadians.

Budget 2016 is an ambitious long-term plan to strengthen the heart of Canada's economy, but I also want to highlight the commitment to veterans that is found in this implementation bill. I think we can all agree in the House that the government has a sacred obligation to veterans, an obligation we must meet with respect, gratitude, and appreciation. Our brave veterans have dedicated their lives to the defence of our great nation, and they are worthy of our unwavering support. We will give back to our veterans, who have given so much in service to all Canadians. The budget would restore critical access to services for veterans and ensure the long-term financial success of disabled veterans.

Once again, I am proud to support this budget and encourage all members of the House to vote in favour of Bill C-15. By investing in those who need it most, we will make vast improvements in the lives of so many Canadians. Support for our children, support for our seniors, and support for our veterans are important to all Canadians.

Further, budget 2016 is a clear step toward a prosperous future. It offers immediate help to those who need it most and lays the groundwork for sustained, inclusive economic growth that will benefit Canadian families for years to come. When Canadians have more money to save, more money to invest, and more money to grow our economy, everyone benefits.

Making investments in these critical areas will be great for all Canadians. I urge all members in the House to support Bill C-15.

[Access to Information, May 6th, 2016]

Mr. Speaker, yesterday, the President of the Treasury Board issued an interim directive on the administration of the Access to Information Act. This directive delivers on key commitments to make government more open and transparent. Would the President of the Treasury Board please explain the directive, and tell the House how this will help open up government and improve access to information right away?

[Criminal Code, May 2nd, 2016]

Mr. Speaker, I do not necessarily share my colleague's pessimism with respect to the ability of our provinces to implement processes that may or may not be derived at the federal level. I also do not necessarily agree that they may not want to implement them. If there is a robust consultation system in place with the provinces, the medical associations, and the health professionals in all of the provinces, by working in consultation, knowing full well that whatever process is in place has to be in line with the Supreme Court of Canada, I am convinced and optimistic that we will be able to come up with a reasonable process that ensures that doctors and health professionals are protected, and that the rights of the patients are protected at the same time.

[Criminal Code, May 2nd, 2016]

Mr. Speaker, the member is correct that, like her, I am not a minister of the crown or a parliamentary secretary. However, like her, I am a Dalhousie law graduate and have a complete respect for the legal process. I think, for the legal and law-making processes to work well, committees must have the ability, the power, and the capacity to make amendments when that is the will of the committee or the House. I trust and I have faith in the justice committee that it will be not only willing but able to do so at the committee stage.