Yes, two steps, and we might even be on our way toward a solution. It is in that frame of mind that we will be voting in favour of Bill C-52, An Act to amend the Canada Transportation Act (administration, air and railway transportation and arbitration). It is more a matter of railway transportation in this case. Arbitration is probably the most interesting thing about this amendment to the legislation. I will come back to that a little later.
For those who may not have heard much about this bill, let me briefly talk about what the problem is. In Canada—a vast country if ever there was one—it is advantageous to transport bulk commodities over long distances by train. It makes sense. It was meant to be. It is impossible for some shippers to even think about a mode of transportation other than rail transport.
If we had to use trucks to transport the goods shipped by a single train with several cars, first of all, it would be difficult to even get a fleet of trucks that could transport these goods. Second, this would clearly have a major impact on the environment, and third, the trucking company would become completely unproductive from an economic perspective. Rail transportation is therefore the most popular and preferred method of transportation for economic and environmental reasons.
However, as we all know, freight rail services in Canada are managed by the virtual monopoly of two companies: CN and CP. However, as I will explain later, although there appears to be competition between the two companies, that competition tends to disappear in many situations. It is difficult for shippers to negotiate contracts that meet their expectations and benefit from competition in a monopoly situation.
It is easy to say that at least Canada has two railway companies, CN and CP; however, the healthy competition that should lower prices is strangely absent. Instead, the territory, and therefore the market, is shared between these two companies. We have two companies holding a virtual monopoly rather than real competition.
In regions that have access to both CN and CP, unfortunately, one of the companies often demands prices that are too high, which once again leaves shippers with only one choice.
For several years, shippers have faced problems not only with fees, but also with delays, service interruptions and lack of available cars. There are also problems with outdated and broken cars that let part of the harvest spill out onto the tracks.
I put myself in the shoes of someone who produces grains, chemicals, natural resources or whatever watching money spill out onto the tracks as the train heads towards the port. Every time that happens, the individual's profit margin and overall profitability take a hit.
This immediately results in higher costs for shippers and a drop in profitability. Furthermore, in an economy in which the just-in-time strategy is very often the norm and is an obvious competitive advantage, shippers are caught in a David and Goliath struggle that is difficult to resolve without the government's help.
I will leave it up to my colleagues to figure out who is David and who is Goliath. I think it will be easy enough, except that in Canada, David never manages to prevail over Goliath.
Quality rail service is critical for shippers. These products are being exported, and I think it goes without saying that our exports suffer greatly in the fiercely competitive international markets as a result of numerous flaws in Canada's rail transportation system.
Businesses pay the price every time, because they lose a contract, or they have less room to manoeuvre or they make less profit. David was at least able to make the government aware of the problems he had with Goliath, but it took a lot of effort. I would say this is a marathon rather than a sprint. Efforts to raise awareness began in 2007, but it took until 2013, today, for the government to bring in a meagre bill.
I should also mention the work done previously by my colleague from Trinity—Spadina, who introduced Bill C-441, which members will certainly remember and which had loftier ambitions for dealing with this matter.
Nevertheless, there is a glimmer of hope. In 2015, we will replace this government that is plagued by scandals and poor management, and we will be able to do more about this.
I have to admit that I support this bill because of the shippers, as I mentioned earlier. This puts me in mind, appropriately enough, of the little engine that could, except that in this case, we are talking about a big engine that moves slowly indeed. It really needs a nudge.
What is in Bill C-52, an outstanding bill in the eyes of the Conservatives?
Obviously, the main point is that shippers will be able to use an arbitration process to settle their disputes with a railway company that, as we know, has a virtual monopoly.
To be eligible for arbitration, the shipper must demonstrate that attempts have been made to arrive at an agreement with the railway company, which is not easy to begin with. In its decision, the arbitrator establishes the level of services the railway company must provide and its obligations to the shipper. That would be part of the contract, I suppose. Contracts are confidential, which is why I said “I suppose” in the previous sentence.
In addition, Bill C-52 will only apply to new contracts between shippers and railway companies.
Furthermore, the maximum penalty is $100,000. I guess $100,000 for a company that made a profit of $2.7 million is not very scary. What is worse is that, if imposed, the fine will not go to the shipper to make up for the inconvenience, but into government coffers. Is this a new tax or a new fee? I have no idea. I will let the public decide whether this is appropriate or not.
Since I am quickly running out of time, I will move on to the conclusion right away.
I will support this bill, although it is a reflection of a tired government that is more concerned about image than substance. These days, even its image is taking a hit.
All shippers who work daily to provide Canadians and international clients with the best of their acquired expertise can count on the NDP, not only to allow this legislation to move forward in its early stages, but also to follow up and assess the effectiveness of the measures put in place by Bill C-52.
The solution is simple: in 2015, elect an NDP government that will once again make it possible for all Canadians to proudly believe that we can build a more just society where everyone's efforts will bear fruit.
