Steven Fletcher

[Fair Rail Freight Service Act, February 1st, 2013]

Mr. Speaker, I suppose it depends on how we judge time. There is geologic time; there is Ottawa time, and then there is real time. Given that this is a serious piece of legislation that affects the economy of the country, we do not want to rush it. We want to make sure it is balanced and that we take stakeholders into consideration. We are trying to be as fair as possible to everyone involved, so in Ottawa time the legislation has been done in the equivalent of a nanosecond in real time.

[Fair Rail Freight Service Act, February 1st, 2013]

Mr. Speaker, I thank the member for the question and for pointing out that the fine is per violation. It could add up very quickly and would damage any business. Therefore, it is not in anyone's interest, especially the railways', not to fulfill the service agreements.

I know the member comes from a resource-rich area. He may be interested to know that David Lindsay, the president and CEO of Forest Products Association of Canada, is very supportive. The wheat growers, the barley growers, the canola industry, people who use the railway for shipping, are supportive. I have dozens of quotes from stakeholders who are supportive of the legislation. The legislation will help the economies of Prince George and communities like it.

[Fair Rail Freight Service Act, February 1st, 2013]

Mr. Speaker, it is correct that historically there have been challenges between railways and shippers. However, we also have to recognize that railways have improved in the last few years. This legislation is designed to ensure that shippers and railways respect each other and that we have a continuous chain of supply.

If there is a problem there is a dispute mechanism, which would not be expensive. It would be done quickly and efficiently. I spoke to that in my remarks. The $100,000 a day fine is substantial with respect to the worth of CN or CP. They would not be in business long if they were to incur $100,000 a day, or per violation, too often.

It is still a competitive marketplace, and whomever provides the best service often wins in the end. This is a carrot and a stick approach. We look forward to railways and shippers working together. We are empowering shippers to be able to deal with the railways when they do not act appropriately.

[Fair Rail Freight Service Act, February 1st, 2013]

moved that Bill C-52, An Act to amend the Canada Transportation Act (administration, air and railway transportation and arbitration), be read the second time and referred to a committee.

Mr. Speaker, I am pleased to rise today to support Bill C-52, the fair rail freight service act. I would also like to take a moment, since it is the first time this year that I have spoken in the House, to say that I wish everyone a great 2013 and look forward to passing great legislation, such as the act I am about to speak to.

First, I congratulate the Minister of Transport, Infrastructure and Communities for his tremendous work on this important file. I would also like to thank my colleagues, the former Minister of State for Transport, the hon. member for Yellowhead; the Minister of Agriculture and Agri-Food; and the Minister of Natural Resources for their contributions and support. In addition, there were many more people who contributed to the legislation in order to make it the best legislation possible.

Our Conservative government remains focused on jobs, growth and long-term prosperity. The bill advances these priorities. It will help shippers maintain and grow their businesses, while ensuring that railways manage an efficient shipping network for everyone.

Canadian businesses count on a reliable rail transportation system.

With 70% of Canada's surface freight moving by train, railways are extremely important to the competitiveness of our economy. In 2010, Canada's major freight rail companies, Canadian National and Canadian Pacific, served approximately 5,000 shippers and transported products to more than 10,000 destinations in North America and around the world.

As my hon. colleagues know, our government launched the rail freight service review in 2008. Its objective was to address ongoing issues raised by shippers concerning the reliability and consistency of rail freight service. We appointed an independent three-member panel to conduct a comprehensive review of service issues and problems related to the rail system in Canada. The panel was asked to submit recommendations to improve the efficiency, effectiveness and reliability of rail shipping in order to support trade and economic growth. The panel held broad consultations across the country, hearing from both shippers' representatives and railways.

Their recommendations proposed the use of service agreements to increase the clarity and predictability of rail service. These agreements would clarify and clearly define the services that railways would provide and how shippers and railways interact. This proposal is based on the idea that by working together to develop these agreements, shippers and railways can improve the efficiency of the supply train rail freight system and in doing so enhance their contribution to Canada's competitiveness in the world economy.

It is worth nothing that service agreements are a commercial tool, which our government believes is the best approach to improve the relationship between railways and shippers. We base this view on the fact that shippers and railways have always worked together commercially to define their private business dealings. Sometimes, however, shippers have been unable to negotiate contracts with railways to address service issues. Many shippers would like these agreements to know what service they can expect from the railways in order to manage their businesses and plan for the future.

On March 18, 2011, our government announced that it accepted the panel's commercial approach. In fact, we went beyond the recommendations. We put in place four key measures to improve the performance of the entire rail supply chain. First, we launched a facilitation process to bring together shippers and railways to negotiate a template service agreement and develop a process to resolve commercial disputes. This process focused on improving the private commercial relationship. This six-month facilitation, which was led by Mr. Jim Dinning, took place in 2012.

Second, we committed to table legislation to give shippers the right to service agreements with railways and to establish a process for obtaining an agreement if commercial negotiations fail. The fair rail freight service act would fulfill this commitment and give shippers the certainty that they would be able to obtain service contracts from the railways.

Third, we committed to establish a body of rail shippers to address logistics and develop standards to improve competitiveness. This group, known as a commodity supply chain table, will soon be established. Finally, we determined the need for an in-depth analysis of the grain supply chain to focus on issues that affect that sector and help identify potential solutions. This study is under way and should be completed soon.

Together, these measures deliver on our Conservative government's commitment to ensure Canada has the rail system it needs, one that supports strong economic growth and long-term prosperity.

It is worth noting why the legislation is needed. Canadians and Canadian businesses depend on rail to transport products to markets, both here in Canada and around the world, and it has to be done efficiently. We drafted the fair rail freight service act by working closely with and listening to the stakeholders involved. Shippers from a wide range of commodities and manufacturing sectors have told us what is important to them and what they need. Rail companies also explained the obligations they have to serve all shippers and the constraints they may face in carrying out their business.

This consultation helped us develop reasonable and intelligent legislation that would reflect the interests of both shippers and railways to meet the needs of the Canadian economy. This consultation also helped us develop reasonable and intelligent legislative proposals that reflect the interests of all the various stakeholders throughout our economy. The fair rail freight service act would create a strong incentive for issues around rail shipping to be settled through commercial means.

By requiring railways to offer agreements to shippers that requests them, the legislation would give the shipper the legal right to ask for a service level agreement. When a shipper requests an agreement, railways would have 30 days to offer one. The agreement would cover the terms of service that the railway and the customers would follow to move the shipper's goods. It could also include communication protocols and performance indicators, such as frequency of service, transit times and the number and type of cars, as elements that the rail companies would provide for their customers. This right to a service agreement would provide an effective tool for shippers to use in their discussions with railways.

In the event that negotiations for such an agreement fail, Bill C-52 proposes a fair, speedy and inexpensive process to establish the service contract. The shipper would be able to go to the Canadian Transportation Agency to ask an arbiter to impose an agreement. To make such a request, the shipper would have to demonstrate that an effort had been made to reach an agreement commercially and that a 15-day notice had been served to the railway prior to the request for arbitration. The shipper would trigger the arbitration and frame the service issues to be addressed. The shipper and the railway would then each have the opportunity to provide submissions to the arbiter with their views in respect to the contract.

This process, however, would be an interest-based arbitration. This means the arbiter must consider the interests of both the shipper and the railway in establishing the service contract. The legislation would provide guidance to the arbiter on factors to consider when establishing a service contract, including the shipper's transportation requirements and the overall obligations of the railway to provide service to all shippers. The arbiter would have the flexibility to determine the right service contract for each individual case. Every shipper is different. There is no one-size-fits-all approach. In establishing a contract, the arbiter must consider the unique circumstances in each case. As a result, arbitration decisions would be fair and reasonable for both parties.

Finally, the fair rail freight service act would provide a strong enforcement mechanism to ensure compliance with arbitrated service contracts. It proposes the use of administrative monetary penalties to hold railways accountable for their service obligations, as defined in the arbitrated contracts. If a railway breaches its service obligations, the shipper would be able to complain to the Canadian Transportation Agency. If the agency confirms the violation, it could apply a penalty of up to $100,000 for each violation by the railway.

Taken together, these measures of the right to service agreements, an efficient and speedy process when commercial negotiations fail and strong enforcement for arbitrated agreements would provide shippers with clarity, predictability and reliability when they need to grow their businesses and plan for the future.

Our primary objective is to encourage better commercial relationships between railways and shippers. This legislation creates a very strong incentive for parties to settle agreements privately. In most cases, shippers and rail companies should be able to negotiate terms and agreements on their own. Second, over the last number of years rail companies have improved their service. Shippers themselves acknowledge that service has improved, and I would like to take a moment to congratulate the rail companies for this progress. Despite this fact, we must pass Bill C-52 to solidify and improve upon these gains to ensure that Canada's rail system is well positioned for the future. We must ensure the entire rail system in Canada will be able to support the expected increases in shipping, which is bound to occur due to our government's robust trade agenda.

As demonstrated by several new and developing free trade agreements, Canada is turning increasingly towards global trade to generate economic growth. This means we need efficient and effective transportation networks to give Canadian businesses a competitive advantage in the world markets.

Before I conclude, I would also like to note that this legislation supports our government's responsible resource development agenda. In our efforts to modernize the grain sector, as we expand Canada's international exports, we need a rail transportation system that can move our resources to global markets efficiently and reliably.This legislation will make an enormous difference for our shippers in the resource sector. It will give grain farmers more predictable service as they work to sell their grain on the international market. It will give lumber mills more reliable service as they expand sales to Asia, and it will improve service to exporters of minerals, such as potash and coal. By improving the reliability and predictability of rail service, we help to strengthen Canada. We help strengthen Canadian companies and help increase Canadian companies' overseas sales.This legislation will create jobs, make Canada more competitive in the world economy and will make Canada a more attractive place to invest.

This proposed legislation offers a strong new tool to enhance the relationship between shippers and railways. Our Conservative government is proud to be taking this strong action to enhance efficiency, effectiveness and reliability of the Canadian rail freight system. I am convinced that these proposed measures will help build an even stronger freight rail system and contribute to Canada's success in international trade.

Bill C-52 will promote growth, create jobs and build prosperity for all Canadians. I encourage all members in this House to vote in favour of this legislation and refer it to the Standing Committee on Transport, Infrastructure and Communities without delay.

I would like to thank the many stakeholders, parliamentarians, and the shippers and rail companies, for their input in this process. We have come forward with legislation that I think has very broad support and will, as I have said many times already, make our country stronger. We live in the best country in the world, at the best time in history to be alive, and now we can ship our products more easily.

[The Environment, December 11th, 2012]

Mr. Speaker, I welcome the member for Victoria to the House of Commons. He may not be here for a long time, but it will be a good time.

The big picture is our economic action plan has made Canada a leader in troubled global times. Canada has the lowest debt burden, by far, of all the G7 countries. We have created almost 900,000 net new jobs. We are governed by the best Prime Minister and Minister of Finance in the world.

[Rail Transportation, December 10th, 2012]

Mr. Speaker, VIA Rail is an arm's-length crown corporation that develops schedules based on demand. The demand in those routes has gone down, and some of those routes are duplicated with the GO Train. Some are duplicated with bus service. VIA Rail provides a service, but so do other services in the same vein. So no matter what, Canadians will be able to get from point A to point B, and we will ensure that taxpayers' money is respected.

[Rail Transportation, December 10th, 2012]

Mr. Speaker, VIA is an arm's-length crown corporation that develops schedules based on demand. In the region the member is describing, demand has fallen by 50% in the last 15 years. VIA actually is going to make adjustments and, by doing so, respect taxpayers' money. VIA is subsidized by hundreds of millions of dollars. I know the NDP does not think that is a lot of money, but taxpayers do.

[Labour, December 4th, 2012]

Mr. Speaker, yes, of course we condemn this misuse of funds. Time and time again, the NDP and the leader of the opposition stand with their big union bosses, rather than for the taxpayers. The NDP should understand that using public funds to attend extremist political conferences in Rio is just plain wrong.

I wonder if the leader will condemn this use of public funds, while big union bosses are around and playing in hateful activities around Ipanema and Copacabana beaches.

[Aerospace Industry, November 30th, 2012]

Mr. Speaker, in fact, the government has provided tremendous support to the aerospace industry in Manitoba. We have, through our various programs, provided tens of millions of dollars to companies like StandardAero, Magellan and Boeing, all in the Winnipeg area. However, we have also done the same throughout the country because aerospace is a big part of our economy and it is just about to take off.

[Labour, November 30th, 2012]

Mr. Speaker, I find it disturbing that the NDP big union bosses would think that this kind of expenditure is acceptable, using public funds to go to Rio.

When I became aware of the situation, I immediately ordered Canada Post to recover and stop payment of any public funds used by the big NDP bosses to attend this radical political conference. Canada Post has assured me that it acted immediately and that no money has been used from the public purse.