Amendments to the Canada Transportation Act and the Railway Safety Act

September 19, 2006

Mr. Brian Jean (Parliamentary Secretary to the Minister of Transport, Infrastructure and Communities, CPC):

Mr. Speaker, I am pleased today to have the opportunity to provide information on the provisions relating to air transportation in the proposed Bill C-11, the amendments to the Canada Transportation Act and the Railway Safety Act. First, I can assure the member for Argenteuil—Papineau—Mirabel that this government does stand up for the people of Quebec. We listen to the people of Quebec and this is an example that we listen and will make changes.

In fact, these are common issues across Canada. I had the opportunity to put some 3,000 kilometres on rental cars this summer travelling around the lower mainland of British Columbia and Alberta. I visited many of the members of Parliament from British Columbia, for instance, the members for South Surrey—White Rock—Cloverdale, Kelowna—Lake Country and Abbotsford. All of these members had issues that were very similar to the issues that the member raised. I can assure him that our caucus as well as many other members of other caucuses come to me with these issues and we will act on them for the betterment of the people of Canada.

One of the driving reasons for the introduction of this bill is that this government sees and believes that a modern, effective transportation system is integral to the well-being of Canada's economy. A proper and well planned out transportation initiative across the country, a hub system, as well as a system that has adequate highways and rail will be only good for the people of Canada and we understand that. It contributes to the air industry in Canada that is competitive as well as continental and global markets.

Canada's air industry is a vibrant and dynamic one, as the member knows. It contributes to a prosperous and innovative economy which benefits all Canadians. The air industry in Canada helps drive economic development in all sectors of our society. The Conservative government and the Prime Minister is committed to promoting competition in the air transportation sector because this increases consumer choice to the travelling public and provides better service and pricing.

The government is also committed to regulating only where deemed necessary and advantageous to the Canadian public. The objectives of the proposed air transportation amendments meet this government's commitments to Canadians. This bill provides for technical and housekeeping amendments necessary to modernize the act since it was last amended in 1996. As all members of the House know, the transportation industry is integral to Canada's economy. It is an ever changing environment and we need to stay as good stewards on that, making changes as necessary.
The proposed amendments will also provide a clear role in how the Canadian Transportation Agency will continue to exercise its functions in the future, which is also very important. The proposed legislation offers additional consumer protection to assist Canadian travellers as they continue to make choices respecting travel in Canada and abroad.

I will now speak to the proposed amendments that would enhance the protection of Canadian consumers. Although there were concerns regarding some potential abuses that may have taken place when Air Canada acquired Canadian Airlines in 2000 due to the resulting market dominance of Air Canada, this is no longer the case. In fact, we have seen dynamic changes in the Canadian domestic industry over the last few years, as most Canadians recognize.

The proposed amendments would actually reflect the reality of today's Canadian air industry by returning the agency to its well established regulatory and complaints based function and structure which was in place prior to 2000. The government is committed to regulating only where necessary and where the Canadian public would be best served.

Today I am proud to say that Canada has a world class air system and boasts several well established airlines providing international, national, regional and charter airline services. Airlines such as Air Canada, WestJet, CanJet, First Air, Air North, Air Transat, Air Mikisew, which is actually located in my constituency of Fort McMurray—Athabasca, and many others. All of these companies are providing increased competition and consumer choice in all areas of the country and indeed on the global stage.

I also wish to recognize that new carriers are seeking to enter the Canadian air industry because it is so healthy. These industry carriers propose to offer Canadian consumers additional choice in air travel. This government listens.

The proposed amendments would continue to allow our new and expanding airlines to make their decisions based on private sector commercial realities free of unnecessary legislation that is not providing any benefit to Canadians. The government is committed to letting Canadian air carriers develop and grow based on the merits of the business choices they make.

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The Office of the Air Travel Complaints Commissioner was created in 2000 to review complaints and attempt to resolve the issues informally on behalf of air travellers. The commissioner served as a useful tool during this transition period only to assist consumers with their complaints following Air Canada's merger with Canadian Airlines.

The Canadian air transportation market has dramatically changed even since then. Today the complaints received by the airline agency are distributed more proportionately across Canada's air carriers, including even low cost carriers. Competition in the marketplace is one of the most effective mechanisms to ensure service quality. The government encourages competition for the betterment of Canadians.
Complaints now increasingly relate to matters that fall within the ongoing jurisdiction and mandate of the agency itself. The government recognizes the importance of an ongoing informal complaints process to get results for Canadians. The proposed amendments would therefore make transparent and permanent, like this government, the air travel complaints function. The informal complaints resolution function launched so effectively by the commissioner would be made permanent and would be integrated into the regular operations of the agency. This would be supplemented by the agency's ongoing regulatory responsibilities.

Since the fall of 2004, the agency has demonstrated its continued effectiveness in its ability to handle consumer complaints. Canadians have received results, the same as this government is dedicated to doing. It has consolidated its ongoing informal processes in an air travel complaints program. With this step and the legislative measures proposed, the Canadian public can be reassured that the agency will continue to respond to travellers' complaints in an informal manner and consistent with its ongoing mandate.

The government wishes to ensure that Canadian consumers are offered clear choices in air travel. Where necessary, the government will take on the responsibility of protecting consumers in exercising these choices. The government is aware of consumers' concerns that airfare advertising be clear, transparent and not misleading. Consumers have told us that they want to be able to compare different airline advertised pricing and to know up front how much they will pay for these air services.

Canadian carriers have heard the message. Canadian airlines have taken important steps to respond to consumer demands even so far. However, some consumers remain concerned that price advertisements prepared by air carriers, either in the newspaper or on the Internet or other methods, do not always contain complete or clear price information. This government is listening to Canadians.

Other countries, including the United States, the United Kingdom and Australia have implemented policies, legislation or voluntary mechanisms with the cooperation of the airline industries in order that consumers have sufficient pricing information regarding air travel ads that display their prices. Some provinces such as Quebec and Ontario require transparent advertising of air travel by travel agents and other provincially regulated operators. Canadian consumers have told us that they want a similar level of transparency for advertising by airlines across Canada, and the government intends to do that with the cooperation, of course, of the other parties.

As already noted, Canadian airlines are moving toward improving advertising transparency with the encouragement of the government. These decisions are prompted by past year demands and respond to other dynamic changes in the industry. The government recognizes that market forces will maintain the pressure on air carriers to take further steps to ensure clear and transparent advertising.

It is for this reason that the proposed amendments provide the minister with the ability to authorize the development of regulations for transparency in airfare advertising in all media. These regulations, should they become necessary only, would be enforced by the agency. This would ensure that these standards are consistently applied across the industry by all domestic and foreign carriers and their agents for flights operating within or originating within Canada.

These provisions clearly signal the government's expectations in this regard and put the industry on notice, that notice being to further modify their practices voluntarily as required by Canadian consumers or be regulated by the government.

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In addition, consumers are entitled to know the terms and conditions of the air service before they book a flight. Consumers want that and this government is responding. This is consistent with the government's commitment to ensure the transparency of information to allow consumers to make informed travel choices.

The proposed amendments would require all commercial air operators, both domestic and foreign carriers, operating air services in Canada to promptly display their terms of carriage. That will be necessary at their places of business and on any Internet site, or from wherever else they sell these air services.

These proposed amendments would ensure that Canadian consumers are adequately informed of their rights and the obligations of the air carrier for flights offered as they make choices regarding their travel arrangements. It gives them choices because they know what decisions they need to make.

In conclusion, the proposed amendments reflect the Government of Canada's commitment to a liberalized and competitive air transportation system for the betterment of Canadians wanting to make choices, a system that balances the need to update statutory and regulatory instruments, where necessary, to respond to developments in the air industry marketplace, with the responsibility as well to ensure that consumers, as I have said a few times, are offered choices and options consistent with a fully deregulated market so they know what they are going to buy before they buy it.

We firmly believe that these changes to the Canada Transportation Act are warranted, that they will give the Canadian Transportation Agency the ability to continue to serve the travelling Canadian public well, and will ensure that Canada continues to have a viable and competitive air service industry in the many years to come.

This government listens to Canadians and will act on their priorities.