No. H025/06
For release May 4, 2006
OTTAWA — Amendments to the Canada Transportation Act that focus on balancing
the interests of communities, consumers, commuters and urban transit authorities
with those of air and rail carriers were introduced in the House of Commons
today by Lawrence Cannon, Minister of Transport, Infrastructure and Communities.
"What these changes come down to for Canadians is better transportation
security, more transparency, fewer nuisances such as noise, and a transportation
framework that can better meet future economic and environmental challenges,"
said Minister Cannon. "The proposed amendments will improve the efficiency of
our transportation system and the quality of life of Canadians, particularly in
urban areas."
The proposed amendments will strengthen the transportation sector, advance
environmental objectives and contribute to a stronger economy and society. They
include:
A modernized and simplified National Transportation Policy Statement;
A new provision for the Minister to authorize the development of
regulations for greater transparency in the advertisement of air fares;
Improvements to the policy framework for publicly funded passenger rail
services that will help address urban transportation challenges;
A public interest review process for mergers and acquisitions of all
federally regulated transportation services;
A provision allowing the Canadian Transportation Agency to address railway
noise complaints;
A reduction in the number of members of the Canadian Transportation
Agency, and the formal integration of the air travel complaints functions into
its normal business;
The addition of security to the list of purposes for which transportation
data can be collected, the identification of transportation stakeholders and
parties from whom data can be collected, and the extension of reporting and
reviewing periods;
The transfer of the legislative arrangements for railway police from the
Canada Transportation Act to the Railway Safety Act; and,
Improvements to the grain revenue cap adjustment related to hopper cars to
ensure maximum benefits for western Canadian grain producers.
During the development of these amendments, Transport Canada held
wide-ranging consultations with other federal departments, provincial and
territorial governments, concerned agencies, and stakeholders.
The Canada Transportation Act came into effect in 1996 to modernize the
transportation legislative framework and create the Canadian Transportation
Agency, in place of the National Transportation Agency.
A backgrounder on the Canada Transportation Act and highlights of the proposed
amendments is attached.
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Contact:
Natalie Sarafian
Press Secretary
The Honourable Lawrence Cannon
Minister of Transport, Infrastructure and Communities
(613) 991-0700
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
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BACKGROUNDER
CANADA TRANSPORTATION ACT
The Canada Transportation Act came into effect in 1996 and replaced the
National Transportation Act, 1987; the Passenger Ticket Act; the
Government
Railways Act; and elements of the Railway Act.
It modernized and streamlined rail regulation, promoted the formation of
short-line railways, ensured that shippers continued to have access to
competitive transportation services, eliminated unnecessary regulation in other
modes of transport, and placed greater emphasis on commercial decision-making in
the transportation sector.
A thorough statutory review of the act was completed in 2001, and the proposed
amendments are the culmination of extensive discussions and consultations that
are aimed at updating the legislative framework governing significant components
of our national transportation system.
Highlights of the proposed amendments
A new National Transportation Policy
The act's declaration of a National Transportation Policy provides direction and
guidance in the development of policy instruments, such as regulations,
programs, strategic directions and investments. This new statement outlines
policy principles in a simpler and clearer manner. In particular, it reaffirms
established principles and embraces new ones, such as security and the
protection of the environment.
Clarity in airfare advertising
Canadians should have good information regarding their total airfare when
purchasing airline tickets. The Canadian Transportation Agency may, on the
recommendation of the Minister of Transport, if deemed necessary, make
regulations to ensure that advertising of prices for air services includes
sufficient information to allow the consumer to readily identify the cost of an
advertised airfare.
Air Travel Complaints Commissioner
The position of Air Travel Complaints Commissioner was established as a
temporary measure in 2000, following the acquisition by Air Canada of Canadian
Airlines, to address potential consumer abuses regarding the quality of service
during the transition period.
The Government of Canada proposes integrating the complaints function of the Air
Travel Complaints Commissioner into the everyday operations of the agency, and
eliminating the associated semi-annual reporting obligation. The Canadian
Transportation Agency would continue to be able to apply the existing informal
process in addition to its well established complaints resolution process to
respond to air travel complaints.
Improved framework for passenger rail services
Public transportation services are becoming increasingly important to help
address environmental challenges such as urban congestion, and to improve our
quality of life. The proposed amendments provide the Canadian Transportation
Agency with the authority to decide matters such as compensation and the use of
railway facilities or services when publicly funded passenger service providers
cannot negotiate a commercial agreement. Agreements of this type would be made
public. The amendments would also expand the provisions on railway line
transfers and discontinuances to cover rail corridors in urban areas that could
be used for urban transit purposes.
Railway noise complaints
A large number of Canadian communities are home to railway operations and
disputes can arise over railway noise between residents of these communities and
railway companies. While citizens adversely affected by noise from railway
operations can make a formal complaint to the company or seek civil action
through the courts, no federal body is mandated to regulate railway noise.
Proposed changes to the act authorize the Canadian Transportation Agency to
review noise complaints and, if required, order rail companies to make changes
to reduce unreasonable noise when constructing or operating a railway or rail
yard. The agency must be satisfied that the parties were unable to reach a
voluntary settlement of the dispute on their own.
Transportation data and reporting requirements
Transportation data are important in the design and assessment of transportation
policies and programs and provide a better understanding of changes within the
Canadian transportation market. The proposed amendments to the collection of
data add security to the purposes for which the Minister of Transport can
collect data. They identify stakeholders and parties from whom information can
be obtained. Under the proposed legislative changes, administrative penalties
would be enforced if reporting requirements are not met. These amendments also
provide an extension to the reporting and reviewing periods.
Transportation mergers and acquisitions
Currently, the Canada Transportation Act provisions to review mergers and
acquisitions apply only to the airline industry. Proposed amendments would
expand the scope of revisions to include all transportation undertakings of
significant size under federal jurisdiction. This would mean that the Minister
of Transport would have the ability to review public interest issues arising
from merger or acquisition proposals, as they relate to national transportation.
The Commissioner of Competition would continue to examine competition issues.
Where a concurrent public interest review is requested by the Minister of
Transport, opportunities would be given to the proponent, the Commissioner of
Competition, and the Minister to reach agreement regarding the final structure
and conditions of the transaction, including consent arrangements, before the
Minister makes recommendations to Cabinet.
Railway revenue cap on grain movements
While a cap on railway grain revenues protects western Canadian grain shippers,
the calculation of the cap would be adjusted to take into consideration changes
in maintenance costs for rail cars used in regulated grain movements.
May 2006
