:
Thank you very much, Mr. Chair.
Thank you very much to the committee for the invitation to be here today. As you already said, I'm joined by the deputy minister, Louis Lévesque. Also joining me are André Lapointe, the assistant deputy minister of corporate services and the chief financial officer; and Laureen Kinney, the assistant deputy minister for safety and security.
We are very pleased to be here today to address the supplementary estimates (C) for 2014-15, and our main estimates for 2015-16. I'd also like to take the opportunity to update the committee on various matters relating to transportation and, of course, the work of Transport Canada.
Obviously, the matter I consider to be the priority of the government when it comes to transportation is transportation safety. That matter is our ongoing effort to strengthen safety across all modes of transportation. The tragic accident that happened at Lac-Mégantic demonstrated very clearly why safety in preventing accidents has to remain our government's transportation priority. On February 20 of this year, I introduced legislation that, if passed, will make the rail industry and crude oil shippers even more accountable to Canadians. Bill , the new safe and accountable rail act, proposes amendments to the Canada Transportation Act and the Railway Safety Act.
One of the things to do is to develop a new liability and compensation regime for federally regulated railways. This includes minimum insurance requirements, a compensation fund financed by levies on crude oil shippers, increased information-sharing provisions, and stronger oversight powers for the minister and Transport Canada.
I also announced the new railway safety management system regulations, 2015, which will require companies to develop and implement a formal framework that integrates safety into their daily operations.
In marine transportation, we continue to develop our world-class tanker safety system. Under this system we're implementing a comprehensive list of measures that will meet our ongoing commitments to responsibly transport our natural resources and to help protect our marine environment. We'll do this by enhancing our ability to prevent ship-source spills from happening in the first place, and clean them up quickly if they do occur and, of course, ensure that polluters pay.
To give you an example, last fall I announced that we'd provide up to $20 million over three years to Ocean Networks Canada for its smart ocean initiative, which supports the world-class tanker safety system. The funding will allow ONC to transform the oceanographic data it collects into navigational safety information that will help vessel operators and others avoid navigational hazards and prevent marine accidents.
In air transportation as well, safety is our priority. That's why last year Transport Canada took part in the International Civil Aviation Organization, or ICAO, task force on the risks to civil aviation arising from conflict zones. The work that task force carried out in 2014 is truly helping us better understand and address the risks that civilian aircraft face around the world. We also recently took part in ICAO's second high-level safety conference in Montreal, where Transport Canada presented working papers on the regulation of unmanned air vehicles, UAVs or drones, as they're often called. These papers complement the new safety guidelines for UAVs that I announced last fall, as well as a safety awareness campaign to help UAV users, both recreational and commercial, to understand the rules of the sky and always consider safety.
Now, while addressing safety, I would like to provide the committee with an update on our actions relating to the recent tank car derailment in northern Ontario. Transport Canada has inspectors and resources on site. Local first responders are there and are supported by CANUTEC, our 24-hour emergency response centre, whose scientists provide real-time information concerning any dangerous goods being transported. We also put into place and into play our national aerial surveillance team. They're flying over the scene, or they have flown over the scene, to assist the response to the derailment, and we continue to assist the Transportation Safety Board, which is leading the investigation into this incident.
Stepping back from what happened this week, our government has taken a number of actions already to address rail safety in the transportation of dangerous goods. We continue to train and hire inspectors. They carry out more frequent audits. We have removed the least crash-resistant DOT-111 tank cars from service. We require that DOT-111 tank cars that don't meet the new standards that we published this year be phased out within three years.
Also, we require emergency response assistance plans for trains transporting crude oil, gasoline, diesel, aviation fuel, and ethanol. We have developed regulations as well to update tank cars to a new model that requires thicker steel, half head-shield protection, and top-fitting production. Finally, we're working with the United States to develop a new standard of tank car used to transport flammable liquids, and we're expediting this work to harmonize tank car standards in all of North America.
All that being said, we are concerned with the number of derailments that have taken place in this area. We don't know what caused this derailment yet, but we expect that the company will fully cooperate with the Transportation Safety Board in its investigation.
At this point in my speech, Mr. Chair, I would make a request to the committee, if I may. I would like to ask that the committee consider calling CN to appear with regard to the recent derailments in Gogama, Ontario.
Mr. Chair, we continue to work to support Canada's economy. Last March, to address a backlog of grain on the Prairies and get grain moving faster in the short term, we required CN and CP to increase their capacity and carry minimum volumes of grain. Last November our government extended this grain volume requirement for railways until March 28 of this year, so CN and CP have to move minimum volumes of grain, subject to demand and corridor capacity.
We took these measures to support grain transportation and to help maintain the confidence of international customers in Canada as a reliable source of grain. Transport Canada reviews weekly reports on grain volumes that CN and CP submit to ensure that the railways are meeting their requirement.
Our government believes that measures such as these are necessary to help grain shippers move products to market and to maintain Canada's reputation as a world-class agricultural commodity supplier. Given that we are the world's fifth-largest exporter of grain, that reputation is important.
To support the efficient and strong trade that we have with the United States, we are continuing to advance the Detroit River international crossing. Last month I was pleased to confirm that, following significant discussions with both the United States and Michigan governments, Canada agreed to an arrangement regarding U.S. port of entry to ensure that the project proceeds without delay.
Under the terms of this deal, a public-private partnership will help design, finance, construct, operate, and maintain all components of the crossing, including the U.S. inspection plaza. The cost of the U.S. port of entry will be repaid from future toll revenues, and not by Canadian taxpayers. It's an arrangement that is good for Canada, because it allows us to move forward on the project on both sides of the U.S.-Canada border.
What we have achieved with the Detroit River international crossing is a really good example of the kinds of initiatives this government has pursued through our gateways and corridors program. That program was put in place to strengthen our transportation system and our infrastructure to make sure that we're supporting trade, not only here on our continent but with markets around the world as well. The Asia-Pacific gateway corridor initiative has seen an investment by us of about $1.4 billion. By connecting workers with jobs and products with markets, investments like these help our economy remain strong and competitive.
I close, Mr. Chair, by reminding the committee that last June we launched a comprehensive review of the Canada Transportation Act. It's being led by the Hon. David Emerson, and it really is an opportunity to review transportation policy in Canada to see how we can best support growth and how we can increase our domestic competitiveness and our international competitiveness as well.
It has been 14 years since we reviewed transportation policy in this country, and we need to know that we have modern measures for modern times. I'm sure that this review, which is at arm's length, will produce solid recommendations to help map out transportation plans for the future, and I look forward to input the members of the committee may want to make to the review as it continues to advance. These initiatives and the others demonstrate our actions to keep transportation in Canada safe, secure, efficient, and environmentally responsible.
I would conclude on a very personal note by saying thank you so much to the committee and by expressing my gratitude to you for your hard work and your dedication to these transportation files. I look forward to continued input throughout this end of Parliament. I would say that it has been since July of 2013 that we commenced on this road to making sure that modes of transport are safer in this country. I think we have accomplished a lot together, and I know we'll accomplish more.
That concludes my opening remarks, Mr. Chair. I'm happy to take any questions you may have, and if I don't have the specific answer, I will be asking my officials to help out, to make sure we get the right information.
:
It would be my pleasure.
Of course, the review that's being undertaken by Mr. Emerson is at arm's length from us, and that's the way it should be. He has a secretariat, and he has a panel that is receiving submissions from across the country. What I understand is that there have been numerous submissions made, which is good news. Indeed, when I speak at events, I always encourage the stakeholders in the room: if they have an opinion on something, they really should bring it forth. This is our opportunity to take a look at what we currently have and how to change it for the better for the future.
I know that the panel is seized with the issue with respect to grain delivery. I know there are concerns not only about the costs associated with transportation, but with the levels of service as well. We've been through a number of reviews of service levels in the rail system in the past number of years, and we of course passed the bill last year, which was very important too. It added to the tools that I would say shippers have with respect to ensuring that they get good and fair rail service to their place of work.
That said, we still do need to take a look at it in the bigger picture of what other commodities are involved. If you say that there's going to be a minimum volume of one commodity, do the other commodities worry that they're not going to have the same kind of service? We've been balancing those as best we can.
What I look forward to, coming out of the panel's review, the panel's analysis, and some recommendations for the future, is what the system will really look like in a world where we are developing and signing more free trade deals and we want to expand and open up markets. We want to increase the goods that we're shipping out of the country and the goods that we're shipping into the country as well. They're all connected by that rail line. That ribbon of steel is incredibly important, and we want to make sure that whatever we put in place is going to positively enhance our ability to move a good supply chain.
The department as well has some good round tables with respect to commodity supply chains, where we bring the parties together to talk about it. I've met with the Mining Association of Canada. My colleagues have met with the agricultural aspects of the rail shipping lines. We need to continue to come up with the bigger-picture solve on this, and not just try to think where we should be going, but really understand fully where we want to be and get there. I do believe that it's Mr. Emerson and his committee that will help us get there.
You know, I did say that you have to take a closer look at the operations of CN, and that's why I indicated at the front that I think it would be appropriate if the committee were to invite CN in to talk about its operations.
That being said, with respect to the cars, we removed from flammable service those first ones, the DOT-111s, because they didn't have the continuous protection underneath, and I'm glad we did that. So now we have the new standard of car that we expect to be retrofitted to the CPC 1232s. Those are the cars that were involved in this incident. Currently we know that nine of them were ruptured—we don't know for sure, because the Transportation Safety Board has to do its analysis—so it does give us pause. That's why we continue to work on this new standard with the United States, which is a leap forward from what the 1232s are. We're very close to having an idea of what this new standard will be, because certainly industry wants to know what it will be. The means of containment are just one aspect though. I think, as well, operations have to be looked at.
The Transportation Safety Board, in the wake of Lac-Mégantic, gave immediate updates regarding what it felt was going to be needed in terms of the incident and the investigation, and we will wait to see what it says with respect to this derailment. I can tell you that officials have already asked CN for its mitigation plan with respect to moving forward, and it is working out those details right now to ensure that it is looking at all aspects of its operations as well.
I think the best thing I can say with respect to it is that there is a role for operations that are mitigated, and there is a role for making sure that the means of containment are as safe as possible. We are working to set a very strong timeline on the phasing out of the worst of these cars. Three years to move them out as CN retrofits is pretty fast, and, of course, it is taking a look at this new tank car standard as well.
We're going to continue to work on this. In the meantime, CN has to ensure that it's operating as safely as possible, and that it understands what happened in this particular incident, and it has to report on that to Transport Canada. From there we'll take further action if necessary.
:
It would be my pleasure. Thank you very much.
Indeed, as everybody knows, the reason why Canada Post approached us with changing some aspects of their operation was that, fundamentally, they've been delivering 1.2 billion fewer letters than they did in 2006. Indeed, according to our most-up-to-date information, I've been told that we saw another 6% decline in letter mail last year.
As a result, Canada Post has had to take some decisions with respect to how they operate. One of them has to do with the provision and delivery of door-to-door mail and converting to community mailboxes the rest of the households in Canada that currently do not have to go to a community mailbox. They are consulting with communities across the country, it's my understanding, with respect to both the siting of the community mailboxes and how to undertake and ensure that communities are aware of what's going on, for the conversion to go as smoothly as possible.
Canada Post so far is on the right track. They have increased as well in terms of the number of parcels they delivered last year. That said, they still are seeing that incredible gap in revenue as a result of people simply using email as opposed to using letter mail anymore. We continue to monitor it. It is a significant plan that they've put forward. They do need to ensure that they save money, because they have an obligation to operate on a self-sustaining basis under their own legislation. This is the way they said they would get there. We support their five-point plan and we want to make sure the implementation is as easy as possible on the communities.
If I may, I could add one last thing on a topic that Mr. McGuinty had asked me earlier about regarding whether or not I'd be willing to provide information to the committee.
I have had the opportunity to confer with my officials in this last 15 minutes, and we'd be happy to provide the information to the committee, Mr. McGuinty.
Mr. David McGuinty: Outstanding.
Hon. Lisa Raitt: I just needed a moment to ask them, because I don't make promises for other people, unlike you guys.
Voices: Oh, oh!
:
Thank you very much, Mr. Chair.
[English]
Thank you, committee members. It's a pleasure to see all of you again, and I am looking forward to continuing to work with you.
I welcome the opportunity to outline the 2015-16 main estimates for infrastructure, communities, the federal bridges in Montreal, and the economic development agency of Canada for the region of Quebec.
I am joined today, like you said, by senior officials from Infrastructure Canada: deputy minister Louis Lévesque; chief financial officer, Darlene Boileau; associate deputy minister, Yazmine Laroche; Monsieur Marc Lemieux, from CEDQ, I have the honour to be with a lot of people from the department I have the honour to represent.
I am accompanied by these people to show you how we are working hard for the Canadian population. We have achieved a lot since our appearance before this committee this time last year, demonstrating that our Conservative government support for infrastructure remains stronger than ever. This is evident in the efforts put toward implementing the new Building Canada plan, and in our commitment to ensure that the new bridge for the St. Lawrence, one of the leading infrastructure projects in North America, is completed by 2018.
These two initiatives account for the lion's share of our planned spending, and I am pleased that we are here to seek funding that will be applied towards projects supported by these great initiatives.
As you know, the Government of Canada has made unprecedented investments in infrastructure. Since we took office, Canada has consistently ranked at the top of the G-7 in infrastructure investment as a percentage of the GDP. It's quite a contrast from the Liberal years when Canada was sitting at the bottom of the group.
[Translation]
With those record investments, we have been able to reduce the average age of public infrastructure to its lowest level since the 1980s. And with $75 billion dedicated for public infrastructure, we will continue on this momentum. We will continue to invest in key and strategic infrastructure to support Canada's growth and economic development.
Clearly, this investment includes $53 billion over 10 years for the new building Canada plan, the largest and longest federal infrastructure plan in our nation's history.
[English]
It is through this historical plan and under the federal gas tax fund that we will make billions of dollars available to municipalities in 2015 and support thousands of new or existing projects addressing local priorities across the country.
Proponents across the country have begun submitting business cases for review and have started identifying projects for funding under the various components of the plan.
[Translation]
For example, earlier this year, we announced close to $44 million in federal funding for key upgrades to the Port of Montreal under the national infrastructure component of the new building Canada fund.
We have also done a lot of work with our partners under the provincial-territorial infrastructure component.
In fact, projects worth more than $5 billion in total have been identified.
[English]
You may also recall that we have dedicated $1 billion to the provincial-territorial infrastructure component of the small communities fund for projects in communities with fewer than 100,000 residents.
I would now like to draw your attention to one of the largest public infrastructure projects under way in North America, the new bridge for the St. Lawrence corridor project, and how we plan on spending requested funds over the next fiscal year. I would like to take this opportunity to provide a status update on the project.
[Translation]
I am pleased to report that the project continues to progress very well and everything is on track. The year 2015 in particular will be a landmark year with construction to begin in late spring or early summer.
Let me remind you that the project is being carried out as a public-private partnership to ensure that taxpayers receive the best value for money and that the project is on time.
[English]
We are currently in the request for proposals stage. Three eligible consortia provided their technical submissions in mid-February. They have until April 1, 2015, to submit their financial proposals. Once we have these proposals, we will name the project's selected proponent.
[Translation]
Our Conservative government has met all of its timelines in preparation for construction. For instance, in September 2014, we completed the construction of a temporary causeway on Île des Soeurs. Not only was the work completed three months ahead of schedule, but the cost was also $25 million less than anticipated, which once again shows the diligence and excellence of the teams working on the project.
[English]
In January 2015 we also launched major work with Hydro-Québec to move a segment of a transmission line in Brossard to enable construction of the new bridge for the St. Lawrence. We are committed to having the new bridge for the St. Lawrence in service by 2018 and to having the remainder of the corridor project completed by 2020. The project is expected to create 30,000 jobs, and will have a positive impact on the local, regional, and national economies.
Mr. Chair, we are also seeking approximately $1.5 billion to support new or ongoing projects being funded under existing funding programs and agreements. These include projects under the Building Canada fund's major infrastructure component, and for continued work on the Inuvik to Tuktoyaktuk Highway.
[Translation]
Of course, I also have the honour of serving as , so every region in Quebec is served by our department. The Economic Development Agency of Canada's mandate is to support the economic growth of every region of Quebec, and we spare no effort in doing so.
With your permission, I will give you a few examples and present a few figures which clearly illustrate the Economic Development Agency of Canada's activities since 2006. We are talking about 5,326 projects funded, nearly $2.5 billion paid out in contributions by the federal government, and more than $9 billion in total planned investments with partners.
[English]
The priority of our Conservative government remains job creation, economic growth, and long-term prosperity. CEDQ's action is very much aligned with it. The department encourages the start-up and growth of businesses by helping them to become more competitive, more productive and innovative, and to get access to new markets. CEDQ also assists regions of Quebec that are seeking to mobilize and attract new investments that will increase their prosperity. CEDQ is present in every region of Quebec through its 12 offices, but it also has more particular focus on regions experiencing slower economic growth.
CEDQ's advisers are in direct contact with SMEs, key economic actors, and organizations to offer them guidance and financial support. Through its main funding program, the Quebec economic development program, CEDQ also contributes to strengthening the economy of communities and regions that face specific issues through targeted and time-limited help.
CEDQ maintains its efforts to support affected communities through the Canadian initiative for the economic diversification of communities reliant on chrysotile, launched in June 2013 with $50 million budgeted over seven years. That's over seven years; for sure we'll see this part in the budget again, because it's over seven years. It's to help out communities and businesses in
[Translation]
the Appalaches and the Sources RCM.
[English]
So far 17 projects have received funding; $6.5 million has been spent; $25 million more is currently projected to be spent; and $19.5 million will be reserved for this region in future. Our team is still working on the ground day to day.
[Translation]
In July 2013, following the disaster in Lac-Mégantic, we launched an economic recovery initiative for the economic revitalization and reconstruction of the town.
With an envelope of $35 million over seven years, the initiative includes the following three components: reconstruction assistance of up to $20 million; up to $10 million in direct assistance to businesses and NPOs; and assistance in the form of two investment funds of up to $5 million, managed by the Mégantic region Community Futures Development Corporation (CFDC).
I repeat, we are talking about $35 million over seven years. You will see this again next year, because not all the money will be invested this year. We are talking about next year, but we know that if the money that was supposed to be spent has not been used, there is a seven-year period. I am sure I will hear about it again, but that being said, we are talking about seven years.
To date, 16 projects have received funding. Over $15 million has been paid out in contributions for planned investments of nearly $35 million. Of course, the two program investments will be invested in the regions for which the money had been earmarked. A dedicated team is on site and is working closely with local partners to make sure that their needs are clearly understood, to guide them through the economic development process and to identify potential funding options.
In light of the false information circulated recently, I would like to stress once more that the funds are spent or carried over to subsequent years based on needs. The funds carried over are primarily from projects whose scope or timeline was below the forecast, projects that extend over several years.
[English]
I'm very proud of our progress in building infrastructure projects that are delivering real results for Canadians. The officials I have the honour to work with and I will be pleased to answer your questions about any aspect of our main estimates that will enable us to continue this record of achievement.
Thank you very much, Mr. Chair.
[Translation]
Welcome to the committee, Mr. Minister.
[English]
Mr. Minister, I'd like to start by recalling an exchange we had about a year ago on March 25, 2014. I asked you if there was any new money with respect to the estimates. Mr. Lévesque responded that it was not in the estimates. I replied, is there no new money on April 1? You replied, Minister, no, it is not in the estimates.
This year you brought us estimates of $3.6 billion—down from roughly $3.7 billion last year—when infrastructure needs in Canada are soaring, when overpasses and roads are falling on the heads of people living, for example, in
[Translation]
the beautiful city of Montreal.
[English]
The old Building Canada fund had grown to about $1.6 billion a year for community infrastructure projects, but now the funding has dropped off a cliff. This is undeniable. It's falling by close to 90% to just $210 million per year, starving municipalities of much-needed cash.
It won't recover for five years. You know that. We know that. It's punted into a political never-never land and we know why, Minister, because it's a political decision, and governments make political decisions. Fair enough. But your government has made a decision in an attempt to balance a budget and make reckless spending promises with respect to income splitting, for example.
You have done nothing, or little, or not as much as you could have, to generate economic growth, create jobs, and help middle-class families.
How do you explain this?
:
Thank you very much, Mr. Minister, Ms. Laroche, Mr. Lévesque, and Ms. Boileau. We are out of time, and the committee agreed at the start of the meeting to leave a couple of minutes at the end to deal with the estimates. Thanks again, and I'm sure we'll see you back before the committee at some time in the future.
With that, members, do I have the unanimous consent of the committee to call all the votes on the supplementary estimates (C) together?
Some hon. members: Agreed.
ç
Vote 1c—Operating expenditures..........$5,327,913
ç
Vote 10c—Grants and contributions.....................$1
(Votes 1c and 10c agreed to)
WINDSOR-DETROIT BRIDGE AUTHORITY
ç
Vote 3c—Payments to the Windsor-Detroit Bridge Authority..........$2,403,354
(Vote 3c agreed to)
The Chair: Shall the chair report the votes on supplementary estimates (C) to the House?
Some hon. members: Agreed.
The Chair: Do I have the unanimous consent of the committee to call all the votes on the main estimates together?
Some hon. members: Agreed.
ç
Vote 1—Payments to the Canada Post Corporation for special purposes..........$22,210,000
(Vote 1 agreed to)
CANADIAN AIR TRANSPORT SECURITY AUTHORITY
ç
Vote 1—Payments to the Canadian Air Transport Security Authority for operating and capital expenditures..........$678,420,347
(Vote 1 agreed to)
CANADIAN TRANSPORTATION AGENCY
ç
Vote 1—Program expenditures..........$24,313,366
(Vote 1 agreed to)
ç
Vote 1—Payments to Marine Atlantic Inc...........$19,384,000
(Vote 1 agreed to)
OFFICE OF INFRASTRUCTURE OF CANADA
ç
Vote 1—Operating expenditures..........$59,796,691
ç
Vote 5—Capital expenditures...............$24,652,150
ç
Vote 10—Contributions....................$1,569,894,628
(Votes 1, 5, and 10 agreed to)
THE FEDERAL BRIDGE CORPORATION LIMITED
ç
Vote 1—Payments to The Federal Bridge Corporation Limited..........$35,281,996
(Vote 1 agreed to)
THE JACQUES-CARTIER AND CHAMPLAIN BRIDGES INC.
ç
Vote 1—Payments to The Jacques-Cartier and Champlain Bridges Inc...........$368,737,000
(Vote 1 agreed to)
ç
Vote 1—Operating expenditures..........$551,124,773
ç
Vote 5—Capital expenditures...............$106,911,344
ç
Vote 10—Grants and contributions.......$683,312,718
(Votes 1, 5 and 10 agreed to)
ç
Vote 1—Payments to VIA Rail Canada Inc...........$330,077,000
(Vote 1 agreed to)
WINDSOR-DETROIT BRIDGE AUTHORITY
ç
Vote 1—Payments to the Windsor-Detroit Bridge Authority..........$58,469,905
(Vote 1 agreed to)
The Chair: I have unanimous consent. Shall the chair report the votes on the main estimates to the House?
Some hon. members: Agreed.
The Chair: Just before we break, I'll note that we will have one hour of committee business on Thursday. For the second hour, we had a request from a delegation from Ghana, as you know, to come before the committee. However, they can't do it that day, so we'll just have a one-hour meeting. I believe they cancelled just today. It's out of our control. Thursday's meeting will be a meeting of the full committee.
Thank you very much.
The meeting is adjourned.