:
Thank you very much, Mr. Chair.
[Translation]
Mr. Chair, thank you for the invitation to meet with the committee today to address our main estimates, and update the committee on the transport, infrastructure and communities portfolio.
As you mentioned, I am joined by my colleague, the Honourable Steven Fletcher, Ms. Lemay from Infrastructure Canada, and Mr. Lévesque. Many members of our team are here, as well, sitting behind us. They are a skilled group that does great work at the Department of Transport.
I wish to thank the committee for its input over the past year relating to various issues, and I look forward to continuing our collaboration.
The main estimates we are addressing today will allow our portfolio to continue to address transportation- and infrastructure-related matters and services.
[English]
This work includes new regulations and legislation, projects to improve our transportation networks and our infrastructure, and programs that ensure the safety and security of transportation in Canada.
I've said it before, but it bears repeating: Canada needs safe and efficient transportation to achieve our government's goals of promoting growth, creating jobs, and supporting the long-term prosperity of Canadians. The economy is our priority, and we remain focused on it.
[Translation]
Given the important role that transportation plays in driving and attracting international trade, it is essential to ensure our economic competitiveness in the world. The funding we seek through the main estimates will help us to achieve this goal.
[English]
Mr. Chair, I know the committee is now very familiar with Bill , the fair rail freight service act, as you are currently studying this important piece of legislation. I would like to thank all members of this committee for your work on this bill over the past number of weeks. Bill C-52 is a very important bill for our government because it strongly supports our economic agenda by ensuring that Canada's rail freight transportation system is well-positioned to support future economic growth, particularly in the resource development and commodity export sectors.
As you know, Bill will amend the Canada Transportation Act to create a backstop that will support commercial negotiations between shippers and railways with respect to service. This will enhance the reliability and predictability of our entire supply chain. The bill gives shippers the right to a service-level agreement with the railways that will define the terms of service a railway will follow to move shippers' goods. If a shipper is unable to negotiate a service contract with the railway commercially, it will be able to trigger a fast and flexible arbitration process through the Canadian Transportation Agency to have a service contract imposed. The bill also provides a strong new enforcement tool, an administrative monetary penalty of up to $100,000 to hold the railways accountable for their service obligations.
It is important to note that almost everyone agrees that since our government started looking into this issue back in 2008, the quality of rail freight service in Canada has improved. Bill is about solidifying and building upon these important gains. As a backstop, it will ensure that shippers have the leverage they need to negotiate service contracts with the railways. The goal is not to replace commercial negotiations; it is to provide the remedy for shippers in the event that commercial negotiations are not successful.
As we draft the bill, we worked very hard to listen carefully to the views of all stakeholders on what is a very complex issue. We have truthfully considered their proposals and we have tabled a bill that strikes the right balance for the entire Canadian economy. That's always been our goal, and I believe we have achieved it.
As I have heard support from all parties around this table for Bill , I encourage this committee to proceed quickly with the conclusion of your study and refer it back to the House of Commons.
Moving on to another legislative initiative, this week we announced two significant measures to ensure that Canada has a world-class tanker safety regime through our safeguarding Canada's seas and skies act.
First, we have introduced legislation to amend the Canada Shipping Act of 2001. Some of the amendments would require certain facilities to submit plans for pollution prevention, emergencies, or any proposed major expansion or conversions to the Minister of Transport, and to empower Transport Canada inspectors to direct facility operators to demonstrate their compliance.
Second, I'm appointing an expert panel to review Canada's current tanker safety system, led by Captain Gordon Houston, former president and CEO of the Vancouver Fraser Port Authority. The panel will review Canada's oil spill preparedness, examine our capacity to respond to spills, and develop a plan for future response.
[Translation]
Finally, while the panel will develop a plan for the future, there are other steps we are taking to strengthen our tanker safety system. We are increasing the number of tanker inspections and aerial surveillance. We are investing in research on marine transportation risks of oil sands products. We are assessing our laws and regulations regarding marine spill liability. And we are engaging communities and first nations on their local emergency response plans.
The Safeguarding Canada's Seas and Skies Act is a good bill, and I am confident it will receive support from all members of Parliament.
Moving on from sea to surface, when I appeared before this committee last November, I noted that plans were proceeding to build a new bridge over the St. Lawrence, in Montreal. With some 60 million vehicles and $20 billion worth of international trade crossing it annually, this bridge is important to both Montreal and the country.
What I can confirm at this time is that the environmental assessment will be completed by the end of 2013 or early 2014. This year, we will move ahead on property and public utilities work to begin building the Nuns' Island temporary causeway, which we will need in order to construct the new bridge.
[English]
We're also working on the Detroit River international crossing. With more than 8,000 trucks per day, the region's Ambassador Bridge is already the busiest land border crossing between Canada and the U.S. The new crossing will provide much-needed border-crossing capacity to handle the anticipated growth in commercial and traveller traffic.
To begin implementation of the project over the next year, Transport Canada will establish the Canadian crossing authority. The department will also start property acquisition in the United States and complete property transactions in Canada. We will begin to reallocate utilities and prepare the Canadian site around the crossing for construction.
[Translation]
Investing in Canada's infrastructure is also a key element of the Government of Canada's plan to create jobs, growth and long-term prosperity for Canadians.
Since 2006, we have made unprecedented investments in thousands of infrastructure projects across the country, despite the systematic objections of the opposition parties. The biggest source of support for these investments has been the Building Canada Fund, which we established in 2007. While most of this fund has been committed to projects, it is important to remember that this funding will continue to flow beyond 2014, as construction continues on major projects we are supporting across the country.
In addition, we doubled the Gas Tax Fund, at $2 billion a year, and in 2011, we made it a permanent source of funding for municipalities. Thanks to our government, communities across Canada will be able to count on stable, predictable funding for their infrastructure needs.
In terms of other infrastructure funding, we are now looking to the future. But we are aware that any decisions must be made in the context of the Government of Canada's current fiscal situation and the capacity of Canadian taxpayers.
We have accomplished much through our investments in infrastructure projects across the country.
[English]
For example, residents in Nipigon, Ontario, recently celebrated the completion of upgrades to their wastewater treatment centre. In Pictou County, Nova Scotia, residents are taking opportunities to get fit and stay active thanks to the recent completion of the Pictou County Wellness Centre. And working together with the Government of Alberta, we have completed 12 important highway infrastructure initiatives that will support economic growth across the province.
[Translation]
Beyond local investments, we fund transportation infrastructure that contributes to trade and economic growth in Canada through our Asia-Pacific Gateway and Trade Corridor Initiative. By ensuring that trade supply chains can move people and goods efficiently, safely and securely between Canada and the rest of the world, we are improving incoming and outgoing North American trade, as well as our competitive advantage in global markets.
[English]
Since 2007, we have announced 39 strategic infrastructure investments in nine provinces under the $2.1 billion gateways and border crossings fund. This includes important initiatives in Atlantic, continental, and Asia-Pacific gateways.
We will continue to advance our gateway and corridor initiatives in partnership with other governments and stakeholders to improve our transportation system's ability to support international trade.
Unlike the opposition parties, we are focused on the economy.
[Translation]
You will note that these estimates indicate that planned operating expenditures for Transport Canada have decreased from 2011-12 to 2012-13. This reduction is mostly the result of savings announced in Budget 2012 and reflects measures the department is implementing to deliver more efficiently on its mandate.
[English]
Let me make something very clear. Transport Canada will continue to regulate, inspect, and oversee Canada's world-class transportation system, and it has taken measures to ensure that its core services remain properly funded and aligned with departmental priorities. These adjustments will not compromise the safety or security of travellers using any modes of transportation in Canada.
[Translation]
Transportation safety and security will remain a core part of Transport Canada's mandate. Canada has one of the safest transportation systems in the world, and the facts demonstrate it. The number of aviation accidents has decreased by 25% since 2000, while air travel has increased significantly.
And since 2007, the number of rail accidents has decreased by 23% and derailments by 37%. Transport Canada continues to emphasize the central importance of safety and security across all modes and to clarify the need for industry to create a culture of safety across air, marine and rail modes of transportation in Canada.
[English]
With these main estimates, we are moving forward with planned reductions in spending from our 2013 expenditures. But we will continue to ensure that the Canadian transportation system remains safe and secure, efficient, and environmentally responsible.
[Translation]
Over the past year, the departments under my portfolio have changed to meet the reductions announced in Budget 2012. We are working to modernize our programs and improve the efficiency of our workforce. Our employees take this challenge seriously and will strive to build greater innovation, efficiency and accountability in the portfolio.
[English]
That concludes my remarks.
I will now invite Minister Fletcher to speak to you regarding our portfolio's crown corporations.
:
Mr. Chair, I am pleased to be here today.
Mr. Lebel, thank you.
[English]
Thank you, Mr. Chair and members of the committee, for the opportunity to speak about the main estimates requested of the three crown corporations in our portfolio.
I will focus on VIA Rail, Marine Atlantic, and the Canadian Air Transport Security Authority, and I welcome the opportunity to explain how these organizations are evolving and how they continue to best serve the interests of all Canadians.
Let's start with VIA. Passenger rail service plays an integral part in our country's economy and transportation system, and our government remains committed to providing Canadians with safe, reliable, and sustainable passenger rail service. We have invested close to $1 billion in VIA to renovate trains, improve accessibility, upgrade tracks, and upgrade stations. Some of those projects have ended, which is reflected in the decreased funding in the main estimates.
These estimates have addressed urgent infrastructure needs. They've helped to improve VIA stations and equipment and to provide faster, more reliable service for travellers across the country.
We have supported improvements in the Quebec-Windsor corridor, and we have contributed to projects that improve the facilities and preserve the heritage features of both Pacific Central Station in Vancouver and Union Station in Winnipeg.
Beyond upgrading the infrastructure, VIA has also introduced innovative new services. Just weeks ago they launched a project that will provide free Canadian entertainment from the CBC and the National Film Board on VIA trains.
As well, we are supporting VIA programs to renew its equipment. In December VIA announced the launch of upgrades to its fleet of F40 locomotives, which are essentially the workhorses of the service. The new engines promise to be both environmentally sustainable and cost-effective, important factors in our transportation system.
VIA is meeting customer demand in the Ottawa-Toronto-Quebec corridor by introducing four new trains per weekday and four more on weekends, for a total of 28 new departures per week. In addition to these changes, there's a direct service between Quebec City and Ottawa to encourage more travel between the two capitals. This new service, which began this past December, could possibly attract 200,000 new passengers annually.
Moving from rail to sea, let's look at Marine Atlantic, which provides the constitutionally mandated ferry service between Nova Scotia and Newfoundland. Given this company's value to Atlantic Canada and the role a strong infrastructure in transportation plays in the region, it is absolutely critical, and our government continues to invest in it. In fact, I took both routes on Marine Atlantic not this summer but the summer past, and it was a thoroughly enjoyable trip on some huge ships. I heard nothing but praise, especially when people compare the new ships with the old ships and the docking, the new infrastructure at the ports versus the old infrastructure. So that's good.
Since 2007 we have supplied funds to support its programs, renew its fleet, and improve its services and facilities. As a result, as I've already mentioned, Marine Atlantic is receiving positive feedback from customers, complimenting both its staff and improved facilities.
With continued support from the federal government, we are confident that Marine Atlantic will continue to improve its efficiency and improve the experience for its customers. This will in turn support growth, job creation, and prosperity in the region.
Just before I conclude, I will talk briefly about the Canadian Air Transport Security Authority. CATSA is responsible for screening air passengers and baggage and for controlling access to restricted areas in our airports. In doing so, it's always looking at ways to improve its service.
This past January, I travelled to Regina to announce a new initiative that is taking place there and in other airports. It will allow those who have NEXUS cards, or people who have joined the NEXUS program for trusted travellers, to pass through air security screening faster and more conveniently. This initiative demonstrates how CATSA and its partners are working to ensure that Canada maintains, as Minister Lebel has already eloquently noted, one of the safest and most secure transportation systems in the world.
Mr. Chair, the three crown corporations I've noted all provide essential services to Canadians and support our world-class transportation system. We are committed to ensuring that they continue to carry out their mandates, and we have taken measures to ensure that core services remain properly funded and aligned with departmental priorities.
We support the efforts they're making, along with the government, to support growth, create jobs, and promote prosperity for all Canadians.
I'd be happy to take any questions.
:
Thank you, Mr. Chair, and thank you to our witnesses.
I want to get down to the crux of the whole process we're working through here. I've heard the estimates being referred to by some of my colleagues as a budget. I'm also seeing a lot of comparisons that are being directly drawn between estimates from 2012 to the estimates we're looking at today. We really run into a problem when we do that. As I understand it, and maybe one of the department officials could correct me if I have this wrong, at a provincial level you have a budget that comes out at the same time as the main estimates of the expenditures and the main estimates in revenues. Those three elements definitely closely correlate to each other, and they have a great correlation for the next year, when you can look at main estimates of revenue, compare it to main estimates of revenue again, and expenditures, in the same fashion.
But federally, by law, we do have some unique situations. We have main estimates that have to be tabled before March 1—by law. What we end up having is main estimates of expenditures that are actually brought forward before the new budget comes out, and these expenditures can only reflect ongoing statutory expenditures or those done through a vote at appropriations. They cannot reflect any spending that's coming in a new budget. Not only may they not, but they cannot, by law, reflect anything that may be anticipated in an upcoming budget—if I have that correct.
They also reflect sunsetting programs that will have run their course and run their term. Any savings identified in Budget 2012 will not have been reflected in the estimates that were tabled last year, on March 1, so any of those savings are also again correlated back into the estimates that we have going forward. We cannot look at what was in estimates for 2012 compared to estimates 2013 because there's a differentiation there, because the budget came out in between, which made changes to that, especially through the draft program.
I guess what I'm getting at is this. I feel any attempt to use these estimates to say that this will be the government's spending over the course of the next year really is fundamentally flawed. We don't know what's going to happen as of Thursday. A lot of what we're looking at today may change in a fairly drastic fashion. It's not like anybody's playing games, or being underhanded, or trying to change things. Simply, by law, these estimates cannot reflect anything that may be in Budget 2013, which will be tabled on Thursday in the House.
I feel it's like trying to compare an apple and an orange, even almost to go from estimates to estimates, never mind trying to compare the estimates that we're looking at today and saying, well, this is what's going to be in the budget for the upcoming year.
Would any of you like to comment on that or say that I'm wrong, or is that correct?