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