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 amendments are the result of extensive discussions and consultations aimed at updating the legislative framework governing significant components of our national transportation system.
Highlights of the amendments
A new National Transportation Policy
The Act's declaration of a National Transportation Policy provides context for the development of policy instruments, such as regulations, programs and strategic directions. 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 environmental sustainability.
Clarity in airfare advertising
Canadians should have good information regarding their total airfare when purchasing airline tickets. The Canadian Transportation Agency, with the consent of the Governor in Council, would develop 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 has integrated the complaints function of the Air Travel Complaints Commissioner into the everyday operations of the Canadian Transportation Agency. While eliminating the semi-annual reporting obligation, the Act strengthens the reporting requirement regarding air travel complaints by the Agency in its annual report. As a result, the Agency will continue to apply the existing informal process in addition to its well established formal 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 amendments provide the Canadian Transportation Agency with the authority to decide matters such as compensation for the use of railway facilities or services when publicly funded passenger service providers cannot negotiate a commercial agreement with the railway. Agreements of this type will be made public. The amendments 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 and vibrations between residents of these communities and railway companies. While citizens adversely affected by noise and vibrations 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 and vibrations.
Changes to the Act authorize the Canadian Transportation Agency to review complaints about railway noise and vibrations and, if required, order rail companies to make changes to reduce unreasonable noise and vibrations 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 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 legislative changes, administrative penalties will be enforced if reporting requirements are not met. These amendments also simplify annual reporting and require a comprehensive report every five years.
Transportation mergers and acquisitions
Currently, the Canada Transportation Act provisions to review mergers and acquisitions apply only to the airline industry. Amendments will expand the scope of reviews to include all transportation undertakings of significant size under federal jurisdiction. This means that the Minister of Transport now has the ability to review public interest issues arising from merger or acquisition proposals, as they relate to national transportation.
The Commissioner of Competition will continue to examine competition issues. Where a concurrent public interest review is requested by the Minister of Transport, opportunities will 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 will be adjusted to take into consideration changes in maintenance costs for rail cars used in regulated grain movements. The adjustment is estimated to save western grain producers two dollars per tonne or $50 million per year.
September 2007
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