Budget Implementation Act, No. 1, 2023 for Transport Canada
Location: National/TRAN
Issue/Source: Budget bill C-XX tabled on TBD
Date: April 20, 2023
Suggested Responses
Advancing Industry-Driven Supply Chain Digitization
- Canada’s supply chains play a critical role in Canada’s economy and in Canadians’ quality of life. They enable our businesses to move their products to international markets and ensure timely and affordable access to goods that Canadians need.
- While these disruptions are the outcomes of an extreme set of circumstances, moving forward, the global economy is likely to be shaped by trends that could increase the frequency of supply chain disruptions.
- These amendments will enhance Transport Canada’s visibility and ability to plan for and react to disruptions at the national level and enable resiliency and the movement of goods across the entire network.
- The amendments were informed by the findings of an independent Supply Chain Task Force, who through their work and consultations recognized the need for government to continue working with industry to effectively manage the transportation supply chain, including increased data and information sharing
- The proposed amendments to the Canada Transportation Act aim to enhance the sharing of information between the Government of Canada and entities involved in transportation supply chains. The goal of this is to enhance visibility and support evidence-based decision making. This includes:
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- Providing the Minister of Transport the authority to compel certain federally-regulated entities and entities using the federally regulated transportation system to provide information in cases of unusual and significant disruption to the national transportation system or any portion thereof;
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- Provide for an authority to require that federally regulated entities and entities using the federally regulated transportation system share prescribed information with other such entities in a prescribed form and manner while also requiring protection of confidential information; and
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- Ensuring transparency amongst the traveling public allowing customers to be better-informed for their future and/or current travel plans by requiring carriers providing air-transportation-related services to publish relevant performance data on their respective websites making this publicly available.
Improving Air Passenger Rights
- In December 2019, the creation of the Air Passenger Protection Regulations (APPR) provided an important framework of rights for Canadians when air travel does not go as planned, clarifying minimum standards of treatment and compensation that must be provided to passengers based on the level of control an airline has over a flight disruption. Our air sector was incredibly hard-hit by the COVID-19 pandemic. Last summer, as the air sector entered recovery from the pandemic and passenger volumes surged, there were challenges that submitted this new passenger rights regime to a previously unimaginable stress test.
- Protecting the rights of air passengers is a priority of this Government. The creation of the Air Passenger Protection Regulations (APPR) in December 2019 provided an important framework for travellers’ rights in Canada when air travel does not go as planned.
- The lessons learned throughout the pandemic, which began shortly after implementation of the APPR, provided the Government with valuable insight, including areas that needed to be strengthened.
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- The amendments to the Canada Transportation Act would strengthen Canada’s passenger rights regime, streamline the processes for administering air travel complaints before the Canadian Transportation Agency, and increase air carriers’ accountability. These measures would also allow the Agency to recover the cost of air passenger complaints, which would incentivize airlines to address complaints directly.
- Coming Into Force: The new process for resolving air travel complaints would come into force on September 30, 2023, or if it is later, on the day on which the Budget Implementation Act receives Royal Assent and all the complaints, other than the ones in the course of being heard by the Agency, would be transferred to the new process for resolving the air travel complaints.
Extended Interswitching
- This measure proposes to increase the interswitching limit from 30 km to 160 km in the prairie provinces (Alberta, Manitoba, and Saskatchewan), on a temporary basis (18-24 months). Interswitching is a competitive access measure that enables rail shippers to have their cars transferred to an alternate rail carrier at an interchange point near to either their origin or destination, at a regulated rate set by the Canadian Transportation Agency. This gives shippers located near a railway line operated by one railway company access to additional rail carriers. The current interswitching limit is 30 km.
- Temporarily extending the interswitching limit in the prairies is expected to give shippers increased options when it comes to rail carriers and better leverage to improve their rail service and rates, while giving the Government time to evaluate the impacts of the extension.
- The extension of the interswitching limit is a reflection of the Government of Canada’s commitment to strengthening rail-based supply chains, and responds directly to the recommendation of the National Supply Chain Task Force Final Report.
- While the National Supply Chain Task Force called for interswitching to be extended across the country, this more geographically and time-limited pilot will limit the potential for unintended consequences, particularly in the already congested Vancouver-Kamloops and Quebec-Windsor corridors.
Management of Marine Emergencies and the Vessel Remediation Fund
- Safe, clean, and healthy waterways and coasts are essential to ensuring that Canada’s supply chains are running smoothly so that Canadians and businesses can receive food and goods, and that Canada can remain connected with our trading partners. We also recognize that our oceans hold a special place in the traditions and cultures of Indigenous peoples.
- In response to what we have heard from Indigenous groups and stakeholders across all coastal regions and recent marine incidents, we are taking concrete action, both through these proposed legislative amendments and other activities under the Oceans Protection Plan, to help ensure that supply chains are resilient and can support inclusive economic growth, keep our oceans and coasts healthy, advance reconciliation, and build a cleaner future for future generations.
- Aligned with commitments made under the National Strategy to Address Canada’s Wrecked and Abandoned Vessels (part of the Oceans Protection Plan), the federal government is also proposing legislative amendments to create a new Vessel Remediation Fund, financed by vessel owners, to cover the costs of activities to prevent and address certain wrecked, abandoned or hazardous vessels under the Wrecked, Abandoned or Hazardous Vessels Act, and to enhance the enforcement of provisions under the Canada Shipping Act, 2001 related to pleasure craft.
Responsive Points
- Through the Budget Implementation Act, Transport Canada is advancing a number of measures that tackle key concerns by Canadians, such as environmental protection, supply chain resiliency and will ensure that the polluter pay principle is upheld.
Background Information
- Transport Canada has the following items confirmed for inclusion in the Budget Implementation Act, No. 1, 2023:
- Advancing Industry-Driven Supply Chain Digitization
- Improving Air Passenger Rights
- Extended Interswitching
- Management of Marine Emergencies and the Vessel Remediation Fund
- As of April 19, 2023, the timing of introduction for the Budget Implementation Act, No. 1, 2023 has not been confirmed.
- For further information about Budget 2023, please refer to Public Information Card titled, Budget 2023: Investments for Transport Canada (included in this Parliamentary appearance package).