Bill C-52, the Enhancing Transparency and Accountability in the Transportation System Act

Location: National

Key messages:

  • The last few years have been difficult on transportation systems here in Canada and around the world. The changes proposed in Bill C-52 would ensure Canada’s transportation sector remains a world-leader in efficiency, accessibility, transparency, and accountability.
  • The proposed actions for Canada’s airports would focus on enhancing the amount of information shared by airport operators with not only the Minister of Transport, but also with the general public when considering changes to flight paths, the environment, and diversity, as well as allowing the establishment of a regime related to service standards.
  • Canada Port Authorities are federally incorporated, non-share corporations. They operate at arm’s length from the federal government. The new rate-setting principles would provide port users and stakeholders a better understanding of how the ports set their fees, and the associated public notice requirement would provide a consultation process for them to raise their concerns with the ports. 
  • The Bill would enable the Government of Canada to create regulations for alternative dispute resolution regarding leases for port terminals and allow the Canadian Transportation Agency to recover costs for rate-setting and dispute resolution provisions.
  • The Auditor General’s 2023 report on accessible transportation for persons with disabilities showed a need for data on key accessibility metrics in order for the Government to act appropriately and quickly on issues impacting barrier-free transportation.
  • The measures in this proposed legislation would help create a more accountable, transparent, and accessible national transportation system that meets the needs of Canadians.

Summary of Issue / Background:

  • The COVID-19 pandemic has had significant impacts on the transportation system in Canada and around the world.
  • On June 20, 2023, the Minister of Transport introduced Bill C-52, An Act to enact the Air Transportation Accountability Act and to amend the Canada Transportation Act and the Canada Marine Act. The changes proposed in Bill C-52 would ensure Canada’s transportation sector remains a world-leader in accessibility, transparency, and accountability.
  • Part 1 enacts the Air Transportation Accountability Act, which creates a statutory framework to increase transparency and accountability in the air transportation sector by:
    • Establishing requirements respecting the provision of information to the Minister of Transport by airport operators, air carriers, and other entities;
    • Requiring airport operators take measures to help Canada meet its international obligations;
    • Establishing requirements in respect to noise management committees, and consultation and notice provisions where changes to airspace are being considered;
    • Sets requirements for airport authorities to create plans respecting climate change mitigation and adaptation, including GHG emission reduction targets;
    • Ensuring airport authorities publish information respecting diversity among directors and senior management; and
    • Authorizes the creation of regulations respecting service standards for air transport
  • Part 2 amends the Canada Transportation Act to help achieve a barrier-free Canada for persons with disabilities. Transportation service providers would have to collect and provide accessibility data to more quickly identify barriers in the system. Enhanced data collection and reporting requirements will help Transport Canada:
    •  Assess the industry’s effectiveness in addressing accessibility matters; and,
    • Assess the Agency’s performance in helping resolve disability-related complaints.
  • Part 3 amends the Canada Marine Act to provide greater transparency on how ports set their fees. This will require Canada Port Authorities to follow certain principles when establishing or changing their fees. It would also create a process for port users and tenants to challenge a new or revised fee through the Canadian Transportation Agency.
  • The proposed legislation would require airport authorities with at least four million passengers per year for each of the last three consecutive years to develop five-year climate change mitigation and adaptation plans, which would include a greenhouse gas emission reduction target.
  • It will also introduce reporting requirements relative to equity, diversity, and inclusion at the 18 federally incorporated airport authorities, to help ensure that directors and senior management of these entities are reflective of Canadian society. The provisions are consistent with those in the Canada Business Corporations Act.
  • Bill sections regarding provision of information to the Minister and international obligations are primarily administrative in nature, to ensure that airport operators act appropriately when required.  Airport authorities have obligations regarding international obligations in their leases, but there are several airports without leases that have international flights but do not have similar obligations. The provisions were not created to address an immediate urgency.
  • New regulations to be developed would specify which airport operators and airlines would be required to develop standards. In addition to airports and carriers, this could include NAV CANADA and the Canadian Air Transport Security Agency. Ground handlers, such as baggage handlers or refuellers, and other services, such as de-icing, could either be included directly or through requirements on the entity that hired them.
  • It is proposed that the primary enforcement mechanism would be an obligation to publish standards and compliance with those standards. The precise publishing obligations would be established in the regulations. Failure to publish in accordance with the requirements could lead to the application of administrative monetary penalties.
  • The Bill has completed the first reading and is currently at the second reading in the House of Commons.