Minister Garneau’ appearance at TRAN on the Supplementary Estimates A on June 16, 2020 and the Committee of the Whole meeting on June 17, 2020

From: Transport Canada

Speaking notes for the Honourable Marc Garneau, Minister of Transport regarding 2020-2021 Supplementary Estimates A for Transport Canada and other agencies and crown corporations – House of Commons, Ottawa, Ontario.

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2020-2021 Supplementary Estimates A

Speaking notes for the Honourable Marc Garneau, Minister of Transport

Thank you, [Mister] Chair, for the invitation to present and discuss Supplementary Estimates A for Transport Canada and the federal agencies and Crown corporations in the transportation portfolio.

I am pleased to be joined today by:

  • [Michael Keenan; Deputy Minister of Transport];
  • and [Ryan Pilgrim, Assistant Deputy Minister, Corporate Services, and Chief Financial Officer, Transport Canada].

I would like to preface my remarks today by noting the significant impact of the COVID‑19 pandemic on the transportation sector here in Canada, and around the world.

On behalf of all Canadians, I want to thank the transportation workers who help ensure the steady flow of essential goods and services during the COVID‑19 crisis. This includes truck drivers, flight and train crews, air traffic controllers, dock workers, and many more.

Transport Canada strives to be transparent. This is why the department links each grant and contribution vote to its purpose. The Supplementary Estimates A, now before Committee members, include a summary of incremental financial requirements, as well as an overview of major funding requests and horizontal initiatives.

Transport Canada continues to foster a modern, leading-edge transportation system that will support Canada's growth for years to come. Canada must be ready for new technologies, such as connected and automated vehicles.

And when new technologies can help us promote cleaner, more efficient modes of transportation, we must be ready to integrate them.

To this end, the Supplementary Estimates A include 47.8 million dollars to extend the Incentive for Zero-Emission Vehicles Program. Originally announced in Budget 2019, this program will help achieve key targets for new light-duty vehicles in Canada – 10 percent by 2025, 30 percent by 2030, and 100 percent by 2040.

Two items relate to VIA Rail. Our national passenger rail carrier aims to provide a safe, secure, efficient, reliable, and environmentally sustainable service. In addition to service through the Québec-City-to-Windsor corridor, and long-haul service between Toronto and Vancouver, and between Montréal and Halifax, VIA Rail also serves many regional and remote communities. For some of these communities, VIA Rail is the only year-round transportation option.

The Supplementary Estimates A request 264.6 million dollars to ensure that VIA Rail continues to operate reliably and to maintain its capital assets adequately.

The second item for VIA Rail relates to proposed high-frequency rail service in the Québec-City-to-Windsor corridor. The Supplementary Estimates A include 14.7 million dollars for research and preparatory work related to the proposal. Of this amount, VIA Rail requests 12.8 million and Transport Canada requests 1.8 million. This work is important, to consider how the high-frequency network would complement and operate in tandem with other rail services in the corridor.

The Canadian Air Transport Security Authority is seeking 309.4 million dollars to help ensure that air travellers and workers at airports are effectively screened. This funding will support increased use of full-body scanners, as well as other initiatives.

In Budget 2019, the Government of Canada announced its intention to introduce legislation that would enable Transport Canada to sell the assets and liabilities of CATSA to an independent, not-for-profit entity. To this end, the Supplementary Estimates A include 2.8 million dollars to support negotiations for the transition.

The final item I will highlight is the request for 84.9 million dollars for Marine Atlantic. A Crown corporation, Marine Atlantic operates ferry services on two routes between the provinces of Nova Scotia and Newfoundland and Labrador.

[Mister] Chair, I believe the items I have outlined today demonstrate the direction that the Government of Canada is pursuing to keep transportation in this country safe, secure, efficient and environmentally responsible.

I value input from Committee members, and I look forward to continuing our work, to strengthen our transportation system and build a strong future for Canada.

Thank you.

Transport Canada's actions in response to COVID-19

Location: Ottawa

Issue/source:

Date: June 5, 2020

Suggested responses

  • Since the onset of the pandemic, Transport Canada has taken a range of actions to protect Canadians from the risk of COVID-19, while keeping essential cargo and people moving.
  • Specifically, Transport Canada has implemented more than two-dozen measures, including regulatory actions, interim orders, and guidelines to mitigate the spread of the virus. These measures include, for example, requirements for wearing face coverings, health checks for passengers, and allowing passengers to remain in their vehicles on ferries.
  • Transport Canada has created a dedicated web portal to provide Canadians with the latest information on the actions and guidance to protect travellers and everyone involved in the transportation system.
  • As we look to reopening the economy, Transport Canada is maintaining constant dialogue with industry stakeholders on the technical and strategic considerations of increased traffic, and these conversations will continue.

If pressed

  • Air Transportation: A significant amount of Transport Canada's response to the pandemic has been related to air travel. For example, one of the first actions was to limit most international commercial inbound flights to four Canadian airports. Other actions include:
    • Health checks for passengers;
    • Measures to deny boarding in support of the border closures; and
    • Requirements for face coverings for workers and passengers when physical distancing is not possible.
  • Marine Transportation: There have been significant impacts across the transportation system as a result of the pandemic, particularly for cruise ships. The start of the cruise ship season has been deferred until at least October 31, 2020 for cruise ships with overnight accommodations allowed to carry more than 100 people. Other actions include:
    • Pleasure craft and passenger vessels with capacity to carry more than 12 people will be prohibited from entering into Arctic coastal waters until at least October 31, 2020; and
    • Guidance has been issued recommending that marine transportation workers and passengers wear a face covering when physical distancing is not possible.
  • Surface Transportation: Extensive measures are in place to protect travellers and workers safety in the rail and road transportation sectors. Actions include, for example:
    • Health checks are required before boarding rail carriers;
    • Rail companies are authorized to deny boarding to ensure the safety of their operations;
    • Guidance has been issued for rail carriers, commercial vehicle operations, intercity bus operations, and school bus fleets, with respect to face coverings and personal protective equipment.
  • National Trade Corridors Fund: This $2.4 billion fund is a key component of the Investing in Canada Plan, which is supporting improvements in trade corridors. Provincial and territorial governments, Indigenous groups, private sector stakeholders, not-for-profit organizations, and crown corporations have been invited to submit proposals to Transport Canada.

Background information

  • In response to the COVID-19 pandemic, Transport Canada and the transportation industry have implemented a number of preventative measures, including regulations and guidance, to protect Canadians and those working in the transportation sector. All of the department's work is informed by the latest Public Health Agency of Canada guidance.
  • Transport Canada has created a dedicated Web portal to provide Canadians, including transportation stakeholders, with the latest information on the actions the department has taken to protect Canadians from the risk of COVID 19. During the pandemic, communications has focused on the health and safety of travellers, crews, and Canada's transportation system, ensuring the continued flow of food and essential supplies that Canadians need to remain healthy.
  • Transport Canada has implemented a series of interim orders, guidelines, exemptions and other measures across modes in support of the Government's efforts to limit transmission of the virus and support a safe re-opening of the economy. In particular, the following actions have been taken:  

Multi-Modal

  • Transport Canada developed a shared federal and provincial/territorial definition of essential transportation workers and services required to support the continued movement of goods and people.
  • On June 2, 2020, the Council of Ministers responsible for Transportation and Highway Safety approved the FPT Guiding Principles for Risk Reduction and PPE in the Transportation System (PDF, 184 KB), which provides guiding principles for the use of masks, gloves, and safety protocols for transportation employees and passengers.

Aviation

  • Interim Order to prevent certain persons from boarding flights to Canada due to COVID-19, No. 7 2020-04-30
  • Interim Order to prevent certain persons from boarding flights in Canada due to COVID-19, No. 4 2020-04-30
  • COVID-19: Guidance material for air operators managing travellers during the check-in procedure at transborder (U.S.) airports 2020-04-27
  • COVID-19: Guidance material for air operators managing travellers during the check-in procedure for flights departing from an aerodrome in Canada 2020-04-27
  • COVID-19: Guidance material for air operators managing travellers during the check-in procedure at international airports 2020-04-27
  • COVID-19 Guidance for the Canadian aviation industry with respect to managing ill passengers 2020-04-20
  • Aviation measures in response to COVID-19 (i.e. letter to aviation industry, identifying essential services) 2020-04-02
  • COVID-19: Interim health guidance for private and commercial air operators and crew members 2020-03-30

Marine

  • COVID-19 guidance posters for marine transportation, 2020-04-29
  • Regulations Maintaining the Safety of Persons in Ports and the Seaway: SOR/2020-54- 2020-03-18
  • Measures to mitigate the spread of COVID-19 on passenger vessels and ferries - SSB No.: 12/2020, 2020-04-17
  • COVID-19: Guidance material for passenger vessel and ferry operators, 2020-04-06
  • Ship Safety Bulletin 10/2020 - Guidance regarding the mobility of asymptomatic marine sector workers during the COVID-19 pandemic 2020-04-03

Rail

  • Order under Section 32.01 of the Railway Safety Act due to COVID-19, No. 2, 2020-04-30
  • COVID-19: Guidance material for passenger railway companies - managing travellers during the on-boarding procedure including a recommendation on face coverings – 2020-04-17
  • Guidance Poster: Face Covering for travellers, 2020-04-17
  • Order under Section 32.01 of the Railway Safety Act due to COVID-19, 2020-03-27
  • COVID-19: Guidance material for managing rail passengers during the health check requirement, 2020-03-27
  • Guidance Poster: Travelling by Rail in Canada? COVID-19 New Restrictions, 2020-03-27

Road

  • Guidance Personal Protective Equipment and their uses by Commercial Vehicle Drivers, 2020-05-06
  • Supplementary Guidance: Personal Protective Equipment and their uses by Commercial Vehicle Drivers, 2020-05-06
  • Guidance Poster: Face coverings for intercommunity bus, and motor carrier passengers, 2020-04-24
  • Guidance Document: Considerations relating to the use of face coverings by commercial vehicles drivers and motor carrier, and intercommunity bus passengers, 2020-04-17
  • Guidance Document: Federal safety guidance to protect drivers and limit the spread of COVID-19 in commercial vehicle operations, 2020-04-02

Transportation of Dangerous Goods

  • Temporary Certificate:
    • TU 0752: Hand sanitizer,
    • TU 0753: Canada Post Corporation authorization - Shipping hand Sanitizer by air,
    • TU 0754: Transporting hand sanitizer by air 2020-04-15

Border strategy

Location: National

Issue/source: The Government of Canada's strategy with respect to the safe re-opening of borders

Date: June 5, 2020

Suggested responses

  • Public Safety Canada, in cooperation with the Public Health Agency of Canada, is the Government of Canada lead for developing a strategy to re-open Canada's borders in a safe manner.
  • We have put in place a multi-layered system to keep travellers and transportation workers safe, including requirements and guidance for:
    • health checks for COVID symptoms;
    • mandatory face coverings for passengers and non-passengers;
    • guidance for operators and carriers on hygiene and sanitization protocols, physical distancing, personal protective equipment and other controls; and
    • significant public and industry outreach and communications efforts.
  • As we look to reopen our borders, my officials and I continue to work closely with industry stakeholders to develop the measures required to ensure a safe and sustainable transportation system that supports the restart of the Canadian economy and a return to a more normal life for Canadians.

Background information

  • During the COVID-19 pandemic, the department has had to respond quickly to ensure Canadians can remain safe, while supporting the ongoing flow of critical goods across the country.
  • As we prepare for to reopen our borders, Transport Canada and the transportation industry have introduced measures, as an extra layer of protection, to reduce the risk of spreading COVID-19 and to help Canadians feel confident that they are protected when travelling.
  • These measures, issued in a combination of mandatory orders and guidance, includes (but is not limited to):
    • The wearing of face coverings / non-medical masks for air passengers and some flight crew and airport workers.
    • Guidance for workers in the marine transportation sector to have in their possession a face covering, and recommend that face coverings be worn using a risk-based approach specific to the unique circumstances of the workplace, when physical distancing cannot be maintained, and/or when local authorities require it.
    • Guidance that requires rail operators to notify passengers that they will be asked to wear a face coverings when physical distancing of two meters from others cannot be maintained, or as requested by rail operators.
  • For the air sector in particular, the department is exploring how emerging technologies (such as touchless/contactless processes) can be leveraged in collaboration with industry partners to promote biosafety throughout the traveller's journey. The goal of this work is to further mitigate concerns about the risk of COVID-19 in the aviation system and support the economic recovery of the Canadian aviation sector.
  • Transport Canada continues to consult extensively with industry partners, including airports and air operators in order to inform its work in this area and to ensure stakeholders and travellers have clear visibility on border management before, during and after arrival.

Government financial support for the air sector

Location: Ottawa, ON

Issue/source:

Date: June 8, 2020

Suggested response

  • The Government of Canada has put in place a number of financial support measures for all sectors of the economy during the COVID-19 crisis, including the Canada Emergency Wage Subsidy, the Business Availability Credit Program  and, most recently, the Large Employer Emergency Financing Facility.
  • For the air sector, the Government has provided rent relief from March to December 2020 for the 21 airport authorities that have ground leases with the federal government, as well as comparable treatment for Ports Toronto, which operates Billy Bishop Toronto City Airport.
  • Funding of up to $17.3 million was also provided to the governments of Yukon, Northwest Territories, and Nunavut to support northern air carriers in providing essential goods and services to remote fly-in communities.
  • The Canadian Transportation Agency also implemented temporary exemptions to certain requirements of the Air Passenger Protection Regulations that apply from March 13, 2020 until June 30, 2020, as the air sector responds to the current crisis, and Transport Canada has offered an extension on reporting requirements for performance data regulations.

If pressed

  • The Government of Canada recognizes the significant impact COVID-19 has had on the air sector. Transport Canada and other government departments are working with airlines and airport authorities to understand the magnitude of the crises has had on their operations and what it means for the future of Canada's air sector.

Background information

  • The air sector has been severely impacted by COVID-19, as passenger volumes decreased by 97% as compared to the same period in 2019. The sudden elimination of passenger traffic due to public health restrictions has caused a significant decline in revenue for both air carriers and airport authorities, who have raised serious concerns about their ability to stay afloat during the crisis.
  • It is expected that COVID-19 will have a much deeper impact and longer impact on the air sector than 9/11 and SARS combined. As a result, air carriers, airport authorities and NAV Canada have requested additional support from the Government, over and above the economic measures announced to date.
  • The Canada Emergency Wage Subsidy was created to support employers, including airlines, impacted by the COVID-19 pandemic. It covers 75% of an employee's wages – up to $847 per week - for employers of all sizes and across all sectors who have suffered a drop in gross revenues of at least 15% in March, and 30% in April and May. The program was originally put in place for a 12 week period, from March 15 to June 6, 2020 and was recently extended until August 29, 2020. Air Canada, WestJet and Air Transat have taken advantage of this program.
  • The Business Capital Availability Program, delivered through Export Development Canada and Business Development Canada, provides financial support to Canadian businesses through credit solutions (loan guarantees, commercial loans, etc.).
  • The Large Employer Emergency Financing Facility will provide support to eligible employers with annual revenues of more than $300 million whose credit needs aren't being met through conventional financing, which also applies to airlines.

Rent relief for transport canada tenants

Location: National

Issue/source: Rent relief for Transport Canada tenants and license holders who have been impacted by the COVID-19 pandemic

Date: June 5, 2020

Suggested responses

  • The COVID-19 pandemic has financially impacted tenants located at Transport Canada owned and operated ports and airports and at the Pickering Lands.
  • Beginning in April, Transport Canada offered rent relief in the form of 90-day rent deferrals to all tenants and license holders who were affected by the impacts of COVID-19.
  • The Government of Canada subsequently announced the Canada Emergency Commercial Rent Assistance Program in May 2020.
  • To achieve a similar benefit for its own tenants, Transport Canada will provide rent relief in the form of a 75 per cent reduction in gross rent payable for three months to commercial tenants who apply and meet a number of eligibility requirements. This is in keeping with guidance from the Treasury Board Secretariat to all federal departments.

If pressed

  • Transport Canada has previously issued letters to all tenants and license holders to advise them of the option to defer rent. Since April, 48 requests have been received, the majority of them being from commercial tenants.
  • Approximately half of the deferral requests received to date have been approved. Some requests were not eligible for a deferral, while others are still under analysis by Transport Canada officials. Repayment of deferred amounts will be amortized over the remaining term of the lease without penalties or interest.
  • Until applications for the new rent reduction program are received from commercial tenants, the impacts on Transport Canada's rental revenue are unknown.

Background information

  • Transport Canada (TC) has a number of tenancy agreements across Canada (over 600), largely at its airports and port facilities and the Pickering Lands. Most of TC's leases are commercial, with some residential. The majority of residential leases are at the Pickering Lands.
  • TC's tenants have been impacted to varying degrees as a result of the COVID-19 pandemic. The operations of some tenants were able to continue (i.e. at some commercial ports) while the operations of others have completely ceased due to government restrictions and safety measures (i.e. at airports).
  • As early as March 2020, some tenants approached TC to inquire about rent relief measures due to COVID-19 impacts.
  • Initial guidance from Treasury Board Secretariat was to issue short-term rent deferrals, with repayment to be amortized over the remaining term of the lease. Consistent with this guidance, TC issued letters to all tenants along with an application form. As of the beginning of June 2020, 48 deferral requests have been received and about half of those have been approved.
  • On April 24, 2020, the Prime Minister announced details regarding the Commercial Rent Assistance (CECRA) program. Full details on the program and eligibility were released on May 20, 2020. CECRA is managed by the Canada Mortgage and Housing Corporation and offers unsecured, forgivable loans to eligible commercial property owners to:
    • reduce the rent owed by their impacted small business tenants
    • meet operating expenses on commercial properties

    To receive support from CECRA, commercial property owners must offer a minimum of a 75% rent reduction to tenants for the months of April, May and June 2020.

  • To provide the same benefit as CECRA to federal tenants, the Treasury Board Secretariat has issued guidance for federal landlords – to provide rent relief to eligible commercial tenants who apply in the form of a 75 per cent reduction in gross rental payments for the months of April, May and June 2020.
  • Under the rent reduction program, an eligible tenant is a for-profit, not-for-profit, or charitable organization that:
    • pays gross monthly rent not exceeding $50,000 per property;
    • generates no more than $20M in consolidated gross annual revenues calculated on a consolidated basis (at the ultimate parent level) and based on financial revenue for 2019;
    • has experienced a 70% drop in pre-COVID revenues;
    • has been, and will continue to be, committed to its lease term and to the lease amendment for rent reduction;
    • has availed itself of any insurance proceeds and rental support programs (amounts claimed may be adjusted accordingly); and
    • provides an attestation to the Landlord supporting all of the above eligibility criteria.
  • Eligible commercial tenants will have until August 31, 2020, to submit their attestation form to TC officials for consideration. Approved reductions will be formalized through an amending or supplemental agreement before December 31, 2020.
  • As this measure is aligned with the CECRA program being administered by the Canada Mortgage and Housing Corporation, any changes or extensions to the CECRA program (e.g. a further extension of the relief period) will likely be subsequently mirrored in the treatment of federal tenants. TC will continue to follow guidance issued by TBS to federal landlords.
  • The 75 per cent reduction is only available for commercial tenants. However, TC will continue to offer flexibilities to residential tenants who have been financially affected by the impacts of COVID-19 in the form of 90-day deferrals.

Small airports and small air carriers

Location: National

Issue/source: Support for small airports and small air carriers due to impacts from the COVID-19 pandemic

Date: June 5, 2020

Suggested responses

  • Small air carriers and airports are important for the connectivity of remote communities. This sector has been highly impacted by COVID-19 and its recovery may take several years. 
  • Federal, provincial and territorial governments have introduced several measures to help the small air carriers and airports sector in the short-term.
  • Small air carriers and small airports play an important role in delivering supplies, transporting medical samples, and moving personnel or patients in and out of remote communities. 
  • Transport Canada is working in close collaboration with provinces and territories to fully understand the challenges small air carriers and airports are facing and identify options that will help sustain service to remote communities.

If pressed

  • I heard first hand from my provincial and territorial counterparts how important are small carriers and airports for their communities. Several small carriers remain fragile but are still carrying essential workers and cargo to Canada's remote communities.
  • On air carriers, Transport Canada is working with provinces and territories to understand service needs for remote communities.
  • On small airports, Transport Canada has discussed with several stakeholders about the importance of those airports to access communities and the fragile financial situation.  Transport Canada has for a long time supported safety at small airports through its Airport Capital Assistance Program and will continue to do so in the future. 

Background information

  • Small carriers and airports are suffering major losses due to COVID-19, related public health and travel restrictions, some communities' discomfort with travelers, stay-at-home orders and resulting decreases to passenger traffic.
  • The sector provides needed service to remote communities by delivering supplies, transporting medical samples, and moving essential workers or patients.
  • Broad programs put forward by the different levels of government are providing some relief, including $17.3M from the federal government for territories to ensure a continued supply of essential goods and services to communities. Most small carriers have also applied to access the Canada Emergency Wage Subsidy. 
  • However, most of the programs put in place to address immediate needs sunset on June 30, 2020. Demand for air service is unlikely to rebound quickly so routes to remote locations will remain economically unviable for some time.
  • Transport Canada is working with provinces, territories, and stakeholders to assess the needs of small air carriers and airports in Canada to identify options that will help sustain this sector's service to remote communities over the medium-term.
  • Analysis of the data will help examine measures already taken by the various jurisdictions, identify gaps in supports, and aid in the development of options to help stabilize the sector over the medium-term.
  • Provinces and territories are critical to this work as they understand the local needs of their individual communities, and are being directly engaged by Transport Canada.

Air carriers vouchers

Location: National

Issue: There is growing public concern resulting from Canadian air carriers offering vouchers instead of cash refunds for travel cancelled due to COVID-19.

Date: June 7, 2020

Suggested responses

  • The onset of COVID-19 has created an unprecedented situation of global travel bans and restrictions, traveller uneasiness and consequently mass cancellations of flights. In Canada, most airlines are either currently not flying or flying at significantly reduced capacities.
  • Many Canadians who have been issued vouchers for cancelled travel would prefer cash. At the same time, providing cash refunds could significantly accelerate airlines' financial challenges.
  • Canada's passenger rights regulations did not foresee a situation like COVID-19, and do not include obligations around compensation for flight cancellations under such circumstances. The Government continues to encourage airlines to put in place voucher policies that are both flexible and transparent.

If pressed

  • The Government of Canada is fully cognizant of the situation facing both air carriers and consumers and is monitoring the situation with a focus on approaches  that  are fair and reasonable to passengers while at the same time not imposing an undue financial burden on air carriers which could lead to their insolvency.

Background information

  • Canada's Air Travel Regulations and Air Passenger Protection Regulations (APPR) do not provide any guidance with respect to refunds and/or vouchers for flight disruptions outside the carrier's control, including cancelled flights due to a global pandemic such as COVID-19.  Under the APPR, for flights cancelled or delayed outside of the air carrier's control, air carriers only have an obligation to complete the passenger's itinerary. Otherwise this issue is covered as part of air carriers' respective terms and conditions of carriage (tariffs). 
  • Airlines have different commitments in their tariffs, often associated with the cost of the ticket, ranging from refunds for cancelled flights outside of their control to no obligation at all.  As such, Canadian air carriers have implemented varying voucher and refund policies during the current COVID-19 pandemic.
  • The Canadian Transportation Agency (Agency) issued a statement on March 25, 2020, to the effect that it could be an appropriate approach for air carriers to issue vouchers or credit instead of refunds for flight cancellations caused by COVID-19, as long as these do not expire in an unreasonably short period of time (e.g. 24 months). The Agency's voucher statement is not binding and did not change the law or alter passengers' rights. There is an application before the Federal Court of Appeal for judicial review of the Agency's voucher statement.
  • Given the huge volumes of air tickets cancelled due to COVID-19, Canadian air carriers have been issuing vouchers for future travel instead of cash refunds, as a means of limiting the financial impact at a time when they are already experiencing financial duress. This has become controversial, particularly in a context when individual Canadians are also experiencing financial challenges, and some believe that they should be provided a cash refund.
  • Air carriers are predominantly offering vouchers because they are facing significant revenue losses that are placing them in highly precarious financial positions. Providing cash refunds in the face of almost non-existent revenues could lead to some airlines becoming insolvent.

Temperature checks required for air travellers

Location: National

Issue/source:         

Date: June 5, 2019

Suggested responses

  • The COVID-19 pandemic has created an unprecedented global crisis that is having a significant impact on all aspects of the Canadian transportation industry, travellers, and the economy. The Government of Canada is committed to implementing a multi-layered framework of measures to protect Canadians, and help prevent air travel from being a source for the spread of the virus.
  • As of the end of June, air operators will be required to conduct temperature screenings at the point of departure for all passengers on international flights entering Canada.
  • And by the end of July, the Canadian Air Transport Security Authority will become responsible for screening passengers' temperatures as part of the departure procedures for domestic, transborder and international flights.
  • Temperature screening is one measure among many that help protect the travelling public, including requiring face coverings, hand-washing, distanced seat spacing, increased space between agents and passengers, and limiting food services.

If pressed

  • Canada is aligning with many of its key international partners in requiring temperature screening as an additional measure prior to entry, or exit from Canada. 
  • We must maintain the integrity of our aviation system for those that need to travel.
  • By screening passengers at their departure point, we are ensuring potentially sick travellers are identified as early in the process as possible and prevented from travelling.
  • This also extends our current border measures by screening travellers at the point of origin of their trip, rather than screening them once they are in Canada.   

Background information

  • The Government of Canada is adding another layer of protection to our approach and will now require temperature screenings for all passengers on international or transborder flights travelling to Canada prior to boarding at their point of departure. Further, travellers departing Canadian airports for either international or domestic destinations will be required to have a temperature screening.
  • This measure will expand our borders measures outside of our airports and customs halls and instead ensure that no passengers are traveling to Canada with an elevated temperature.
  • Within Canada, Canadian Air Transport Security Authority screeners will conduct a temperature screening of passengers as part of departure screening procedures. This is in addition to the health screening questions and the wearing of face-covering that is already required for all passengers.
  • Outside of Canada, for international inbound flights, air carriers will be required to ensure that passengers from an international last point of departure have undergone a temperature check in addition to the existing required health check questions for symptoms prior to boarding.
  • All passengers who have an elevated temperature and do not have a medical certificate to explain a medical or physical condition that would result in an elevated temperature, will not be permitted to continue their travel and will be asked to re-book in 14 days.
  • Airport temperature screening has been endorsed by the International Air Transport Association and the International Civil Aviation Organization. Canadian implementation will be necessary to support international alignment and the resumption of international travel.
  • Canadian implementation is necessary to support continued international alignment and further build confidence and trust in global aviation system, and to ensure Canada is positioned to quickly realize the economic benefits that come from air travel.

Air sector restart (health/safety/regulatory) measures

Location: National

Issue/source: This restart and recovery is guided by a set of principles, echoing those seen In the international community (G7, ICAO, etc.)

Date: June 5, 2020

Suggested responses

  • Transport Canada's (TC) aviation recovery process aims to maximize flexibility while also maintaining world-leading levels of safety and security.
  • As part of the aviation recovery framework, TC will be implementing measures at different points of the recovery aimed at addressing the public health risks posed by COVID-19 to allow air transportation to resume.
  • TC is focusing on a multi-layered system that can limit the spread of the virus both within and through the air transportation network while ensuring worker safety.
  • TC is implementing measures and exemptions aimed at addressing regulatory burden for the aviation sector.

If pressed

  • Planning for recovery is still in its early stages with many unknowns. Consultation and involvement of industry is key in assessing feasibility and the way forward.
  • Timing of this process is highly dependent on factors such as border status (opened/restrictions eased), the manner in which health risks are being mitigated, and timelines developed by public health officials.
  • My officials continue to work closely with industry stakeholders to develop the measures required to ensure a safe and sustainable transportation system that supports the restart of the Canadian economy and a return to a more normal life for Canadians.

Background information

  • Transport Canada has developed a framework for the recovery of the aviation sector that targets measures into four broad categories:
    1. Economic
    2. Public Health
    3. Regulatory
    4. Non-regulatory
  • This framework aims to target measures at different points during recovery and to establish a multi-layered approach to restarting the aviation sector while also protecting public health. Recovery of the aviation sector is being framed into four major phases:
    • Here and Now: characterized by the need to reactively manage the challenges of a public health crisis. Focus is on maintaining the effectiveness of public health and safety controls. Economic pressures are rapidly mounting on the sector and need to be managed through alleviating burden and economic instruments.
    • Re-open: characterised by the preparation for a scale up of operations. Operators and regulators are looking at making changes to their operations to adapt to a change in risk profiles and activities given the lack of steady state operations.
    • Return: characterised by the return to work of the aviation sector. Bookings will begin increasing again, operations will begin to scale back up to higher levels of activity, ongoing tweaking of measures will take place as the new reality begins to crystallise, and the focus on rebuilding public confidence will continue.
    • Emerge: characterised by attaining a new steady state. Oversight mechanisms are settling back into established measures and regulators are examining which measures will be codified into regulations and which measures will no longer be required.
  • The restart framework for the aviation sector is anchored in broader public health conditions and guidance from the overall federal framework. Thresholds and movement will be tied into broader federal decisions such as border re-opening and application of quarantine measures. The purpose is to develop a suite of tools and measures that can be applied as necessary and adjusted as required over time.
  • Given the complexity of international aviation and the differing progress of differing states, re-start focus will initially be on domestic travel within Canada followed with a gradual easing and re-opening of international air travel.
  • While these will advance in parallel, re-establishing international air linkages will occur on a bilateral and case-by-case basis considering the state of readiness and ability to ensure public health measures can be applied for transit to and from those destinations.

Intercity bus service reductions

Location: National 

Issue/source: The economic spillovers of COVID-19 have exacerbated the long-term financial challenges of the intercity bus industry, causing many operators to either suspend operations temporarily or reduce services significantly.

Date: June 12, 2020

Suggested responses

  • The Government is aware that the pandemic has had a very significant impact on intercity bus ridership and created significant challenges for the operators of those services.
  • It also recognizes the important service that is provided by these carriers.
  • However, the economic regulations of these services has been a provincial and territorial responsibility since the 1950s and carriers should be working with them to identify potential solutions.

Background information 

  • The intercity bus sector is facing significant economic pressure due to the collapse of revenue that is resulting from a lack of ridership during the ongoing crisis. On May 7th, Greyhound suspended all of its remaining services, which resulted in approximately 400 layoffs. Bus companies have expressed that it will be extremely challenging to survive multiple months under current conditions. 
  • Many operators have temporarily suspended service altogether, while only a few continue to operate at greatly reduced levels. It is understood that all companies are sustaining significant losses at this time. As a result, multiple operators have submitted emergency funding requests to federal and some provincial governments.
  • TC is encouraging operators to explore federal emergency support measures available to businesses, such as the Wage Subsidy program or Business Credit Availability Program.
  • Generally, provincial and territorial governments have relaxed regulations, allowing carriers to reduce or suspend services more easily than before the pandemic, but have not yet moved to provide direct funding support.
  • International travel is no longer taking place. Additionally, some provinces have placed restrictions on inter-provincial travel, limiting it to essential travel only. This is affecting bus companies providing services that cross provincial boundaries. 

Closure of flight service stations due to COVID-19

Location: National

Issue/source: Closure of flight service stations - NAV Canada's decision to reduce overnight services at several airports during the COVID-19 crisis.

Date: June 12, 2020

Suggested responses

  • Transport Canada's priority is to ensure the safety of the national air transportation system and the travelling public through its regulatory framework and oversight activities, including through oversight of air traffic control activities and airport runway safety controls.
  • NAV Canada provides air traffic control services to commercial and general aviation from facilities throughout Canada.
  • During the COVID-19 pandemic, through implementation of a segregated "crew" system and a temporary change in overnight service, NAV CANADA is ensuring the availability of staffing levels both during busy traffic periods and in the event that some staff are required to self-isolate.
  • In NAV CANADA's ongoing response to the COVID-19 pandemic, NAV CANADA presented a proposal to Transport Canada to implement a temporary level of service change for a period of 120 days at select locations during quiet hours, from 10 p.m. until 6 a.m. local time. 
  • Transport Canada accepted these temporary changes, which have been in effect since May 5, 2020 and are subject to prevailing conditions of the COVID-19 pandemic.
  • British Columbia regional and local emergency services are not impacted.

If pressed

  • Air navigation services will be temporarily suspended overnight at 18 air traffic service facilities, including air traffic control towers and flight service stations, and locations which receive remote airport advisory services. Of the 18 sites, 12 are located in British Columbia.
  • The aviation community has been informed of these service changes by NAV Canada.

Background information

  • On April 7, 2020, NAV CANADA presented a proposal to Transport Canada (TC) soliciting its support to implement a temporary level of service change for a period of 120 days at select locations during quiet hours (from 10 p.m. until 6 a.m.). This initial proposal included 62 air traffic facilities and was presented as a solution to provide NAV CANADA with greater depth and back-up capability in order to ensure the provision of air navigation services during busy periods (daytime) throughout the COVID-19 global pandemic.
  • TC reviewed the Safety Management Plan and Hazard Identification Risk Analysis on the concept of operations provided by NAV CANADA. This initial review removed some of the proposed sites and a second analysis was generated around the importance and availability of regular weather observations and its potential impact on air operations (medevac flights, Extended-range Twin-engine Operational Performance Standards (ETOPS) aerodromes, Northern hubs, etc.). The second analysis removed additional sites that had been proposed.
  • A third review of the proposed sites was completed taking into consideration other factors such as traffic level at night, additional weather data, and more specific information on medevac flights given the current public health emergency within Canada. 
  • The final list of affected facilities proposed by NAV CANADA included a total of 24 locations (Annex A).
  • Ultimately, NAV CANADA proceeded with changes at 18 select sites (down from the 21 that were accepted by TC) as three locations are able to receive service from an alternate site.
  • TC's regional office has reviewed the service changes in BC for impacts to safety and emergency services and determined there are no concerns. 

Annex A

NAV CANADA's final proposal to Transport Canada included 24 sites below.

  • Three facilities not accepted by the Director General of Civil Aviation following review have been highlighted in grey.
  • Ultimately, 21 of the 24 sites proposed, were found acceptable to Transport Canada.
  • A further three were eliminated from the list as service is provided from alternate locations (highlighted in turquoise)
  • Fort Nelson, BC
  • Port Hardy, BC
  • Prince Albert, SK
  • Cranbrook, BC
  • Penticton, BC
  • Terrace, BC
  • Red Deer, AB
  • Fort St-John, BC
  • Kamloops, BC
  • Deer Lake, NL
  • Charlottetown, PE
  • St-John, NB
  • St-Anthony, NL
  • Sandspit, BC
  • Sydney, NS
  • Val D'Or, QC
  • London, ON
  • St-Hubert, QC
  • Kelowna, BC
  • Victoria, BC
  • Abbotsford, BC
  • Rouyn-Noranda, QC
  • Sudbury, ON
  • Regina, SK

VIA Rail's High Frequency Rail Project

Location: National

Issue/source:

Date: June 8, 2020

Suggested responses

  • The Prime Minister has signaled in my mandate letter the importance of creating High Frequency Rail for the Toronto-Quebec City corridor, in collaboration with the Minister of Infrastructure and Communities.
  • I am pleased to highlight that project design and due diligence work is being undertaken by a Joint Project Office, led by the Canada Infrastructure Bank and VIA Rail.
  • Despite the dramatic impacts of COVID-19 on Canadians, the economy, and the transportation system, work continues in order to advance the HFR project.
  • As the High Frequency Rail initiative continues to advance, the Government will carefully consider the work being completed by the Joint Project Office as it determines next steps on the overall project.

Background information

High Frequency Rail (HFR)

  • While passenger rail has declined in Canada in recent decades as private vehicle and air travel has expanded, it remains a preferred travel choice for some Canadians, particularly in the busy Toronto-Quebec City Corridor. It offers an accessible transportation option with a lower environmental impact compared against alternatives like air and private automobile.
  • VIA operates on shared infrastructure with other railways, often resulting in congestion, limited on available frequencies, and poor on-time performance. These impacts therefore constrain VIA's ability to consistently deliver high quality intercity passenger rail services.
  • In response to these challenges, in 2016, VIA put forward a proposal for High Frequency Rail (HFR) between Toronto and Quebec City. A cornerstone of the HFR project is a proposed investment in dedicated tracks to allow for more frequent, faster and reliable service that would make the train a more attractive option for travellers in this busy transportation corridor.
  • Using funds provided through Budgets 2016 and 2018, Transport Canada worked collaboratively with VIA Rail, the Canada Infrastructure Bank (CIB) and Finance Canada to conduct an assessment of VIA Rail's HFR proposal. Preliminary findings indicated that HFR could be beneficial for Canadians and cost-effective for taxpayers.
  • In August 2019, the Government committed $71.1 million, including funds from the CIB, to establish a Joint Project Office comprised of the CIB and VIA Rail. This office will undertake a range of important pre-procurement and de-risking activities (e.g., legal and regulatory work related to safety; an Impact Assessment; consulting with stakeholders and Indigenous communities; and completing technical engineering, financial and commercial analyses). This work will inform the Governments decision on next steps for the project.
  • This 2019 funding will also support investments to preserve the option of interoperability between the proposed HFR service and Montreal's future Réseau express métropolitain (REM) light rail system. Work is also planned to further explore better linking these systems near the Montréal-Trudeau International Airport in Dorval.
  • Should it proceed, HFR would leverage a recent Government investment to replace VIA's fleet serving the Quebec City-Windsor corridor. In 2018, VIA awarded a $989 million contract to Siemens Canada Inc. to provide 32 trainsets to replace the existing corridor fleet. These trains will begin entering into service in 2022. The contract with Siemens includes options to procure additional trainsets should the Government decide to implement HFR.

Impacts of COVID-19

  • Despite the significant impacts of COVID-19, work continues by the Joint Project Office  (JPO) to advance the HFR project. This includes efforts by the JPO's engineers (AECOM and Arup) to refine technical designs and cost estimates. In parallel, work is underway to review and confirm ridership and revenue forecasts, along with other project "de-risking" activities.
  • At this stage, the overall macro-level timelines of the HFR project are not expected to be significantly impacted as a result of COVID-19. However, some required stages of work, particularly those focused on external engagement, will be delayed. For example, the potential launch of an Impact Assessment, as well as engagement with Indigenous and local communities, could conceivably be pushed back. This could potentially impact overall timelines.

Rail Safety Improvement Program

Issue/source: Update on the Implementation of Rail Safety Initiatives from Budget 2019 Related to Rail Safety Improvement Program

Date: June 5, 2020

Suggested responses

  • The Government of Canada is committed to keeping Canadians safe by improving rail safety.
  • The Rail Safety Improvement Program (RSIP) provides grant and contribution funding to support safety improvements on rail property and along rail lines, the use of innovative technologies, outreach, promotional education and awareness activities, research and studies to improve safety, and closures of grade crossings.
  • With Budget 2019, the RSIP will provide more than $85 million over the next four years to improve the safety of rail transportation across Canada.
  • In the past three years, through the RSIP, the Government of Canada announced over 660 projects.

Background information

Almost half of all railway-related deaths and injuries result from accidents at crossings. Transport Canada is committed to reducing the number of these injuries and fatalities by working closely with railway companies and road authorities to identify grade crossings that require safety improvements.

The Rail Safety Improvement Program (RSIP) provides grant and contribution funding to improve rail safety and reduce injuries and fatalities related to rail transportation. The program funds:

  • safety improvements to existing rail lines
  • closures of grade crossings
  • research to develop new technologies that enhance rail safety
  • initiatives to raise awareness about rail safety issues across Canada

The program has two key components:

  • The infrastructure, technology and research (ITR) component funds projects that:
    • Support measures to improve public safety at rail property and rail lines (both federally and provincially regulated).
    • Support research as well as testing and development of technologies that can enhance the safety of rail lines (both federally and provincially regulated).
  • The public education and awareness (E&A) component funds public education projects aimed at reducing railway-grade crossing collisions and trespassing incidents on railway property, particularly in high-risk areas.

This program builds on Transport Canada's Grade Crossing Improvement, Grade Crossing Closure and Operation Lifesaver Programs.

Brake Tests under the Railway Safety Act (Railway Safety Advisory Letter issued by the Transportation Safety Board)

Location: National

Issue/source: n/a

Date: June 5, 2020

Suggested responses

  • Rail safety is The Minister of Transport's top priority and the Government of Canada is continuously looking for ways to make our railway system safer for Canadians.
  • Transport Canada actively monitors railways through inspections to verify that locomotive and rail cars are compliant with regulatory requirements under the Railway Safety Act. These include verifying that locomotives and rail cars receive the required brake tests and maintenance.
  • Transport Canada has a robust oversight program and does not hesitate to take appropriate enforcement action when non-compliance is found.

If pressed

  • Since the tragic accident in Field, Transport Canada has taken, and continues to take, significant action to further strengthen the safety of Canada's railway and the transportation of dangerous goods systems. These measures include more stringent requirements for the securement of attended trains on slopes. 
  • The department continues to examine avenues to further enhance the safety of our railways and is awaiting the Transportation Safety Board's final report into the February 2019 accident near Field British Colombia to determine if further measures are warranted.

Background information

  • The Transportation Safety Board (TSB) is conducting an investigation into the accident which occurred on February 4, 2019 near Field British Colombia, and fatally injured three Canadian Pacific crew members.
  • On April 17, 2020, TSB issued a Rail Safety Advisory letter regarding brake testing originating from this investigation. 
  • Requirements pertaining to brake tests are contained in the Railway Freight and Passenger Train Brake Inspection Rules.
  • The rules outline four main brake tests to be performed on railway cars. These tests, when performed in accordance to the rules, provide the minimum brake testing standards for the safe operation of brakes on railway equipment.

Supplementary Messages - Revised Rule 66 for emergency stops on mountain and heavy grades and new Ministerial Order

  • On April 28, 2020, Transport Canada approved the railway industry's proposed new Rule 66 of the Canadian Rail Operating Rules, which will help ensure that effective safety procedures are applied to all trains that come to emergency stops on both heavy grades and mountain grades.
  • This change to the Canadian Rail Operating Rules puts into place permanent additional layers of defence to secure equipment on both heavy grades and mountain grades, following the rail tragedy that took place near Field, BC, on February 4, 2019.
  • Transport Canada also issued a Ministerial Order, under the Railway Safety Act, that requires railway companies to report to Transport Canada all occurrences requiring emergency stops on grades.

Supplementary Messages - Past Effort to Address Uncontrolled Movement

  • In 2014, Transport Canada issued an Emergency Directive under the Railway Safety Act establishing a standardized minimum for hand break applications and specific testing requirements, and additional physical defences for unattended trains.
  • In 2015, Transport Canada revised Rule 112 of the Canadian Rail Operating Rules on train securement which formally established additional layers of defence to secure trains and further reduce the risk of runaway trains.
  • The revised Rule 112 provides uniformity in hand brake application by requiring handbrakes to be applied according to a chart that is based on train tonnage and grade, and it requires an additional means of securement when equipment is left unattended on main track, sidings, subdivision track, and high risk locations.

Grade crossings safety

Location: national

Issue/source: Challenges and considerations regarding compliance with grade crossings regulations

Date: June 5, 2020

Suggested responses

  • Rail safety is a top priority for the Government of Canada. We remain committed to safeguarding all Canadians who live and work along rail lines by putting in place the necessary measures to reduce the risk of serious accidents.
  • Transport Canada actively monitors railways and road authorities through inspections to verify that crossings meet safety requirements under the Grade Crossings Regulations.
  • Transport Canada also provides funding support for improvements to grade crossings, through its Rail Safety Improvement Program.

If pressed

  • Transport Canada takes appropriate enforcement action whenever it finds a non-compliance at a crossing.
  • I encourage road authorities and railways to take advantage of the Rail Safety Improvement Program funding to make grade crossings even safer.
  • Transport Canada continues to work closely with municipal associations as well as the railway industry in order to facilitate and promote the successful implementation of the Regulations.

Background information

  • Railway companies, road authorities (provinces, municipalities, band councils), and private crossing owners are each responsible for managing railway crossing safety in Canada.
  • In November 2014, Transport Canada (TC) introduced new Grade Crossings Regulations (GCR) to help reduce the frequency and severity of accidents at federally-regulated crossings.
  • The GCR establish comprehensive and enforceable safety standards for grade crossing.
  • The Grade Crossings Regulations require that railway companies and road authorities share safety-related information with each other regarding their grade crossings. This allows them to better work together to make their crossings safer and to ensure compliance with the Regulations.
  • In the case of existing crossings, railway companies, road authorities, and private land owners have seven years (by November 2021) to comply with requirements, such as signage, sightlines, and warning systems.
  • Starting in 2015, Transport Canada took and continues to take measures to ensure road authorities and railway companies have the information needed to comply with the regulations and to understand what funding is available. (e.g., via mail out of letters and brochures to 1656 road authorities; speaking at meetings and conferences; holding virtual meetings, and keeping our website up-to-date).
  • Transport Canada works closely with the Canadian Transportation Agency (CTA) regarding crossing safety.  The CTA is able to assist in determining who is financially responsible for construction and, in the case of an existing crossing, maintenance costs. It may also assist private land owners and public road authorities in negotiating agreements with the railway companies. The Agency notes that there are many private crossings in Canada with no written authorizations.
  • The Association of Manitoba Municipalities and the Saskatchewan Association of Rural Municipalities in letters dated May 1 and May 8, 2020 respectively are seeking an extension of the 2021 deadline as well and long-term and predictable RSIP funding
  • CP, CN and the Railway Association of Canada are also seeking a deadline extension
    • The economic impact of COVID-19 will further exacerbate the funding pressures felt to date by municipalities
  • Transport Canada will continue to work with railways and other regulated parties to help them understand the regulatory requirements and to assist them to achieve compliance by the deadline of November 2021

Rail Safety Improvement Program (RSIP)

  • TC provides funding support for improvements to grade crossings, through its Rail Safety Improvement Program.
  • RSIP is a comprehensive approach to improving the safety of rail transportation through investment in infrastructure, technology, research, public education, and awareness.
  • The program provides federal funding, in the form of grants and contributions, to improve rail safety and reduce injuries and fatalities related to rail transportation towards two key components:
    • The Infrastructure, Technology and Research Component
    • The Public Education and Awareness Component

Fatigue management in the rail industry

Location: National

Issue/source:

Date: June 5, 2020

Suggested responses

  • Transport Canada (TC) recognizes that addressing fatigue in all modes of transportation will help further enhance safety. However, this is a complex issue with no single solution.
  • In December 2018, TC issued a Ministerial Order instructing railway companies to revise the existing Work/Rest Rules for Railway Operating Employees, to ensure that they reflect the latest science and fatigue management practices.
  • The proposed Work/Rest Rules submitted by industry were refused as they did not address the fatigue-related risks identified in the MO. The industry was given an opportunity to rework their submissions and return with a new proposal.
  • Over the last year, TC worked extensively with industry and scientific advisors. This work culminated in railway companies developing a new proposal, which is currently in consultation.
  • The industry is expected to submit its revised rules to the department in July 2020. TC will ensure that the final rules result in a robust and comprehensive fatigue management approach for the Canadian rail industry.
  • TC continues to work with all parties involved and monitor progress. Should the process not lead to an approval, TC may consider other regulatory options at its disposal.

If pressed

  • If non-compliance with the Work/Rest Rules for Railway Operating Employees is found, between now and when regulatory changes are made, Transport Canada will not hesitate to take appropriate enforcement action. 

Background information

  • Fatigue is well recognized and well documented as a significant safety hazard by the transportation industry, scientific community and regulators.
  • On June 16, 2016, the Standing Committee on Transport, Infrastructure and Communities released its report An Update on Rail Safety, which contained the recommendation to take immediate action through a working group to develop options to improve the management of railway crew fatigue.
  • On October 6, 2016, the Minister of Transport tabled the Government Response, in which the Government agreed in principle with the recommendation, and the importance of an improved regime to manage fatigue in the rail industry.
  • In fall 2016, the Transportation Safety Board of Canada also added the issue of fatigue management in the rail industry on their Watchlist, as a key safety issue that needs to be addressed.
  • Transport Canada's (TC) Work/Rest Rules for Railway Operating Employees (Work/Rest Rules), made pursuant to the Railway Safety Act, have not been updated since 2011, when the requirement for Fatigue Management Plans were added to the Work/Rest Rules.
  • The current Work/Rest Rules contain requirements for hours of work and rest and also require railway companies to develop fatigue management plans designed to reduce fatigue and improve on-duty alertness of operating employees.
  • However, the current Work/Rest Rules do not reflect the latest fatigue science and omit key areas of fatigue management such as: time free from work, advance notice of scheduling and duty day restrictions based on the time of day the shift starts.
  • On December 20, 2018, TC issued a Ministerial Order under paragraph 19(1)(a) of the Railway Safety Act instructing railway companies to revise the Work/Rest Rules for Railway Operating Employees by May 19, 2019, to reflect the latest fatigue science and fatigue management practices.
  • The department is also currently working on various initiatives to address fatigue in the rail industry.
    • Notice of Intent: TC published a Notice of Intent (NOI) in the Canada Gazette on November 11, 2017. The NOI communicated TC's intent to amend the rail safety regulatory framework to address fatigue-related issues and provided an opportunity to solicit comments from stakeholders on its approach. To date, we have received some comments on the NOI from individuals and industry associations.
    • Fatigue Risk Management System (FRMS): TC reviewed FRMS best practices across transportation sectors to determine how these concepts could be applied to the rail industry in Canada.
    • Fatigue in Transportation Forum: In partnership with the Centre for Study and Treatment of Circadian Rhythms (Douglas Mental Health University Institute) and l'Association québecoise des transports, TC held a Fatigue Forum at McGill University on June 27‑28, 2018.
    • Centre for Fatigue Expertise (CFE): Established in 2020, the CFE is a Department wide initiative designed to standardize TC's approach to fatigue by utilizing the most current fatigue science and best practices with respect to fatigue management.
  • The department's initiative to amend the Canadian Aviation Regulations, with respect to addressing flight crew fatigue management, will provide lessons learned and inform the fatigue management of railway operations. 
  • Transport Canada continues to engage with key stakeholders on the issue of fatigue, such as railway companies, unions, research groups, other transportation modes and other countries.

Lac-Mégantic rail bypass

Location: Lac-Mégantic and municipalities of Frontenac and Nantes

Issue: Lac-mégantic rail Bypass update

Date: June 5, 2020

Suggested responses

  • In May 2018, the governments of Canada and Quebec announced their commitment to build the Lac-Mégantic rail bypass project.
  • Since then, geotechnical and environmental studies were completed, and the governments announced in August 2019 the relocation of railway activities to the Lac-Mégantic industrial park.
  • The land acquisition process is well advanced. Offers should be made to landowners over the next few months.
  • Transport Canada continues to work with all parties involved to implement this important social reconstruction project.

If pressed

  • The feasibility study will be completed this summer, followed by the plans and design phase.

Background information

Announcement

  • On May 11, 2018, the Prime Minister of Canada, together with the Premier of Quebec, announced the rail bypass in Lac-Mégantic. The project, which is estimated to cost $133 million, will be funded by the federal government (60%) and the Province (40%). In December 2019, the Canadian Pacific Railway bought the Central Maine & Quebec Railway (CMQR), and have indicated publicly they will continue to support the project.

Feasibility Study

  • The rail bypass feasibility study is led by the municipality of Lac-Mégantic, which hired a project manager (Stantec) and an engineering firm (AECOM). The study proposed a 12.8km route for an estimated cost of $133M. The feasibility study should be completed in the summer of 2020. A Steering Committee was established to oversee the study and includes working-level officials from the provincial and the federal governments.

Environmental assessment

  • The provincial Public Hearing Commission released its public report on October 24, 2019. Transport Canada  is working with its provincial partners and Central Maine & Quebec Railway (CMQR) to include the mitigations measures in the project agreement. The provincial environmental assessment process is expected to be completed during summer 2020 with the issuance of a letter to Transport Canada and the ministère des Transports du Québec , both funding departments for this project.

Relocation of rail storage activities

  • Transport Canada has retained the services of the engineering firm RIVVAL to assess the feasibility options of consolidating the railway activities at the industrial park. Based on this report, Transport Canada made an announcement that is supported by Central Maine & Quebec Railway (CMQR) , the municipalities and the communities.

Railway tampering and vandalism

Location: National

Issue/source: Rail security - tampering and vandalism incidents

Date: June 5, 2020

Suggested responses

  • Rail security is a top priority for Transport Canada. The Government of Canada is continuously looking for ways to enhance the security of Canada's railway system.
  • Unlawful interference with railway property, systems and infrastructure is illegal and extremely dangerous. Acts of tampering can have major impacts on public safety, the environment, and the economy.
  • Transport Canada is calling for all Canadians to respect the Railway Safety Act and be conscious of the dangers related to being near railway operations.
  • In addition to putting yourself at risk, you are endangering railway workers and train passengers, as well as those living in the surrounding communities.

If pressed

  • The Government of Canada has assembled an ad hoc rail security task force, led by Transport Canada, to help reduce the illegal and criminal activities impacting Canada's railway system. 
  • The rail security task force is composed of participants from railway police organizations and law enforcement partners.
  • The purpose of the rail security task force is to increase the level of coordination between partners, implement actions to counter certain risks to railway security, while also helping to educate and shape behaviour around the effects of tampering with Canada's railway system.

Background information

  • In February and early March of this year, a significant number of railway protests and blockades occurred, which had serious repercussions for the Canadian transportation system and economy.
  • These incidents have occurred across the country, in both urban and rural areas.
  • Transport Canada is also conducting a review of its rail security program, to ensure that it best addresses evolving risks to the transportation system.

VIA Rail Canada Inc.

Location: Ottawa

Issue/source: VIA Rail Canada Inc. (via) is seeking access to $277,458,900 in planned spending authorities.

Date: June 12, 2020 

Suggested responses

  • VIA Rail is seeking $264,608,900 in funding to support existing passenger rail operations. The source of funds is an off-cycle funding decision in 2020.
  • This funding will be used to provide a national passenger rail service, and is intended to stabilize normal operations and keep VIA's asset base in a state of good repair.
  • VIA Rail is also seeking $12,850,000 in funding to support the High Frequency Rail proposal. The source of funds is from Budget 2018 and an off-cycle funding decision in 2019.
  • This funding will be used to undertake activities to explore the possibility of implementing the High Frequency Rail proposal, including de-risking and pre-procurement work with the Canada Infrastructure Bank.
  • The outcomes of the de-risking and pre-procurement work will support the Government of Canada in taking a decision on whether to implement High Frequency Rail.
  • Canadians will benefit from this funding as it will support VIA in maintaining a safe, efficient, and reliable passenger rail service for travellers across Canada.

If pressed

  • VIA faced significant disruptions to its services in February and March 2020 as a result of protestors blockading host rail infrastructure. This service disruption, compounded with reduced service and ridership as a result of the COVID-19 outbreak, has created financial uncertainty for VIA in 2020-2021.
  • Before making a decision on whether to implement HFR, the Government will carefully consider the analysis provided by the Joint Project Office and Transport Canada. This decision will consider the best interests of Canadian travellers, value for money, and respect for the highest safety and security standards.

Background information

2020 Off-Cycle Funding Decision

  • This funding decision will address the business as usual requirements of the corporation, keeping operations running in a steady state and capital assets in a state of good repair.  VIA's reference level has been $146.8M since 2015. At no time has the reference level reflected the full government subsidy, which is supplemented by extended funding packages, infrastructure plans and various project spends. In fiscal year 2019-20, for example, VIA's reference level reflected less than 30% of the year's appropriation (i.e., $511M). By design, appropriated Crown corporations are allocated annual reference-level funding that is insufficient to maintain their full year of operations. This ensures regular Cabinet or Budget consultation on top-up operating funding as well as capital funding. For example, VIA received three years of extended funding in Budget 2014 as well as Budget 2017.
  • VIA faced significant disruptions to its services in February and March 2020 as a result of protestors blockading host rail infrastructure. This service disruption, compounded with reduced service and ridership as a result of the COVID-19 outbreak, has created financial uncertainty for VIA in 2020-2021.

High Frequency Rail

  • In 2016, VIA Rail put forward a proposal for High Frequency Rail (HFR) between Toronto and Quebec City. A cornerstone of the HFR project is a proposed investment in dedicated tracks exclusive to its services to allow for more frequent, faster and reliable service throughout every day that would make the train a more attractive option for travellers in this busy transportation corridor.
  • Transport Canada (TC) has worked with VIA Rail, the Canada Infrastructure Bank and Finance Canada to conduct an in-depth assessment of VIA Rail's HFR proposal.
  • In June 2019, the Government committed $71.1 million, including funds from the Canada Infrastructure Bank, to undertake pre-procurement and de-risking activities identified by TC's due diligence. This funding will also support investments to not preclude the option of interoperability between VIA's proposed HFR service and Montreal's future Réseau express métropolitain (REM) light rail system, and to further explore better linking these systems in the area of the Trudeau International Airport in Dorval.
  • The Government established an HFR Joint Project Office, between VIA Rail and the Canada Infrastructure Bank, to move forward with the next steps on the de-risking and pre-procurement activities required to position the Government to make a final investment decision on the HFR project. This includes preparation for an environmental assessment and preliminary work on land acquisitions, and stakeholder engagement, including consultations with Indigenous communities.

Marine Atlantic Inc.

Location: Maritimes

Issue/source: Tabling of Supplementary Estimates "A" in parliament

Date: June 12, 2020

Suggested responses

  • Marine Atlantic provides the constitutionally mandated ferry service between the Island of Newfoundland and Canada's mainland.
  • Marine Atlantic is accessing $84,900,000 from a funding decision in 2020.
  • The funding will cover the operating shortfall and capital requirements of the corporation.
  • Canadians will benefit from a safe, effective and efficient ferry service to and from Newfoundland

If pressed

  • The Government of Canada recognizes that the ferry service linking Newfoundland to the mainland is a critical economic and social link.

Background information

  • Marine Atlantic Inc. (MAI) is a non-agent Crown corporation incorporated under the Canada Business Corporation Act.  MAI does not have its own enabling legislation.
  • MAI is responsible for operating the ferry service between the Island of Newfoundland and Nova Scotia.  Its vessels carry people, vehicles, and commercial units that deliver goods and products to and from the Province of Newfoundland and Labrador (NL).  MAI fulfills Canada's constitutional obligation to provide a year-round ferry service between North Sydney, Nova Scotia (NS) and Port aux Basques, NL.  It also provides a seasonal service between North Sydney and Argentia, NL.
  • MAI owns three ferry terminals and operates a fleet of four ice-class RoPax vessels, which have the ability to accommodate both commercial freight and travellers at the same time.
  • Budget 2019 provided MAI with authority and funding for the procurement of a new ferry vessel.
  • In an off cycle request, the Government provided two years of funding to MAI to address its forecast operating shortfall and capital requirements (2020-21 and 2021-22). The amount of $84.9 million in 2020-21 is the first year of this funding and will allow the corporation to continue its operations.

Marine Atlantic Inc. – Vessel procurement

Location: Maritimes

Issue/source: Marine Atlantic Inc.'s procurement of a new ferry vessel

Following a request for qualifications process, Marine Atlantic has invited "Stena North Sea"  and "Rederi AB Gotland" to participate in a formal request for proposal process where the successful bidder would build, lease, and sell a new Ropax vessel to Marine Atlantic.

Date: June 12, 2020

Suggested responses

  • Marine Atlantic provides the constitutionally mandated ferry service between the Island of Newfoundland and Canada's mainland.
  • Budget 2019 announced that it would support Marine Atlantic in modernizing its fleet through the procurement of a new vessel to replace the MV Leif Ericson. The new vessel is expected to enter service in 2023-24.
  • MAI is leading the procurement through an open, transparent and competitive process for a new vessel.

If pressed

  • Marine Atlantic is an independent Crown corporation that operates at arm's length from the Government of Canada and is responsible for managing its business decisions, including those related to procurement.
  • In carrying out its Request for Qualifications process, Marine Atlantic has implemented recognized commercial practices to evaluate submissions.
  • The procurement process has been, and will continue to be, observed by a fairness monitor.

Background information

  • Marine Atlantic Incorporated (MAI) is a Crown corporation that fulfills Canada's constitutional obligation to provide year-round ferry services between North Sydney, Nova Scotia, and Port aux Basques, Newfoundland and Labrador (NL). MAI also provides a non-constitutional summer service between North Sydney and Argentina, NL. 
  • MAI owns three ferry terminals and operates a fleet of four ice-class ferry vessels, which allows for safe operations in the challenging weather conditions of the Gulf of St. Lawrence during the winter months.
  • In Budget 2019, the Government announced that it would support MAI's fleet modernization through the procurement of a new vessel to replace the MV Leif Ericson, which is nearing the end of its lifecycle. 
  • MAI's procurement process is comprised of two steps: an initial Request for Qualifications (RFQ), followed by a Request for Proposals (RFP) with pre-qualified entities.  MAI's vessel procurement project formally began with the launch of its RFQ on July 17, 2019, with submissions due on November 13, 2019. Following a detailed review of the prequalification submissions submitted through the RFQ process, Marine Atlantic has shortlisted two applicants who will now move to the RFP stage. These companies are Stena North Sea Ltd. and Rederi AB Gotland.
  • Stena North Sea Limited along with team members of the Stena group of companies (Stena Rederi and Stena Finance) is a European based ferry operator and tonnage supplier to the international charter market. They have extensive experience in the Ro-Pax ferry industry, including the building of Ro-Pax vessels.
  • Rederi AB Gotland is a European based vessel operator and tonnage supplier with extensive experience in the supply and chartering of Ro-Pax ferries, tankers and dry cargo vessels. It provides Ro-Pax ferry services through its subsidiary Destination Gotland to the island of Gotland, located in the Baltic, and the Swedish mainland, having recently constructed two Ro-Pax ferries for this service.
  • As a Crown corporation and a distinct legal entity that operates at arm's length from the Government of Canada. As such, the corporation is leading its own process to procure its new ferry vessel, supported by expert external advisors (legal, procurement, marine, fairness).

  • MAI's fairness monitor for the project reviewed the RFQ evaluation framework, participated in the MAI evaluator training, and provided oversight at each stage of the evaluation. The Fairness Monitor has provided the following certification with respect to the RFQ evaluation process:

    "As the Fairness Monitor for the Ro-Pax Vessel Procurement RFQ, we certify that, in our opinion, the evaluation process was conducted in a fair, open and transparent manner, consistent with the process described in the RFQ."
  • The procurement process will continue to be supervised by the fairness monitor retained by MAI.
  • As such, the vessel is expected to enter into service in the fiscal 2023-24.
  • To date, the COVID-19 pandemic has not resulted in significant delays to the process.  Moreover, MAI indicates that the two shortlisted companies (Stena North Sea Ltd. and Rederi AB Gotland ) are thought to be in a strong financial situation, and poised to carry MAI's work.  

Rail safety and derailments of trains carrying dangerous goods

Location: Saskatchewan and across Canada

Issue/source: Article in the media written by CBC News: why crude oil trains keep derailing and exploding in Canada — even after the Lac-Mégantic disaster.  

Date: June 15, 2020

Suggested responses

  • Rail safety is my top priority, and the Government of Canada is continuously looking for ways to make our railway system even safer for Canadians.
  • Transport Canada actively monitors railways through inspections to verify that track is compliant with regulatory requirements under the Railway Safety Act. 
  • Transport Canada has a robust oversight program and does not hesitate to take appropriate enforcement action when non-compliance is found

If pressed

  • Since the accidents near Guernsey Saskatchewan, I have taken, and continue to take, significant action to further strengthen the safety of Canada's railway and transportation of dangerous goods systems. These measures include reducing the speed of trains carrying dangerous goods. 
  • The department continues to examine avenues to further enhance the safety of our railways and has ordered companies to develop strengthened safety requirements to make speed restrictions permanent and to strengthen track inspection and maintenance rules. 

Background information

  • On June 15, 2020, CBC published an article critical of the Government's oversight of railways. The article points to derailments in 2019 and early 2020 (in Manitoba, Saskatchewan and northern Ontario), and northern Ontario in 2015 that involved the release of crude oil.
  • The article refers to Transport Canada (TC) inspection reports received under an access to information request, which mentions the department is "failing to properly oversee rail companies and ensure the safety of hundreds of communities along the country's vast rail networks".

Actions TC has taken since the Guernsey Derailments

  • A Ministerial Order was issued on February 16, 2020, in response to the derailments of trains carrying crude oil that took place earlier this winter. The Order expired April 1, 2020.
  • As such, in early April 2020, Transport Canada implemented new measures to reduce train derailments and improve rail safety in Canada through three different Ministerial Orders to railway companies:
    • A Ministerial Order requiring railway companies to maintain lower speeds in metropolitan areas for trains carrying large quantities of crude oil and liquefied petroleum gas [i.e., higher risk key trains with further mandatory speed reductions everywhere during the winter months (from November 15 to March 15)].
    • This Order also directs companies to address the management of their track maintenance and inspection.
    • Two additional Ministerial Orders were issued to direct railway companies to update the current industry rules governing track safety and the movement of dangerous goods in Canada. These Orders implemented measures to reduce train speeds and improve maintenance and inspection practices in Canada, leading to safer railway operations.

TC Oversight of Track

  • Under the Railway Safety Act, railway companies are responsible for the safety of their rail line infrastructure, railway equipment, and operations. Transport Canada has a robust track oversight program to oversee railways' compliance with the Rules Respecting Track Safety.
  • It is the railway's responsibility to address all non-compliances identified by Transport Canada during a track inspection. Railways may address non‑compliances by implementing short term corrective actions such as reducing maximum allowable train speed on its track. Different classes of tracks can tolerate trains travelling at different speeds, so by lowering the maximum allowable speed, the railway can continue to operate in compliance with the Rules Respecting Track Safety until repairs are made.
  • Since January 1, 2019, Transport Canada has inspected CP Rail's Sutherland Subdivision (the subdivision where the Guernsey derailments occurred) with a track inspection vehicle three times. Transport Canada found minor non‑compliances on May 7, 2019, and August 27, 2019. In both instances, these non-compliances were identified to CP Rail, who then made all necessary repairs. Transport Canada verified that these repairs were completed by physically observing some of them and by thoroughly reviewing CP Rail's inspection data. There were no instances of non‑compliance found during the third inspection conducted with a track inspection vehicle on January 29, 2020. 

Funding for the incentive for zero-emission vehicles program

Requesting $47,833,813 for the 2020-21 Supplementary Estimates (A).

The Incentive for Zero-Emission Vehicles (iZEV) Program is seeking access to $47,833,813 in planned spending authorities.

Key Message

  • The $47,833,813 in planned spending comes from the $300 million funding envelope received in Budget 2019 for the Incentive for Zero-Emission Vehicles program.
  • The Incentive for Zero-Emission Vehicles program contributes to a clean transportation system by increasing the adoption of zero-emission vehicles in Canada, through purchase incentives, as a means to reduce air pollution and/or greenhouse gas (GHG) emissions from transportation.
  • The Incentive for Zero-Emission Vehicles programs provides point-of-sale rebates of up to $5,000 for the purchase or lease of eligible new zero-emission vehicles (ZEVs), thereby making them more affordable for Canadians.
  • Since the launch of the program on May 1, 2019, 43,923 Canadians and Canadian businesses have benefited from the point-of-sale incentive (as of March 31, 2020).

If pressed

  • The Government of Canada will continue to operate the Incentive for Zero-Emission Vehicles until existing funding is exhausted; we are exploring future strategies for encouraging the development and the adoption of zero-emission vehicles by Canadians.

Background

  • The federal Incentive for Zero-Emission Vehicles Program was launched in May 2019 and provides a point-of-sale rebate of up to $5,000 for the purchase or lease of eligible ZEVs (including plug-in hybrids), as the higher purchase price of ZEVs is a barrier to ZEV uptake.
  • Light-duty vehicle (LDV) emissions account for approximately 50% of Canada's transportation-related greenhouse gas (GHG) emissions, and 12% of the country's total emissions.
  • Depending on the source of electricity, zero-emission vehicles (ZEVs) have the potential to reduce Canada's emissions from LDVs by up to 68% compared with conventional vehicles, and can play a critical role in reducing Canada's GHG emissions.
  • New ZEV sales have continued to increase their share of overall LDV sales, more specifically where provincial and federal purchase incentives exist.

Funding for aviation security screening services 

Requesting $2,800,000 for the 2020-21 Supplementary Estimates A.

The Department of Transport is seeking access to $2,800,000 in requested spending authorities.

Key Message

  • This funding was requested through an off cycle funding decision in 2020.
  • This funding will support Transport Canada in negotiations with industry on the sale of CATSA's assets and liabilities.
  • Transport Canada will use these funds for external advisors to support the Government Negotiating Team as it negotiates the transfer of civil aviation security screening services to a new designated screening authority.
  • The successful negotiation and transfer of authorities for the provision of civil aviation security screening services to a new designated screening authority will provide the travelling public with better service while maintaining the existing high standards for safety and security. Once negotiations and the subsequent transaction concludes, Canadians can expect a more nimble, responsive, and innovative screening authority.

If pressed

  • Through Budget 2019 and the Security Screening Services Commercialization Act of 2019, the Government of Canada is committed to selling CATSA's assets to an independent, not-for-profit Designated Screening Authority, and to transferring responsibility for aviation security screening services to that entity. Timelines may have been disrupted, but all parties are still committed to completing the transaction.
  • Our timelines in pursuing the commercialization of Canada's aviation security screening system have been affected by the need of both the federal government and the private parties to focus on responding to Covid-19. However, we remain of the view that this approach makes a great deal of sense and will more fully reengage on the issue with you once we are all in a better position to do so.

Background

  • CATSA is an agent parent Crown Corporation, fully funded by parliamentary appropriations.  It was created in December 2001, as part of the Government of Canada's response to the events of September 11, 2001, pursuant to the Canadian Air Transport Security Authority Act (S.C. 2002, c. 9, s. 2) and the Budget Implementation Act, 2001. It came into force on April 1, 2002.
  • The Security Screening Services Commercialization Act received royal assent in June, 2019 and contains provisions for the establishment of a Governor in Council-ordered body corporate incorporated under the Canada Not-for-profit Corporations Act to act as a designated screening authority. The act includes provisions related to the sale or disposition of CATSA's assets and liabilities, closing out of its affairs, and eventual dissolution.
  • The 2020 funding decision provided $2.8M (of which $1M is re-profiled from 2019) to fund external advisors that are supporting the Government Negotiating Team. Project team staff and other operating costs are to be funded within existing departmental reference levels.
  • Subject to negotiations with industry and due diligence activity which began in late 2019, the sale of assets of CATSA is notionally set to take place in 2020-21, with the Designated Screening Authority (DSA) to start operating shortly thereafter. Covid-19 has resulted in a pause but all parties have indicated an interest in proceeding with the transaction once the air sector begins to stabilize.

Funding for High Frequency Rail (HFR) proposal

Requesting $1,871,425 for the 2020-21 Supplementary Estimates A.

Transport Canada (TC) is seeking access to $1,871,425 for TC to proceed with the next phase of VIA Rail Canada Inc.'s (VIA) High Frequency Rail (HFR) proposal.

Key messages

  • The source of the funding is a 2019 off-cycle budget decision that provided new funding for HFR.
  • The funding will enable TC to implement pre-procurement and de-risking activities required to move forward with HFR.
  • TC will receive funds to support and assess the work developed by the HFR Joint Project Office (led jointly by VIA and the Canada Infrastructure Bank), which is responsible for conducting a series of pre-procurement and de-risking activities required to position the Government to make a decision on HFR.
  • TC will also receive funds for the development of track safety requirements that must be put in place to allow HFR to be operated at its intended speed.
  • This funding will help enable the development of a plan for improved intercity passenger rail travel that, if implemented, would benefit Canadians through shorter  travel times and more frequent service.

If pressed

  • As with any large scale infrastructure project, a phased approach is prudent to ensure there is sufficient rigor and robustness in the analysis of High Frequency Rail in the Corridor, prior to making a final investment decision. The work that will be completed with the funding will also explore the possibility of private sector involvement in the project.

Background

  • In 2016, VIA put forward a proposal for High Frequency Rail between Toronto and Quebec City. A cornerstone of the HFR project is a proposed investment in dedicated tracks to allow for more frequent, faster and reliable service that would make the train a more attractive option for travellers in this busy transportation corridor.
  • Using funds provided through Budgets 2016 and 2018, Transport Canada worked collaboratively with VIA Rail, the Canada Infrastructure Bank (CIB) and Finance Canada to conduct an assessment of VIA Rail's HFR proposal. Preliminary findings indicated that HFR could be beneficial for Canadians and cost-effective for taxpayers.
  • In spring 2019, the Minister of Transport submitted an off-cycle funding request of additional funds to undertake pre-procurement and de-risking activities and make targeted investments to not preclude interoperability in Montreal. The off-cycle budget decision approved $11,096,552 in incremental funds and also repurposed funds that were held in a frozen allotment established by the 2018 HFR Treasury Board submission for interoperability.
  • In August 2019, the Government committed $71.1 million, including funds from the CIB, in order to establish a Joint Project Office comprised of the CIB and VIA Rail. This office will undertake a range of important pre-procurement and de-risking activities (e.g., legal and regulatory work related to safety; an Impact Assessment; consulting with stakeholders and Indigenous communities; and completing technical engineering, financial, and commercial analyses). This work will inform the Government's decision on next steps for the project.
  • The 2019 funding will also support investments to preserve the option of interoperability between the proposed HFR service and Montreal's future Réseau express métropolitain (REM) light rail system. Work is also planned to further explore better linking these systems near the Montréal–Trudeau International Airport in Dorval.

Contributions to employee benefit plans

Requesting $116,061 for EBP for the 2020-21 Supplementary Estimates A.

Key messages

  • The funding is for the employers' contribution to the government's Employee Benefit Plan such as health, dental, disability, and life insurance coverage.               
  • All voted items with a salary budget have an accompanying statutory component equal to 27% of the salary budget to account for the cost of employee benefit plan.
  • The EBP cost is for employees working on the High Frequency Rail ($116,061)
  • Forecasts of statutory spending by departments are included in the Estimates to provide additional information on the total estimated expenditures.
  • Forecasts of statutory spending by departments are included in the Estimates to provide additional information on the total estimated expenditures.

Canadian Air Transport Security Authority

Seeking to access $309,400,000 through the 2020-21 Supplementary Estimates A.

CATSA is seeking access to $309,400,000 in top-up funding for security screening services at designated airports and for CATSA's activities related to the commercialization process.

Key messages

  • The $309.4 million comes from an off-cycle funding decision to provide CATSA with top-up funding to support its status quo operations and its activities related to the commercialization process.
  • CATSA's mandate is to provide effective and efficient screening of persons who access aircraft or restricted areas through screening points, the property in their possession or control, and the belongings or baggage that they give to an air carrier for transport.
  • CATSA will continue to provide security screening at designated airports. The funding will cover the operating shortfall of the corporation and activities in support of CATSA's commercialization.
  • The screening services provided by CATSA protect the public by securing critical elements of the air transportation system.

If pressed: on the future governance of CATSA

  • Through Budget 2019 and the Budget Implementation Act, 2019, the Government of Canada is committed to selling CATSA's assets to an independent, not-for-profit Designated Screening Authority, and to transferring responsibility for aviation security screening services to that entity.

Background

  • CATSA is an agent parent Crown corporation, fully funded by parliamentary appropriations.  It was created in December 2001, as part of the Government of Canada's response to the events of September 11, 2001, pursuant to the Canadian Air Transport Security Authority Act (CATSA Act) and the Budget Implementation Act, 2001. It came into force on April 1, 2002.
  • CATSA's reference level is $562.7 million in voted appropriations. To maintain current operations up to the sale, the department is seeking to access additional/top-up funding of $305.8 million through the 2020-21 Supplementary Estimates A. This proposal of additional/top-up funding for Budget 2020 includes $298.1 million in regular operating costs and $7.7 million for the deployment of Full Body Scanners (FBS).
  • Funding was also allocated to CATSA to support the Government Negotiation Team with the Commercialization of CATSA. The department is seeking to access $3.6 million to be re-profiled from 2019-20 to 2020-21.
  • The Security Screening Services Commercialization Act, which was introduced via Budget Implementation Act, 2019, received royal assent on June 21, 2019, and contains provisions for the establishment of a Governor in Council-ordered body corporate incorporated under the Canada Not-for-profit Corporations Act, as well as provisions related to the sale or disposition of CATSA's assets and liabilities, closing out its affairs, and dissolution.
  • Subject to negotiations, the sale of CATSA assets is notionally set to take place in 2020-21, with the Designated Screening Authority (DSA) to start operating shortly thereafter.

Marine Atlantic Inc.

Requesting $84,900,000for the 2020-21 Supplementary Estimates A.

Marine Atlantic Inc. is seeking access to $ 84,900,000 in planned spending authorities.

Key messages

  • This funding is from an off-cycle funding decision in 2020.
  • Marine Atlantic provides the constitutionally mandated ferry service between the Island of Newfoundland and Canada's mainland.
  • Marine Atlantic will continue to provide its ferry services. The funding will cover the operating shortfall and capital requirements of the corporation.
  • Canadians will benefit from a safe, effective and efficient ferry service to and from Newfoundland.

If pressed

  • The Government of Canada recognizes that the ferry service linking Newfoundland to the mainland is a critical economic and social link.

Background

  • Marine Atlantic Inc. (MAI) is a non-agent Crown corporation incorporated under the Canada Business Corporation Act.  MAI does not have its own enabling legislation.
  • MAI is responsible for operating the ferry service between the Island of Newfoundland and Nova Scotia.  Its vessels carry people, vehicles, and commercial units that deliver goods and products to and from the Province of Newfoundland and Labrador (NL).  MAI fulfills Canada's constitutional obligation to provide a year-round ferry service between North Sydney, Nova Scotia (NS) and Port aux Basques, NL.  It also provides a seasonal service between North Sydney and Argentia, NL.
  • MAI owns three ferry terminals and operates a fleet of four ice-class RoPax vessels, which have the ability to accommodate both commercial freight and travellers at the same time. 
  • Budget 2019 provided MAI with authority and funding for the procurement of a new ferry vessel.
  • In an off cycle request, the Government provided two years of funding to MAI to address its forecast operating shortfall and capital requirements (2020-21 and 2021-22). The amount of $84.9 million in 2020-21 is the first year of this funding and will allow the corporation to continue its operations.

Via Rail Canda Inc.

Requesting $277,458,900 for the 2020-21 Supplementary Estimates A.

VIA Rail Canada Inc. (VIA) is seeking access to $277,458,900 in planned spending authorities.

Key messages

  • $264,608,900 in funding to support status quo passenger rail operations is from an off-cycle funding decision in 2020.
  • $12,850,000 in funding to support the High Frequency Rail proposal is from Budget 2018 and an off-cycle funding decision in 2019.
  • Funding will be used to provide a national passenger rail service, both normal operations and state of good repair capital investments.
  • Funding will be used to undertake activities to explore the possibility of implementing the High Frequency Rail proposal.
  • Funds are intended to stabilize normal operations and keep VIA's asset base in a state of good repair.
  • Funds will be used by VIA to conduct de-risking and pre-procurement activities with the Canada Infrastructure Bank, as well as for regulatory work required to enable High Frequency Rail operations.
  • Funds will support VIA in maintaining a safe, efficient, and reliable passenger rail service for travellers across Canada.
  • The outcomes of the de-risking and regulatory development work will support the Government of Canada in taking a decision on whether to implement High Frequency Rail.

If pressed

  • VIA faced significant disruptions to its services in February and March 2020 as a result of protestors blockading host rail infrastructure. This service disruption, compounded with reduced service and ridership as a result of the COVID-19 (coronavirus) outbreak, has created financial uncertainty for VIA in 2020-2021.
  • Before making a decision on whether to implement HFR, the Government will carefully consider the analysis provided by the Joint Project Office and Transport Canada. This decision will consider the best interests of Canadian travellers, value for money, and respect for the highest safety and security standards.

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