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House Hansard - 230

44th Parl. 1st Sess.
October 5, 2023 10:00AM
Context: House Hansard - 230 - Oct/5/23
Mr. Randall Garrison (Esquimalt—Saanich—Sooke, NDP)
  • Oct/5/23 10:54:10 a.m.
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  • Re: Bill C-56 
Madam Speaker, the hon. member's speech typifies what we are hearing from the Liberals. There is a recognition of the crisis of high food prices, and they talk about stabilizing them. That would be stabilizing them at the highest level ever with some of the highest margins ever. They have called in the CEOs, who were previously found guilty of price-fixing with bread. Studies have shown that margins have gone up during the pandemic. What is the member expecting these CEOs to do with these voluntary measures?
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Context: House Hansard - 230 - Oct/5/23
Mr. Vance Badawey (Parliamentary Secretary to the Minister of Transport, Lib.)
  • Oct/5/23 6:43:44 p.m.
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Mr. Speaker, the First Air-Canadian North merger was approved, as was mentioned earlier, in 2019, with terms and conditions around pricing, scheduling and employment, amongst other elements that would be in place until mid-2026. The sudden onset of the pandemic, which drastically changed the air transportation landscape in northern Canada, has had a lasting impact on Canadian North's ability to comply with these conditions while continuing to serve communities, return to profitability and maintain services. Passenger levels in the North remain below 2019 levels and are lower than in other regions throughout the country. The lasting impacts of COVID have required us to vary the original terms and conditions, while at the same time ensuring that important safeguards remain in place for northern Canadians for the remainder of the period subject to obligations. In this context, Transport Canada has negotiated new terms and conditions with Canadian North, which were subsequently approved by the Governor in Council. These conditions are intended to strike a balance in ensuring the airline's continued operations and financial resiliency, while maintaining some conditions to maintain the public interest, such as imposing caps on fare increases and profit margins, as well as ensuring the balance of service. These terms and conditions will be in place for the next three years. Furthermore, the new terms and conditions include an obligation by Canadian North to be subject to assessment by an independent monitor, reporting to the Minister of Transport, and to provide financial and scheduling data to ensure compliance with the new terms and conditions. The Government of Canada shares concerns over air affordability and accessibility in northern Canada, which is why the Government of Canada insisted on maintaining safeguards for Canadians when deciding to vary the terms and conditions. At the same time, we have acted to ensure that Canadians in northern communities continue to receive the air services that they rely on. It is our understanding that the merger related terms and conditions to which Canadian North is subject do not supersede the contractual obligations it has with the territories around medical and duty travel. In this context, Canadian North will need to adhere to the conditions laid out in the agreements it holds with the territories. I will add, and the member does recognize this, that we on the transport committee are working with the member for Yukon to look at these arrangements, as well as other arrangements to, once again, strike that much-needed balance in the northern part of our country.
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