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Oct/5/23 6:38:33 p.m.
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The question is on the motion. If a member participating in person wishes that the motion be carried or carried on division, or if a member of a recognized party participating in person wishes to request a recorded division, I would invite them to rise and indicate it to the Chair.

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Hon. Ed Fast

Oct/5/23 6:39:16 p.m.
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Mr. Speaker, I would ask for a recorded division.

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The Deputy Speaker

Oct/5/23 6:39:22 p.m.
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Re: Bill C-314

Pursuant to Standing Order 93, the division stands deferred until Wednesday, October 18, at the expiry of the time provided for Oral Questions.

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Ms. Lori Idlout (Nunavut, NDP)

Oct/5/23 6:39:56 p.m.
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Uqaqtittiji, the cost of flights in Nunavut is astronomical. All 25 communities that I represent are fly-in communities. A flight to Ottawa can cost over $5,000. It costs more to fly within our own country than it does to destinations such as Mexico, London or Nuuk. Most of my constituents cannot choose to take vacations, because it is simply not affordable. There are no other options. Flying is an unfortunate reality of living in Nunavut, yet Nunavut does not have adequate airport infrastructure to ensure that prices are affordable. Nunavummiut have seen increases in fares since the government first approved the Canadian North-First Air merger. I understand these increases were a result of Transport Canada undertakings that made it impossible for Canadian North to maintain sustainable operations. It is difficult and expensive to run an airline in a territory as large and sparsely populated as Nunavut. Imposing onerous conditions on one of Nunavut's only airlines is not the solution. The 25% annual fare increase that Transport Canada has allowed for is also far too high. That is four times the rate of inflation. For a $3,000 flight between Ottawa and Iqaluit, the fare could be raised by $750 this year. When the government announced its new deal with Canadian North last April, they promised to maintain fares and departures while providing a more efficient service. In the last few months, I have received many complaints about the disruptions experienced by my constituents. Gjoa Haven only has one or two flights per week, which can leave families in southern facilities for extended periods of time. For example, if a person from Gjoa Haven has a medical appointment in Yellowknife, that patient will most likely end up in Yellowknife for weeks because of cancelled or overbooked flights. These are patients who, because of the lack of a health care system, are forced to leave their territory to access basic health care services that are available to the rest of Canada. The mayor of Arctic Bay wrote to me, saying they are seeing nine fewer flights per week compared with last year. This is unacceptable for communities that rely on these flights for food, health, education, tourism, infrastructure and economic development. My office is hearing many similar stories from constituents who have been stranded due to cancellations, delays or rescheduled flights. Nunavummiut struggle every day with the excessive cost of living in the North. Not only are they battling the rising costs of food, fuel and housing, but they are also paying thousands of dollars more for essential appointments. According to the federal government release, the deal signed with Canadian North would provide “the access to air services they need, while at the same time ensuring Canadian North remains a viable service provider”. When will the government admit that it will not do so?

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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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Ms. Lori Idlout

Oct/5/23 6:46:59 p.m.
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Uqaqtittiji, I would like to thank the parliamentary secretary for his response. I did have the pleasure of travelling with him when he was part of the indigenous and northern affairs committee, and know that he has direct experience with the challenges of travelling in my region. Another example of what it is like to fly in Nunavut is that one of my constituents was on a routine flight from Iqaluit to Ottawa. This flight was cancelled twice, then re-booked for days later. It would have caused her to miss an important meeting. As a result, she had to take a much more expensive flight with Air Canada through Edmonton. She was told that she was not eligible for compensation and would have to dispute her claim through the Canadian Transportation Agency. She was also advised that this process would take up to 18 months. This is unacceptable. Nunavummiut do not have thousands of dollars and many months to wait for compensation for essential travel. Are these delays what the government had in mind when it introduced the air passenger bill of rights?

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Mr. Vance Badawey

Oct/5/23 6:48:11 p.m.
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Mr. Speaker, the Government of Canada is concerned with ensuring that northern Canadians have access to the air transport they require. COVID-19 placed serious pressure on the ability of Canadian North to continue to provide services to northern Canadians while at the same time avoiding financial losses. To ensure ongoing service in the north, Transport Canada recently reached the agreement I spoke about earlier with Canadian North to vary their merger related terms and conditions. These aim to strike a balance between addressing public interest concerns while maintaining the sustainability of the airline. In conclusion, the Government of Canada, in approving these new terms and conditions, ensured there remained safeguards for Canadians, especially in the north, such that each community will continue to be served and that fare increases would be representative of the new realities of the market and capped to ensure that the balance is maintained.

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The Deputy Speaker

Oct/5/23 6:49:22 p.m.
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The motion that the House do now adjourn is deemed to have been adopted. Accordingly, the House stands adjourned until tomorrow at 10 a.m. pursuant to Standing Order 24(1). (The House adjourned at 6:49 p.m.)

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