Canada Transportation Act

Contents

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1Short title#

This Act may be cited as the Canada Transportation Act.

2Binding on Her Majesty#

This Act is binding on Her Majesty in right of Canada or a province.

3Application generally#

This Act applies in respect of transportation matters under the legislative authority of Parliament.

4Conflicts#

(1)Subject to subsection (2), where there is a conflict between any order or regulation made under this Act in respect of a particular mode of transportation and any rule, order or regulation made under any other Act of Parliament in respect of that particular mode of transportation, the order or regulation made under this Act prevails.

(2)Subject to subsection (3), nothing in or done under the authority of this Act, other than Division IV of Part III, affects the operation of the Competition Act.

(3)In the event of any inconsistency or conflict between an international agreement or convention respecting air services to which Canada is a party and the Competition Act, the provisions of the agreement or convention prevail to the extent of the inconsistency or conflict.

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National Transportation Policy

5Declaration#

It is declared that a competitive, economic and efficient national transportation system that meets the highest practicable safety and security standards and contributes to a sustainable environment and makes the best use of all modes of transportation at the lowest total cost is essential to serve the needs of its users, advance the well-being of Canadians and enable competitiveness and economic growth in both urban and rural areas throughout Canada. Those objectives are most likely to be achieved when

(a)competition and market forces, both within and among the various modes of transportation, are the prime agents in providing viable and effective transportation services;

(b)regulation and strategic public intervention are used to achieve economic, safety, security, environmental or social outcomes that cannot be achieved satisfactorily by competition and market forces and do not unduly favour, or reduce the inherent advantages of, any particular mode of transportation;

(c)rates and conditions do not constitute an undue obstacle to the movement of traffic within Canada or to the export of goods from Canada;

(d)the transportation system is accessible without undue obstacle to the mobility of all persons;

(d.1)the transportation system is accessible without barriers to persons with disabilities; and

(e)governments and the private sector work together for an integrated transportation system.

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Interpretation

6Definitions#

In this Act,

Agency means the Canadian Transportation Agency continued by subsection 7(1); (Office)

carrier means a person who is engaged in the transport of goods or passengers by any means of transport under the legislative authority of Parliament; (transporteur)

Chairperson means the Chairperson of the Agency; (président)

class 1 rail carrier means

(a)the Canadian National Railway Company,

(b)the Canadian Pacific Railway Company,

(c)BNSF Railway Company,

(d)CSX Transportation, Inc.,

(e)Norfolk Southern Railway Company,

(f)Union Pacific Railroad Company, and

(g)any railway company, as defined in section 87, that is specified in the regulations; (transporteur ferroviaire de catégorie 1)

goods includes rolling stock and mail; (marchandises)

member means a member of the Agency appointed under subsection 7(2) and includes a temporary member; (membre)

Minister means the Minister of Transport; (ministre)

radioactive material has the same meaning as in subsection 1(1) of the Packaging and Transport of Nuclear Substances Regulations, 2015. It includes a dangerous good with any of UN numbers 2908 to 2913, 2915 to 2917, 2919, 2977, 2978, 3321 to 3333 and 3507 that are set out in Column 1 of the Dangerous Goods List in Chapter 3.2 of the Recommendations on the Transport of Dangerous Goods — Model Regulations, Eighteenth revised edition, 2013, published by the United Nations; (matière radioactive)

rolling stock includes a locomotive, engine, motor car, tender, snow-plough, flanger and any car or railway equipment that is designed for movement on its wheels on the rails of a railway; (matériel roulant)

shipper means a person who sends or receives goods by means of a carrier or intends to do so; (expéditeur)

sitting day of Parliament means a day on which either House of Parliament sits; (jour de séance)

superior court means

(a)in Ontario, the Superior Court of Justice,

(b)in Quebec, the Superior Court,

(c)in New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen’s Bench,

(d)in Nova Scotia, British Columbia, Prince Edward Island, Yukon and the Northwest Territories, the Supreme Court,

(e)in Newfoundland and Labrador, the Trial Division of the Supreme Court, and

(f)in Nunavut, the Nunavut Court of Justice; (cour supérieure)

temporary member means a temporary member of the Agency appointed under subsection 9(1); (membre temporaire)

TIH (Toxic Inhalation Hazard) material means a gas or substance that is included in Class 2.3 of the Transportation of Dangerous Goods Regulations or that, under paragraph 2.28(c) of those Regulations, is included in Class 6.1 of those Regulations. It includes a dangerous good with a UN number that is set out in Column 1 of the Dangerous Goods List in Chapter 3.2 of the Recommendations on the Transport of Dangerous Goods – Model Regulations, Eighteenth revised edition, 2013, published by the United Nations and that is listed in Schedule III; (matière toxique par inhalation)

Vice-Chairperson means the Vice-Chairperson of the Agency. (vice-président)

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Power of the Governor in Council

6.1Governor in Council#

The Governor in Council may make regulations specifying railway companies for the purpose of paragraph (g) of the definition class 1 rail carrier.^note

6.11Designated person#

The Governor in Council may, by regulations, designate a person for the purposes of subsections 50(1.001) and (3) and 51(1), (3) and (4).^note

Electronic Administration and Enforcement

6.2Electronic means#

(1)If the Minister administers or enforces an Act of Parliament, the Minister may do so using electronic means.

(2)For greater certainty, any person or class of persons who are designated by the Minister under an Act of Parliament for the purposes of the administration and enforcement of that Act may, in the exercise of their powers or the performance of their duties and functions, use the electronic means that are made available or specified by the Minister.

(3)For greater certainty, a person who has been authorized by the Minister to do anything that may be done by the Minister under an Act of Parliament, may do so using the electronic means that are made available or specified by the Minister.

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6.3Provision of information#

For the purposes of sections 6.4 and 6.5, providing information includes

(a)making an application, request or decision;

(b)giving notice; and

(c)submitting a document.

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6.4Conditions for electronic version#

For the purposes of an Act of Parliament that the Minister administers or enforces, a requirement under that Act to provide a signature or to provide information in a paper-based format is met if

(a)an electronic version of the signature or information is provided by electronic means that are made available or specified by the Minister; and

(b)any other condition that is provided for in regulations made under paragraph 6.5(a) is met.

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6.5Regulations#

The Governor in Council may make regulations

(a)respecting the application of sections 6.2 and 6.4, including the technology or format to be used, or the standards, specifications or processes to be followed, including for the making or verifying of an electronic signature and the manner in which it is to be used;

(b)setting out the circumstances in which a person who must provide a signature or information under an Act that the Minister administers or enforces is required to do so using electronic means and specifying those means;

(c)authorizing the Minister to permit or direct the use of electronic means, other than those referred to in paragraph (b), or non-electronic means and setting out the circumstances in which the Minister may do so; and

(d)respecting the date and time when, and the place where, the electronic version of information is deemed to be sent or received.

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Exemptions

6.6Application#

(1)A person may, in the form and manner specified by the Minister, apply to the Minister for an order that exempts any person or thing, or class of persons or things, from the application of any provision of an Act of Parliament that the Minister administers or enforces or any provision of an instrument made under that Act.

(2)The Minister may, on receiving the application, require the provision of any information that is necessary for the Minister to process and assess the application.

(3)The Minister may refuse to process or assess the application if the applicant has not paid an amount that, under an Act of Parliament that the Minister administers or enforces, constitutes a debt due to Her Majesty in right of Canada.

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6.7Order#

(1)The Minister may, by order, exempt, for a period of not more than five years and subject to any conditions that the Minister considers appropriate, any person or thing, or class of persons or things, from the application of any provision of an Act of Parliament that the Minister administers or enforces or any provision of an instrument made under that Act, if the Minister is of the opinion that the exemption, having regard to the purposes of that Act, is in the public interest and that the exemption promotes innovation in transportation through research, development or testing.

(2)The Minister may, by order, extend the period of an exemption once, for a further period of not more than five years, subject to any conditions that the Minister considers appropriate.

(3)The Statutory Instruments Act does not apply to an order made under this section that applies to a single person or thing.

(4)The Minister shall ensure that an order referred to in subsection (3) is accessible to the public unless the Minister is of the opinion that it would be inappropriate for reasons that include safety or security considerations or the protection of confidential or personal information.

(5)For greater certainty, the making of an order under subsection (1) does not preclude or limit the exercise of a power to exempt under an Act of Parliament that is administered or enforced by the Minister and vice versa.

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6.8Cost recovery#

The Minister may recover any costs associated with the processing and assessing of an application under section 6.6 and may refuse to make the order requested until those costs are recovered from the applicant.^note

Part I · Administration

Canadian Transportation Agency

Continuation and Organization

7Agency continued#

(1)The agency known as the National Transportation Agency is continued as the Canadian Transportation Agency.

(2)The Agency shall consist of not more than five members appointed by the Governor in Council, and such temporary members as are appointed under subsection 9(1), each of whom must, on appointment or reappointment and while serving as a member, be a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act.

(3)The Governor in Council shall designate one of the members appointed under subsection (2) to be the Chairperson of the Agency and one of the other members appointed under that subsection to be the Vice-Chairperson of the Agency.

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8Term of members#

(1)Each member appointed under subsection 7(2) shall hold office during good behaviour for a term of not more than five years and may be removed for cause by the Governor in Council.

(2)A member appointed under subsection 7(2) is eligible to be reappointed on the expiration of a first or subsequent term of office.

(3)If a member appointed under subsection 7(2) ceases to hold office, the Chairperson may authorize the member to continue to hear any matter that was before the member on the expiry of the member’s term of office and that member is deemed to be a member of the Agency, but that person’s status as a member does not preclude the appointment of up to five members under subsection 7(2) or up to three temporary members under subsection 9(1).

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9Temporary members#

(1)The Minister may appoint temporary members of the Agency from the roster of individuals established by the Governor in Council under subsection (2).

(2)The Governor in Council may appoint any individual to a roster of candidates for the purpose of subsection (1).

(3)Not more than three temporary members shall hold office at any one time.

(4)A temporary member shall hold office during good behaviour for a term of not more than one year and may be removed for cause by the Governor in Council.

(5)A person who has served two consecutive terms as a temporary member is not, during the twelve months following the completion of the person’s second term, eligible to be reappointed to the Agency as a temporary member.

10Members — conflicts of interest#

(1)A member appointed under subsection 7(2) shall not, directly or indirectly, as owner, shareholder, director, officer, partner or otherwise,

(a)be engaged in a transportation undertaking or business; or

(b)have an interest in a transportation undertaking or business or an interest in the manufacture or distribution of transportation plant or equipment, unless the distribution is merely incidental to the general merchandising of goods.

(2)During the term of office of a temporary member, the member shall not accept or hold any office or employment that is inconsistent with the member’s duties under this Act.

(3)If an interest referred to in subsection (1) vests in a member appointed under subsection 7(2) for the benefit of the member by will or succession, the member shall, within three months after the vesting, absolutely dispose of the interest.

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Remuneration

11Remuneration#

(1)A member shall be paid such remuneration and allowances as may be fixed by the Governor in Council.

(2)Each member is entitled to be paid reasonable travel and living expenses incurred by the member in carrying out duties under this Act or any other Act of Parliament while absent from the member’s ordinary place of work.

12Members — retirement pensions#

(1)A member appointed under subsection 7(2) is deemed to be employed in the public service for the purposes of the Public Service Superannuation Act.

(2)A temporary member is deemed not to be employed in the public service for the purposes of the Public Service Superannuation Act unless the Governor in Council, by order, deems the member to be so employed for those purposes.

(3)For the purposes of the Government Employees Compensation Act and any regulation made pursuant to section 9 of the Aeronautics Act, a member is deemed to be an employee in the federal public administration.

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Chairperson

13Duties of Chairperson#

The Chairperson is the chief executive officer of the Agency and has the supervision over and direction of the work of the members and its staff, including the apportionment of work among the members and the assignment of members to deal with any matter before the Agency.

14Absence of Chairperson#

In the event of the absence or incapacity of the Chairperson or if the office of Chairperson is vacant, the Vice-Chairperson has all the powers and shall perform all the duties and functions of the Chairperson.

15Absence of both Chairperson and Vice-Chairperson#

The Chairperson may authorize one or more of the members to act as Chairperson for the time being if both the Chairperson and Vice-Chairperson are absent or unable to act.

Quorum

16Quorum#

(1)Subject to the Agency’s rules, two members constitute a quorum.

(2)Where a member who is conducting a hearing in respect of a matter becomes incapacitated or dies during the hearing or after the conclusion of the hearing but before rendering a decision and quorum is lost as a result, the Chairperson may, with the consent of all the parties to the hearing,

(a)if the incapacity or death occurs during the hearing, authorize another member to continue the hearing and render a decision, or

(b)if the incapacity or death occurs after the conclusion of the hearing, authorize another member to examine the evidence presented at the hearing and render a decision,

and in either case, the quorum in respect of the matter is deemed never to have been lost.

(3)Where a member who is conducting a hearing in respect of a matter becomes incapacitated or dies during the hearing and quorum is not lost as a result, another member may be assigned by the Chairperson to participate in the hearing and in the rendering of a decision.

Rules

17Rules#

The Agency may make rules respecting

(a)the sittings of the Agency and the carrying on of its work;

(b)the manner of and procedures for dealing with matters and business before the Agency, including the circumstances in which hearings may be held in private; and

(c)the number of members that are required to hear any matter or perform any of the functions of the Agency under this Act or any other Act of Parliament.

Head Office

18Head office#

(1)The head office of the Agency shall be in the National Capital Region described in the schedule to the National Capital Act.

(2)The members appointed under subsection 7(2) shall reside in the National Capital Region described in the schedule to the National Capital Act or within any distance of it that the Governor in Council determines.

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Staff

19Secretary, officers and employees#

The Secretary of the Agency and the other officers and employees that are necessary for the proper conduct of the business of the Agency shall be appointed in accordance with the Public Service Employment Act.

20Technical experts#

The Agency may appoint and, subject to any applicable Treasury Board directive, fix the remuneration of experts or persons who have technical or special knowledge to assist the Agency in an advisory capacity in respect of any matter before the Agency.

Records

21Duties of Secretary#

(1)The Secretary of the Agency shall

(a)maintain a record in which shall be entered a true copy of every rule, order, decision and regulation of the Agency and any other documents that the Agency requires to be entered in it; and

(b)keep at the Agency’s office a copy of all rules, orders, decisions and regulations of the Agency and the records of proceedings of the Agency.

(2)The entry of a document in the record referred to in paragraph (1)(a) shall constitute the original record of the document.

22Copies of documents obtainable#

On the application of any person, and on payment of a fee fixed by the Agency, the Secretary of the Agency or, in the absence of the Secretary, the person assigned by the Chairperson to act in the absence shall issue under the seal of the Agency to the applicant a certified copy of any rule, order, regulation or any other document that has been issued by the Agency.

23Judicial notice of documents#

(1)Judicial notice shall be taken of a document issued by the Agency under its seal without proof of the signature or official character of the person appearing to have signed it.

(2)A document purporting to be certified by the Secretary of the Agency as being a true copy of a document deposited or filed with or approved by the Agency, or any portion of such a document, is evidence that the document is so deposited, filed or approved and, if stated in the certificate, of the time when the document was deposited, filed or approved.

Powers of Agency

24Policy governs Agency#

The powers, duties and functions of the Agency respecting any matter that comes within its jurisdiction under an Act of Parliament shall be exercised and performed in conformity with any policy direction issued to the Agency under section 43.

25Agency powers in general#

The Agency has, with respect to all matters necessary or proper for the exercise of its jurisdiction, the attendance and examination of witnesses, the production and inspection of documents, the enforcement of its orders or regulations and the entry on and inspection of property, all the powers, rights and privileges that are vested in a superior court.

25.1Power to award costs#

(1)Subject to subsections (2) to (4), the Agency has all the powers that the Federal Court has to award costs in any proceeding before it.

(2)Costs may be fixed in any case at a sum certain or may be taxed.

(3)The Agency may direct by whom and to whom costs are to be paid and by whom they are to be taxed and allowed.

(4)The Agency may make rules specifying a scale under which costs are to be taxed.

26Compelling observance of obligations#

The Agency may require a person to do or refrain from doing any thing that the person is or may be required to do or is prohibited from doing under any Act of Parliament that is administered in whole or in part by the Agency.

27Relief#

(1)The Agency may grant the whole or part of an application, or may make any order or grant any further or other relief that the Agency considers appropriate.

(2) and (3)[Repealed, 2008, c. 5, s. 1] (repealed)

(4)The Agency may, on terms or otherwise, make or allow any amendments in any proceedings before it.

(5)[Repealed, 2008, c. 5, s. 1] (repealed)

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28Orders#

(1)The Agency may in any order direct that the order or a portion or provision of it shall come into force

(a)at a future time,

(b)on the happening of any contingency, event or condition specified in the order, or

(c)on the performance, to the satisfaction of the Agency or a person named by it, of any terms that the Agency may impose on an interested party,

and the Agency may direct that the whole or any portion of the order shall have force for a limited time or until the happening of a specified event.

(2)The Agency may, instead of making an order final in the first instance, make an interim order and reserve further directions either for an adjourned hearing of the matter or for further application.

29Time for making decisions#

(1)The Agency shall make its decision in any proceedings before it as expeditiously as possible, but no later than one hundred and twenty days after the originating documents are received, unless the parties agree to an extension or this Act or a regulation made under subsection (2) provides otherwise.

(2)The Governor in Council may, by regulation, prescribe periods of less than one hundred and twenty days within which the Agency shall make its decision in respect of such classes of proceedings as are specified in the regulation.

30Pending proceedings#

The fact that a suit, prosecution or proceeding involving a question of fact is pending in any court does not deprive the Agency of jurisdiction to hear and determine the same question of fact.

31Fact finding is conclusive#

The finding or determination of the Agency on a question of fact within its jurisdiction is binding and conclusive.

32Review of decisions and orders#

The Agency may review, rescind or vary any decision or order made by it or may re-hear any application before deciding it if, in the opinion of the Agency, since the decision or order or the hearing of the application, there has been a change in the facts or circumstances pertaining to the decision, order or hearing.

33Enforcement of decision or order#

(1)A decision or order of the Agency may be made an order of the Federal Court or of any superior court and is enforceable in the same manner as such an order.

(2)To make a decision or order an order of a court, either the usual practice and procedure of the court in such matters may be followed or the Secretary of the Agency may file with the registrar of the court a certified copy of the decision or order, signed by the Chairperson and sealed with the Agency’s seal, at which time the decision or order becomes an order of the court.

(3)Where a decision or order that has been made an order of a court is rescinded or varied by a subsequent decision or order of the Agency, the order of the court is deemed to have been cancelled and the subsequent decision or order may be made an order of the court.

(4)The Agency may, before or after one of its decisions or orders is made an order of a court, enforce the decision or order by its own action.

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34Fees and charges#

(1)The Agency may, after consulting with the Minister, make rules respecting the fees and charges to be paid in relation to the administration or enforcement of any provision of this Act or the regulations whose administration or enforcement is the responsibility of the Agency.

(2)Before making a rule under subsection (1), the Agency shall consult with any persons or organizations that the Agency considers to be interested in the matter.

(3)Fees or charges required to be paid under this section constitute a debt to His Majesty in right of Canada and may be recovered as such in a court of competent jurisdiction.

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35Fees for witnesses#

Every person summoned to attend before the Agency under this Part or before a person making an inquiry under this Part shall receive the fees and allowances for so doing that the Agency may, by regulation, prescribe.

36Approval of regulations required#

(1)Every regulation made by the Agency under this Act must be made with the approval of the Governor in Council.

(2)The Agency shall give the Minister notice of every regulation proposed to be made by the Agency under this Act.

Mediation

36.1Request by parties#

(1)If there is a dispute concerning a matter within the Agency’s jurisdiction, all the parties to the dispute may, by agreement, make a request to the Agency for mediation. On receipt of the request, the Agency shall refer the dispute for mediation.

(2)When a dispute is referred for mediation, the Chairperson shall appoint one or two persons to mediate the dispute.

(3)A person who is appointed to mediate a dispute may not act in any other proceedings before the Agency in relation to that matter.

(4)All matters relating to the mediation of a dispute shall be kept confidential, unless the parties to the dispute otherwise agree, and information provided by a party for the purposes of mediation shall not be used for any other purpose without the consent of that party.

(5)Unless the parties to a dispute otherwise agree, the mediation of the dispute shall be completed within 30 days after the dispute is referred for mediation.

(6)The mediation has the effect of

(a)staying for the period of the mediation any proceedings before the Agency in so far as they relate to a matter that is the subject of the mediation; and

(b)extending the time within which the Agency may make a decision or determination under this Act with regard to those proceedings by the period of the mediation.

(7)An agreement that is reached as a result of mediation may be filed with the Agency and, after filing, is enforceable as if it were an order of the Agency.

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Information and Informal Dispute Resolution Services

36.11Information and guidance#

(1)The Agency shall take measures to inform the public in respect of the provisions of Parts III and IV, including

(a)publishing general information on its Internet site; and

(b)providing information and guidance to any interested person on the manner in which remedies under those provisions may be accessed, having regard to their particular circumstances.

(2)A member of the Agency or its staff may attempt to resolve in an informal manner with a railway company any issue raised by an interested person to whom it has provided information and guidance. In doing so, the member or staff shall not reveal the identity of the interested person without their consent.

(3)A person who exercises the powers or performs the duties or functions under paragraph (1)(b) or subsection (2) shall not act in any proceedings before the Agency that are related to an issue in respect of which the person provided information, guidance or informal dispute resolution services.

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Mediation or Arbitration

36.2Request by all parties#

(1)If sections 36.1 and 169.1 do not apply, the Agency may mediate or arbitrate a dispute relating to any railway matter covered under Part III — other than Division VI.2 — or Part IV, or to the application of any rate or charge for the movement of goods by railways or for the provision of incidental services, if requested to do so by all parties to the dispute.

(1.1)The Agency may establish a roster of persons, which may include members and staff of the Agency, to act as mediators or arbitrators.

(2)The parties are jointly and severally, or solidarily, liable to reimburse the Agency its costs arising from the mediation or arbitration.

(3)The person who acts as mediator or arbitrator may not act in any other proceedings before the Agency in relation to any matter that was at issue in the mediation or arbitration.

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Inquiries

37Inquiry into complaint#

The Agency may inquire into, hear and determine a complaint concerning any act, matter or thing prohibited, sanctioned or required to be done under any Act of Parliament that is administered in whole or in part by the Agency.

38Appointment of person to conduct inquiry#

(1)The Agency may appoint a member, or an employee of the Agency, to make any inquiry that the Agency is authorized to conduct and report to the Agency.

(2)On receipt of the report under subsection (1), the Agency may adopt the report as a decision or order of the Agency or otherwise deal with it as it considers advisable.

39Powers on inquiry#

A person conducting an inquiry may, for the purposes of the inquiry,

(a)enter and inspect any place, other than a dwelling-house, or any structure, work, rolling stock or ship that is the property or under the control of any person the entry or inspection of which appears to the inquirer to be necessary; and

(b)exercise the same powers as are vested in a superior court to summon witnesses, enforce their attendance and compel them to give evidence and produce any materials, books, papers, plans, specifications, drawings and other documents that the inquirer thinks necessary.

Review and Appeal

40Governor in Council may vary or rescind orders, etc.#

The Governor in Council may, at any time, in the discretion of the Governor in Council, either on petition of a party or an interested person or of the Governor in Council’s own motion, vary or rescind any decision, order, rule or regulation of the Agency, whether the decision or order is made inter partes or otherwise, and whether the rule or regulation is general or limited in its scope and application, and any order that the Governor in Council may make to do so is binding on the Agency and on all parties.

41Appeal from Agency#

(1)An appeal lies from the Agency to the Federal Court of Appeal on a question of law or a question of jurisdiction on leave to appeal being obtained from that Court on application made within one month after the date of the decision, order, rule or regulation being appealed from, or within any further time that a judge of that Court under special circumstances allows, and on notice to the parties and the Agency, and on hearing those of them that appear and desire to be heard.

(2)No appeal, after leave to appeal has been obtained under subsection (1), lies unless it is entered in the Federal Court of Appeal within sixty days after the order granting leave to appeal is made.

(3)An appeal shall be heard as quickly as is practicable and, on the hearing of the appeal, the Court may draw any inferences that are not inconsistent with the facts expressly found by the Agency and that are necessary for determining the question of law or jurisdiction, as the case may be.

(4)The Agency is entitled to be heard by counsel or otherwise on the argument of an appeal.

Report of Agency

42Agency’s report#

(1)Each year the Agency shall, before the end of July, make a report on its activities for the preceding year and submit it, through the Minister, to the Governor in Council describing briefly, in respect of that year,

(a)applications to the Agency and the findings on them; and

(b)the findings of the Agency in regard to any matter or thing respecting which the Agency has acted on the request of the Minister.

(2)The Agency shall include in every report referred to in subsection (1)

(a)the Agency’s assessment of the operation of this Act and any difficulties observed in the administration of this Act;

(b)in respect of the year to which the report relates, information about, including the number of, the following:

(i)inspections conducted under this Act for a purpose related to verifying compliance or preventing non-compliance with any provision of regulations made under subsection 170(1) or with any of sections 60 to 62 of the Accessible Canada Act,

(ii)orders made under section 181.2,

(iii)orders, in writing, made under section 26 that require any person to do or to refrain from doing any thing that they are or may be required to do or are prohibited from doing under any provision of regulations made under subsection 170(1) or any of sections 60 to 62 of the Accessible Canada Act,

(iv)notices of violation issued under section 180 that identify a violation referred to in subsection 177(3), and

(v)inquiries made under any of sections 172, 172.1 and 172.3;

(c)the Agency’s observations about whether the information referred to in paragraph (b) discloses any systemic or emerging issues in respect of any matter or thing that concerns transportation to which the legislative authority of Parliament extends and that relates to the mobility of persons with disabilities; and

(d)any other information prescribed by regulations made under subsection (2.01).

(2.01)For the purpose of paragraph (2)(d), the Governor in Council may make regulations prescribing information about any matter or thing that concerns transportation to which the legislative authority of Parliament extends and that relates to the mobility of persons with disabilities.

(2.1)The report shall include the number and nature of the applications, complaints and submissions for arbitration made under Parts III and IV, the manner they were dealt with and the systemic trends observed. The report shall also include the number of disputes that were mediated by the Agency and the number that were resolved through mediation by the Agency.

(2.2)The Agency shall ensure that the report does not include any confidential information.

(3)The Minister shall have a copy of each report made under this section laid before each House of Parliament on any of the first thirty days on which that House is sitting after the Minister receives it.

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Governor in Council

Directions to Agency

43Policy directions#

(1)The Governor in Council may, at the request of the Agency or of the Governor in Council’s own motion, issue policy directions to the Agency concerning any matter that comes within the jurisdiction of the Agency and every such direction shall be carried out by the Agency under the Act of Parliament that establishes the powers, duties and functions of the Agency in relation to the subject-matter of the direction.

(2)A direction issued under subsection (1) shall not affect a matter that is before the Agency on the date of the direction and that relates to a particular person.

44Delay of binding effect#

A direction issued under section 43 is not binding on the Agency until the expiration of the thirtieth sitting day of Parliament after the direction has been laid before both Houses of Parliament by or on behalf of the Minister, unless the direction has been previously laid before both Houses of Parliament in proposed form by or on behalf of the Minister and thirty sitting days of Parliament have expired after the proposed direction was laid.

45Referral to committee#

Where a direction referred to in section 43 is issued or a proposed direction referred to in section 44 is laid before a House of Parliament, it shall be referred without delay by that House to the committee of that House that it considers appropriate to deal with the subject-matter of the direction or proposed direction.

46Consultation required#

Before a direction referred to in section 43 is issued or a proposed direction referred to in section 44 is laid before a House of Parliament, the Minister shall consult with the Agency with respect to the nature and subject-matter of the direction or proposed direction.

Extraordinary Disruptions

47Governor in Council may prevent disruptions#

(1)Where the Governor in Council is of the opinion that

(a)an extraordinary disruption to the effective continued operation of the national transportation system exists or is imminent, other than a labour disruption,

(b)failure to act under this section would be contrary to the interests of users and operators of the national transportation system, and

(c)there are no other provisions in this Act or in any other Act of Parliament that are sufficient and appropriate to remedy the situation and counter the actual or anticipated damage caused by the disruption,

the Governor in Council may, on the recommendation of the Minister and the minister responsible for the Bureau of Competition Policy, by order, take any steps, or direct the Agency to take any steps, that the Governor in Council considers essential to stabilize the national transportation system, including the imposition of capacity and pricing restraints.

(2)Before recommending that an order be made under this section, the Minister may consult with any person who the Minister considers may be affected by the order.

(3)An order made under this section shall have effect for no more than ninety days after the order is made.

(4)The Minister shall cause any order made under this section to be laid before both Houses of Parliament within seven sitting days after the order is made.

(5)Every order laid before Parliament under subsection (4) shall be referred for review to the Standing committee designated by Parliament for the purpose.

(6)Where a resolution directing that an order made under this section be revoked is adopted by both Houses of Parliament before the expiration of thirty sitting days of Parliament after the order is laid before both Houses of Parliament, the order shall cease to have effect on the day that the resolution is adopted or, if the adopted resolution specifies a day on which the order shall cease to have effect, on that specified day.

(7)Notwithstanding subsection 4(2), this section and anything done under the authority of this section prevail over the Competition Act.

(8)Every person who contravenes an order made under this section is guilty of an offence and liable on summary conviction

(a)in the case of an individual, to a fine not exceeding $5,000, and

(b)in the case of a corporation, to a fine not exceeding $100,000,

for each day the person contravenes the order.

Regulations

47.1Performance data of air carriers#

The Governor in Council may make regulations requiring air carriers to publish information respecting their performance on their Internet site.^note

Minister

Authorization

48Powers and duties#

The Minister may, in writing, authorize any person designated by the Minister to exercise any of the powers and perform any of the duties of the Minister under this Act, either generally or otherwise provided in the instrument of authorization.^note

Fees and Charges

48.1Regulations#

The Minister may make regulations respecting fees and charges to be paid to the Minister in relation to the administration and enforcement of this Act.^note

Inquiries

49Minister may request inquiry#

(1)The Minister may direct the Agency to inquire into any matter or thing concerning transportation to which the legislative authority of Parliament extends and report the findings on the inquiry to the Minister as and when the Minister may require.

(2)For greater certainty, sections 38 and 39 apply in respect of an inquiry.

(3)The Agency shall make public a summary of its findings that does not include any confidential information.

^note

Interim Order

49.1Interim order#

(1)The Minister may make an interim order that contains any provision that may be contained in a regulation described in subsection (2) or that varies or suspends any requirement or condition set out in such a regulation, if the Minister is of the opinion that it is in the public interest to do so, having regard to the purposes of the Act of Parliament under which the regulation may be made, and if the interim order

(a)gives effect to an international standard; or

(b)ensures compliance with Canada’s international obligations.

(2)A regulation referred to in subsection (1) is a regulation that may, under a provision of an Act of Parliament for which the Minister is responsible, be made by the Governor in Council or the Minister.

(3)Before making an interim order, the Minister must consult with any person or organization that the Minister considers appropriate in the circumstances.

(4)An interim order takes effect on the day on which it is made or on any later day specified in it and ceases to have effect on the earliest of

(a)the day on which it is repealed,

(b)the day before the day on which a regulation that has the same effect as the interim order comes into force, and

(c)the day that is three years — or any shorter period specified in the interim order — after the day on which the interim order takes effect.

(5)For the purposes of administration and enforcement, an interim order is deemed to be the regulation that may contain the provision contained in the interim order or in which the requirement or condition varied or suspended by the interim order is set out, and any provisions related to administration and enforcement that apply in respect of that regulation, including provisions related to offences and punishment, apply in respect of the interim order.

(6)An interim order may designate one or more of its provisions as subject to an administrative monetary penalty regime under the Act described in subsection (2) if that Act authorizes the designation of provisions of a regulation described in that subsection as being subject to the regime.

(7)The Statutory Instruments Act does not apply to an interim order.

(8)The Minister must ensure that an interim order is accessible to the public unless the Minister is of the opinion that it would be inappropriate due to exceptional circumstances, such as if making the interim order accessible compromises public safety.

(9)A person is not liable to be found guilty of an offence or subjected to an administrative sanction for a contravention of an interim order that, at the time of the alleged contravention, had not been published in the Canada Gazette unless it is proved that, at that time, the person had been notified of the interim order.

^note

Transportation Information

50Regulations re information#

(1)The Governor in Council may make regulations requiring any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament to provide information, other than personal information as defined in section 3 of the Privacy Act, to the Minister, when and in the form and manner that the regulations may specify, for the purposes of

(a)national transportation policy development;

(b)reporting under section 52;

(c)operational planning;

(d)any safety, security or subsidy program;

(e)any infrastructure requirement;

(e.1)monitoring the grain transportation and handling system; or

(f)the administration of this Act.

(1.001)The Governor in Council may make regulations requiring any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament and any users, other than passengers, of the national transportation system to provide information, other than personal information as defined in section 3 of the Privacy Act, to the Minister, a person designated under section 6.11, any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transportation system, when and in the form and manner that the regulations may specify, for the purposes of ensuring the proper functioning of the national transportation system or increasing its efficiency.

(1.01)The Governor in Council may make regulations requiring any class 1 rail carrier or class of those carriers to provide information, other than personal information as defined in section 3 of the Privacy Act, to the Minister or Agency, when and in the form and manner that the regulations may specify, for the purposes of

(a)determining the long-haul interswitching rate referred to in paragraph 134(1)(a); and

(b)communicating service and performance indicators to the public.

(1.1)The persons for the purposes of subsection (1) are

(a)carriers;

(b)owners or operators of

(i)transportation undertakings,

(ii)transportation works, infrastructure, facilities or assets, and

(iii)grain handling undertakings;

(c)providers of services in relation to transportation, including

(i)the Canadian Air Transport Security Authority,

(ii)NAV CANADA, a corporation incorporated on May 26, 1995 under Part II of the Canada Corporations Act, chapter C-32 of the Revised Statutes of Canada, 1970, and

(iii)Pilotage Authorities named in the schedule to the Pilotage Act;

(d)intermediaries involved in transportation movements who are specified in the regulations; and

(e)any other person or class of persons specified in the regulations.

(2)Information that is required to be provided under this section may include the following:

(a)financial information;

(b)information respecting traffic and operations;

(c)fitness and ownership information; and

(d)information respecting the performance of air carriers and providers of services in relation to air transportation with regard to passenger experience and the quality of service.

(3)No regulation made under subsection (1) or (1.001) shall require or have the effect of requiring any person to provide the Minister, a person designated under section 6.11, any persons referred to in subsection (1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transportation system with a contract referred to in subsection 68(1) or a contract entered into under subsection 126(1) or under section 53 of the Canada Marine Act.

(3.1)Subsection (3) does not apply in respect of a contract entered into under subsection 126(1) to the extent that the information is required for the purpose of monitoring the grain transportation and handling system.

(3.2)The Minister must prepare, within six months after the end of each crop year, a report on the monitoring of the grain transportation and handling system and cause the report to be tabled in each House of Parliament on any of the first fifteen days on which that House is sitting after the Minister prepares it, if the Minister

(a)makes a regulation under paragraph (1)(e.1); and

(b)uses or communicates the information provided under the regulation for the purpose of monitoring the grain transportation and handling system.

(4)The Minister may exempt a carrier or transportation undertaking from the application of all or any part of a regulation made under this section if the Minister is satisfied that it is not practicable for the carrier or transportation undertaking to provide the information.

(5)The Minister may consult with the Agency or Statistics Canada before making any regulation under this section.

^note

50.01Externally produced documents#

(1)A regulation made under subsection 50(1) or (1.01) may incorporate by reference any document that is produced by a person or body other than the Minister.

(2)A document may be incorporated by reference either as it exists on a particular date or as it is amended from time to time.

(3)The Minister must ensure that a document that is incorporated by reference is accessible.

(4)A person is not liable to be found guilty of an offence or subjected to an administrative sanction for any contravention in respect of which a document that is incorporated by reference is relevant unless, at the time of the alleged contravention, the document was accessible as required by subsection (3) or it was otherwise accessible to that person.

(5)For greater certainty, a document that is incorporated by reference is not required to be transmitted for registration or published in the Canada Gazette by reason only that it is incorporated by reference.

^note

50.02Existing power not limited#

For greater certainty, an express power in this Act to incorporate by reference does not limit the power that otherwise exists to incorporate by reference in a regulation made under this Act.^note

50.1Information already provided#

For the purposes of subsection 50(1) or (1.01), if any information referred to in that subsection has already been provided to a department or agency of the Government of Canada, the Minister may request that department or agency to provide the information to the Minister.^note

50.2Obligation to provide information#

(1)The individuals or entities referred to in subsection (2) must, on the Minister’s request, provide to the Minister, in the form and manner and within the time specified by the Minister, information, other than personal information as defined in section 3 of the Privacy Act, that the Minister considers necessary for the exercise of the powers and the performance of the duties and functions of the Minister under this Act or any other Act of Parliament or for the development of transportation policies, including information respecting

(a)the assessment of the value of an airport or other aviation facility or an entity that owns or operates an airport or other aviation facility; or

(b)the capacity and development of all or part of the national air transportation system.

(2)For the purposes of subsection (1), the individuals or entities are

(a)entities that own or operate an airport or other aviation facility; and

(b)individuals or entities whose activities, in the Minister’s opinion, may affect the value of an airport or other aviation facility or an entity that owns or operates an airport or other aviation facility.

(3)In this section, airport has the same meaning as in subsection 3(1) of the Aeronautics Act.

^note

51Confidentiality of information — Minister or designated person#

(1)Except as otherwise specifically provided in this Act or any other Act of Parliament, information required to be provided under this Act to the Minister or a person designated under section 6.11 is, when it is received by the Minister or the designated person, confidential and must not knowingly be disclosed or made available by any person without the authorization of the person who provided the information, except for the purposes of a prosecution of a contravention of section 173.

(2)Subsection (1) does not apply so as to prohibit

(a)the communication of information to the Agency, the Administrator of the Fund appointed under section 153.7, Statistics Canada or a minister of the Crown in right of Canada, the agent of that minister or an officer or employee of, or adviser to, Her Majesty in right of Canada for the purposes of the administration of this Act or any other Act of Parliament or for the purposes of the development of policies;

(a.1)the communication of information that is provided under regulations made under subsection 50(1.001) to persons referred to in subsection 50(1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transportation system;

(a.11)the communication by the Minister — for the purpose of exercising the powers and performing the duties and functions of the Minister under this Act or any other Act of Parliament or for the purpose of the development of transportation policies — of information provided to the Minister under section 50.2 to

(i)a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, or a director, officer or employee of, or adviser to, such a Crown corporation, or

(ii)an individual or entity that is not part of the federal public administration and that advises or is consulted by the Minister in relation to the development of transportation policies, including policies in relation to the matters referred to in paragraph 50.2(1)(a) or (b);

(a.2)the communication of information prescribed in the regulations to persons prescribed in the regulations;

(b)the communication of information to persons referred to in paragraph 50(1.1)(c) that is necessary for them to carry out their duties and functions;

(c)the communication of information, including to the public, in an aggregated form that prevents information obtained from an identifiable person from being related to that person;

(d)the communication of information by the Minister for the purpose of monitoring the grain transportation and handling system; or

(e)the communication of information that is available to, or ascertainable by, the public.

(2.1)The Minister may, with the approval of the Governor in Council, make regulations respecting the terms and conditions for the communication of information referred to in subsection (2).

(2.2)The Governor in Council may make regulations prescribing information and persons for the purposes of paragraph (2)(a.2).

(3)The Minister and any person designated under section 6.11 shall ensure that the procedures and physical measures taken to ensure the confidentiality of information provided to them under this Act, including the keeping of electronic data, are safe and secure.

(4)Any person who receives from the Minister or a person designated under section 6.11 information that is confidential under this Act shall not knowingly disclose that information and shall take the measures necessary to maintain its confidentiality.

^note

51.1Publication#

Despite subsection 51(1), the Minister may make public

(a)information related to service and performance indicators provided in accordance with regulations made under paragraph 50(1.01)(b); and

(b)information referred to in paragraph 50(2)(d).

^note

51.11Confidential information — other persons#

(1)Information that is required to be provided under subsection 50(1.001) to persons referred to in subsection 50(1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transportation system is, when it is received by those persons, confidential and must not knowingly be disclosed or made available by any person without the authorization of the person who provided the information, except for the purposes of a prosecution of a contravention of section 173.

(2)The persons referred to in subsection 50(1.1) who are subject to the legislative authority of Parliament and any users, other than passengers, of the national transportation system must ensure that the procedures and physical measures taken to ensure the confidentiality of information provided to them under this Act, including the keeping of electronic data, are safe and secure.

^note

51.2Confidentiality of information — Agency#

Information that is required to be provided to the Agency in accordance with regulations made under paragraph 50(1.01)(a) is, when it is received by the Agency, confidential and shall not knowingly be disclosed or made available by any person without the authorization of the person who provided the information, except for the purpose of a prosecution of a contravention of section 173.^note

51.3Use of information#

Information that is provided to the Minister or the Agency in accordance with regulations made under paragraph 50(1.01)(a) is only to be used by the Agency for the purpose of determining the long-haul interswitching rate referred to in paragraph 134(1)(a) and, despite subsection 51(4) and section 51.2, the Agency may, for that purpose, communicate the information in an aggregated form.^note

51.4Publication#

(1)If the Agency receives information from class 1 rail carriers or the Minister that is related to service and performance indicators provided in accordance with regulations made under paragraph 50(1.01)(b), the Agency shall publish the information on its Internet site within two days after it is received.

(2)Subsection 51(4) does not apply to the publication, in accordance with subsection (1), of information that is received from the Minister.

^note

51.5Order#

(1)If the Minister is of the opinion that there exists an unusual and significant disruption to the effective continued operation of the national transportation system, the Minister may, by order, require any persons referred to in subsection 50(1.1) who are subject to the legislative authority of Parliament or any users, other than passengers, of the national transportation system to provide to the Minister information, other than personal information as defined in section 3 of the Privacy Act, that the Minister considers relevant to the assessment of the cause of the disruption or the mitigation or resolution of the disruption.

(2)An order made under this section has effect for the period, not exceeding 90 days, that is specified in the order.

(3)The order is not a statutory instrument within the meaning of the Statutory Instruments Act.

(4)Despite subsection 51(1), the Minister may disclose information that has been provided to the Minister under this section to any person for the purposes of the mitigation or resolution of the disruption.

^note

Industry Review

52Industry overview#

(1)Each year before the end of May, the Minister shall, using the most current information available, prepare and lay before both Houses of Parliament a report providing a brief overview of the state of transportation in Canada.

(2)Every five years, the report referred to in subsection (1) shall be expanded to a comprehensive review of the state of transportation in Canada which shall include

(a)the financial performance of each mode of transportation and its contribution to the Canadian economy;

(b)the extent to which carriers and modes of transportation were provided resources, facilities and services at public expense;

(c)the extent to which carriers and modes of transportation received compensation, indirectly and directly, for the resources, facilities and services that were required to be provided as an imposed public duty;

(c.1)the long term outlook and trends in transportation in Canada; and

(d)any other transportation matters that the Minister considers appropriate.

^note

Review of Act

53Statutory review#

(1)The Minister shall, no later than eight years after the day this subsection comes into force, appoint one or more persons to carry out a comprehensive review of the operation of this Act and any other Act of Parliament for which the Minister is responsible that pertains to the economic regulation of a mode of transportation or to transportation activities under the legislative authority of Parliament.

(2)The person or persons conducting the review shall assess whether the legislation referred to in subsection (1) provides Canadians with a transportation system that is consistent with the national transportation policy set out in section 5 and, if necessary or desirable, may recommend amendments to

(a)the national transportation policy; and

(b)the legislation referred to in subsection (1).

(3)The review shall be undertaken in consultation with purchasers and suppliers of transportation services and any other persons whom the Minister considers appropriate.

(4)Every person appointed to carry out the review has, for the purposes of the review, the powers of a commissioner under Part I of the Inquiries Act and may engage the services of experts, professionals and other staff deemed necessary for making the review at the rates of remuneration that the Treasury Board approves.

(5)The review shall be completed and a report of the review submitted to the Minister within 18 months after the appointment referred to in subsection (1).

(6)The Minister shall have a copy of the report laid before each House of Parliament on any of the first thirty days on which that House is sitting after the Minister receives it.

^note

Review of Mergers and Acquisitions

53.1Notice#

(1)Every person who is required to notify the Commissioner of Competition under subsection 114(1) of the Competition Act of a proposed transaction that involves a transportation undertaking shall, at the same time as the Commissioner is notified and, in any event, not later than the date by which the person is required to notify the Commissioner,

(a)give notice of the proposed transaction to the Minister; and

(b)in the case of a proposed transaction that involves an air transportation undertaking, also give notice of the transaction to the Agency.

(2)A notice given to the Minister or to the Agency shall, subject to the regulations, contain the information required under subsection 114(1) of the Competition Act. The notice shall also contain any information with respect to the public interest as it relates to national transportation that is required under any guidelines that shall be issued and published by the Minister. After receipt of a notice, the Minister may require the person who has given the notice to provide further information.

(2.1)The guidelines referred to in subsection (2) shall be elaborated in consultation with the Competition Bureau and shall include factors that may be considered to determine whether a proposed transaction raises issues with respect to the public interest as it relates to national transportation.

(3)The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act.

(4)If the Minister is of the opinion that the proposed transaction does not raise issues with respect to the public interest as it relates to national transportation, the Minister shall, within 42 days after a person gives notice under subsection (1), give notice of the opinion to that person, in which case sections 53.2 and 53.3 do not apply in respect of that transaction.

(5)If the Minister is of the opinion that the proposed transaction raises issues with respect to the public interest as it relates to national transportation, the Minister may direct the Agency to examine those issues under section 49 or appoint and direct any person to examine those issues under section 7.1 of the Department of Transport Act.

(6)The Agency or person, as the case may be, shall report to the Minister within 150 days after being directed under subsection (5), or within any longer period that the Minister may allow.

^note

53.2Prohibition#

(1)No person shall complete a proposed transaction referred to in subsection 53.1(1) unless the transaction is approved by the Governor in Council and, in the case of a transaction that involves an air transportation undertaking, the Agency determines that the transaction would result in an undertaking that is Canadian as defined in subsection 55(1).

(2)The Commissioner of Competition shall within 150 days after the Commissioner is notified of the proposed transaction under subsection 114(1) of the Competition Act, or within any longer period that the Minister may allow, report to the Minister and the parties to the transaction on any concerns regarding potential prevention or lessening of competition that may occur as a result of the transaction.

(3)The report shall be made public immediately after its receipt by the Minister.

(4)After receipt of the Commissioner’s report and any report given under subsection 53.1(6), but before the Minister makes a recommendation for the purposes of subsection (7), the Minister shall

(a)consult with the Commissioner regarding any overlap between any concerns that the Minister has in respect of the proposed transaction with regard to the public interest as it relates to national transportation and any concerns in respect of the transaction that are raised in the Commissioner’s report; and

(b)request the parties to the transaction to address

(i)with the Minister any concerns that the Minister has in respect of the transaction with regard to the public interest as it relates to national transportation, and

(ii)with the Commissioner any concerns that the Commissioner has regarding potential prevention or lessening of competition that may occur as a result of the transaction.

(5)The parties to the transaction shall

(a)after conferring with the Minister regarding concerns referred to in subparagraph (4)(b)(i), inform the Minister of any measures they are prepared to undertake to address those concerns; and

(b)after conferring with the Commissioner regarding concerns identified under subparagraph (4)(b)(ii), inform the Commissioner of any measures they are prepared to undertake to address those concerns.

The parties may propose revisions to the transaction.

(6)Before making a recommendation for the purposes of subsection (7), the Minister shall obtain the Commissioner’s assessment of the adequacy of any undertaking proposed by the parties to address the concerns that have been identified under subparagraph (4)(b)(ii) and the effects of any proposed revisions to the transaction on those concerns.

(7)If the Governor in Council is satisfied that it is in the public interest to approve the proposed transaction, taking into account any revisions to it proposed by the parties and any measures they are prepared to undertake, the Governor in Council may, on the recommendation of the Minister, approve the transaction and specify any terms and conditions that the Governor in Council considers appropriate. The Governor in Council shall indicate those terms and conditions that relate to potential prevention or lessening of competition and those that relate to the public interest as it relates to national transportation.

(8)On application by a person who is subject to terms and conditions specified under subsection (7), the Governor in Council may, on the recommendation of the Minister, vary or rescind the terms and conditions. If the terms and conditions to be varied or rescinded affect competition, the Minister shall consult with the Commissioner before making the recommendation.

(9)If the Minister directs the Agency under section 49 to inquire into any matter or thing to assist the Minister in making a recommendation under subsection (7) or (8), the Agency shall give notice of the inquiry to the Commissioner and allow the Commissioner to make representations to the Agency.

(10)Every person who is subject to terms and conditions shall comply with them.

^note

53.3Canadian#

The Agency shall determine whether a proposed transaction referred to in subsection 53.1(1) that involves an air transportation undertaking would result in an undertaking that is Canadian as defined in subsection 55(1).^note

53.4Order of divestiture — application by Minister#

(1)If a person contravenes subsection 53.2(1) or (10) with respect to a term or condition that relates to the public interest as it relates to national transportation, a superior court may, on application by the Minister, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner of Competition before making an application.

(2)If a person contravenes subsection 53.2(10) with respect to a term or condition that relates to potential prevention or lessening of competition, a superior court may, on application by the Commissioner, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Commissioner shall notify the Minister before making an application.

^note

53.5Regulations#

The Governor in Council may, on the recommendation of the Minister, make regulations

(a)specifying information required in a notice under subsection 53.1(1); and

(b)exempting classes of transactions from the application of sections 53.1 to 53.3.

^note

53.6Offence — subsection 53.1(1)#

(1)Every person who contravenes subsection 53.1(1) is guilty of an offence and is liable

(a)on conviction on indictment, to a fine not exceeding $50,000; or

(b)on summary conviction, to a fine not exceeding $25,000.

(2)Every person who contravenes subsection 53.2(1) or (10) is guilty of an indictable offence and is liable to imprisonment for a term not exceeding five years or to a fine not exceeding $10,000,000, or to both.

(3)If an offence under subsection 53.2(10) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.

(4)If a corporation commits an offence under subsection (1) or (2), any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

(5)Sections 174 and 175 do not apply in respect of an offence committed under subsection (1) or (2).

^note

Review of Arrangements Involving Two or More Transportation Undertakings Providing Air Services

53.7Definitions#

The following definitions apply in sections 53.71 to 53.84.

arrangement means an agreement or arrangement, other than a transaction referred to in subsection 53.1(1), involving two or more transportation undertakings providing air services, as defined in subsection 55(1), to, from or within Canada, to coordinate on any aspect of the operation or marketing of such services, including prices, routes, schedules, capacity or ancillary services and to share costs or revenues or other resources or benefits. (entente)

party means any person who proposes to enter into or has entered into an arrangement for which a notice has been given under subsection 53.71(1). (partie)

^note

53.71Notice#

(1)Every person who proposes to enter into an arrangement may notify the Minister of that arrangement. If the person so notifies the Minister, they shall at the same time provide a copy of the notice to the Commissioner of Competition.

(2)A notice given under subsection (1) shall contain any information that is required under the guidelines that are issued and published by the Minister, including information that relates to considerations respecting competition.

(3)The guidelines referred to in subsection (2) shall be developed in consultation with the Competition Bureau and shall include factors that may be considered by the Minister to determine whether a proposed arrangement raises significant considerations with respect to the public interest under subsection (6) and, if applicable, to render a final decision regarding the arrangement under subsection 53.73(8).

(4)The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act.

(5)The Minister or the Commissioner may, after receiving a notice or copy of a notice under subsection (1), require any party to provide further information.

(6)The Minister shall, within 45 days after the day on which he or she receives the notice with the information referred to in subsection (2), inform the parties and the Commissioner as to whether, in his or her opinion, the proposed arrangement raises significant considerations with respect to the public interest.

(7)If the Minister is of the opinion that the proposed arrangement does not raise significant considerations with respect to the public interest, sections 53.72 to 53.79 do not apply to that arrangement.

(8)If the Minister is of the opinion that the proposed arrangement raises significant considerations with respect to the public interest, the arrangement is subject to the review process set out in section 53.73.

^note

53.72Prohibition#

If a notice has been given under subsection 53.71(1), the proposed arrangement shall not be completed without the Minister’s authorization under subsection 53.73(8).^note

53.73Review process#

(1)The Minister, or a person designated by the Minister, shall examine the proposed arrangement, if it is subject to the review process.

(2)The Commissioner of Competition shall, within 120 days after the day on which he or she receives a copy of the notice under subsection 53.71(1) with the information referred to in subsection 53.71(2), report to the Minister and the parties on any concerns regarding potential prevention or lessening of competition that may occur as a result of the proposed arrangement.

(3)Unless a notice is withdrawn or is deemed to have been withdrawn under section 53.8, the Commissioner shall make public a summary of the conclusions of the report that does not include any confidential information.

(4)The Minister shall, within 150 days after the day on which he or she receives the notice with the information referred to in subsection 53.71(2), report to the parties on any concerns with respect to the public interest that may occur as a result of the proposed arrangement and provide a copy of the report to the Commissioner.

(5)The parties shall, within 30 days after the day on which they receive the report under subsection (4), respond in writing to the Minister, addressing any concerns with respect to the public interest and competition raised by the Minister and the Commissioner and informing the Minister, among other things, of any measures they are prepared to undertake to address those concerns. The parties may propose amendments to the arrangement.

(6)The Minister shall, after consulting with the Commissioner and within 45 days after the day on which he or she receives the response from the parties under subsection (5), render a preliminary decision regarding the proposed arrangement and specify any terms and conditions relating to the public interest and competition under which an authorization could be given under subsection (8).

(7)The parties shall, within 30 days after the day on which they receive the Minister’s preliminary decision, provide a response in writing to the Minister and the response may include proposed amendments to the terms and conditions specified in the decision.

(8)The Minister shall, within 30 days after the day on which he or she receives a response from the parties under subsection (7), render a final decision and make public a summary of that decision that does not include any confidential information. The Minister may, if satisfied that the proposed arrangement is in the public interest, authorize it and specify any terms and conditions relating to the public interest and competition that the Minister considers appropriate.

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53.74Canadian#

An authorization given by the Minister under subsection 53.73(8) does not affect any requirement that a transportation undertaking providing air services, as defined in subsection 55(1), be Canadian, as defined in that subsection.^note

53.75Varying or rescinding terms and conditions#

On application by any party who is subject to terms and conditions of an authorization, the Minister may, after consulting with the Commissioner of Competition, vary or rescind the terms and conditions and shall make public a summary of that decision that does not include any confidential information.^note

53.76Proposed amendment to arrangement#

(1)The parties to an authorized arrangement may propose an amendment to that arrangement to the Minister and he or she may, after consulting with the Commissioner of Competition and considering the significance of the amendment,

(a)authorize the amendment, subject to any terms and conditions that the Minister may impose; or

(b)require the parties to submit a new notice under subsection 53.71(1) for review of the proposed amended arrangement, unless the parties decide not to proceed with the amendment.

(2)If the Minister authorizes the amendment under paragraph (1)(a), he or she shall make public a summary of that decision that does not include any confidential information.

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53.77Concerns regarding authorized arrangement#

(1)The Minister may, at any time after the second anniversary of the day on which an arrangement is authorized, notify the parties of any concerns raised by the arrangement with respect to the public interest and competition.

(2)The parties shall, within 45 days after the day on which they receive the notice under subsection (1), provide a response in writing to the Minister, specifying, among other things, any measures they are prepared to undertake to address those concerns. The parties may propose amendments to the arrangement.

(3)If, after consulting with the Commissioner, the Minister determines that the arrangement is still in the public interest, the authorization is continued subject to any new or amended terms and conditions specified by the Minister to address the concerns referred to in subsection (1).

^note

53.78Obligation to comply with terms and conditions#

Every person who is subject to terms and conditions under subsection 53.73(8), section 53.75, paragraph 53.76(a) or subsection 53.77(3) shall comply with them.^note

53.79Revoking authorization — false or misleading information#

(1)The Minister may revoke an authorization at any time if it was granted on the basis of information that is false or misleading in a material respect or if the parties fail to comply with any of the authorization’s terms or conditions.

(2)The Minister may also revoke the authorization of an arrangement if

(a)that arrangement is significantly amended without prior authorization; or

(b)the Minister, after considering any response of the parties to the concerns raised under subsection 53.77(1), is no longer satisfied that the arrangement is in the public interest.

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53.8Withdrawing notice#

(1)A notice given under subsection 53.71(1) may be withdrawn at any time before a final decision is rendered under subsection 53.73(8).

(2)A notice is deemed to have been withdrawn if the parties fail to respond to the Minister within any period specified in subsection 53.73(5) or (7) or any extended period, as the case may be.

(3)If a notice given under subsection 53.71(1) is withdrawn or is deemed to have been withdrawn, section 53.72 no longer applies to the proposed arrangement.

^note

53.81Extension of time#

The Minister may, at the request of the parties or on the Minister’s own initiative, extend any period specified in section 53.71, 53.73 or 53.77 if the Minister considers it appropriate in the circumstances, including when the arrangement is exceptionally complex.^note

53.82Order#

If a person contravenes sections 53.72 or 53.78, a superior court may, on application by the Minister, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner of Competition before making an application.^note

53.83Offence — section 53.72 or 53.78#

(1)Every person who contravenes section 53.72 or 53.78 is guilty of an indictable offence and is liable to imprisonment for a term of not more than five years or to a fine of not more than $10,000,000, or to both.

(2)If an offence under subsection (1) for the contravention of section 53.78 is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.

(3)If a corporation commits an offence under subsection (1), any officer, director or agent or mandatary of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence, whether or not the corporation has been prosecuted or convicted.

(4)Sections 174 and 175 do not apply in respect of an offence committed under subsection (1).

^note

53.84Cost recovery#

(1)The Governor in Council may make regulations respecting

(a)the fees to be paid by the parties to an arrangement for any activities undertaken by the Minister under sections 53.71 to 53.76 that are related to the arrangement, including the method of calculating the fees; and

(b)the refund of all or part of any fee referred to in paragraph (a), including the method of calculating the refund.

(2)The fees referred to in paragraph (1)(a) shall not exceed the costs related to the activities undertaken by the Minister under sections 53.71 to 53.76 that are related to the arrangement.

(3)The fees paid in accordance with regulations made under subsection (1) shall be deposited to the credit of the Receiver General in the time and manner prescribed under those regulations.

(4)The Minister may spend the amounts deposited under subsection (3) in the fiscal year in which they are paid or in the next fiscal year.

^note

General

54Appointment of receiver not to bar jurisdiction#

(1)The fact that a receiver, manager or other official of a carrier, or a receiver of the property of a carrier, has been appointed by a court in Canada, or is managing or operating a mode of transportation under the authority of any such court, is not a bar to the exercise of any jurisdiction granted under this Act, but every such receiver, manager or official is bound to manage and operate the mode of transportation in accordance with this Act and with the orders, regulations and directions made or issued under this Act, notwithstanding the fact that the receiver, manager, official or person has been appointed by or acts under the authority of a court.

(2)Wherever by reason of insolvency, sale under mortgage or any other cause, a transportation undertaking or a portion of a transportation undertaking is operated, managed or held otherwise than by the carrier, the Agency or the Minister may make any order it considers proper for adapting and applying the provisions of this Act.

Part II · Air Transportation

Interpretation and Application

55Definitions#

(1)In this Part,

aircraft has the same meaning as in subsection 3(1) of the Aeronautics Act; (aéronef)

air service means a service, provided by means of an aircraft, that is publicly available for the transportation of passengers or goods, or both; (service aérien)

basic fare means

(a)the fare in the tariff of the holder of a domestic licence that has no restrictions and represents the lowest amount to be paid for one-way air transportation of an adult with reasonable baggage between two points in Canada, or

(b)where the licensee has more than one such fare between two points in Canada and the amount of any of those fares is dependent on the time of day or day of the week of travel, or both, the highest of those fares; (prix de base)

Canadian means

(a)a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act,

(b)a government in Canada or an agent or mandatary of such a government, or

(c)a corporation or entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least 51% of the voting interests are owned and controlled by Canadians and where

(i)no more than 25% of the voting interests are owned directly or indirectly by any single non-Canadian, either individually or in affiliation with another person, and

(ii)no more than 25% of the voting interests are owned directly or indirectly by one or more non-Canadians authorized to provide an air service in any jurisdiction, either individually or in affiliation with another person; (Canadien)

Canadian aviation document has the same meaning as in subsection 3(1) of the Aeronautics Act; (document d’aviation canadien)

domestic licence means a licence issued under section 61; (Version anglaise seulement)

domestic service means an air service between points in Canada, from and to the same point in Canada or between Canada and a point outside Canada that is not in the territory of another country; (service intérieur)

international service means an air service between Canada and a point in the territory of another country; (service international)

licensee means the holder of a licence issued by the Agency under this Part; (licencié)

non-scheduled international licence means a licence issued under subsection 73(1); (Version anglaise seulement)

non-scheduled international service means an international service other than a scheduled international service; (service international à la demande)

prescribed means prescribed by regulations made under section 86; (règlement)

scheduled international licence means a licence issued under subsection 69(1); (Version anglaise seulement)

scheduled international service means an international service that is a scheduled service pursuant to

(a)an agreement or arrangement for the provision of that service to which Canada is a party, or

(b)a determination made under section 70; (service international régulier)

tariff means a schedule of fares, rates, charges and terms and conditions of carriage applicable to the provision of an air service and other incidental services. (tarif)

(2)For the purposes of this Part,

(a)one corporation is affiliated with another corporation if

(i)one of them is a subsidiary of the other,

(ii)both are subsidiaries of the same corporation, or

(iii)both are controlled by the same person;

(b)if two corporations are affiliated with the same corporation at the same time, they are deemed to be affiliated with each other;

(c)a partnership or sole proprietorship is affiliated with another partnership or sole proprietorship if both are controlled by the same person;

(d)a corporation is affiliated with a partnership or a sole proprietorship if both are controlled by the same person;

(e)a corporation is a subsidiary of another corporation if it is controlled by that other corporation or by a subsidiary of that other corporation;

(f)a corporation is controlled by a person other than Her Majesty in right of Canada or a province if

(i)securities of the corporation to which are attached more than 50% of the votes that may be cast to elect directors of the corporation are held, directly or indirectly, whether through one or more subsidiaries or otherwise, otherwise than by way of security only, by or for the benefit of that person, and

(ii)the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation;

(g)a corporation is controlled by Her Majesty in right of Canada or a province if

(i)the corporation is controlled by Her Majesty in the manner described in paragraph (f), or

(ii)in the case of a corporation without share capital, a majority of the directors of the corporation, other than ex officio directors, are appointed by

(A)the Governor in Council or the Lieutenant Governor in Council of the province, as the case may be, or

(B)a Minister of the government of Canada or the province, as the case may be; and

(h)a partnership is controlled by a person if the person holds an interest in the partnership that entitles the person to receive more than 50% of the profits of the partnership or more than 50% of its assets on dissolution.

(3)In subsection (2), person includes an individual, a partnership, an association, a corporation, a trustee, an executor, a liquidator of a succession, an administrator or a legal representative.

(4)For greater certainty, nothing in subsection (2) shall be construed to affect the meaning of the expression “controlled in fact” in the definition Canadian in subsection (1).

^note

56Non-application of Part#

(1)This Part does not apply to a person that uses an aircraft on behalf of the Canadian Armed Forces or any other armed forces cooperating with the Canadian Armed Forces.

(2)This Part does not apply to the operation of specialty services provided by aircraft, including firefighting, flight training, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, helicopter-lift for logging and construction, airborne agricultural, industrial and inspection services or any other prescribed service provided by aircraft.

(3)This Part does not apply to the provision of an air service if the federal government or a provincial or a municipal government declares an emergency under federal or provincial law, and that government directly or indirectly requests that the air service be provided to respond to the emergency.

(4)The Minister may, by order, prohibit the provision of an air service under subsection (3) or require the discontinuance of that air service if, in the opinion of the Minister, it is in the public interest to do so.

(5)The order is not a statutory instrument within the meaning of the Statutory Instruments Act.

^note