Too Bad For VIA, Says Gov’t

Paul Delahanty, www.blacklocks.ca
Transport Canada is objecting to a bill mandating minimum service and Crown funding for VIA Rail passenger service. MP Jeff Watson, parliamentary secretary for transport, said the legislation would place “a greater burden on the taxpayer”. VIA had estimated a loss of $321 million on operations last year.

“VIA is responsible for its own operational decisions,” said Watson; “This measure could make the government directly liable for any debts and losses incurred by VIA.”

Bill C-640 An Act Respecting VIA Rail would forbid service cuts; mandate six-day-a-week service between Halifax and Montréal, require a minimum three transcontinental passenger trains between Toronto and Vancouver each week; and guarantee minimum 80 percent on-time service.

MP Philip Toone, New Democrat sponsor of the bill, said it was aimed to correct “ad hoc” VIA management that leaves the railway subject to cabinet control. “Passenger rail is important,” said Toone, MP for Gaspésie-Îles-de-la-Madeleine, Que.

“We see the sad result,” Toone told the Commons. “The management of VIA Rail has been unstable for nearly four decades; its funding varies considerably; the company has barely been modernized; the fees for accessing the freight network are excessive,” he said; “The worst part is that the public interest has been set aside countless times.”

Bill C-640 would also grant VIA passenger trains preference over freights, even on right-of-way track owned by Canadian National Rail Co. and Canadian Pacific; and permit VIA to electrify any track, including those owned by private railways.

“VIA is under the thumb of the freight railways, especially CN, on whose tracks it operates the bulk of its trains,” said Bruce Hyer, Green MP for Thunder Bay-Superior North, Ont. “The worst aspect of this one-sided relationship is that, contained in the ten-year train service agreement, VIA was left to negotiate on its own with CN in 2007, without help from the government.” Hyer calculated VIA’s fees to run on CN track have increased 42 percent in the last five years.

Warns Of Privatization

The Commons adjourned debate on the private bill without a vote. MP David McGuinty, Liberal transport critic, cautioned that cabinet may be preparing to sell VIA after 37 years.

“I have concluded that it is the government’s intention to attempt to privatize VIA Rail in due course,” said McGuinty, MP for Ottawa South; “If re-elected, the government fully intends to divest itself of VIA Rail and move in the same direction with respect to Canada Post.”

“It’s unfortunate,” McGuinty said. “Canadians have come to depend on passenger rail as part of their tradition”; “We need to have a discussion here on where we are going with rail for the next century, and the bill will help us have it.”

VIA management in a 2013-2017 Corporate Plan said it is relying on better ridership and higher revenues on its most popular routes between Québec City, Montréal, Ottawa and Toronto, with new investments in passenger cars and infrastructure. The corporation warned of more service cuts on lesser-used routes nationwide, citing 2012 cuts between Montréal and Halifax, and the suspension of service along the Gaspé Peninsula.