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Trudeau govt overhauls transportation act - lifts foreign ownership rules, adds pax rights, more rail freight safety

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Trudeau govt overhauls transportation act - lifts foreign ownership rules, adds pax rights, more rail freight safety

Nice...the previous govt had over a decade and did nothing

Love how the Liberals get things done while​ the cons just spent money in photo ops like McKay on millions to post in a jet and billions for gazebos for clement

http://business.financialpost.com/news/ ... -of-rights
That change is part of a package of amendments to the Canada Transportation Act which also introduces new foreign ownership limits for airlines, requires railways to install voice and video recorders in locomotives and improves transparency and efficiency in the freight rail industry.

Garneau promised the bill of rights last month in the wake of widespread alarm after a United Airlines passenger was seriously injured when he was dragged from a plane in Chicago.
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Deal Fanatic
Jul 5, 2005
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What's the benefit of foreign ownership in our airlines?

Other than foreign ownership, if they give the agency the resources to enforce the new rules then there isn't much to complain about here.
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May 10, 2005
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Doubleshot wrote: Nice...the previous govt had over a decade and did nothing

.....
His Government has not done anything yet either. Bill C-47 only says something will happen....when it happens. There are no rules, no regulations or anything yet. Bill C-49 only lays provides outlines, nothing established.
"The Canadian Transportation Agency will set minimum compensation and timelines.". The Canadian Transport Agency is known to be airline friendly.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
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Nov 15, 2004
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hugh_da_man wrote: What's the benefit of foreign ownership in our airlines?

Other than foreign ownership, if they give the agency the resources to enforce the new rules then there isn't much to complain about here.
More investment, less bailouts, more capital available to new entrants breaking into the industry, and the loosening of restrictions on foreign ownership in other countries so we can buy their airlines.
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Piro21 wrote: More investment,
This situation seems analogous to mobile networks during the Harper government. Loosening of ownership rules hasn't increased investment.

Piro21 wrote: less bailouts,
What bailouts? And how does allowing foreign investment prevent bailouts? If Air Canada is going under because the new Chinese ownership mismanages the company then we'll still be forced to prop it up with tax payer dollars because losing it would hurt our economy. This seems like another case of backstopping investor risk with tax payer dollars but now we're providing that benefit to foreign investors.

Piro21 wrote: more capital available to new entrants breaking into the industry,
Again to the analogy of mobile networks...there have been no new entrants because the barrier to entry is far too high. You're not going to get a subsidiary of United Airlines coming to Canada or they would have done it before.

Piro21 wrote: and the loosening of restrictions on foreign ownership in other countries so we can buy their airlines.
Oh ok, that's a positive but the article never mentioned that the Liberals have negotiated deals with other countries as part of this change. Could you point me to a link where it lists the changes other countries are making?
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hugh_da_man wrote: This situation seems analogous to mobile networks during the Harper government. Loosening of ownership rules hasn't increased investment.




What bailouts? And how does allowing foreign investment prevent bailouts? If Air Canada is going under because the new Chinese ownership mismanages the company then we'll still be forced to prop it up with tax payer dollars because losing it would hurt our economy. This seems like another case of backstopping investor risk with tax payer dollars but now we're providing that benefit to foreign investors.




Again to the analogy of mobile networks...there have been no new entrants because the barrier to entry is far too high. You're not going to get a subsidiary of United Airlines coming to Canada or they would have done it before.




Oh ok, that's a positive but the article never mentioned that the Liberals have negotiated deals with other countries as part of this change. Could you point me to a link where it lists the changes other countries are making?
I agree with all except the last.
How can Canadian airlines buy foreign airlines if they can barely stay afloat themselves....oh wait, with foreign ownership, it is not Canadians buying is it :)
The Government cannot give to anybody anything that the Government does not first take from somebody else.
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Pete_Coach wrote: I agree with all except the last.
How can Canadian airlines buy foreign airlines if they can barely stay afloat themselves....oh wait, with foreign ownership, it is not Canadians buying is it :)
It's a positive if a large Canadian company can buy into foreign airlines because it allows for companies like Air Canada to trade 49% of their stock for 49% of a foreign airline. The problem is that we need reciprocity before that's a good thing. What I fear will happen is that Air Canada will trade 49% of their stock to some Chinese airline without getting the equivalent ownership of a Chinese airline because China prevents foreign ownership of their airlines. That would be a huge loss to Canadians because it would allow foreign ownership without reciprocity. That just hollows out our economy further and gives a foreign company preferential access to an industry that is largely run by an oligopoly due to protectionist regulations. Note that I'm not against the protectionist regulations as that maintains flights to places like Saskatoon.
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hugh_da_man wrote: It's a positive if a large Canadian company can buy into foreign airlines because it allows for companies like Air Canada to trade 49% of their stock for 49% of a foreign airline. The problem is that we need reciprocity before that's a good thing. What I fear will happen is that Air Canada will trade 49% of their stock to some Chinese airline without getting the equivalent ownership of a Chinese airline because China prevents foreign ownership of their airlines. That would be a huge loss to Canadians because it would allow foreign ownership without reciprocity. That just hollows out our economy further and gives a foreign company preferential access to an industry that is largely run by an oligopoly due to protectionist regulations. Note that I'm not against the protectionist regulations as that maintains flights to places like Saskatoon.
A Canadian, or Canadian company has always been allowed to buy into foreign airlines. It depends only if the other Country has restrictions .
What Trudeau is proposing is that foreign companies, airlines or Countries (like China has already bought into Air Canada) can now buy more than just 49%. The restriction was Canadian law to be able to purchase Canadian airlines, not the other way around.
Also, do you really think that Air Canada has money to buy anyone out (with exception of Cessna 180 Air)? If anything, Air Canada will be free to merge with some foreign airline. How bout that :)
The Government cannot give to anybody anything that the Government does not first take from somebody else.
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hugh_da_man wrote: This situation seems analogous to mobile networks during the Harper government. Loosening of ownership rules hasn't increased investment.




What bailouts? And how does allowing foreign investment prevent bailouts? If Air Canada is going under because the new Chinese ownership mismanages the company then we'll still be forced to prop it up with tax payer dollars because losing it would hurt our economy. This seems like another case of backstopping investor risk with tax payer dollars but now we're providing that benefit to foreign investors.




Again to the analogy of mobile networks...there have been no new entrants because the barrier to entry is far too high. You're not going to get a subsidiary of United Airlines coming to Canada or they would have done it before.




Oh ok, that's a positive but the article never mentioned that the Liberals have negotiated deals with other countries as part of this change. Could you point me to a link where it lists the changes other countries are making?
Wasn't Wind the result of foreign ownership?
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Archanfel wrote: Wasn't Wind the result of foreign ownership?
What is "Wind"? Can you link me to their webpage?

Pete_Coach wrote: A Canadian, or Canadian company has always been allowed to buy into foreign airlines. It depends only if the other Country has restrictions .
What Trudeau is proposing is that foreign companies, airlines or Countries (like China has already bought into Air Canada) can now buy more than just 49%. The restriction was Canadian law to be able to purchase Canadian airlines, not the other way around.
Also, do you really think that Air Canada has money to buy anyone out (with exception of Cessna 180 Air)? If anything, Air Canada will be free to merge with some foreign airline. How bout that :)
That's the point. There is no reciprocity. The Liberals didn't negotiate deals with other countries for mutual investment, all they did was open up our protected industries for further investment from foreign companies. It's bad for Canadians. They're tacking a passenger bill of rights onto a law that hollows out our economy. The progressives should be jumping off the Liberal bandwagon at this point.
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hugh_da_man wrote: What is "Wind"? Can you link me to their webpage?




That's the point. There is no reciprocity. The Liberals didn't negotiate deals with other countries for mutual investment, all they did was open up our protected industries for further investment from foreign companies. It's bad for Canadians. They're tacking a passenger bill of rights onto a law that hollows out our economy. The progressives should be jumping off the Liberal bandwagon at this point.
I think you are assuming that other countries have foreign ownership restrictions of companies. The US does not and I am pretty sure only Canada has for it's airlines.
Is it bad for Canadians? Don't most of our companies already, in great part, belong to foreign companies?
"Some estimates state that more than 50% of the petroleum and gas industry and more than 50% of all manufacturing in Canada is foreign-owned and foreign-controlled."
https://en.wikipedia.org/wiki/Foreign_o ... _of_Canada
Foreign ownership of airlines (specifically Air Canada) was only there to protect Air Canada and to ensure it will maintain the unprofitable routes to northern and smaller communities. Sell A/C out and they may drop those routes unless those routes are mandated as being retained..
The Government cannot give to anybody anything that the Government does not first take from somebody else.
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Pete_Coach wrote: I think you are assuming that other countries have foreign ownership restrictions of companies. The US does not and I am pretty sure only Canada has for it's airlines.
Both China and the US have restrictions on foreign ownership of their airlines.

Pete_Coach wrote: Is it bad for Canadians? Don't most of our companies already, in great part, belong to foreign companies?
It's bad for Canadians due to the protectionist regulations in the industry. We subsidize our airlines through tax breaks and protectionist policies. Now we'll be further subsidizing the profits of foreign companies without necessarily receiving reciprocity. I'm all for free trade but free trade requires equal access, especially in protected industries like the airlines.

Pete_Coach wrote: Foreign ownership of airlines (specifically Air Canada) was only there to protect Air Canada and to ensure it will maintain the unprofitable routes to northern and smaller communities. Sell A/C out and they may drop those routes unless those routes are mandated as being retained..
That and having airlines is important to our economy. If we lose Air Canada or WestJet (or both) our economy takes a significant hit.
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hugh_da_man wrote: What is "Wind"? Can you link me to their webpage?
Wind mobile, they were bought out and became freedom mobile now.

"Globalive, a Canadian company which also runs "Yak Communications", was primarily financed by an Egyptian corporation, Orascom Telecom Holding, managed by Wind Telecom S.p.A., which owns a number of other "Wind" brand telecommunications companies. "

I'd say wind mobile fundamentally changed the wireless market at the time. They all ended up getting bought out by the big ones eventually, but its effect lingered with discount mobile providers.
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Archanfel wrote: Wind mobile, they were bought out and became freedom mobile now.

"Globalive, a Canadian company which also runs "Yak Communications", was primarily financed by an Egyptian corporation, Orascom Telecom Holding, managed by Wind Telecom S.p.A., which owns a number of other "Wind" brand telecommunications companies. "

I'd say wind mobile fundamentally changed the wireless market at the time. They all ended up getting bought out by the big ones eventually, but its effect lingered with discount mobile providers.
Exactly. All of that buzz over easing foreign ownership created no new competition, didn't lower prices for consumers, and only succeeded in allowing more foreign companies to profit from our protected and heavily regulated industries. Wind is gone and Freedom mobile is owned by Shaw (another huge telecommunications company) that had plans to enter that market anyway.

That being said, the damage to the Canadian economy and consumers thus far has been minor so who knows.

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