TT4-2-2003E.pdf - Office des transports du Canada

The main points of the bill were: theestablishment of the Canadian TransportCommission to direct all forms oftransportation under federal control—railways, shipping, airlines and interprovincialtrucking; that railways wouldhave the freedom to set freight rateswithout regulation; and that railwayswould be able to abandon uneconomicbranch lines and passenger services unlessthe government specifically orderedotherwise in the public interest, and thenpaid their deficits.There was one point in which Pickersgilldid not manage to change transportationpolicy, and that was the Crowsnest PassAgreement. A legacy from the time ofAndrew G. Blair, the Crow rate had beenpassed in 1897, giving the CPR a subsidyfor Crowsnest Pass construction in returnfor a reduced freight rate in perpetuity.Although there was no political desire toremove the Crow rate, Pickersgill didattempt to put an amendment into thebill that would allow for a cost study of itat a later date. That was soundly defeated.On March 27, 1967, another major policyshift was announced, this time regardingairlines. Canadian Pacific was allowed todouble its transcontinental service to tworeturn flights a day. It also was allowedto add Calgary, Edmonton and Ottawa toits transcontinental route. (The route hadbeen Vancouver, Winnipeg, Toronto andMontréal.) The policy decision was basedon a study by Stephen Wheatcroft, theBritish economist who had recommendedthe first expansion of Canadian Pacificinto transcontinental service in 1958.The first intimations of change at theBoard of Transport Commissioners camein the Annual Report for 1966, publishedearly in 1967. The opening pages of thereport contained this announcement:“While this report deals with the workof the Board during the 62 years since itsestablishment in 1904, it may well marka historic turning point in the field oftransportation regulation in Canadaand may be the last report submittedby the Board… If legislation (Bill C-231)is enacted, the Board of TransportCommissioners for Canada will bemerged with the Air Transport Board andthe Canadian Maritime Commission intoa new Canadian Transport Commission.”A historic turning point had indeed beenreached. The National Transportation Actwas passed and became law. And it wasCanada’s centennial year. The nation wasgetting ready to celebrate.48Canadian Transportation Agency — 100 Years at the Heart of Transportation