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Section II – Analysis of Program Activity by Strategic Outcome

2.1 Analysis of Program Activity by Strategic Outcome

The Agency's Place in the Government Framework

The whole-of-government framework provides a structured logic model the Agency can use to map its contribution to a set of high-level Government of Canada "strategic outcomes." These outcomes promote long-term benefits to Canadians and are grouped into three broad policy areas: social, economic and international.

Detailed Analysis by Program Activity

The Agency's PAA reflects the pursuit of one strategic outcome:

The Agency has one program activity "the economic regulation of the federal transportation system" which is divided into five sub-activities:

• air transportation;
• rail transportation;
• marine transportation;
• accessible transportation; and
• members and regulatory support.

The contribution of all the major activities to the strategic outcome are discussed below.

Spending and Contribution to Results by Program Area

Program Area	Actual ($000's) 2006–2007	Fair, effective and efficient resolution of federal transportation issues	Removal of undue obstacles from federally-regulated transportation for persons with disabilities	Protection of economic and other interests of transportation users, carriers and other affected parties
Air transportation	6,993 (79 FTEs)	X		X
Rail transportation	4,772 (44 FTEs)	X		X
Marine transportation	562 (6 FTEs)	X		X
Accessible transportation	1,909 (18FTEs)		X
Members and regulatory support	5,306 (39 FTEs)	X	X	X
Corporate services	7,009 (64 FTEs)	X	X	X
TOTAL	26,551 (250 FTEs)

Financial Resources by Program Area (thousands of dollars)

Program Activity	2006–2007
	Planned Spending	Total Authorities	Actual
Air transportation	6,675	7,138	6,993
Rail transportation	4,917	4,650	4,772
Marine transportation	810	746	562
Accessible transportation	2,048	2,212	1,909
Members and regulatory support	5,643	5,638	5,306
Corporate services	6,724	7,451	7,009
Total program activity	26,817	27,835	26,551

Air Transportation

Description and expected results

This sub-activity is responsible for:

• resolving complaints related to carriers' application of their tariff provisions and on prices applied by air carriers on non-competitive routes within Canada to ensure that air carriers licensed to operate in Canada meet the legislative requirements in place to protect Canadians;

• ruling on appeals of new or revised air navigational charges imposed by NAV CANADA to ensure that principles used to establish them are in compliance with the legislation;

• licensing air carriers that provide domestic or international publicly available air transportation services to ensure that carriers hold liability insurance, a valid Canadian aviation document and that Canadian carriers are owned and controlled by Canadian citizens;

• administering a permit system for international charter operations to protect international passenger charter flight advance payments; and

• helping to negotiate and implement international air transport agreements and to administer international air tariffs to ensure that bilateral agreements are implemented fairly, while balancing the interests of all parties.

Results achieved:

Tariffs

Air carriers operating publicly available air services in Canada are required to publish a tariff, setting out their terms and conditions of carriage, fares, rates and charges. These tariffs must be made available to the public on request. With certain exceptions, tariffs for international services to and from Canada must be filed with the Agency.

The Agency helps to protect the interests of the travelling public, shippers and Canadian air carriers by ensuring that carriers abide by the terms and conditions of carriage, fares, rates and charges set out in their published tariffs; that proposed fares, rates, charges and terms and conditions of carriage are clear, just, reasonable and not unduly discriminatory; and that they are consistent with Canadian legislation and regulations, and with the relevant international agreements.

Most complaints the Agency receives from individuals centre on whether an air carrier has properly applied its tariff. If the Agency finds that it did not, the Agency can order the carrier to properly apply its tariff and to reimburse out-of-pocket expenses that the passenger may have incurred due to the incident. While a few of these complaints are resolved using the quasi-judicial process, the large majority are addressed using an informal process in which Agency employees investigate the complaints to determine their validity and, where appropriate, negotiate settlements between carriers and complainants. During fiscal year 2006–2007, the Agency closed 831 cases (as compared with 560 in 2005–2006).

The Agency also deals with complaints related to whether a tariff is just and reasonable. In such cases, if the Agency determines that a particular provision of a tariff is either unjust or unreasonable, it may order the carrier to amend its tariff. No compensation is payable under such circumstances.

A key decision issued in June 2006 involved the matter of the death in transit of a pet dog that Air Canada was transporting from Smithers, British Columbia, to Winnipeg, via Vancouver. In its decision, the Agency stated that exclusions from liability for the carriage of animals are not unreasonable given the inherent fragility of living creatures and the occasional hardships associated with the carriage of animals in the bellyhold of an aircraft. However, the Agency stated that an air carrier should provide adequate notice of its exclusion from liability for the carriage of animals, especially where it disclaims any liability, to allow persons to make informed choices about the carriage of animals.

The Agency's decision required Air Canada to revise its tariff to set out the means by which it provides such notice to passengers. Such notice must accurately reflect Air Canada's limitations of liability and be set out in clear and unambiguous language.

The Agency is also responsible for formal investigations into complaints against carriers that a fare or a cargo rate published, or offered for a route on which there is little or no competition, is unreasonable. The Agency issued one such decision in 2006–2007.

NAV CANADA Charges

The Agency reviews appeals of new or revised charges for air navigation services implemented by NAV CANADA. Appeals can be filed only if it is established that NAV CANADA has not observed the statutory notice requirements, announcement requirements, or the charging principles set out in the Civil Air Navigation Services Commercialization Act.

On April 18, 2006, NAV CANADA filed an announcement of revised service charges with the Agency. Users, groups of users and representative organizations of users of Canada's air navigation services then had 30 days to file any appeals with the Agency. On May 16, 2006 the Canadian Owners and Pilots Association and the Helicopter Association of Canada each filed an appeal pursuant to the Civil Air Navigation Services Commercialization Act. The appeals related to a new $10 daily charge that would have been applied to aircraft weighing three tonnes or less using one of seven major international airports in Canada.

The Agency dismissed the appeals stating, among other matters, that the Civil Air Navigation Services Commercialization Act does not prohibit NAV CANADA from applying the new daily charge in addition to the existing annual fee. Furthermore, there was no evidence in the appeals indicating that NAV CANADA had failed to observe the charging principles, nor had any evidence been provided to support the view that the new daily charge represented "double billing."

Licensing and charters

As the Canadian licensing authority for publicly available air services, the Agency licenses Canadian air carriers to transport passengers and cargo within Canada. It also licenses Canadian and foreign applicants to operate scheduled and non-scheduled (charter) international air services to and from Canada. A licence applicant must have adequate liability insurance and must hold a Canadian aviation document issued by Transport Canada. If an applicant proposes to operate commercial air services as a Canadian air carrier, it must prove that it is Canadian-owned and controlled. Also, if a Canadian applicant proposes to use medium or large aircraft, it must meet certain financial requirements. To maintain their licences, all licence holders must continue to hold a valid Canadian aviation document and have adequate liability insurance.

During fiscal year 2006–2007, the Agency processed 1,299 air licensing applications, which included applications for new licences, suspensions, cancellations and reinstatements.

On September 26, 2006, the Agency issued licences to Porter Airlines Inc., a new regional passenger carrier, to operate domestic and non-scheduled international services using medium aircraft. It also issued the company a scheduled international licence on December 19, 2006. Prior to issuing these licences, the Agency reviewed, among other matters, the ownership and control of Porter Airlines Inc., to ensure that it met the Canadian ownership and control requirements defined in the Canada Transportation Act.

The Agency grants charter permits to Canadian carriers to transport Canadian-originating passengers and cargo to foreign countries, and to foreign carriers to transport passengers and cargo from Canada to their home country. In the case of international passenger charter flights originating in Canada, the Agency also ensures that advance payments are protected through a letter of credit or agreement of guarantee that requires the prompt refund of all advance payments received from tour operators and charterers should the air carrier fail to provide the flights. The Agency also receives applications from foreign carriers to transport passengers and cargo between Canada and countries other than their home country. In reviewing these applications, the Agency balances the interests of Canadian travellers and shippers with the interests of affected Canadian carriers. With respect to passenger charter flights between Canada and third countries that do not also involve a service between the carriers' home country and Canada, these applications are considered only under special circumstances and on an exceptional basis and where justified by the applicant.

During 2006–2007, the Agency issued 1,637 charter permits and denied five permit requests.

In July 2006, carriers relied heavily on the Agency's 24-hour service to ensure the safe return of Canadian citizens during the crisis in Lebanon. Working closely with Transport Canada, the Agency used this service to grant on very short notice the authorities and exemptions necessary to allow carriers' operations on behalf of the Government of Canada.

The Canada Transportation Act requires air carriers to give notice of intention to discontinue or reduce domestic air services in certain circumstances. The Act also requires them to provide an opportunity for elected officials of the local government of the affected communities to meet with the air carrier to discuss the possible impact of such changes. During fiscal year 2006–2007, the Agency handled two applications for reductions or exemptions to the notice requirements.

Bilateral air transport agreements

The Government of Canada negotiating team – comprised of officials from Transport Canada, the Agency, and the Department of Foreign Affairs and International Trade and led by Canada's Chief Air Negotiator – negotiates air transport agreements with other countries. The Agency is also responsible for the timely implementation and administration of those portions of international air transport agreements and arrangements that fall within the Agency's jurisdiction. This task can involve issuing scheduled international licences and authorities, for example, authorizing code share services.

As of March 31, 2007, Canada had 76 bilateral air transport agreements and arrangements, which provide the frameworks governing primarily scheduled international air services. During the year, Agency staff participated in negotiations with 11 different countries, including the United Kingdom, Brazil, Portugal, Algeria, Croatia, Serbia, and Japan. In addition to issuing new scheduled international licence authorities, the Agency addressed 110 applications relating to bilateral air agreements and arrangements involving such matters as code sharing, leasing of aircraft with flight crews and extra-bilateral authorities.

Regulatory compliance

To ensure regulatory compliance with Canadian law, Agency enforcement staff - located in field offices in six cities across Canada - conduct periodic inspections of Canadian-based licensees and of passenger terminals that fall under the Agency's purview. Staff members also investigate allegations that companies and individuals are operating in contravention of the Canada Transportation Act and related regulations. Sanctions for non-compliance range from the assessment of an administrative monetary penalty, to cease and desist orders and formal reprimands. During fiscal year 2006–2007, the Agency completed 306 on-site inspections of Canadian-based air carriers and passenger terminal operators. Of the 60 informal warnings it issued for minor contraventions, 54 went to air carriers and six to passenger terminal operators. The Agency also initiated 25 investigations of carriers or individuals suspected of operating illegal air services in Canada, and identified 14 contraventions.

Detailed statistics and further information on licensing, charter and tariff activities can be found in the Agency's Annual Report for 2006 which is available on its Web site at www.cta.gc.ca/publications/ann-rpt/2006/index_e.html.

Rail transportation

Description and expected results

This sub-activity is responsible for:

• resolving disputes between shippers and rail carriers regarding issues such as: interswitching, competitive or single line rates; joint rates; running rights; joint track usage; and level of service to ensure that shippers have access to alternative railways, adequate level of service and reasonable rates;

• resolving disputes between railway companies and municipalities, road authorities, landowners and others that interact with them to ensure a balance between parties of varying economic stature and a lower-cost, more efficient process to resolve disputes;

• making an independent and fair assessment of the annual revenue caps for CN and CP for the movement of Western grain to ensure the railway companies have not exceeded their revenue entitlement for the movement of Western grain;

• issuing rail certificates of fitness to federally-regulated rail carriers to ensure that they hold adequate liability insurance; and

• assessing the environmental, operational, social and other impacts of proposed railway construction projects and ordering corrective measures as required to ensure the requirements of the Canadian Environmental Assessment Act and the interests of localities affected by the proposed lines are taken into account.

Results achieved

Dispute resolution

Regarding rail transportation, some of the provisions of the Canada Transportation Act that the Agency administers are intended to ensure that shippers have access to alternative railways, an adequate level of service and reasonable rates. The Agency can consider applications or complaints related to interswitching, competitive or single line rates, joint rates, running rights and level of service. During the year, the Agency received four level-of-service complaints to add to three outstanding complaints. The new applications the Agency was considering at year-end related to issues such as inadequate rail service, and inequitable car allocation. At year end, four complaints had been settled and three remained outstanding, including one case with wide-ranging implications.

Shippers are also protected through access to a final offer arbitration process administered by the Agency. Final offer arbitration is a confidential method of settling a matter through an independent arbitrator. During this fiscal period, the Agency received six final offer arbitrations requests, all of which were referred by year end for arbitration.

The Agency is required to annually assess the operating costs of the two Class 1 railways, Canadian National Railway Company (CN) and Canadian Pacific Railway Company (CP). During 2006–2007, the Agency finalized the determination of the 2004 unit costs and costing manuals for CN and CP. It developed the 2007 interswitching costs based on site visits to CN and CP rail yards in Vancouver, Edmonton and Winnipeg. Additionally, the Agency developed the 2006 preliminary price indices for labour, material and fuel, and determined the 2006 operating statistics.

The Agency also has a mandate to resolve disputes between railways and other parties. During fiscal year 2006–2007, the Agency resolved 11 formal and numerous informal disputes between railways and municipalities, road authorities, utility companies, landowners and private citizens. Issues under dispute included apportionment of costs for grade separations and for grade crossing protective devices; rights to private crossings; terms and conditions of utility crossings; and the location of road and pipeline crossings. This function ensures a balance between parties of varying economic stature, allows for judicial remedies where parties of different jurisdictions may be in conflict and provides a less expensive, more efficient process for resolving disputes than potentially lengthy and costly court proceedings.

The Agency further assisted parties by initiating a full review to update the Guide to Railway Charges for Crossing Maintenance and Construction. The Agency maintains this guide, which sets a nation-wide rate structure for work performed by railway companies related to crossings and similar projects. The guide reduces or eliminates disputes involving invoicing matters between Canadian municipalities or road authorities and railways, while also reducing the administrative burden on the parties. During the year, the Agency consulted with CN and CP to ensure that the upcoming revision to the guide (scheduled to be released in July 2007) will incorporate the most accurate, up-to-date railway costing and operational information.

Western grain revenue caps

In each crop year, ending July 31, the Agency regulates the amount of revenue earned for the movement of statutory grain by rail in Western Canada. The program provides a flexible pricing regime for transporting western grain by rail while safeguarding grain shippers and farmers from excessive rail rate increases. As part of this program, the Agency annually determines the maximum revenue entitlement (also known as the revenue cap) for CN and CP for the movement of this grain. Then it determines the actual revenues CN and CP earned, and compares them with this revenue cap. This was the Agency's sixth year for making revenue cap determinations.

In 2006–2007, the Agency found that, both CN and CP's actual revenue exceeded their respective revenue cap for the crop year 2005–2006. As a result, CN and CP had to pay the difference between their actual revenue and their respective revenue cap plus a 5-per-cent penalty to the Western Grains Research Foundation, a total of $2,835,996 for CN and $1,570,312 for CP. This decision is available on the Agency's Web site at www.cta.gc.ca/rulings-decisions/decisions/2006/R/719-R-2006_e.html. CN appealed a portion of this ruling to the Federal Court of Appeal and this appeal was pending at March 31, 2007.

The Agency's administrative responsibilities for the revenue cap program include determining an annual inflation index (known as the volume-related composite price index), which is factored into each railway's revenue cap. To determine the inflation index, the Agency consults with parties in the grain-handling and transportation industry, including producer representatives, shipper organizations, railway companies, grain companies, and federal, provincial and municipal governments. It also verifies and audits detailed information in railway submissions.

The Agency was also required to adjust the revenue caps for CN and CP to include the leasing costs of hopper cars owned by the Canadian Wheat Board, which were previously provided free of charge to the railways. Agency Decision No. LET-R-113-2006 dated April 27, 2006, determined that the volume-related composite price index for crop year 2006–2007 would be adjusted by approximately 1.24 per cent to take into account the Canadian Wheat Board's withdrawal from service of approximately 3,500 hopper cars, followed by the subsequent lease of these cars to CN and CP.

Certificates of fitness

The Agency issues certificates of fitness when it is satisfied that a company proposing to construct or operate a railway under federal jurisdiction has adequate liability insurance. Certified companies are then monitored for continued compliance. During 2006–2007, it issued one new certificate to Great Canadian Railtour Company Ltd. to operate a tourist train through trackage agreements with CN and CP in the provinces of British Columbia and Alberta. The Agency also amended four certificates for existing companies. It monitors all 35 existing federal railways for continual compliance with the Agency's insurance requirements.

Railway line construction assessments

The Agency is also responsible for assessing the environmental, economic, operational, social and other impacts of railway line construction in Canada. In 2006–2007, the Agency approved the construction of two portions of the proposed Ottawa light rail transit line, the construction of a new railway spur near Woodstock, Ontario and the diversion of an existing railway line near Milk River, Alberta. In so doing, the Agency took into account the requirements for railway operations and services, the interests of the localities that would be affected by the proposed construction, and the requirements of the Canadian Environmental Assessment Act (CEAA). In addition, it allowed one railway crossing project and three utility crossing projects to proceed under the CEAA once it was assured there would be no significant adverse environmental effects. It continued to assess and monitor 15 other projects that will likely require Agency approval in future, such as the proposed Pearson airport rail link in Toronto, for their potential effect on the environment.

Economic regulation

The Agency's role as an economic regulator of railways under federal jurisdiction expanded considerably in 2005 with CN's acquisition of BC Rail in the previous year. The purchase of BC Rail, the third-largest railway in Canada, with 2,300 kilometres of track, increased the size of the federal railway system subject to the Agency's jurisdiction and also gave the Agency a new monitoring responsibility.

In response to concerns from shippers, the Competition Tribunal, in approving the purchase, required the Agency to monitor CN's transit times to deliver railway cars along the former BC Rail lines from northern British Columbia to Vancouver interchanges - both when shippers are using only CN service to deliver their goods and when their loads are being switched to competing railways. The Agency must carry out comparative analysis of CN transit times and benchmark BC Rail times from five zones in northern B.C. to the Vancouver area. Then it must regularly submit reports to CN, connecting carriers in Vancouver and the Competition Bureau. In 2006–2007, the Agency issued four transit time reports covering the last quarter of 2005 and the first three quarters of 2006. Some interline traffic in certain zones was under the benchmark while some exceeded the benchmark, but not at a level significant enough to indicate any operational difficulties.

Details of the Agency's rail transportation activities can be found in the Agency's Annual Report for 2006 which is available on the Agency's Web site at www.cta.gc.ca/publications/ann-rpt/2006/index_e.html (refer to the Rail Transportation chapter). Information is also available in the Web site's rail section.

Marine Transportation

Description and expected results

This sub-activity is responsible for:

• resolving complaints about user fees charged by Canadian port authorities and the St. Lawrence Seaway Management Corporation to determine if they are unjustly discriminatory;

• ruling on objections to proposed pilotage charges to determine whether the pilotage authority has based its fees to continue operations on a self-sustaining financial basis, and if the proposed user charges are fair, reasonable and in the public interest;

• resolving complaints that shipping conference agreements or actions by a member of a cartel of shipping lines substantially reduces competition and results in an unreasonable increase in price or a reduction in service; and

• determining if Canadian ships are available to operate commercial services proposed to be provided by foreign ships in Canadian waters to ensure that no foreign ships will be allowed to operate commercial services in Canadian waters if a suitable Canadian ship is available to carry out the services.

Results achieved

Canada Marine Act

Under the Canada Marine Act, the Agency may investigate complaints about fees set by the port authorities, which manage operations at major ports across the country. Also under this Act, the Agency may investigate complaints regarding tolls set by the St. Lawrence Seaway Management Corporation and the Federal Bridge Corporation.

After individuals and companies filed a series of complaints in October 2005 alleging unjust discrimination in passenger fees imposed by the Nanaimo Port Authority in British Columbia, the Agency carried out an investigation which included a public hearing in Nanaimo in May 2006. The Agency ruled at the end of June 2006 that the passenger fees were unjustly discriminatory and should be replaced. After the Agency issued its ruling, the Nanaimo Port Authority applied to the Federal Court for leave to appeal the Agency decision. The Federal Court granted leave to appeal and heard the case at the end of May 2007, when a ruling from the bench dismissed the application and upheld the Agency ruling.

No complaints were filed in 2006–2007 regarding tolls set by the St. Lawrence Seaway Management Corporation and the Federal Bridge Corporation.

Pilotage Act

Under the Pilotage Act, most ships entering or leaving major Canadian ports or traversing Canadian waterways must have a qualified Canadian marine pilot on board to navigate. Four pilotage authorities (Atlantic, Laurentian, Great Lakes and Pacific) are responsible for pilotage services in their respective regions and set the tariffs for these services. The Agency has the mandate, upon objection, to investigate whether any proposed tariff increase is in the public interest.

In June 2006, the Governor in Council rescinded an Agency ruling of October 2005 which had concluded that a Laurentian Pilotage Authority (LPA) tariff proposal in March 2005 was prejudicial to the public interest. In October 2006, the LPA published a proposed tariff increase with an effective date of January 1, 2007. Objections were filed against this tariff proposal and the Agency was in the midst of an investigation at the end of the fiscal year. The Agency is expected to issue a ruling on the tariff proposal in fiscal year 2007–2008.

In May 2006, the Great Lakes Pilotage Authority (GLPA) published a tariff proposal that prompted an objection by the Canadian Shipowners Association. The Agency ruled in October 2006 that the tariff proposal was not prejudicial to the public interest and could be implemented. In October 2006, the Atlantic Pilotage Authority published proposed tariff increases for eight compulsory pilotage areas. No objections were filed regarding these proposed increases.

In July 2006, the Pacific Pilotage Authority published a tariff proposal and no objections were filed with the Agency. In February 2007, the GLPA published a tariff proposal to continue a 2 per cent surcharge to generate revenue to repay bank loans. No objections were filed against this tariff proposal.

Shipping Conferences Exemptions Act

Under the Shipping Conferences Exemption Act, a person may file a complaint with the Agency if he or she believes that a conference agreement or an action by a member line reduces competition and results in an unreasonable increase in price or a reduction in service. No complaints under this Act were filed in 2006–2007.

Coasting Trade Act

Under the Coasting Trade Act, the transport of goods, passengers and any other commercial activity in Canadian waters, including the continental shelf area, is reserved for Canadian-registered vessels, except where no suitable Canadian vessels are available to carry out an activity. Before an applicant can get a coasting trade licence to bring a foreign vessel into Canadian waters for a commercial activity, the Agency must determine that no suitable vessel in the Canadian marine industry is available. In 2006–2007, the Agency processed 118 coasting trade applications (as compared with 100 in 2005–2006). Of these, 99 were approved and one was denied. Ten applications were withdrawn (no Agency ruling required) and eight applications were outstanding at the end of the fiscal year.

In most cases (93 out of 100 where a ruling was issued), there were no offers of Canadian vessels from the Canadian marine industry so the Agency ruled that there were no suitable Canadian ships available. Forty-five applications related to large petroleum tankers, while the other applications related a mixture of specialized ships such as seismic vessels, drilling vessels and passenger vessels. The average processing time for coasting trade applications in 2006–2007 was 13 days.

Details of the Agency's marine transportation activities can be found in the Annual Report for 2006 (refer to the Marine Transportation chapter), which is available on the Agency's Web site at www.cta-otc.gc.ca/publications/ann-rpt/2006/index_e.html and in the marine section of the Web site.

Accessible Transportation

Description and expected results

This sub-activity is responsible for:

• resolving complaints, promulgating regulations, developing codes of practice and standards concerning the level of accessibility in modes of transport under federal jurisdiction, and communicating with the transportation industry and the community to ensure that all modes of federally-regulated transportation are accessible to persons with disabilities by removing undue obstacles to their mobility and to increase awareness about industry and consumer rights and obligations.

Results Achieved

The case-by-case approach

When travellers with disabilities believe they have encountered an undue obstacle, they may contact the Agency for help. If the parties do not agree to resolve the complaint through mediation or facilitation, the Agency will investigate the complaint to determine whether an obstacle exists and whether it is undue.

Through the years, the Agency has received several complex applications that raise significant issues that, due to their importance to industry and to persons with disabilities, have required oral hearings, expert evidence, and extensive analysis. These issues have included issues related to obesity or allergies, both of which are "grey area" disabilities that require a case-by-case analysis to assess whether a particular individual is a person with a disability in the context of the federal transportation network. The Agency is also involved in hearings in other complex cases that raise equally significant issues such as the cost of additional seating needed by persons with disabilities and matters involving medical oxygen on board aircraft. The hearing in the former case was held in November 2006. The Agency will hold a hearing in October 2007 to hear and test evidence regarding the possibly undue obstacles faced by persons requiring medical oxygen to travel by air. The Agency decisions in these matters can be significant for both the industry and the community of persons with disabilities.

In addition to addressing these complex issues, the Agency received 43 new complaints last year involving travellers with disabilities compared with 50 in 2005–2006. Of the 62 complaints closed during the year, which included some cases outstanding from the previous year, 15 were closed through the issuance of an Agency ruling, six were settled through mediation, and 22 complaints were withdrawn as a result of facilitation by Agency staff. The other complaints were closed because the applicant failed to provide information necessary to complete the application. In addition, the Agency acted as a facilitator in eight cases to resolve matters prior to travel, thus avoiding potential complaints.

Approximately 59.5 per cent of the issues that were found to constitute undue obstacles involved services, such as, assistance in boarding or disembarking, or assistance related to mobility aids. The other 40.5 per cent involved the communication of information. To address these undue obstacles, the Agency ordered 37 corrective measures.

In 2006–2007, the Supreme Court of Canada allowed the Council of Canadians with Disabilities' appeal from the Federal Court of Appeal's decision regarding the matter of Council of Canadians with Disabilities v. Via Rail Canada Inc. (VIA). This judgement restored the Agency's preliminary and final decisions in this case, thereby requiring VIA to implement corrective measures related to its Renaissance rail cars, as ordered by the Agency.

The Supreme Court of Canada judgement, issued on March 23, 2007, relates to the Agency's adjudication of complaints under the accessible transportation provisions in Part V of the Canada Transportation Act. This judgement has implications for the Agency in its consideration of accessibility-related applications. After the Supreme Court of Canada issued its decision, the Agency reactivated six cases, that the Agency had placed on hold pending the issuance of this judgement. The Agency also determined that the Supreme Court of Canada judgement has implications for the processing of accessibility complaints. In part, the Agency determined that for new complaints:

• parties would be provided with an explanation of the test that the applicant must meet to establish that an obstacle was encountered, failing this, the Agency would dismiss the application;

• parties would be provided with an explanation of the new undue hardship test, the elements of this test, and the burden of proof as this applies to respondent service providers.

In terms of certain ongoing complaints, the Agency determined that parties should be provided with a further opportunity to file submissions, in light of the new undue hardship test. Wording has been added to Agency decisions to set out the approach to the determination of obstacles and the undueness of obstacles.

The systemic approach

The Agency has developed regulations, codes of practice and guidelines to make public transportation by air, rail and ferry more accessible to persons with disabilities. It developed these standards in consultation with associations of and for persons with disabilities, seniors, manufacturers, carriers, terminal operators and other service providers. They are available on the Agency's Web site at www.cta.gc.ca/access/index_e.html.

The Agency uses various methods to assess the level of industry compliance with the Agency's codes of practice, including site visits, discussions with service providers, Web site reviews, reviews of contracts, periodic surveys and written reports from carriers and terminal operators, on their measures to meet code requirements. Many of these methods give transportation service providers a chance to exchange information and obtain guidance that will help them implement accessibility improvements more quickly.

In 2006–2007, Agency staff specifically continued to monitor the Communication Code introduced in 2004, a code of practice for removing communication barriers for travellers with disabilities. Staff met with transportation service providers to discuss its implementation and to clarify related issues. The Agency also continued to help service providers draft their multiple format policies, as required by the code, to provide information to passengers with disabilities in formats that complement or replace conventional print or video products.

Given the number of Agency codes of practice and the increased number of entities involved, the Agency began a study on other forms of monitoring methods in 2006–2007 to improve efficiency and enhance compliance levels. This review will continue in 2007–2008.

The Agency also issued information bulletins to those subject to the Communication Code including an update of the Canadian Standards Association's Accessible Design for Self-Service Interactive Devices standard.

In 2006–2007, the Agency continued to develop a passenger terminal accessibility code applicable to the air, rail and ferry modes of transportation, as part of its efforts to make the federal transportation network more accessible to persons with disabilities.

It held a public consultation on the issue and publicized the consultation by sending approximately 600 e-mails and 2,700 letters to members in its accessibility database. The consultation was also featured prominently on the Agency's Web site. The Agency held several meetings and discussions with terminal operators and conducted written consultations with the Agency's Accessibility Advisory Committee.

In 2006–2007, the Agency also developed an accompanying guide that includes practical information and resources to help transportation service providers implement the new code. This guide documents existing best practices in accessible Canadian terminal operations and notes other best practices identified in international terminals as well as practical suggestions and a variety of resources for the implementation of the terminal code provisions.

The Passenger Terminal Accessibility Code, as well as the accompanying guide, was released at the 11th International Conference on Mobility and Transport for Elderly and Disabled Persons (TRANSED) in Montréal in June 2007.

As part of its outreach program, the Agency also undertakes liaison and monitoring activities that directly support its mandate to remove undue obstacles.

In 2006–2007, the Agency examined eight training programs as part of its enforcement work to ensure that affected carriers and terminal operators in the air, rail and ferry modes comply with the Agency's Personnel Training for the Assistance of Persons with Disabilities Regulations.

This monitoring and the resulting changes ensure that the training provided to transportation service personnel is comprehensive and appropriate, thereby helping to prevent obstacles from arising in the first place. In determining which carriers and facilities to visit, Agency staff gives consideration to, among other factors, issues raised by the community of persons with disabilities and new entrants to the industry.

The Agency also monitors service providers' tariffs, public information (including that contained on Web sites), and procedural and flight manuals to ensure that they are consistent with the Agency's regulations regarding the carriage of persons with disabilities.

Education is an essential element of the Agency's outreach program, which is especially important when new providers enter the federal transportation network, and when service providers change the way they do business and respond to market forces. In response to requests, Agency employees help service providers prepare their policies, set their terms and conditions of carriage, design their training programs, and address specific problems their passengers face regarding accommodation. For example, in anticipation of the 2007 Canada Winter Games in Whitehorse, staff met with officials of the following facilities to promote the importance of effective training: Yellowknife Airport, Inuvik Mike Zubko Airport, Whitehorse International Airport, Vancouver International Airport, Edmonton International Airport, Norman Wells Airport and Montréal's Pierre Elliot Trudeau International Airport. Agency employees also educate persons with disabilities about what they can expect as they access the transportation network and how best to prepare for their travel to avoid obstacles.

All Canadian travellers benefit from these measures and, since the incidence of disability increases with age, the demand for accessible transportation will be even greater as Canada's population ages.

More information about the Agency's accessible transportation program can be found in the Annual Report for 2006, available on the Agency's Web site at www.cta-otc.gc.ca/publications/ann-rpt/2006/index_e.html.

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