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Core 1..154 Hansard (PRISM::Advent3b2 7.00) CANADA House of Commons Debates VOLUME 140 Ï NUMBER 024 Ï 1st SESSION Ï 38th PARLIAMENT OFFICIAL REPORT (HANSARD) Monday, November 15, 2004 Speaker: The Honourable Peter Milliken CONTENTS (Table of Contents appears at back of this issue.) All parliamentary publications are available on the ``Parliamentary Internet Parlementaire´´ at the following address: http://www.parl.gc.ca 1299 HOUSE OF COMMONS Monday, November 15, 2004 The House met at 11 a.m. The Speaker uses the following criteria for selection: report stage motions will not be selected for debate if they were ruled inadmissible in committee; they could have been presented in Prayers committee; they were defeated in committee; they were considered and withdrawn in committee; they are repetitive, frivolous or vexatious; or, they would unnecessarily prolong the proceedings at GOVERNMENT ORDERS report stage. [Translation] INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT (AIRCRAFT EQUIPMENT) ACT Motions may be selected if they further amend an amendment The House proceeded to the consideration of Bill C-4, an act to adopted by the committee, make consequential changes to the bill implement the Convention on International Interests in Mobile based on an amendment in committee, or delete a clause. Equipment and the Protocol to the Convention on International [English] Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, as reported from committee without amendment. If members believe that their report stage motion is of exceptional significance but does not meet the selection criteria, they should send Ï (1100) a letter of explanation to the Speaker. From time to time the Chair [Translation] may be persuaded to override the selection criteria in the interest of SPEAKER'S RULING fairness, and this letter should be sent when the report stage motion is submitted to the Journals Branch. The Speaker: Given that this is a new Parliament with many new members and that this is the first occasion that we are considering Finally, I would like to urge all chairs of any committee with a bill report stage motions to amend a bill, I would like to take this before it to afford new members of Parliament every opportunity to opportunity to briefly explain how report stage motions are treated participate fully. I recognize that this may take a little extra time but by the Chair. better in committee than in the House. [English] I would also remind all hon. members, experienced and new, that the committee staff are ready to answer any questions that you may There are two initial decisions that the Speaker takes on each have. motion. The first one concerns procedural admissibility. If the motion does not respect the general rules of admissibility it will not For Bill C-4 there are six motions in amendment standing on the be printed on the notice paper and will be returned to the member notice paper for the report stage. with a short explanation. This means there is no opportunity to debate such motions. [Translation] The second decision concerns whether the report stage motions on Motions Nos. 1 to 6 will not be selected by the Chair because they the notice paper will be selected for debate. could have been presented in committee. Consequently, the House will proceed to consider the motion to concur in report stage. The Speaker has been rigorously exercising a power of selection Ï (1105) since March 21, 2001, following an amendment to the Standing Orders made on that day, as I recall. The purpose of this [English] discretionary power of selection is to ensure that the main Hon. Aileen Carroll (for the Minister of Transport) moved that opportunity for amending a bill is in committee stage and not later the bill be concurred in. at report stage in the House. (Motion agreed to) Report stage exists as an opportunity for the House to examine a The Speaker: When shall the bill be read a third time? By leave, committee's work on a bill. If report stage either duplicates or now? replaces committee stage, then its original purpose is lost and the valuable time of the House is wasted. Some hon. members: Agreed. 1300 COMMONS DEBATES November 15, 2004 Government Orders Ï (1110) in my riding, that the aviation sector is particularly vulnerable to Hon. Aileen Carroll (for the Minister of Transport) moved that economic shocks and other geopolitical events. The industry needs the bill be read the third time and passed. to harmonize the international legal regime to reduce risk and increase certainty for the aviation creditors and this protocol will do Hon. Jim Karygiannis (Parliamentary Secretary to the that. Minister of Transport, Lib.): Mr. Speaker, I am pleased to have the opportunity today to rise and address the House on Bill C-4, the international interest in mobile equipment (aircraft equipment) act. On March 31 Canada became the 28th state to sign the convention and protocol. Other countries with significant airline and aerospace The bill would permit the implementation of the provisions of the industries, including France, Germany, the United Kingdom and the convention on international interests in mobile equipment and the United States, have also since then signed. protocol to the convention on international interests in mobile equipment on matters specific to aircraft equipment that are within federal jurisdiction. It incorporates most of the provisions of the Along with the adoption of the convention and protocol, Bill C-4 convention and protocol by reference and other provisions through provides for targeted amendments to various piece of insolvency amendments to existing legislation. legislation and to the Bank Act. There are currently various periods within which creditors are subject to a stay under the Bankruptcy and The convention and protocol will establish an international Insolvency Act, the Companies' Creditors Arrangement Act and the harmonized framework for the financing of aircraft equipment. Winding-up and Restructuring Act. There are no existing rules that Within this framework the value of the aircraft would be used as a apply specifically to aircraft and aircraft equipment. This is security for payment as in the case of a mortgage or a financing something that is hamstringing the industry. The industry is asking lease. for a unified solution. The industry is asking that we come forth with The adoption of the legislation and the eventual ratification of the specific regulations to the industry, and this is what we are trying to convention and protocol will help the Canadian airline and aerospace do here today. industries compete more effectively in the global economy by providing greater security for creditors. Ï (1115) The proposed amendments to the federal legislation will reduce the financial risk to creditors, allowing them to make greater levels Bill C-4 and the convention and protocol that it seeks to bring into of financing available for aircraft purchasing at more competitive force provide for a special remedy for creditors in the case of rates. This will translate into lower costs for airlines purchasing or insolvency. It would impose a maximum stay period of 60 days on leasing aircraft which in turn will enhance their competitiveness and creditors with security on aircraft or aircraft equipment. This would strengthen the airline and aerospace sectors. The expected result is a give creditors, the financiers and the companies 60 days in which to direct positive impact on earnings, investment and overall profit- come to some sort of an agreement or to hash things out. The ability for the Canadian aviation sector. adoption of this stay period will allow creditors to reclaim aircraft or aircraft equipment after 60 days if the debtor does not incur defaults Canada played a leadership role in the negotiation of a convention under the security agreement. This will increase certainty for and protocol because various groups, including provinces, territories, creditors by reducing their financial risks, resulting in lower airlines, industry associations and aircraft manufacturers, supported financing costs. the objectives of the instruments. The convention and protocol were negotiated over the period of 1996 to 2000, with the support and participation of various groups. Let us go over a couple of other facts. Consumers will benefit too The negotiation process came to fruition in 2001 with the adoption through increased airline services and/or lower fares. Another benefit of the instruments at a diplomatic conference in Cape Town, South of facilitating the acquisition of more modern aircraft is that air Africa. transportation can become safer and environmentally cleaner. For the record, I want to read some notes about what happened. The adoption of a fixed 60-day period will level the playing field In 1988 a Canadian delegate to the International Institute for the between Canada and the United States, since the United States Unification of Private Law, UNIDROIT, was the first to propose the already benefits from a similar provision under the U.S. bankruptcy establishment of an international registry for security interests in code. Stakeholders were consulted and supported the proposed aircraft. Since then, the governments and industry worldwide have approach. cooperated in developing the convention and aircraft protocol. Canada's active involvement in the negotiations, leading up to the The adoption of significant amendments to Canada's insolvency adoption of the convention and aircraft protocol, highlighted its laws is expected to have benefits for Canadian aircraft manufac- commitment to seeking global solutions to global problems, in turers, financiers and airlines on the international level. cooperation with the rest of the international community. It is evident, with recent events such as September 11, the global The convention and protocol would also establish an international economic downturn, high fuel prices, SARS, which was an epidemic registry in which interests in aircraft equipment would be registered.
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