OTTAWA – The Canadian Bar Association questions the need for a broad public interest merger and acquisition review procedure for transportation mergers beyond what applies to other Canadian industries, as proposed in Bill C-11, Canada Transportation Act (CTA) amendments.
“As the language of the bill is unclear and potentially very broad in scope, the proposed amendments could have a significant impact on a wide range of mergers and acquisitions that involve a transportation business,” says John Bodrug, Vice-Chair of the Association’s National Competition Law Section.
“At a time of heightened concern for competitiveness of Canadian businesses, we question the need for additional regulation of such wide and uncertain application, and recommend that these provisions be either removed or narrowed in scope.”
If passed, Bill C-11 would significantly expand the types of transportation mergers subject to a broad public interest review by the federal cabinet. Similar review provisions in the CTA are currently restricted to mergers and acquisitions involving air transportation.
In its 17-page submission to the Senate Transport and Communications Committee, the CBA’s National Competition Law and National Air and Space Law Sections say that, if a special public interest review process for transportation mergers is added to the CTA, the process needs to be changed.
“Specifically, the bill should ensure that the competition commissioner’s role is restricted to competition concerns and not broad public interest issues,” says James Musgrove, Chair of the CBA’s National Competition Law Section. The CBA says competition issues with mergers involving transportation businesses are better addressed under the usual merger review regime in the Competition Act.
John D. Bodrug, Vice-Chair, National Competition Law Section, will present the CBA’s submission to the Senate and Transport and Communications Committee on Tuesday, May 1 at 9:30 a.m. in Room 257, East Block. The CBA submission is available online at:
http://www.cba.org/CBA/submissions/pdf/06-43-eng.pdf.
The Canadian Bar Association is dedicated to improvement in the law and the administration of justice. Some 37,000 lawyers, law teachers, and law students from across Canada are members.
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CONTACT: Hannah Bernstein, Canadian Bar Association. Tel: (613) 237-2925, ext. 146; E-mail: hannahb@cba.org.
