1st Session, 37th Parliament,
49-50 Elizabeth II, 2001

House of Commons of Canada

BILL C-279

An Act respecting the commercialization of VIA Rail Canada Inc.

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short title

1. This Act may be cited as the VIA Rail Commercialization Act.

Definitions

2. (1) The definitions in this section apply in this Act.

``Minister''
« ministre »

``Minister'' means the Minister of Transport.

``VIA Rail''
« VIA Rail »

``VIA Rail'' means the corporation incorporated under the Canada Business Corporations Act under the name VIA Rail Canada Inc.

Same meaning as c. C-44

(2) Unless a contrary intention appears, words and expressions used in this Act have the same meaning as in the Canada Business Corporations Act.

Purpose

3. The purpose of this Act is to provide for the privatization of VIA Rail by the sale of its shares.

Binding on Her Majesty

4. This Act is binding on Her Majesty in right of Canada.

SHARES

Authority re c. F-11

5. (1) The shares of VIA Rail issued immediately prior to the coming into force of this section are hereby transferred to the Minister who, for the purposes of section 90 of the Financial Administration Act, is hereby authorized to acquire the shares.

Shares held in trust

(2) The shares mentioned in subsection (1) shall be registered in the books of VIA Rail in the name of the Minister in trust for Her Majesty in right of Canada, and the Minister shall hold and sell them in accordance with this Act.

Issue and disposal of shares by VIA Rail

6. For the purposes of complying with section 90 of the Financial Administration Act, while VIA Rail is a Crown corporation within the meaning of section 83 of that Act, VIA Rail is hereby authorized to issue and sell or otherwise dispose of shares of VIA Rail on and after the day on which this section comes into force, with the approval of the Minister and the Minister of Finance.

Dealing with shares by Minister

7. (1) For the purposes of section 90 of the Financial Administration Act, the Minister is hereby authorized to acquire, hold, dispose of and otherwise deal with shares of VIA Rail on and after the day on which this section comes into force and on such terms and conditions as the Minister, with the approval of the Minister of Finance, considers appropriate.

Registration and holding of shares

(2) Shares acquired by the Minister pursuant to subsection (1) shall be registered in the name of the Minister in the books of VIA Rail, in trust for Her Majesty in right of Canada, and the Minister shall hold and sell them in accordance with this Act.

FINANCIAL ARRANGEMENTS

Discharge

8. The Minister, with the approval of the Minister of Finance, may

    (a) enter into an agreement or other arrangement with VIA Rail or any other person respecting the acquisition, holding, service, disposal or discharge of or other dealing with any debt or obligation incurred by, or security interest in, VIA Rail;

    (b) enter into any agreement or arrangement necessary or incidental to any activity referred to in subsection 7(1); and

    (c) pay from the proceeds of any sale of shares, debts or obligations of, or security interests in, VIA Rail, amounts in respect of any agreement or arrangement referred to in paragraph (a) or (b).

Adjustment of accounts of Canada

9. The Minister, after consultation with the President of the Treasury Board, shall cause such adjustments to be made in the accounts of Canada as are required as a result of any transaction authorized or required by this Act.

CONSEQUENTIAL AMENDMENTS

R.S., c. F-8

Federal-Provincial Fiscal Arrangements Act

10. Schedule I of the Federal-Provincial Fiscal Arrangements Act is amended by striking out the following:

    VIA Rail Canada Inc.
    VIA Rail Canada Inc.

R.S., c. F-11

Financial Administration Act

11. Part 1 of Schedule III of the Financial Administration Act is amended by striking out the following:

    VIA Rail Canada Inc.
    VIA Rail Canada Inc.

R.S., c. M-13

Municipal Grants Act

12. Schedule III of the Municipal Grants Act is amended by striking out the following:

    VIA Rail Canada Inc.
    VIA Rail Canada Inc.

Coming into force

13. This Act or any provision thereof shall come into force on a day or days to be fixed by order of the Governor in Council.