Commission of Inquiry into Newfoundland Transportation (Canada) : The Commission of Inquiry Into Newfoundland Transportation was established under Order in Council P.C. 816, 24 March 1977, under Part I of the Inquiries Act (R.S.C., 1970, c.I-13) and on the recommendation of the Minister of Transport. The Commission was mandated to inquire into and report upon all aspects of transportation and transportation services for Newfoundland, including services for goods and people, and to identify the appropriate levels of transportation, including choice of modes, necessary to meet the future transportation needs of Newfoundland and its people in an efficient and cost effective manner. The Commissioners were to make specific reference to: (1) the economic, social, demographic and geographic factors which created current and future demands for domestic transportation. This was to include an assessment of the economic/industry development plans for each area in the province and was to relate these needs to transportation services; (2) the terms of Confederation and the constitutional obligations of the Government of Canada to Newfoundland related to transportation. It was to consider their current impact and application and the extent to which they might influence cost effective solutions; (3) the conditions which were unique to Newfoundland and the manner and extent to which these factors influenced the provision of domestic transportation; (4) the efficiency and effectiveness of domestic transportation services. This was to include a review and evaluation of subsidies and transportation related government programs; (5) the appropriate role for each mode in the provision of domestic transportation services consistent with the terms of reference identified above. The commission was to relate its findings to their implication in the short- (0-5 years) mid- (5-10 years) and long-term (beyond 10 years); (6) the important relationship between the provision of domestic transportation services and the achievement of regional and national employment and other social and economic objectives; (7) the appropriate roles, responsibilities and obligations of government, carriers and users of transportation services and assess them in terms of legislative, economic, social and commercial considerations; (8) the national implications that could follow from any recommended solution to transportation problems; (9) in the conduct of the Inquiry, the commission was to make use of all previous work, studies and investigations undertaken by or on behalf of governments which it considers relevant. It was also to take into account the current activities of governments, corporations, agencies and committees and make appropriate use of their work. The commissioners were Arthur Sullivan, Chairman; Esau Thoms and Burford Ploughman. The secretary was Ada O'Reilly.
According to W.H. Butt, System Division No. 135, Newfoundland Area, Brotherhood of Railway, Airline and Steamship Clerks, Freight Handlers, Express and Station Employees, the Commission of Inquiry into Newfoundland Transportation was brought about due to pressure from employees of Canadian National who feared the discontinuance of freight service in the province. The union made representations to the federal and provincial governments about this matter and pressured Canadian National to make a statement of policy about it.
Subsequently, the President of the Canadian National Railway Company, Dr. Robert Bandeen, visited the province on 2 December 1976 to clarify the company's position. Dr. Bandeen recommended that an inquiry be held, not just on the operation of Canadian National in Newfoundland, but on all forms of transportation in the province. Bandeen drew attention to Canadian National's difficult financial position and went on to say: "the only way the railway should be expected to continue to run in Newfoundland is on the basis of combined subsidies and revenues as is done with CN Marine Services." Dr. Bandeen noted that close inter-relationships existed among all forms of transportation in Newfoundland and affirmed that no one part of it should be studied in isolation.
At the time of Bandeen's speech, the transportation services provided to the people of Newfoundland and Labrador were totally inadequate. According to the Report of the Commission of Inquiry into Newfoundland Transportation the situation was as follows:
"Nearly half the total mileage of Provincial highways is unpaved and, in Newfoundland such roads are, for a substantial part of each year, in extremely poor condition. The main trans-insular highway, the Trans-Canada Highway, was built to near minimum standards and with the growth of heavy traffic in the last decade has deteriorated rapidly so that it now requires major upgrading over its entire length. The southwest coast between Bay d'Espoir and Rose Blanche is still totally dependent on transportation by sea. The major towns of western Labrador have no access by road to any other part of Canada. The coast of Labrador is dependent upon inadequate coastal boat service which, because of ice conditions, can rarely provide more than four months of uninterrupted service in any year. For the other eight months the people must depend upon an air service which, in the absence of landing strips is, at best, intermittent and unpredictable."
"Rail freight service, though vastly improved in recent years, still suffers from inefficiencies built into the capital structure and, despite subsidies, is still extremely costly. Passenger services on the Island are inadequate, while accommodations on coastal boats and on Gulf ferries are insufficient. Docking and harbour facilities are poor. In short, it is clear that in many areas standards do not conform to minimally acceptable Canadian levels."
The federal Minister of Transport, Otto Lang, immediately took up Bandeen's suggestion for an inquiry on the entire Newfoundland transportation system and consulted with the Provincial Premier, Frank Moores, and the Minister of Transportation, James Morgan, about it. Then on 28 March 1977, Lang announced the appointment of a royal commission on transportation in Newfoundland and Labrador with Arthur M. Sullivan as Chief Commissioner. Sullivan saw his rather difficult task as follows:
"We have been given the responsibility of examining and evaluating the total domestic transportation system in Newfoundland and Labrador. This examination is to include all modes of transportation air, rail, road and water services to, from and within Newfoundland. It is also to include all aspects of transportation - constitutional economic, practical and social. We are to consider how the nature and quality of the transportation services, which are now provided to Newfoundland, meet the present and future needs of the province."
While the inquiry was underway, Lang requested that Canadian National not layoff any permanent employees. (See: Minister of Transport Canada, Press Release, No. 56/77, 28 March 1977; Commission of Inquiry into Newfoundland Transportation, Transcripts of Hearings, St. John's, 19 September 1977 (RG 33/119, Vol. 2), p. 9 and pp. 101-107; Report of the Commission of Inquiry into Newfoundland Transportation, Vol. 1, July 1978, Ottawa, Supply and Services Canada, 1978, pp. 11-28; and CN in Newfoundland: President's Statement, 2 December 1976, obtained from Public Affairs and Advertising, Canadian National, Montreal).
Hearings of the commission were held in St. John's, Milltown, Buchans, Burnt Berry Motel (on the Trans-Canada Highway), Gander, St. Anthony, Port aux Choix, Carbonear, Marystown, Goose Bay/ Happy Valley, Labrador City/Wabush, Clarenville, Deer Lake, Corner Brook, Stephenville and Port aux Basques from 19 September 1977 to 14 November 1977. There were 126 submissions filed with the commission. RG33-119 General Inventory
