Standing Committee on Public Accounts

Comité permanent des comptes publics

For immediate release

Ottawa, October 19, 2016 -

Transport Canada needs to improve VIA Rail Canada Inc.’s (VIA or the Corporation) corporate governance to ensure its long-term viability, according to a report of the Standing Committee on Public Accounts (the Committee) tabled today in the House of Commons by the Hon. Kevin Sorenson, Chair of the Committee.

According to the Office of the Auditor General of Canada (OAG), VIA was incorporated in 1977 under the Canada Business Corporations Act as a subsidiary of the Canadian National Railway Company (CN). In 1978, VIA became a Crown corporation separate from CN. VIA is not currently governed by any enabling legislation and obtains funding through its corporate plan, which is approved annually by the federal government.

According to its report, VIA Rail Canada Inc.—Special Examination Report—2016, the OAG concluded that except for the significant deficiency in its corporate governance, the absence of a long-term plan or direction approved by the federal government, VIA’s systems and practices were maintained in a manner that provides the Corporation with reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively.

In this report, the Committee made nine recommendations, including one requesting Transport Canada and VIA to provide the Committee with a report outlining what they would propose with regard to enabling legislation, which will help it monitor VIA’s progress in addressing the gaps identified in this special examination.