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Midterm

MGSC05H3 Midterm: Quebec Issue

1 pages88 viewsFall 2017

Department
Management
Course Code
MGSC05H3
Professor
scottpratt
Study Guide
Midterm

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Quebec Issue
Synopsis:
Quebec gov unwilling to deregulate → interprovincial busing in both jurisdictions will no longer be
regulated
Deregulation in ON accompanied by continued regulation in Quebec pose 2 problems:
1. Quebec operators would freely be able to enter the ON market while ON operators would be
unable to freely reciprocate
1. ON operators currently providing schedule service into Quebec will enjoy immunity from
competition on those interprovincial routes but be able to freely compete with ON carriers on
intra-provincial routes
EFFECT ON RURAL COMMUNITIES
Conclusion:
There is concern among rural mayors and others that deregulation will be accompanied by a loss of
service. The question is how much of that service-loss will be caused by deregulation - as opposed to
other factors that continued regulation cannot forestall - and how much of it can be mitigated (and
even outweighed) by other kinds of service provision. Here, there is a general consensus that
deregulation will cause some loss of service, but that there will be some countervailing gains, and that
a host of factors could come into play to mitigate the magnitude of those losses.
QUEBEC ISSUE
Despite provincial efforts to persuade Quebec to deregulate concurrently with Ontario, the Quebec
government is unwilling to do so. However, with the planned federal deregulation in 2000,
interprovincial busing in both jurisdictions will no longer be regulated.
In principle, deregulation in Ontario accompanied by continued regulation in Quebec - albeit over a
short term ~ could pose two problems:
1) Quebec operators would freely be able to enter the Ontario market while Ontario operators would
be unable to freely reciprocate.
2) Ontario operators currently providing scheduled service into Quebec will enjoy immunity from
competition on those interprovincial routes, but be able to freely compete with Ontario carriers on
intra-provincial routes.
In practice, however, while these concerns were raised, they were usually muted and more frequently
dismissed.
Reasons for Concern about Quebec's continued regulation:
With respect to the possibility of Quebec carriers entering the Ontario market subsequent to
deregulation, the concern most often expressed was not with the increased competition per se but with
the potential for unfair competition.
Conclusion:
In sum, as one stakeholder put it, "Quebec is not a major issue." In those markets
where Quebec entrants would pose a competitive threat, carriers generally feel that they
are facing much (though certainly not all) of that threat already. And in many markets,
Quebec entrants would not pose a threat even under deregulation. The main abiding
concern is with the fairness of Quebec competition
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