44th Parl. 1st Sess.
September 21, 2023 10:00AM
Madam Speaker, I too enjoyed my time on the transport committee with my colleague, and the rail safety issue certainly has been an important part of our discussions, as has much discussion around the entire supply chain. This bill is attempting to cover all of these concerns and make sure we have a safe, affordable and competitive supply chain.
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Madam Speaker, it is important because, in my half a dozen years on the transport committee with members of the government and the opposition, we have heard from many of the people who work in the industry on a daily basis. People do not understand the challenges some of our ports are facing and what needs to be done to create a comprehensive plan that delivers products and goods to Canadians on time, efficiently and affordably.
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Madam Speaker, the Standing Committee on Transport, Infrastructure and Communities toured Canada's ports in the spring. Most of the port officials told us that they were planning to expand and that they expect international traffic to increase over the coming years due to our trade. As I said earlier, about 50% of Quebec's GDP goes through the ports, so they are absolutely vital.
Is there anything in the bill that will allow the ports to manage their operations more efficiently? The answer is no. What the bill provides is greater accountability from the ports toward the government and the public, more data sharing. That is not a bad thing, but it is not going to fix the problems that ports are currently facing. It mainly gives the government more control over the ports. In a crisis, as I mentioned, these are things that may be useful. However, I do not see how the minister could get involved in managing the ports himself on a regular day-to-day basis. It makes no sense.
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Mr. Speaker, let me take this opportunity this afternoon to thank all members and all parties of the House for participating in this very important second reading debate on Bill C-33, strengthening the port system and railway safety in Canada act, with respect to improving the safety and security at Canada's marine ports.
I would like to further describe the rationale for the measures that are designed to enhance the security of Canada's marine transportation system.
Transport Canada has the important mandate of promoting a safe, secure, efficient and environmentally responsible transportation system. In addition to developing policies and programs for marine security, the Minister of Transport also has the lead responsibility for marine security policy, coordination and regulation across government, a whole-of-government approach.
When introduced in 1994, the Marine Transportation Security Act was intended to address a long-standing omission in federal powers and better equip the government and the marine transportation industry to respond to any threat to the security of people, goods, vessels, ports and facilities in the Canadian marine environment.
In the decades following, Canada's marine security landscape has changed significantly. While concerns around physical disruption perpetrated by terrorist actions still exist, emerging challenges, such as cybersecurity and biosecurity, are challenging our current threat-focused security framework.
Canada's marine transportation system is a central component of our national, provincial and regional economies. It is one of the primary means for moving Canadian exports to market and for imported goods from abroad to arrive in Canada, as well as in the Midwest in the United States, through the networks we have established throughout the many years of partnerships with different sectors. As such, it is an important enabler of Canadian economic growth well into the future.
As an example, my home riding and region of Niagara is an integral part of our economy. Niagara, which is known as a multimodal transportation hub, is essential to the overall Canadian economy and is growing to be one of the nation's most strategic trade corridors, therefore strengthening Canada's overall international trade performance.
Security events, however, can have a significant impact on port and marine-related operations, which in turn directly affect the efficiency of Canada's supply chains. Concerns over security issues, including a dated regime, can lead to the perception of Canada as a weak link in global supply chains that can affect when and where companies decide to invest. Hence, this is the reason for the bill.
Such a perception could adversely affect Canada's relations with other major trading partners and have significant impacts on future opportunities for economic growth and development, like what is happening in the Niagara region as a transportation hub, with respect to the movement of trade and people. Right now the transportation committee is discussing high-speed rail to bring the country closer together and enable us to welcome visitors who can move around our great nation with great fluidity in tandem with the movement of trade within the infrastructure we have established throughout the past century.
A secure transportation system promotes a secure economy, a resilient supply chain and further supports the competitiveness of Canadian ports. In a constantly changing world, Canada's marine system needs a modern security framework to adapt and respond to increasing complex challenges in tandem with other methods of transportation, such as rail, road and air.
Today, as part of Bill C-33, the government is seeking to modernize the Marine Transportation Security Act to ensure that it remains modern, usable, flexible and a consistent piece of Transport Canada's legislative framework. Modernizing the act will enable the government to have access to tools to address new and emerging security concerns, reflecting the challenges, but, more important, addressing those challenges so we accrue over time confidence with future as well as present international investors.
The proposed amendments will introduce new ministerial authorities, such as the power to make interim orders, the ability to require ports and other marine facilities to accept vessels that have been directed to these locations, and the ability to issue emergency directions to persons or vessels to address immediate security threats.
Unlike other marine legislation, the current Marine Transportation Security Act does not provide effective tools to be used in exceptional circumstances across the industries. The ability to make interim orders will align across Transport Canada's legislation and allow the department to take immediate action to deal with security threats or risks, or take action to address a threat to marine transportation security or to the health of persons in the marine transportation system. This will allow us to better protect the integrity and efficiency of Canada's supply chains.
The proposal will also introduce new regulatory-making authorities that will allow Transport Canada to: one, implement a cost-recovery framework; two, address maritime threats and risks to the health of persons involved in the marine transportation system; three, implement formalized information-sharing channels with federal partners; and, four, establish exclusion zones for vessels.
The COVID-19 pandemic highlighted emerging biosecurity threats, such as global pathogens, which pose significant risks to public safety and the broader Canadian supply chains, as well as those that flow to Canada, into the U.S. and to our binational partners internationally.
The marine environment poses a unique vector for virus transmission, with cruise ships, for example, or vessels interacting in northern and remote communities. An outbreak on board a vessel or at maritime facilities could cause significant impacts to workers' health and security, which would have a direct effect on our supply chains.
Finally, this proposal will support a shift in the approach to marine security since the act was first established. The shift includes enabling the department to enter into agreements with partner organizations to oversee enforcement of the act and its regulations. This will allow Transport Canada to leverage expertise of organizations and the capacity of other government departments, once again, a whole-of-government approach.
The proposed amendments to the act included in the bill will modernize Canada's security framework, but, most important, it will create more fluidity to ensure more confidence in our transportation system across our great nation.
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Mr. Speaker, again, the short answer is yes. One of the things we do cherish and respect in the House is the work of committees.
Being on the transport committee since 2015 with her colleague, we look forward to integrating a lot of the reports that we have completed, whether it be the ports modernization review, the St. Lawrence Seaway review, the labour strategy or the task force that looked after supply chains. The intent of the committee will be to come forward with an integration of those recommendations, and, again, as a whole-of-government approach to ensure that all legislation is very consistent with each other. However, most important is that it aligns so that it best serves those who it is supposed to serve, and those are the customers who are within the supply chains. Of course, it would create net fluidity.
Updating the legislation and updating the means by which we want to move people and goods around the committee is ultimately what the committee, the House and this government are trying to do.
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Mr. Speaker, this legislation is incredibly important to people in my constituency. The issue is not just container ships, which have been mentioned in the supply chain, but bulk carriers, particularly of coal and grain.
I would like to put it on the record that the Vancouver Fraser Port Authority is massively inefficient and incompetent, and the result is we have a backup of a virtually permanent parking lot in our sensitive marine areas. Freighters and bulk carriers that pay nothing for the privilege of free parking are ripping up the benthic organisms on a daily basis and are damaging the habitat of endangered whales.
The legislation would go some way to create an authority for the minister to insist that these ships be moved, but we will need amendments at committee. I want to flag it right now so that members of the transport committee and the new Minister of Transport become aware that this is a hot issue and we are red-hot angry through Saanich—Gulf Islands, Cowichan—Malahat—Langford and Nanaimo—Ladysmith. Let there be no more; we have had it.
I hope the government is ready for amendments.
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Mr. Speaker, I am thankful for the opportunity to rise and speak to Bill C-33, an act to amend the Customs Act, the Railway Safety Act, the Transportation of Dangerous Goods Act, 1992, the Marine Transportation Security Act, the Canada Transportation Act and the Canada Marine Act and to make a consequential amendment to another act. That is quite a mouthful, but it is simply known by its short title of “Strengthening the Port System and Railway Safety in Canada Act”.
By way of background, in April 2017, the then minister of transport, the hon. Marc Garneau, launched a review of the Railway Safety Act. Then in 2018, he announced a review of Canada port authorities to optimize their role in the transportation system. In late 2022, the previous minister of transport received the Final Report of the National Supply Chain Task Force, 2022, as other members have noted.
Bill C-33 was brought forward in response to the Railway Safety Act review and the ports modernization review. If passed, this proposed legislation would amend several existing laws, as indicated in the long title of the bill.
What has become increasingly obvious is that urgent action is needed to address supply chain congestion. In fact, this is exactly what the Final Report of the National Supply Chain Task Force 2022 called for: urgent action to immediately address supply chain congestion.
It is rather typical of the government to refuse to take action until the issue has reached a crisis point. We have been waiting four years for a plan to modernize our ports, and this bill fails to address the root causes of supply chain congestion.
While this comes as no surprise, it is nonetheless frustrating that the government continues to propose inadequate legislation to address important issues such as this one. Bill C-33 does not offer solutions to long-standing issues between railway shippers and railway companies. Instead, it seemingly indicates that the status quo is just fine.
There is also nothing in the bill to address labour disputes that impact supply chains. While it does clarify that rail blockades are illegal, which was already known, the real issue here is with enforcement. This clarification will do nothing to change the reality of rail blockades. Only the enforcement of our laws will.
Since this bill was tabled, there has been a change of minister. This may be due to a realization by the government that it has failed on this file. It may be an attempt to save face by shuffling ministers around, pretending that the Liberals have recognized their shortcomings and that changes will be made.
However, the pattern has been set. The government will continue to put forward flawed policy and centralize power in Ottawa. Speaking of centralizing power, the ports are supposed to operate at arm's length and work in the best interests of both the national economy and the supply chain. However, the previous minister of transport made it clear in his speech on this bill and while answering a question from my colleague, the member for Chilliwack—Hope, that the government is shortening the arm's length and trying to exercise more control over the ports.
This is an area of deep concern. Ports must have the freedom to operate effectively. This starts with letting them elect their own leadership. The ports do not need Liberal ministers to choose the chairs of local port boards. Ministerial authority to appoint the chair reduces the independence of ports.
This raises the following question: Why does the government believe that it should be the one to appoint the chairs of port authorities? It has not come forward with any reasonable explanation for this measure. Canadians do not need more centralized decision-making in Ottawa.
An unfortunate vice of the government is its hubris, which causes its members to think that they have the Midas touch, despite breaking all that they touch. One only needs to look at how the Prime Minister has run his cabinet for the last eight years, dictating to it and centralizing power in the PMO. This has resulted in disaster after disaster.
Another aspect of this bill that would hamper the work of Canadian ports is the new reporting requirements. These requirements would reduce the efficiency and competitiveness of Canadian ports, and they would be especially burdensome for smaller ports. This is yet another hallmark of the Liberal government: extending its control over larger enterprises and drowning smaller businesses in red tape, reaching the point where they are completely reliant on the government.
Furthermore, overly prescriptive and bureaucratic red tape would increase costs, which would inevitably be passed on to Canadian consumers. Additionally, the new proposed advisory committees could restrict the ability of ports to make decisions that would improve their capacity and efficiency.
Businesses do not need more government regulation; they need more freedom to be able to operate efficiently on their own. They do not need the government to tell them how the business should be run. The people who work in this industry and at these ports know better what they need to do to increase efficiencies. Imposing a one-size-fits-all approach to ports across the country does not take into consideration the unique challenges at different ports.
Decision-making by local port authorities is key to modernizing and improving the efficiency of ports around our country. Again, the additional ministerial powers in this bill would limit local decision-making by port authorities, leading to further delays in modernizing our ports. This, in turn, would reduce their efficiency and impact competitiveness. The result would be higher costs passed on to consumers, contributing further to the cost of living crisis that the government has created in this country.
One piece missing from this bill is the provision of any solutions to long-standing issues between railway shippers and railway companies. This is a crucial part of the supply chain. However, the government has left this out, demonstrating that it has no intent to properly fix the issues that were highlighted in the task force report. This shows a worrying lack of understanding of the important aspects of the supply chain. Instead of taking the opportunity to make changes and address this issue, the government seems to be content to let the opportunity pass as it continues to double down on poor policy.
While Conservatives will always support measures that strengthen our supply chains, we cannot consent to efforts from the Liberal-NDP coalition to centralize power in Ottawa and put ports under the thumbs of Ottawa gatekeepers. Conservatives will not support propping up ineffective gatekeepers, which have only made life more difficult for Canadians. The Liberal-NDP coalition needs to work to remove gatekeepers, not validate them by granting them more power and responsibilities.
Conservatives cannot support an increase in red tape and bureaucracy, especially in our supply chain. While the Liberals want port authorities to be aligned with their objectives, as stated by the previous minister, we believe that ports should operate in the best interests of the national economy and the supply chain.
With a country the size of ours, we need an efficient supply chain in which all parts work well together. I believe that the government should go back to the drawing board and draft a bill, which it could present to this House, that makes good, substantive changes to our supply chain and addresses the concerns that were raised by the task force.
A bill purporting to address supply chain congestion must address all the concerns from stakeholders and remove the “Ottawa knows best” solutions that seem to be a hallmark of the government. This bill does neither.
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Mr. Speaker, I am going to be speaking about strengthening the board governance of Canada's strategic ports. My riding of Steveston—Richmond East is home to all of the above: rail, air and sea. It is an island city by nature, one which I look forward to the Speaker's visiting sometime.
The governance model that underpins Canada's port authorities was designed to establish responsible stewardship of these key strategic assets and to position them as commercially oriented actors that can act credibly in the marketplace. The day-to-day operations of these port authorities are directed by independent boards of directors that are responsible for ensuring that port planning, decisions and operations are made firmly within the public interest. In this context, the Minister of Transport retains the critical role of setting the strategic direction that guides the work of these boards.
For 20 years, this governance model has served Canada well. It has provided Canadians with world-class services while ensuring that capacity grew in support of Canada's economy in a gradual and financially sustainable manner. At the same time, Canada and the world have evolved. Our trade with the world is growing and is increasingly diversified. The shipping lines that support the trade have consolidated and are building even bigger ships, and the logistical connections between transportation services and shippers are growing in intensity and technological innovation. These developments underline the importance of ensuring that our ports can adapt to serve our national supply chains and global connections to the world.
At the same time, it is important to recognize that ports undertake their national mandates in very local contexts. As Canada's ports have grown, so too has public interest in their operations. In the eyes of indigenous and local communities, port governance is not only a question of orchestrating safe marine trade but is also now, more than ever, intertwined with environmental sustainability and our important national agenda for reconciliation. Simply put, Canada port authorities are being called upon to be more adaptable and responsive to an increasingly complex operating context. Things have changed since they were created over 20 years ago.
At the centre of government's approach to ensuring that port governance keeps pace are three important objectives: ensuring that port boards have the right people in the right positions to manage these strategic assets, structuring ongoing engagement with indigenous and local communities to better inform decision-making, and enhancing reporting to enable better public engagement, accountability and oversight. I will speak to these three objectives in turn.
Having the right composition and people in place on boards of directors is key to supporting enhanced board performance. This is why the government is proposing to add an additional prairie province director on the boards of the Thunder Bay and Prince Rupert port authorities in recognition of the role these ports play in the export of prairie commodities. In addition, greater flexibility is being proposed to enable more than one municipal directorship in instances where a port is located in more than one municipality. Recognizing board leadership of these strategic assets is critical, and Bill C-33 proposes to enable the Minister of Transport to designate the board chair from among and in consultation with the directors.
With respect to engagement with indigenous and local communities, this bill proposes to establishment structured mechanisms to enable more meaningful and ongoing dialogue. The port modernization review undertook extensive stakeholder consultations. During these engagements, it was noted that the depth and quality of relationships among port authorities, indigenous and local communities can vary. Such relationships are key to aligning expectations and goals and to informing port decisions that have economic, environmental and social implications. As a result, this bill proposes the establishment of three separate advisory committees at the port management level for engaging with indigenous nations, local communities and local governments. These committees would enable more meaningful and structured opportunities for engagement.
The third key governance objective this bill seeks to advance is increased reporting as a means of promoting transparency in port planning and operations, including environmental performance. Bill C-33 would reinforce port authorities' due diligence in planning by requiring them to provide land use plans on a five-year cycle. This would facilitate input from local communities and stakeholders in the port planning process. In addition, the proposed measures would modernize financial reporting and disclosure requirements that align with internationally recognized standards. Bill C-33 would further require port authorities to publicly report on greenhouse emissions and establish climate adaptation plans. These measures would position ports to be leaders in managing climate risks. Importantly, these new environmental reporting requirements would align with the government's ambitious climate change agenda and would be consistent with the requirements for other public institutions.
To promote ongoing improvements to port governance aimed at ensuring that these entities remain best in class, Bill C-33 would require port authorities to undergo a triennial assessment of board governance practices. This is an important best practice in corporate governance that befits assets of such national importance. These assessments would evaluate the effectiveness of and adherence to governance practices, including those related to record-keeping practices, the use of skills matrices and the promotion of diversity in recruitment. The results of these assessments would be shared with Transport Canada to inform future policies that help port governance remain best in class. Taken together, these important governance reforms would establish more proficient, transparent and accountable port authority boards consistent with the important role played by ports as instruments of public policy.
These measures build on the successful foundation established in the 1990s, when the Canada Marine Act was first enacted. They would update port governance to modern realities and serve to better align national and local realities, and they would do so by maintaining ports that are nimble market actors and can better support Canada's connections to the world.
We are pleased to advance these reforms. Bill C-33 would fundamentally reposition Canada's port authorities and maintain these world-class facilities that underpin our critical supply chains and national economy.
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Mr. Speaker, Bill C‑33 comes at the end of a series of initiatives taken by the Canadian government over the past six years. Beyond the various committees that could have addressed the matter in previous Parliaments, let us consider the following initiatives.
In 2018, there was the ports modernization review. In 2022, there was the final report of the supply chain task force, which was tabled in the House in October of the same year.
The objectives of Bill C-33 are as follows: to eliminate systemic barriers in order to create a more fluid, secure and resilient supply chain; to expand the mandate of Canadian port authorities in relation to traffic management; to position Canada's ports as strategic transportation hubs; to improve the government's understanding of ports and port operations; and to modernize provisions relating to rail safety, security and the transportation of dangerous goods. I will focus mainly on that last point.
Bill C-33 contains a series of proposals affecting the following federal acts: the Canada Marine Act, the Canada Transportation Act, the Railway Safety Act, the Transportation of Dangerous Goods Act, 1992, the Customs Act and the Transportation Appeal Tribunal of Canada Act.
First of all, I would like to say that the Bloc Québécois will be voting in favour of this bill so that it can be referred to committee, since a number of improvements could be proposed. We will have to be responsible and trustworthy enough to undertake the legislative and regulatory tightening required for the amendments that are to be debated.
A decade has passed since the unspeakable tragedy in Lac‑Mégantic that claimed the lives of 47 people and left an entire community forever scarred. For people in Quebec, this tragedy is an unavoidable part of any conversation about rail safety, which, as I said, is the subject of my remarks.
Certainly the supply chain element is interesting, and there is plenty to say about that. I want to focus on rail safety without necessarily tying it to the supply chain issue. There have been recommendations, round tables, consultations, reviews and audits. That all served to inform people, but none of it can replace what really matters, which is a regulatory and legislative framework.
In all honesty, we have to acknowledge that the work that was done in 2017-18, the many Transportation Safety Board reports that identified recurring safety issues and deficiencies, and the Office of the Auditor General of Canada's observations on the matter all sent a clear signal that we need to study Bill C‑33.
I have said it before and I say it all the time: Words matter. Using vocabulary that is clear, and prescriptive if necessary, is already a step in the right direction. There is so much data and benchmarking available that I will be the first to admit that guiding regulatory policy in this sector is a huge undertaking. Companies have a duty to help us help them.
In 2022, there were 225 main-track accidents in Canada, 18% more than the 10-year average for this type of track, which is the rail network's main artery. The country's largest rail union is speaking out about fatigue, working under pressure and understaffing in the sector. These problems are addressed in Bill C‑33.
Among our neighbours to the south, elected officials are pointing the finger at the role of precision scheduled railroading, known as PSR. It is a railway management system created by none other than Hunter Harrison. If members have read anything about Lac‑Mégantic, they will recognize Mr. Harrison's name. PSR was introduced at Canadian National in 1998 and at Canadian Pacific in 2012. It has been the favoured management system of most major rail companies here and in the U.S. for more than a decade.
The objectives of PSR, according to its infamous creator, are to provide frequent and reliable service, control costs, optimize assets and operate safely. He even added that there should be fewer employees, but they should be made to work harder.
In practical terms, it is a management approach designed with maximum profitability as its priority. This system aims to put longer, faster trains on the rails more quickly in order to keep operating costs as low as possible, all with fewer staff. The average length and weight of CN trains have tripled since 1990. This is directly linked to the implementation of this PSR system.
When unveiling financial results in 2018, CP emphasized the importance of PSR. It was important for profitability. When Le Devoir analyzed the company's annual reports in 2023, it discovered that CP's profit margins shot up almost 500% between 2012 and 2022. I just want to remind everyone that the Lac‑Mégantic tragedy took place in 2013. Furthermore, 2012 was no ordinary year in CP's history. That was the exact year Mr. Harrison, the creator of PSR, joined the company.
Why am I addressing rail safety from this angle? I am talking about it because the pursuit of profitability using PSR management is the fraternal twin of the culture of self-regulation that has prevailed in Canada for far too long. The power to change things involves the ability to exercise that power, which is regulatory. Of course, we need to protect the supply chain, workers and remote communities. However, we need to understand that it would be a mistake to continue with self-regulation or to encourage more self-regulation in the rail industry.
I want to quote an article from La Presse on this very subject. It states: “Ottawa sets guidelines for the companies, which develop their own security system and usually do their own inspections.” That means that the companies do everything. The article goes on to say, “According to experts, the problem is that, in recent years, Transport Canada has resolutely become a department with an economic mandate, and it is neglecting its safety mandate.”
The article quotes one source as saying, “There were even memos from the minister reminding us that we were an economic department...In short, we were there not to stop trains but to keep them running.” That quote is from 2013, the year the Auditor General of Canada published her audit on rail safety at Transport Canada, the year of the Lac‑Mégantic tragedy.
In 2022 and 2023, the supply chain got a lot of attention, proving that the railway is vitally important to the economy. To not engage in some thoughtful deliberation on the potential of the railway and the best safety practices in terms of monitoring, reporting and record-keeping would, in my opinion, be a missed opportunity and an irresponsible choice.
I believe that the long-awaited Bill C‑33 has some progressive aspects that could be improved upon in committee. Generally speaking, the creation of secure areas to reduce congestion in the ports, the creation of financial penalties for safety breaches, the strengthening of safety management systems, and the prohibitions on interfering with or damaging railway structures or operations are measures that the Bloc Québécois welcomes.
As elected members, we have a responsibility to ensure that members of the public know they are safe in areas where railway activity is present, not just for now or in a week, but for the long term.
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Madam Speaker, I want to thank my friend from Laurentides—Labelle, who I have a lot of respect for. I have enjoyed working closely with her on the procedure and House affairs committee.
I agree with the hon. member that rail safety is of utmost importance. One of the shortcomings of this bill is that it does not go far enough to enhance rail safety. The transport committee did a rail safety report, which has been sitting on the shelf for several years. It contains a number of good recommendations, but none of those recommendations have been incorporated into the bill.
The problem with this bill is that there are too many problems with it. If it were a matter of fixing a few things here and there with some amendments, then we could support it going to committee. However, the problem is that there are too many issues, particularly on the port authority side. It is on that basis that we cannot support the bill. It is on that basis that we are calling on the government to go back to the drawing board.
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