Bill S-4 (Historical)

Safer Railways Act

An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act

The amendments amend the Railway Safety Act to, among other things,
(a) improve the oversight capacity of the Department of Transport by, for example, requiring companies to obtain a safety-based railway operating certificate indicating compliance with regulatory requirements;
(b) strengthen that Department’s enforcement powers by introducing administrative monetary penalties and increasing fines;
(c) enhance the role of safety management systems by including a provision for a railway executive who is accountable for safety and a non-punitive reporting system for employees of railway companies;
(d) clarify the authority and responsibilities of the Minister of Transport with respect to railway matters; and
(e) expand regulation-making powers, including in respect of environmental management, and clarify the process for rule making by railway companies.

Safer Railways Act

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is with pleasure that I am able to add a few words today on Bill S-4, which has come from the Senate. I have always wondered why some bills come from the Senate versus the House of Commons, but I will leave that particular discussion for another time. I believe that the bill has the support of both opposition parties to go to committee.

The railway industry has had a profound impact on our nation, even prior to Confederation. From an historical perspective, in good part, the railway has made Canada the nation it is today. I would suggest that it is only relatively recently, in the 1980s, that we started to look at issues of safety and security and our environment, and the impact of the railways on our communities.

The last real change to the act would have been in 1999, under the Chrétien administration. Even then, we within the Liberal Party acknowledged the degree in advancement of technology and the impact of technology on our railways. We need to be constantly looking at ways to improve the circumstances and the environment for railways across Canada. It is good to see the government has seen the wisdom to reassess the issue and bring forward other aspects that would help us modernize the legislation. One could argue that we have been waiting for that for a while. We welcome that.

I want to share some personal opinions about the city of Winnipeg. In Winnipeg, in the area that I represent, there is a great divide and in that divide we have CP Rail. It has been a distinguishing characteristic of the city: those who live on the north side of the track versus those on the south side of the track. However, Winnipeg is not unique in that. We would find jurisdictions all over Canada that have developed around our railway tracks.

If we take a look at how Winnipeg North is able to connect to the city, there are three underpasses, King Edward Street, Keewatin Street and McPhillips Street, and two bridges, the Salter Bridge and the truly unique Arlington Bridge. Many people will walk over the Arlington Bridge just to see the heart of the CP tracks. They get a better appreciation of just how much traffic goes through Winnipeg, in terms of CP's perspective.

Years ago, the CP expanded into the CP trucking terminal. There are many ways in which the railway industry has led and fed other industries; in particular, in Winnipeg, the trucking industry. At one time Winnipeg was the hub of eight of the ten major trucking industries. CP or CN fed into the development of that industry.

Anyone standing on the Arlington Bridge would get an appreciation of the type of train traffic occurring there. We need to be aware of that and why bills such as this are so important.

If we stopped at a track and watched what kind of cargo is on our trains, we would find that it varies from lumber from British Columbia to chemicals from Alberta, to wheat from the Prairies, whether Saskatchewan or Manitoba. There are many commercial goods from provinces like Ontario and Quebec and commodities from our Atlantic provinces. Many of those commodities are absolutely safe. If there were an accident, other commodities are not safe. One of the reasons we have a system in place is to ensure that we know what is on the trains.

I will go back to the example of the Arlington Bridge. It is important to go over legislation of this nature and look at ways to improve upon it. Suggestions have been made for amendments. Stakeholders have made presentations to the government dealing with issues of safety, security and the environment. When we go to committee, it is nice to have experts share what we could be doing to enhance the legislation. By enhancing the legislation, we would ultimately make our railway system that much more healthy.

There are other issues that I think the House needs to give more attention to when we talk about our rail lines. One is in regard to rail line abandonment. A former speaker was talking about the importance of looking at other opportunities for rail lines or expanding rail lines. If the government had an interest in looking at those two issues, I think the industry would be doing that much better as a whole.

From Manitoba's perspective, many people are concerned about the community of Churchill. Now that the Canadian Wheat Board has been brought to its knees by the government, there is a real threat. We will have to agree to disagree on that particular point. Many individuals in Manitoba and well beyond are concerned about the port of Churchill, which is very much dependent on rail line services. With the threat of wheat no longer going through that particular port, because we need certain quantities in order to make it economical, that is now in question. As a result, there is a great deal of concern about the rail line and what the future may hold for it, and the profound impact that would have on the community. If we do not have an active rail line, it could ultimately lead to the closing of that port. Therefore, we look to the government. It is great that we have this particular bill before us today, but we need to think in terms of the potential that is there, the economics of our rail lines and how they have such a profound impact on our communities.

Over the last number of years, rail lines have been abandoned. In some situations a rail line will disappear and a walking or ATV track will be put in to replace it. It causes a great deal of concern for many individuals who have relied on the tracks in the past. There is a great deal of merit for having some sort of overall rail line strategy. It would be great to have a debate in the House as to what direction the government would like to take Canada into the next number of years with regard to rail lines. The future could be wonderful within that industry. The potential demand for railway services is increasing. If we fed on that increasing demand, it would increase job opportunities and would be better for our environment. There are many positives to ensure growth within the rail line industry.

I made reference to the CP tracks, the north-south divide in Winnipeg. CN also has a huge history in the city of Winnipeg: Symington Yard and Transcona shops. In fact, my grandfather and other family members used to work in the Transcona shops. The Transcona shops, in part, are what built the Transcona community. In some of the older homes, a good portion of the lumber that was used to build those homes came from the CN railway. People will see the odd stamp on the lumber. There was a great dependency on CN as that community developed. When we look at the expansion of Symington Yard, we again see the real potential.

There is also VIA Rail, which has had a lot of changes over the years. In some areas, people get pretty good service. There is a nostalgic value that is tangible for many individuals out west who, on a per capita percentage basis, do not take the train as often as perhaps people in the Montreal-Toronto-Ottawa corridor. Yet the desire for train travel still exists. I know that individuals would welcome the opportunity to travel from Winnipeg to Regina, for example, by train. My understanding today is that people have to go through Saskatoon. At one time, they could go straight to Regina. Hopefully something will happen in the future that will allow train traffic to ultimately go through Regina.

People recognize how important the railway industry is in Manitoba, whether it is the city of Winnipeg, rural communities, Churchill or Carman. Many of the communities are very dependent on our railways. Having said all of that, we need to be aware of the fact that there are a great deal of safety-related issues.

A number of years ago, we had an organized, planned train crash in which we had a train run into a vehicle crossing a street. I was able to be at that demonstration and it was quite interesting to watch the locomotive coming down the track in Inkster industrial park. They had a vehicle parked on the road and they had a locomotive coming at about 15 to 20 kilometres an hour. The impact did not seem to affect the train whatsoever, but what it did to the vehicle was truly amazing, even at that speed. The train does not stop right away. It took a while before the train came to a stop and we could go down and see the type of damage that was caused.

One very important aspect of our railways is the issue of safety and the interaction with our highways and streets with regard to train traffic. That is one of the reasons we see this push for bridges or underpasses in our larger centres. It is to try to prevent those types of things from occurring in the real world.

Unfortunately, every year we see collisions between trains and vehicles, and it saddens all of us. That is one of the reasons it is important that we look at ways to improve upon the system. We have many different forms of crossings and we need to look at how we might improve them, whether it be the flashing lights in some of our rural communities, the control arms that go down, or where they are warranted, underpasses and bridges, which are so very important. This needs to be considered when we talk about safety.

I alluded to another issue when I referred to the Arlington Bridge and the amount of traffic and the type of cargo that is on these trains. If today we have a derailment of any sort, whether it be in the city of Winnipeg, in small communities or anywhere in Canada, one of the first questions we have to ask is: What is on that train and are there chemicals that could endanger the immediate neighbourhood or communities in which the derailment occurred?

That is why we need to have regulations in place to ensure we have a fairly quick assessment of what cargo is on a train as it is travelling through our communities, because we have seen a buildup of communities. Over the last couple of years, we have witnessed train derailments where communities in and around the area have been asked to disperse while an assessment was done.

There are issues that cause these train derailments. This legislation attempts to deal with part of that; for example, when we talk about human fatigue and the role it plays. Expanding and providing definitions of what human fatigue means and what it can result in, I think, is a positive thing. That is the reason we have the legislation before us now. We recognize it is important.

However, that is not all. We see more and more trains and the potential of traffic increasing in the years ahead. If we had a progressive government that saw the value of providing commodities across the country for world trade, it would see that the train is the way to go. I see it as one of those cornerstones, and our trucking industry supports it in many different ways. I suspect as time goes by, we will need to periodically modernize the safety regulations and our laws to make sure we are keeping our communities healthy and our citizens safe from what is travelling on our tracks.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I would like to thank my hon. colleague from Compton—Stanstead for his excellent question and his excellent work. I have the distinct pleasure of working with my colleague on various files, including public transit.

We have to look to the future. Bill S-4 on rail safety is a step in the right direction, but we have to look further down the line. My hon. colleague was right when he said that we need a national public transit policy. We need a comprehensive approach that takes environmental issues into account.

As I mentioned, rail transport associations and organizations say that this is one way to fight climate change. We know that the Conservatives are not doing much to fight climate change at the moment. Investing in rail-based public transit would be another step in the right direction.

The government must also invest in infrastructure. That is another Conservative shortcoming: failure to invest enough money in infrastructure. We need rail transportation infrastructure. We cannot leave everything up to the private sector. Unfortunately, the private sector only considers the short term; it has no long-term vision. The government must get more involved in infrastructure, as my colleague rightly pointed out.

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I am pleased to rise in the House today to continue my speech on Bill S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act.

As I mentioned before, the railway passes through Drummondville and the riding of Drummond. It is not just freight that is transported by train in the riding of Drummond. There is also a stop where people can take the VIA Rail passenger train. We are very happy and proud to have this service.

VIA Rail needs to further improve service in our riding in terms of train schedules and frequency of service. We need the train to pass through more often. It is a very popular area. The services that VIA Rail provides are well used by people in the riding, and we are very proud to have these services.

Nevertheless, not enough money is being invested in the railway in Drummondville. Freight and passenger trains pass through the downtown core, and each time they do, three streets are blocked. The entire downtown is blocked since there is no bypass, overpass or bridge over the railway track. We have to think about this. Investments must be made in the railway to improve safety.

This Senate bill has already been introduced in the House of Commons. The Standing Committee on Transport, Infrastructure and Communities of the House of Commons examined this bill and reported it back to the House with amendments, but unfortunately, the bill died on the order paper on March 26, 2011.

We are very pleased that this important bill on railway safety is back before the House, particularly given the fatal train accident several months ago, which hit close to home for everyone. We definitely do not want anything like that to happen again.

However, railway transportation in Canada is the safest means of transportation. It is very safe and we should encourage people to use it. It is truly important.

In the backgrounder accompanying its press release on Bill S-4, Transport Canada points out that the Canadian rail industry has changed significantly since 1999. Rail operations have become increasingly complex, and rail traffic is growing rapidly.

The department notes that, in February 2007, the Minister of Transport, Infrastructure and Communities tasked an independent advisory panel with a full review of the operation and efficiency of the Railway Safety Act. According to the department, the findings indicated that the legislative framework is fundamentally sound and that efforts have been made to improve rail safety, but much more needs to be done.

The final report of the panel, entitled Stronger Ties: A Shared Commitment to Railway Safety, was released in November 2007 and included 56 recommendations for improving rail safety, some of which require legislative changes to the Railway Safety Act.

The Standing Committee on Transport, Infrastructure and Communities also studied rail safety and issued its own report in 2008. The report included 14 additional recommendations, many building on the recommendations from the review of the act.

The department's backgrounder noted:

The Government of Canada agrees with the findings of both reports, and is implementing the recommendations and amending the Railway Safety Act to further improve rail safety in Canada.

Efforts have been made to improve safety. It is truly important to continue working very hard in order to improve this legislation, which has been in place for many years but has not changed much. The number of trips per train is increasing, and it is important to continue in this direction.

The NDP has proposed a national public transit strategy. I hope that one day the Conservatives will realize how very important it is to develop a national public transit strategy that includes the railway as a key element. We should have a comprehensive vision, a much more progressive and proactive vision in this area. I am disappointed that the Conservative government has not invested more in increasing the number of tracks. The number of tracks has not increased in years.

A report by the Railway Association of Canada states that train tracks are green. The report reads:

Railways can play a big role in enabling Canada to meet commitments to reduce greenhouse gas emissions without sacrificing economic growth.

I am sure that is music to the Conservatives' ears. They will be pleased to learn that they can invest in railways and fight climate change without hurting our economy. In fact, this will help the economy.

I hope that the Conservatives will support this very important bill and move toward a national public transit policy in order to fight climate change and improve our economy.

I urge the Conservatives to look further than this bill to make railways safer, to go further than Bill C-4 and lead us toward a national public transit policy.

The House resumed from March 13 consideration of the motion that Bill S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act, be read the second time and referred to a committee, and of the motion that this question be now put.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, as we all know, in a little more than 40 minutes, the Minister of Finance will table this year's budget and I am sure all members are looking forward to that event.

Economic action plan 2012 will be a very strong, low tax, low debt plan that will include measures to create and secure jobs, economic growth and, most important, long-term prosperity for all Canadians.

In recognition of how important this budget will be, we have decided that we will schedule debate to follow immediately on the four following days: Friday and Monday, Tuesday and Wednesday of next week.

There may not be the same level of suspense around this vote as in previous years, but on Wednesday, all members will have the opportunity to vote for jobs, growth and long-term prosperity and support our budget. Once the opposition has seen the budget, I am confident that their constituents will expect them to do just that.

On Thursday, we will continue debate on Bill S-4, the Safer Railways Act. If we have time, we will resume debate on Bill C-15, the Strengthening Military Justice in the Defence of Canada Act.

The opposition House leader had a long list of bills on which he inquired about their status. Insofar as our legislation to improve Canada's immigration and refugee system, that has been debated now some five days in this House and we look forward to it being debated further. It is a very important bill, not just for the strength of our immigration system but also for our economy. We will continue to take steps to ensure our immigration system meets the security, safety and economic needs of Canada.

In terms of Bill C-30, I think he is well familiar that it is our intention to have that debated and sent to committee before second reading and, in so doing, being able to allow a broad ambit for the committee to consider amendments of all types. I think that responds to the particular concerns that he raised on that.

In the case of Bill C-30, Bill C-4 and the immigration bill, we can see from the program I have read that there will not be an opportunity, barring some dramatic progress on other legislation on the final day, to deal with those bills before the Easter break, so we will have to wait until after that.

[Denis Lebel, Conservative, Minister of Transport]

Thank you very much, Mr. Chair.

Thank you for inviting me to meet with the Standing Committee on Transport, Infrastructure and Communities to provide an update on the transport, infrastructure and communities portfolio, and to address our main estimates.

I am joined today by my colleague, the Honourable Steven Fletcher. We are very proud and happy to have him back. He will speak to you about the crown corporations under the transport, infrastructure, and communities portfolio.

I am also accompanied by Ms. Yaprak Baltacioglu, the deputy minister, and by Ms. Anita Biguzs, Mr. André Morency, Mr. Taki Sarantakis and Ms. Su Dazé. My thanks to them for being here.

I also want to thank the committee for its many contributions to various transportation issues. I look forward to continuing to work with you to build a transportation system that will serve Canada's current needs and help drive tomorrow's prosperity.

The funding that Transport Canada is seeking through these main estimates will help to achieve these goals.

Transportation has always been identified with opportunity in Canada: it connect workers with jobs, travellers with destinations, and products with markets.

However, the current global economic environment is volatile and uncertain, as you know.

Canada's future prosperity will depend to a significant degree on how effectively we're able to anticipate and respond to global pressures. Our government has long recognized this fact. We continue to modernize our systems and policies to support the transportation sector, a process that has benefited from the input from this committee.

A prime example of building Canada's transportation sector is the Asia-Pacific Gateway and Corridor initiative. Linking trade and transportation, the gateway approach has brought together public and private stakeholders to address issues of efficiency, reliability, performance, skills and system bottlenecks.

The Gateway and Corridor initiative is revolutionizing the way Canada trades with the Asia-Pacific region. It has opened up opportunities for trade, not only in western Canada but right across the country. We are applying the lessons learned with the Asia-Pacific Gateway and Corridor to other key gateway and corridor regions in Canada—particularly the importance of aligning systems and maximizing efficiencies.

One vital trade corridor we remain focused on is Windsor-Detroit. It's North America's largest border crossing and our busiest port of entry. We remain fully committed to developing the new Detroit River international crossing. We continue to work with the governments of Michigan and the United States to jointly develop a model for delivering this crossing. It is our intention to pursue a public-private partnership to design, build, finance, and operate the new bridge crossing. Governor Snyder of Michigan assured me that this project remains a top priority for his administration.

He too wants a seamless crossing to improve the connection between one of the premier manufacturing and consumer corridors in the world: the mid-west states, Ontario and Quebec.

I have received the same assurance from Secretary LaHood, the United States Secretary of Transportation, and from Ambassador Jacobson.

In keeping with this theme of gateways and corridors, I also want to talk about the new bridge for the St. Lawrence—another key trade artery and the most heavily travelled bridge in Canada.

Last fall I announced that our government will proceed with this bridge in Montreal. Work is progressing well on this major project. We have launched the federal environmental assessment and have issued two requests for proposals to hire environmental experts, financial advisers, traffic forecasters, and design engineers. Discussions with partners to determine the most efficient way to move this project forward are ongoing and will continue throughout the duration of the project.

In the meantime, the Champlain Bridge remains an important commuter route and trade corridor for the regional economy, handling nearly 60 million vehicles per year.

With an estimated $20 billion in international trade crossing the bridge annually, it is critical to our national economy.

The safety and security of the people crossing the existing bridge each day remain a top priority for our government. That's why, since 2009, our government has announced significant investments totalling $380 million to keep this important bridge safe for all who use it.

Another area where we have made significant strides is railway safety. As you know, I have introduced Bill S-4 to amend the Railway Safety Act of 2001. It is the latest in a series of actions we have taken to strengthen the performance of the rail sector.

My predecessor launched a full review of the Railway Safety Act in 2007 following several high-profile accidents during the two previous years. That was followed by an investment of $72 million over five years, announced in budget 2009, to ensure that Canadians can count on a safe and reliable rail transportation system.

Bill S-4 is the next important step in advancing this goal. The legislation has been in development for more than three years and incorporates input from government, industry and labour. In fact, the legislation has been dissected clause-by-clause by standing committees on two separate occasions. It was approved by all parties both times.

The proposed amendments to the act reflect recommendations from the Railway Safety Act review, as well as the Standing Committee on Transport, Infrastructure and Communities' study.

This bill is about better oversight tools to ensure safety; enhanced safety management systems to build a stronger rail safety culture; and additional authority to help protect our environment. Recently, second reading for Bill S-4 commenced, and members from all parties again expressed their strong support for this important piece of legislation. After several years of analysis, consultation, and debate, I look forward to the timely passage of Bill S-4.

Freight transportation is another railway sector in which we have been active. We kept our promise by launching the facilitation process for the rail service review and by appointing Mr. Jim Dinning to head it. I am pleased that he has agreed to take on the challenge of holding the consultations that will lead to improvements in the quality of service provided by the rail companies.

This review of rail freight services was launched in order to ensure that Canada has the rail network it needs to support a robust economy. As always, our Conservative government will honour its commitments.

Mr. Chair, I would now like to turn my attention to Infrastructure Canada and the important work it does.

As a former municipal politician, I know how essential federal infrastructure investment is to municipalities, provinces and territories.

It means a stronger economy on both the local and the national level. It means more secure jobs for Canadians. It means that people have reliable public transit. It means cleaner water and air. It means more parks, trails, community centres, and other important things that make communities better places to live and work.

I'm proud of our government's unprecedented actions to make federal infrastructure investments a priority. We started with budget 2007 and the seven-year Building Canada plan, and we invested $33 billion, the single largest federal infrastructure commitment in Canada's history.

Under this plan, we are funding thousands of infrastructure projects across Canada—projects that will have lasting economic and social benefits in communities for years to come.

Our government continued building on this foundation in budget 2009 with the economic action plan. Among many other measures, it introduced an additional $5.5 billion in targeted and timely federal infrastructure funding for provinces, territories, and municipalities.

In October 2011, I had the pleasure of celebrating the successful completion of about 4,000 projects under the infrastructure stimulus fund. These are important projects that got the economy moving and created jobs.

Since we introduced the economic action plan to respond to the global recession, 610,000 more Canadians are working today, resulting in the strongest recent employment growth by far among G7 countries.

In an uncertain global economy, our government will stick with our low-tax plan for jobs and growth—a plan that is working and which serves Canadians well.

Our balanced approach will boost our efforts to achieve a sustainable and prosperous recovery and preserve our economic advantage now and in the future. Key to achieving this progress is our ongoing commitment to public infrastructure, which last year's budget made clear.

We continue to make great progress in implementing two important commitments for the Government of Canada.

The first is a permanent annual investment of $2 billion in the gas tax fund. I am so pleased that we have passed this commitment into law, and now municipalities can count on stable, predictable funding for their local infrastructure projects, year after year after year.

Second, our government is working with our key partners—provinces, territories, and groups such as the Fédération canadienne des municipalités—on the development of long-term plans for public infrastructure to extend beyond the expiry of the Building Canada plan.

Your committee recently tabled a report on transit in Canada. The result of this work will help inform our long-term planning. Even though provinces and municipalities are responsible for transit, the information gathered through the committee's study will be valuable.

In November I announced with the Fédération canadienne des municipalités' board of directors how this engagement process would unfold. As a first step, we are currently taking stock of all that we have accomplished together with our partners and what the tangible benefits of our funding has been.

In phase two, we are continuing to work with our partners along with academics, technical experts, and practitioners to do some of the important analysis. Our goal here is to build the knowledge needed to make informed decisions.

This will set the stage for the final phase. Similar to when we launched the Building Canada plan, we will engage our partners on the broad principles and directions in a future infrastructure plan. The end result will be a long-term plan that meets the needs of Canadians.

As all of this is going on, our government will continue to deliver on its previous commitments, including managing the effective close-out of our programs under the economic action plan, and seeing our Building Canada plan commitments through to successful completion.

I'm proud to be part of a government that continues to lead the way in investing in public infrastructure and in building a better national transportation network that benefits all Canadians.

That concludes my remarks. I will now ask Minister Fletcher to speak to you. I would be happy to answer any questions that members of the committee have.

Thank you.

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, on the contrary. It has been suggested in the past when we have had budgets on Thursdays that we were doing that so we could go out and talk to Canadians about it for several days. Clearly, our interest is to tell Canadians about our economic action plan 2012 which is focused on keeping taxes down and creating jobs and economic growth for Canadians. We hope we will be able to speak about it a lot to Canadians. We are confident that they will see that we share their priorities strongly. I thank the opposition House leader for giving me the opportunity to explain that.

We will conclude this hard-working, productive and orderly week in Parliament by continuing debate on Bill C-31, the protecting Canada's immigration system act this afternoon and tomorrow. We will also debate that bill on Monday, March 26.

Next week is a constituency week where we will all be hard at work in our ridings.

The highlight of the week we return to Ottawa will be when the Minister of Finance rises in the House to present Canada's economic action plan 2012. That will be on Thursday, March 29 at 4 p.m. Canadians can look forward to our economic action plan which will include, as I indicated earlier, important measures focused on jobs and economic growth.

I understand that the Standing Committee on Finance agreed to a responsible work plan for its study of the financial system review act, Bill S-5 so that this House can pass the bill before Canada's banking laws expire in mid-April. Canada has the world's soundest banking system. It is important that we keep it this way. That is why I trust we will see a responsible approach to this bill in the House, similar to what we saw at committee. In anticipation of the bill being reported back to the House tomorrow afternoon, I will be giving priority to report stage and third reading of Bill S-5 on Tuesday, March 27 and Wednesday, March 28.

If we have additional time on those days, I hope we can finish second reading debate of Bill S-4, the Safer Railways Act, and then deal with Bill C-12, the Safeguarding Canadians' Personal Information Act, at second reading.

On Thursday, March 29, we will resume debating Bill C-24, the Canada–Panama Economic Growth and Prosperity Act, before question period. After question period, the House will turn to Bill C-15, the Strengthening Military Justice in the Defence of Canada Act.

Friday, March 30, shall be the first full day of debate on the budget.

Safer Railways Act

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I am pleased to have this opportunity to speak to Bill S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act.

I would like to begin by saying that we have been looking forward to this bill for years. We have been waiting for a rail safety overhaul for a long time, and this bill is a major step forward. We have all been looking forward to this measure, and we are happy to support this bill.

I would like to mention that the railway system is very important in my riding of Drummond. This is not something that should be neglected; rather, it should be protected. VIA Rail passenger trains pass directly through Drummondville and stop to pick up and drop off many passengers who are happy to have this service. We would like VIA Rail to provide our city with even more services and we would like the government to invest even more in this magnificent mode of transportation. Freight trains also pass through our city. Residents are greatly appreciative of this fact because rail transport is one of the most environmentally friendly modes of transportation. However, it is important that investments be made in infrastructure. The hon. member for Vaudreuil-Soulanges spoke about this earlier. In Drummondville, for example, when a train passes through, three downtown streets are blocked for 5, 10, 15 or sometimes even 20 minutes, which means that people are stuck in traffic.

This bill to improve rail safety is very important because it will enhance safety, not only for train crews and passengers, but also for the people near the trains, such as drivers and pedestrians. As I mentioned, trains pass right through the middle of downtown Drummondville. Thus, it is very important to us that rail safety be improved.

I would like to add that not only does the NDP support Bill S-4 but it has also proposed some amendments. I will list a few of them. I see that I do not have much time left. For example, we know that the Conservative government has ignored repeated calls—

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, it is with great pleasure that I stand in support of the legislation, but as will become clear in my presentation to this House, I have some reservations on the commitment of the government to actually deliver on the legislation.

As the parliamentary secretary said in his comments on Bill S-4, the government should do what only governments can do and he noted that one of those things was to ensure public safety. However, he then added that it was important to move toward greater privatization and less government control, including over the rail industry.

I would suggest these are rather contradictory statements. It is that very contradictory approach to governance, frankly, by the current government that has caused increasing risks to public health and safety.

Nonetheless, the government can be commended for including many of the recommendations made over the many years of review of the legislation to improve it, including the introduction of administrative penalties and the stricter or higher penalties for serious infractions.

The introduction of administrative penalties is long overdue. I in fact participated in an initiative by Treasury Board and the Department of Justice in 1989. I was then chief of enforcement for Environment Canada and one of the few officials in the government who was actually supportive of this measure. We had a very productive measure. We travelled in the United States and examined some European jurisdictions for more innovative approaches to ensuring compliance with federal statutes. One of those measures was administrative penalties, which have only recently been put into environmental laws. It is encouraging to see them put into this law.

However, what causes me great concern is another comment by the parliamentary secretary. He may have misspoken. He may not understand fully what is included in enforcement of compliance policy and the criteria that are normally put in place in determining what kind of penalty should be exercised.The parliamentary secretary suggested that the value of administrative penalties was in a case of persistent non-compliance. I would like to assure the House that certainly in the case of environmental statutes, a case of persistent non-compliance is generally a trigger for a serious investigation and, in all likelihood, a prosecution.

The very purpose of legislation and the very purpose of an enforcement compliance system is to show to the regulated industry that there is a threat of detection and, in turn, enforcement.

As an aside, Mr. Speaker, I did not realize that I was splitting my time with the member for Drummond. If you could let me know when my time is up so I do not speak over it, I would appreciate that.

It is very important when tabling an important piece of legislation like this to make it clear within the agency that is going to be responsible for ensuring compliance that a very clear and consistent enforcement and compliance strategy has been put forward.

I would like to bring to the attention of the House, including to the government of the day, the fact that a predecessors of theirs, a former environment minister, Tom McMillan, of the Progressive Conservative government of Prime Minister Mulroney, actually took that measure and had a very commendable approach to regulating at the federal level. On the day he tabled his bill, the now Canadian Environmental Protection Act, he simultaneously tabled an enforcement and compliance policy. Why did he do that? He said that a law without effective enforcement was a hollow measure.

I think that would make sense to everyone in this House. In other words, we can have the strictest penalties in the world, we can showcase the law and say that it is the best one in the western world, as we often say about our Canadian environmental statutes, but it is of little value if there is not equal commitment to effectively enforce that law and to ensure compliance.

Hearing the responses today from the government members to questions asked in this area, I am not reassured. I look forward in the future, perhaps in further discussions of the bill, for that matter to be clarified.

Why am I raising this? One of the most serious problems with rail safety in this country, in some cases, has been the failure to regulate and the failure of successive governments actually to enact the necessary regulations to give credibility to the Railway Safety Act. We have had review after review, including by the rail safety board, identifying regulatory gaps. However, the most significant problem with rail safety that has been identified by independent review bodies has been the failure of the government to effectively enforce that legislation.

I will refer to a report by the Commissioner of the Environment and Sustainable Development tabled in the House in December 2011, very recently. What did the commissioner find? He and his review found:

Transport Canada lacks a consistent approach to planning and implementing compliance activities [in transportation]. As a consequence, it cannot ensure that sites are inspected according to the highest risk.

He further stated:

Transport Canada has not ensured that corrective action has been taken on instances of non-compliance.

In addition, he stated:

Transport Canada has given only temporary, interim approval for nearly half of the emergency response assistance plans put in place by regulated organizations. As a consequence, many of the most dangerous products regulated under the Act have been shipped for years without the Department having completed a detailed verification of plans for an immediate emergency response.

I have personal knowledge of these deficiencies. I happen to own property on Lake Wabumun, where in 2005 there was largest freshwater spill in the history of North America. Three-quarters of the spilled bunker C oil still lies at the bottom of Lake Wabumun. There was somewhat of an attempt to clean it up. I have to say that the Government of Canada, regrettably, did not appear on the scene until a week after the spill. Why is that critical? It is because there is a first nation located on that lake, which was monumentally impacted by that spill. The end result of the spill was a special commission by the Government of Alberta to ensure there would better emergency response measures in the future. I am sad to say there was no parallel review conducted by the Government of Canada.

It is not only the Commissioner of the Environment and Sustainable Development who has identified problems with the regulations under the statute. By the way, the new statute does provide for additional regulations, but, regrettably, the government has not simultaneously tabled the listing of regulations and the timetable wherein these regulations will be put in place. The statute is fine insofar as it is an enabling legislative measure, but the substance of this act comes with the regulations. We do not have any knowledge of when the government plans to come forward with these regulations, what the timetable and consultation program will be. I would encourage the government to bring these forward because it would give a lot of assurance to the people in the communities who live and work along the rail lines.

I would also encourage the government to table an enforcement and compliance strategy. Why is that critical? It is because it has been determined in review after review by the rail safety board that the system that the present government and the government before it have put into place is simply to abandon enforcement. It has been turned over to a self-inspection and self-enforcement system by the rail lines. That would be fine if we were not dealing with an industry that is increasingly carrying heavier loads and more dangerous cargo.

By the way, this cargo runs along most of the waterways of this country. The rail lines were originally built along the waterways to cool the trains' coal-fired engines. A good deal of the Canadian environment is potentially at risk, hence, the reason for the amendments to ensure greater rail safety in Canada. However, that is all the more reason it is incumbent upon the government to ensure those provisions are actually effectively inspected and enforced.

I would bring to the attention of the House a report by Transport Canada following the Wabumun and Cheakamus spills. It stated:

The Railway Track Safety Rules do not provide any guidance on fatigue life, nor are there common industry standards for rail life based on accumulated tonnage and the properties of the steel.

...Neither the quality of steel nor the accumulated tonnage is factored into this decision.

It further stated:

Recognizing the limitations of existing inspection tools, there is a requirement for additional strategies to ensure that maintenance rails are not installed where they are likely to have a shorter fatigue life than the parent rail.

It made a number of recommendations on putting more specific binding criteria in place for the maintenance of rails. Again, as I mentioned at the outset, that is very critical because many Canadians live and work along these lines and we need to ensure the public safety of Canadians.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I think all of us are very pleased to see Bill S-4 reflecting the spirit of co-operation of all parties who are concerned with rail safety in this country.

I would also like to ask whether we can see the kind of commitment that would extend rail safety by providing the additional kind of equipment, the automated brakes on speed and so on, that could avoid accidents. The member has spoken to this point, but I would really like to see the kind of solid commitment that goes along with this excellent legislation.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, it is always a privilege to address the House, particularly so when important issues such as the safety of Canadians, the protection of our environment and the efficiency of our economic infrastructure are on the table, as they are today.

As my hon. colleagues have recently emphasized, the government is committed to the safety and security of Canadians and Canadian communities and to a safe, dependable and modern transportation system to support the continuing well-being and prosperity of this country.

We cannot claim to have instant solutions for every new challenge that arises. Nobody can. However, as we have demonstrated time and time again, we are always willing to work openly and transparently in consultation with stakeholders and Canadians to ensure that the solutions and initiatives we develop are those this country needs to safely flourish and grow.

I believe the Safer Railways Act, brought forward today, is a fitting testimony to the success of our approach.

When the Minister of Transport, Infrastructure and Communities launched the Railway Safety Act review in 2007, Canada had recently suffered a series of devastating trail derailments that had caused the death of loved ones, the disruption of businesses, and a serious pollution of track-side lakes, rivers and communities.

During the course of extensive inspections and audits undertaken by Transport Canada following these accidents, the regulator identified numerous deficiencies that contributed to decreased safety levels, including non-compliance by the railway companies with various safety requirements.

There was a general concern with the level of the railways' compliance with regulations. Accordingly, the terms of reference for this Railway Safety Act review specifically directed the independent panel to examine the adequacy of Transport Canada's enforcement powers and to consider whether administrative monetary penalties should be added to the range of enforcement powers available to the department.

The minister appointed an independent advisory panel in January of 2007 to lead the review of the Railway Safety Act. This panel was given the clear mandate to uncover gaps in the Railway Safety Act and make recommendations that would make the regulatory regime more robust and adaptable to the railway industry and its operations.

The panel conducted extensive consultations across the country with railway companies, all levels of government, labour, shippers and suppliers. This approach ensured that subsequent recommendations would take into account the appropriate range of perspectives on rail safety issues. Consultations and careful consideration of these issues were carried out during the year-long course of the review and resulted in the advisory panel making a series of recommendations.

It is important to note that our government took immediate action to implement many of these recommendations. At present, Transport Canada has implemented eight internal recommendations, industry has implemented three, and the final 21 recommendations involve the legislative changes that we are discussing today.

Furthermore, an advisory council on railway safety was created, as well as a Transport Canada-industry-union steering committee and six technical working groups. These groups successfully bring together relevant stakeholders to address rail safety issues in a collaborative manner.

I specifically wish to discuss a key recommendation by the advisory panel upon its examination of the Railway Safety Act. The panel uncovered that Transport Canada's enforcement powers under the Railway Safety Act need to be strengthened to encourage better regulatory compliance, increase safety, and help prevent further incidents like those that originally triggered this review.

The independent panel's final recommendation on the issue, as detailed in its report of March 2008, plainly stated that “an administrative monetary penalty scheme should be included in the Railway Safety Act as an additional compliance tool” to enhance safety in the rail industry.

The government fully agrees with the panel's assessment, and the introduction of a scheme for administrative monetary penalties has been included as an important and integral part of this comprehensive package of safety amendments to the Railway Safety Act.

Administrative monetary penalties are certainly not new in the transportation sector. They were successfully introduced in the air industry in 1986 and were subsequently introduced in the marine industry in 1991.

Penalties of this nature have been introduced in the transportation industry because they work. In simplest terms, administrative monetary penalties are similar to traffic tickets for car drivers. When a company or individual breaks a rule or does not comply with a regulation, the department can impose a pre-established administrative monetary penalty or fine to help encourage compliance in the future.

Administrative monetary penalties have other safety benefits as well. With an administrative monetary penalty scheme in place, there is the perception of fairness because the operator knows in advance the cost of non-compliance and it is applied uniformly. Penalties can also be applied more uniformly as there is less discretion for giving warnings and therefore less opportunity for inconsistency.

Under the current Railway Safety Act, Transport Canada's options for enforcing non-compliance are limited. When a violation is found during the course of an inspection or audit, an inspector will normally issue a letter of non-compliance and follow up in a given time frame to verify that corrective action has been taken. If the situation has not been corrected, the regulator has only one option, prosecution, which is both costly and time consuming and therefore ineffective for a large number of violations. This is a significant weakness in the current enforcement scheme of the act.

We believe that administrative monetary penalties should be implemented as an additional enforcement tool under the act to provide an efficient, effective and less costly alternative to prosecution, particularly in the case of persistent non-compliance with safety requirements established under the act. This is consistent with the principles of minimizing the regulatory burden for Canadians while, at the same time, promoting regulatory compliance.

Of course, in interests of fairness for all parties, the proposed administrative penalty scheme would allow for a review of the regulator's penalty decisions by the Transportation Appeal Tribunal of Canada. The scheme would also include provisions related to the minister's decision to impose a penalty, the due process to be followed, the review of decisions by the appeal tribunal and the level of fines to be paid for non-compliance infractions. Maximum levels for administrative monetary penalties would be $50,000 for an individual and $250,000 for a corporation, which is consistent with similar schemes in other modes of transport.

In addition to the implementation of an administrative monetary penalty scheme to improve railway compliance, we propose, through these amendments, to raise existing judicial penalty levels, which were established 20 years ago and are no longer consistent with those in other modes of transport. Maximum judicial fines for convictions on indictment for a contravention of the act would increase from $200,000 to $1 million for corporations and from $10,000 to $50,000 for individuals. Maximum fines on summary conviction for contravention of the act would increase from $100,000 to $500,000 for corporations and from $5,000 to $25,000 for an individual. These levels are consistent with other modes of transport, including air and marine, and the transport of dangerous goods in all modes under federal jurisdiction and reflect our view of what constitutes an effective deterrent to safety violations.

Implementing administrative monetary penalties as proposed in the safer railways act is clearly an important step in the development of an effective railway safety regime with sufficient scope and strength to ensure that our railways are safe and that they remain safe for the long term, as the railway industry continues to evolve and grow.

Administrative monetary penalties are not a stopgap measure. They were recommended by the Railway Safety Act review panel because they are a proven solution for improved compliance and safety requirements in the transport industry. Improved compliance means better safety for all Canadians and Canadian communities and a stronger foundation for our national transport system and economy for years to come.

The time is now to adopt this bill and move forward with further strengthening of the safety of our railway system. This bill has been consulted on and analyzed for several years and has received widespread approval and applause by all key industry stakeholders as well as members of both this House and the other place. I urge my colleagues to recognize that the time for debate has passed and, in the name of the safety and security of Canadians, the timely passage of this legislation is vital.

[Isabelle Morin, NDP, Notre-Dame-de-Grâce—Lachine, QC]

Mr. Speaker, I am very pleased to rise here today to speak to Bill S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act. My riding has an abundance of train tracks that are used by CP, CN and commuter trains. I think it is very important that we take the time to debate this bill, which is a very good bill, as my colleague said. I would like to talk about it a little more, so that the people of my riding really understand what it is all about.

The purpose of the bill is to improve the oversight capacity of the Department of Transport by, for example, requiring railway companies to obtain a safety-based railway operating certificate indicating compliance with regulatory requirements; strengthen the Department of Transport’s enforcement powers by introducing administrative monetary penalties and increasing fines; enhance the role of safety management systems by including provisions for a railway executive who is accountable for safety and a non-punitive reporting system for employees of railway companies; clarify the authority and responsibilities of the Minister of Transport with respect to railway matters; and expand regulation-making powers, including in respect of environmental management, and clarify the process for rule making by railway companies.

Allow me to provide some context for what we are talking about today. In 1989, the Railway Safety Act was born. Seven years later, the Canada Transportation Act was passed. Consideration was subsequently given to re-examining the Railway Safety Act, but the idea was abandoned at the time. Then, in 2000, we started seeing many railway accidents. From 2000 to 2005, there was an increase in the number of incidents, deaths and damage caused by railway accidents. In 2006, the government decided to begin a review of the Railway Safety Act. In May 2008, the Standing Committee on Transport, Infrastructure and Communities made a number of recommendations after studying the issue. In 2010, Bill C-33, which was more or less the same as this one, unfortunately died on the order paper. Finally, there was a Senate bill, which reproduced roughly everything that was in Bill C-33.

All members of our party support this bill. The NDP has often promoted railway safety. We are talking about lives and injured people. We will definitely support a bill that will improve rail safety.

The NDP fully supports the fact that the bill would provide additional powers to more closely regulate the rail system in Canada. However, we find that the bill does not contain concrete measures to achieve that. We are putting pressure on the government to make voice recorders in locomotive cabs and positive train control systems mandatory.

I will explain how a positive train control system works. If a train is going too fast, this system makes it possible to slow down the train remotely. On February 26, there was a train accident in Burlington, Ontario, that killed three people and injured 42. This should never have happened. We know that speed was a factor, but unfortunately we do not know much more than that. We do not know why or who decided this train was travelling too fast. An automatic safety system would have made it possible to control this train and reduce its speed. This accident killed three Canadians—VIA Rail employees—and could have been prevented.

Voice recorders are mandatory for planes and ships, but for some unknown reason they are not mandatory for trains.

Basically, if there had been a voice recorder in the locomotive, we would know what really happened on February 26 and we might be in a position to prevent this type of accident in the future.

In my riding, the train tracks are very close to the houses of my constituents, within a few metres. There are laws about that, and the houses are built at the minimum distance required by law. That worries me.

The railway system in Canada is very safe. We live in a very safe country and we are careful, but improvements have to be made. There are still some shortcomings that allow accidents like the one on February 26 to happen. That was a passenger train. In my riding, many trains that carry hazardous materials also pass through. A speed control system and a voice recording system would enable us to go even further.

I am not really going to say more about it. On this side of the House, we are definitely in favour of the bill, and all the parties involved agree that our country's safety is very important.

Let me reiterate that I am in favour of this bill and pleased that it was introduced. That could have been done earlier. We have gone through a number of stages and we have taken some time before considering the matter. I am really pleased now that the Senate has proposed a bill that will improve our country's railway safety. I also hope that we will be able to go further by perhaps including the two solutions suggested by the NDP.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I will be sharing my time with the hon. member for Notre-Dame-de-Grâce—Lachine.

It is a pleasure to speak to Bill S-4, the safer railways act. I would like to reiterate the comments I made this morning. Very often the opposition stands in the House and criticizes the government, as is our job to do and as is very often necessary in this place. However, it is also important to give credit where credit is due. I want to congratulate the government and the minister in particular on bringing forward a piece of legislation which is much needed, well crafted and will accomplish a great deal on railway safety in this country.

Our party's late leader, Jack Layton, used to talk about it being necessary to propose as often as oppose. The corollary to that is it is important to compliment and criticize when each is due.

The bill has been 20 years in the making. The reason the bill is in as good a shape as it is the approach that was used on this legislation. All Canadians would like to see more of that approach. The government sat down and consulted with industry, labour, and stakeholders of many different stripes. Government members sat in committee, listened to expert testimony and worked with the official opposition and all parties to make improvements to the legislation. Once again I want to thank the government and point out that its good work has resulted in a piece of legislation that is improved because of that approach. I might suggest that the government follow this procedure more often. I think it is something Canadians want to see.

The bill seeks to modify the Railway Safety Act to do a number of things. It improves the oversight capacity of the Department of Transport. It requires railway companies to obtain the safety-based railway operating certificate that indicates compliance with regulatory requirements.

The bill strengthens the department's enforcement powers by introducing administrative monetary penalties and increasing court-enforced penalties. It enhances the role of safety management systems by including a provision for the identification of a railway executive who would be legally responsible for safety, and a whistleblower protection system for employees of railway companies who raise safety concerns. I will talk about that very important aspect in a moment.

The bill clarifies the authority and responsibilities of the Minister of Transport with respect to railway matters. It expands regulation-making authorities and clarifies the process for rule making by railway companies.

By way of background, Bill S-4 was introduced on October 6, 2011 in the Senate by the leader of the government there. Bill S-4 is virtually identical to former Bill C-33, which was introduced in the House of Commons during the third session of the 40th Parliament.

Bill C-33 was studied by the House of Commons Standing Committee on Transport, Infrastructure and Communities, and was reported back to the House of Commons with amendments in March 2011. Unfortunately, the bill died on the order paper when the general election was called later that month.

The text of Bill S-4 incorporates the amendments adopted by the standing committee and otherwise differs from Bill C-33 only by the addition of one new paragraph and some minor changes in wording.

The bill was reported back to the Senate by the Senate Standing Committee on Transport and Communications with that one amendment in November 2011. The bill was sent back to this House where it received first reading in December of last year.

The Railway Safety Act was implemented in 1989. The act sets out a regulatory framework for railways under federal jurisdiction to address matters of safety, security and environmental impact. Transport Canada notes that the Canadian rail industry has changed significantly since the act was amended in 1999 and operations have become increasingly complex and traffic is growing rapidly. Therefore, this bill is timely.

I mentioned earlier that labour supports the bill. I want to mention a couple of things which I think labour was instrumental in achieving.

Labour made several key important points.

It wanted to see better fatigue management. That aspect is addressed in the bill.

It wanted to see greater whistleblower protection. In particular, it wanted to see a process of non-punitive reporting whereby railway employees could report their safety concerns directly to Transport Canada and not to a company manager. If workers identified any defects or safety problems, they could without fear go directly to Transport Canada. There had been a problem. Some railway workers feared being disciplined. Some had been disciplined by companies for nothing more than reporting their safety concerns. This is a positive legislative change.

Some railway workers say that they do not want to rely on good luck and gravity for railway safety. They want to rely on careful attention to detail, and swift and accurate reporting of problems so that accidents do not occur and problems can be identified before something happens.

Bill Brehl, the president of Teamsters Canada Rail Conference, maintenance of way employees division, did stand-up work in pushing for the amendments to this bill and for the overall concept of railway safety to be included in the legislation. Rex Beatty, president of the Teamsters Canada Rail Conference, locomotive engineers, and Rob Smith, the national legislative director of that same body, also played pivotal roles in this piece of legislation.

This also shows how important it is to involve experts and Canadians from coast to coast, to bring to bear in this House their experience, knowledge and expertise. It helps make better legislation. This will make life safer not only for all Canadians, but for the thousands of women and men who work every day on the trains, tracks and rolling stock to keep them in shape.

There are some areas that need improvement. At-grade crossings are a problem in this country. Greater control of trespassing is still a problem which I do not think this bill fully addresses. The issue of track and metal fatigue is not fully addressed by the bill.

In terms of at-grade crossings, approximately 100 people per year are killed in railway accidents. Accidents happen frequently at the at-grade crossings. There are several ways to address this. We could raise the crossings, which is an expensive but effective way to go. We could bring in an automatic train stopping mechanism, as Sweden has done. There are automatic metal detectors and if a vehicle is on the tracks at an at-grade crossing, the train will automatically slow and stop in advance. That is something I would encourage the government to look at and implement as soon as possible.

With respect to trespassing, we need to fence off tracks especially in urban areas, which are places of death and injury. People trespass and get on the tracks, even though they should not.

Last, in terms of track maintenance and metal fatigue, there is no requirement to establish the fatigue life of rails. There are no common industry standards for rail life based on tonnage, defects or steel quality. For a country that relies so heavily on rail, we should be ensuring that we have state of the art world-class standards in this area. We can do more and better in this area.

In 2005 there was a derailment of a train near Wabamun Lake in Alberta. A report pointed out that the railway track safety rules do not provide any guidance on fatigue life, nor are there any common industry standards for rail life based on the state of the metal used on the tracks. A clear recommendation of the Transportation Safety Board was to establish those standards to ensure that the tracks upon which our trains roll are in the best shape possible.

I would like to conclude by thanking members of the committee on all sides of the House, and in particular the good work of our member for Western Arctic. He did such great work in pushing productively, proactively and in a non-partisan way for greater standards in the act.

I congratulate the government on bringing forward a piece of legislation that has the support of all parties of the House. It is a testament to a non-partisan, co-operative way of working together to get the job done which results in good legislation that every Canadian wants to see.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, my colleague spoke about the safety of Canadians and indicated this was paramount to the government. I am sure he is aware that not a lot of changes were made in Bill S-4. A lot of work was done when it used to be Bill C-33, and the amendments were made by the NDP member for Western Arctic.

On that note, I would like to indicate that there are a lot of rail systems throughout northern Ontario. A number of those rail cars carry dangerous contents, so we see this as a very positive move. Could my colleague speak about the fact that there are still exemptions available to rail companies on this matter? If we talk about the safety of Canadians as a whole, we need to recognize that there should not be any exemptions at all when it comes to the well-being and safety and security of Canadians. Could he elaborate on the fact that there are exceptions from safety regulations that protect the public under the bill?

[Lawrence Toet, Conservative, Elmwood—Transcona, MB]

Mr. Speaker, I am pleased to have the opportunity to speak today about our government's efforts to improve the safety of Canada's national railway system through the safer railways act. For my riding of Elmwood—Transcona, the name Transcona comes from “transcontinental“ which is one of the CN line's main facilities that was put into my riding many years ago. So the background of my riding is very much historically involved with the rail industry.

These amendments have been supported from the outset by all stakeholders. The government introduced a similar bill, an act to amend the railway safety act, on June 4, 2010. Also known as Bill C-33, it was studied by the Standing Committee on Transport, Infrastructure and Communities. It was approved unanimously by the committee, with minor changes, on March 10, 2011 and reported to the other House on March 11, 2011. However, the opposition prioritized politics over the safety of Canadians. This bill died on the order paper on March 25, 2011, with the call of an election.

During the second reading debate on Bill S-4, members in the other place shared personal stories concerning the economic and environmental damage and personal tragedies that had resulted from rail accidents in their own jurisdictions. Their reactions to the proposed amendments were very positive. I believe our shared support of this important safety legislation reflects a common desire to ensure our national railway system, which is one of the most important components of our economic infrastructure, remains one of the safest in the world for the long-term benefit of our economy, our communities and our environment. The safety and prosperity of Canadians is of paramount importance to us all.

Bill S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act, was introduced in the other place on November 1, 2011. This bill was studied by the Standing Senate Committee on Transport and Communications and approved unanimously by the committee with one amendment. It was reported to the other place on November 24, 2011. By reintroducing proposed amendments to the Railway Safety Act, the government is reiterating its commitment to a safe and secure national rail transportation system, not only to communities across the country but also to Canada's economic well-being and its vision to further improve rail safety and environmental protection.

Before going further, I would like to remind hon. members of the origins and purpose of this bill. For many years, the safety of Canada's federal railways was regulated under the Railway Act, originated at the turn of the century when Canada's railway system was rapidly expanding. The Railway Act was designed for an older era. At that time, much of the national rail system was under construction to open up new territory and to encourage settlement. In 1989, the Railway Act was replaced by the Railway Safety Act, which was designed to achieve the objectives of the national transportation policy relating to the safety of railway operations and to address the many changes that had taken place in the rail transportation industry in recent years. It was a time of privatization and restructuring, supported by a new federal policy that separated economic and safety legislation to provide the railway companies with the flexibility they needed to prosper.

The Railway Safety Act gave direct jurisdiction over safety matters to the Minister of Transport, to be administered by Transport Canada where responsibility for other federally regulated modes of transportation resides. Today, economic regulation of the rail industry is guided by the Canada Transportation Act, which provides an overall framework to ensure a national transportation system that is competitive, economic and efficient. That act, which came into effect in 1996, also established the Canadian Transportation Agency which is responsible for dispute resolution and economic regulation of all modes of transport under federal jurisdiction, including rail.

Rail safety regulation, on the other hand, is governed by the Railway Safety Act which was developed in the spirit of co-operation between industry and government. The Railway Safety Act moved away from a fully prescriptive regulatory approach to one that recognized the responsibility of railway companies for the safety of their own operations.

At the same time, the federal government, through Transport Canada, retained the responsibility and the power to protect people, property and the environment by ensuring that the railway companies operate safely within the national framework. Transport Canada undertakes its responsibility to maintain a safe national rail system through policy and regulatory development, outreach and education, and oversight and enforcement of the rules and regulations it implements under the authority of the Railway Safety Act.

Applied in tandem, the Railway Safety Act and the Canada Transportation Act have successfully guided the growth of Canada's rail sector since the 1990s. But there are issues. As it stands today, the interrelationship of the Railway Safety Act and the Canada Transportation Act has created a notable gap in rail safety oversight that must be addressed if we are to ensure the continued safety of our national railway industry.

Following a review of the Railway Safety Act in 1994, the act was amended in 1999 to further improve the legislation and to make the railway systems even safer. Those amendments were designed to fully modernize the legislative and regulatory framework of Canada's rail transportation system. They were also designed to make railway companies more responsible for managing their operations safely. They gave the general public and interested parties a greater say on issues of rail safety.

The fundamental principles on which the regulation of railway safety in Canada is based are: to promote and provide for the safety of the public and personnel, and the protection of property and the environment in the operation of railways; to encourage the collaboration and participation of interested parties in improving railway safety; to recognize the responsibility of railway companies in ensuring the safety of their operations; and finally, to facilitate a modern, flexible and efficient regulatory scheme that will ensure the continuing enhancement of our railway safety.

The 1999 amendments to the Railway Safety Act aimed to help achieve these objectives by providing for the safety of the public and personnel and the protection of property, and the environment in the operation of railways; and by providing the regulator with the authority to require railway companies to implement safety management systems.

In 2007 the Minister of Transport, Infrastructure and Communities launched a review of the Railway Safety Act following a series of devastating train derailments that had caused the death of loved ones, the disruption of businesses, and the serious pollution of trackside lakes, rivers and communities.

An independent panel conducted a review of the existing Railway Safety Act. This review was intended to identify possible gaps and make recommendations for improving railway safety. The panel of experts commissioned research and held extensive public consultations across the country.

Over the course of a year that panel travelled from coast to coast gathering input from a full spectrum of concerned stakeholders, including the railway companies and their association, the railway unions, shippers, suppliers, municipalities, other national organizations, other levels of government and the public. Interest in the consultations was high and all key stakeholders participated.

The panel's final report, “Stronger Ties: A Shared Commitment to Railway Safety”, was tabled in the House by the Minister of Transport in March 2008. In the report the panellists noted that although the Railway Safety Act and its principles were fundamentally sound, more work was needed. A number of legislative improvements were required. The report contained 56 recommendations to improve rail safety in Canada.

The standing committee, which also conducted extensive stakeholder consultations, accepted the panel's recommendations and tabled its own report in the House in May 2008 with 14 recommendations, many of which built on those of the Railway Safety Act review.

Both reports identified key areas for improvement and recommended increasing Transport Canada's resources to allow it to strengthen its oversight and enforcement capacity and to implement new safety initiatives.

Transport Canada agrees with the recommendations of these reports. It has taken steps to action them through a variety of government, industry and union initiatives, and through the proposed legislative amendments to the Railway Safety Act which are required to address key recommendations and enable many safety initiatives.

The proposed amendments would significantly modernize the current Railway Safety Act to reflect changes in the industry and provide for higher levels of oversight and enforcement. The key elements and advantages of the bill are clear and would include: a stronger oversight and enforcement capacity for Transport Canada through the introduction of safety-based railway operating certificates and monetary fines for safety violations, as well as an increase in existing judicial penalties to reflect the levels found in other modes of transport; a significantly stronger focus on the importance of railway accountability and safety management systems, which both industry and labour applaud; a clarification of the minister's authority on matters of railway safety to bridge existing gaps in the act; and, an expansion of regulation-making authorities which have particular importance and would enable Transport Canada to require annual environmental management plans from the railways as well as a requirement for railways to provide emissions labelling on equipment and emissions data for review.

In sum, these proposed amendments to the act would improve rail safety in Canada for the long term. They are the culmination of two important studies and extensive consultations. They provide increased safety for Canadians and Canadian communities; economic benefits to the industry by decreasing the likelihood of costly accidents and delays; a variety of benefits to external stakeholders, including provinces, municipalities, shippers and the travelling public; and last, but far from least, support for a stronger economy, a modern infrastructure and a cleaner environment for all Canadians.

The Standing Committee on Transport, Infrastructure and Communities, the same committee that launched its own review of rail safety and made many of the recommendations reflected in this bill, has examined the contents of these proposed amendments thoroughly. It has given the bill its unanimous blessing with only a few minor adjustments.

During this examination, the committee heard strong support for this bill from a number of key stakeholders, including railways, the unions and municipalities. Clearly, this bill has been analyzed and consulted on exhaustively. It is our responsibility to move forward with the passing of this legislation.

This bill has already gained widespread support. Witnesses before the committee expressed strong support for the implementation of safety-based railway operating certificates for railways that run on federal track. These certificates would significantly strengthen Transport Canada's oversight capacity and ensure that all companies have an effective safety management system in place before beginning operations. Companies that are already in operation would be granted a two year grace period to meet the requirements for their certificate. This would include all federally regulated railways as well as several of our largest national transit systems that use hundreds of miles of federal track and carry millions of Canadians to and from work daily. Increased safety for these travellers would be a significant benefit for businesses, communities and families.

Witnesses before the committee also expressed their support for the introduction of monetary penalties and an increase in judicial fines for serious contraventions of safety regulations. Monetary penalties already exist in other modes of transport. They serve as a complementary enforcement tool to existing notices and orders and provide additional leverage on companies that persist in safety violations. The proposed increase in judicial fines, established 20 years ago, would also strengthen Transport Canada's enforcement options and bring those fines to a level currently found in other modes.

Witnesses before the committee also spoke of the significant improvements contained in the bill, particularly for the implementation of safety management systems. There was strong support for the introduction of a requirement for a designated executive legally responsible for safety issues.

There was also strong support for an introduction of whistleblower protection for railway employees who raised safety concerns. In fact, support for this was sufficiently strong that the committee approved an amendment to the bill that would provide additional safety reporting options for employees, including direct reporting to Transport Canada. Amendments such as these will help the growth of a strong safety culture in railway companies.

I would like to point out that the expansion of reporting options for safety violations was the only significant amendment made by the committee to the original version of the bill that was referred to it after second reading. There were seven other amendments made by the committee, all of which were minor technical adjustments and clarifications of definitions.

Personally, this is a very impressive achievement, as very few bills make it through committee with such overwhelming accord.

Finally, the committee heard strong support to move the bill forward as quickly as possible so we could begin implementing an enhanced railway safety regime that would clearly benefit industry, benefit labour, benefit communities and benefit the Canadian public.

Without these amendments, the government's ability to effectively regulate railway companies in an environment of continued growth and increasing complexity would be sorely diminished. Improvement to Transport Canada's regulatory oversight and enforcement programs would be limited. The pursuit of new safety initiatives, with respect to safety management systems and environmental management, would be badly constrained. The legislative framework for railways would remain inconsistent with other transportation modes, which have a broader range of enforcement tools. Regulation-making authorities could not be expanded to allow for the creation of safety-based operating certificates and increased environmental protection.

Members' support for the bill will result in fewer long-term costs for the government and Canadians, due to reduced fatalities, serious injuries and damage to both property and the environment. There is no controversy over the intent or the content of the bill. We all want better railway safety in our country. This bill is the blueprint to ensure that we can achieve that.

The legislation would strengthen the national rail system that is so vital to our economy. By reducing the risk of accidents, we would enhance the competitiveness of our railways, increase the public safety of Canadians and add an additional layer or protection for our natural environment.

These amendments are a priority for the government. Canada's railways are vitally important to the national economy and are the most fuel-efficient form of transport for the movement of goods in our interdependent transportation system. Our railways have 73,000 kilometres of track stretching from coast to coast, more than 3,000 locomotives and handle more than 4 million carloads of freight. They operate more than 700 trains per day, moving nearly 70 million passengers and 75% of all surplus freight in the country. The railways were the foundation of our national growth in the past. They remain integral to our prosperity in the future.

Since the launch of the Railway Safety Act review in 2007, Transport Canada has worked continuously with stakeholders, through an advisory council on railway safety, joint technical working groups and individual consultations across the country to ensure the bill will meet the needs of all parties engaged in the rail industry.

We believe these proposed amendments are essential in timely. They respond directly to the recommendations of two important studies on rail safety that involved the high level of participation from all key stakeholders in the rail sector.

The bill has been exhaustively debated and analyzed for several years. It has received widespread support from all interested parties. It is now time to move forward with the passing of this important legislation for the safety of all Canadians.

We are modernizing the Railway Safety Act to reflect the requirements of a growing and increasingly complex rail industry, and these are changes all Canadians can agree upon.

I move:

That this question be now put.