Transport committee  Are you making a correlation between having an SMS and increased traffic?

Transport committee  I think that the two work well together. If marine traffic increases, no matter where that increase is, having a safety management system enables and leverages a culture that is mandated through a process to also learn, so the risk assessment process, the learning, and the change in innovation are enabled by having a safety management system.

Transport committee  Thank you for that question. There isn't a simple answer. I'll try to make it as simple as I can. The convention, the STCW that you refer to, has just recently had an additional protocol, and Transport Canada has implemented amended regulations to reflect the changes in that protocol to STCW.

Transport committee  To answer your question as briefly as possible, in order to get all vessels involved in a safety system, number one, they're required to be part of a safety system now through regulations, whether they are international operators or domestic operators. In order to increase the ability of an operator or an owner to be part of a dynamic safety regime, such as a safety management system, we are supportive of having that as a regulated entity by Transport Canada.

Transport committee  I think the biggest measurable is the drastic decrease in marine accidents and incidents. I'm not sure if we have specific statistics here. I mentioned one in my presentation. In looking at TSB statistics, we see an 18% decrease from 2008 to 2012. There are a lot of positive trends in the last decade that I think speak to the culture of the industry and also the regulatory environment of government.

Transport committee  Thank you. I think you're asking me what is the role of Transport Canada in regulating the class societies—

Transport committee  —to some degree, just to make the question more simplistic, they have to audit the class societies to ensure the class societies are doing their inspection regimes properly in accordance with the government's regulations. I would say that class societies and Transport Canada work hand in hand almost daily, because the class society is the customer of Transport Canada, not of the shipowner, for example.

Transport committee  I think that's probably directed at me. That cost is basically a sunk cost because we've been doing it for a long time. We're competitive. So is it a disincentive? No. It's as simple as it can be. There's no place to cut corners on safety. Regulations demand it and we enhance it with voluntary safety management systems.

Transport committee  Number one, there's close engagement from the CEO level down to the crew on a ship at every level at least annually. All the companies have what is basically called a “fleet week”, where they get together to discuss issues of safety. That starts right from the top. There are companies that have reward competitions for new safety aspects.

Transport committee  Absolutely. They have to be because the masters of our vessels are operating in the most pristine environments in this country, potentially the world. So they have to. It's good business to be safe.

Transport committee  Would it be overly simplistic to say leadership? It really is leadership. It has to be part of a company's corporate culture from the top down. It has to be demanded and you have to empower people and hold them accountable. I know that our members have that corporate culture because it is their competitive advantage.

Transport committee  Yes, some of that. Absolutely.

Transport committee  I don't think they'd feel more comfortable because they already go above and beyond, especially in the petroleum industry of the marine industry. There are other organizations globally and other industry organizations outside the marine industry that vet potential carriers of petroleum products.

Transport committee  There are lots of reasons that justify it.

Transport committee  Absolutely.