Bill C-26 (Historical)

An Act to amend the Criminal Code (criminal interest rate)

This enactment amends the Criminal Code by exempting persons from the application of section 347 of that Act in respect of agreements for small, short-term loans. The exemption applies to persons who are licensed or otherwise authorized to enter into such agreements by designated provinces that have legislative measures that protect recipients of payday loans and that specify a limit on the total cost of those loans.

[Jean-Pierre Bazinet, President, Chutes-la-Chaudière East Sector, City of Lévis]

Since my knowledge of English is limited, I will speak to you in French.

To the Chair of the Standing Committee on Transport, first we want to thank the members of the committee for allowing us to speak about our experience with noise generated by the Joffre switching yard in Charny. Our comments will pertain to an aspect of rail transportation which bears witness to the problems associated with the co-existence of rail traffic and daily life in an urban environment.

You have received our brief. I want to read you a summary that will be provided to you, if you so wish.

My name is Jean-Pierre Bazinet and I am a municipal councillor for the City of Levis. I am also president, Chutes-la-Chaudière East Sector, which includes the neighbourhood of Charny, Breakeyville, Saint-Jean-Chrysostome and Saint-Romuald.

I am accompanied today by Mr. Alain Lemaire, who is the municipal councillor for Charny and former mayor of the City of Charny, now part of an agglomeration. I am also accompanied by Mr. Alain Blanchette who is chief of staff of the mayor of the City of Levis, Ms. Danielle Roy-Marinelli. Finally Mr. Michel Hallé, a lawyer and legal advisor at the Direction des affaires juridiques for the City of Levis, is also here with me.

First, that current City of Levis is the result of the merger of 10 former municipalities which became neighbourhoods of that city on January 1^st, 2002. This city is home to some 127,000 people, making it the eighth largest city in Quebec.

The history of the railway and Levis heritage are intertwined. The railway was an important leader for economic development throughout the ages, and its rich tradition has grown over the years. Currently we want to maintain rail operations within our area, but in a more harmonious way.

Our brief deals with the following aspects: noise generated by the Joffre switching yard and its effects on public health; Bill C-11 and its amendments; finally suggested additions to the Bill.

As part of its activities, Canadian National operates a switching yard within the boundaries of Charny and Saint-Jean-Chrysostome. Given the elevated noise levels generated by switching operations conducted by Canadian National, numerous complaints have been laid by residents of the three former neighbourhoods that existed prior to the merger in 2000, as well as by residents of the other neighbourhoods that I mentioned earlier.

These residents believe that the noise pollution caused by CN's operations, particularly in the evening and at night, is affecting their health and impedes their peaceful enjoyment of their property. This situation came about in 1998 — and that date is important. Previously, the switching yard and the residents lived in harmony. The new situation coincided with the privatization of the company, which streamlined its operations not only in Quebec, but throughout Canada.

In that respect, the problems experienced by the residents of Charny are similar to those encountered in other cities in Canada. The preceding testimonies are compelling.

When CN failed to take action, a large number of affected residents signed a petition that was presented to the council of the former City of Charny in 2000. The municipality also received letters from home owners describing the situation as unacceptable and intolerable.

The former City of Charny decided to support the citizens' committee opposed to the noise from the Joffre switching yard in Charny. It hired an engineering firm Dessau-Soprin to conduct a noise study to measure the effect of CN's operations. The study, tabled in February 2000, copies of which I have, showed that the impulse noise mainly comes from such activities as switching of cars, acceleration and deceleration of locomotives, hooking together of cars, breaking of trains, train whistles, train movement, loaders, tow trucks and other vehicles and back-up beepers.

In 2001, the Public Health Department of the Chaudière-Appalaches Health and Social Services Board conducted an analysis of the situation and produced a report entitled “Assessment of the public health risk associated with environmental noise produced by operations at CN's Joffre switching yard in Charny.”

The study concludes, and I quote:

Based on the available noise measurements the literature review and the specific context, we find that the environmental noise to which many of the people living in the residential area adjacent to CN's Joffre switching yard adversely affects their quality of life and potentially their health. Such noise levels are therefore a nuisance to the peace, comfort and well-being of the residents near the Joffre switching yard in Charny. From a public health stand point, these noise levels are likely to have an adverse affect on health by disturbing sleep, which in turn has a number of side effects. These noise levels are in our view incompatible with residential zoning unless special measures are taken to reduce the noise.

Around the same time, the residents of the City of Oakville, Ontario, filed a complaint with the Canadian Transportation Agency under the Canada Transportation Act. In its decision, the agency determined that CN was not doing as little damage as possible in the exercise of its powers. Accordingly, the agency ordered CN to take certain measures, among them preparing a long-noise reduction plan satisfactory to the agency.

This decision was a source of tremendous hope for the residents of Oakville and Charny. In response to the decision, CN decided to challenge the Agency's jurisdiction in the Federal Court of Appeal. In a ruling handed down on December, 2000, the court found that the Canadian Transportation Agency did not have jurisdiction under the Canada Transportation Act to deal with complaints about noise, smoke and vibration from duly authorized railway operations.

In the wake of the decisions in the Oakville matter, the Canadian Transportation Agency decided to offer a mediation service in a bid to resolve disputes similar to those in Oakville and Charny. In March 2001, the former City of Charny and the citizens' committee submitted a request for mediation to the Canadian Transportation Agency. CN agreed to mediation. Unfortunately, after several meeting between the parties, we concluded that the mediation was not going to work. Bound by an undertaking to preserve the confidentiality of the discussions, we are unable to provide further details. We can say, however, that the City of Lévis which succeeded the former City of Charny on January 1^st, 2002, made every effort to find a solution acceptable to its residents and even delegated to the mediation meetings three elected representatives, including two members of the executive committee at the time.

Section 29 of Bill C-11 introduces four new sections dealing specifically with the noise caused by operation of a railway. We are especially pleased that Parliament decided to fill a major void in the process of resolving disputes between the community and the railway company by giving the Canadian Transportation Agency clear authority to make orders to rectify a noise problem.

The new section 95.3 restores the monitoring authority the agency lost as a result of the Federal Court of Appeal decision in the Oakville case. This section restores to Canadians a mechanism for control that they had lost for more than six years, and which was causing problems. This would make it possible to turn to a tribunal with jurisdiction in order to condemn situations affecting public health.

Without making any assumptions about the agency's future work, we hope that the attitude the agency showed in the Oakville case will govern its orders. We believe that the wording used in Bill C-26 in 2003 requiring railway companies to make the least possible noise was better than the wording used in the current bill. We believe that the current wording waters down the obligation of railway companies to operate their facilities in a way that respects their neighbours. On the contrary, we want section 29 to be reinforced by adding a clause stating that railway companies are not to harm public health in the course of their operations. We are concerned that the obligation of railway companies to refrain from making unreasonable noise is subject to operational requirements.

Operational requirements should not be allowed to preclude that obligation. It should therefore be made clear that what must be taken into account is the company's essential operational requirements not just any requirements. For example, operational profitability should not be used to relieve a railway company of its obligation to refrain from making noise.

Section 7 of Bill C-11establishes the framework for the mediation process the Canadian Transportation Agency has been using for several years. As a result of our experience in this area, we are very hopeful that the prescribed 60-day mediation period will be reduced to 30 days as proposed in Bill C-26. We believe that 30 days is enough time to try to voluntarily resolve a dispute provided the parties make the necessary effort. More than 18 months should not be allowed to pass between a request for mediation and an outcome as was the case in Charny.

In addition to expressing support for the amendments as indicated above, we would like to take this opportunity to suggest that Bill C-11 be amended to give the Canadian Transportation Agency jurisdiction over the use of train whistles. More specifically, we believe it would be appropriate for every request to prohibit the use of train whistles within municipal boundaries to be reviewed by the CTA in cases where the municipality, the railway company and Transport Canada cannot agree on the requirements for no-whistle regulations.

Furthermore, we support the request from the Union des municipalités du Québec made by its President Jean Perrault in his letter of July 6th, 2006, to the Honourable Lawrence Cannon, Minister of Transport of Canada, to establish tangible measures for ensuring the rigorous application of Rule 103(c) of the Canadian Rail Operating Rules, which states that “no part of a train or engine may be allowed to stand on any part of a public crossing at grade for a longer period than five minutes”, and to permit the application of Rule 103(c) of the Canada Rail Operating Rules to moving trains. In fact, vehicle and pedestrian traffic blocking a crossing for more than five minutes can lead to public safety problems, especially where the blockage prevents safety services such as firefighters police and ambulance vehicles from providing the required services.

The problem of noise, caused by railway operations is a fundamental priority for the City of Lévis. This situation is causing problems for more than 10,000 people in our area. A great deal of effort has been made in the past to restore the peace and quiet the neighbourhood so amply deserves. Unfortunately, our efforts have been in vain. That is why we support the federal government's desire to give Canadians a forum in which to assert their rights. However, we believe that the wording of section 29 of Bill C-11must be amended to ensure that the objective of the legislation is met.

Mr. Chairman and members of the committee, I want to thank you for your attention.

[François Picard, Second Vice-President of the Executive Committee, City of Quebec]

I am accompanied by Mr. André Demers, alderman for the Sainte-Foy sector, where there is a marshalling yard. Mr. Demers is also President of the Commission aménagement du territoire et transports.

I am also accompanied by Mr. Marc des Rivières, who is a professional director and expert on transportation for the City of Quebec.

First, the City of Quebec would like to thank the members of the House of Commons Standing Committee on Transport for the opportunity to present his comments on Bill C-11.

Thank you for listening to us. And of course, my presentation will be in French.

I will begin by talking about noise generated by railway operations, by addressing the legal framework as well as the overall approach that the City of Quebec is proposing. If time allows, although you already have our brief in hand, we will also discuss other nuisances or issues that could be improved in the bill.

First, I will talk about the legal framework with regard to noise generated by railway operations. In the short-term, the City of Quebec recommends that amendments be made to Bill C-11 as follows.

First, we recommend the reintroduction of the wording proposed in the former Bill C-26 so that railway companies are required to produce the least possible noise, replacing the wording of Bill C-11 which states the obligation "not to make unreasonable noise".

In other words, like the mayor of a municipality in British Columbia who spoke before us, we believe that the expression "unreasonable noise" is too vague and leads instead to confrontation with the railway companies. Consequently, we propose amending the wording which, although it is only two words, has vast implications for the City of Quebec.

Second, we recommend adding, in the new section 95.1 under Bill C-11, the following: "that noise levels caused by the railway operations shall not harm public safety or cause negative effects such as disrupted sleep for persons living in residential areas adjacent to switching yards or along railway lines".

Third, we recommend subjecting railway companies under federal jurisdiction to provincial and municipal laws and regulatory provisions concerning public nuisances and nocturnal noise in order to preserve the quality of life of populations living near railway facilities.

Another approach would be to reduce railway noise at the source. Even if the wording that companies make the least possible noise is reintroduced, we could require the companies to reduce noise sources by doing research and development on new technologies that would allow them to directly reduce the amount of noise caused by the cars.

Those are our recommendations with regard to the legal framework.

With regard to adopting a more comprehensive approach, the city proposes as part of a long-term strategy the adoption of a national railway noise reduction policy setting orientations, objectives and the most appropriate action strategies. This policy could be developed by Environment Canada, jointly with Health Canada, since it is part of a public health and noise pollution approach.

We could develop noise maps of areas where residents are subjected to excessive noise levels in order to gradually eliminate black spots. We could also give priority to reviewing the sites causing the greatest harm during the night, when thresholds exceed fixed limits.

We could also give priority to at-source noise reduction measures—such as those I mentioned earlier—by taking into account the three types of noise: rolling noise, locomotive and auxiliary equipment noise and switching noise.

Furthermore, various specific measures, some of which are presented in section 1.6.1, to reduce railway noise gradually through retrofits and better maintenance of rolling stock and railway lines, subject to available funds, could be taken.

A number of European countries have adopted regulations relating to decibel levels. It starts at 55 decibels, which corresponds with normal annoyance caused by noise, and goes up to 65 decibels which, according to the OECD, corresponds to constrained behaviour patterns, symptomatic of serious damage caused by noise. If you wish to take the idea of "least possible noise", you could adopt a targeted strategy in the hope that the noise from switching yards or trains will not exceed 55 to 65 decibels, during the day, when noise could reach as high as 65 decibels, or at night, when noise levels should not exceed 55 decibels.

So, a number of European countries have adopted similar regulations, which exceed what you are proposing, but which could prove interesting in the long-term, particularly if we opt for a comprehensive approach and a national railway noise reduction policy.

Other measures in our brief address other nuisances. Railway companies must be required to comply with local legislation and regulations on environmental protection and the protection of public health and safety, particularly with regard to odours and unhealthy conditions.

We propose that the bill require railway companies to put a communications plan in place aimed at resident populations concerning railway operations involving the transportation of hazardous goods.

With regard to, in particular, the obstruction of public crossings, there must be concrete measures requiring the strict application of paragraph 103(c) of the Canadian Railway Operation Regulations, so that no switching done at crossings can block road and pedestrian traffic for more than the five-minute maximum prescribed by those regulations.

Obviously, the City of Quebec is faced with one last nuisance related to train whistling. Section 11 of the Railway-Highway Crossing at Grade Regulations needs to be reviewed in terms of the allocation of cost for the construction and maintenance of new grade crossings, so that the benefits associated with railway facilities in urban areas can be equally shared by the railway company and the local government.

Currently, the municipality pays 100 per cent of the cost of changes made to grade crossings. We believe that at least 50 per cent of the cost of changes to grade crossings should be paid by the railway companies.

I have used my seven minutes. We are prepared to answer any questions you may have. Once again, I want to thank you for having taken the time to listen to us.

Business of the House

[Tom Lukiwski, Conservative, Parliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, today we will continue the debate on an opposition motion which gives the government an opportunity to talk about keeping its promise to review our programs to ensure every taxpayer dollar spent is well spent and by reducing the debt by $13.2 billion.

Tomorrow we will begin debate on Bill C-25 , proceeds of crime, followed by Bill C-26, payday lending.

Next week, we will continue with the business from Friday with the addition of Bill C-27, dangerous offenders, Bill S-2, hazardous materials, Bill C-6 aeronautics, and Bill C-28, a second act to implement certain provisions of the budget tabled in Parliament on May 2, 2006.

With respect to my hon. colleague's question on supply day, just like a child waiting for Christmas, he will have to wait a little bit longer. We will get back to him next week.

[Christian Jobin]

The Chaudière-Appalaches Regional Health and Social Services Board conducted a study on the Charny yard and noise zones at night. The noise is so intense that people cannot sleep. They wake up in the middle of the night. People have reported high stress levels. Amongst other things, there are reports of children who are not doing as well in school and senior whose stress levels have gone up, and who even have developed more serious illnesses due to stress. Some of my friends who live near the yard sleep in their basements at night and have to use ear plugs.

Bill C-11 will give the transportation agency the power to issue orders, but is the word “unreasonable ” strong enough to address all the situations I have just described? CN, CP and all the other railway companies will repeat what they did in 1999 when they took their case before the Federal Court in Ontario to challenge the very severe ruling the CTA had made against CN. That is what I fear.

[Christian Jobin]

I know full well that the Union des municipalités du Québec tabled a brief on Bill C-26 and that it said the same thing we are saying today. The brief asks that the CTA regain the power to issue orders. Bill C-26 referred to making “the less amount of noise possible”. For us, this wording is much stronger than the word “unreasonable”. We would like to re-emphasize the fact that quantitative rules, in terms of decibels, should be included to protect people's quality of life.

The Canadian Federation of Municipalities has also spoken on the issue. It would like the Canadian government to amend the Canada Transportation Act so that the CTA regains the power to issue orders. Indeed, negotiations held in Canada within the framework of a mediation process failed because CN and CP withdrew.

[Christian Jobin]

Since I have worked on bills C-26 and C-44, since CN went all the way to the Supreme Court to challenge the ruling of the Canadian Transportation Agency in 1999, and since I was involved in mediation which, after 18 months, bore no fruit, I can tell you that there still is not a level-playing field between citizens and the railway companies. The companies just don't want to make the appropriate changes. That is why we want this bill to be amended. I'm not saying it is specifically to protect citizens against the companies, but rather to protect them against the abuse of power which those companies exercise. I think that today they are not acting as good citizens and that is unfortunate.

Everyone knows that CN helped develop Canada. When the railway was built, CN contributed to the growth of Canada's major cities. We are in favour of the development of the railway sector, but we want there to be a harmonious relationship between citizens and this sector, as is the case in some European countries. That is why we are asking for wording referring to the health of people to be included in the bill, along with quantitative standards referring to the allowable noise level during the day and at night.

We agree with Mr. Ménard that the word “unreasonable” is too weak. This would allow the railway companies to claim, in the name of financial or operational criteria, that they cannot correct the situation. These standards exist in Europe. As for a national rail-noise-reduction policy, we would like it to be permanent and that it allow for remedial measures over time.

CN, as well as Canada, have grown over time, but the two events did not happen in a harmonious manner. The parties did not agree, and that's why we are here today. We have to deal with the fact that railways generate noise, but ignore municipal and provincial regulations.

If a citizen made the type of noise during one night which CN generates throughout the year, he or she would be immediately thrown in jail. What we want is to level the playing field. The changes we are asking for may seem radical, but for a long time, since 1998, we are in the same boat as the citizens. And that is why we are making this request.

[Christian Jobin]

I remind you that Bill C-26 provided for 30 days.

[Christian Jobin]

We feel that the word “unreasonable” is too weak. Bill C-26 was stronger because it said “the least noise possible”, which is much stronger than “unreasonable”, as far as semantics is concerned.

Why do we wish, as Mr. Gantous was saying, to incorporate health concepts that comply with the rules of the World Health Organization? We feel that the bill should include specific enough criteria so that the Canadian Transportation Agency would unequivocally have the power to implement the legislation, so that the railways could not invoke the excuse of operational requirements and could not very easily disobey the rules.

Unreasonable noise is a quantitative concept.. What we would like to see, is that the control factors be qualitative, or conversely, that we at least be able to record the noise, quantify it and say it exceeds the allowable daytime or night time decibel level. The railway company that goes beyond the limit would be obliged to find solutions and to report to the Canadian Transportation Agency within 30 days of the violation. That would be legislation with teeth.

The railway company can find solutions. We must not be afraid. In Europe, this is how it currently works. If there is anywhere that the railway sector is developed, it is in Europe. While we were dismantling our railways, Europe continued to develop its passenger and road transportation infrastructure.

Europe has much more stringent standards in this area than we do. European tracks are very smooth, whereas ours are still unequal, which produces shaking and noise. We suggest the creation of a railway noise reduction policy including mandatory annual outcomes drafted together with stakeholders from the railway companies, in order to find solutions and to ensure the harmonious coexistence of all stakeholders.

Criminal Code

[Vic Toews, Conservative, Minister of Justice and Attorney General of Canada]

moved for leave to introduce Bill C-26, An Act to amend the Criminal Code (criminal interest rate).

(Motions deemed adopted, bill read the first time and printed)