Bill C-26 (Historical)

An Act to amend the Criminal Code (auto theft and trafficking in property obtained by crime)

This enactment amends the Criminal Code to create offences in connection with the theft of a motor vehicle, the alteration, removal or obliteration of a vehicle identification number, the trafficking of property or proceeds obtained by crime and the possession of such property or proceeds for the purposes of trafficking, and to provide for an in rem prohibition of the importation or exportation of such property or proceeds.

The House resumed from May 5 consideration of the motion that Bill C-26, An Act to amend the Criminal Code (auto theft and trafficking in property obtained by crime), be read the second time and referred to a committee.

[Rob Nicholson, Conservative, Minister of Justice]

Thank you very much, Mr. Chairman, and thank you to all the members of the committee for all that you're doing in the justice committee. I know you've been busy and I know you'll continue to be busy. We have a very full agenda, as you know, and I--and I think all Canadians--appreciate all the work you're doing in this area.

I'm pleased to have the opportunity to answer any questions you may have with respect to the main estimates.

Mr. Chairman, as you know, we are fortunate to have in this country a remarkable legal heritage that is the basis of one of the finest justice systems in the world. The Department of Justice has the responsibility of supporting that system and working to make it as fair, accessible, and efficient as possible. This is a considerable task at any time, but even more so today, when we are faced with insecurity on a number of fronts.

You, of course, are aware of the global financial crisis that we are in. More recently we have seen the rise of fear over the possibility of another international threat, a pandemic in the form of the H1N1 flu virus. While neither of these is a justice issue as such, they both inevitably touch on a wide range of legal issues. More importantly, they can seriously undermine confidence in our institutions and our sense of order and security in general, which has implications for the government's priority of a safe, secure society for all Canadians.

These events serve as a reminder of a larger context of the world in which we live. I believe that with calm and consistent leadership, Canada will weather these and other storms to come with our values and our legal institutions intact, but it will require a realistic and serious commitment on our part.

The government is committed to acting responsibly.

The government has repeatedly emphasized its commitment to protecting Canadian families and communities across this country. The Department of Justice supports that commitment through its unique role as the government's legal adviser, which also includes its work in developing policy and, of course, drafting and reforming laws.

Mr. Chairman, over the last year, our government has continued to make progress toward the goal of promoting safer communities by tackling crime with all the resources at its command. In the year ahead, the Department of Justice will support these efforts as efficiently and effectively as possible, both on its own and in collaboration with other federal departments and agencies, but also with partners from the provinces and territories as well as non-governmental organizations. These are very important as well.

One recent example of these efforts took place just last week. The fourth annual National Victims of Crime Awareness Week brought together a wide range of people and organizations jointly working to ensure that victims of crime have a voice that is heard in this country and have greater access to services.

It's been two years now since our government appointed the first federal ombudsman for victims of crime. This ombudsman will continue to ensure that the needs and concerns of victims are met.

Victims of crime will continue to be a priority for this government and the Department of Justice throughout this year and beyond. The estimates include our commitment of $52 million over four years--starting April 1, 2007--for programs, services, and funding to help the federal government and provinces and territories respond to a variety of needs of victims of crime.

The progress we have seen in this area over the last few years is encouraging. I am proud of the role my department has played. The perspectives and stories of victims of crime provide invaluable insight and inspiration in our common effort to ensure that Canadian society remains safe and secure.

Another area in which the department is increasingly involved is the struggle against organized crime. This is a growing problem in Canada, one with wide-ranging effects on crime in general. It also has the potential to not only undermine public security and the rule of law but also to consume a vast amount of resources in the process, as is the case through prolonged investigations and mega-trials.

Although the burden of prosecution has largely passed from Justice to the Public Prosecution Service of Canada, as reflected in the estimates, my department still plays a major role--of course, notably on the legislative front.

In February we introduced new legislation to provide the justice system with the tools we need to fight street gangs and other forms of organized crime. The bill includes provisions to address such serious crimes as gang murders, drive-by shootings, and peace officer assault, as well as gang peace bonds. That bill, Bill C-14, passed third reading on April 24. It was introduced into the Senate on April 28. I understand that yesterday a Liberal senator spoke on this issue, and it has already been introduced by my colleague Senator Wallace.

I want to use this opportunity to thank you, Mr. Chair, and all the members of this committee for your diligent and expeditious examination of this piece of legislation. It's definitely a step in the right direction.

Around the same time, we also reintroduced a bill targeting serious drug crime in support of the national anti-drug strategy. The illegal drug trade is well known as a major source of income and influence for organized crime.

As I explained at the time, this bill was intended as a proportionate and measured response aimed at disrupting criminal enterprise by providing mandatory minimum prison terms for drug producers and dealers who threaten the safety of our communities and indeed threaten our way of life.

In particular, it provided for mandatory jail times for the importing and exporting of illegal drugs, and special penalties for offences carried out for organized crime or involving young people. The people who bring in illegal drugs to this country are a part of organized crime. I've heard that over and over again.

One cannot dispute that putting in prison a member of an organized crime group, particularly someone who is in a leadership role in the organization, disrupts or weakens the enterprise. I don't see how anybody can dispute that. A weakened organization cannot as effectively conduct their illegal business. I hope there will be agreement from everyone on that point.

More recently, just over two weeks ago, we introduced legislation to crack down on tackling property crime in general, particularly on the serious crime of auto theft. This has been identified as a primary activity for organized crime. I'm very pleased that Bill C-26 is expected to pass second reading today, and that too, of course, will be referred to this committee. I hope that you will deal with that piece of legislation in an expeditious manner as well, Mr. Chairman.

The bill is well supported, I have to tell you, particularly by, among others, the Insurance Bureau of Canada, which estimates that auto theft costs more than $1 billion a year, taking into account court costs and other legal expenses, as well as health care, policing, and so on. Once again, this legislation is built on the principle that the best way to fight gangs and organized crime is to disrupt the criminal enterprises they depend on.

I met recently with representatives of the Canadian Automobile Dealers Association. One dealer told me that one evening his padlocked fence was cut open, and a number of high-end vehicles, worth a total of more than $300,000, were stolen. When he notified the police the next day, they gave him the case number and told him to call his insurance company, as there was no way they would be able to locate and recover these vehicles. The vehicles would have been either shipped out of the country by then or dismantled or chopped up to be sold as parts.

As well as creating the separate offence of auto theft, the bill would provide for the application of customs powers to allow the Canada Border Services Agency to identify and prevent stolen property from leaving the country. This is a huge change, one that has to be made to give our border guards the ability to intercept this kind of activity.

Organized crime represents a serious problem, and no part of our society is immune to its effects. It's not going to be disappearing any time soon, but this government remains committed to addressing the impact of gangs and organized crime on families and communities.

We remain, of course, committed to a balanced approach to justice. Through legislative means, we are amending and updating the Criminal Code to ensure that this country has effective and proportionate sentences while also investing a significant amount in prevention strategies and programs.

Under the national anti-drug strategy, we have provided funds to the St. Mary's Counselling Service's High on Life Challenge program in Kitchener, Ontario.That's an example. We've given $400,000 to the Lethbridge, Alberta, school district for their Teaming up for Addiction Free Youth--the Watson project. We have supported B.C.'s Ooknakane Friendship Centre's youth health and wellness project; in Brandon, Manitoba, the Community Alcohol and Drug Education Coalition drug prevention mobilization plan; the La Ronge, Saskatchewan, Pre-Cam Community School drug awareness and prevention project; and in Moose Jaw, Saskatchewan, the YMCA Building Assets in Youth program. We've added $1 million to the support, treatment, education, and prevention program right here in Ottawa; and $327,000 to the Vermillion River region. Mr. Chair, these are the kinds of things we have to be investing in. We are giving $10 million for two new treatment initiatives in Vancouver.

I could go on with the list of prevention dollars spent by this government under the national anti-drug program prevention strategy, Mr. Chair. This is what we have to do to make sure there is a balanced approach--we recognize that--to assist individuals, particularly young people at risk.

In conclusion, I would like to mention that the Department of Justice as a central agency supports almost all the work of the government in some capacity, so the scope of its activities is considerable. The department is constantly interacting with the justice system and its many players, including the judiciary, other levels of government, professional associations, and a wide range of non-governmental organizations, from the community level to the national stage.

A good example of this work is the series of funding announcements under the justice partnership and innovation program announced April 7. The program, administered by the Department of Justice, supports activities that respond to the changing conditions affecting Canadian justice policy. These include the National Anti-Racism Council of Canada, the Law Courts Education Society of B.C., and the Canadian Criminal Justice Association's Canadian Congress on Criminal Justice.

In closing, Mr. Chairman, I would like to express to you and all the members of this Committee, my deep appreciation for the important work you are doing.

The Department of Justice is instrumental in the government's work of responding to the needs of Canadians. As you know, we will continue to bring forward that balanced approach that's necessary on all these issues, because this is what this country deserves.

Thank you.

Criminal Code

[Brent Rathgeber, Conservative, Edmonton—St. Albert, AB]

Mr. Speaker, I am encouraged by the member's comments indicating that he will be supporting Bill C-26.

I specifically would like to know if he is supportive of the minimum mandatory sentences that would impose a minimum jail sentence of six months incarceration for a third or subsequent offence. Does he think that will help in the fight against auto theft in cities such as Surrey, which he represents, where organized crime has been out of control for quite some time now?

[Jim Maloway, NDP, Elmwood—Transcona, MB]

Mr. Speaker, Bill C-26 is a very good bill and a bill that should be supported. However, the government should be concentrating on things that work rather than just public relations.

I want to point out that the former Filmon government in Manitoba back in the nineties brought in several measures that it thought were good at the time, such as the restitution measures and the denial of a driver's licence to young offenders. However, those measures did not work as auto theft rates at that time kept going up. It was not until the Manitoba government, two years ago, brought in a mandatory immobilizer program in cars, that auto theft rates dropped, which indicates that we are getting results.

We had a federal Liberal government in power for 15 years and all it had to do was mandate automatic immobilizer installation in the factory. The Insurance Bureau of Canada priced it out at around $30. The Liberals never did that. Had they--

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

Mr. Speaker, I would like to split my time with the hon. member for Winnipeg South Centre. Being one of my associates on the northwestern caucus, she has done tremendous work when it comes to being tough and smart on crime. I have to give her credit.

As I rise today to speak to Bill C-26, auto crime has been a major problem for my constituents in Newton—North Delta and my neighbours in Surrey for years. The city of Surrey has a terrible reputation for car theft, which has only become worse in recent years.

There have been a couple of versions of this bill drafted by the government. I hope that this one will get it right, but it is not quite there, from my perspective.

As far back as 2003, the numbers were bad. There were 8,105 vehicles reported stolen. Cars were often stolen for a short time to allow thieves to commit other crimes, such as robberies, drug dealing, break and enters, and dangerous driving, which has often resulted in fatal collisions or serious injuries.

Recently we have seen how car theft has become a major activity among the gangs, which hold such a terrible grip on our community. This is what makes auto theft so dangerous to the safety of our communities. Auto theft leads to other crimes, crimes that are associated with gang violence.

Yet outside my community, auto theft is a serious problem for all Canadians. Has the government given it a serious response this time around?

Though due attention has been given to criminal organization activity, it is too broadly based. As we all know, tougher action from Parliament is needed to hold criminals accountable.

The government's approach to tough crime legislation is less than adequate. Instead of moving forward with workable legislation, it would rather resort to blaming the opposition for its failure to move legislation forward.

The bill does target the altering or destroying of the vehicle identification number of a stolen car. But criminals often use guns to commit their crimes, and here the government still has done very little. The Conservatives have quietly put off regulations requiring the marking of imported firearms, a regulation that would help stop the flow of illegal firearms and gun crime.

The regulations were supposed to come into effect on December 1, 2007, but the government needlessly postponed this requirement until December 2009. We all know what happened then. No legislation was more important than proroguing Parliament in order to save the Prime Minister's skin.

Like so many other issues, a short-sighted political agenda has again driven counterproductive Conservative policies. Fortunately for the residents of my riding, the City of Surrey thinks further ahead. It believes that crime prevention strategies must be comprehensive and collaborative.

More than five years ago, the Surrey RCMP began a crime reduction initiative focusing on reducing auto theft and property crime. It identified and targeted prolific offenders. Two teams, the auto crime target team and the integrated municipal provincial auto crime team, were created to focus on a few offenders who were responsible for a large number of these crimes. Surrey partnered with the police, courts, corrections services, all levels of government, social service agencies and residential and business organizations. This work helped form the blueprint of the Surrey crime prevention strategy, which is still a pioneering document two years later.

The results speak volumes about this kind of approach. Auto theft decreased in Surrey by 38%, from 2003 to 2006. Furthermore, the program made 737 arrests. From surveillance operations held from April 2004 to December 2006, 100% of charges recommended to the crown were approved. They had an 87% remand success rate. That means that 95% of the cases resulted in guilty pleas.

Members of the auto crime and property crime target teams were proud to accept the 2007 Vehicle Theft Award of Merit, presented by the International Association of Chiefs of Police, in New Orleans, on October 16, 2007.

The bottom line is that in Surrey, collaboration and cooperation has been the key to successfully targeting auto theft.

What this government must take away from my community's example is the concept of partnership, which is often lost on that side of the House. The Conservatives have dropped the ball so many times in this regard that the police associations I recently spoke with have given up on a real dialogue.

That said, we need some legislation for auto theft, and passing this legislation will help. It will target the transfer of goods that have been acquired criminally and the possession of property known to be obtained through crime for the purpose of trafficking. This will help close the chop shops that sell stolen cars for parts. It will help to shut down the gangs that ship stolen cars abroad to be sold in the black market. This is very important.

However, a crime and punishment agenda that fails to include all levels of the community is limited in its effectiveness.

Closing legal loopholes is necessary, and that is why I am supporting the bill.

While policing and crime prevention still play a vital role, reducing crime requires the attention of everyone in the community. Sometimes success at the community level is about challenging our own way of thinking, and sometimes it is about challenging others, including our own citizens. That is why heavy-handed tactics of the government, including a lack of community consultation on most of its proposed legislation is a huge obstacle in the way of progress.

Before I conclude, I want to re-emphasize that tougher penalties for the type of chronic criminals who commit these crimes are vital to turning the tide. However, it is just as important that the federal government, and everyone in the House, becomes immersed at the community level. That is what I have tried to do, and that is what I will try to keep doing over the next years.

I am proud to say that my communities of Surrey and Delta were very early leaders on this file, but obviously more has to be done and done fast.

[Dona Cadman, Conservative, Surrey North, BC]

Mr. Speaker, I am honoured to speak in support of Bill C-26, An Act to amend the Criminal Code (auto theft and trafficking in property obtained by crime).

Over six years ago, my late husband, Chuck Cadman, introduced legislation to address VIN tampering, auto theft and property crime. I am very pleased and I know many of my constituents in Surrey North are too, to see that this government is listening to common sense and working to protect our property and our communities.

Auto theft and other forms of property crime plague Canadian communities and make our streets unsafe. To address this serious problem, Bill C-26 proposes to create a new offence of motor vehicle theft, a new offence to address tampering with an automobile vehicle identification number, and new offences to address trafficking in property obtained by crime.

Trafficking in property obtained by crime is the marketing chain that processes the fruits of theft in other crimes like fraud. One form of trafficking in property obtained by crime is the movement of stolen automobiles and their parts. This is where organized crime is the most involved in auto theft, either through chop shops that dismantle stolen cars for parts, the act of altering a car's VIN number to hide its identity, or the sophisticated international rings that smuggle stolen high-end luxury cars from Canada to far-flung locations in Africa, the Middle East and eastern Europe.

It is also important to note that organized car theft rings employ youth. In 2002, 40% of persons charged criminally for stealing a motor vehicle were between the ages of 12 and 17.

Transport Canada reports that organized vehicle theft groups recruit youth to steal cars in order to protect the upper levels of the theft ring. They rely on the legal system to be lenient with young offenders and when apprehended, these offenders are unable to identify other members of the ring because they work in isolation and are purposely not introduced to the other members of the organization.

Motor vehicle theft is an ideal recruitment tool for general involvement in organized criminal groups. Academic research shows that youth whose first offence is motor vehicle theft are most at risk of continuing on the criminal career path.

Section 354 of the Criminal Code, the general offence of possession of property obtained by crime, which carries a maximum of 10 years' imprisonment for property valued over $5,000, is the principal Criminal Code offence that is currently used to address trafficking in property obtained by crime. This possession offence does not adequately capture the full range of activities involved in trafficking.

The proposed offences would provide for a wide definition of trafficking that would include the selling, giving, transferring, transporting, importing, exporting, sending or delivering of goods, or offering to do any of the above, of property obtained by crime. As such, this new law would target all of the middlemen who move stolen property from the initial criminal act through to the ultimate consumer.

Both proposed offences have higher penalties than the existing offence of possession of property obtained by crime. If the value of the item trafficked exceeds $5,000, anyone convicted of this offence could face imprisonment of up to 14 years. If the value does not exceed $5,000, it would be what is known as a hybrid offence, and subject to imprisonment for up to five years on indictment, or up to six months on a summary conviction. This penalty would be consistent with the existing penalty scheme of the Criminal Code.

It is also worth noting that if any indictable offence is found to have been committed for the benefit of, at the direction of, or in association with a criminal organization, there is an additional offence that would also apply. It would be open to the prosecution to prove the additional element of a link to organized crime and obtain a separate conviction under section 467.12 of the Criminal Code. The maximum penalty for this offence is 14 years, which must be served consecutively to any other sentence for the crime in issue.

The proposed trafficking offences would also respond to the concerns of stakeholders, such as the Insurance Bureau of Canada, that have long advocated for stronger enforcement to prevent the export of stolen vehicles.

Under the Customs Act, in order for the Canada Border Services Agency to apply the administrative powers of the Customs Act to the cross-border movement of property obtained by crime, such goods must first be classified somewhere in federal law as a prohibited good for the purpose of importation or exportation. This bill would supply that classification provision.

Today, CBSA officers are only authorized to examine and detain goods entering or exiting Canada in order to determine whether or not the importation or exportation complies with federal legislation controlling the movement of goods across our borders. The CBSA mandate does not include a broad law enforcement role and its officers thus have limited authority to deal with the movement of stolen property. The express prohibition provision in this bill would allow CBSA officers to examine and detain stolen goods, which could ultimately result in the police laying criminal charges.

With this proposed amendment, CBSA officers could identify targets, conduct examinations and detain these goods. They could then search law enforcement databases to determine whether the goods had been reported as stolen and refer the case to the police in appropriate cases.

There is no offence in the Criminal Code that directly prohibits the alteration, obliteration or removal of a VIN. The proposed amendment would make it an offence to wholly or partially alter, obliterate or remove a VIN on a motor vehicle. Under the new amendments, anyone convicted of tampering with a VIN could face imprisonment for a term of up to five years on indictment, or six months, or a fine of not more than $5,000, or both, on a summary conviction.

In order to ensure that honest activities such as automobile body repair, recycling and wrecking are not captured by the offence, there is an express exemption provision in the offence that would exclude its application to legitimate motor vehicle repairs or maintenance.

A conviction for this offence would more clearly and accurately document a person's involvement in an organized vehicle theft ring as part of the person's criminal record. This, in turn, would help police and Crown prosecutors to deal appropriately with these people in subsequent investigations and prosecutions.

Finally, the creation of a distinct offence of motor vehicle theft will send a strong message to auto thieves that the criminal justice system is serious about reducing auto theft rates and putting offenders in jail.

The proposed offence has a mandatory minimum penalty of six months' imprisonment for a third offence. This is a proportionate and reasonable penalty for an extremely serious problem in Canada.

I believe that the government has brought forward a strong piece of legislation that will be of great assistance to law enforcement and prosecutors.

I would urge all members of this House to support Bill C-26 and to send it to committee for further consideration. Our communities need this legislation and they need it now.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, I do not know where the hon. member has been. We have had a number of budgets that have addressed specifically the issue of treatment.

When it comes to crime, we have some short-term challenges, we have some medium-term challenges and we have long-term challenges. Bill C-26 addresses specifically a short-term challenge, which is auto theft. The intent is to make our communities safer and protect the property of our citizens.

My colleague is quite incorrect to suggest that our government has done nothing to address the issue of treatment. In fact, in the 2007 budget, our Conservative government made $111 million available over five years to address drug treatment across Canada.

I would encourage the member to get his facts right before he gets up in the House and makes a statement that is entirely incorrect and does not reflect the facts.

[Mark Holland, Liberal, Ajax—Pickering, ON]

Mr. Speaker, I listened with interest to the member's speech.

I am supportive of Bill C-26 and it being tough on enforcement. I am concerned because in the member's speech I did not hear anything on the other side of the equation, which is that those criminals who are committing these property offences go to jail and eventually come out.

As the critic for public safety, I have talked to police chiefs and police officers across the nation. They are concerned about the government's complete lack of action on programming and dealing with problems like addiction. This is causing a huge problem.

Criminals are going into the prison system but they are not getting the treatment they need to deal with what often are addiction issues. Somewhere north of 60% of those incarcerated are facing addiction issues. They come out of jail and they repeat the offence. Why? Because they have to feed their addiction and that is how they get money.

The Calgary police force has introduced the notion of a safe jail, yet it is not getting support from the government so that those individuals can get the support and services they need to break the cycle of addiction.

The member talked about being tough on crime. Could he talk about how we could actually stop the victimization in the first place by addressing issues like addiction? Why were those not referred to in his speech?

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, I will be splitting my time with the member for Surrey North.

I am pleased to add my voice in support of Bill C-26, which would amend the Criminal Code to strengthen our ability to fight auto theft and the trafficking of property that is obtained by crime.

In last November's Speech from the Throne, our government promised a tough approach to serious crimes. Auto theft and other serious property crimes have been a high priority for our government since we were elected in 2006.

The bill before us would create a number of new offences to tackle the trafficking of property gained by crime and the tampering with a vehicle's identification number.

Stakeholders, such as law enforcement agencies, provincial governments, and even the residents of my riding, are deeply concerned about the impact of auto theft on their communities. They have called on our federal government to do something about this serious crime, and this legislation is our response.

While auto theft rates remain unacceptably high, there are a number of remarkable success stories in our fight against auto theft. Let me take a few moments to highlight some of these.

Police services in Winnipeg have developed comprehensive strategies that specifically target those youth who we know commit a significant portion of all auto thefts. The result has been that, in 2007, the Winnipeg Police Service recorded a 33% drop in the number of vehicle thefts.

In the Vancouver area, which I am familiar with, the police have had great success with their bait car program. This is a program that uses police-owned decoy vehicles, which when stolen can be monitored through surveillance and GPS tracking. In some cases, they even include video cameras to actually record the criminal driving off in the stolen car. Again, we have seen a significant decline in auto theft in many parts of our region, including my own riding of Abbotsford. I would be pleased to give members details of a YouTube site that highlights one of these successful bait car arrests.

Insurance companies have also done their part. As many of us know, they are providing financial incentives to those customers who install immobilizers or other anti-theft devices. Again, this initiative is having a marked impact on the number of vehicles being stolen in our communities.

I also want to give credit to the police. They are now using something called automatic licence plate recognition technology, which speeds up their identification of stolen cars as they are driving through the streets of our communities. They have been using that technology in Abbotsford as recently as February of this year.

While effective programming such as these success stories that I have recounted are a crucial aspect of any crime-reduction strategy, any such program must be founded upon strong laws that give law enforcement the necessary tools to fight auto theft and other property crimes.

The creation in Bill C-26 of a distinct offence of motor vehicle theft would send a strong message to would-be thieves that the criminal justice system is serious about fighting auto theft in Canada. Our proposed offence would be a hybrid offence with a maximum penalty of 10 years' imprisonment on indictment and 18 months' imprisonment on summary conviction. There would of course also be a mandatory minimum penalty of six months' imprisonment for a third and subsequent conviction, as members have already heard from some of the other parties in the House. This is a balanced and modern approach to a serious repeat offence. That is reflected in the fact that the opposition parties in the House are actually supporting the bill on auto theft.

While not all auto theft is linked to organized crime, criminal organizations play a very significant role in this type of criminal activity. Organized crime groups participate in auto theft in three principal ways. First, they operate so-called chop shops where stolen vehicles are disassembled and the parts are trafficked to mostly unsuspecting buyers.

A second area of activity involves the alteration, obliteration or destruction of the vehicle identification number, the VIN. The VIN is removed from a stolen car to mask the identity of the vehicle. All vehicles in Canada are required to have a VIN number in order to clearly distinguish them from other motor vehicles. Criminal car theft rings typically replace the VIN of a stolen vehicle with one from a legitimate vehicle of the same make and model, thereby altering the vehicle's identity.

The bill contains a new criminal offence of wholly or partially altering, obliterating or removing a VIN number on a motor vehicle. Anyone convicted of tampering with the VIN could face imprisonment for a term of up to five years on indictment or six months on summary conviction, and a fine of not more than $5,000.

The third way that organized crime groups participate is by actively engaging in stealing and exporting late model, and in some cases, high-end vehicles, particularly sport utility vehicles and luxury sedans. The movement of stolen property, especially automobiles, across Canada's international borders is a very profitable enterprise for organized crime.

Indeed, trafficking in property obtained by crime is the lynchpin that makes theft and other property crimes profitable. A complex criminal industry moves these goods from the initial theft to unsuspecting consumers, and in the process, the stolen property often moves through the hands of numerous criminal intermediaries, making tracing of the property and identification and conviction of the perpetrators that much more difficult.

In response, our bill attacks trafficking by creating two new offences. The first would cover the selling, giving, transporting, importing, exporting, sending or delivering of property obtained by crime. The second offence would cover simple possession for the purpose of trafficking. Police would be able to use these offences to specifically target the middlemen that I referred to earlier, who move stolen property through all the links in the chain of a criminal enterprise.

The proposed trafficking offences would carry serious penalties. Trafficking in property obtained by crime with a value over $5,000 would be a strict indictable offence with a maximum penalty of 14 years' imprisonment. Trafficking in property that is stolen that has a value of under $5,000 would be a hybrid offence with a penalty of up to five years' imprisonment on indictment and six months on summary conviction.

The penalty for simple possession of illegally obtained property is 10 years, and the proposed trafficking offence that the bill addresses would add an additional four years, for a total of 14 years maximum, to reflect the fact that trafficking is a more serious form of criminal activity than simple possession. This is certainly consistent with other 14-year maximum penalties that apply to serious property crimes, such as fraud over $5,000, and possession of counterfeit money.

I also want to stress that the proposed trafficking offences would apply to all illegally obtained property, not just to property obtained by theft. For example, property obtained by crimes such as fraud would also fall under these new penalties. The new offences would certainly cover the various crimes that comprise commercial auto theft, such as the operation of a chop shop and the exportation of stolen vehicles out of Canada.

Let me conclude. Bill C-26 again shows that our Conservative government is serious about fighting all kinds of crimes. Property crimes, especially auto theft, cause serious economic and social harm to Canadians. As a former victim of auto theft, I can speak from personal experience of the sense of violation that one feels when one's car is stolen and vandalized. Canadians will simply not tolerate this kind of activity anymore.

I ask my colleagues in the House to support Bill C-26 and pass it as quickly as possible. As chair of the Standing Committee on Justice and Human Rights, I will certainly do everything I can to expedite the bill's passage.

The House resumed consideration of the motion that Bill C-26, An Act to amend the Criminal Code (auto theft and trafficking in property obtained by crime), be read the second time and referred to a committee.

[Joe Comartin, NDP, Windsor—Tecumseh, ON]

Mr. Speaker, I rise today to speak to Bill C-26. It is important to set this in a timeline context.

For a good number of years, somewhere between 7 and 10 years, it has been quite apparent that we have a major problem with regard to car thefts. At one point, we almost had a competition, on an annual basis, as to which city would be the car theft capital of the country. This is not something about which we did not know. It is not something about which the previous Liberal government did not know. It is certainly not something about which the current government did not know.

I will make some comments on why the government has not addressed this problem. It is true not only about these amendments to the code, but a good number of others as well. The strategy and tactic of the government calls for criticism.

First I will deal with this bill and why it has taken so long to get here. The bill had a predecessor in the last Parliament, which was tabled for first reading in April of 2008. Coincidentally, at that point, the Conservative Party and the Conservative chair of the justice committee was using one of their tactics in the justice committee, which was also used in at least in three or four other committees, of destroying the functionality of that committee.

His initial stance with regard to the issue was one that I supported. However, once it was obvious the majority of the committee would overrule him on that, he refused to allow the committee to function. Therefore, from April of 2008 until after the election, the committee did not meet. It did absolutely nothing. The predecessor to this bill, which was Bill C-53 in the last Parliament, simply sat with nothing happening on it, as did all the other work of the justice committee on all the other justice and crime bills.

There was not only this role by the Conservative chair of the committee, but then the election intervened. I am sure there was no consideration given to the bill or any other crime bills at the time when the Prime Minister decided to have an election. We had the election, we came back to work and in December the Prime Minister decided to prorogue, again I am sure without consideration to the reality of the need for legislation in a number of areas in the Criminal Code.

We finally saw the first crime bill in February of 2009. The justice committee did not get to consider a crime bill for a whole year, from April 2008 until April 2009. That was the first government bill it had any opportunity to deal with all because of the conduct of the government.

In addition to that, in terms of specific events, the government has been absolutely determined to use crime and crime issues for partisan political purposes. From the very time the Conservatives were elected, and we can maybe argue that the tactic and strategy existed even before they were elected, they would take an individual issue and introduce a bill that would have a very narrow scope and few clauses to it to deal with the issue. The Minister of Justice would have a press conference, issue press releases and create news stories around the fact that they were addressing an issue.

Then a week or two later, the Conservatives would choose another issue as opposed to doing what they should have done, which was to address all the issues of which the government and Parliament were aware. In a large number of cases, they had all party support. In spite of that all party support, they continued with this strategy, and have continued with it right up to today.

It is a strategy that I think more and more people are recognizing for its lack of credibility, if the government is really serious about getting tough on crime as opposed to being smart on crime, which it does not seem to be capable of doing.

Last week the justice committee was in Vancouver. One of the tactics of the Conservatives when they asked questions of the witnesses was to tell them what they had done. They would list the bills and then ask the witnesses if they agreed with them. Their specific tactic was to address each issue separately. In fact, I think that specific question was put to the mayor of Surrey. He responded by saying he did not agree with them. He said that a lot of issues needed to be addressed. He was speaking from a community that had been particularly hard hit by crime in the last few months. He said there was no time to wait for the government to address them one at a time.

That is the point I have been making repeatedly for the last several years, as I have watched the government turn crime and crime issues to its partisan advantage as much as it can.

We need a major revamp of the Criminal Code. This is my version of what the 2009 Criminal Code should be. I believe at least a third to a half of it could be done away with and accommodated into fewer and clearer sections, sections that would be easier for our police, our prosecutors and our judges to enforce.

The best way of doing that review of the code and bringing it up into the 21st century would have been to commission the Law Commission to conduct a review, prepare a white paper on it and get a whole new Criminal Code that would be much shorter, much clearer and much simpler to enforce. What did the government do? It did away with the Law Commission, by refusing to fund it any more. That was two budgets ago. We are now faced with this.

Now we come to this bill and to the issue of auto theft. It should have been addressed by the Liberals when they were in power a good number of years ago. It should have obviously been addressed, as well, by the current government. It should have been dealt with effectively by including it into several omnibus bills, which could have been brought forward much more efficiently.

I want to make one more point about not using small omnibus bills. I am talking about addressing five to ten issues all at once. When we follow the strategy and tactics of the government, we need to have hearings on each one of the bills. We have to call witnesses, oftentimes witnesses who would address each one of these sections if they were in an omnibus bill. Now they have to come back repeatedly. Our justice department officials have to spend all this extra time in hearings, watching each bill go through. They are there to assist in that regard. The strategy the government is employing is a great waste of time, energy and resources. It is not fair to the witnesses and it is certainly not fair to the Canadian public.

When we deal with this specific bill and the issue of auto theft, we need to look at the effect it will have. I want to be very clear that we are supportive of creating the new offence. We are supportive of creating an offence that would make tampering with the VIN number a crime. This issue was around at the time I was in law school in the late 1960s and early 1970s. It has taken us all this time to finally deal with it.

We are dealing with, as well, introducing a new section on the whole concept of trafficking in stolen goods. It was not in the bill of last April. I have some problems with this. It is a concept, outside of trafficking in drugs, that is fairly new. We have to be very careful as to whether it will survive, not so much a charter challenge, but a challenge as to whether the offence is clear enough and the risk that it could be struck down for that. I have some difficulty with the way the section has been drafted. We will have to take a very close look at it.

I want to echo some of the comments of my colleague from Elmwood—Transcona on what the Manitoba government has done. We heard this from members of a delegation in Ottawa last year. They probably would have been at one point in front of the justice committee, but the committee was not sitting due to the tactics of the Conservatives on the committee.

They told all the caucuses what they needed with regard to fighting auto theft. They also told us what they had done. It has been the most effective tactic in the country. My colleague said that there was one day last week where there was not one auto theft in all Manitoba. Two years ago Winnipeg was the auto theft capital of the country. There were literally as many as 50 to 100 thefts of cars on a daily basis in that city.

The statistics my colleagues from all parties are using with regard to auto theft are somewhat dated. Members are using figures from 2006 and 2007. If we look at 2008, and I believe even more so what we see at the end of 2008 and 2009, cities like Winnipeg and Vancouver have moved dramatically to reduce the amount of auto theft. They have not done this with legislation, and I am not taking away the need for the legislation. In the case of Vancouver it has used practical police tactics. In the case of Manitoba, the provincial government has used its public auto insurance to, in effect, force people to put an anti-theft immobilizing device on their car for free, if they want auto insurance. This issue came up, but I cannot remember in what other context.

Representatives of the Insurance Bureau of Canada officials were in front of the committee at one point in the last year. I asked if they proposed their private sector companies do the same thing. They said, no, that they believed in freedom of choice. In spite of this, as we heard from my colleague from Moncton—Riverview—Dieppe, IBC has a brief which shows the amount that auto theft costs it.

One thing the government should do is urge provincial governments, which have public insurance plans, to follow the model in Manitoba. It has literally cut auto theft by over 60% in a little over a year. That is an effective tool.

Today the chair of the justice committee spoke about Vancouver and its use of bait cars. I remember seeing one of the examples on national TV. I watched an individual being recorded, taped, all of it, not realizing he was in a bait car. The individual was subsequently apprehended, charged and convicted.

We could use those kinds of techniques, and the federal government should urge the provinces to do so. Their responsibility is enforcement.

Finally, from a practical standpoint, the government needs to comply with its promise that it will put more police on the streets. The use of the bait car, for instance, would be much more effective in Vancouver if there were more police officers there. When we were there last week, it was again confirmed that it had the lowest proportion of police officers to the general population of any major city in the country. In spite of the protestations of innocence and compliance by the government that it would put those extra 2,500 officers on the streets of this country, it has hardly met any of that.

With regard to the specifics, we agree that making auto theft a specific separate offence makes sense. It will make it easier for us to get convictions.

However, I do not want to mislead the Canadian public, as opposed to Manitoba driving down by almost two-thirds its auto theft because of its tactics around auto insurance. The figure we saw was as much as 47% of auto thefts reduced in Vancouver over the last two years from its peak, where it is now.

This section will not reduce auto theft to any significant degree. I would accord it a one to three percentile potential of reducing auto theft. We still need it because it will make it easier for our police and prosecutors to get convictions in very specific types of cases.

The need for the VIN number is a section that is really important because it targets members of organized crime. They are the ones that change the VIN numbers. They take it off if they can or in some other way alter it, and oftentimes ship the vehicle out of the country. It is very important that section gets passed.

I have made comments on the trafficking. It makes sense for us to be doing that. I am just not sure this section will accomplish it.

I do want to make one concern public at this point. The government is imposing additional responsibilities for enforcement of both export and import of stolen vehicles and stolen auto parts on the Canada Border Services Agency. There has been nothing in what the minister said when the government made the bill public in that usual press conference it always has. There was nothing about providing additional financial resources to our Border Services Agency.

Living on the border-crossing that is the busiest in the country, border officers are way over-taxed already in trying to deal with the trafficking of people, the trafficking in guns and the trafficking in drugs. That is true of our Border Services Agency at just about every crossing in this country. Unless additional financial resources and additional staff are put into it, this part of the section will be ineffective because there is no way they will be able to enforce it.

Finally, we have the concern that the Bloc has, and I want to address a couple of points to that, particularly the introduction of a mandatory minimum here after a third conviction for auto theft.

I want to be very clear that there are other sections of the bill that are clearly going after the organized crime sector, which has been estimated to be anywhere from 20% to 40% of all stolen vehicles in the country. They tend to be the high end ones, but not always.

We have to understand the way the system works. The organized crime members do not steal the cars themselves. They find people, usually young people, to do that. This section will be used primarily against young people, oftentimes people who have already been in conflict with the law in other ways, have other convictions, and oftentimes are abusers of drugs and alcohol.

In terms of what we should be doing to make these amendments most effective in reducing auto theft in this country is to be targeting organized crime. As I have said, I give the government full credit for doing that belatedly because it has taken it so long, but a good number of these sections are directed right at that. This one is not. This one will not get anybody who is a real senior member or even a mid-level member of an organized crime gang. It will be hitting those young people who are picked up, oftentimes from other sources and used specifically for this purpose. That is all it will be for.

Generally, mandatory minimums do not work and this will be another one of those cases where it will have no impact at all.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, we are supporting getting Bill C-26 to committee so we can fix some of the many problems. Whenever the Conservatives bring forward justice legislation, they always seem to have things that need to be improved.

I need to ask the hon. member how he feels about the hypocrisy of the Conservatives' one-note approach to justice. We have seen broken promises around police officers, cutbacks in crime prevention programs, and cutbacks in prosecutors across the country. The courts are more and more stuffed up.

Conservatives essentially put forward more legislation when they deal with any justice issues, but they will not do anything else to help the police forces across this country actually deal with issues of crime. They will not put any money into crime prevention. They cut back on prosecutors so the court system simply cannot contend with what is being brought forward.

Given the Conservatives' hypocrisy on crime, does the hon. member really think the Conservatives are credible on this issue?

[Réal Ménard, Bloc, Hochelaga, QC]

I would like to appeal to my neo-Bolshevik colleagues and friends in the NDP for some quiet, and for some recognition of the fact that the Bloc Québécois is a very wise party.

I even feel that if the Speaker were to ask for the House's consent on that, he would almost get it.

With that said, let me continue by telling this House that, if clause 5 of this bill is passed, it will amend the section on the possession of property obtained by crime. More specifically, it will create a new offence, trafficking in property obtained by crime. That offence will be punishable by a maximum sentence of 14 years. I repeat that the Bloc Québécois never sees a problem with maximum sentences in a bill. Maximum sentences, after all, do not tie judges' hands; they allow judicial discretion to be used, because justice must always be tailored to each individual. Each crime, each offender and each circumstance in which crimes have been committed must be considered. Each aspect must be analyzed on its own merits by a court of law.

Clause 5 of this bill will also define trafficking. “To traffic” is defined as to sell, give, transfer, transport, export from Canada, import into Canada, send, deliver or deal with in any other way, or offer to do any of those acts.

I think the parliamentary secretary explained one of the difficulties that are cropping up at this time. Customs officers sometimes see that material has been imported, or is about to be exported, that would make it possible to rebuild a vehicle. But if these components do not appear on lists of prohibited items, it is impossible for the customs officers who guard our borders to intervene. Clearly this is not a desirable situation and the definition of “trafficking” which we are proposing will allow this situation to be rectified.

Moreover, clause 3 of the bill amends section 353 of the Criminal Code and will create a new offence. In addition to the offence of trafficking in property obtained by crime, an offence specific to tampering with vehicle identification numbers will be created. In Canada, all vehicles must have an identification number, and clearly when a car is stolen, thieves will attempt to alter or falsify that identification number.

If the bill is passed, we will amend section 353.1(1) of the Criminal Code. This new type of offence will specify that: “Every person commits an offence who, without lawful excuse, wholly or partially alters, removes or obliterates a vehicle identification number on a motor vehicle.”

In this bill, the defence of having a lawful excuse will be permitted. We understand that the fact of altering, removing or obliterating a vehicle identification number while performing normal maintenance work should not lead—and my colleague agrees—to charges being laid under the new offence to be created.

Bill C-26 also introduces a mechanism which includes a minimum mandatory sentence. This is a provision of the bill which the Bloc Québécois is going to attempt to amend in committee. This new provision is clause 331.1, wherein a person who commits automobile theft and is convicted for the third time on proceedings by way of indictment will be sentenced to a minimum punishment of imprisonment for a term of six months. The Bloc does not agree with this provision of the bill. This is not as serious or as worrisome as other bills the Conservative government has tabled. This minimum sentence will be tempered by the fact that crown prosecutors will have the choice of laying charges by way of indictment. After three indictments, the minimum sentence will apply. However, motor vehicle theft may also be dealt with through summary conviction.

This provision means that the Bloc Québécois in its great wisdom and sense of nuances, and its extremely nuanced vision of justice—a perception of fine distinctions which its spokesperson totally and completely shares—considers that this provision tempers our position with regard to the bill. Since there are no hard core mandatory minimum sentences such as we are used to seeing from the Conservative Party in other bills, we will be able to propose an amendment to the bill and offer our support to the government for Bill C-26.

An explanation is in order. Why is the Bloc Québécois against mandatory minimum sentences? This is a position all of my colleagues, the party's critics and my predecessors in the area of justice have perpetuated. First, there is no correlation between the existence of mandatory minimum sentences and the recidivism rate and crime rates. Rather, the opposite is true: several studies looking at the American model which the Conservative government holds in high esteem have proved that, for instance, where drug trafficking is concerned, mandatory minimum sentences have not caused a decrease in recidivism rates and drug consumption. On the contrary, as my colleague from Jeanne-Le Ber said, a man who always has a sense of fine distinctions and is not given to excess, and is thus a man who is capable of assessing the true worth of a bill, we are against mandatory minimum sentences because there is no link between such sentences, recidivism and crime rates, and also because they can have an adverse effect on the system. I invite the Minister of Foreign Affairs to ponder that.

When a crown attorney has a choice between laying charges that entail mandatory minimum sentences and charges that do not entail mandatory minimum sentences, it has been proven scientifically that the prosecutor will chose to lay charges that do not entail those sentences.

The Standing Committee on Justice and Human Rights is a great committee, one of the best committees a parliamentarian can ever sit on. Yesterday at this committee we heard the testimony of a retired judge, Mr. Jerome Paradis. He came to explain the perverse effect of mandatory minimum sentences and it will be my pleasure to circulate that brief to journalists and to my Conservative colleagues. This is not an opinion held only by the Bloc Québécois, the member for Hochelaga or the member for Jeanne-Le Ber. The opinion comes from a former judge, a magistrate, who administered justice and presided over lawsuits; he came before the Standing Committee on Justice and Human Rights to remind us of the perverse effects of mandatory minimum sentences. That is the reason the Bloc Québécois, from its inception, has always been opposed to mandatory minimum sentences. As everyone knows, the Bloc Québécois is the primary political force in Quebec and will remain so, we hope. We will certainly work very hard to keep it that way.

We might think that car theft is a phenomenon that affects mainly luxury vehicles. That would be wrong. I have here a list of the top 10 stolen cars in Canada in 2006. I would appreciate it if no one commented on the merits of each model, since everyone has their own opinion. The most stolen car model on that list is the 1999 Honda Civic two-door. It is followed by the 2000 Honda Civic. The third most stolen car is the little four-door all-wheel drive Subaru. There are in fact takers on the market. In fifth place is the 1999 Acura. The sixth model is the 1994 Dodge Grand Caravan/Voyager. The seventh most stolen model is the 1994 Dodge/Plymouth Caravan. In eighth place we have the Acura Integra. Ninth place is held by a little Audi. And tenth on the list of most stolen cars is the 1994 Dodge/Plymouth Shadow.

These are not necessarily luxury vehicles, but again, the consequences of car theft are easy to understand when you live in a remote community, when you live in the regions and when you depend on it.

I am a member from Montreal, myself. In my riding there are nine metro stations. I can go anywhere in my riding by metro. But I entirely grasp the consequences of these car thefts in communities where there is no public transit.

I would like to point out that there are two kinds of car theft. There is the organized crime kind. In fact, two weeks ago, I presented a motion myself at the Standing Committee on Justice and Human Rights concerning organized crime. We have to be constantly on the lookout for ways to update the Criminal Code and give our police services more effective tools to combat organized crime. I would reiterate that mandatory minimum sentences are not the way to do that.

When I was elected to the House in 1993 I was 31 years old. Obviously, everyone ages in this House. It was explained to me that organized crime was proliferating when we lived in a society where there was a wealth index, where there were communications channels and where there were ways of using stalling tactics in the courts that were authorized by our legislative bodies.

I would like everyone to know that we will be supporting this bill, but that we are going to be making amendments in relation to the mandatory minimum sentences.

I will be pleased to answer any questions my NDP colleagues would like to ask.

[Réal Ménard, Bloc, Hochelaga, QC]

Mr. Speaker, thank you for the opportunity to speak, and I want to thank the hon. members for listening.

From the outset, I would like to say that the Bloc Québécois will support this bill. Of course, we will take our work seriously during committee meetings, and we will propose amendments. However, we recognize, and have for a few years now, that car theft and the cross-border trafficking of parts used to build cars are an important issue.

When discussing the issue of car theft, we must keep in mind that there are two levels to this. The first is organized crime. One in five cars stolen in Canada is linked to organized crime networks. I have been a member of this House for 16 years now. Despite the fact that I look very young, this is my sixth election campaign. I have been a member of this House for 16 years. I have always been interested in the issue of organized crime, which is now in its fourth generation. Organized criminals are operating in new ways. There is the whole issue of organized crime infiltrating into the above-ground economy. For a long time, the main products in the organized crime line up were drugs, illegal betting and gambling, and the control of certain licensed establishments. But, in the past few years, we have seen organized crime infiltrate into the above-ground economy, including, unfortunately, the construction industry. Members of the RCMP appeared before the committee to name a few of the industries where organized crime was more likely to take hold. They talked about the automobile industry, the landscaping industry and the construction industry. I am not trying to imply that the entire construction industry has fallen prey to organized crime. It is, however, one of the more vulnerable industries. Why? Because there is the possibility of overbilling. There are a lot of contracts out there, and a lot of money is changing hands. The issue of car theft is clearly tied to the issue of organized crime infiltrating into the above-ground economy.

There is also a second level, car theft. These are groups of young people who steal cars for the weekend and commit petty theft. They want to joyride and to have a good time and they cannot really be lumped in with organized crime. In either case, it is, of course, extremely distressing and causes a great deal of inconvenience for the victim. It also has an impact on the way society works.

To give an idea of the extent of this phenomenon, I can say this. In Canada in 2006—quite recently, that is—about 160,000 vehicles were stolen. According to the Groupement des assureurs automobiles, there were more than 38,000 vehicle thefts in Quebec in 2006. That is a significant number. Quebec is not the leading province for vehicle thefts. By comparison, per 100,000 inhabitants, Quebec has 507, Alberta has 725 and Manitoba has 1,376. The average across Canada is 487.

Let me repeat, 38,800 vehicles were stolen in Quebec in 2006. Quebec is not in the lead when it comes to vehicle theft. In Alberta, for example, there are 725 thefts per 100,000 inhabitants, In Manitoba, it is 1,376 per 100,000. I heard the testimony from the mayor of Winnipeg when we began hearings on Bill C-53 in the last Parliament. I know that it an extremely serious problem in Manitoba.

BillC-26 is not perfect because it contains mandatory minimum sentences. I will come back to that. Everyone recognizes that the Bloc Québécois is an extremely thorough and consistent party in the positions it takes. Each time that mandatory minimum sentences appear in a bill, we express our reservations and we try to amend the bill by working at the committee stage to have the mandatory minimum sentences removed. I will talk about that later.

But all in all, this is a good bill and the Bloc Québécois, in its legendary wisdom, will support it because, once more, we recognize that this is a major problem all across Canada.

Clause 5—

[Brent Rathgeber, Conservative, Edmonton—St. Albert, AB]

Mr. Speaker, I also have the pleasure of serving on the justice committee with the member and I thank him for all his work, insight and experience as a former practising barrister and solicitor.

In his comments, he indicated that he thought Bill C-26 was a good bill but he called it imperfect. I am curious as to how he might improve it and what his thoughts are on the sentencing provision that provides for a sentence of a minimum of six months incarceration following the third or subsequent offence. Has he thought perhaps that is too lenient and that maybe we might want to think of mandatory incarceration on a second offence?