Bill S-4 (Historical)

Safer Railways Act

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

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

Rail Transportation

[Jeff Watson, Conservative, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, let me begin by thanking the hon. member opposite for her intervention in this proceeding tonight.

As was noted, there have been a number of actions taken by this government with respect to rail safety. I have been on the transport committee since 2007, prior to my appointment as a parliamentary secretary last year, and a number of important safety remedies have been undertaken.

I recall back then that an independent rail advisory panel was struck to make recommendations to the minister and the government at the time. A number of those recommendations, in fact almost all of them, have been fully implemented.

The Standing Committee on Transport, Infrastructure and Communities did an important review as well, and many of its recommendations were put into place.

Bill S-4 came forward with a number of important amendments, among them, everything from mandating that a company executive be appointed specifically for safety at the company, the requirement for environmental management plans, and whistle-blower protection. A number of important measures came out of that as well.

A number of important steps have been taken in light of Lac-Mégantic as well, and important new directives from the minister regarding the proper testing and classification of dangerous goods.

An important consultation took place between the Canadian Association of Fire Chiefs and the Federation of Canadian Municipalities that resulted in an important information-sharing protocol that establishes a registry of designated first responders in communities, who will be contacted with respect to historic information about the types of shipments that will be passing through communities, and the additional requirement that if there is any market change in that regard, that there would be a more immediate notification to the people on that registry of what is passing through their community.

That was important obviously for the ability of first responders and communities across the country to begin planning what resources they need for what typically would come through their communities, and what types of exercises they need to do in modelling response.

A number of additional consultations resulted in directions as well. The requirement now is for environmental response action plans for very flammable, dangerous goods, things like aviation fuel, ethanol, crude—things that were not there before, and a task force that would come, bringing together first responders and municipal officials to talk about that response and how we do that.

As the member alluded, important steps were taken on DOT-111s, the immediate banning of the worst offenders and the phase-out of retrofit over three years for the remaining ones.

I should also note that the Standing Committee on Transport, Infrastructure and Communities has also been asked by the minister to look into a number of additional measures in all modes. The rail aspect of that will be wrapping up in about another two weeks and interim findings will be coming in a report on that particular segment.

There has been testimony regarding positive train control, which is a broad term for a number of different possible automatic braking features that could be done. The question of advance notification has been raised in the questioning, and the committee has not come to a decision on that or a recommendation to the minister, but I invite the member opposite to stay tuned to what the committee is doing in terms of its important work.

Fair Rail Freight Service Act

[Matthew Dubé, NDP, Chambly—Borduas, QC]

With “on the right track”, I will assume no pun was intended there

I agree with some of the points made by my colleague. I thank him for the question. This is a network and that is why we would like to see, as we are in fact proposing, a Canada-wide strategy that would enable us to make the appropriate investments at all levels, because what he said is entirely true.

The reason why the railway has a positive impact for farmers in my riding is precisely because the service goes to Windsor and farther beyond. That is a fact.

In terms of the fact that CN and CP are private enterprises, that is a difficult question. We agree on that, but when we consider the fact that the infrastructure was built by people from our region and elsewhere and that a lot of money has been invested in it, and also the government’s responsibility to ensure that we have a proper rail network, there is good reason for more dialogue between the government and CN and CP.

With this bill, certain obligations will be instituted, but this is the kind of dialogue that will happen more often. I realize that it is never easy to deal with that reality.

Lastly, with respect to Bill S-4 on railway safety, there were many points on which the parties agreed. I venture to hope this is an indication that we will be able to get along better, because it can only be a positive thing for my region if we continue to do that. I venture to hope.

[The Acting Speaker, Barry Devolin]

I have the honour to inform the House that a communication has been received as follows:

The Secretary to the Governor General and Herald Chancellor

May 17, 2012

Mr. Speaker,

I have the honour to inform you that the Right Honourable David Johnston, Governor General of Canada, signified royal assent by written declaration to the bill listed in the Schedule to this letter on the 17th day of May, 2012, at 9:30 a.m.

Yours sincerely,

Stephen Wallace

The schedule indicates that the bills assented to on Thursday, May 17, 2012, were Bill S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act—Chapter 7, and Bill S-1003, An Act to authorize Industrial Alliance Pacific Insurance and Financial Services Inc. to apply to be continued as a body corporate under the laws of Quebec.

Rail Safety Week

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Mr. Speaker, one of the few legitimate roles of government is the protection of the individual and the preservation of safety and security. That is why it is important for us to celebrate Rail Safety Week.

Since 2007, our government has increased rail safety inspectors, has increased investments in new security technology, provided a partnership with our industry partners and made 2,000 presentations to raise awareness about safety and security around the tracks. The results are clear: a 23% reduction in accidents and a 26% reduction in derailments since 2007.

Furthermore, the House, in the spirit of unanimity, has come together to pass Bill S-4, which would amend and improve the Railway Safety Act.

I congratulate all members, and in particular the Minister of Transportation, for moving forward with these strong improvements to continue to preserve the safety and security of our people around the tracks.

Business of the House

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

Mr. Speaker, I want to begin by welcoming the new House leader for the official opposition. I look forward to working with him. I anticipate a positive and constructive approach.

In terms of his question relating to the issue of the motion of the House dealing with the Chief Electoral Officer and concerns about whether the statute in place was appropriate for him to do his job, I believe that motion had an expectation of about half a year before the government was to respond. I anticipate we will fulfill that.

On his question about the budget, the government introduced Bill C-38, the jobs, growth and long-term prosperity act. The bill implements key measures from economic action plan 2012. Our plan is working, as we have already created nearly 700,000 net new jobs since the recession. Most of these are full-time jobs.

Canadians want to see a productive, hard-working and orderly Parliament, focusing on their priority, the economy. Thus we hope to have the bill come to a vote on May 14. That target will allow members to study the bill, which implements important measures from the budget that Parliament has already approved.

As hon. members are aware, May 2 will mark the one-year anniversary of Canadians electing a strong, stable, national, Conservative majority government, and it is only fitting that on this one-year anniversary, after members and caucuses have had close to a week to study the bill, we will debate our government's plan to continue creating jobs and economic growth in Canada. We will continue debate on Bill C-38, the jobs, growth and long-term prosperity act, on Thursday, May 3, and Friday, May 4.

During the budget bill study week, before that debate starts, we will cover other business.

This afternoon we will complete debate on the NDP opposition motion.

Tomorrow we will start debate on Bill C-36, the protecting Canada's seniors act, which addresses the great concern of elder abuse. This bill is part of our government's efforts to stand up for victims. This is the end of what has been an important national victims of crime awareness week, where we saw the Prime Minister make an announcement of increased support for families of missing children. We also saw the introduction of Bill C-37, the increasing offenders' accountability for victims act, which follows through on our campaign commitment to double the victim surcharge that convicted criminals pay.

Monday, April 30, will be the second allotted day. In this case, I understand we will debate a Liberal motion. I would invite the hon. member for Westmount—Ville-Marie to share with all members—and, indeed, with Canadians—what we will be debating that day, so that hon. members can prepare.

On Tuesday, we will finish third reading debate on Bill C-26, the citizen's arrest and self-defence act. Based on my discussions with the new opposition House leader, I am confident that we will complete that debate early in the morning.

Then we will move on to Bill S-4, the safer railways act, which was reported back from committee yesterday. Given the importance of improving the safety of our railways, I hope this bill is able to pass swiftly.

Since I anticipate a productive day on Tuesday, I will then call Bill C-36, but only in the event that we do not finish earlier--that is, tomorrow--followed by Bill C-15, the strengthening military justice in the defence of Canada act, a piece of legislation that has now been around for three Parliaments and should get to committee where it can again be studied.

Transport, Infrastructure and Communities

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, I am honoured to present, in both official languages, the third report of the Standing Committee on Transport, Infrastructure and Communities regarding Bill S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act.

The committee has studied the bill and has decided to report the bill back to the House without amendment.

Business of the House

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mr. Speaker, with the encouragement and support of the opposition House leader, I will continue to try to engage all the House leaders and other parties in an effort to work on consensus approaches as to scheduling matters. I will make the observation that for a dance to work everyone has to be dancing. Therefore, I will continue to make my best efforts.

This afternoon, we will continue debating the opposition day motion from the hon. member for Hamilton Centre.

Tomorrow we will conclude debate on the amendments coming from the other place, on Bill C-10, the safe streets and communities act. We will have our final vote on this important legislation on Monday night. Bill C-10 will pass a number of important proposals that our government has put forward over the last five years that stand up for victims and for making our communities safer. I might add that Monday will be the 94th sitting day of the House, which means our government will have easily met our election commitment to make this bill law.

Also on Monday, the House will resume debate on Bill C-31, the Protecting Canada's Immigration System Act. We will return to this debate on Thursday and Friday.

Tuesday will begin with Bill S-4, the Safer Railways Act. This is an important bill that was nearly passed before the opposition forced an election last year. I hope we will see the debate conclude sometime Tuesday.

If we have extra time on Tuesday, the House will take up a second piece of legislation, Bill C-15, the Strengthening Military Justice in the Defence of Canada Act.

Wednesday shall be the seventh and final allotted day of the supply cycle. I might correct my friend that I do not think this has ever been designated in the House. We will debate a motion from the New Democratic Party and end the afternoon with two appropriations bills from the President of the Treasury Board.

Transportation Safety

[Denis Lebel, Conservative, Minister of Transport]

Mr. Speaker, our thoughts and prayers remain with the families of the victims of the tragic accident that happened some days ago.

Rail security is very important to our government, which is why we have taken strong action and delivered results.

Once Bill S-4 is adopted, we will have implemented 83% of the recommendations from the Rail Safety Act review panel, and our actions helped to decrease the numbers of rail accidents in 2007.

[Denis Lebel, Conservative, Minister of Transport]

Mr. Speaker, this has been discussed in the past, but as the member knows, that involves many partners, including unions and managers of rail companies, who will continue these discussions because it was tasked to have further discussions. We are very close to an agreement and to adopting a piece of legislation.

I would like to remind my colleague that for her party an opportunistic election was more important than ensuring the safety of hard-working Canadians. The previous version of Bill S-4, Bill C-33, died on the order paper on March 21, 2011. It went through first reading, second reading, committee stage and was reported to the House. We were so close.

[Denis Lebel, Conservative, Minister of Transport]

Mr. Speaker, we followed the implementation of this matter in the U.S.A., but have tasked the Advisory Council on Rail Safety on an urgent basis to look again into the matter of installing voice recorders in locomotive cabs.

Once Bill S-4, which will be very well supported, is adopted, we will have implemented 83% of the recommendations made by the review panel on the Railway Safety Act and 100% of the recommendations of the committee of which the member is part.

Canada-Panama Economic Growth and Prosperity Act

[Olivia Chow, NDP, Trinity—Spadina, ON]

Mr. Speaker, I wonder why today we are debating a free trade agreement between Panama and Canada. I wish I were standing here debating Bill S-4, the safer railways act, for example. That is a high priority for me.

The bill we are discussing would allow the Conservatives to be soft on crime and on criminals. How would the bill allow the Conservatives to do that? It would allow criminals to hide money obtained through illegal means in the tax haven of Panama. In fact, the Conservatives do not really want to track this money from illegal activities. They have no problem doing a trade deal with Panama even though Panama refused to sign the tax information exchange agreement which would disallow criminals from hiding their money in that country.

Right now there is absolutely no transparency. In a small country like Panama, there are 400,000 corporations, many of which are there just to hide their illegal funds. One might ask what kind of illegal activities those corporations in Panama are involved in. The country is used to launder drug money. It is used to divert aid. It is used to bribe the government. It is used to fund paramilitary groups. It is used to defraud shareholders. It is used to embezzle public funds. It is used for human trafficking. It is used to trade in illegal arms. Those criminal activities are intolerable and the people involved in them should be punished.

However, this trade deal would allow criminals not only to avoid taxes, but to also launder money and hide their funds. In fact, Panama is known as a major financial conduit for Mexican and Colombian traffickers' money laundering activities according to the U.S. Department of Justice and other entities. Let me read a memo from the U.S. Embassy in Panama that was revealed by WikiLeaks:

Along with its sophisticated banking services, Panama remains an environment conducive to laundering the proceeds from criminal activity and creates a vulnerability to terrorist financing.

These are the words of the U.S. Embassy, not of the NDP. The memo indicates:

The money laundering process of: placement (putting money into a legitimate financial institution), layering (distancing the money from its origin) and integration (causing the money to re-enter the economy in legitimate-looking form) is perfectly replicated in Panama.

My gosh. Placement, layering and integration; this is how criminals hide their money in Panama. Not just in that memo from 2006, but in 2009 a U.S. Embassy cable on Panama reported Panama's failure to report Colombian kingpin David Murcia Guzman's laundering of drug money. It is incredible. These criminals are using the drug money they have made from selling drugs and wrecking people's lives. They are able to take the money made from doing drug deals and hide it in Panama.

The Conservatives have said that is okay. They are going to turn a blind eye to it and will not even ask about who is behind the corporations. They do not want to know what kind of people are hiding money. They do not want to know about the illegal activities. They do not think it is up to them. They will see no evil and speak no evil, because it is another country. They are going to wash their hands of it and allow the criminals to continue their activities. That is inexcusable.

How would the trade deal make it even worse? The Canada-Panama trade deal would worsen the tax haven problems. As the OECD has noted, having a trade agreement without first tackling Panama's financial secrecy practices would encourage this secrecy and allow even more offshore tax dodging.

There is reason to believe that the trade deal would not only increase tax haven abuses, but it would also make fighting them that much harder. How would that happen? For example, even if we could persuade the government to put in place legislation giving Panama a deadline to clean up its act or face sanctions, and we tell the Canadian banks that they are restricted from transferring money to their affiliates, article 9.10 of this trade deal says that each party shall permit transfers relating to a covered investment to be made freely and without delay into and out of its territory.

What does that mean? It means speeding up the transfer of illegal funds. It means giving criminals more freedom to cheat. It means making sure that they can hide their funds without any barriers. Moreover, chapter 9 and chapter 12 of the FTA have non-discriminatory clauses that protect Panama's registered investors. That means protecting criminals from Canadians or anyone going after them.

Article 12.06 states that Canada will always allow Canadians to purchase financial services from banks operating in Panama.

This is the kind of deal that we are debating.

What is a tax haven? It means people do not have to pay any tax or very little tax on relevant income. They do not have to provide information about their income. There is a lack of transparency. There is no substantial activity by the taxpayers in that jurisdiction. That is the OECD's definition of a tax haven. Panama fits the criteria of this definition to a t. That is what it is known for.

Why are we doing a trade deal with that country? I looked at how much trade Panama is doing with Canada. I noticed that it is less than 1%. It is not a major trading partner for Canada.

Two-way merchandising trade between the two countries reached only $149 million in 2008 and is less than 1%. Therefore, why this rush for trade with Panama? I would understand if we wanted to discuss trade with China. There is a big market there. It is not as if Panama is a big country. It is well known as a tax haven.

This trade deal is being negotiated in record time without any consultations. Perhaps one of the reasons is that the government does not want people to rise up and say that to shelter criminals and be soft on crime is not the way to go. Perhaps that is why we are debating this bill.

Panama is well known for allowing people who are close to bankruptcy to take their cash and assets to an anonymous offshore company so that they do not have to pay their creditors. They rack up a big bill and owe a lot of people a lot of money, so they take their assets and hide it in a corporation in Panama. No wonder they have tens of thousands of these corporations functioning very well.

Panama is also known for allowing people to transfer profit to these offshore centres. In fact, in 2008, Goldman Sachs paid a federal tax rate of 1%. This was before it collapsed. It would have paid 35% in the U.S., but it only ended up paying 1% because it was able to move a lot of its money to Panama.

Global Financial Integrity estimates that there is $1.2 trillion in tax havens in secret jurisdictions around the world. One-third of that money, 33%, is money that comes from the proceeds of crime. As well, 3% of that money comes from corruption. That is $335 billion of criminal funds hiding in tax havens around the world. Because of these tax havens, one might ask how much tax is not being paid to governments such as the Canadian government. In total, governments around the world are losing $165 billion worth of taxes, which could go to AIDS, helping people in poverty, providing drugs for kids in Africa, providing education for women, creating jobs or building infrastructure around the world, but is not because of many tax havens, such as the ones in Panama.

Panama is also famous for the registration of ships. It is number one for flags of convenience. They could be Canadian ships. Some of us may recall that we have a famous person who has these ships that do not fly Canadian flags. Rather, they fly flags of convenience.

Do members know how many ships are registered in Panama? Eight thousand ships are registered there so they do not have to pay much tax. I would rather see some of these ships, those that are owned by Canadians and registered in Canada, pay Canadian taxes so we could take some of that money and provide health care for seniors, for example. There are lots of ways one could use the funds from tax avoiders.

Some of the 8,000 ships that are registered there, just registered but not really there, just fly the flag of convenience. Some of these ships do have crew members from Panama. What kind of people are they? Forty per cent of them are migrant Chinese workers who earn less than $3,000 per year. As a result of registration in Panama, illegal fishing vessels can avoid fisheries regulations and controls. Some of these fishing vessels can fish illegally using methods that are prohibited by international laws. Since they hide in Panama and fly flags of convenience, they do not have to be regulated. I focus mostly on these illegal activities.

French president Nicolas Sarkozy, in a speech made at the end of the G20 conference in Switzerland in November of last year, named Panama as one of the countries with serious problems. He said that countries that remain tax havens would be shunned by the international community.

Shunned by the international community, except Canada perhaps, because the Canadian Conservative government wants to be good friends with Panama. It does not want to curb these illegal activities. It does not want to understand or learn about the illegal arms groups that use Panama for drug trafficking. The government does not want to learn about the funds generated from illegal activities that are being laundered through banks, real estate developments and various corporations.

Panama is a country of extremes. It is a country of about 3.4 million people and yet 40% of the people living in Panama are poor and 27% of those folks, close to three out of ten, are extremely poor. The rate of extreme poverty is particularly acute in the indigenous population. Even though the country has endured extensive structural adjustments, liberalization and privatization in recent years, this has not translated into economic benefits for the population. I have no doubt that when this trade deal passes through the House of Commons it will not help four out of ten people in Panama and lift them out of poverty. It will help criminals, drug dealers, arms traders, people involved in extreme illegal activities and fraudsters.

Message from the Senate

[The Speaker, Andrew Scheer]

I have the honour to inform the House that a message has been received from the Senate informing this House that the Senate has passed the following bill: S-4, An Act to amend the Railway Safety Act and to make consequential amendments to the Canada Transportation Act.