Bill C-5 (Historical)

Offshore Health and Safety Act

An Act to amend the Canada-Newfoundland Atlantic Accord Implementation Act, the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and other Acts and to provide for certain other measures

This enactment amends the Canada-Newfoundland Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (the “Accord Acts”) in order to increase the level of safety and transparency of offshore petroleum activities.
The main purpose of the amendments is to establish a new occupational health and safety regime in the offshore areas.
In addition, it amends the Accord Acts to, most notably,
(a) ensure that occupational health and safety officers, special officers, conservation officers and operational safety officers have the same powers for the administration and enforcement of the Accord Acts;
(b) clarify that the new occupational health and safety regime applies to the transportation of persons who are in transit to, from or between workplaces in the offshore areas;
(c) require that any occupational health and safety regulations that apply to the transportation of persons who are in transit to, from or between workplaces in the offshore areas be made on the recommendation of the Minister of Transport; and
(d) authorize each of the Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board to publicly disclose information related to occupational health and safety if it considers it to be in the public interest.
It amends the Hazardous Materials Information Review Act to enable health and safety officers to get privileged information and to enable employers subject to the Accord Acts to apply to the Chief Screening Officer for exemptions from disclosure requirements in the same manner as employers under the Canada Labour Code. It also amends the Access to Information Act to prohibit the disclosure of certain information.
It amends the Canada Labour Code to closely follow the Accord Acts with respect to the time frame for the institution of proceedings, and with respect to prohibitions on the sharing of information and on testimony.
It also amends certain Acts and regulations to make terminological changes that are required as a result of certain amendments to the Canada-Newfoundland Atlantic Accord Implementation Act.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Thank you very much, Mr. Chair.

Thank you, folks, for being here. I appreciate your insight and input into this bill.

One of the comments you both made was with respect to transparency. Mr. Pinks, one of the comments you made was that as a regulator of a high-profile industry, you are frequently challenged with releasing information. It was the same thing with Newfoundland. You said these new amendments would provide a comprehensive legal framework to achieve the same protections.

Can you comment about that release of information and transparency? What are the benefits of Bill C-5 that you didn't have before?

[Stuart Pinks, Chief Executive Officer, Canada-Nova Scotia Offshore Petroleum Board]

Okay.

Mr. Chair, and members, thank you for the invitation for the Canada-Nova Scotia Offshore Petroleum Board, what we call the C-NSOPB, to appear before the Standing Committee on Natural Resources regarding Bill C-5, the offshore health and safety act.

My name is Stuart Pinks and I am the board’s chief executive officer.

The C-NSOPB is the independent joint agency of the governments of Canada and Nova Scotia responsible for the regulation of petroleum activities in the Nova Scotia offshore area. In carrying out its legislative mandate, the health and safety of offshore workers is paramount, and it is with this in mind that the board is pleased to be able to communicate to this committee the board’s support for Bill C-5.

While both the federal and provincial governments acknowledged the need for legislative change, the board took interim steps a number of years ago and developed its own set of occupational health and safety requirements based on a hybrid of best practices from existing provincial and federal legislation and regulations. At the heart of these requirements is an internal responsibility system which, among other aspects, promotes a positive safety culture, the use of best practices, and holds both employers and employees accountable for safety.

Our current health and safety structure ensures that petroleum activities are conducted in a manner in which hazards are properly identified, and the associated risks assessed and then appropriately mitigated and managed. The board’s health and safety team is led by our chief safety officer, Mr. Keith Landra, who alongside me is appointed by and reports directly to the board. Reporting to Mr. Landra are several health, safety, and environment advisers, some of whom are also designated as safety officers under the current legislation. One of these safety officers has been designated as a backup to Mr. Landra in his capacity as chief safety officer, should he be unable to fulfill his role at any given time.

As a former chief safety officer at the board myself, I know first-hand the importance of having in place the appropriate organizational structure to assure that our decision-making process recognizes safety as paramount and environmental protection as a close second. I am pleased to say that our board has in place a governance structure to assure that this is indeed the case, and that to this end they have created a separate board committee responsible for oversight of our health, safety, and environmental, HSE, protection mandate.

This committee consists of board members with extensive offshore oil and gas experience and expertise. It meets regularly with our chief safety officer ahead of all board meetings and also on an as-needed basis. These meetings are designed to give the chief safety officer regular and direct access to the board members in support of his very important role, separate from consideration of other aspects of the board’s mandate.

The HSE committee has a number of functions, which include reviewing decisions taken to assure that decision-making recognizes the paramountcy of health and safety. The committee also supports the chief safety officer in his role and provides advice as and when necessary. Another key benefit of the committee is that it acts as a system of checks and balances to ensure that all the appropriate policies, systems, guidelines, and memoranda of understanding are in place for ensuring regulatory due diligence, and that health and safety efforts are adequately resourced.

While our current occupational health and safety system has served us well, we welcome the changes in part III.1. Board staff has been integrally involved in the legislative drafting process, providing advice on an ongoing basis. We are encouraged to see that this legislation contains the legal framework and authority for a modern occupational health and safety regime in the offshore. We are pleased to see that the compliance and investigation powers of our occupational health and safety, operational safety, and conservation officers have been modernized and made consistent in that legislation.

Another benefit of this legislation surrounds transparency. As a regulator of a high-profile industry, we are frequently challenged with the task of releasing information. These new legislative amendments will ensure that we can disclose information related to occupational health and safety should it be in the public interest.

Last, our board strongly feels that each person has a responsibility for the overall safety of the workplace. Owners, interest holders, operators, employers, supervisors, service providers, and front-line employees each have individual and shared responsibilities. Because this hierarchy is outlined in this bill, our board can make greater strides in directing and enforcing responsibility.

Furthermore, we are pleased to see that this bill legally enshrines employee rights to know, to participate, to refuse dangerous work, and to be protected from reprisal. It is my belief that these changes will help to foster a greater sense of safety culture in Nova Scotia’s offshore.

Moving forward, our board will work with both governments to create memoranda of understanding for the administration and enforcement of part III.1 and part III of the legislation. Our designated officers will be appropriately trained, and we will make the necessary changes to our internal policies and procedures. Our HSE committee has proved to be an important function of the board and will continue to provide governance oversight as we move forward in implementing these amendments. Our staff will also work to inform operators and staff of these changes.

Overall, our board welcomes this legislation and looks forward to seeing its benefits realized.

Thank you again for the opportunity to provide the board’s perspective on this matter.

[Scott Tessier, Chair and Chief Executive Officer, Canada-Newfoundland and Labrador Offshore Petroleum Board]

Thank you, Mr. Chair.

Good afternoon. I am the chair and chief executive officer of the Canada-Newfoundland and Labrador Offshore Petroleum Board, sometimes referred to as the C-NLOPB. I am joined by my colleague, Susan Gover, legal counsel with the board. It's a pleasure for us to be here today to speak in favour of this very important bill.

The C-NLOPB is pleased that Bill C-5 has been introduced in Parliament. We see it as a very positive development in offshore safety. In particular, we appreciate that the bill reflects the following principles: occupational health and safety laws for the Newfoundland and Labrador offshore area should be at least as stringent as those for onshore; joint jurisdiction of both the federal and provincial governments is recognized; and consideration has been given to an effective and efficient use of regulatory resources.

I want to acknowledge the tremendous effort that has gone into this initiative over a number of years by our staff, in particular Howard Pike and Susan Gover, who joins me today. They've brought great value to the development of this package through their expertise and their advice to government officials.

Bill C-5 is an important piece of legislation in that it extends authority and fundamental principles of occupational health and safety to the offshore within the accord acts. These new amendments will provide a comprehensive legal framework to achieve the same protections for offshore workers that onshore workers currently enjoy.

The passage of this bill into legislation would strengthen the way in which we and our colleagues in Nova Scotia conduct offshore safety activities. These amendments create a formal legislative and regulatory framework for occupational health and safety and a more effective enforcement tool kit for our officers.

One of the significant changes proposed in the bill is on matters related to occupational health and safety. The C-NLOPB will also now report directly to the provincial minister responsible, the Minister of Service Newfoundland and Labrador. We look forward to that new working relationship.

The bill also reflects a hierarchy of responsibility in clarifying the roles of governments, regulators, employers, and employees. It recognizes that the operator is ultimately responsible for ensuring worker safety in the offshore environment.

Bill C-5 also grants the offshore petroleum boards additional authority to disclose information to the public related to occupational health and safety. The C-NLOPB is committed to the principles of openness, accountability, and transparency, and we are committed to continuous improvement in this regard. These amendments will guide the C-NLOPB in our decision-making around information disclosure on matters of offshore safety that are in the public interest.

The C-NLOPB would also welcome the establishment of an advisory council with representatives from industry, governments, and employees to provide advice on matters related to occupational health and safety.

As well, the new legislation will clarify any jurisdictional uncertainties respecting occupational health and safety matters, in particular the right to refuse and the requirement for occupational health and safety committees. The C-NLOPB currently administers the provisions of the provincial Occupational Health and Safety Act on behalf of the province. Having these principles enshrined in legislation under the accord will ensure that the board has clearer authority to enforce all occupational health and safety requirements.

In October the board held its fifth safety forum, which provided an opportunity for stakeholders in the offshore industry to share information so that safety issues can be proactively identified and discussed. Many of the issues that arose related to matters addressed in the proposed amendments. The following day we held our biannual meeting with the joint occupational health and safety committees from each of the facilities operating offshore. The committees reviewed an overview of the changes proposed in Bill C-5, and the response was quite positive.

An important feature of these amendments is that they ensure the new occupational health and safety regime clearly applies to workers in transit to, from, or between offshore workplaces. This would require that the federal Minister of Transport recommend regulations related to the occupational health and safety of offshore workers in transit. Transport Canada has regulatory responsibility for vessels and helicopters, but the C-NLOPB has an important role in passenger safety with respect to offshore workers. It's therefore important that both regulatory agencies adopt a coordinated approach to safe passenger travel to, from, and between offshore facilities.

Since the crash of Cougar flight 491 and the establishment of the Wells inquiry by the C-NLOPB, there have been considerable improvements to offshore helicopter passenger safety. The actions of the C-NLOPB following this tragedy have captured the interest of offshore regulators worldwide.

I, along with our chief safety officer, recently returned from an international offshore safety conference, where we gave an overview to a very attentive audience about our progress on helicopter safety.

I think it's fair to say that out of these tragic circumstances we are among the world leaders in offshore helicopter passenger safety. The proposed legislative amendments will further strengthen Canada’s leadership in this area.

In response to the Wells report, the C-NLOPB established an implementation team consisting of offshore workers, operators, Cougar Helicopters, and the C-NLOPB. While very good progress has been made in implementing the recommendations of the Wells inquiry, more work remains to be done by a number of stakeholders.

I'll close by saying that the safety of offshore workers is always our top priority. The C-NLOPB welcomes these amendments, and we will be ready to implement them once they are passed by Parliament.

I want to thank you for inviting us here today and for giving us this opportunity to speak to this important legislative proposal.

I look forward to your questions.

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

Thank you, Mr. Chair. That's very generous of you.

I'm going to take the two minutes to go over two questions that have come up, which I don't think have been fully answered. Hopefully, you can help us with that.

The first is Mr. Cleary's question around why an independent safety regulator was not put into the bill. Nova Scotia called for it and Newfoundland called for it. We really need an explanation as to why the federal government refused to accept what were clear recommendations from those two provinces.

The other thing that's very helpful for us to know, because we've had contradictions between Bill C-4 and Bill C-5, is to what extent the two ministries are actually working together so that Bill C-4 doesn't destroy any of the benefits that are in Bill C-5. If you could answer those two questions, that would be very helpful for us.

[Joan Crockatt, Conservative, Calgary Centre, AB]

My time is probably coming short, so can I ask you about incident Nimbyism? I think that in some cases it becomes easy for someone to say, “This isn't my area and it's not my responsibility.” How is that addressed in Bill C-5?

[Joan Crockatt, Conservative, Calgary Centre, AB]

Thank you very much, Chair.

I want to thank the officials for coming. It's always great when we can have you here to ask questions directly. I appreciate that.

First, I want to follow up on Ms. Block's comments earlier on the development of Canada's offshore resources being essential not only to residents of Newfoundland and Labrador and Nova Scotia, but to all Canadians. The public needs and wants to be assured it's being done with appropriate regulations so they know it's being done safely.

I think this is a critical piece of legislation. You talked about Bill C-5 having the most strident workplace and environmental standards. I'm wondering if you can tell us how the standards that are included in it compare to those in other countries.

[Brenda Baxter]

Bill C-5 speaks to provisions under the proposed amendments under the Canada Labour Code. This is with respect to the offshore accord act, which is a separate piece of legislation.

[Brenda Baxter]

My understanding is this is with regard to Bill C-5, not Bill C-4.

[Brenda Baxter, Director General, Workplace Directorate, Labour Program, Department of Human Resources and Skills Development]

I can't speak to the consultation process with respect to Bill C-5. My colleagues would have to speak to that.

With regard to the changes that are included from the consequential amendments to the Canada Labour Code, in this act they touch on the issues of information sharing. They touch on the issues of timelines for prosecutions, as well as ministerial permission to appear before a civil or administrative proceeding. Those are the specific changes.

[Geoff Regan, Liberal, Halifax West, NS]

I guess my concern is that the government could define “danger” and change the definition of “danger” with absolutely no consultation with employers and employees or experts, as I'm told was done in relation to the changes in Bill C-5 to the definition. I don't know if Ms. Baxter can clarify this and talk about the consultations that took place for redefining “danger” in Bill C-4 and tell us what the plan is in relation to Bill C-5.

Really, is the government planning to do consultations on this?

[Jeff Labonté, Director General, Energy Safety and Security Branch, Department of Natural Resources]

Mr. Chair, and members, thank you very much for the opportunity to present further information on Bill C-5, the offshore health and safety act, a package of offshore health and safety amendments.

My name is Jeff Labonté, and I'm the director general for the energy sector of the Department of Natural Resources. I'm joined by my colleagues, whom the chair has identified.

We're here today to talk on behalf of the department and the deputy minister and minister about Bill C-5 as proposed in the House. It's a set of provisions to amend the accord acts, as well as a number of other acts, and to clarify and strengthen occupational health and safety in the regime for Canada's Atlantic offshore areas where there are active oil and gas developments and exploration activities.

I'll start by pointing out and underlining that the accord acts are somewhat unique as legislation in the federal and provincial versions mirror each other, allowing Canada to continue under what we term shared management regimes with both the Province of Newfoundland and Labrador and the Province of Nova Scotia. We are also actually actively in discussion with the Province of Quebec to establish similar mirror legislation.

By mirror legislation we mean that both federal and provincial legislatures have nearly identical legislation that creates a management structure that allows development to occur on an orderly basis and on a basis that's clarified in law and with a regulatory body. It also means that when amendments are required in the offshore area, there is more than one active party in legislature that requires agreement in terms of how to move forward to make amendments.

Bill C-5 is the culmination of a thorough and sustained process of collaboration with our partners in the provinces of Newfoundland and Labrador and Nova Scotia. All three governments introduced this legislation in May of this year. I'm happy to say that the respective provincial governments passed the legislative amendments and they received royal assent in each of the provinces. In the case of the federal legislation, it was tabled; we came to committee; and the legislation has been reintroduced.

Just as joint management is unique and has a unique legislative frame, our Atlantic offshore is also a unique workplace. Not unique, however, is the need to ensure that the offshore industry carries out its activities safely and in compliance with the most stringent workplace and environmental standards. Canadians expect to see a world-class regulatory regime, and the proposed legislative amendments ensure that our offshore regime remains world class and among the strongest.

The proposed amendments clearly establish authority for occupational health and safety in each of the accord acts and provide that they will be administered by our offshore boards, our arm's-length offshore regulators, who are experts in oil and gas. I understand that later this evening you will have before you the heads of two of the regulatory agencies in Atlantic Canada.

The amendments proposed cement in statute current practices in which the offshore boards apply occupational health and safety standards and requirements traditionally as conditions of licence to operate. Thus, the proposed amendments clarify accountability in statute and will introduce other improvements so the regime can continue to build on its existing safety record, which is solid. The legislation proposes specific worker rights, a new governance model, clarity in the hierarchy of responsibility, and new powers to the offshore board and its officers to enhance safety.

I'll walk briefly through each of these, and then I'll turn the conversation over to you for your questions.

With respect to specific worker rights, the amendments include three fundamental worker rights: the right to know, to be informed about the workplace, the hazards that exist, and the safeguards in place to mitigate them; the right to participate, to be a key part of the decisions that affect health and safety in the workplace; and the right to refuse dangerous work. When we're talking about workplaces here in the offshore, we're talking about workplaces that can be hundreds of kilometres offshore in the North Atlantic, and the need for these rights becomes magnified.

The amendments also propose a specific new governance model for the proposed occupational health and safety sections of the accord acts. Provincial ministers responsible for occupational health and safety will have oversight in partnership with the federal Minister of Natural Resources. This reflects the agreement of the original accord act in which provincial social legislation would apply, and in this case we're talking about labour.

Federally, the Minister of Natural Resources will call on the Minister of Labour as needed, and as the legislation outlines, he or she must do so in specific circumstances, i.e., to review and approve regulations and nominations to the occupational health and safety advisory committee.

The federal minister will also call on the Minister of Transport, as needed, to ensure consistency for our workers offshore when they are in transit to and from the workplace by marine or by air. The legislation also establishes an occupational health and safety advisory council for each of the offshore areas and includes the respective chief safety officers as members. We intend that each committee will advise governments on worker health and safety issues, including any concerns that may arise in the context of work authorizations, i.e., those related to the operation of the offshore.

With respect to hierarchy of safety, the amendments proposed create a clear hierarchy of responsibility. In doing so, they address a certain point. One is that no one wants an incident to happen, not the companies, the offshore boards, the federal government, the provincial governments, the unions, nor the workers, who all strive to ensure that incidents don't arise. But when something does, the last thing that anyone wants is that we're not responsible or that someone else is responsible. This legislation proposes that it is the operator who is ultimately responsible for the safety and well-being of all workers, contractors, and even visitors who join the opportunity to visit its facilities. The legislation also spells out the duties of employers, supervisors, employees, contractors, and interest holders, as well as the offshore boards and their officers.

The nature of the offshore is that the work sites are far away and certainly necessitate travel and movement to reach the platforms. The legislation also proposes that the health and safety regime explicitly apply to workers when in transit to the offshore. Any worker can refuse to be transported, without reprisal, if concerned with safety. The legislation also includes powers to establish regulations related to additional safety equipment for workers in transit, and offshore board inspectors have the power to conduct compliance audits on vessels used to transport workers. These measures taken together would enhance safety for workers and those in transit to the offshore.

New powers for the boards and officers is the final area that I wish to speak to. The legislation provides a new suite of powers to offshore board officers to enhance safety. For example, they would have the ability and power to inspect the workplace, to take samples, to meet in private with an individual, and to inspect, as needed, living quarters. Due to the distance and some of the issues I mentioned earlier, these officers have the power to act in exigent circumstances; that is, they could act without a warrant to preserve evidence or to prevent non-compliance. A requisite warrant would have to be sought post-activity and be granted by a judge or equivalent.

The final area that I will cover is that of the chief safety officer. First, to ensure that safety considerations are always represented, the legislation proposes that the position of the chief safety officer can never be held by a CEO of the board. In addition, a chief safety officer would have to review and provide written recommendations related to safety on all operational authorizations. This would formalize a process that both boards have already been following and is a practice of ensuring that safety is a priority. Chief safety officers would also be granted the power to allow regulatory substitutions. These could be made when an operator satisfies the chief safety officer that the substitution proposed provides an equivalent or greater level of safety. The chief safety officer could also require that the operator or employer establish a special operational health and safety committee. The committee would be in addition to the workplace health and safety committee that all workplaces with more than five employees must establish.

In certain special circumstances, the legislation also provides that the provincial minister have an exceptional power to appoint a special officer. The legislation is very clear that this can only be done when there are reasonable grounds to believe that such an appointment is warranted to avoid a serious risk to health and safety, and that risk could not be avoided through the use of any other means available through other acts. Both the federal and provincial ministers would have to agree that the required conditions have been fulfilled. The orders of a special officer would supersede all orders of all other officers, including the chief safety officer.

I'd like to close by saying that this proposed legislation is an important step in clarifying our already excellent offshore oil and gas regime and ensures that occupational health and safety remains a priority. We look forward to your questions and discussion on this proposed legislation as it's being considered by Parliament.

Thank you, Mr. Chair.

[The Chair, Conservative, Leon Benoit]

Okay. We'll see what we can do with that.

Today we're here, pursuant to the order of reference of Tuesday, November 26, 2013, to study Bill C-5, an act to amend the Canada-Newfoundland Atlantic Accord Implementation Act, the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and other acts and to provide for certain other measures.

We have two one-hour sessions in our meeting today.

In the first hour, we have, from the Department of Natural Resources, Jeff Labonté, director general, energy safety and security branch. Welcome to you. We have Samuel Millar, senior director, frontier lands management division, petroleum resources branch. Welcome to you. We have Anne-Marie Fortin, counsel. Welcome. We have Tyler Cummings, deputy director, frontier lands management division, petroleum resources branch. Welcome to you.

We have as well, from Employment and Social Development Canada, Brenda Baxter, director general, workplace directorate, labour program. Welcome to you.

Go ahead with your presentations as you have them planned, and then we'll get to questions and comments from the committee members.

Go ahead, please, Mr. Labonté.

[The Chair, Conservative, Leon Benoit]

Thanks very much to all of you for your cooperation.

We will come back on Monday to hear from the officials and from the two provincial boards involved in Bill C-5.

Have a great weekend.

The meeting is adjourned.

Offshore Health and Safety Act

[The Speaker, Conservative, Andrew Scheer]

The House will now proceed to the taking of the deferred recorded division on the motion at the second reading stage of Bill C-5.

The House resumed from November 25 consideration of the motion that Bill C-5, An Act to amend the Canada-Newfoundland Atlantic Accord Implementation Act, the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and other Acts and to provide for certain other measures, be read the second time and referred to a committee.