Bill C-52 (Historical)

Safe and Accountable Rail Act

An Act to amend the Canada Transportation Act and the Railway Safety Act

This enactment amends the Canada Transportation Act to strengthen the liability and compensation regime for federally regulated railway companies by establishing minimum insurance levels for railway companies and a supplementary, shipper-financed compensation fund to cover damages resulting from railway accidents involving the transportation of certain dangerous goods.
Among other things, the amendments
(a) establish minimum insurance levels for freight railway operations based on the type and volume of goods that are transported;
(b) require the holder of a certificate of fitness to maintain the liability insurance coverage required by that Act, and to notify the Canadian Transportation Agency without delay if its insurance coverage is affected;
(c) establish that a railway company is liable, without proof of fault or negligence, subject to certain defences, for losses, damages, costs and expenses resulting from a railway accident involving crude oil or other designated goods, up to the level of the company’s minimum liability insurance coverage; and
(d) establish a compensation fund in the Accounts of Canada, financed by levies on shippers, to cover the losses, damages, costs and expenses resulting from a railway accident involving crude oil or other designated goods that exceed the minimum liability insurance coverage.
The enactment also amends the Railway Safety Act to, among other things,
(a) allow a province or municipality that incurs costs in responding to a fire that it is of the opinion was the result of a railway company’s railway operations to apply to the Canada Transportation Agency to have those costs reimbursed by the railway company;
(b) clarify the Governor in Council’s power to make regulations respecting the restriction and prevention of access to land on which a line of railway is situated, including by means of fences or signs on that land or on land adjoining it;
(c) authorize a railway safety inspector who is satisfied that there is an immediate threat to the safety or security of railway operations to order a person or company to take any measure that the inspector specifies to mitigate the threat;
(d) authorize the Minister to require, by order, a company, road authority or municipality to follow the procedures or take the corrective measures that the Minister specifies if the Minister considers it necessary in the interests of safe railway operations;
(e) provide the Governor in Council with a regulation-making power regarding the submission of information that is relevant to the safety of railway operations by any person, other than the Minister to any person;
(f) authorize the Minister to order a company that is implementing its safety management system in a manner that risks compromising railway safety to take the necessary corrective measures; and
(g) declare that certain regulations and orders that were made under the Railway Act are deemed to have had effect from the day on which they were made under that Act and that those regulations and orders continue to have effect from that day as if they were made under the Railway Safety Act.

Safe and Accountable Rail Act

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Speaker, the hon. member finally got to his question dealing with fatigue. I got a little fatigued listening to him finally get to that particular point, but in all fairness, the question is a very serious one.

Anybody who drives a truck or flies on an airplane knows that pilots are subject to the rules about how long they can fly and truckers keep log books about how long they can be on the road.

The member would know that the proposed amendments in the bill would change the regulation-making power for safety management systems to add in the concept of employee fatigue management. Therefore, that is captured in the essence of this bill. The result would be that railway companies would be required to take into consideration the management of their employees' fatigue and include scheduling in their safety management system.

We are making progress on that, which is why all members of this House should support this bill.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, I rise today in support of the safe and accountable rail act.

Following the tragic July 2013 accident at Lac-Mégantic, our government acted quickly to strengthen safety in Canada's rail and transport of dangerous goods systems. Our actions have been based on three fundamental elements of rail safety, which are prevention, preparedness and response, and liability and compensation. This bill relates to the third of those pillars, liability and compensation. Today, I would like to outline how this proposed legislation would strengthen our liability and compensation regime for federally regulated railways.

The events of Lac-Mégantic highlighted the importance of having a strong liability and compensation regime for rail, and adequate compensation available in the event of a major accident. In the 2013 Speech from the Throne, we committed to hold railways and shippers accountable. To act on this and to examine how to strengthen our regime, we undertook a comprehensive review, which included two rounds of extensive consultations with a wide range of stakeholders, including railways, shippers, provinces, the Federation of Canadian Municipalities, and the insurance industry.

Our objective has been to ensure there are sufficient resources to adequately compensate potential victims and pay for cleanup costs. Our aim is also to make sure that the polluters pay, so that the taxpayers do not shoulder the financial burden in the event of an accident. These key principles are also central to the liability and compensation regimes that are currently being updated in other modes and sectors, such as offshore oil and gas, marine tankers, and pipelines. This proposed legislation would achieve these goals by sharing liability for rail accidents between railways and the shippers of crude oil, clarifying liability to benefit claimants, making more resources available for compensation, and ensuring compliance with the new regime.

What we are proposing is a two-tier system similar to the approach taken for marine oil tankers. The first tier would enhance insurance for federally regulated railways by imposing risk-based mandatory minimum insurance requirements. The second tier would share accountability for rail accidents with shippers of certain dangerous goods through a supplementary compensation fund.

Let me get into some of the specifics of the first tier, enhanced railway insurance. The responsibility for railway accidents rests first with the railway. The bill would establish minimum mandatory insurance levels that are explicitly linked to risk. The Canadian Transportation Agency would assign railways to a minimum insurance level based on the type and volume of the specific dangerous goods they carry. The minimum mandatory insurance requirements take into account the potential severity of accidents. The requirements range from $25 million for railways that carry few or no dangerous goods to $1 billion for railways that transport significant volumes of dangerous goods. Insurance would cover the damages involving third party injury or loss of life, third party property damage, and the risk associated with a leak, pollution, or contamination.

The bill would also clarify the railway's liability for accidents involving crude oil. Railways would automatically be liable up to their insurance limit without having to prove fault or negligence, and the railways would have to be operationally or physically involved in the accident in order to be held liable. This would give potential victims more certainty regarding their compensation claims, and it would protect taxpayers from having to cover the excess liability that we know can result from a catastrophic accident. For other accidents, liability would continue to be established through the courts, based on fault or negligence, as it is today.

I will turn to the second tier of the proposed new regime, which is the shipper-financed compensation fund. As I mentioned earlier, railway companies, through their insurance, would be the payers of the first resort for rail accidents. However, for accidents involving crude oil, any damages above the railway's liability limit would be covered by the fund. This fund would be financed by shippers through a levy of $1.65 per tonne of crude oil carried by the federally regulated railway and deposited into a special account of the consolidated revenue fund.

Our focus on crude oil for the fund responds first and foremost to the concerns that were expressed in relation to the Lac-Mégantic incident. Clearly, Canadians are concerned about the growing volumes of oil being transported by rail across long distances and through many communities, a trend that is expected to continue. Our approach recognizes that this is a new and significant phenomenon and we need to have adequate measures in place to hold the industry accountable. However, in the future some other dangerous goods could be scoped into the fund through regulation.

The combination of the enhanced insurance requirements and the supplementary fund would provide sufficient resources to cover the vast majority of potential accidents. The fund would be the payer of last resort in the rare event of damages from a rail accident involving crude oil surpassing the railway's insurance level. Furthermore, should an accident be of such a magnitude to deplete the resources held in the compensation fund, the consolidated revenue fund would be called upon to act as a backstop. This would ensure that all damages resulting from a rail accident involving crude oil would be covered.

It is important to emphasize that even in such an extreme situation the taxpayer should be protected. Any public money loaned to the compensation fund would be repayable with interest on terms set by the Minister of Finance through levies on the industry.

Another important part of establishing this compensation fund is putting in place an administrative body that can manage the fund effectively and in a cost efficient manner. To that end, we are modelling the fund's administration on that of the ship source oil pollution fund in the regime of marine tankers. A fund administrator would be responsible for establishing and paying out claims after the railway's liability limit was reached. As well as reporting on the management of the fund to Parliament through the minister of transport, after paying out claims, the fund administrator would be able to seek reimbursement from any at fault third parties through the courts.

The fund would achieve two important goals. First, it would ensure that shippers are held accountable for the liabilities associated with transporting their dangerous goods. This reflects the fact that shippers are a part of the polluter pays equation and that the nature of their products contribute to transportation risk. Second, the fund would provide added resources that could be called upon to compensate for damages, if required.

The benefits of this two-tiered regime that I have just described would only be felt if it operates as designed. That is why we have included enforcement mechanisms to ensure compliance. To ensure railways comply with the enhanced insurance requirements and collect and remit levies for the fund, monetary penalties of up to $100,000 per violation could be applied. Penalties would not be applied to shippers. Instead, to ensure that levies were paid, a railway's common carrier obligations to the shipper would be conditional on the shipper paying the required levy to the railway. In other words, the goods would not be shipped without payment of the levy.

A robust liability and compensation regime for rail complements our government's actions to further strengthen the safety of our rail system and the transportation of dangerous goods. Putting this legislation in place would ensure that should other rail accidents occur polluters would be held accountable and would provide the resources needed to compensate victims and to clean up the environment. I therefore urge all members to adopt the bill.

I come from an area of the country in southern Ontario, from a community that has been known as the railway capital of Canada. At different times, 36 different railways have run through St. Thomas, Ontario. It is quite proud of its railways heritage and its railway safety. As far as I know, we only had the one significant accident. In 1886, Jumbo the elephant was hit by a train in St. Thomas, Ontario. The largest elephant known to man, P.T. Barnum lost one of his greatest assets. I believe he would have wished this type of insurance plan was in place to have compensated him when Jumbo the elephant went down that day to the train in St. Thomas, Ontario.

[Bernard Trottier, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs and for La Francophonie]

Mr. Speaker, there is some important insight to be gleaned from the member's comments.

First, I commend him for focusing on the actual content of the bill. It is an important one, focused very squarely on the compensation and liability regime for railroads. It is not a panacea.

Railroads have been operating for well over a century in North America and in Canada. They will continue to operate and be a real cornerstone of our economy, our vibrant continental and international economy.

Could my colleague expand on the compensation fund? I think we all understand insurance and how that works, and the need for companies, where there are risks, to have adequate insurance. Certainly in the case of Lac-Mégantic, that railroad, the MMA, did not have adequate insurance to ensure that the victims were properly compensated.

On the compensation fund, the notion is that the railways are responsible for the risks, but the shippers are responsible for the risk as well. Could the member comment on that? How will the shippers take some responsible for the risk? At the same time, will this compensation fund affect their competitiveness? We understand how important it is to the petroleum industry in our country. It pays for all kinds of things that we appreciate in our great country.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, we have put in place what we think is belt and suspenders, in the way of being able to compensate. The railways are asked to carry a level of insurance based on the types of products they carry and the amount of business they do.

The second phase of that is a compensation fund that is available for the much larger accidents that would not be covered by insurance or might not be able to be covered by insurance, even though we have ensured that the railways carry that insurance.

The fund is created by $1.65 per tonne of oil, in this case oil carried. It is paid as the shipping happens so the fund is robust, is always complete, and it has money there. Over time, it will be able to handle any sort of accident that may happen, although we hope the fund is never used. All Canadians would hope that is the case.

As we continue to move dangerous products, like oil, by train, there is the opportunity that it might happen. Beyond the insurance of the companies involved, this will create a greater fund for those much larger and perhaps more dangerous situations.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank my colleague for his speech.

The Canadian disaster relief fund is an interesting aspect of the bill, but it does raise some concerns.

First, we do not understand why the amount was set at $250 million. Second, the money for this fund will be in the general revenues of the government.

I studied the budget extensively and I am in the process of going over the budget implementation bill, and I cannot say that the government inspires confidence. For example, to balance the budget this year, the Conservatives raided the national contingency fund.

I would like my colleague to clarify all this. I am not sure he will be able to reassure the public.

[Joe Preston, Conservative, Elgin—Middlesex—London, ON]

Mr. Speaker, I will be more than able to reassure. I will be able to reassure the member opposite that constituents in my riding and across Canada have been putting their faith in this government and agree that a promise made is a promise kept.

In the sense of balancing a budget, and I thank the member for bringing that up. Back home that is a pretty significant piece. I thank the member for allowing me to advertise that a little here.

The legislation we are debating today is also a promise made. When the members opposite vote for it at the end of this level of debate, it will be another promise kept. We then can tell Canadians that rail safety matters, that rail safety is taken care of, that railways will be asked to carry a level of insurance. We will also be able to put together the consolidated fund for those larger incidents that may or may not happen.

I thank the member for pointing out the great work of this government in its budgeting, and balancing of it. I thank him for allowing me to talk a little more about it today.

[The Acting Speaker, Bruce Stanton]

Before resuming debate, I must inform the hon. member for Gaspésie—Îles-de-la-Madeleine that there are 17 minutes remaining for government orders. The hon. member would normally have 20 minutes for his speech, but I will interrupt him at 5:30 p.m., at the end of the time provided for government orders.

[Philip Toone, NDP, Gaspésie—Îles-de-la-Madeleine, QC]

Mr. Speaker, I will try to be brief. Today, we are debating a bill that will supposedly improve rail safety in Canada. One of the government's main responsibilities is definitely to ensure public safety.

There has been a spectacular increase in the amount of oil shipped by rail. In 2009 there were 6,000 cars transporting oil, whereas last year, in 2014, there were 110,000. Canadians certainly have the right to ask questions, especially whether their safety is really this government's priority. The Lac-Mégantic disaster showed that there are serious flaws when it comes to safety.

Today, we have before us a bill that will not improve rail safety, but will instead address the issue of insurance after an accident. This is a reactive rather than a proactive bill.

We do not improve the safety of Canadians by sending a cheque after an accident occurs. We must improve the public's safety. The quality of Canada's rail system is very questionable, primarily because of the bills passed by successive governments in the past 20 years. That is what I am going to talk about.

I welcome the opportunity to address the government's bill, Bill C-52, the so-called safe and accountable rail act, which is a revised version of the existing Canada Transportation Act.

The biggest problem I have with the legislation is that it is based on an act that was inadequate when it was passed in 1996 by a Liberal government, and in turn, that bill was based on an even worse act passed by the Conservatives in 1987.

What we are being asked to do now, frankly, is comparable to rearranging the deck chairs on the Titanic. We have a fundamental responsibility to ensure safety, not to spend hours discussing insurance liability for rail companies. That is certainly a first step, and it is why I am going to support the legislation, but it is a tiny step. We need to go an awful lot further.

The changes proposed today are only the beginning of an answer. Canadians need a new act that is based on fundamental elements that have been lacking all along. From the very start, the current act has lacked the basics necessary to maximize the performance and safety of our multi-modal transportation system and especially its rail component.

The maintenance and safe, effective operation of a national transportation system fully addressing the needs of this country, the private owners of the majority of that system, and the shippers and passengers who depend on it requires that it be conceived as a whole. The essential elements would be policy, legislation, planning, and adequate funding, which the government sorely lacks in many fields of its jurisdiction.

Legislation is but one element in the development of a comprehensive and effective national transportation system. However, the Canada Transportation Act lacks many of these building blocks, the most elementary being a basic national policy balancing public and private interests.

As is said in the introduction to this legislation's review discussion paper, Canada's transportation system is “substantially more market-based, deregulated and competitive” than it was in the period before the Mulroney Conservatives introduced their deregulatory act in 1987.

In fact, our transportation system today is largely based on a laissez-faire approach that reserves only a few areas for public oversight. Its most vital flaw is the lack of an underlying, proactive policy.

As a result, Canada's transportation system is a series of silos that have been cobbled together by multiple and often competing owners without a comprehensive plan. All of them have wound up being patched up with this makeshift legislative and financial band-aid to correct the flaws created by a boundless faith in this hands-off, strictly-for-profit approach. It is totally unrealistic.

The VIA Rail Canada program, funding for remote airports and roads, scattershot safety fixes, a last minute renewal of federal funding for the Algoma Central passenger service and the government's Fair Rail for Grain Farmers Act, these form a patchwork of intervention in a system that the government likes to think does not require intervention, yet it continues to intervene.

There is no central policy or plan at work here, and it has been said that this type of necessary intervention is too frequently only taken by governments such as this in the run-up to an election. Pardon the pun, but this is no way to run a railroad. It is certainly no way to run a country.

The Canadian approach is far different from that taken by other countries that view transportation not just as a business, but as a potent tool for national, economic, social and environmental growth and security. This especially applies to the rail sector.

The United States took a similar laissez-faire approach to railroading for decades. With the construction of its highway interstate network, the national rail system there drifted along without benefit of a clear policy, nor comprehensive planning, nor balanced or sustainable funding, very similar to Canada today. The result was the collapse of large parts of the system and the need for government intervention under crisis conditions.

The revision of the U.S. approach to railroading is now under way with the enunciation of clear, inclusive policies that are interlocked with legislation, planning and funding to realize this new national vision. The objective is to maximize the potential of rail in concert, not in competition, with the other modes.

Making changes to the limited amount of legislation embodied in this CTA is only a small part of the solution. Without a clear and comprehensive national policy, even the best legislation will fail because it is based on what amounts to an absence of policy. Revising the CTA in the absence of enlightened and proactive policies cannot and will not decisively correct its major deficiencies.

There are two specific areas that concern me greatly. The first is the safety of the transportation network that has evolved under the current CTA and the predecessor deregulatory act on which it is based. This especially applies to rail.

We have now gone through a wave of rail accidents that have demonstrated how much our system has declined. If this was only to include Lac-Mégantic, that would already be much too much, but we have experienced numerous major derailments, both before and after that disaster, that have demonstrated that our rail system is degrading, and degrading rapidly.

Just as bad, it is not being monitored adequately on behalf of the public. What we have now is a self-regulating rail safety network, and it is not working.

Our rail safety regime under the CTA is badly flawed. It provides inadequate protection for individuals, inadequate protection for communities and its workers. In the pursuit of profits, corners are being cut and this inadequate attention to safety is not being revealed until it is too late. What we have now is reactive rail safety legislation.

To be effective, there must be a new safety legislation within the CTA that is not only better, it must be vigilantly enforced. Any new legislation must recognize that the public interest can only be adequately protected when the regulator has the power and the resources to enforce the rules.

Some believe that compelling the railways to carry more insurance is the answer. This is the very basis of this current legislation. While it is part of the solution, this is reactive in nature and after the fact. It does not prevent accidents; it merely analyzes them after they have occurred.

Funds should also be invested in improved infrastructure and safety appliances, which would prevent fiery derailments that pose an unnecessary risk to public safety. I am extremely disappointed that the bill does not include the implementation of a safety system that would have a major impact on Canadian rail safety. PTC, positive train control, a highly effective high-tech system, has been mandated by the U.S. Congress for all main lines handling passenger trains and freight trains carrying dangerous goods.

PTC would have had substantial impact on the Lac-Mégantic tragedy. In fact, it could have prevented it by alerting employees of the impending catastrophe as soon as that train began to be under way. There could have been intervention at a critical time. At the very least, the PTC system would have allowed for the minimization of the eventual derailment that led to the devastating explosions and the horrible loss of life. This bill does not even contemplate the application or the requirement for advanced technologies such as PTC.

I would also point out that the requirement to safely equip and maintain operations with advanced systems such as PTC would generate a domestic economic uplift. It would stimulate Canadian railway supply industries and creates jobs, such as in La Pocatière, Quebec and in Thunder Bay, Ontario. Private railway funding of large insurance policies usually just goes to offshore insurance companies and does nothing really to improve safety.

Furthermore, legislation aimed at improving rail safety must recognize that it requires on-the-ground inspection by trained government personnel who have the power to rigidly enforce the rules. There must be an adequate number of them to do it on a constant and daily basis.

I also believe that CTA needs to be revised to play a major role in proper functioning of our passenger rail service, VIA Rail Canada. There is precious little in the act today aimed at establishing the mandate, rights or obligations of our national passenger service, or even other passenger or commuter operations. I attempted to correct this situation with Bill C-640, An Act respecting VIA Rail Canada and making consequential amendments to the Canada Transportation Act, which would have required consequential amendments to the current CTA. That overdue legislation was defeated by the current Conservative government.

There is little in the current act to protect and direct the provision of a proper rail passenger system. There is, in fact, only one clause in the current CTA that affords any legislative rights in delivering a necessary service to millions of Canadians. When it has been applied on a very few occasions, it has been helpful but it does not go far enough in establishing VIA's right to operate on the lines of the privately owned freight railways.

VIA, like the whole transportation system, will never function effectively as long as our national transportation system is based on legislation that does not allow for the protection of the public interest. Nor does it respect the fair rights of our for-profit freight railways. These two are not mutually exclusive. A strong and healthy transportation system is vital to improve Canada's global competitiveness, security, social well-being and environmental performance. We won't have that as long as we allow our multi-modal system to function in what amounts to a policy vacuum. That is what we have today under the CTA, and no amount of tinkering is going to correct it.

As other nations with which we compete have demonstrated, the federal government needs to become much more engaged, innovative and supportive in addressing the numerous challenges that stand in the way of delivering safe, modern, adequate and sustainable transportation services across our land. To be truly effective, the CTA needs to be revised on the basis of a comprehensive national transportation policy that takes into account the needs of all stakeholders, public and private. This is a matter well beyond any revision of the act, solely presented here before the hon. members. It must originate at the highest levels of our federal government and it must include a serious dialogue.

The current bill was presented to a parliamentary committee in two sittings. This very important piece of legislation was rammed through much too quickly. Many stakeholders did not have the opportunity to speak. We need to take all of the steps necessary. This bill is simply a first step.

Let us remember that when the minister recently, with her American colleagues, announced new regulations regarding the transportation of dangerous goods, the minister and her American counterpart said that from now on, in urban areas of 100,000 people or more, the speed limit for dangerous goods will be 40 miles an hour. The problem with that is that it is not the density of the population nearby that is the real problem; it is the quality of the railway itself.

There are many areas of this country where we have allowed companies not to complete sufficient rail maintenance. They have deferred it to future periods, and when the rail cars run on these inadequately maintained rails, there is risk of accident. The government then has to act in a crisis situation, such as it did in northern New Brunswick, where it had to negotiate under the gun with a rail company to ensure that the railway was going to be properly maintained over the next 15 years.

This should not be managed in a crisis mode. We know the problem is the quality of the rail itself. We know that private companies are self-monitoring. Without proper supervision by the government and its agencies, this problem is simply going to be compounded. Again, the amount of rail transportation of our oil products is skyrocketing, and the danger to the public goes up at the same rate.

We have to take our responsibilities seriously. The government has taken only a very small step in that direction with this legislation. We need to do an awful lot more to prove to the Canadian public that we are taking our job seriously.

[The Acting Speaker, Bruce Stanton]

There will be three and a half minutes remaining for the hon. member for Gaspésie—Îles-de-la-Madeleine when the House next resumes debate on the question, as well as the normal 10 minutes for questions and comments.

It being 5:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's order paper.

The House resumed from May 7 consideration of the motion that Bill C-52, An Act to amend the Canada Transportation Act and the Railway Safety Act, be read the third time and passed.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, before I begin, I just wanted to double-check because I believe there was still some time on the clock for the hon. member for Gaspésie—Îles-de-la-Madeleine. I thought I saw him here a moment ago, but if that is not the case, I am more than prepared to proceed.

I rise to speak today on a bill that is important and has my support, but it opens up an area of public policy that really bears fuller examination. This bill gives us a chance to discuss that. I speak of Bill C-52, a bill for rail safety. As we all know, the issues of rail safety have become increasingly of concern to Canadians.

The title of Bill C-52 is the safe and accountable rail act, but I think it needs to be acknowledged that, while the bill is certainly welcome and is a step in the right direction, it actually only speaks to the accountability side of safe and accountable. It speaks to what we do in the event of accidents, such as who is responsible, how much insurance they must carry, and who can sue after the fact under the polluter pays principle. It does provide a number of important improvements, particularly for municipalities and others affected by rail accidents. It does create a minimum insurance requirement of $1 billion. These things are welcome.

However, the issue of rail safety continues to be one of deep concern. So many of the witnesses before committee spoke to the fact that Bill C-52, while welcome, does not go nearly far enough, and the steps that have been taken so far by Transport Canada to improve rail safety in the wake of the disaster at Lac-Mégantic also are moving too slowly and, even if fully implemented, do not go far enough.

I would like to take a moment to point out that, if we look at Lac-Mégantic as an example—and this was an example put forward by witnesses at committee—a $1 billion minimum insurance requirement for class 1 railways is something that was legislated mandate. The class 1 railways have already been carrying it. Certainly we never wanted to see the Lac-Mégantic disaster. May we never again see a disaster of that scale. However, now that we know it is possible, it behooves us to put in place the insurance requirements that would meet a disaster of that scale, which would, according to witnesses, be closer to six times that amount, or $6 billion.

Looking at the issue of rail safety, over the last number of years we have had what I would almost put forward as a perfect storm of changes in the private sector, in government, and in the types of goods we are shipping. They come together in ways that leave us less safe than we have been before, even with the improvements Transport Canada and the minister have made. For instance, as recently as 2009, only 500 cars a year were carrying highly flammable fossil fuels, the flammable crudes that take up most of our discussion these days. We know the number has gone up in the last two years, but in 2013 we were up to 160,000 car loads. This is a phenomenal increase in hazardous goods moving on our rails, and that leaves out other types of hazardous goods, whether chlorine or other hazardous substances.

The Canadian Association of Fire Chiefs took this statistic and converted it into millions of barrels and said that, as of now, we have a million barrels of crude oil, flammable class 3 liquids, per day moving on our rails. It also pointed out that in 2013, the last year for which I have statistics, which I found through the witnesses, there were 144 accidents that involved dangerous goods, 7 of which resulted in dangerous goods being released.

We have seen steps taken. I referred to them briefly before. The transportation safety boards in Canada and the U.S. make findings about safety but do not have the regulatory power to implement them.

The transportation safety boards on both sides of our border found some time ago that the DOT-111 railcars constituted an unsafe way to transport such hazardous and flammable materials.

We have taken some steps, as has the U.S., but there is a long lead time for the implementation, so now we are taking class 1232 trains and retrofitting them for crude oil. That must be done by 2020 and for less flammable materials by 2025. Still, until 2017—so we have 2 more years to go—the unsafe DOT-111 cars will still be rolling through our communities; 80,000 DOT-111 railcars will be still in service in the U.S. and Canada until 2017.

Why did I speak of the trends? We have essentially less safety and more hazardous goods. The rail industry, in theory, whether moving passengers or goods, is one of the safest and most environmentally appropriate way to move people and goods. This needs to be reiterated because it is an essential part of our infrastructure, and one of our arguments as Greens is that it is an essential part of our infrastructure that we have been ignoring too long.

We need to upgrade in the passenger context, and we need to invest in more modern trains and better rail beds. We need to continually upgrade the access to passenger rail and invest in VIA Rail for Canadians from coast to coast—and ultimately to coast, at least insofar as the Hudson Bay train would get there. Coast to coast to coast rail service makes sense, and modernizing it to bring it into the 21st century is an important investment for Canadians. It is an important part of our transportation infrastructure.

In the case of goods travelling by rail compared to by truck, it is safer in terms of accidents on our highways and, in theory, it reduces greenhouse gases. It is by far the safest way to transport hazardous goods. The difficulty we have is what has been happening in practice. Over the last decade or so—certainly not just in recent years—we saw a change through the smart regulatory regime; we have seen a change through private sector pressures to improve productivity; we have seen a change through government cutbacks; and ultimately we have greater risks because of the change in our industry.

Let us look, in terms of reduced safety, at the first point I wanted to make. The freight industry in Canada is private sector, whereas VIA Rail is a Crown corporation. We are now dealing with the pressure of for-profit companies, and one certainly understands their point of view, but as a result of their pressure to improve the profit bottom line, we heard from the rail sector labour force, and particularly from the unionized members and the union in that rail sector, of a continual cutback in engineers and onboard rail crews that has led to greater safety concerns.

We have also seen a failure to pay sufficient attention to maintenance along tracks. A number of the significant derailments that have occurred recently occurred because of failure to keep tracks and bridges operating properly. We even had a fatality because of the failure to keep a railway trestle in proper repair.

Back in 2005, a CN train derailed at Wabamun Lake in Alberta and resulted in a substantial spill, in which CN Rail was ultimately fined $1.4 million, which was a very modest fine, given the scale of that spill. The inquiry into that found that the rails over which that train was travelling were worn out and they had not been kept in adequate repair.

That was certainly a significant event, but there were a number of derailments right after it in 2005. This started creating more concern about the use of rail for freight that extended right across Canada, asking what more we could do and what the Transportation Safety Board was doing to ensure rail safety.

The second piece that made us less safe has been in the government decision to move to safety management systems. It is essentially a form of deregulation that came into effect some time ago.

I direct the House to a finding in a report released in 2007 by the Canada Safety Council. It reported that the system is one that:

...allows rail companies to regulate themselves, removing the federal government's ability to protect Canadians and their environment, and allowing the industry to hide critical safety information from the public.

One would think that having gone to a system such as this, Transport Canada would have a supervisory authority to review these SMSs, or safety management systems, to ensure their adequacy. However, it does not appear that is the case.

The third part of the less safe system is cutbacks at Transport Canada. We now have fewer engineers than we used to have available in Transport Canada to do the work of reviewing rail safety. According to a number of media reports, Transport Canada currently has, and has had since 2009, 30 critical rail safety positions that have remained vacant. These are for engineers who could do such things as anticipate and organize the removal of DOT-111 cars from the tracks. Missing critical people in rail safety and critical people at Transport Canada who deal with hazardous goods is not a good sign to Canadians. We saw budget cuts at Transport Canada in 2012 that seem to now put in stone the fact that these positions are not likely to be filled again.

We have hazardous goods moving through communities, as the committee was reminded by the Federation of Canadian Municipalities and citizen groups concerned with hazardous goods rolling through communities, yet we have not filled critical safety positions within Transport Canada.

The third part relies on what is happening in the private sector and why we are seeing more and more freight, and particularly more and more dangerous freight, on our tracks. I am a huge supporter of passenger rail, as members can probably tell by now from my speech. I have travelled Canada's rails, criss-crossing the country as often as I get the chance. Often, I have done it in the context of political campaigns and whistlestop tours, where it really matters to know that we are going to arrive at our destination some time near the scheduled time on the VIA Rail schedule.

As anyone who pays attention to rail in Canada knows, VIA Rail has to rent the tracks from CN and other rail owners. VIA Rail is not in control of the switches or the red, yellow, and green lights. In other words, passenger rail in Canada and on-time arrivals are virtually entirely hostage to freight. When we have increasingly long trains that can no longer pull over onto sidings and VIA Rail passenger rail that is short enough to stay on the sidings, VIA Rail passenger trains often have to wait for hours for the convenience of freight to go by.

We have not given adequate concern or attention as Parliament or Transport Canada's regulators to the length of freight trains and the fact that they are often stacking cars, and then again to the kinds of material that they are shipping. The horrors of Lac-Mégantic woke us up to what they are shipping. I do not think that any of us will ever forget the horror of the morning of July 5, 2013, of the disaster that killed 47 people.

The Transportation Safety Board had already approved what looked like a perfectly satisfactory system of safety on the part of the Montreal, Maine and Atlantic Railway. It had provided its safety management system to Transport Canada, and it was entirely legal on July 5, 2013, for an engineer to leave an idling train above a community, having set hand brakes with the assumption that the air brakes would not fail. The engineer actually set seven hand brakes when, in fact, the minimum number of hand brakes on the company chart was nine. The Transportation Safety Board has since found that nine hand brakes would not have held the train if the air brakes had failed.

As we know, the disaster of Lac-Mégantic is one of a train barrelling into a community that lay entirely unaware of the disaster that was about to befall it. Not only did the community not know that it was legal and that Transport Canada had approved a system that allowed an idling train to be left unattended with hand brakes on above a community, but no one really knew what kind of flammable and dangerous materials were on board, because it was reported as crude oil.

It was in fact Bakken shale, which is an entirely different chemical composition, and as we know, to our horror, it formed a fireball that destroyed much of that community, killed 47 people, and injured many more.

As we stand here today on May 12, 2015, are we sure that such a disaster as Lac-Mégantic could not happen in another Canadian community? Despite all the safety measures I mentioned, and in the face of Bill C-52, the safe and accountable rail act, we have to say no.

We know a lot more about Bakken shale, and there is a greater requirement that communities be notified if it is moving through the community, but Bakken shale is not the only unconventional oil. If we mix bitumen with diluent, it also becomes far more flammable than bitumen by itself.

I should mention parenthetically, because I think it is of some interest to people, that if bitumen by itself is heated so that it can be put into a railcar without the presence of diluents, it is virtually not a dangerous material at all. It cannot spill and it does not blow up.

However, we have not taken safety measures to ensure that diluent will not be moved by rail. Diluent is the stuff they mix with bitumen. It was diluent, which is toxic and hazardous, that was being shipped to northern Alberta through the city of Calgary in those railcars that were hanging so precipitously over the Bow River during the flooding when the bridge gave way. The municipal workers of Calgary had to thread cables through those railcars to keep them from falling into the river. The material in those railcars was diluent, and it was headed to northern Alberta to be stirred in with solid bitumen so that it would be capable of being shipped, whether by pipe or by rail, without resorting to steam-liquefied bitumen, which can actually be moved into railcars without adding diluent.

A wide range of toxic and and dangerous substances are being moved by rail, and I want to turn to the evidence of the Canadian Association of Fire Chiefs, as presented by Paul Boissonneault, fire chief of County of Brant Fire Department and current president of the Canadian Association of Fire Chiefs. He has pointed out a number of things that we could do to make the situation safer. One would be to divert some funding for firefighter training to assist people in communities and local fire departments to be able to confront threats. Firefighters should never be exposed to something as dreadful as Lac-Mégantic and neither should the community, but we do have a serious gap that the fire chiefs have pointed out in terms of preparation for firefighters.

They are also looking specifically at other hazardous goods. The bill deals with various forms of crude oil and the most flammable and dangerous forms of crude oil, which are not really crude at all, such as Bakken shale or bitumen mixed with diluent. However, the firefighters also point out that the propane and chlorine that move on our rails also need to be brought into the bill for further measures for safety.

We need to have much more information sharing, and the bill makes some good first steps. The bill would allow requirements relating to information sharing between railways and municipalities in response to emergencies, but we do need greater levels of detail in that information, and the communities have a right to know.

We need to do much more in strengthening the Canadian Transport Emergency Centre to be part of current regulatory activities. We need municipalities to be sitting down with Transport Canada and with the shippers to find better and safer ways. There are some that we know about; one is called “positive train control”. It is used in the United States and is in its rail safety act, although it is not fully implemented yet. It constitutes an on-board computerized system that creates very clear advance information and very immediate real-time information about where brakes are weak, where parts of the trains are overheating, whether speed is out of control, and whether there are problems on board. Positive train control is now part of the U.S. rail safety act; it should be part of ours.

We can also take steps to regulate for shorter freight trains. Braking is far more dangerous and difficult when trains are essentially too long to stop.

We have an opportunity to do much more in Canada to create real rail safety. While I will be voting for Bill C-52, I want no Canadian under any illusion that passing the bill will create a safe rail transport system. It will not, and Canadians deserve a real safe rail system in this country.

[Chris Charlton, NDP, Hamilton Mountain, ON]

Mr. Speaker, there is absolutely no doubt that protecting the public is a core responsibility of this government—of any government, for that matter—and improving rail liability and accountability measures is long overdue. It is sad that it took the tragedy at Lac-Mégantic to get the government to be serious about that responsibility.

I listened carefully to my colleague's speech. I wonder whether she would comment on a different aspect, one that she did not get to in her speech. It seems to me that one of the things that has become apparent as we have studied the Lac-Mégantic tragedy and others is that the safety of railcars is also something that we need to take very seriously.

I come from Hamilton, where we have lost over 13,000 manufacturing jobs. We all know that under the current Conservative government the country has lost almost 420,000 manufacturing jobs, yet in Hamilton we have a company called National Steel Car, which produces railcars in this country. I know that the company would very much welcome the opportunity to talk to Transport Canada and officials about how to design and build those railcars in Canada.

I wonder whether the member could comment on whether she would support a strategy that would support manufacturing jobs here in Canada, in this case specifically for railcars.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I completely agree with my friend from Hamilton. I am a former resident of Pictou County, Nova Scotia, and it was a tragedy to see railcar manufacturing by TrentonWorks moved to Mexico by its U.S. owner, Greenbrier. It had actually experienced profits every year, but it saw its opportunity for greater profits lay in moving all those jobs in manufacturing railcars to Mexico.

We need to invest in manufacturing in Canada. Given the tremendous shortage of safe railcars, we could turn this around into a business opportunity for Canada. Both Canada and the U.S. are phasing out DOT-111 railcars, which means that there is an enormous market for safer railcars with thicker walls for safer transport of goods. We should be seizing that opportunity and building railcars in Canada for sale in Canada and the United States.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the comments put on the record from the leader of the Green Party.

I have a question in regard to getting a better understanding of the Green Party's perspective on pipelines.

Many of the issues that the member referred to in her speech deal strictly with the transportation of commodities that could actually be transported through pipelines. As the leader of the Green Party, could she give her thoughts as to what role pipelines might play in that transportation? What are her thoughts on pipelines in general and on how pipelines could impact rail line traffic?

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I thank my hon. colleague for Winnipeg North for that question, because it is the subject of a lot of public debate and it needs to be addressed.

I know that the pipeline industry tried to seize on Lac-Mégantic as an argument for pipelines in a way that was seen at the time as a bit inappropriate, given the tragedy that had occurred.

Pipelines can transport many goods. If we are talking about refined petroleum products, I do not know of anyone who is opposed to pipelines moving refined goods, because the impact of a spill is relatively minor and we are keeping the jobs in Canada. However, the pipeline projects that are currently the subject of the greatest debate are Keystone, Enbridge, Kinder Morgan, and Energy East, and their common goal to move bitumen as a raw material to tidewater to be shipped to another country for refining.

I mentioned diluent earlier, which is a toxic fossil fuel condensate. Enbridge proposed to buy it from Saudi Arabia, bring it in tankers to Kitimat, put it in a pipeline running from Kitimat to northern Alberta, and then stir it into solid bitumen, because the solid bitumen, being a solid, will not flow. Enbridge would then stir in the diluent that it imported to make a mix called dilbit to put in a pipeline running in the other direction, sending it to a tanker to go somewhere else, maybe China, for refining.

The position of the Green Party is that we do not support any pipeline if the intention is to use it to ship dilbit. It is an extremely dangerous commodity in that when it spills, as the Kalamazoo River spill in Michigan has shown us, it is virtually impossible to clean up. It makes much more sense economically, as it appears new Premier Notley wants to do, to refine product in Alberta rather than try to find dangerous pipelines for risky tankers.