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.

The House resumed from May 12 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.

Business of the House

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

Mr. Speaker, we have no shortage of very important work to attend to.

This afternoon and tomorrow we will continue debating Bill C-59, economic action plan 2015 act, no. 1, to implement important measures from the spring's budget, such as the family tax cut, enhancements to the universal child care benefit and a reduction to the small business income tax.

The parties across the way have made no secret of their opposition to the excellent tax reduction measures we have proposed, and this week the hon. member for Papineau explained why. As he told the House on Tuesday, “benefiting every single family is not...fair”. Well, that is consistent with his approach to fiscal policy, that budgets balance themselves.

However, our budget implementation bill will deliver those benefits to every family, because that is the fair Canadian thing to do.

After our constituency week, on Monday, May 25, we will debate Bill S-6, the Yukon and Nunavut regulatory improvement act at report stage. This bill will improve opportunities for economic development north of 60.

After question period that same day, we will take up Bill C-42, the common sense firearms licensing act at report stage, and hopefully third reading. Unnecessary, cumbersome red tape facing law-abiding gun owners across Canada will be reduced, thanks to this legislation.

Also, pursuant to Standing Order 81(4)(a), I am appointing that day, Monday, May 25, as the day for consideration, in a committee of the whole, of all votes in the main estimates, for 2015-16, related to finance.

Tuesday, May 26, will be the fifth allotted day. We will debate a Liberal proposal. I expect the Liberal leader will explain why helping every family is not fair.

We will return to the third reading debate on Bill C-52, the Safe and Accountable Rail Act, on Wednesday, May 27, when I am hopeful that it will pass.

The following day, we will continue the third reading debate on Bill S-3, the Port State Measures Agreement Implementation Act. In debate last week, the hon. member for Charlesbourg—Haute-Saint-Charles said, “Soon, we will pass this bill”. I look forward to her NDP colleagues proving the hon. member right.

Later that Thursday, we will start the report stage for Bill S-7, the Zero Tolerance for Barbaric Cultural Practices Act, which will re-affirm this Parliament’s ongoing efforts to end violence against women and girls.

Safe and Accountable Rail Act

[Phil McColeman, Conservative, Brant, ON]

Mr. Speaker, I will be sharing my time today to speak to Bill C-52.

I am pleased to rise in my place to speak in favour of Bill C-52, the Safe and Accountable Rail Act. This is a bill that, among other things, would take accountability and liability for the rail transportation of dangerous goods and share it between railways and shippers. Together they would pay the costs associated with cleanup and compensation in catastrophic rail accidents, such as the one that took place in Lac-Mégantic.

It is great to have the opportunity to participate in this debate today, because railway safety is a top priority in my riding of Brant and in the city of Brantford. I have had regular meetings with city representatives and local officials to hear about their concerns in the wake of the recent disasters, and I am pleased that our Minister of Transport continues to take firm action to ensure greater safety and accountability on our railways.

I also appreciate having the opportunity to recognize the hard work and strong advocacy of Brant County Fire Chief Paul Boissonneault, who has shown great leadership on issues related to rail safety in Canadian communities. Paul is Canada's top fire chief, and during his tenure as president of the Canadian Association of Fire Chiefs, he has travelled across Canada working to ensure that first responders and Canadian communities are better protected when dangerous goods are being transported. He sat on the Emergency Response Assistance Program Working Group and the transportation of dangerous goods advisory council, and he has also appeared before the Standing Committee on Transportation, Infrastructure and Communities, including as part of its deliberations on this bill, Bill C-52.

He has stated that overall, the Canadian Association of Fire Chiefs welcomes Bill C-52, because it would define the liability of railways in order to provide claimants with greater certainty of compensation and because it would build upon recent government actions focused on strengthening rail safety. Chief Boissonneault continues to push for further measures to improve safety and accountability, and we look forward to continuing the work we have started with him.

The bill before us today represents another important step in the right direction. Hon. members will recall that the tragedy in July 2013 was caused by the explosion of tank cars carrying crude oil.

There has been a dramatic increase in the amount of crude oil shipped by rail. In 2008, hardly any crude oil moved on Canadian rail lines. By 2013, oil by rail had increased to approximately 10.6 million tonnes per year. By 2017, that number is expected to reach approximately 33.9 million tonnes per year.

The shipment of crude oil by rail will continue to play an important role in moving our resources to market. Even if pipelines in the east, west, and south of the oil fields and oil sands were approved tomorrow, it would be many years before they were operational. Until such time as new pipelines are available, rail remains the only real transportation alternative. Nor do railways have any option but to accept shipments of oil from their customers. The common carrier obligations of the Canada Transportation Act are a hallmark of the railway system that ensures that shippers can get their goods to market. Railways cannot turn down shipments of crude oil just because oil is volatile and is classified as a dangerous good. They are exposed to the liabilities associated with the freight they are required to move.

Railways are responsible for carrying insurance to provide compensation for the liabilities associated with disasters such as Lac-Mégantic. The bill before us would enhance insurance requirements by setting required minimum insurance levels for federally regulated railways that would take into account the potential severity of accidents. These would range from $25 million to $1 billion, based on the type and volume of dangerous goods the railway carried.

To enforce compliance, if a railway failed to notify the Canada Transportation Agency of an operational change that would affect its insurance, it would be subject to an administrative monetary penalty of up to $100,000 per violation.

As the tragic derailment in Lac-Mégantic demonstrates, accidents involving crude oil can be catastrophic in nature. To address such incidents where, despite increased requirements, the amount of railway insurance may be inadequate to pay for all liabilities, a two-tiered approach is proposed in the bill.

First, the bill before us would change the liability regime for rail accidents, including crude oil. In the event of an incident involving crude oil, railways physically or operationally involved in the accident would be held liable up to their insurance without fault or negligence having to be proven. When the cost of a rail accident exceeds a railway's insurance level, the bill provides for a way to cover the cost of such disasters without putting the burden on the shoulders of the taxpayer. This would be accomplished through the establishment of a supplemental shipper-financed fund.

This brings us to the polluter pays principle, which Canada is making a gold standard for nuclear energy and offshore oil production, and other modes of transportation, including pipelines and marine. Hon. members may be aware that Canada was a pioneer in implementing this principle beginning with the liability regime for marine oil spills. Since the 1970s, shipowners have been held strictly liable for costs and damages that result from the discharge of oil. To cover claims in excess of the shipowner's limit of liability, the government created a marine pollution claims fund, which is now known as the ship-source oil pollution fund.

This is the approach that we have applied to marine oil tankers, and it would also apply to the transportation of crude oil by rail as a result of the bill before us. In future years, it could apply as well to the transportation of other dangerous goods by rail.

Any liabilities that result from an accident involving crude oil above the railway's insurance level would be covered by the shipper-financed fund, known as the fund for railway accidents involving designated goods. The two-tiered regime outlined in the bill would share responsibility for damages from rail accidents between railways and shippers and ensure that adequate resources would be available to pay for all liabilities This approach, modelled on the marine mode, would achieve two important goals. First, it would give potential victims more certainty regarding compensation claims. Second, it would relieve taxpayers of excess liabilities that can result from an accident.

In summary, this bill would ensure that railways maintain appropriate insurance coverage. In addition, it would also ensure that their liability is clearly defined to more quickly address claims following rail accidents involving crude oil, and it would ensure that resources are available to pay compensation for all liabilities associated with an accident.

Let me be clear. The government's first priority is the safety of our transportation system, but in the event of a rail accident, the bill would ensure that the polluter will pay. I urge hon. members to adopt this bill.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, as always, it is a great honour to rise in the House representing the people of Timmins—James Bay and to speak to Bill C-52, an act to amend the Canada Transportation Act and the Railway Safety Act.

Trains play a huge role in the life and the history of our country. For any boy growing up, the thing we all wanted to be was a train. I spent my life on the Ontario Northland as a kid. My great grandfather used to be the conductor on the Sydney Flyer in Nova Scotia. He lived in Iona. a little village in Cape Breton. He used to say that the only two things that we could find in the village of Iona were holy days and MacNeills. My great grandfather was a MacNeill, so John P. MacNeill was the conductor on the Sydney Flyer. John P's great skill was that he could spot bootleggers on the platform. His eye for a bootlegger was never wrong. He always said that a man carrying a bottle of whiskey with his underwear in a bag would put that bag down with just a little more care than if there were no whiskey in the bottle.

My uncles all worked on the Ontario Northland train out of North Bay and Mattawa. In those days people either worked in northern Ontario, underground in the mines, as my grandfather MacNeill and my grandfather Angus did, or on the Northlander, like my uncles did.

I had a famous uncle who apparently used to drink a twenty-sixer every night on the run from North Bay to Timmins. They said that he was never the worst for wear, although some nights after a twenty-sixer, he would say that it was like the same as working 21 straight hours and being very tired. He did not live long enough for me to be around, but he used to tell us stories about being on those trains.

My street address is Mileage 104, which is 104 miles on the Ontario Northland railway track. Every morning there is that beautiful sound of the train whistle, going past my house, shaking everything in the foundation. It used to carry people but not anymore. The provincial Liberal government of Kathleen Wynne decided that people in northern Ontario were truly second-class citizens and did not merit public transit.

Public transit is something that belongs in urban areas and to urban voters, but people in northern Ontario are somehow second class. Therefore, the Liberal government set out to destroy a 100-year-old public institution, which is the Ontario Northland Transportation Commission.

What passes by my house daily now is the wood going south, the way the wood has always gone south, and tanker cars full of sulphuric acid from the smelter in Rouyn-Noranda, Quebec. The trains used to carry product from the smelter in Timmins, but the Liberals also allowed that to be killed because of their idiotic hydro pricing. We are used to seeing things being shipped out of our region on the train, but we used to be able to ship our people back and forth

Just this past weekend I had the great honour and great joy of travelling on the VIA train between Toronto and Ottawa. It was just like being a little kid again, getting on the train, the smell of the train, the feel of the train and the conductors. I felt the same excitement, but I felt a real sense of sadness. For so many regions of our country, the idea of a coherent national transit strategy, including trains, is being seen as somehow something that belongs in the 19th century as opposed to a very 21st century method of travel. I hope to us restore proper train transportation into our regions in the near future, when a New Democratic government is elected in Ontario and we get rid of that corrupt Liberal government.

The Ontario Liberals could learn that their right-wing austerity premier will be a footnote in history like Alison Redford, having promised to be a progressive premiere and then turning her back on the people. From our colleagues in Alberta, we can see how we can elect a progressive woman and actually get it.

I want to speak today about the importance of the safety transportation changes that are coming, changes that need to happen. We have seen an enormous shift in the movement of goods. Over the last five years, there has been a 28,000% increase in the transportation of fuels from western Canada, particularly on the rail lines. Trains are carrying fuel from the Bakken fields, which we know is highly combustible. They are also carrying diluted bitumen and heavy crude.

The incredible increase of this transportation on the transit system has raised serious questions about issues of safety, particularly when we saw the tragedy at Lac-Mégantic.

However, warnings about a potential rail tragedy have been discussed in Parliament for many years. I remember being here in 2004 and trying to get the Liberal government of Paul Martin to see some common sense, which it refused to see. The Liberal government believed that privatizing, allowing companies to look after themselves, getting rid of inspectors and saving money for the government would somehow make things better. Therefore, the Liberal government brought in changes to the Railway Safety Act. The Liberals went to the self-management system and told us that was the future.

It was just like the Liberals told us at that that they could do the same thing for the banking rules. The push at that time was to change Canada's banking laws to allow the banks to self-regulate. We were told in the House of Commons that the NDP was somehow the nanny state NDP because we said that we needed rules around banking. However, at the time, my Liberal colleagues thought that the great future was in City Bank and the amalgamation and investment that was happening in the United States. We saw how that ended up.

In good times, it is easy to say that we do not need regulation. In good times it is easy to say that we should let everything happen and things will carry on. We know our role as regulators is to ensure we have basic rules in place to protect people from potential accidents.

After the changes that came in under the Liberals in self-management, we found there was a whole series of increases in accidents, but because the companies were self-managed, they did not bother to report them. The Transportation Safety Board in 2005 became suspicious of CN's accident numbers compared to other operators. All of a sudden there was a large discrepancy of the number of derailments or lack of derailments. It turned out that over 1,800 derailments and accidents were simply not reported, including 44 that happened on key rail arteries. We have oversight because we want to ensure that when companies are self-regulating, they do not do what they did at that time, which was simply not bothering to report. This is a very serious issue, particularly in light of the accidents we have seen recently.

In my region of northern Ontario, we have had three serious train derailments on the rural subdivision at Hornepayne and two at Gogama. The last two incidents were February 14 and March 7, with CN freight trains carrying between 94 and 100 cars. The March 7 train was 6,089 feet long. A staggering amount of crude oil was being carried on that track.

They had come on the rural subdivision that exists between Capreol, in the south toward Sudbury and Hornepayne. It is primarily composed of a continuous welded rail and is classified as class 4 track under the transportation safety rules. Class 4 is the second-highest rating and allows trains to travel 60 miles an hour for freight and 80 miles an hour for passenger trains. However, we do not see many passenger trains anymore in the north. There were a number of slow orders given because of problems along that track. We had the accident on February 14 at Gogama and then again on March 7. At the time of the March 7 derailment, the eastbound freight was moving at 43 miles an hour and at 2:40 in the morning, at a temperature of -10C, the train jumped the tracks and cars spilled into the Mattagami River.

What was very disturbing about the 700 feet of track that was destroyed at that junction and the cars going in was that a great deal of work had happened in our region in terms of the Mattagami River, which is one of the great northern river systems feeding into James Bay. A lot of work has been done to secure fisheries and build up spawning grounds. Having heavy crude pouring into and burning across that river system was certainly deeply disturbing for residents of my region. They see that as one of the great river systems of northern Ontario.

The issue of transportation safety, given the huge increase in combustible fuels that are being transported on trains, is very serious because many communities were built on the rail line. Therefore, trains actually travel through the centre of many communities across western Canada and northern Ontario. In Sudbury, cars sit at lights as trains speed by. If the Gogama derailment had happened in an urban area, it could have been a tragedy in the nature of Lac-Mégantic.

What do we do to alleviate this? Whenever we talk about the transportation of dangerous goods, whether it is through a pipeline or by rail, we have to ensure there are rules in place for oversight and public safety. There are some very positive elements in this bill, which the New Democrats will be supporting, such as putting in place minimum insurance levels for railways transporting dangerous goods based on the type and volume of goods being transported and also establishing a disaster relief fund to deal with accidents such as occurred in Lac-Mégantic.

There have also been a number of changes, including increased powers for inspectors. This is important to have. Is this enough? Given the potential damage that could be caused by a catastrophic train derailment, perhaps not. We need to speak to this. The issue of polluter pays is a fundamental principle that Canadians agree with and in improving rail liability and accountability, we do not want the public on the hook for any potentially catastrophic disaster. Therefore, the question is how to establish a regime that is still profitable and able to transport goods by rail. We want to ensure that rail remains a profitable system, while also assuring the public that in cases of liability, there will not be fly-by-nighters, like happened at Lac-Mégantic, saying that they do not have any money and wanting to skip town. That is not good enough, not when lives and the environment are at stake.

Essentially, Bill C-52 would require minimum insurance levels for railways transporting dangerous goods and would establish a disaster relief fund paid for by crude shippers. However, regarding the issue of minimum insurance levels from $25 million for companies transporting low-risk goods up to a maximum of $1 billion for railways transporting high-risk goods, the question is at what point we would get to a level within the fund where money would available to offset a potential disaster.

I would like to compare what happened in Gogama with the situation in Kalamazoo. In the Kalamazoo blowout, it was a pipeline and not a rail disaster, but that pipeline was carrying raw bitumen. When the bitumen hit the water, cleaning it up was not so simple. In fact, it has cost over $1 billion to attempt to remediate the bitumen in the Kalamazoo River. Bitumen is a very difficult and dangerous product to deal with, especially when it sinks to the bottom. The chemicals that are involved make it a very different issue.

Whether we are talking about pipelines or rail, we get back to one of the root issues, which is that we need to move toward upgrading at source as much as possible to limit the potential for environmental damage. Also, we need to ensure that we see the benefit of whatever we produce in Canada, in terms of natural raw materials, as much as possible. We need to have discussions in the House of Commons about how to limit the environmental damage from such massive projects, because we are in a world that deals with the potential for catastrophic climate change and the government has literally buried its head in the oil sands, refusing to deal with its international obligations.

However, as Canadians, we need to deal with this. Canadians feels very inspired to take action on this. We have seen, with the recent New Democratic Party win in Alberta, that Albertans are deeply concerned about how we make developments that are sustainable, how to limit the impact of greenhouse gases, how to ensure that if we transport our incredible natural resources, which we are blessed with right across the country, we get the maximum benefits, so that Canada is not just a place where the ground is ripped out and products are shipped to refineries in Texas or to China, but we see the benefit from that.

These are all interrelated issues that really need to be discussed in Parliament. We need to have a national conversation about where we are going with this.

The bill, in response to the situation in Lac-Mégantic, is a good first step. As I said, we in the New Democratic Party have many questions about whether this insurance is enough. We certainly question some of the numbers.

For the 200,000 barrels of oil transported daily, Transport Canada estimates that oil levies would contribute about $17 million annually to general revenues. This is a step forward, but there are certainly outstanding concerns. We would need to have the levy in place for about 15 years before we reached the $250-million level where it believes we would be able to respond to any level of crisis. I would again point to Lac-Mégantic. It cost $400 million for the damage done in that one accident. Therefore, this levy would certainly not be enough.

Under the legislated summary we received from the Library of Parliament, the act would amend the Railway Act to allow a province or municipality that incurs costs in responding to a fire that was, in its opinion, the result of a rail company's railway operations to apply to the Canada Transportation Agency to have those costs reimbursed by the rail company. That is an important role, but we also need to work closely with municipalities. They are very concerned about the kinds of dangerous goods being transported through their communities and the need for plans to make sure that if something did blow out, such as in Toronto, where the rail line comes right through parts of the city, we would all be working together on this.

The Canadian Federation of Municipalities certainly supports what the New Democrats have been saying. It is interested in the issues of insurance and liability. Brad Woodside, who is president, called for a “comprehensive approach that makes railways and crude oil shippers pay the full costs of rail disasters, and not leave municipalities and taxpayers footing the bill”.

That is a fundamental principle. It should not be the taxpayers of the country who are subsidizing these operations. These operations need to be profitable in their own right, and they need to carry the cost of the potential damage through proper insurance.

The Railway Association of Canada believes that the compensation fund should cover the cost of not only crude oil but other dangerous goods, such as chlorine, which is a very interesting element. In my region, they are carrying tanker cars full of sulphuric acid on the rail lines. I remember a number of years ago when the ONR line went over just south of Temagami and pretty much destroyed a lake because of the amount of sulphuric acid that entered the water. These rail lines are carrying very dangerous goods at times, and we need to have that overall policy.

The Canadian Transportation Agency has said:

The tragic derailment in Lac-Mégantic has raised important questions regarding the adequacy of third party liability insurance coverage to deal with catastrophic events, especially for smaller railways.

This is another important issue in terms of what we saw at Lac-Mégantic, where we had a small, fly-by-night company that, when the damage was done, simply was not going to be around the next day to deal with it.

In closing, this improvement in rail safety and the creation of a fund is important, but we still need to have that conversation about how to ensure that the industry is covering off its own costs so that municipalities, provinces, and the federal government are not on the hook. We need to make sure that the federal government maintains an active role. After those years when the Liberal government allowed self-regulation and we saw numerous increases in accidents and a decline in safety, we need to make sure that there are independent inspectors and that the companies are accountable.

Finally, we need to continue the national conversation about how we are going to process oil, bitumen, and other natural resources in our country.

[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.

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.

Railway Safety Act

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I thank my colleague for introducing Bill C-627, which I will be talking about. This bill is a step in the right direction, but it underscores the gaps in existing regulations.

The NDP has long criticized the fact that companies are allowed to self-regulate and self-inspect. The objective is to provide powers to the minister and inspectors so they can intervene if there is a problem.

However, there are not enough inspectors. We have been looking at this issue for a long time in committee, and the problem has not necessarily been solved. Yes, we can grant more powers, but if there is nobody on the ground to ensure that rails and crossings are safe, that does not solve the problem. The Conservatives have cut the budget for rail inspection by 20% since 2010. The government is not investing in inspections.

I support the bill since it is a step in the right direction, even though it is a private member's bill and it conflicts somewhat with Bill C-52, which I talked about earlier. The fact that members have to fix government rail safety regulations shows that there are problems.

What is funny is that in committee, we examined Bill C-627, a private member's bill, before we examined Bill C-52, but we debated Bill C-52 first. Bill C-52 really should have contained mechanisms that referenced Bill C-627. It is a bit complicated and it shows that the government did not do its homework with regard to rail regulations. The government is rushing to fix things after the Lac-Mégantic tragedy, and it is improvising quite a bit.

In short, I will support the bill because it is a step in the right direction. However, the government could do more in terms of rail safety.

Safe and Accountable Rail Act

[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.

[Jeff Watson, Conservative, Essex, ON]

Thank you very much to our witnesses for appearing.

My apologies right off the top. I was speaking in the House, so I missed your opening presentations. I was speaking to Bill C-52, our safe and accountable rail act, which was important. If any of my questions relate to something that I may have missed, you'll understand why.

First of all, Mr. McBride, I think earlier you suggested that the so-called rise of public-private partnerships came out of problems identified with traditional procurement. I've been listening closely today, and I think you mentioned only three of the four. I wasn't sure what the last one was. You said the first one was when you pay but you don't necessarily get what you want. The second was that creditor oversight is a strong discipline on the contractor. The third was the tendency to ignore the life cycle of an asset when doing design and build only. What was the fourth?

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Speaker, I am truly honoured to rise in this place today to speak to this very important piece of legislation. I represent the great riding of Wetaskiwin, which has major rail lines in it, both CP and CN. Constituents in that large rural riding know the value railways have, and I take very seriously the importance of the safety of the operation of the railways in that riding.

Before I go on, I would like to advise that I will be sharing my time with the dapperly dressed member for Elgin—Middlesex—London, who will, I am sure, enlighten the chamber with his thoughts as well.

I rise today to speak in support of Bill C-52. It is a good bill. It is the safe and accountable rail act, which would reinforce the government's polluter pays principle for the rail sector.

The polluter pays principle holds industry accountable to Canadians and supports responsible resource development. It also reflects Canadians' expectations about making responsible parties pay the costs of the accidents they are responsible for.

The polluter pays principle is a key part of the modernization of the liability and compensation regime in other sectors, including the marine sector, the nuclear sector, pipelines, and offshore oil and gas. A number of those bills have already been brought before the House, where we have made exactly the same kinds of legislative changes when it comes to the polluter pays principle in dealing with absolute liability and so on.

In voting for this bill, parliamentarians will be supporting this important principle. This is our government's objective: to ensure that sufficient funds are available to compensate victims of railway accidents and to pay for cleanup costs in the event that those things may happen.

The polluter pays principle means, first, that railways pay the cost of accidents for which they are responsible. Therefore, we are proposing that each railway be required to hold a minimum amount of third-party liability insurance to cover the cost of an accident. This is a good thing. This would give a level of assurance to Canadians that their tax dollars would not be used when it comes to an accident, cleanup, or spill or any of the other damages that might be associated with a minimum level of liability. These minimum insurance levels would be established in the legislation so that they were clear and transparent and so that Canadians would know what they could expect.

With this approach, Canadians would be reassured in the wake of something like the Lac-Mégantic tragedy that railways would have enough insurance to cover these costs when accidents, unfortunately, may happen in the future.

These insurance levels are based on risk. It is an insurance program, and it will be based on risk, as any other real insurance program is. They were developed based on an analysis of rail accident cost data and the potential severity of incidents involving certain types of dangerous goods. The levels range from $25 million to $1 billion, based on the type and volume of dangerous goods the railway may carry. When the new regime comes into force one year after the bill's royal assent, railways that carry little or no dangerous goods will be required to carry $25 million minimum in insurance.

Requirements for railways carrying higher amounts of specified dangerous goods, including crude oil, would be phased in over time. Initially, the railways would be required to carry either $50 million or $125 million of insurance coverage. One year later, those requirements would increase to $100 million or $250 million of coverage.

Railways moving substantial amounts of specified dangerous goods, such as our major national railways, CN and CP, would be required to carry a minimum of $1 billion in liability insurance.

We have heard that some short lines may have difficulty adjusting to the enhanced insurance requirements or that the increased costs may affect their viability. However, as the Lac-Mégantic incident has shown us, accidents involving smaller railways carrying dangerous goods can result in catastrophic damages. It is for this reason that the government committed to hold railways more accountable through enhanced insurance requirements.

Phasing in the highest levels of insurance for short lines at $100 million and $250 million would help mitigate concerns and provide the railways required to hold these amounts with sufficient time to adjust. We do not expect that railways required to hold either $25 million or $1 billion in insurance would need additional time to adjust, so those levels would take effect immediately after the legislation comes into force. This is only fair.

Railways would have to notify the Canadian Transportation Agency of any changes affecting their insurance coverage. The agency could make inquiries to ensure compliance, and the insurance requirements would be enforceable through penalties of up to $100,000 per violation. These measures would ensure that railways were properly insured for their operations.

Another important component of the bill is the polluter pays principle and its clearly established liability in this legislation for railways.

Under the bill, railways would be liable up to their minimum insurance level, without the need to prove fault or negligence—and I have to stress that, without the need to prove fault or negligence—for a railway accident involving crude oil or any other designated good.

As our 2013 Speech from the Throne commitment implied, the railway is not the only responsible party in a railway accident that involves goods such as crude oil. Our government committed to requiring both shippers and railways to carry additional insurance, so that they are also held accountable.

Shippers of dangerous goods like crude oil are a part of the polluter pays concept for the railway sector. This is because such goods have inherent characteristics that contribute to the severity of an accident.

Accordingly, the bill would provide for a mechanism to share liability for accidents more broadly between shippers of crude oil and railways. This would be done through a shipper-financed fund that would supplement a railway's insurance if and when necessary. The fund would be triggered once the cost of a crude oil-related railway accident exceeds a railway's insurance level.

The fund, combined with the insurance levels, would protect potential victims and pay for environmental cleanup and restoration. It would also reimburse governments for the cost of responding to a railway accident.

This two-tiered approach—the insurance and then the fund for any accidents that go over the insured amount—would provide a broad range of coverage for damages in the case of a crude oil railway accident. Higher insurance levels would ensure that railways have more resources available to pay for their liabilities. For accidents involving crude oil, the fund would insure that all other damages and losses were compensated.

This regime would equally cover all actual loss or damage incurred, including damage to people, property, and the environment. The costs incurred in responding to the accident might also be claimed. In addition, the federal or provincial Crown may seek compensation for the impairment of non-use value of public resources.

We are focusing on crude oil because this is a dangerous product that is moved in large quantities by rail over long distances and is a particular concern for Canadians following the Lac-Mégantic tragedy. However, recognizing that other goods have characteristics that could also contribute to the severity of an accident, we have provided the option of adding other goods to the fund in the future by regulation.

Shippers of crude oil would contribute to the fund through a levy of $1.65 per tonne shipped. This levy would apply to any shipment of crude oil carried by a federally regulated railway including a shipment originating from the United States or on a provincially regulated short line.

Capitalizing the fund to $250 million initially would provide substantial additional coverage for crude oil accidents, but this is a notional amount and certainly not a cap on the fund. The bill would allow the minister to discontinue and reimpose a levy as necessary.

Based on a reasonable projection of oil-by-rail traffic growth in the coming years, we determined that a $1.65 per tonne levy on rail shipments of crude oil would likely generate $250 million for the fund in approximately five years. However, the bill provides flexibility for the levy to continue longer than five years should oil-by-rail traffic grow at lower than expected rates.

It is important to emphasis that. Regardless of the capitalization target, the fund would cover all rail accident costs above railway insurance. In the unlikely event that damages exceed the amount being held in the fund, the consolidated revenue fund would provide a loan to cover the shortfall and pay the remaining claims. Any loans from the consolidated revenue fund would be recouped from the industry through levies. These measures are also to reinforce the polluter pays principle.

As I conclude, I want to urge all members to think carefully about how they are going to vote on this piece of legislation. Canadians are counting on us to make a good decision on their behalf.

As we have seen, the accidents have happened in Lac-Mégantic and in my riding of Wetaskiwin, where there are so many communities right on the CP and CN lines. We start out in places like Millet and Wetaskiwin and go down through the Maskwacis area, through Ponoka, Lacombe, and Blackfalds, through Red Deer, and so on; and the CN line goes out in the eastern part through communities like Mirror, Gwynne, and so on. These are communities that are near railway crossings.

The railway traffic in Alberta has increased tremendously over the last number of years with the expansion of oil sands projects and the inability of some pipeline companies to get their projects approved. We have seen an increased dependency on rail for the movement of these items, so it is very important to reassure my constituents, and reassure not only Albertans but any people who have a rail line going through their community, that there will be the coverage available and it will not be at taxpayers' expense as it was with the absence of this legislation, unfortunately, as we saw at Lac-Mégantic.

This is very important legislation, and I encourage all colleagues to vote for it. While they may have criticisms of the bill, or they may want to play politics with this bill, in essence, it would be a sad commentary if we could not come to an agreement in the House that the bill, while it would never be perfect for 308 members, certainly is good enough to be passed into law before we rise for the summer.

[Hoang Mai, NDP, Brossard—La Prairie, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-52 at third reading.

As the NDP transport critic and vice-chair of the Standing Committee on Transport, Infrastructure and Communities, I found it interesting to study this bill.

I agree with the Liberal member who said in his question that there was not enough consultation and perhaps not enough study. Indeed, the study period was relatively short for such an important bill.

Let me be clear: the NDP will support the bill. We believe that the polluter pays principle is important. Clearly, it was only after the Lac-Mégantic tragedy that the government finally decided to do something about rail safety. Unfortunately, it took a tragedy to finally spur the government to action, a tragedy that cost 47 people their lives, cost millions of dollars in damages and ruined many other lives.

It is sad that previous Liberals governments and the current government have been ignoring rail safety, the very principle of our rail system, ever since the Liberals privatized it. The problems only started when they privatized everything. They also left all the regulations, even inspections, up to the rail companies themselves. As we often say, the system that was implemented is based on self-regulation, and all the companies do their own audits and inspections. That is very clear.

This bill does have some very important points. As I have said from the beginning, we support the polluter pays principle. Obviously, it is not up to the public to pay for damages caused by the industry.

In the case of the Lac-Mégantic accident, MMA had only $25 million in liability insurance. When I asked the minister and Transport Canada officials about the cost, I was not able to get any firm figures, since the numbers vary. Apparently, $400 million has already been spent to repair damages. However, it could cost billions of dollars in the end. That is a huge amount of money.

Unfortunately, governments must pay because MMA filed for bankruptcy. The federal and the Quebec government had to spend money to repair the damage. When I refer to damage, I am also referring to the damage caused by the Conservative government for allowing self-regulation at a time when the rail transportation of crude oil has increased exponentially.

As for the budget, we see that there are gaps, and that has been raised many times. The government says it is taking action. However, there are budget cuts.

Let us look at just the office responsible for rail safety, the people who specifically look after implementing the system and ensuring that it is safe. We see that between 2010 and 2015, there were cuts of about 20%. Those cuts affected the people who look after rail safety and ensure the safety of Canadians. That shows that the government does not have its priorities straight.

We agree that there must be minimum liability levels. Once again, we deplore the fact that this was not the case earlier and that a company like MMA, with respect to Lac-Mégantic, only had $25 million in insurance coverage.

This bill is certainly a step in the right direction. It contains various categories for many rail companies, which will have to have minimum insurance levels based on the volume of dangerous goods shipped via its rail lines.

However, I asked the parliamentary secretary a question about the calculations. We wanted to know whether the amount established was sufficient. I gave the example of class 1 railways, like CN and CP, that have minimum insurance coverage of $1 billion. We learned from the news or other studies that these companies probably already had insurance coverage in excess of $1 billion.

Ultimately, the government reduced the amount of insurance coverage companies are required to have, when the purpose of the bill is to increase it.

Unfortunately, as the parliamentary secretary mentioned, when we asked questions in committee we were told that the information belonged to the railway companies. However, the government has the power to get that information. The Conservatives are the ones who did the study regarding the insurance limit, and once again, they are not being transparent. That is shameful.

The parliamentary secretary spoke about the additional powers granted to inspectors and to the minister in cases where tracks are not safe. That makes me think about what happened in Gogama, in northern Ontario, where other derailments occurred. They happened despite the events at Lac-Mégantic and the public outcry in regard to the dangers associated with the transportation of dangerous goods by rail. I think that, like me, any Canadians who saw the pictures were shocked to find out that this type of derailment is still happening. Cars carrying crude oil are still exploding.

The parliamentary secretary told us that the government introduced new standards for the DOT-111 cars, which will eventually be replaced. However, it will be another 10 years before they are all replaced. These cars will still be on our tracks for another 10 years, even though the Transportation Safety Board described them as dangerous and unsafe. The TSB said that these cars were essentially the same as the old DOT-111 cars that exploded in Lac-Mégantic.

This concern has to be taken into consideration. I am asking the government to set a deadline and show more leadership when it comes to protecting the public.

There is also the issue of inspectors and self-inspection. The system that was put in place and that has the support of the Liberals allows companies to do their own inspections before potentially, maybe, submitting them to Transport Canada for inspection.

The Auditor General issued a scathing report on rail safety. He said that the inspectors overseeing the safety of the system did not fulfill their obligations and that all they do is look at the rail company's plans without ensuring that they effectively protect the environment and the public. That is a problem.

Another problem with inspectors has existed for a long time. Let us take the example of the derailments in Gogama, which caused explosions. According to the TSB's preliminary report, the condition of the rails was definitely a factor. When we talk about inspectors, the government responds that the companies do the inspections themselves and that it expects companies to properly inspect their rails. However, it is careless to rely on self-inspection.

Before the events in Lac-Mégantic in 2013, there were 116 rail inspectors at Transport Canada. After the events in Lac-Mégantic, there were 117. The government added just one inspector. It seems that others were hired, but they are not officially assigned to rail safety.

What is certain is that all of the workers and unions in this sector agree that there is a problem with inspection. Even the rail companies, as well as the Railway Association of Canada, report the same problem. It is clear that there is a problem.

The government, meanwhile, is addressing this problem by making budget cuts. It makes no sense.

How can the government say that it cares about the safety of Canadians and then turn around and cut the budgets of those who conduct inspections and make sure that laws are in place and that the companies are complying with them, as well as ensuring that the rail lines themselves are safe? It is shameful.

As for the polluter pays principle, I applaud the fact that the bill provides for a compensation fund. Unfortunately, as my NDP colleague mentioned in his question, this fund applies only to accidents or disasters involving crude oil.

One question was raised by the Federation of Canadian Municipalities, the Canadian Association of Fire Chiefs and a number of other stakeholders who appeared before the committee. Why did the government not include other dangerous goods? The Conservatives were asked that question today. They replied that they were studying the issue and they would see. Do we need to have another accident like the one in Lac-Mégantic for them to realize that something has to be done? It is important to raise this issue. This is not about demagoguery. The government did indeed act after the Lac-Mégantic tragedy. The government has even said that this bill resulted from that tragedy. Why not also include a compensation fund for other dangerous materials, since that is a concern and the municipalities and first responders are asking for it?

Let us come back to firefighters. A question about training was raised by the Canadian Association of Fire Chiefs, a question that we had also brought forward. Yes, the aim is to prevent accidents. However, prevention depends on inspection. As we know, the government is failing in that regard. What must be done to prevent an accident, or at least to respond quickly when one does occur? How can we ensure that first responders are properly trained and that they have the resources they need?

Unfortunately, this bill is silent on that issue. This is what firefighters, among others, proposed: since there is already a fund in place—once again, I am referring to the fund established from fees paid by oil companies—why not use it to pay for training to ensure that first responders, firefighters and those who respond to emergencies receive the training they need?

This problem has been flagged and it is a serious problem, especially because we are shipping more and more dangerous goods by rail. Furthermore, based on the Lac-Mégantic accident and what is happening in the United States, for example, we can say goods are increasingly dangerous and there is less and less information about these goods. That was clearly the case in Lac-Mégantic. The dangerous nature of the goods being moved was underestimated.

Legislators or those who implement the regulations are not well informed. What about the people who respond to emergencies? What we are asking for is simple. We are asking for a fund to cover training for first responders such as firefighters and paramedics. How do we intervene in this situation? The Lac-Mégantic accident opened our eyes.

The bill could have covered this, but unfortunately it does not. There is still work to be done. As I said, the NDP will support the bill and hopes that it will pass quickly. However, there is still a lot of work to be done.

In committee, an amendment did not pass. It dealt with fatigue, or what is known as fatigue management.

The bill actually repeals a clause, repeals the definition of fatigue management, and we do not understand why. Just to be clear, what the definition basically said is that we have to base fatigue management on science, and what we are doing here is actually repealing that definition.

I asked the minister and officials, and the answer was not satisfactory. I think we want to make sure that we have a base, and our base was the definition of fatigue management, fatigue science. It was scientifically based, but unfortunately, that was deleted.

We will have to take a close look at the regulations. Unfortunately, from our perspective, the approach was going in the wrong direction.

We did not anticipate one of the other consequences that witnesses told us about in committee, namely the fact that some companies do not do the same kind of transportation for dangerous goods. Some companies transfer oil and other goods in certain places. These companies, therefore, do not transport goods the same way and do not have the same problems. This concern was raised, and I asked questions about it. I was told that these cases can be addressed through regulations. I asked the question clearly and openly, and now we will have to follow up. We have to figure out how to treat companies that do not pose the same risk but that transport goods that are, by definition, dangerous. We have heard that the costs can be quite high for these small companies. We are talking about smaller companies that might not have the means to pay for this insurance. As legislators, we need to trust Transport Canada and its officials to take that into consideration. We will keep a close eye on this issue.

There is something else we are disappointed in. It was already mentioned, and that is the fact that the environment has been put on the back burner. Certain priorities have been set out in the bill. We agree that municipalities or individuals who are victims of accidents should be compensated and helped at any cost. There is no doubt that they must compensated. However, the wording of the bill puts long-term environmental impacts in the back seat. The request cannot necessarily come from an individual who says he can no longer use a certain natural resource for the long term, a river for example, and that his rights have been violated in the long term. According to the current wording of the bill, only the government can go after the railways and say that they caused damage that undermines the long-term use of the environment. However, we know that in fact the government does not do that. It will not go after a company for damages. We are a bit surprised to see that this aspect does not have the same priority in the bill. We would have preferred it to be considered on an equal footing.

I would like to come back to the question that we asked ourselves: why did the government not go further in terms of coverage for dangerous materials? The reason I am mentioning this again is that the committee was almost unanimous in this regard. Firefighters, the Federation of Canadian Municipalities and the oil industry all asked us why the bill only went after oil companies or crude oil and why it did not provide for a fund that would cover other dangerous goods, since we know that other dangerous materials are being transported on our tracks. I asked the government that question. I was told that the matter was being looked into. I would have liked a more concrete answer.

However, we did obtain a more concrete answer in regard to what the Parliamentary Secretary to the Minister of Transport said about the cars. He said that there will be new standards for the cars. However, the United States announced that a braking system will be implemented and gave us a timeline.

The government established a deadline of 10 years for oil cars, but as we said, we would like that deadline to be shorter. The United States said that the braking system for cars was a safer system. Unfortunately, the government did not give a deadline in that regard in its announcement.

The government told us that it was looking into the issue, but it has not even set a deadline yet.

We need to learn from our mistakes. Twenty years ago, the Transportation Safety Board of Canada said that the DOT-111 cars were dangerous. The Liberal government did not do anything about it. The federal government did not do anything either and the Lac-Mégantic tragedy occurred. We need to think about that. The government needs to act quickly, show some leadership and protect the public.

[Jeff Watson, Conservative, Essex, ON]

Mr. Speaker, I only wish there were more facts involved in that particular intervention.

As the member will know if he studies the estimates, investments in front-line safety in every single mode of transport are up this year. That is in marine, rail, air safety, every single mode.

The department has suggested what resources it needs. Obviously, that is what the main estimates are for. There are also supplementary estimates should it become clear that the department needs additional resources to carry out its mandate.

Make no mistake that Bill C-52 is the product of extensive consultations, particularly when it comes to the liability and compensation regimes. We have heard from the railway companies that they would rather not have strict liability insurance. They do not want the strict measures that are in this particular bill. I would expect that from the railway companies. That is fair enough; they can take that position. The government, though, after that consultation and after listening to their position has determined that they will face tougher insurance levels, that there will be strict liability and therefore we will not have to prove their claims in court up to the maximum level of their liability.

Shippers also will share in that particular liability and compensation regime. They did not want to do that either, but we know that is the right way to go. Canadians support us in enhancing our system.

[Jeff Watson, Conservative, Essex, ON]

Mr. Speaker, I think all of us in the House would agree on this. The practice of using slow speed by railway companies is no substitute for proper track maintenance. We expect rail companies to ensure that their property is well maintained in that way.

When it comes to the regime that has been instituted with respect to liability and compensation contained in Bill C-52, we did extensive consultations. One of the things that we are grappling with as a recent phenomenon has been the tremendous growth in the transport of crude oil by rail. By crude, I mean the many different forms, including the highly-flammable Bakken formation oil as well. That was the particular dangerous good involved in the tragic Lac-Mégantic derailment. We wanted to ensure we had an adequate regime for that.

The member will know that the bill does contain a provision in it for the regime to be expanded at any point in the future to deal with other dangerous goods, should that be determined necessary.

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

Mr. Speaker, I am pleased to rise today to commence third reading of Bill C-52, the safe and accountable rail act, which seeks to amend both the Canada Transportation Act and the Railway Safety Act.

As parliamentary secretary to the Minister of Transport, I have the great privilege to be a member of the Standing Committee on Transport, Infrastructure and Communities and to have been able to take part in the study of this extremely important piece of legislation.

Before I speak to the important points raised during committee stage, I would like to take a few minutes to remind all members of this place of the important components of this legislation, beginning with the important amendments to the Canada Transportation Act.

As stated by the Minister of Transport at committee, the tragic Lac-Mégantic derailment has shown us that our liability and compensation regime for rail must be strengthened. The Montreal, Maine and Atlantic Railway only carried $25 million in third-party liability insurance, which we now know is not nearly enough to cover the incredible magnitude of the resulting damage and loss of both life and property that night.

With this bill, railways would be required to hold a mandatory level of insurance based on the type and volume of dangerous goods they carry. These levels would range from $25 million for short lines carrying limited or no dangerous goods to $1 billion for railways carrying significant amounts of dangerous goods, namely CN and CP.

These mandatory insurance requirements have been set based on analysis of historical accident costs, taking into account the severity of past accidents involving certain goods. These requirements would make certain that a railway's insurance directly reflects the risk associated with its operations.

These insurance levels were determined to be adequate to cover the cost of the vast majority of potential accidents and, while a scenario of the magnitude of Lac-Mégantic is an extremely rare occurrence, we want to be certain that all costs in such a case would be recovered.

That is why a supplementary shipper-financed fund would be created to provide compensation above the railway's insurance for accidents involving crude oil and any other goods added through regulation.

In the event of a rail accident involving crude oil, railways would be automatically liable, without the need to prove fault or negligence, up to their insurance level, and that would happen immediately.

The bill provides that they would be liable for all actual damages, which includes damages to people, property, and the environment. There would be certain defences to this strict liability. A railway, for example, would not be held liable if the accident were a result of war, hostilities, or civil insurrection such as a terrorist act, as these occurrences are outside of the railway's control. If accident costs reached beyond the railway's mandatory insurance level, the supplementary fund would cover the remaining damages.

For the supplementary fund, we have included a broad definition of crude oil in recognition of the serious damage that all crude can cause if released. Even a less-volatile crude can have a grave impact on the environment and result in very high remediation costs.

The fund would be financed through a levy on shippers of $1.65 per tonne of crude oil transported by federally regulated railways, indexed to inflation. The aim is to capitalize the fund to $250 million, which is an amount that would provide substantial additional coverage for crude oil accidents above the insurance levels. Based on a reasonable projection of oil-by-rail traffic growth in the coming years, we have determined that, with the $1.65 per tonne levy, we would reach that target in approximately five years.

That said, however, it is important to emphasize at this point that the $250 million capitalization is a target and not a cap. The bill would allow the Minister of Transport to discontinue or reimpose the levy as necessary.

This means that the levy could continue longer than five years should oil-by-rail traffic grow at lower than expected rates. It also means that the fund could be capitalized to a different amount should that be considered appropriate.

Just to be clear. The fund will cover all costs above the railway's insurance and will not be capped. In the unlikely event that damages from a crude oil accident surpass both the railway's insurance level and the amount in the supplementary fund, the government's consolidated revenue fund would back up the compensation fund and would be repaid through the levy.

Bill C-52 also propose amendments to the Railway Safety Act, which would seek to further strengthen the oversight of Canada's rail safety regime in certain areas. These include the following: first, a new power for the Minister of Transport to order a company to take corrective measures should that company's implementation of its safety management system risk compromise safe railway operations; second, a new authority to regulate the sharing of information, records and documents from one party to another, other than the department, for example, from a railway company to a municipality; third, to broaden railway safety inspectors' powers to intervene in a more effective way with any person or entity, including companies, road authorities, and municipalities, to mitigate threats to safety; fourth, a broader power for the Minister of Transport to require a railway company, road authority, or municipality, to stop any activity that might constitute a threat to safe railway operations, to follow any procedures, or taking any corrective measures specified; and, finally, a cost reimbursement scheme for provinces and municipalities that respond to fires determined to be caused by a railway company's operation.

Part of Transport Canada's prevention strategy has been to ensure the department has an effective oversight regime. This means both ensuring that industry is in compliance with the various rules and regulations that govern them and also responding to changes in the risk environment.

Transport Canada continuously examines and monitors its resource levels to adjust and reallocate, as needed, to address emerging issues, trends and higher-risk issues.

Transport Canada has further enhanced railway safety in Canada by establishing the following new or amended regulations: grade crossings regulations; railway operating certificate regulations; railway safety management system regulations, 2015; transportation information regulations; and railway safety administrative monetary penalties regulations.

Allow me to refer back to the review of the bill at the committee stage.

The review of Bill C-52 provided the opportunity for the committee members to examine, in detail, the text of the bill, its purpose and objectives. Particular issues were raised and the hon. Minister of Transport provided some important clarifications, which bear repeating in the House today.

First, the minister assured committee members that no additional financial resources would be required for the implementation of these new proposed authorities and requirements. The department's operational budget was assessed and represents the level of resources adequate to carry out all of the projects and the priorities. Nonetheless, in the event additional funding is requirement, the government always has the ability to reallocate or request funding through the supplementary estimates.

Second, with regard to the supplementary shipper-financed fund, the minister made a number of important clarifications. The fund has been proposed, through Bill C-52, to provide substantial additional coverage for incidents involving crude oil. The fund would cover any damages that surpassed the railway's required minimum insurance coverage. To finance the fund, the government would introduce a levy of $1.65 per tonne on shipments of crude oil transported by a federally regulated railway. The formula used to establish the levy would be based on a mid-range growth estimate of projected oil by rail. The supplementary shipper fund cannot apply retroactively for incidents that occur prior to the coming into force of the legislation.

As previously mentioned, the proposed supplementary fund would not be capped or cut off. Therefore, claims against the fund would not be limited. The fund would be capitalized to $250 million. However, Bill C-52 would allow the Minister of Transport to suspend or reinstate the levy as would be necessary. This would ensure that the fund would be at the appropriate level to pay for damages in excess of railway insurance levels without holding excess capital unnecessarily.

The government modelled this compensation fund on the ship-source oil pollution fund in the marine mode. Levies for that fund were suspended once it had been capitalized. The fund has grown through interest over the past 40 years without the need for further levies. For the time being, the supplementary compensation fund will cover incidents involving crude oil.

However, the bill provides regulation-making authority to include other types of dangerous goods in the future. Moreover, Bill C-52 provides for a loan from the consolidated revenue fund if the resources in the fund have been exhausted. This loan would be subject to terms and conditions established by the Minister of Finance and would be repaid through the shipper levy.

Furthermore, this bill includes the authority to put in place a special levy on railways to help repay the CRF loan to ensure that liability continues to be shared appropriately in the event of a catastrophic accident. The funds would be supplementary to the newly proposed minimum liability insurance coverage for railway companies transporting dangerous goods.

The strengthened liability and compensation regime in the bill is in line with the modernized liability and compensation regime put forward for pipelines in Bill C-46, as well as the regime for offshore oil and gas in Bill C-22, which received royal assent on February 26. This includes a provision that ensures that the strengthened regime for rail would not preclude any other regimes, including future regimes with higher limits of liability from being applied to a railway accident.

It is also important to highlight the clarification made by the Minister of Transport at committee regarding subclause 152.7(1) of the bill. Through this subclause, only a railway company that is involved in a crude oil accident through physical operation of a railway, for example, moving a train or responsibility for tracks or cars, would be held liable without regard to fault or negligence.

In the Canada Transportation Act the terms “operate” and “railway” are defined in section 87 of the act. They are defined in a physical sense, not a commercial sense. Therefore, a carrier that quotes a through-rate or interswitches with a railway company that later has an accident would not be considered involved in an accident. With this strengthened liability and compensation regime for rail, the minister clearly stated in committee that she was confident, and “we do have the ability to ensure that the polluter pays and that taxpayers don't have to incur costs”.

The minister confirmed to committee members that where a crude oil accident was the result of an act of terrorism, the railway company would not be held automatically liable under our proposed legislation.

Finally, the committee discussed the cumbersome definition of “fatigue science” presently found in the Railway Safety Act. As stated by the minister, the definition included in the act is simply a definition of a term and does not add any implementation requirements toward the railway companies. By having the term predefined, it restricted the department's ability to enforce. Amendments to the act seek to remove the definition allowing the application instead of the new Railway Safety Management System Regulations, 2015, to fulfill its purpose of ensuring a company's safety management system includes mechanisms for applying the principles of fatigue science when scheduling the work of certain employees.

Following the Lac-Mégantic derailment, the Speech from the Throne in 2013 and the Auditor General of Canada's fall 2013 report, our government has worked to bring forward these amendments to strengthen railway safety in Canada and increase the industry's accountability. Within this process, consultation with our stakeholders, particularly on liability and compensation, was essential to achieve the results we see today in this bill. We are grateful for their collaboration, support and commitment to improve the safety and security of the railway system.

I urge all members to vote in favour of Bill C-52 so it can be referred to the other place as soon as possible.

The House proceeded to the consideration of Bill C-52, An Act to amend the Canada Transportation Act and the Railway Safety Act, as reported with amendment from the committee.