Bill C-23 (Historical)

Preclearance Act, 2016

An Act respecting the preclearance of persons and goods in Canada and the United States

This enactment implements the Agreement on Land, Rail, Marine, and Air Transport Preclearance between the Government of Canada and the Government of the United States of America (the Agreement), done at Washington on March 16, 2015, to provide for the preclearance in each country of travellers and goods bound for the other country.
Part 1 of the enactment authorizes United States preclearance officers to conduct preclearance in Canada of travellers and goods bound for the United States and, among other things, it
(a) authorizes a federal Minister to designate preclearance areas and preclearance perimeters in Canada, in which preclearance may take place;
(b) provides United States preclearance officers with powers to facilitate preclearance;
(c) establishes that the exercise of any power and performance of any duty or function by a United States preclearance officer is subject to Canadian law, including the Canadian Charter of Rights and Freedoms, the Canadian Bill of Rights and the Canadian Human Rights Act;
(d) authorizes Canadian police officers and the officers of the Canada Border Services Agency to assist United States preclearance officers in the exercise of their powers and performance of their duties and functions;
(e) allows a traveller bound for the United States to withdraw from the preclearance process, unless the traveller is detained under Part 1; and
(f) limits the ability to request the extradition or provisional arrest of a current or former United States preclearance officer.
Part 2 of the enactment provides for the preclearance in the United States, by Canadian officers, of travellers and goods bound for Canada. Among other things, Part 2
(a) specifies how the Immigration and Refugee Protection Act will apply to travellers bound for Canada who are in preclearance areas and preclearance perimeters in the United States, and extends the application of other Canadian legislation that relates to the entry of persons and importation of goods into Canada to those preclearance areas and preclearance perimeters;
(b) authorizes the Governor in Council to make regulations adapting, restricting or excluding the application of provisions of the Immigration and Refugee Protection Act and that other Canadian legislation in preclearance areas and preclearance perimeters;
(c) prevents, as required under the Agreement, the exercise of powers of Canadian officers under Canadian law with respect to questioning or interrogation, examination, search, seizure, forfeiture, detention and arrest in preclearance areas and preclearance perimeters, as similar powers will be conferred under the laws of the United States on Canadian officers; 
(d) allows a traveller bound for Canada to withdraw from the preclearance process, unless the traveller is detained under the laws of the United States;
(e) deems an act or omission committed in a preclearance area or preclearance perimeter to be committed in Canada, if the act or omission would constitute, in Canada, an offence relating to the entry of persons or importation of goods into Canada; and
(f) grants the Attorney General of Canada the exclusive authority to commence and conduct a prosecution of a Canadian officer with respect to an act or omission committed in the United States.
Part 3 of the enactment makes related amendments to the Criminal Code to provide United States preclearance officers with an exemption from criminal liability under the Criminal Code and the Firearms Act with respect to the carriage of firearms and other regulated items. It also amends the Criminal Code to provide for a stay of proceedings against a United States preclearance officer when the Government of the United States provides notice under paragraph 14 of Article X of the Agreement.
Part 3.‍1 of the enactment provides for an independent review relating to the administration and operation of the Preclearance Act, 2016.
Part 4 of the enactment makes a consequential amendment to the Customs Act, repeals the Preclearance Act and contains the coming-into-force provision.

Extension of Sitting Hours

[Bardish Chagger, Liberal, Leader of the Government in the House of Commons and Minister of Small Business and Tourism]

moved:

That, notwithstanding any Standing Order or usual practice of the House, commencing upon the adoption of this Order and concluding on Friday, June 23, 2017:

(a) on Mondays, Tuesdays, Wednesdays and Thursdays, the ordinary hour of daily adjournment shall be 12:00 a.m., except that it shall be 10:00 p.m. on a day when a debate, pursuant to Standing Order 52 or 53.1, is to take place;

(b) subject to paragraph (e), when a recorded division is demanded in respect of a debatable motion, including any division arising as a consequence of the application of Standing Order 61(2) or Standing Order 78, but not including any division in relation to the Business of Supply or arising as a consequence of an order made pursuant to Standing Order 57, (i) before 2:00 p.m. on a Monday, Tuesday, Wednesday or Thursday, it shall stand deferred until the conclusion of oral questions at that day’s sitting, or (ii) after 2:00 p.m. on a Monday, Tuesday, Wednesday or Thursday, or at any time on a Friday, it shall stand deferred until the conclusion of oral questions at the next sitting day that is not a Friday;

(c) notwithstanding Standing Order 45(6) and paragraph (b) of this Order, no recorded division requested after 2:00 p.m. on Thursday, June 22, 2017, or at any time on Friday, June 23, 2017, shall be deferred, except for any recorded division which, under the Standing Orders, would be deferred to immediately before the time provided for Private Members’ Business on Wednesday, September 20, 2017;

(d) the time provided for Government Orders shall not be extended pursuant to Standing Order 45(7.1) or Standing Order 67.1(2);

(e) when a recorded division, which would have ordinarily been deemed deferred to immediately before the time provided for Private Members’ Business on a Wednesday governed by this Order, is demanded, the said division is deemed to have been deferred until the conclusion of oral questions on the same Wednesday;

(f) any recorded division which, at the time of the adoption of this Order, stands deferred to immediately before the time provided for Private Members’ Business on the Wednesday immediately following the adoption of this Order shall be deemed to stand deferred to the conclusion of oral questions on the same Wednesday;

(g) a recorded division demanded in respect of a motion to concur in a government bill at the report stage pursuant to Standing Order 76.1(9), where the bill has neither been amended nor debated at the report stage, shall be deferred in the manner prescribed by paragraph (b);

(h) for greater certainty, this Order shall not limit the application of Standing Order 45(7);

(i) no dilatory motion may be proposed after 6:30 p.m.;

(j) notwithstanding Standing Orders 81(16)(b) and (c) and 81 (18)(c), proceedings on any opposition motion shall conclude no later than 5:30 p.m. on the sitting day that is designated for that purpose, except on a Monday when they shall conclude at 6:30 p.m. or on a Friday when they shall conclude at 1:30 p.m.; and

(k) when debate on a motion for the concurrence in a report from a standing, standing joint or special committee is adjourned or interrupted, the debate shall again be considered on a day designated by the government, after consultation with the House Leaders of the other parties, but in any case not later than the twentieth sitting day after the interruption.

Mr. Speaker, I rise to speak to government Motion No. 14. For the benefit of members, the motion would extend the sitting of the House until we rise for the summer adjournment.

We have much to accomplish in the coming weeks. Our government has an ambitious legislative agenda that we would like to advance in order to deliver on the commitments we made to Canadians in the last election. Let me reflect on our recent legislative achievements before I turn to the important work that lies before us over the next four weeks.

In our last sitting week, the House and Senate were able to reach agreement on securing passage of Bill C-37, which would put in place important measures to fight the opioid crisis in Canada. I would like to thank members of the House for the thoughtful debate on this bill and for not playing politics with such an important piece of legislation. In particular, I would like to thank members of the New Democratic Party for co-operating with the government to advance this bill when it was in the House and for helping us dispense with amendments from the Senate. This was a high watermark for the House and I hope that we can take this professional and courteous approach forward. I would also like to thank senators for their important contributions to this bill.

I would also like to point out the passage of two crucial bills related to trade. The first, Bill C-30, would implement an historic trade agreement with the European Union. The second, Bill C-31, would implement a trade agreement with Ukraine, a country that is dear to many members.

I am proud that our government continues to open the doors to trade and potential investment in Canada to grow our economy and help build a strong middle class.

In looking forward to the next four sitting weeks, I would like to highlight a few priority bills that our government will seek to advance. I will start with Bill C-44, which would implement budget 2017. This bill is about creating good middle-class jobs today while preparing Canadians for the jobs of tomorrow.

I will provide some examples of the initiatives that will contribute to building a strong middle class. The budget makes smart investments to help adult workers retain or upgrade their skills to adapt to changes in the new economy and to help young people get the skills and work experience they need to start their careers.

The budget also provides for investments in the well-being of Canadians, with the emphasis on mental health, home care, and health care for indigenous peoples.

Bill C-44 would provide financing to the provinces for home care and mental health care. It would also create leave for those who wish to care for a critically ill adult or child in their family. These initiatives help build stronger communities.

I would also like to point to initiatives in the budget that deal with gender equality. The first-ever gender statement will serve as a basis for ongoing, open, and transparent discussions about the role gender plays in policy development. Our government has other initiatives that aim to strengthen gender equality. For example, Bill C-25 encourages federally regulated companies to promote gender parity on boards of directors and to publicly report on the gender balance on these boards.

Another bill, which I will discuss in greater detail later in my remarks, is Bill C-24, a bill that would level the playing field to ensure a one-tier ministry. The bill has a simple premise. It recognizes that a minister is a minister, no matter what portfolio he or she holds.

Our government has committed to legalizing and strictly regulating the production, distribution, sale, and possession of cannabis. I look forward to the debate on this important bill tomorrow. I will note that the bill would provide strong safeguards and deterrents to protect young people from enticements to use or access cannabis.

The government has taken a responsible approach in seeking to legalize cannabis by ensuring that law enforcement agencies have approved methods to test the sobriety of drivers to guard against cannabis use while operating a motorized vehicle. This afternoon, the House will continue to debate this bill, which, I will happily note, has support from all opposition parties in the House. I hope that we can agree to send this bill to committee on Wednesday.

Now I would like to return to our government's commitment to improving gender equality. Bill C-24, which stands in my name, seeks to formalize the equal status of the ministerial team. This bill is very straightforward in its nature. It is fundamentally about the equality of all ministers. We strongly believe that the Minister of Status of Women should be a full minister. We believe that the Minister of Science and the Minister of Democratic Institutions should be full ministers.

I am disappointed that the Conservatives do not share this fundamental belief in equality. I think we should send this bill to committee for a detailed study of what the bill actually does.

I would like to draw members' attention to another piece of legislation, Bill C-23, regarding an agreement with the United States on the preclearance of persons and goods between our two countries.

This bill is currently being studied by the Standing Committee on Public Safety and National Security. The principle of the bill is simple. It is about ensuring a more efficient and secure border by expanding preclearance operations for all modes of transportation. This will increase the number of trips and the volume of trade, which will strengthen both of our economies.

As members may know, preclearance operations currently take place at eight Canadian airports, and immigration pre-inspection is also conducted at multiple locations in British Columbia in the rail and marine modes.

Once that bill comes back from committee, I hope that we can work together to send it to the other place.

In our last sitting week, our government introduced comprehensive modernization of our transportation systems. A strong transportation system is fundamental to Canada's economic performance and competitiveness. Bill C-49 does just that. The bill would enhance the utility, efficiency, and fluidity of our rail system so that it works for all participants in the system. Freight rail is the backbone of the Canadian economy. It moves everything from grain and potash to oil and coal, to the cars we drive, the clothes we wear, and the food we eat.

I would also like to draw to the attention of members provisions in Bill C-49 that would strengthen Canada's air passenger rights. While the precise details of the air passenger rights scheme will be set out in regulations, the objective is that rights should be clear, consistent, transparent, and fair for passengers and air carriers.

Finally, our government committed to creating a national security and intelligence committee of parliamentarians. Bill C-22 seeks to accomplish two interrelated goals, ensuring that our security intelligence agencies are effective in keeping Canadians safe, while at the same time safeguarding our values, rights and freedoms, and the open, generous, inclusive nature of our country.

I appreciate the work that was done in the House committee to improve the bill. The bill is currently before the Senate national security committee, and I look forward to appearing before that committee with my colleague, the Minister of Public Safety and Emergency Preparedness.

Sitting a few extra hours for four days per week will also give the House greater flexibility in dealing with unexpected events. While it is expected that the Senate will amend bills, it is not always clear which bills and the number of bills that could be amended by the Senate. As we have come to know, the consideration of Senate amendments in the House takes time. This is, in part, why we need to sit extra hours. I know that members work extremely hard balancing their House duties and other political duties. I expect that extending the hours will add to the already significant workload.

I wish to thank members for their co-operation in these coming weeks. As I reflect upon my time as government House leader, there were examples where members of the House came together, despite their political differences, and advanced initiatives that touched directly upon the interests of all Canadians. I hope that over the four remaining sitting weeks before we head back to work in our ridings, we can have honest and frank deliberations on the government's priorities and work collaboratively to advance the agenda that Canadians sent us here to implement.

In the previous Parliament, when the government decided to extend the sittings in June of 2014, Liberal members supported that motion. We knew then, as we know now, that our role as legislators is a privilege, and we discharge our parliamentary functions in support of our constituents.

There will be initiatives that the government will bring forward over the coming weeks that will enjoy the support of all members, and there will be issues on which parties will not agree. Our comportment during this time will demonstrate to Canadians that we are all in this together, despite our differences, for the good of this great country. Let us not lose sight of that.

I believe the motion before the House is reasonable. I hope opposition members can support sitting a few extra hours for four days a week for the next few weeks to consider important legislation for Canadians.

[Majid Jowhari, Liberal, Richmond Hill, ON]

Thank you, Mr. Chair.

Good morning and welcome, Minister.

Minister, yesterday I had the opportunity to attend the public safety committee, which is currently studying Bill C-23, An Act respecting the preclearance of persons and goods in Canada and the United States. One of the witnesses was the Tourism Industry Association of Canada. The association believes that the Government of Canada should do all it can to improve border access and infrastructure, built on the pre-clearance services and trusted traveller program to increase tourism. Having said that, Minister, what views do you have as to the positive impact that pre-clearance can have specifically to increase U.S. tourism to Canada?

Foreign Affairs, Trade and Development—Main Estimates, 2016-17

[Andrew Leslie, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs (Canada-U.S. Relations)]

Madam Chair, I will be using 10 minutes for my speech, followed by five minutes for questions.

As we have said on numerous occasions, the Canada-U.S. economic relationship is balanced and mutually beneficial. Our economic ties to the U.S. are key to middle-class jobs and growth on both sides of the border.

Our partnership is also critical to Americans. Canada is the number one customer for U.S. exports and we are America's biggest market. Thirty-two states count Canada as their largest international export destination, with nine million U.S. jobs directly linked to trade with Canada. We do over $2.4 billion in trade a day, every single day.

We strongly believe that a whole-of-government and non-partisan approach is the best way to have an impact on American decision-makers and opinion leaders. That is what has happened in this Parliament, and we are all delighted. I will now speak about our key priorities.

At their first meeting in Washington, the Prime Minister and President Trump issued a joint statement that gave a clear indication of Canada's priorities in our relationship with the United States. The statement is a road map to upcoming co-operative projects between our two nations and it focuses on five key areas.

First, the growth of our economy, which includes such initiatives as co-operation on regulation. The Treasury Board Secretariat is leading an ongoing dialogue with American officials to move ahead with co-operation on getting rid of regulations that impede the flow of business. Another initiative is the Gordie Howe International Bridge. The Windsor-Detroit border crossing project is halfway through the bidding stage, and a private sector partner is expected to be selected next spring.

The second is promoting energy security and the environment. This focused area includes and identifies pipelines, and air and water quality. For pipelines, Keystone XL is now approved. The economy and the environment have to go hand in hand. There are several other projects like pipelines or electricity transmission lines that are at different stages for review.

When it comes to air and water quality, Environment and Climate Change Canada is working very closely with the U.S. and broad co-operation continues in some specific problem areas.

The third is keeping our border secure, of course. Entry-exit or, more specifically, Bill C-21, An Act to amend the Customs Act will allow for full implementation of the entry-exit initiative whereby Canada and the U.S. will exchange information on all travellers crossing the land border. We expect implementation by 2018. There will be a thinning of the border with a thickening of the outer perimeter of security.

There was also discussion of pre-clearance, namely Bill C-23, An Act respecting the preclearance of persons and goods in Canada and the United States. Once the bill is passed, both countries will be in a position to ratify the agreement, which will provide a framework for expansion of pre- clearance to cargo. In other words, it will get stuff moving faster.

The fourth area of focus was working together as allies in the world's hot spots, which includes co-operation on NORAD, which of course is essential to our Arctic sovereignty, as well as dominance over our own air space, our military alliance with the U.S., not only through NORAD but also NATO. The steps for modernization are in the government's defence policy review. More news will be announced on that by the Minister of Foreign Affairs and the Minister of National Defence shortly.

There is also the coalition to counter Daesh, wherein Canada is a key member of this 68-member coalition. The minister attended the ministerial meeting in Washington, DC, hosted by Secretary Tillerson on March 22, where the future strategy to defeat Daesh was clearly laid out.

We have also made some specific proposals and taken action to counter the activities, the heinous crimes of Daesh, not the least of which is supporting, through military efforts, but also $804 million in humanitarian aid, to assist the most vulnerable.

The fifth and last area of focus in this thematic scheme is empowering women entrepreneurs and business leaders. We oversaw the creation of the Canada-United States Council for Advancement of Women Entrepreneurs and Business Leaders. The council is committed to removing barriers to women's participation in the business community, and supporting women by promoting the growth of women-owned enterprises.

We are committed to gender equality, the empowerment of women and girls, and the promotion and protection of their human rights. We see women as powerful agents of change, an experience I, myself, have seen in the war-torn lands of Afghanistan. These individuals have the right to be full participants, and influencers in peace and security operations. Achieving gender equality requires changing unequal power relations, and challenging social norms and gender stereotypes. We can lead by example in that regard.

The next issue is with regard to the terms of the engagement strategy.

Since January 20, the Government of Canada and the provinces and territories have been undertaking an ambitious pan-Canadian strategy to get the United States involved. This includes not only the Prime Minister's official visit to Washington in February—I had the pleasure of going with him—but also visits, meetings, and other discussions between the ministers, parliamentarians, and provincial and territorial leaders and their American counterparts, as well as political leaders at the national and state level.

The ministers have undertaken an action-centred program that targets 11 key states whose main export destination is Canada and that maintain vital economic links with Canada or have a significant impact on American policy and Canadian interests.

We have already made over 100 visits as part of this effort. Twelve parliamentary committees are planning or preparing to go on visits to the United States in the near future, and I thank them for that. Through these visits, calls, and meetings initiated by Canada's network in the United States, we have obtained the support of over 215 political leaders in the United States.

Top of mind, of course, is NAFTA, something we have already talked about tonight. I know it has been said before, and we are going to say it again. We are ready to come to the negotiating table with our American friends at any time. It has been modified 11 times since its inception. It is natural that trade agreements evolve as the economy evolves. Canada is open to discussing improvements that would benefit all three NAFTA parties.

Should negotiations take place, and we all expect they will, Canada will be, and is, prepared to discuss at the appropriate time specific strategies, but we are not going to expose our cards right now. Quite frankly, we want a good deal, not just any deal.

When it comes to softwood lumber, on April 24, the U.S. Department of Commerce announced it would impose preliminary countervailing duties on certain softwood lumber products from Canada. We disagree strongly with the U.S. Department of Commerce's decision to impose an unfair and punitive duty. The accusations are baseless and unfounded. We continue to believe that it is in both our countries' best interests to have a negotiated agreement as soon as possible with a deal that is fair for both countries.

We have been in constant conversation with our American counterparts. The Prime Minister raises this every time he interacts with President Trump, as does the minister with her counterparts. As a matter of fact, the last time she raised it with her counterparts was yesterday. That is literally hot off the press.

While Canada is committed to negotiating an agreement, once again, we are not going to accept just any deal. We need an agreement that is in the best interests of our industry. We want a win-win.

In conclusion, while we only touched on a couple of the highlights of our engagement on this very broad, complex, and deep relationship, it is clear that the partnership between Canada and the United States has been essential to our shared prosperity. Our trade with the United States is balanced and mutually beneficial. We are its largest customer. We invest more in the U.S. than the U.S. invests in us. We are the Americans' biggest client.

We will also continue to work with all parliamentarians to ensure that we maintain a united front in our engagement with the United States in a non-partisan fashion. The growth of our economy and working well with the United States is not a partisan issue. All members of Parliament are thanked, essentially, for their “all hands on deck” approach.

Canada's relationship with the United States is extensive, highly integrated, and prosperous. Thirty-two states count Canada as their largest international export destination. Nine million U.S. jobs are linked to trade with Canada, and we do over $2.4 billion in trade a day. That is why from the very beginning, our government looked for ways to reach out to the new American administration to advance issues of mutual interest.

It is also important to realize that it has been really a non-partisan approach. I would like to single out, as the minister has done, the interim Leader of the Opposition, the member for Sturgeon River—Parkland, for her fantastic work in Washington. I literally saw her in action now on two different occasions, once at the inauguration and once at another event involving the governors. She was on television. She was able to leverage her Rolodex of very impressive leaders in Washington itself. She was organizing her teams to actually get out there and interact with us. She dispatched a whole bunch of her members of Parliament down to pair off with their Liberal and NDP colleagues. Quite frankly, it was sterling leadership by example.

I would also like to single out the hon. member for Prince Albert, my opposite number, the critic. We have travelled to the United States many times. I find him knowledgeable, experienced, and once again a true Canadian at heart. It has been a pleasure to work alongside him.

I wonder if the minister would please outline her activities and elaborate on our engagement strategy with the United States at all levels and across all sectors.

[Charlotte Bell, President and Chief Executive Officer, Tourism Industry Association of Canada]

Mr. Chair, honourable members, I am very pleased to appear before you on behalf of the Tourism Industry Association of Canada, the TIAC, in connection with your study of Bill C-23.

Chairman Oliphant and dear members, on behalf of the Tourism Industry Association of Canada, thank you for the opportunity to share our views on Bill C-23.

For the record, my name is Charlotte Bell, and I'm the president and CEO of the Tourism Industry Association of Canada.

For those who are unfamiliar with us, TIAC is the only national voice representing the interests of all sectors of the tourism industry in Canada. This includes accommodations, transportation, destinations, and attractions. Our members range in size from small businesses to some of Canada's largest hotel chains, national airlines, rail services, and iconic tourist attractions from coast to coast to coast.

Tourism is the top economic driver for Canada, which last year generated $91.6 billion in revenues, surpassing forestry, agriculture, and fisheries combined. It also employs in excess of 627,000 Canadians and is considered a top employer for Canadian youth. With almost 80% of Canadian tourism being domestic, our efforts are focused primarily on international growth and competitiveness. Quite simply, we aim to strengthen the Canadian tourism sector by increasing the number of international visitors to Canada. In fact, in 2016, Canada welcomed just shy of 20 million international visitors, generating $20 billion in revenue, and 2017 is also showing early signs of continued growth from all key international markets, including the U.S., which represents roughly 70% of international visits to Canada.

Tourism is one of the world's fastest-growing sectors, including here in Canada, and it is expected to grow at a steady pace in the coming years. But we need to be ready for it. Canada's success is in large part attributed to its brand. In 2017, Canada's brand is at an all-time high with Lonely Planet, The New York Times, and National Geographic touting Canada as “the place” to visit this year, and we couldn't be more proud.

As Canada welcomes more visitors, and as more people transit through our country by whatever means, whether for leisure, business, or study, we need to ensure that their experiences will be memorable. When I say memorable, I don't mean, “I got lost hiking” or “I spent three hours in line at border security and missed my connection.”

We know one thing about travellers: they love to share their stories with friends and family and through social media, whether good or bad. We hope that when they share their stories about their time in Canada, whether they spent two weeks travelling through the country or they were transiting through one of our airports or harbours, they'll be talking about their great experience and encouraging others to visit.

Travel is a journey that doesn't begin just when you check in to your hotel. It actually starts the moment you leave home, and it continues until you return. For millions of travellers each year, that journey includes clearing border security. Against the backdrop of an increasingly competitive landscape, Canada must keep pace with the growth of traffic in our airports, as well as at our land and marine crossings. By facilitating efficient border security in more markets and locations across the country, we can ensure the unencumbered flow of people and products across our borders, all, of course, while preserving the integrity of our national security. This is something, we believe, that has been achieved through pre-clearance in the past and that will be enhanced by modernizing existing legislation and expanding services to other markets.

Pre-clearance operations between Canada and the U.S.—

[Jean-Pierre Fortin]

Thank you very much.

My name is Jean-Pierre Fortin. I'm the national president of the Customs and Immigration Union. I represent over 10,000 members across the country who are mainly front-line officers in different Canadian airports and all of those working at land borders also.

We have about six places where we would like to raise concerns with regard to the Bill C-23 legislation. Part 1 of Bill C-23 authorizes a federal minister designated by the Governor in Council to designate pre-clearance areas and pre-clearance parameters in Canada in which pre-clearance may take place. Part 1 also recognizes the authority of a U.S. designated officer to perform pre-border clearance activities and stipulates that Canadian law, including the Charter of Rights and Freedoms, applies to their activities in Canada.

Part 2 confirms that reciprocal authority and responsibility will apply to CBSA officers performing border pre-clearance in the U.S. The bill also references the possibility of other public officers as designated by the U.S. The CIU is unclear as to what is intended by this and how, if at all, such designations will be made, on what grounds they will be made, and with what authorization or restrictions. It would be helpful if this were clarified.

Secondly, on provision of assistance to U.S. officers, part 1 also authorizes CBSA officers to assist U.S. officers in the performance of duties in Canada, but clauses 35 and 36 appear to create distinctions between police and border services officers' authority, as referenced in subsection 163.4(1), the authorization under the Customs Act regarding Criminal Code enforcement. This needs to be clarified, and there should be an extension of the designation of those officers by CBSA.

Issues have been raised regarding the actual requirements of U.S. pre-clearance officers to notify and involve a CBSA officer should they wish to conduct a strip search of a person travelling into the U.S. While that requirement is expressly articulated in subclause 22(2) of the bill, subclause 22(4) authorizes the U.S. officer to conduct a search if no CBSA officers are available or if the CBSA officer declines to do so. The CIU believes that this provision should be removed from the bill, especially as Bill C-23 expressly notes that Canadian laws apply to all actions taking place in the pre-clearance area, and that other U.S. authorities do not.

On clauses 9, 10, and 11, should a strip search be required in the pre-clearance area in Canada, it should be under the authority of Canadian officers exclusively. Clarification should be obtained from the minister, including whether the government will secure memorandums of understanding with U.S. authorities on this issue. This could be expressly required if they were included as preconditions in the original designation of a pre-clearance area by the minister, clauses 6 to 8, and by the Governor in Council regulations that are authorized under clause 57.

Third, on a traveller's ability to withdraw, clause 29 of the bill expressly articulates the right for a passenger to withdraw from the pre-clearance process. Subclause 20(2) of the bill also prohibits the collection of biometric information from a traveller unless clear notice of the right to withdraw is posted in the pre-clearance area.

Even when a traveller chooses to withdraw, pre-clearance officers still have extensive authority pursuant to clauses 30 to 32, including conducting a strip search on defined grounds. The bill requires, in subclause 32(2), notified participation of CBSA officers in clause 22, but with the same exception as noted above in subclause 22(4).

Accordingly, it is also recommended that the minister secure a memorandum of understanding with U.S. authorities on the circumstances in which CBSA approval and participation is required.

Fourth, regarding preventing double jeopardy of officers, part 2 of the bill grants the Attorney General of Canada exclusive authority to commence and conduct a prosecution of a Canadian officer with respect to an act or omission committed in the United States. This is an important provision, which was recommended by the CIU to ensure that there was no potential double jeopardy, for CBSA officers in Canada would retain ultimate jurisdiction.

Fifth, regarding airport application and CBSA officer status, clause 36 of the bill confirms that officers designated by CBSA under section 163.4 of the Customs Act have the “arrest without warrant” authority under sections 495 up to 497 of the Criminal Code. Given the potential increased involvement of CBSA officers in such situations, this should result in designation for all CBSA officers working at international airports, as there is an increased potential that they will be called upon to act.

Further, this bill supports a long overdue overall approval of arming CBSA officers at international airports, especially if they are working in an enforcement scenario with U.S. officers or armed Canadian police officers. Recent events at airports around the world confirm that times have changed and that the fully trained and armed CBSA officers now working at international airports with their sidearms locked in a cupboard should be allowed to carry their sidearm for the protection of themselves and the public they serve.

Further, there is an insufficient number of police officers in most of the airports in Canada. This can be corrected by the minister's helping CBSA achieve the requirement exemption from Transport Canada, as was reflectedly done for other departments' enforcement officers. For example, the wildlife officers have that exemption.

Border pre-clearance at international airports and elsewhere may be a good idea for both countries. However, before CIU can endorse the provisions of this bill, it will be important that the details be worked out to appropriately protect the privacy rights of the people it is designed to benefit.

Again, thank you for allowing me to appear in front of the committee.

One last thing that I forgot is the sixth, concerning immigration and refugee issues.

Part 2 authorizes the Governor in Council to make regulations adapting, restricting, or excluding the application of provisions of the Immigration and Refugee Protection Act and other Canadian legislation in “preclearance areas” and “preclearance perimeters”.

In addition to this, Canadian officers performing border pre-clearance in the U.S. apply Canadian laws, but subclause 48(1) expressly confirms that a traveller in the border pre-clearance area is not in Canada for the purpose of IRPA and that a refugee claim under section 99 of that act cannot be made.

Again, thank you for allowing me to be here.

[Mueed Peerbhoy, Chair, Legal Advocacy Committee, Canadian Muslim Lawyers Association]

Thank you.

Good afternoon to the committee. Let me introduce my colleague, Pantea Jafari, a fellow board member of the Canadian Muslim Lawyers Association . My name is Mueed Peerbhoy. We'd like to thank the committee for inviting us to speak to Bill C-23 today.

The Canadian Muslim Lawyers Association has been active in the discourse on national security laws and policies in Canada. We have made submissions to and testified before several parliamentary committees examining national security, human rights, and civil liberties on numerous occasions since 2001. We are pleased to make a contribution to the study of Bill C-23 and to national security laws and policies more generally, because these are matters that are important to all Canadians.

Our core values are the values held by the Charter of Rights and Freedoms. The second piece is the rule of law in Canada and holding our elected officials accountable for the necessity and efficiency of the legislation they propose and implement. The third piece we seek to uphold is the dignity of all persons in Canada and the promotion of human rights. We will speak when Canadian Muslims and Muslims in Canada are adversely affected by proposed legislation, but that is not our only focus. We speak to the dignity of all persons in Canada.

I will now turn it over to my colleague, who will speak to the substantive provisions of Bill C-23.

[Geoffrey Wilson, Chief Executive Officer, PortsToronto]

Thank you, Mr. Chairman.

Thank you all, honourable members, for having us here today. It's a great honour to be here speaking on behalf of the many proud, diligent, and professional members of PortsToronto and the very successful Billy Bishop airport.

Thank you for this opportunity to present our perspective regarding Bill C-23 and the importance of pre-clearance to Canada's economy, connectivity, security, and global competitiveness.

My name is Geoffrey Wilson and I am the CEO of PortsToronto, the federal government business enterprise that owns and operates Billy Bishop Toronto City Airport as well as the Outer Harbour Marina and the marine terminal operations in the Port of Toronto. I am joined today by my colleague Gene Cabral, who is the executive vice-president of Billy Bishop airport and PortsToronto, which is the area of our business that we will focus on here today.

We believe PortsToronto is in a good position to speak about the expansion of the U.S. pre-clearance system in Canada, given that we have spent the last several years working with organizations on both sides of the border to bring an expanded program to our airport.

Billy Bishop airport has achieved overwhelming success in the last decade. Growing from a facility that serviced just 25,000 passengers per year in 2006, Billy Bishop airport welcomed 2.7 million passengers in 2016. The airport generates more than $2.1 billion in economic impact per year and has created 6,500 jobs, 1,900 of which are at the airport.

Located less than three kilometres from downtown Toronto, Billy Bishop airport continues to win global awards from organizations such as Condé Nast, Skytrax, and Airports Council International for being one of the top airports in both North America and the world, and it enjoys a remarkable customer satisfaction rating of 99%.

Through two award-winning carriers, Porter Airlines and Air Canada, Billy Bishop airport provides direct service to more than 20 destinations, including Porter Airlines' direct, non-stop travel to such U.S. hubs and regional markets as New York, Chicago, Boston, Washington, Burlington, Pittsburgh, Orlando, and Myrtle Beach, and offers connections to an additional 80 U.S. cities through airline partnership agreements. In fact, each year more than 450,000 passengers travel to the U.S. through Billy Bishop airport.

Billy Bishop airport is the ninth-largest airport in Canada and the sixth-largest for departing U.S.-bound passengers. We are, however, the only airport among the top nine that is currently without pre-clearance services. We are excited by the opportunities that pre-clearance at our airport presents and we will continue to work with the federal government to implement the new pre-clearance agreement in a way that will support the goals for the overall program and enable a new pre-clearance site in Canada.

I now have made my case for why pre-clearance should be expanded to include Billy Bishop airport. It is a thriving, highly valuable gateway that facilitates travel and trade.

Now let me take a moment to contextualize why an additional pre-clearance facility in Toronto is beneficial. As noted by the U.S. Department of State, the “bilateral relationship” between Canada and the U.S. “is one of the closest and most extensive in the world.” More than $2 billion in goods and services and approximately 300,000 people a day cross between the two countries. Further, trade between Toronto alone and markets in the U.S. equals more than $86 billion per year.

Toronto is a city of nearly three million people with a total of 5.5 million in the greater metropolitan area. One-quarter of Canada's population lives within 150 kilometres of Toronto and more than 60% of the United States population is within a 90-minute flight of the city. Toronto is the centre of the Canadian financial industry and home to Canada's information technology industry, life sciences sector, film industry, and automotive industry as well as many of Canada's leading academic institutions. Therefore, enabling an additional and convenient link between Toronto and the U.S. via Billy Bishop airport just makes sense.

In my last few minutes, I would like to speak specifically about pre-clearance and offer our perspective on the Agreement on Land, Rail, Marine, and Air Transport Preclearance.

As you know, U.S. pre-clearance started in Canada in 1952 at Toronto's Pearson International Airport. Pre-clearance has developed over the years into a sophisticated program to enhance both trade between the United States and Canada and border security.

From a consumer perspective, one of the key benefits is that once passengers are through the pre-clearance process in Canada, they travel essentially as domestic passengers to the United States. This means they arrive at the domestic gate in the receiving airport and leave the airport as would a domestic U.S. passenger, either to connect with another flight or to start their travel in the United States. This opens up potential new markets in the U.S. for trade and travel as it enables passengers to access cities that are serviced by smaller airports that may not have U.S. Customs and Border Protection facilities. It also provides greater choice for consumers in the airports and rail terminals available to them and will go a long way to making travel quicker and more efficient by providing more choice and access points.

A report released by Toronto Pearson International Airport last week estimated that more than 110 million passengers and over one million tonnes of cargo will flow through southern Ontario airports by the year 2043, compared with 49.1 million passengers and more than 470,000 tonnes of cargo today. That's double. This expected growth in population, economic activity, and air service demand presents a real capacity challenge that southern Ontario must acknowledge and prepare for. Expanding pre-clearance is one way of preparing for this growth and opening up more airports to U.S. travel.

But preparing for growth and opportunity by introducing measures to promote speed, access, and efficiency does not have to come at the price of border security. In fact, it is our understanding that through an expanded pre-clearance agreement, borders will become more secure and enforcement officials will have more resources to keep borders safe and protected.

In meetings that we have participated in on the operational side of pre-clearance, we have come to understand that Canadians will benefit from the fact that should they have difficulty accessing the U.S., for such reasons as inappropriate identification or paperwork, they are still in their home country, subject to the rights and protections of Canadian law.

Pre-clearance avoids tremendous cost and disruption to travellers, airlines, and border security services on both sides of the border by identifying admission concerns early in the process. At the isolated extreme, pre-clearance in Canada also identifies and manages any security threat before borders are crossed. Threats to national security can be identified before the threat boards a plane for foreign destinations, giving Canadian border officials more control and resources to work with to identify risk and keep Canadians safe.

Billy Bishop airport and Porter Airlines have been working with U.S. Customs and Border Protection, or CBP, and teams at Transport Canada, Public Safety, and Foreign Affairs to establish U.S. pre-clearance at the airport, with the goal of becoming the first facility to open under the new bilateral pre-clearance agreement.

We understand that Canada and the United States have work to do to implement the new agreement. We are prepared, and have committed to operate the pre-clearance facility under any and all reasonable requirements established by the U.S. and Canada. We also understand that the new model for funding U.S. CBP operations in Canada will be different for us than for other existing facilities in Canada, including the new model for paying for U.S. CBP personnel, which will present a new expense to the airport and its passengers. We are committed to ensuring that our pre-clearance facility is a tremendous benefit that is cost-effective and enables travel and its benefits between our two countries.

Of note is that Billy Bishop airport has started construction on a pre-clearance facility as part of a larger terminal upgrade to bring improved amenities and more space to the facility. There are currently eight airports in Canada operating very successful U.S. pre-clearance facilities in Canada. Our airport is ready and able to move forward with a facility in short order. It is our vision that Billy Bishop airport can become a convenient and valuable connection point between downtown Toronto and regional and hub markets in the United States. An expanded pre-clearance program holds the potential to encourage bilateral trade, facilitate convenient travel for business and leisure passengers, and reinforce national security.

I thank you for your time today and appreciate the attention this committee is giving to the legislation and the topic of U.S. pre-clearance. We look forward to continuing our support of Canadian officials’ discussions related to implementing a U.S. customs pre-clearance facility at Billy Bishop airport, and realizing the important bilateral opportunities that exist in the areas of cost efficiency, customer service, trade relations, and security.

Thank you very much.

[Michael Greene, Honourary Executive Member, Immigration Law Section, Canadian Bar Association]

Thank you.

Good afternoon, Mr. Chair and members of the committee. My name is Michael Greene. I'm a former national chair of the immigration law section of the Canadian Bar Association. I'm currently a senior adviser. I've been practising immigration law for 30 years, and I also teach immigration law at the faculty of law, University of Calgary.

In 1999, I appeared before the predecessor of this committee on the current Preclearance Act, so I'm familiar with the process and what's evolved with the legislation.

I thank you for the invitation to present the CBA's immigration law, criminal justice, and commodity tax sections' views on the implications of Bill C-23. We're an association of 36,000 lawyers, law students, notaries, and academics. An important part of the Canadian Bar Association's mandate is seeking improvements in the law and the administration of justice. It's that perspective that brings us to appear before you today.

We have submitted a written brief to this committee. Today I will just focus on parts of that and what we consider probably the most serious concerns. It would be wonderful to be here for questions, but I will be running out for an airplane somewhere around 5:30. I don't know how long you will be going anyway. I'd love to answer questions, but we'll see how it goes.

At the outset, we'd like to make it clear that the CBA supports the concept of pre-clearance areas and the need to modernize the legislation to allow for expansion to land, sea, and rail crossings, and to permit Canadian pre-clearance areas in the United States. We recognize that the pre-clearance areas do offer a convenience and help to facilitate the free flow of goods and people across our mutual border.

However, we believe that the proposed bill goes too far in granting unnecessary and what we believe are unjustifiable powers to foreign officers operating on Canadian soil, and to Canadian officers operating on foreign soil, and I'll get into that.

We recognize that the government is in a difficult position. The agreement that this legislation is based on was signed in March 2015, and the U.S. has already enacted their legislation. It is difficult for us to go back and renegotiate the bill. At the same time, we know there's a lot of pressure on Parliament to hold their noses and pass the thing rather than risk getting a worse bill if it were renegotiated. We get that. We try to make recommendations with that in mind, but at the same time there are some serious concerns.

We were concerned when the bill first came out a year ago. Those concerns were greatly magnified with the outcome of the U.S. presidential election and how things could work in operation, given some of the pronouncements that were made during the election campaign. We understand that members of this committee have met with Secretary Kelly, and also that he has made some statements before his own committees that suggest he is warm and friendly to Canada. That's encouraging, but it doesn't take away some of the concerns we have, because they depend on the legislation and not the man.

The new U.S. administration is very inward looking. It is preoccupied with security. The changes they're proposing in the U.S. are to greatly enhance the security features of the U.S., to give greater enforcement powers, to increase the number of officers, but also with very little concern for individual rights or freedoms, with the sole exception, of course, of the right to bear arms.

It's in that context that we must remember that the bill will grant significantly enhanced powers to U.S. officers who owe their allegiance to a foreign government and not to Canada. These officers are trained in the United States, they report exclusively to U.S. authorities, and have a primary mandate to carry out the U.S. government's directions to identify and exclude potential threats to U.S. security. They also seem to have a more aggressive style than their Canadian counterparts, and we expect that this will only get worse as a top-down cultural change occurs within the Department of Homeland Security. We've seen it happen in Canada before with the CBSA, so we know that kind of cultural shift can happen, and it can be very hard to reverse.

Given the setting, we are not confident that a few hours' training by CBSA will be enough to instill respect for Canadian cultural values and constitutional rights in our pre-clearance areas. That is why we think it's very critical that we get the legislation right.

The main thing I want to talk about is the right to withdraw, but it's more than just the right to withdraw. It's the whole nature of the process. Under the current Preclearance Act, a traveller has an unqualified right to withdraw at any time in the process. It's entirely voluntary. It recognizes it's Canadian soil. We had this battle in 1999, and I think it was resolved and it was clarified, and the 1999 bill makes it very clear that Canadian law applies and a traveller can withdraw at any time. It uses language such as, “If the traveller chooses to answer any question...the traveller must answer truthfully. If the traveller refuses to answer any question asked”, they may be asked to withdraw. It is entirely voluntary. At any time you can say you don't want to do this anymore.

The proposed provisions of Bill C-23 would gut that legislation and change the pre-clearance process to one where foreign officers can compel answers to questions and can detain anyone who refuses to provide answers or information. It's not a minor change. It's a fundamental shift in the nature of the pre-clearance process. We believe it represents a significant surrender of Canadian sovereignty, which has been proposed without meaningful justification. The combined effect of clauses 31 and 32 effectively turns the U.S. pre-clearance areas into U.S. territory. The problem is not that they are applying U.S. laws, because it's quite clear they're applying Canadian laws. It's that they are applying a Canadian law—that is, Bill C-23—which we think gives them too much power.

With respect to a traveller who now wishes to withdraw, the only limit contained in here is that in subclause 32(3), which says, “A preclearance officer may exercise the powers set out in subsection (2) only to the extent that doing so would not unreasonably delay the traveller’s withdrawal”.

In his committee appearance a week ago, the minister assured the committee that the “unreasonable” test would be sufficient, because it's quite common to use reasonableness in Canadian law. However, we don't believe it's sufficient protection. First of all, “reasonable” is not a scientific term. It does not have a black and white definition. It's very open to contextual interpretation. The courts struggle with it on a daily basis. A problem here, unlike with criminal law, is that there's very little opportunity for these matters to come before the courts. The act specifically says that you cannot take a decision to Federal Court, and you're very limited in criminal and civil remedies. There are virtually none. The only way it could be tested is if a person is charged with obstructing or refusing to answer, and they defend that charge on the grounds that an unreasonable delay occurred.

We don't believe there are going to be a lot of charges under this bill. We think it will create a framework to create a process that is coercive and intimidating. That's going to be the real problem, the experience that travellers will have. We don't think we're going to see courts interpret what's reasonable.

The other thing to remember in terms of reasonableness is the mandate is different. Our reasons for wanting pre-clearance legislation are not the same as the Americans' reasons. We want it to facilitate the free flow of goods and people. The Americans want it to expand the border outwards so they can stop bad guys before they get onto American soil. It's a totally different motivation. When we consider something is reasonable or unreasonable, we don't want an unreasonable delay because we don't want to interfere with that free flow. They want to protect American security. That's their number one mandate. When they interpret an unreasonable delay, and they're trying to protect American security, you can expect they're going to want to ask more questions than a Canadian officer would.

If a U.S. officer, for instance, suspects somebody is border probing, which is the supposed rationale for these provisions, they're not just going to want to accept the person's explanation that they want to leave the area because they think they left their iron plugged in. They're going to want to get deeper into it. A border prober is not going to give you the honest answer when you first ask; that's going to demand further examination.

Under the new administration in the United States, we've already seen media reports of Muslim Canadians being subjected to hours and hours of questioning about their religious beliefs, their religious practices, their associations, and their opinions of the new U.S. president. I think you've had this brought to your attention already.

To illustrate how this could unfold and the problem with the legislation, there is the interplay of clauses 31 and 32. I'll admit that we did not cover this very effectively in our brief. It's something that came to our attention after our brief, figuring out the interplay.

I want to ask you to imagine the scenario of a Canadian Muslim traveller going through a pre-clearance area and being subjected to extreme vetting—which we know is on the table now—about their religious practices, beliefs, and associations. Feeling abused, the traveller announces his intention to withdraw. The officer, who has not finished his interrogation, announces that he wants to explore the traveller's true reasons for withdrawing—perhaps suspecting he is a border prober. The officer believes the questioning is not unreasonable because of their security mandate. However, the traveller thinks it is unreasonable and after several questions says, “I'm not going to answer any more. I think this is an unreasonable delay. I want to leave.”

At that point, the officer announces that he has reasonable grounds to suspect that the traveller has committed an offence under an act of Parliament by not answering the questions truthfully. That brings in section 32, which gives the officer the right to detain the individual. Under the wording of section 32, the officer then is able to question the traveller, collect information from the traveller, and examine, search, and detain goods of the traveller. Goods have been interpreted by the courts and by the CBSA to include electronic devices.

So you can see this situation where the person says, “I don't want to answer any more of your questions.” We're not talking any longer about unreasonable delay, because that's off the table. The officer is now saying, “I have reasonable grounds to suspect that you've given me an untruthful answer. I don't really believe it's the unplugged iron. I think it has something to do with your associations.” At that point in time, there doesn't seem to be a limit on the questioning that can take place.

That is a major concern. There does not appear to be any recourse for that traveller. They risk getting charged. What we think is going to happen is that people are going to submit themselves to intense questioning just to not have a bad experience and not be kept out of the United States forever.

The rationale offered for this is the so-called fear of border probing. Border probing—I'd never heard this term before. What is it? In our opinion, after fair consideration, we think this is a solution in search of a problem. Border probing is apparently when somebody comes through an area, then tries to surreptitiously evade being questioned or identified by simply turning around and leaving. But that's not the way pre-clearance areas work. The very first thing that happens when you go into a pre-clearance area is that you give them your passport. They scan that passport, and they have you already. You're identified. You're not surreptitious. There's no surreptitious leaving.

Even if you could leave, what is it exactly that's being probed? Hundreds of thousands of travellers every year cross through those borders. The border probers aren't going to see anything more than you or I see when we go to the United States.

[The Chair, Liberal, Rob Oliphant]

I just want to draw your attention to the request for the project budget. This is the project budget related to this study, the budget for Bill C-23.

I've asked the clerk and he says it's pro forma, the usual amount for a study of a piece of legislation similar to this. It's in the total amount of $21,300 for our study. We'd like to be able to pay the witnesses' expenses by having a motion. Could I have a motion to approve the project budget for the study of Bill C-23?

[Joshua Paterson]

Thank you, Mr. Dubé.

One recommendation that we provide—and by the way, to answer Mr. Clement's question from the other day about recommendations, by now you should have our full brief in translation, with recommendations in it—is that it needs to be made clear that the refusal to answer any question asked by a pre-clearance officer doesn't in and of itself constitute grounds for the officer to suspect that an offence has been committed. Certainly, refusing to answer questions is germane to whether or not they want to let you into the United States, and that's their sovereign right, but someone's discomfort with answering certain questions isn't on its own, for our purposes, suggestive of an offence having been committed.

We note that a number of the standards have changed for doing certain things. Previously, in terms of someone being detained, if they weren't withdrawing, they could be detained by U.S. officers if it were believed—I believe it is—on reasonable grounds that they had misrepresented themselves to the officer or that they had obstructed a U.S. pre-clearance officer or had committed an offence under any act of Parliament. Bill C-23 expands this, or really just takes away those particulars and says that a U.S. officer is entitled to detain someone:

If a preclearance officer has reasonable grounds to believe that a person has committed an offence under an Act of Parliament,

We find this to be overly broad. It's not particular to when in time that offence happened. I don't suppose that U.S. officers will want to be on detention sprees, detaining people simply because of some conviction 25 years ago, but there may be some who would detain people on grounds that we might not find palatable, and this doesn't make it particular enough. When does the offence have to have been committed? Is it any offence under any act of Parliament? By the way, they took out the summary conviction or indictable offence piece. Does this mean administrative offences are now grounds for possible detention, however long ago they may have been committed?

We recommend that those be tightened up to state that U.S. pre-clearance officers should have the power to detain if they have “reasonable grounds to believe that the traveller has committed an offence under an act of Parliament, punished by indictment or summary conviction in connection with the travel”, or some wording that links the offence to the act that they're undertaking, to the pre-clearance of their travel.

[Andrea van Vugt, Vice-President, North America, Business Council of Canada]

Thank you, Mr. Chairman and honourable members.

I appreciate the opportunity to take part in your consultations on Bill C-23. I will be brief so that we have lots of time for questions.

The Business Council of Canada represents chief executives and entrepreneurs from approximately 150 leading Canadian companies in all sectors and regions of the country. Our member companies employ 1.7 million men and women, account for more than half the value of the Toronto Stock Exchange, contribute the largest share of federal corporate taxes, and are responsible for most of Canada's exports, corporate philanthropy, and private sector investments in research and development.

Our country's economic health depends heavily on the ease with which goods, people, and investment move back and forth across the Canada-U.S. border. In the words of Stephen Schwarzman, chairman of President Donald Trump's strategic and policy forum, the Canada-U.S. trade relationship “is really very much in balance and is a model for the way that trade relations should be.”

As the committee knows, Bill C-23 delivers on a key element of the beyond the border action plan, the intent of which was not only efficiency but also security. Passage of this legislation presents an opportunity to solidify the progress made today under beyond the border, an initiative our council strongly supports.

Can the United States have mutual interest in ensuring that legitimate travellers and goods can cross the border as efficiently as possible? Our safe and secure border is a competitive advantage for Canada over every country in the world. While air pre-clearance isn't restricted to Canada, the opportunity for expansion to the land, rail, and marine modes is. It's an opportunity unique to our country, and we should take advantage of it.

My friends at Rocky Mountaineer have already spoken to the benefits of this at our last meeting, but as we all know, travellers search for the path of greatest convenience and least resistance in air travel. The ability to pre-clear in our home country, step off the plane and hop into a cab or make a connection, is a tremendous advantage for Canada and Canadians doing business or visiting the United States. Expanding this resource to other airports and modes of travel just makes sense to us. Additionally, giving Canadian border personnel the ability to conduct pre-clearance in the United States offers Canada a competitive advantage.

Given our country's desire for increased trade investment and tourism, especially in the year of our birthday, it's clearly in our economic interest to make it easier to cross our border safely. Going further, Canada can and should use this legislation as a springboard to develop additional cargo pre-clearance capabilities that will enhance our economic competitiveness while relieving pressure on existing border facilities.

We know that this is a particularly complicated endeavour, given the multitude of U.S. agencies that have a role to play in cargo pre-clearance, but it is in Canada's economic interest to make it work.

In closing, we believe that this legislation sets the stage for an innovative risk-managed border that should be the model for the rest of the world.

With that, Mr. Chairman, I conclude my remarks, and I'm happy to take any questions.

[The Chair, Liberal, Rob Oliphant]

We'll have to call the subcommittee together fairly quickly and go over the agenda to make sure we get Bill C-23 done and to make sure we can start our next study as well.

All in favour of this going to the subcommittee on agenda and procedure?

(Motion agreed to)

Welcome. I'm going to suggest that we work for about 45 minutes on this topic. We will then have about 35 minutes for questioning.

Take it away.

[The Chair (Mr. Robert Oliphant (Don Valley West, Lib.)), Liberal, Rob Oliphant]

Colleagues, I call to order the 64th meeting of the Standing Committee on Public Safety and National Security. In our first hour we will consider Bill C-23, an act respecting the pre-clearance of persons and goods in Canada and the United States.

Thank you, Ms. van Vugt. You've been sitting here all weekend, I'm sure, waiting for us to come back.

[Alroy Chan, Senior Director, Corporate Development, Rocky Mountaineer]

Mr. Chair, members of the committee, thank you for inviting us to appear before you today.

As I am sure you are aware, Rocky Mountaineer's station in Vancouver is one of the four Canadian sites identified for expansion of pre-clearance operations under the new pre-clearance agreement between Canada and the United States, which Bill C-23 seeks to ratify and implement.

We genuinely appreciate the opportunity to share with you our company's story and how pre-clearance will have a positive impact on Canadian and international travellers transiting between Canada and the United States. Expanded pre-clearance in the land, marine, and rail modes will greatly benefit business and leisure travellers alike and generate increased economic activity due to more efficient border operations.

By way of background, Rocky Mountaineer is a proudly 100% Canadian family-owned business that has been operating as a private company in western Canada since 1990, when it was then privatized by the federal government. Since the privatization, we have grown to become the world's largest privately owned luxury tourism train company. We have welcomed aboard nearly two million guests from around the world to enjoy an unparalleled experience on board our all-dome fleet, which offers rich historic storytelling, authentic Canadian hospitality, world-class cuisine, and a first-hand look at the vast and untouched natural beauty of western Canada.

Our company's purpose from day one remains the same: to be creators of life-changing experiences for both our guests and our team members.

Rocky Mountaineer is considered one of the best ways to see the Canadian Rockies and has received numerous international awards and accolades for service excellence. These honours include eight World Travel awards, “World's Leading Travel Experience By Train”, and “World's Leading Luxury Train”. We've also been listed as a “Dream Trip” by Travel + Leisure magazine.

We offer over 65 unique Canadian vacation packages on four distinctive rail routes—all rich in history and natural wonders—through British Columbia, Alberta, and, most recently, into Washington state. Before or after a Rocky Mountaineer journey, a significant number of our guests visit other parts of Canada.

Rocky Mountaineer is proud to employ a strong, passionate team of almost 700 individuals. Each year since 2014, we have been recognized as one of Canada's best-managed companies. In addition, we have earned the “employer of the year” title from the Tourism Industry Association of Canada multiple times, as well as being named one of Canada's “top small and medium employers”.

Those of us who are fortunate enough to spend our time as part of Canada's vibrant tourism community know what an honour it is to be able to showcase the uniqueness and generosity of our great country. We also appreciate our industry's role as an important economic driver for Canada. Each year, tourism in Canada generates $35 billion of GDP—more than forestry, agriculture, and fisheries combined—and employs over 637,000 Canadians. Tourism is one of the fastest-growing industries in Canada and the world.

Rocky Mountaineer is proud of the contributions we are making to our community and the economy, be it from our operations directly, through our partnerships with 1,540 suppliers across the country, or by virtue of the spending of our passengers. Rocky Mountaineer is a significant contributor to the Alberta and B.C. economies. As a matter of perspective, Rocky Mountaineer's GDP contributions in Canada are equivalent to approximately 50% of the Vancouver cruise ship industry's annual GDP contributions in Canada or the employment supported by the construction of 1,200 new homes.

We are very proud of the fact that for every 1,000 tourists who purchase a Rocky Mountaineer journey, approximately $3 million of GDP is directly added to the Canadian economy as our guests stay, dine, cruise, sightsee, and more while enjoying B.C., Alberta, and the Canadian Rockies. Over 80% of our guests are international tourists, with those from the United States, Australia, and the United Kingdom representing our largest markets.

Our newest rail route between Vancouver and Seattle, Washington, which was introduced in 2013, is offered to tourists as a means of connecting the U.S. directly to the Canadian Rockies. This route has been quite popular. We are proud of the fact that our annual guest count growth rate on this route has averaged 20% since its inception. This route shows great promise for us, as cruise passengers are an increasing priority customer base for us. We believe that a breathtaking train journey is an attractive complement to the beginning or the end of a cruise.

While U.S. pre-clearance has long been established at many airports in Canada, ratification of the new agreement between Canada and the U.S., through Bill C-23, will extend benefits for those travelling across our border by train, car, bus, and ship. Currently we have a post-clearance customs and immigration process on our Vancouver to Seattle route. On the southbound journey, U.S. Customs and Border Protection officers conduct customs and immigration processes on board our train upon arrival in Seattle's train station. On the northbound journey, our train arrives in Vancouver's Pacific Central Station where CBSA officers conduct post-clearance procedures.

The average customs and immigration clearance process takes approximately 30 to 45 minutes to clear an entire train set. With the potential implementation of pre-clearance at Rocky Mountaineer Station, we believe we can reduce the processing time and improve security while simultaneously improving our guests' cross-border experience.

Since 2010, Rocky Mountaineer has been a committed and active participant with Canadian and American governments in advancing customs and immigration procedures. For example, we worked collaboratively with U.S. Customs and Border Protection to pilot their new hand-held mobile clearance devices on our Vancouver to Seattle route.

We are pleased to see that the government is continuing to collaborate with industry to improve the arrival experience for visitors. As a company in the business of providing people with life-changing experiences, pre-clearance will ensure a seamless and efficient arrival experience for our guests travelling between Vancouver and Seattle. Once pre-clearance is fully implemented, it will remove an extra step for tourists and travellers, who will simply be able to disembark upon arrival. Pre-clearance will create a much smoother guest experience for us and other cross-border tourism and transportation providers.

In B.C., in addition to Rocky Mountaineer, we know there are numerous other transportation and tourism companies that will greatly benefit from expanded pre-clearance to the marine and rail sectors. For example, Black Ball Ferry operates a daily ferry service from Victoria, B.C. to Port Angeles, Washington, and annually carries over 400,000 passengers, 127,000 passenger vehicles, and $250 million worth of commercial goods. In addition, the Victoria Clipper operates a daily passenger-only ferry service between Victoria and Seattle.

Similarly, on the rail side, our Amtrak colleagues operate a successful twice-daily rail service connecting Vancouver and Seattle.

All of these companies will appreciate the smoother, safer operations that pre-clearance will bring. Undoubtedly, expanded pre-clearance will support continued growth in Canada's valuable tourism industry.

Rocky Mountaineer is dedicated to showcasing Canada as the world's premier travel destination. We are looking to build on our success and continually seek opportunities to grow our business in Canada. We recently made the largest capital investment in the history of our company. The capital program includes the acquisition of 10 new custom-designed bi-level domed rail cars, eight custom-built single-level domed cars, and a major refurbishment program to our existing fleet of 16 bi-level domed cars.

It is our ambition that with this increased capacity, and with pre-clearance capabilities, we can achieve our aggressive growth plans to host most guests, expand our operations, and build even more world-class attractions. We are well under way in achieving these goals. Our 2017 operating season, coinciding with Canada's 150th anniversary celebrations, will be the best year in the history of Rocky Mountaineer.

We continue to assess ways to leverage pre-clearance to expand our reach into the American market, and will develop a pre-clearance program for our guests that will ensure an even more seamless journey between our two great countries. We look forward to continuing to work with government on pre-clearance implementation and other feature initiatives to grow Canada's vibrant tourism industry.

Thank you, and we'd be pleased to take any questions you may have.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Okay, so it will be fully covered under Bill C-23 if—