Good afternoon, Madam Chair and members of the committee. I appreciate the opportunity to offer a few observations and a recommendation on this important legislation.
My comments are provided from the perspective of commercial shipping, marine transportation and, more generally, international trade. The Chamber of Shipping represents interests of shipowners, their agents, and service providers responsible for over 60% of Canadian international trade by ship. Some of our members also move bulk liquids and products of all types, including petroleum and chemical products, on both the east and west coasts.
Marine transportation includes everything from people in ferries and cruise ships to bulk commodities such as grain that is exported to Asia, to larger container ships moving goods that Canadian companies sell globally, and manufacturing goods that Canadians use in their day-to-day lives. Needless to say, marine transportation and its many spinoffs benefit and touch Canadians in their day-to-day lives.
I've been involved personally with marine conservation initiatives on all three of Canada's coasts and on the Great Lakes, and I am a member of the national Species at Risk advisory committee. As a former senior officer in the Royal Canadian Navy, I was also responsible for monitoring and coordinating surveillance in support of coastal protection. The Great Bear Sea on the north coast of British Columbia is indeed one of the richest marine ecosystems in the world and has enormous cultural significance to the people who live there, and it contains important resources for British Columbia's economy. Protecting it should be a priority, and in that respect, I doubt that anyone would question that goal.
Protection of our coastal environment goes hand in hand with being able to build trust with both Canadians and our international shipping customers. Furthermore, the ability to protect our coastal environment responsibly will also ensure the continued competitiveness of our trading gateways at a time when competitive pressures, especially from the United States, are increasing. This region is also an important trading gateway for Canada. It includes the country's fastest growing port, the Port of Prince Rupert, in addition to a number of smaller ports that afford future opportunities.
Within this context, there are three aspects of the proposed legislation that I would suggest are worthy of consideration by the committee. The first is the process and study that supported the identification and the list of scheduled commodities. The schedule was somewhat of a surprise when it was announced in May of this year, and until only recently the study that supported the decision to limit the scheduled commodities was also unavailable.
The study appears to have lacked some consultation with shipowners and operators, who currently move some of the products included on the proposed schedule. If the dialogue would have happened, those leading the study would have learned that most shipowners do not ship small quantities of a single product in a single sailing but frequently have cargo left on board that is destined for other ports. In this manner, a shipowner leverages efficiencies through multiple orders of a single or similar product. Limiting the quantity of scheduled commodities to 12.5 metric tonnes could result in unintended consequences, such as increased freight charges or a complete disruption in the supply chain.
Secondly, careful consideration should be given to whether the legislation is inconsistent with Canada's commitment to the United Nations Convention on the Law of the Sea, or UNCLOS. The intent of article 9 of this convention is to ensure that all ships, unless operating in a manner prejudicial to peace, good order, and security of another country, shall be provided innocent passage.
Article 24 reinforces this requirement on a coastal state, demanding that it shall not impose requirements on foreign ships which have the practical effect of denying or impairing the right of innocent passage. Furthermore, articles 194 and 211 also empower a nation to protect its marine environment and to harmonize, as much as possible, such laws and regulations with neighbouring states and international regulations more generally.
Thirdly and perhaps most importantly, this legislation establishes a precedent in Canada for managing our national supply chain and is another layer of complexity in the already multi-faceted supply chain, thereby making Canada a more complex country in which to operate. While the bill intends to embody the precautionary principle, it has not provided and is not providing a constructive framework for properly reviewing the maritime transportation supply chain of B.C.'s north coast.
I would like to make one simple recommendation. The proposed amendments to another piece of government legislation, namely Bill C-55, an act to amend the Oceans Act and the Canada Petroleum Resources Act, also embodies the precautionary principle. In the way that Bill C-55 takes a precautionary approach and then demands analysis and an evidence base to support a longer-term management plan, we heartedly recommend that the oil moratorium act also contain language that would require a risk assessment to be conducted at minimum every five years, such that it could inform the regulatory process of scheduled products.
In this manner Bill C-48 would take a similar approach to that of Bill C-55, a harmonized approach. It would be grounded in an evidence-based analysis that would engage affected stakeholders collaboratively and would also provide a responsible legislative framework that could be sustained over the long term.
Thank you, again, for this opportunity, and I welcome any of your questions.
