This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.
Bill Morneau Liberal
This bill has received Royal Assent and is now law.
This is from the published bill.
Part 1 implements certain income tax and related measures by
(a) introducing rules intended to provide greater certainty with respect to various tax consequences arising from certain foreign divisive reorganizations;
(b) ensuring that the existing cross-border anti-surplus stripping rule cannot be circumvented through transactions involving the use of partnerships or trusts;
(c) introducing rules to prevent misuse of the foreign accrual property income regime through the use of tracking interests involving foreign affiliates;
(d) ensuring consistency between the trading or dealing in indebtedness rules and the investment business rules within the foreign accrual property income regime;
(e) ensuring that the at-risk rules apply appropriately at each level of a tiered partnership structure;
(f) providing that the Minister of Public Safety and Emergency Preparedness can determine international operational missions for the purpose of the deduction available for income earned by members of the Canadian Forces or police officers on such missions;
(g) amending the synthetic equity arrangement rules and securities lending arrangement rules to prevent the artificial generation of losses through the use of equity-based financial instruments;
(h) ensuring that social assistance payments under certain programs do not preclude individuals from receiving the Canada Child Benefit;
(i) ensuring that an individual who is eligible to receive the Canada Workers Benefit can receive the benefit without having to claim it;
(j) introducing a refundable tax credit for the purposes of the climate action incentive;
(k) providing allocation rules for losses applied against Part IV taxes;
(l) preventing the creation of artificial losses on shares held as mark-to-market property by financial institutions;
(m) revising the rules relating to the non-partisan political activities of charities;
(n) ensuring that a taxpayer is subject to a three-year extended reassessment period in respect of any income, loss or other amount arising in connection with a foreign affiliate of the taxpayer;
(o) providing the Canada Revenue Agency with an extended reassessment period of an additional three years, to the extent that the reassessment relates to the adjustment of a loss carryback for transactions involving a taxpayer and non-resident non-arm’s length persons;
(p) extending the reassessment period of a taxpayer by the period of time during which a requirement for information or compliance order is contested;
(q) requiring that information returns in respect of a taxpayer’s foreign affiliates be filed within 10 months after the end of the taxpayer’s taxation year;
(r) enabling the disclosure of taxpayer and other confidential tax information to Canada’s bilateral mutual legal assistance treaty partners for the purposes of non-tax criminal investigations and prosecutions of certain serious crimes; and
(s) providing a deduction for employee contributions to the enhanced portion of the Quebec Pension Plan.
Part 1 also amends the Mutual Legal Assistance in Criminal Matters Act to, among other things, define the term “agreement” as applying, among other things, to tax information exchange agreements and tax treaties to which Canada is a party, and provide for orders to produce financial information for the purposes of investigation and prosecution of certain offences set out in subsection 462.48(1.1) of the Criminal Code. The enactment also amends paragraph 462.48(2)(c) of the Criminal Code to provide that information may also be gathered under Part IX of the Excise Tax Act and under the Excise Act, 2001.
Part 2 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) replacing the requirement that GST/HST be collected on a sale of carbon emission allowances with a requirement that the purchaser self-assess that GST/HST;
(b) extending the assessment period for group registered education savings plan trusts that make a special relieving election in respect of their past HST liability;
(c) introducing GST/HST rules in respect of investment limited partnerships;
(d) clarifying the intended tax policy of excluding books that are sold by a public service body from the GST/HST rebate for printed books;
(e) introducing amendments similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested; and
(f) introducing amendments similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes.
Part 3 implements certain excise measures by
(a) broadening the refund regime in respect of excise tax on diesel fuel to allow a vendor to apply for a refund where a purchaser will use excise tax-paid diesel fuel to generate electricity, if certain conditions are met;
(b) introducing an anti-avoidance excise measure relating to the taxation of cannabis in respect of the rules establishing the value of a cannabis product on which an ad valorem duty is calculated;
(c) introducing amendments to the Air Travellers Security Charge Act and the Excise Act, 2001 that are similar to those to the Income Tax Act to extend the assessment period of a person by the period of time during which a requirement for information or compliance order is contested;
(d) introducing amendments to the Excise Act, 2001 that are similar to those to the Income Tax Act to enable the disclosure of confidential information to Canada’s bilateral mutual legal assistance treaty partners, or to Canadian police officers, for the purposes of non-tax criminal investigations and prosecution of certain serious crimes; and
(e) making housekeeping amendments to the Excise Act, 2001 in order to ensure consistency between the English and French version of the legislation.
Part 4 enacts and amends several Acts in order to implement various measures.
Division 1 of Part 4 amends the Customs Tariff in order to simplify it and reduce the administrative burden for Canadian businesses and the Government of Canada by consolidating similar tariff items that have the same tariff rates and removing end-use provisions where appropriate. The amendments also clarify existing tariff provisions and make other technical amendments.
Division 2 of Part 4 amends the Canada Pension Plan to modify the calculation of the amount to be attributed for a year in which a contributor is a family allowance recipient and their first or second additional contributory period begins or ends.
Subdivision A of Division 3 of Part 4 amends the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things,
(a) establish thresholds below which the acquisition of control of certain entities, or the acquisition or increase of a substantial investment in them, does not require the approval of the Superintendent of Financial Institutions;
(b) allow financial institutions to invest in the Canadian business growth fund; and
(c) ensure that customers can provide consent electronically to receive electronic documents.
It also corrects a reference to the Insurance Companies Act in the Budget Implementation Act, 2018, No. 1.
Subdivision B of Division 3 of Part 4 amends the Canada Deposit Insurance Corporation Act to, among other things,
(a) make technical amendments to clarify the method of calculating insured deposits, to remove outdated references, to repeal certain provisions not yet in force and to clarify that withdrawals made following the amalgamation of two or more member institutions or the continuance as a federal credit union will be considered to be made from pre-existing deposits and that the separation of accounts following the amalgamation is limited to a period of two years;
(b) exclude amounts borrowed by the Canada Deposit Insurance Corporation under paragraph 60.2(2)(c) of the Financial Administration Act from the calculation of the Corporation’s total principal indebtedness; and
(c) clarify that the liquidator of a member institution of the Canada Deposit Insurance Corporation must not apply the law of set-off or compensation to a claim related to insured deposits.
It also repeals two sections of the Financial System Review Act.
Subdivision C of Division 3 of Part 4 amends the Office of the Superintendent of Financial Institutions Act, the Trust and Loan Companies Act, the Bank Act and the Insurance Companies Act to, among other things, clarify that providing legally privileged information to the Superintendent of Financial Institutions does not constitute a waiver of the privilege.
Division 4 of Part 4 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to remove the right of persons to decide not to proceed further with importing or exporting currency or monetary instruments that are required to be reported.
Division 5 of Part 4 amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act to, among other things, allow for the application, within the offshore area, of the provincial greenhouse gas pricing regime and to confer powers and impose duties and functions on the Canada–Newfoundland and Labrador Offshore Petroleum Board for the application of that regime. It also amends the Greenhouse Gas Pollution Pricing Act to provide that the provincial regime does not apply if the offshore area is mentioned in Part 2 of Schedule 1 to that Act. Finally, it amends the Offshore Health and Safety Act to postpone the repeal of certain regulations.
Division 6 of Part 4 amends the Canada Business Corporations Act to set out criteria for identifying individuals with significant control over a corporation. The Division also sets out a requirement for a corporation that meets certain criteria to keep a register of individuals with significant control and requirements respecting the information to be recorded in it. Finally, the Division includes applicable offences and punishments.
Subdivision A of Division 7 of Part 4 amends the Patent Act in order to
(a) provide a regulation-making authority for the establishment of requirements for written demands relating to patents;
(b) specify that an act committed for the purpose of experimentation relating to the subject matter of a patent is not an infringement of the patent and that licencing commitments that bind the owner of a standard-essential patent or the holder of a certificate of supplementary protection that sets out such a patent bind any subsequent owners or holders;
(c) expand the rights of a person in respect of a claim in a patent who meets the requirements to be considered a prior user;
(d) ensure that patent prosecution histories may be admissible into evidence for certain purposes;
(e) clarify when a late fee must be paid in respect of divisional applications as well as when the confidentiality period begins in the case where a request for priority is deemed never to have been made.
Subdivision B of Division 7 of Part 4 amends the Trade-marks Act to, among other things,
(a) add bad faith as a ground of opposition to the registration of a trade-mark and for the invalidation of a trade-mark registration;
(b) prevent the owner of a registered trade-mark from obtaining relief for acts done contrary to section 19, 20 or 22 of that Act during the first three years after the trade-mark is registered unless the trade-mark was in use in Canada during that period or special circumstances exist that excuse the absence of use;
(c) clarify that the prohibitions in subparagraph 9(1)(n)(iii) and section 11 of that Act do not apply with respect to a badge, crest, emblem or mark that was the subject of a public notice of adoption and use as an official mark if the entity that made the request for the public notice is not a public authority or no longer exists; and
(d) modernize the conduct of various proceedings before the Registrar of Trade-marks, including by providing the Registrar with additional powers in such proceedings.
It also makes certain housekeeping amendments to provisions of the Trade-marks Act that are enacted by the Economic Action Plan 2014 Act, No. 1 and the Combating Counterfeit Products Act.
Subdivision C of Division 7 of Part 4 amends the Copyright Act in order to specify that certain information is not permitted to be included within a notice under the notice and notice regime and to provide for a regulation-making power to prohibit further types of information from being included within such a notice.
Subdivision D of Division 7 of Part 4 enacts the College of Patent Agents and Trade-mark Agents Act. That Act establishes the College of Patent Agents and Trade-mark Agents, which is to be responsible for the regulation of patent agents and trade-mark agents in the public interest. That Act, among other things,
(a) requires that individuals obtain a licence in order to act as patent agents or trade-mark agents and that licensees comply with a code of professional conduct;
(b) authorizes the College’s Investigations Committee to receive complaints and conduct investigations into whether a licensee has committed professional misconduct or was incompetent;
(c) authorizes the College’s Discipline Committee to impose disciplinary measures if it decides that a licensee has committed professional misconduct or was incompetent; and
(d) creates new offences of claiming to be a patent agent or trade-mark agent and unauthorized representation before the Patent Office or the Office of the Registrar of Trade-marks.
That Subdivision also makes consequential amendments to certain Acts.
Subdivision E of Division 7 of Part 4 amends the Bankruptcy and Insolvency Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of in an insolvency proceeding or when the agreement relating to such property rights is disclaimed or resiliated in such a proceeding. It also amends the Companies’ Creditors Arrangement Act to provide that intellectual property users may preserve their usage rights when intellectual property rights are sold or disposed of.
Subdivision F of Division 7 of Part 4 amends the Access to Information Act and the Privacy Act to provide that the head of a government institution may refuse to disclose, under either of those Acts, information that is subject to the privilege set out in section 16.1 of the Patent Act or section 51.13 of the Trade-marks Act. It makes a related amendment to the Pest Control Products Act.
Subdivision G of Division 7 of Part 4 amends the National Research Council Act to clarify that the National Research Council of Canada has the authority to dispose of all forms of intellectual property that it develops, including future rights to such property and to provide the Council with the authority to dispose of real, personal, movable and immovable property, complementing the current provision in the Act that allows it to acquire such property.
Subdivision H of Division 7 of Part 4 amends the Copyright Act in order to modernize the legislative framework relating to the Copyright Board so as to improve the timeliness and clarity of its proceedings and decision-making processes. More specifically, it repeals spent provisions and
(a) codifies the Board’s mandate and establishes decision-making criteria;
(b) establishes new timelines in respect of Board matters, including earlier filing dates for proposed tariffs and longer effective periods for approved tariffs, and empowers the Governor in Council to make additional timelines by regulation;
(c) formalizes case management of Board proceedings;
(d) reduces the number of matters that must be considered by the Board;
(e) streamlines procedural steps across different tariff contexts, maintaining differences between them only where necessary;
(f) amends relevant enforcement provisions, including the availability of statutory damages for certain parties in respect of Board-set royalty rates and enforcement of Board-set terms and conditions; and
(g) modernizes existing language and structure for greater clarity and consistency.
Division 8 of Part 4 amends the Employment Insurance Act to, among other things, increase the maximum number of weeks for which parental benefits may be paid if these benefits are divided between claimants. It also amends the Canada Labour Code to, among other things, increase the aggregate amount of leave that may be taken by employees under sections 206.1 and 206.2 if that leave is divided between employees.
Division 9 of Part 4 enacts the Canadian Gender Budgeting Act in order to state the Government’s policy of promoting gender equality and inclusiveness by taking gender and diversity into consideration in the budget process. It also establishes related reporting requirements.
Division 10 of Part 4 amends the Bank Act to strengthen provisions that apply to a bank or an authorized foreign bank in relation to the protection of customers and the public. It implements enhancements in the areas of corporate governance, responsible business conduct, disclosure and transparency, and redress. It also amends the Financial Consumer Agency of Canada Act to strengthen the mandate of the Financial Consumer Agency of Canada and grant additional powers to that Agency.
Division 11 of Part 4 amends the First Nations Land Management Act to give effect to amendments to the Framework Agreement on First Nation Land Management respecting, among other things, procedures for obtaining community approval of a land code, the lands to which a land code may apply, the addition of lands to First Nation land by order of the Minister and the transfer of capital moneys.
Division 12 of Part 4 amends the First Nations Fiscal Management Act to, among other things,
(a) enable more Aboriginal organizations and First Nations to benefit from the provisions of the Act in order to strengthen their financial management systems and give them access to long-term financing;
(b) address certain administrative issues identified by the bodies established under the Act; and
(c) provide another option for First Nations to access moneys held by Her Majesty for their use and benefit.
Division 13 of Part 4 amends the Export and Import Permits Act to give the Minister of Foreign Affairs the authority to issue an import allocation for goods that are included on the Import Control List under subsection 5(6) of that Act.
Division 14 of Part 4 enacts the Pay Equity Act to establish a proactive process for the achievement of pay equity by the redressing of the systemic gender-based discrimination experienced by employees who occupy positions in predominantly female job classes. The new Act requires federal public and private sector employers that have 10 or more employees to establish and maintain a pay equity plan within set time frames so as to identify and correct differences in compensation between predominantly female and predominantly male job classes for which the work performed is of equal value. The new Act provides for the powers, duties and functions of a Pay Equity Commissioner, which include facilitating the resolution of disputes, conducting compliance audits and investigating disputes, objections and complaints, as well as making orders and imposing administrative monetary penalties for violations of that Act. The new Act also requires the Pay Equity Commissioner to report annually to Parliament on the administration and enforcement of the new Act.
Division 14 also amends the Parliamentary Employment and Staff Relations Act to provide for the application of the Pay Equity Act to parliamentary employers with certain adaptations and without limiting the powers, privileges and immunities of the Senate, the House of Commons and the members of those Houses.
It also makes the Minister of Labour responsible for the administration of the Federal Contractors Program for Pay Equity.
Finally, it makes related and consequential amendments to certain Acts and repeals the section of the Budget Implementation Act, 2009 that enacts the Public Sector Equitable Compensation Act.
Subdivision A of Division 15 of Part 4 amends the Canada Labour Code to, among other things,
(a) provide five days of paid leave for victims of family violence, a personal leave of five days with three paid days, an unpaid leave for court or jury duty and a fourth week of annual vacation with pay for employees who have completed at least 10 consecutive years of employment;
(b) eliminate minimum length of service requirements for leaves and general holiday pay and reduce the length of service requirement for three weeks of vacation with pay;
(c) prohibit differences in rate of wages based on the employment status of employees;
(d) address continuity of employment issues when a work, undertaking or business becomes federally regulated or in cases of contract retendering; and
(e) update group and individual termination provisions by increasing the minimum notice of termination.
Subdivision B of Division 15 of Part 4 amends the Canada Labour Code to allow the Minister of Labour to designate a Head of Compliance and Enforcement who will exercise most of the powers and perform most of the duties and functions that are related to the administration and enforcement of Parts II, III and IV of the Code.
Division 16 of Part 4 amends the Wage Earner Protection Program Act to, among other things, increase the maximum amount that may be paid to an individual under the Act, expand the definition of eligible wages, expand the conditions under which a payment may be made under the Act and create additional requirements related to Her Majesty in right of Canada’s right of subrogation in respect of payments made under the Act.
Division 17 of Part 4 amends the Bretton Woods and Related Agreements Act, the European Bank for Reconstruction and Development Agreement Act and the Official Development Assistance Accountability Act to harmonize the periods within which the reports under those Acts must be laid before Parliament in order to better communicate Canada’s international development efforts. It also repeals the definition of “official development assistance” in the Official Development Assistance Accountability Act and confers the power to define this expression by regulation.
Division 17 also enacts the International Financial Assistance Act, which provides the Minister of Foreign Affairs and the Minister for International Development with powers, duties and functions to support the delivery of a sovereign loans program, an international assistance innovation program and a federal international assistance program that promotes the mitigation of or adaptation to climate change through repayable contributions.
Division 18 of Part 4 enacts the Department for Women and Gender Equality Act which, among other things, establishes the Department for Women and Gender Equality to assist the Minister responsible for that department in exercising or performing the Minister’s powers, duties and functions that extend to and include all matters relating to women and gender equality, including the advancement of equality in respect of sex, sexual orientation, or gender identity or expression and the promotion of a greater understanding of the intersection of sex and gender with other identity factors. It also contains transitional provisions. Finally, Division 18 makes consequential amendments to other Acts.
Division 19 of Part 4 enacts the Addition of Lands to Reserves and Reserve Creation Act which authorizes a Minister, designated by the Governor in Council, to set apart lands as reserves for the use and benefit of First Nations. The Division also repeals Part 2 of the Manitoba Claim Settlements Implementation Act and the Claim Settlements (Alberta and Saskatchewan) Implementation Act.
Division 20 of Part 4 amends section 715.42 of the Criminal Code to require the publication of any decision not to publish a remediation agreement or order related to that agreement and of any decision related to the review of such a decision, to specify that the court may make the first decision subject to a condition, including one related to the duration of non-publication, and to allow anyone to request a review of that decision.
Division 21 of Part 4 enacts the Poverty Reduction Act, which sets out two targets for poverty reduction in Canada.
Division 22 of Part 4 amends the Canada Shipping Act, 2001 to, among other things,
(a) authorize the Governor in Council to make regulations respecting the protection of the marine environment from the impacts of navigation and shipping activities;
(b) authorize the Minister of Transport to
(i) make an interim order to mitigate risks to marine safety or to the marine environment, and
(ii) exempt any person or vessel from the application of any provision of that Act or the regulations if doing so would allow the undertaking of research and development that may enhance marine safety or environmental protection;
(c) increase the maximum amount of an administrative penalty that the Governor in Council may fix by regulation;
(d) authorize the Minister of Fisheries and Oceans, pollution response officers and accompanying persons to enter private property in the case of a discharge of oil from a vessel or oil handling facility; and
(e) double the administration monetary penalties for certain violations.
Division 23 of Part 4 amends the Marine Liability Act to modernize the Ship-source Oil Pollution Fund, including, among other things,
(a) removing the Fund’s per-occurrence limit of liability;
(b) in the event that the Fund is depleted, authorizing the temporary transfer to the Fund of funds from the Consolidated Revenue Fund;
(c) modernizing the Fund’s levy so that the Fund is replenished by receivers and exporters of oil;
(d) ensuring that the Fund’s liability for claims for economic losses caused by oil pollution aligns with international conventions;
(e) providing that the Fund is liable for the costs and expenses incurred by the Minister of Fisheries and Oceans or any other person in respect of preventive measures when the occurrence for which those costs and expenses were incurred has not yet created a grave and imminent threat of causing oil pollution damage;
(f) authorizing the provision of up-front emergency funding out of the Fund to the Minister of Fisheries and Oceans for significant oil pollution incidents;
(g) creating an expedited, simplified process for small claims to the Fund; and
(h) providing for administrative monetary penalties for contraventions of specified or designated provisions under that Act.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
November 6th, 2018 / 10:05 a.m.
Director, Legislative and Environmental Affairs, Shipping Federation of Canada
There were consultations regarding the general concepts. In terms of what's happening with Bill C-86, it's obviously very difficult for the industry to keep up. The brief is the result of two days of work over the weekend.
Are all the members of my association aware of the details of the proposals? No. We had to do our best.
Robert Aubin NDP Trois-Rivières, QC
Thank you. I'll try to be brief.
Ms. Simard, my first question is for you.
You probably work miracles at home. I was very surprised that you managed to prepare a report for us in such a short amount of time. You already answered my first question in your opening remarks. I was wondering whether you had time to address the whole issue. Obviously, the answer is no.
I'm sure that you have the authority to speak on behalf of the members of the association that you're representing. However, could you tell me the extent to which these people feel affected by Bill C-86 or are aware of what's happening?
Robert Lewis-Manning President, Chamber of Shipping
Good morning, Madam Chair and members of the committee. I appreciate the opportunity to offer observations and early recommendations that pertain to certain sections of the most recent budget bill tabled last week.
The chamber has worked closely with government, coastal communities and other stakeholders on most aspects of the oceans protection plan, including critical work associated with protecting species at risk and the numerous conservation initiatives currently under way.
You are well aware, particularly after your recent committee trip to British Columbia, that marine transportation is critical to supporting Canada's international trade, and that a safe, competitive and predictable operating framework is good for Canadians, the Canadian economy and the many industries that drive that economy and rely upon marine transportation.
I'll speak to four elements of the proposed legislation, and some of it will be repetitive, namely the three that refer to authorizations under the Canada Shipping Act. I have more general comments with respect to the Marine Liability Act.
With respect to the Canada Shipping Act, Bill C-86 amends the act, and explicitly provides the authorization for the administration and enforcement of the act to other levels of government, including provinces and indigenous groups. If there is intent to delegate authorities to a province, for example, we would be concerned about the capability of a delegated authority to fulfill such a complex mandate and the increasing potential for a patchwork approach to administering Canada's supply chain.
The oversight of Canada's supply chain is managed nationally by the federal government, because it is complex, and there is a high degree of integration and reliance across transportation modes. This helps to ensure a predictable and competitive environment for Canadian businesses.
The draft bill also authorizes regulatory powers to protect the marine environment. This makes sense, and we understand and support the intent of this regulatory power. Notwithstanding that, we also have reservations about its implementation and the potential for associated regulations conflicting with Canada's commitment to international conventions, such as the United Nations Convention on the Law of the Sea. This may have also been a lost opportunity for seeking additional regulatory powers such as those to designate anchorages, not just regulate or prohibit such operations.
We have significant concerns about the regulatory power to prohibit the loading and unloading of a vessel, as it already exists under the Canadian port state control regime. It appears to be another mechanism with which to implement a moratorium on specific commodities through regulations or an interim order, and contradicts the objectives of providing a predictable supply chain.
Bill C-86 also authorizes the minister to make interim orders. Overall, this also makes sense, and there are many examples of when it could have been employed in the past. However, in its current form, this authority lacks appropriate guidance to the minister on its use, and has requirements to consult with other ministers on the science justification, for example.
In both cases of these relevant clauses, 690 and 692, there needs to be a requirement for compelling evidence and/or science that ensures that such regulations or interim orders are sensible, and that such action will not have adverse consequences to marine safety or marine protection.
With respect to the Marine Liability Act, Bill C-86 provides for changes to liability of the ship-source oil pollution fund for economic loss when property has not been impacted, creating a potentially unmanageable situation where claims for pure economic loss lack any sensible limits or guidelines.
The potential for unsubstantiated claims of pure economic loss could increase the exposure of the fund, and consequently the exposure of shippers, receivers and carriers, and potentially the economy as a whole, if the fund has to absorb that cost. Ultimately, this may not address the challenge it is aiming to resolve, and could result in increased costs, making Canada's supply chain less competitive. We just don't know at this point.
We believe that this aspect of the bill has not been subject to any consultation, could have significant and long-lasting impacts, and therefore should be delayed and properly examined. Despite our specific concerns that I've already mentioned, we acknowledge the positive amendments designed to enhance the flexibility to and timeliness for intervening when a pollution incident may be possible or imminent.
Commercial marine transportation depends on a predictable, global regulatory framework in order to plan and deliver a safe, reliable, responsible and cost-effective transportation solution. As Canada progresses with improvements to its pollution response, compensation and liability regimes, it should recognize that major changes to this regime need thorough analysis, dialogue with stakeholders, especially regulated industries, and sufficient time for protection and indemnity providers—insurers—to evaluate increased levels of exposure.
Marine transportation providers come in all shapes and sizes. There are numerous small Canadian commercial operators that may not even be aware of the changes as proposed, let alone be in a position to abide by them in short order and without the appropriate time to review their own operations and commercial practices.
Thank you, Madam Chair.
Sonia Simard Director, Legislative and Environmental Affairs, Shipping Federation of Canada
Good morning. My name is Sonia Simard.
I am appearing today on behalf of the Shipping Federation of Canada.
Our objective is to provide the perspective of shipowners on some of the marine amendments contained in Bill C-86.
Although we are grateful for the opportunity to appear before this committee, we are indeed concerned with the very fast pace at which the bill is proceeding right now. Yesterday we submitted a brief to this committee in which we outlined some of our concerns with Bill C-86 and proposed some specific amendments.
More specifically, we recommended, first, that the marine transportation amendments be extracted from Bill C-86 and addressed as a stand-alone bill in order to ensure that there is sufficient time to proceed with a proper examination of the proposal.
If this is not done, we would urge this committee to proceed, at a minimum, with some specific amendments. Today we are addressing, more specifically, division 22 of Bill C-86.
That division provides the minister and the Governor in Council with additional powers in relation to regulation for protection of the environment. The shipowners and vessels we represent are committed to safe and sustainable transportation, so our concerns with the proposals are not with the objectives. We support the objectives, but we are asking for specific amendments to ensure that we have the proper safeguards around the new powers that are proposed.
Going into a little bit of detail, clause 690 of Bill C-86 would enable the minister to issue interim orders in the marine mode for any type of risk to marine safety or the marine environment that he or she views as requiring immediate action. These orders could remain in effect for up to three years without any of the basic safeguards provided in the normal regulatory process, such as consultation with affected stakeholders or regulatory impact statements that we do when we have regulations.
In our opinion, the proposed framework for interim orders in the marine mode is much broader than what we have found in other Canadian legislation. We have more detail in our brief, but just to make a summary of the common features we have seen in other Canadian legislation, usually ministerial interim orders are for a type of risk that meets a threshold, and that threshold is generally “significant risk” or “immediate threat”.
Furthermore, the lifetime duration of an interim order in the legislation we have seen is more tightly constructed. Those ministerial orders can stand alone for 14 days, after which time the Governor in Council must approve such interim orders and then extend the power by either one year, as we see in most of the legislation, or two years, as we see occasionally.
When we looked at the interim order framework being proposed here, we found it to be much broader. That's why what we have proposed is not an objection to the interim order, but rather, specific amendments to ensure that we find the proper safeguards around those interim order powers.
The second element we have outlined in our submission relates to clause 692 of the bill. I believe you have discussed this with the witnesses before. That's the power of the minister to vary Governor in Council recommendations. Again, we find powers to vary a regulation outside of the normal regulatory process. Because of the same concerns I have mentioned, we have also in our bill proposed specific amendments to ensure that we have proper safeguards.
The issue here is not whether or not there is a need to act fast. We understand that those situations happen. We just want to make sure we have proper safeguards around those powers.
On the other elements, we have brought more comments on division 22, but as we are running out of time, I'll ask you to refer to them in our brief.
The one point I would like to make in finishing is the fact that we unfortunately haven't been able to fully review the proposed amendments to the Marine Liability Act, but we will continue our review and we intend to submit comments in front of the Senate.
Thank you for your attention.
Peter Fragiskatos Liberal London North Centre, ON
Thank you very much, and thank you all for being here today.
I want to focus the first part on pay equity. What we see here with Bill C-86 is the advancement of something quite important, something that we've been talking about doing as a country for a number of decades. While there are concerns that we've heard expressed, concerns that the bill isn't perfect, I don't think we live in a perfect world. What I want to put on the table is the fact that Bill C-86 and the pay equity provisions apply to federally regulated workplaces. However, there is a great deal to be said about the potential for this to go beyond, and now we can really begin a substantive conversation about pay equity in the wider society.
As part of that, I would like to get the view of those at the table on the existing reasons for a gap in pay between men and women. On the one hand, we can talk about structural barriers and the differences between men and women as well as false perceptions about what women can offer in the workplace and what men can offer.
Beyond that, though, there are other views. Mr. Cross, I don't mean to set this up as a straw-man argument, and I'll come back to you for your view, but your organization, the Macdonald-Laurier Institute, has said, and I quote here from your website:
The reasons for the pay gap between men and women are not particularly new. Women tend to be clustered in fields that traditionally pay less than the ones that men choose, and in occupations that pay less as well. They are also a lot more likely than men to take “breaks” from work (a really poor word to express what happens when you are home with small children), which does not help their long-term earnings power either.
That's the end of the quote. I wonder if we could delve into that.
Ms. Decter, I'll go to you first, and then Ms. Doucet. Do you agree with that particular view? Should we focus instead on structural barriers as we open up a conversation in the wider society about how to decrease the gap in pay between men and women?
Rear-Admiral Retired) Peter Ellis (Executive Director, Clear Seas Centre for Responsible Marine Shipping
Madam Chair and committee members, thank you for giving me the opportunity to speak to you today.
Clear Seas Centre for Responsible Marine Shipping is an independent not-for-profit organization that sponsors research and produces communications and engagement programs related to sustainable marine shipping in Canada. We were launched in the summer of 2015—so we're about three years old—with seed funding from Transport Canada, Alberta Energy and the Canadian Association of Petroleum Producers.
Our purpose is to provide impartial, reliable and evidence-based information on shipping in Canada on the premise that better information leads to better decisions. Our independence is protected in our funding agreements and all of our program is accessible on our website at www.clearseas.org.
My observations today are based on some of the work we've done through our research and website publications, engagement with stakeholders, participation in many forums and working groups related to marine shipping, and of course observations from media and social media. I offer that the importance of marine shipping to our well-being and prosperity is underappreciated by most Canadians. To gauge Canadians' attitudes toward marine shipping, we conducted a public opinion poll in partnership with the Angus Reid Institute in the spring of 2016. We've just completed another round of polling on Canadians' attitudes to see if there are any trends. The data is currently being analyzed, and we aim to publish the results by the end of November.
A common theme raised in the 2016 poll and that persists today is the concern Canadians have for the potential environmental impacts of shipping. The proposed legislative changes are clearly aimed at enhancing confidence in and effectiveness of what is already a sound system.
Clause 689 of Bill C-86, for example, in providing the explicit authority of the minister to enter into agreements with indigenous groups, stakeholders and other levels of government clearly recognizes the complexity of the marine environment, its many jurisdictional interfaces, the issues of aboriginal rights and title, and the variability of local considerations. These realities are already recognized at the tactical level in such plans as the Canadian Coast Guard's greater Vancouver integrated response plan, for example. I suggest the development of such agreements should be subject to extensive engagement with stakeholders.
The proposed authority of the minister to make interim orders in clause 690 of the bill is an application of the precautionary principle, allowing greater flexibility to respond to short-fuse developments. Notwithstanding the interim nature of the orders, these decisions should be evidence-based and consider the best information available at the time. Enhancing the flexibility to intervene earlier in the cases where pollution may occur, but has not yet occurred, supports more timely action, which is a key element of effective response. Potentially preventing already rare pollution incidents or containing such events more swiftly to limit the spread of a spill are important elements of reducing risks associated with shipping. Likewise, the authority to enter private property and use private property in a response scenario is likely to improve effectiveness.
The provision of immunity for persons providing assistance, bounded by what is reasonable in the circumstances, is supported. It should be noted that this change may alleviate some concerns that have been expressed by American response personnel with regard to their liability in potential transborder operations. The changes to administrative and monetary policies applied judiciously will clearly support the polluter pays principle and enhance public confidence, which has been undermined somewhat by lengthy and inconclusive proceedings such as those following the Marathassa spill.
The changes to the ship-source oil pollution fund are also likely to increase confidence in the system by broadening the scope of what can be compensated. While extending the compensation available to economic loss indirectly related to pollution incidents makes sense and is consistent with the polluter pays principle, it raises significant questions as to the impacts on insurance rates, civil liabilities and other effects. These need to be clarified and clearly understood.
For some this change will not go far enough, as a portion of the population believes that compensation ought to extend to such areas as the loss of use of public land for recreational, cultural or other reasons.
Clear Seas supports the provisions of this bill, but notes that additional engagement with stakeholders is required as this bill moves forward.
I would also note that the focus seems to be on the response phase, with little being added to the preventive pillar.
Thank you again for giving me the opportunity to participate in this meeting.
I'm now ready to answer your questions.
Professor Andrea Doucet Canada Research Chair in Gender, Work and Care, Professor of Sociology, Women's and Gender Studies, Brock University, As an Individual
Thank you.
Mr. Chair and members of the finance committee, I'm Andrea Doucet. I'm a Canada Research Chair in Gender, Work and Care, and I'm a Professor of Sociology in Women's and Gender Studies at Brock University.
My brief comments today on Bill C-86 are focused on one key issue: parental leave benefits, and specifically the introduction of a new EI parental sharing benefit in the amendments to the Employment Insurance Act, which is in division 8 in Bill C-86.
The EI parental sharing benefit, which will be available as of March 2019, is the newest addition to Canada's current package of maternity and parental benefits. It provides an additional five parental leave weeks paid at 55% wage replacement, or eight weeks paid at 33%, to parents who share EI benefits. This includes adoptive parents and same-sex couples.
The initiative was partly modelled on the Province of Quebec's parental insurance plan, QPIP. Specifically, three to five weeks of parental leave are designated for fathers and second parents, and this has led to almost 80% of Québécois fathers now claiming parental leave. Meanwhile, outside of Quebec, only 12% of fathers are using parental leave benefits.
Gender equality at home and at work are clearly stated goals of this new benefits practice. They are laudable goals that connect more broadly to the gender equality goals of the the so-called gender equality budget, but there are two significant problems and two key differences between this policy and the Quebec policy, and they centre on wage replacement rates and issues of eligibility.
In terms of wage replacement, the wage replacement rate of 33% to 55% is too low. The Quebec rate of 70% to 75% is a successful model that is in line with international research, especially from the Nordic countries, which shows that designated leaves for fathers and higher wage replacement rates increase the number of fathers who claim parental leave.
In terms of eligibility, many couples will not qualify for the new parental sharing benefit. It is only available to two-parent families where both parents qualify for benefits. My research, with Dr. Lindsey McKay and Dr. Sophie Mathieu, published in the Journal of Industrial Relations in 2016, leads me to make the following argument.
We believe that more than one-third of all families will likely not receive this benefit. This argument is based on three important claims from our comparative analysis of mothers access to leave benefits in Quebec versus nine other provinces. We used Statistics Canada data. There was no data on people living on reserves or from the territories. It was from Quebec and the nine provinces.
My three points are the following. First, outside of Quebec, 25% of mothers do not qualify for benefits because they do not have the required 600 insurable hours in the 52 weeks prior to giving birth. Women can work their entire lives paying into EI, but if they do not have those hours in the year before birth, they don't qualify.
Second, 36% of all mothers outside of Quebec do not receive parental benefits. This is due to a combination of their ineligibility and the limitations of provincial employment standards and entitlements.
Three, over half of mothers—56%—in low-income families in these nine provinces are excluded from leave benefits. In Quebec, only 15% of low-income mothers are excluded from leave benefits.
I'll conclude with two final points.
A broader GBA+ analysis demands that we look more closely at who is excluded from the new EI parental sharing benefit. Notably, many low-income families will be excluded, and lone parents will be excluded.
Finally, my work with McKay and Mathieu argues that this new extension of parental benefits, without attending to issues of wage replacement, eligibility and access, will lead to a growing divide between what we refer to as “parental leave-rich” and “parental leave-poor”, or “care-rich” and “care-poor” households.
Thank you very much.
Fay Faraday Co-Chair, Equal Pay Coalition
Thank you.
The Equal Pay Coalition represents 44 different associations, businesses, professional women, unionized women, non-union women and community groups across the province of Ontario. We also coordinate a broader pay equity network on the federal level that includes 134 women's groups from coast to coast to coast. We make the representations on behalf of them.
While the pay equity legislation that is in Bill C-86 is an important first step, there are a number of amendments that need to be made to the legislation if it is actually to be effective in protecting women's rights. I want to anchor the amendments in a number of key principles that should guide you in that amendment process.
The first is that pay equity is a fundamental human right. This is not an option. This is not something that is good to have. It is a fundamental international human rights commitment that Canada signed onto in the ILO convention 100 in 1972. In addition, it is a protected right under the Canadian charter.
Eradicating the pay equity gap is, then, a mandatory human rights obligation, and the pay equity legislation must increase the efforts to close the gap. It must strengthen and not weaken or undercut them. Those are key principles.
As well, under section 2(d) of the charter, workers have the constitutional right to union representation in the workplace, so active union participation must be a key part of the legislation. Also, the legislation must be attentive to current problems with the fissuring workplace if it's to be effectively enforced.
I'm going to identify some key amendments that need to be made.
One is the amendment to the purpose clause, which you've heard.
Making fundamental human rights subject to the “diverse needs of employers” fundamentally undercuts the legislation, and it is absolutely unprecedented in Canadian human rights legislation. That must go. That's non-negotiable.
In addition, you need to have a definition of “employer” that encompasses the fissured workplace that exists right now. What that means is capturing all the contracting out and subcontracting that allows employers to distance themselves from rights violations. That is missing in the legislation.
As well, there are a number of provisions you've included in the legislation that have already been found to be unconstitutional.
With some of those in fact the legislation actually gives less protection in some areas than the Canadian Human Rights Act currently does. For example, it has less protection in the compensation for part-time and temporary workers than currently exists.
It also prevents women from having access to the broader human rights protection under section 7 and section 10 of the Canadian Human Rights Act.
Also, the pay equity act does not close all the different gaps in compensation that are discriminatory. Access to those broader protections is absolutely critical.
You've included in this legislation provisions around retroactivity that the—
Ann Decter Director, Community Initiatives, Canadian Women's Foundation
Good morning. I'm Ann Decter from the Canadian Women's Foundation, and I thank you for the invitation to speak to you today on behalf of the foundation with regard to Bill C-86.
The Canadian Women's Foundation is Canada's only public foundation dedicated to women and girls. We fund grassroots women's organizations and women-serving community programs and invest in building the women's sector through knowledge mobilization, networking, collaboration and advocacy.
We were pleased to see key commitments to women's equality in the 2018 federal budget, and we welcome the next steps on those commitments in Bill C-86. I will be speaking to three of them.
Among its myriad provisions, Bill C-86 will establish the department of women and gender equality, transforming Status of Women Canada into a department. We celebrate the retention of “women” in the name of the department, thus ensuring the link is maintained to historic milestones like the Royal Commission on the Status of Women in Canada, which in the early 1970s made recommendations that are still on our wish list.
When we talk about women's equality, we are talking about equality for the majority of the population. Our recent research on the state of women's equality in Canada indicates that violence against women, economic security and gendered reconciliation and decolonization are key priorities to advance gender equality in this country.
Approaches needed to advance equality for women, who make up slightly over half the population and, notwithstanding the grumblings of premiers, have the overriding protection of charter rights, may differ greatly from approaches that would advance the much smaller population identified in the act as “gender-diverse”, who lack charter protections while often facing social persecution on a daily basis.
We encourage the minister for women and gender equality, as she will soon be, to examine the question of what structures are needed both inside and outside of government to ensure the government remains on a dynamic path towards women and gender equity and equality.
Our submission to the 2018 federal budget consultation called for intersectional gender-based budgeting across all federal departments. We recommended that Status of Women Canada establish a gender-budgeting plus resource centre funded and mandated to embed intersectional gender-based analysis across the federal government.
Our reading of the broad strokes of the Canadian gender budgeting act is consistent with this approach. We welcome it and recommend that the new department for women and gender equality be placed on a growth plan and its budget on a path of significant annual increases to ensure its leadership capacity in this area.
We agree wholeheartedly with the preamble to this act that “Canada's long-term economic success depends on an inclusive society in which all individuals have the ability to contribute to their full potential” and note that women became the majority of university graduates in 1990 and have now surpassed men in education across the population. The Canadian economy needs women, and that means all women.
The Canadian Women's Foundation welcomes the introduction of proactive pay equity legislation. We fully support our colleagues from the pay equity coalition, who are experts on this issue, and you will hear from them today.
I have a few quick points.
For unionized women, it's good. The legislation supports them to advocate for their pay equity rights and for their unions to negotiate pay equity plans. The non-union worker, however, is on her own. She may find it difficult to comprehend, and the act lacks any provision for a legal support centre to assist her.
The opening clause includes “the diverse needs of employers” in the purpose language. This could give employers' needs precedence instead of centring on the needs of women in federally regulated workplaces.
This act is silent on pay transparency. Disclosure of pay practices goes to the heart of compliance and needs to be added here or in accompanying legislation.
We look forward to corrections to these issues in the pay equity act and to implementation of this important legislation.
Thank you for the opportunity to speak to you today.
The Chair Liberal Wayne Easter
We'll call the meeting to order.
We're starting our first set of witnesses beyond the department. Pursuant to Standing Order 108(2), we are studying the subject matter of Bill C-86, a second act to implement certain provisions of the budget tabled in Parliament on February 27, 2018, and other measures.
Welcome, witnesses.
We'll start with the Canadian Association for Retired Persons, Ms. Morris.
The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)) Liberal Judy Sgro
I call to order this meeting of the Standing Committee on Transport, Infrastructure and Communities, 42nd Parliament.
Pursuant to Standing Order 108(2), we are doing a study of the subject matter of clauses 688 to 747, also referred to as divisions 22 and 23, of Bill C-86.
As witnesses, in the first part of our meeting, we have, from the Department of Transport, Natasha Rascanin, Assistant Deputy Minister, Transformation; and Marc-Yves Bertin, Director General, Marine Policy.
From the Department of Fisheries and Oceans, we have Julie Gascon, Director General, Operations, Canadian Coast Guard; and Marc Sanderson, Acting Director General, National Strategies, Canadian Coast Guard.
Welcome to all of you.
I would ask that you keep your comments to five minutes or under in order to give the committee sufficient time for their questions.
Whoever would like to start can go ahead.
November 5th, 2018 / 4:15 p.m.
Partner, Fasken Martineau DuMoulin LLP, Business Coalition for Balanced Copyright
That was an issue where there was almost unanimity amongst users of the Copyright Board. In every decision, you're going to have someone who's happier than someone else, but everyone agreed that decisions had to get out more quickly.
We were dealing with situations where the board was setting prices to be paid for music five years ago. No one knew what the price to be paid today was. If the government follows through on the regulatory authority that it's proposing under Bill C-86, that problem, at least, will be substantially resolved.
November 5th, 2018 / 4:15 p.m.
Partner, Fasken Martineau DuMoulin LLP, Business Coalition for Balanced Copyright
I'll start. I do spend quite a bit of time appearing before the Copyright Board.
Speed and retroactivity of decisions were a large concern for a number of users of the Copyright Board, on both the collective side and the licensee side. The measures put in place, or proposed in Bill C-86, the budget implementation act, go a long way. They certainly give the government the tools to set deadlines for the Copyright Board to issue decisions. They make it clear that tariffs have to be proposed further in advance and for a greater number of years. If all these measures are acted upon and regulations are put in place, we could actually dramatically reduce the problems we've seen in the past with the timeliness of decisions and long retroactivity.
Eleanor Ryan Director General, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
Thank you, Mr. Chair.
My name is Eleanor Ryan. I'm here with my colleagues from the Department of Finance and with Brigitte Goulard, Deputy Commissioner of the Financial Consumer Agency of Canada. We're honoured to have the opportunity to present this legislation to you.
Division 10 of Part 4 of Bill C-86, entitled “Financial Consumer Protection Framework”, follows upon the government's commitment made in Budget 2018 to continue to advance consumers' rights and interests when they deal with their bank, and to strengthen the tools at the disposal of the Financial Consumer Agency of Canada.
Division 10 represents a consolidation of the existing legislation and regulatory provisions applying to the relationship between banks and their customers, and new measures intended to address the issues identified in two reports published by the Financial Consumer Agency of Canada in the spring of 2018.
The first report was a comprehensive review of bank sale practices. This report identified a number of risks relating to how bank products are sold to customers. The second report examined best practices for supervision of financial consumer protection.
David Fewer Director, Canadian Internet Policy and Public Interest Clinic
Thank you, Mr. Chair.
Good afternoon, members of the committee. My name is David Fewer. I'm the director of CIPPIC, which is the Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic at the centre for law, technology and society at the University of Ottawa.
We are Canada's first and only public interest technology law clinic. We're based in the university. We essentially bring lawyers with expertise in technology law issues together with students to advocate on behalf of the public interest on technology law issues.
Our work resides at the heart of Canada's innovation policy agenda. We work on everything from privacy to data governance and artificial intelligence, network neutrality, state surveillance, smart cities policies and, of course, copyright policy. Our work essentially is to ensure respect for Canadians' rights on technology policy, as governments and courts respond to Canadians' use of ever-changing, new technologies.
I want to start with two background comments with respect to approaching copyright policy. Number one is the concept of balance. It's been long settled now in Canadian copyright policy that balance is essential to the overall scheme and objective of the act. That means Canadian copyright policy must be directed towards achieving a balance between providing a just reward for creators and owners of copyright works and the public interest in the dissemination of works more broadly. This guiding principle is basically the touchstone of copyright policy and should be central to any review of the Copyright Act.
That brings me to my second background point, which is the USMCA. The recent conclusion of the renegotiated NAFTA agreement upsets the balance in Canadian copyright law policy. This is not the place to go through an extensive review of the changes to copyright law that will be required by the legislation, but three that jump out to me were a copyright term extension, the enhanced digital lock provisions which were further unsettling a troubling area of Canadian copyright policy, and the new customs enforcement rights, revamping an area of law that we had just within the last two years upgraded.
These are just some of the benefits to copyright owners that are promised in this trade agreement. We would ask the committee to engage in these hearings with a view to resolving or restoring the balance that's at the heart of Canadian copyright policy.
Substantively, I want to talk about three specific points. One is digital locks. To the extent that this can be done by Canadian copyright policy, we should be looking to roll back the overprotection of the digital lock provisions. There's an incredible imbalance between the rights that copyright owners enjoy with respect to digital locks versus the rights they enjoy with respect to the content itself. The content itself respects a healthy balance. It has a nod towards future creativity and innovation policies. The digital lock provisions do not.
Many provisions of the Canadian Copyright Act intended to benefit future creators and innovators are locked out where a digital lock is used, and it's difficult to justify that on any kind of reasoned analysis of Canadian copyright policy.
We would ask that the USMCA provisions be studied with a view to determining how best to maintain fair and flexible dealings with content in the face of digital locks. Essentially we say that draconian digital lock provisions deter and undermine Canadian innovation policy, and they undermine digital security. This is not just a user issue. It's an innovation issue. Creators such as documentary filmmakers and new forms of artists—appropriation artists, for example—encounter difficulties in the face of digital locks. That content is beyond their reach.
We would also ask that we look to the extent to which we can restrict criminal circumvention to commercial activity because of the tremendous disincentive of criminal prosecution for innovation and artistic work in the face of digital locks.
Second, I want to turn to fair dealing. CIPPIC has long asked that Canada look to make the list of fair-dealing purposes illustrative, rather than exhaustive. If the dealing is fair, it ought to be legal. That's the bottom line. Failing that, CIPPIC would support extending fair dealing to transformative dealings, to recognize different kinds of authors, such as appropriation artists and documentary filmmakers. Transformative dealings aren't covered well, within the existing fair dealing paradigm.
We would also echo the repeated calls that this committee has heard to extend fair dealing to what I'll call AI activities. We would look for a specific exception for informational analysis.
Finally, related to fair dealing, CIPPIC would call for no contractual overrides of fair dealing. We've talked about privacy already. Our privacy rights have a very difficult time with terms of use, which have privacy policies that no consumer or user ever sees, thereby stripping our privacy rights away. Copyright, which is an innovation policy, should not suffer from the same burden.
Other jurisdictions have done this, particularly within the context of the data mining exception, in jurisdictions such as Britain. Canada should be looking to this too.
Finally, I have a brief comment on the notice and notice system. CIPPIC supports the changes to the system that were recently tabled in Bill C-86 to curb abuses of that system, but we would actually echo Mr. Kerr-Wilson's comments about the need for adverse consequences for reckless or deliberate misuse of that system.
Thank you.