Bill S-2 (Historical)

Strengthening Motor Vehicle Safety for Canadians Act

An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act

This enactment amends the Motor Vehicle Safety Act for the purpose of strengthening the enforcement and compliance regime to further protect the safety of Canadians and to provide additional flexibility to support advanced safety technologies and other vehicle innovations. It provides the Minister of Transport with the authority to order companies to correct a defect or non-compliance and establishes a tiered penalty structure for offences committed under the Act. The enactment also makes a consequential amendment to the Transportation Appeal Tribunal of Canada Act.

The House resumed consideration of the motion that Bill S-2, An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act, be read the second time and referred to a committee.

Strengthening Motor Vehicle Safety for Canadians Act

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, I will be sharing my time today with the hon. member for Medicine Hat—Cardston—Warner.

Before I begin, I would like to mention that it has been almost two years since the passing of my friend's predecessor Jim Hillyer. This summer I had the absolute pleasure of having Jim's son, London Hillyer, as our intern. I want to let Jim know upstairs that his son London did a fantastic job and he would be very proud of him.

I am pleased to rise today to talk to Bill S-2, an act to amend the Motor Vehicle Safety Act. Like many people in the House today we generally support the intent of the bill.

Presently, the Motor Vehicle Safety Act limits the power of the Minister of Transport to issuing notices of safety defects and criminally prosecuting manufacturers.

Transport Canada does not presently have the authority to order recalls, but rather to list active recalls on its website and issue press releases if it believes there is an issue with a type or model of a vehicle.

Bill S-2 would amend the act to provide the minister with the authority to order a vehicle recall and order the vehicle's manufacturer to correct the defect at no cost to the consumer. So far, so good.

An hon. Conservative senator from Newfoundland amended the legislation to ensure that vehicle manufacturers would be responsible for costs to protect car dealers from shouldering the costs of a vehicle recall. We have many car dealerships in Edmonton West. I have spoken to several of these dealers and they are 100% behind the amendment, of course, because it would save them money. I generally agree with parts of the amendment, but not where the amendment starts to set out compensation guidelines. That is best left to the market to decide.

I support legislation that will protect consumers from unnecessary and unfair financial burdens of defective products. It should not fall to a consumer, nor really the car dealer, to assume the cost of manufacturer defects, particularly with something like vehicles, which have potentially fatal consequences if something goes wrong. I also support legislation that is designed to keep consumers informed of any real or potential dangers with the equipment they choose to purchase.

The Auditor General report on Transport Canada, entitled “Oversight of Passenger Vehicle Safety”, lists two positive items on Bill S-2. One is a proposed new regulatory power to establish an information reporting requirement that would identify safety defects sooner. The Auditor General report also notes a positive part of Bill S-2 that would require companies operating in Canada to be more aware of foreign defects and issues of non-compliance for vehicles that would be similar to those sold in Canada.

That said, I have a few concerns with Bill S-2 as it is outlined and I will elaborate on them now.

The government's justification for the legislation is, to be charitable, a bit underwhelming. Per the words of the government's representative in the other place, it is because vehicles are complex and sophisticated, and much of the technology is proprietary.” No kidding.

Bill S-2 would give the minister new powers on ordering companies to conduct tests, analyses, or studies on vehicles or equipment at the minister's discretion; just at the minister's discretion, with no parameters, no guidelines.

I want to stop and take a look at what is going on with Boeing and Bombardier. The government is putting jobs at risk, investment at risk and has politicized the replacement of needed equipment for our men and women in uniform to protect its friends in Bombardier, and we want to give unfettered and undefined power to the minister? What is next? Are we going to interfere with the General Motors Cami strike going on right now because of concerns of moving the plant to Mexico or the US? Or using these powers to punish Toyota for not putting a plant in a friendly riding? It sounds inconceivable, but we have to stop and look at this through the lens of the Bombardier and Boeing mess, where the government has stepped in and interfered. We have to look at how the Liberal cabinet interfered with the purchase of the Navy's replenishment ship apparently at the orders of a rival firm.

It is important to ensure that motor vehicle inspectors at Transport Canada have the information they need to ensure companies are complying with the Motor Vehicle Safety Act. It is also important that we are not unnecessarily and excessively increasing the discretionary power of the minister at the expense of companies invested in Canada.

In 2015, as has been noted before, five million passenger vehicles were recalled in Canada. Dozens of vehicle types are recalled each year for which Transport Canada has not received any complaints. This means that vehicle companies that already have the incentive to ensure their vehicles are operating safely on our roads to the benefit of consumers are largely fulfilling their role in ensuring vehicle safety. I am therefore left wondering if we are increasing the discretionary power of the minister and the Department of Transport to fix a problem that does not really exist.

The government's argument is that the powers are anticipatory. Unfortunately, it is logically inconsistent to arbitrarily increase the power of a member of the executive unless there is a clear need to do so.

The new ministerial powers would also potentially be self-justifying their actions. The minister would be able to order a company to conduct tests on a product and provide evidence to the minister, which the government could then turn around and use to justify a recall against the same product.

The legislation would also give vehicle inspectors from Transport Canada new powers to enter any private property, other than a home dwelling, examine any documents, disassemble and remove any components, use any computers that would be on the location and copy data, as well as interrogate workers present to ensure compliance with the act. This power is quite exceptional and directly contradicts the very basic privacy protections afforded to individuals and businesses in Canada. Everyone must provide clear and objective standards under which the minister would invest inspectors with such extraordinary powers to prevent said abuses of power.

A reading from the Auditor General's report, and there are a couple of items here, states:

Overall, we found that Transport Canada did not develop motor vehicle safety standards to respond to emerging risks and issues in a timely manner. [We had to] waited for the United States to change its motor vehicle safety standards before modifying Canadian standards....We could not always determine how the Department used evidence and research to develop or amend safety standards. Transport Canada did not plan or fund its research and regulatory activities for the longer term.

Nothing in this act would do anything to address these real concerns addressed in the Auditor General's report.

Earlier, the minister stated that Bill S-2 was well-intentioned. We do need something a bit more than well-intentioned.

The Auditor General provided rather uncomplimentary assessment overall on the state of operations at the Transport Canada motor vehicle safety directorate. His office was especially tough on the processes Transport Canada used to create and enforce new regulations, noting that, “We could not always determine how the Department used evidence and research to develop or amend safety standards.” The AG cannot determine how Transport Canada comes up with safety standards, but the government wants to give Transport Canada full power to order recalls and demand that companies conduct research on safety standards.

It is not clear how Transport Canada would obtain, utilize, and keep the vast new data it would be able to collect, and it is sure unclear whether it would be able to justify the decision to obtain the data in the first place.

The Auditor General criticized Transport Canada's national database for not including complete Canadian data and for not attaining relevant information on industry statistics.

It is troubling that a department criticized for its existing process should be granted new powers without clear mechanisms for oversight to protect the integrity of the process. Perhaps the minister should focus his energies on addressing the Auditor General's report first before moving on with Bill S-2.

I look forward to the minister addressing the processes at Transport Canada and to rectifying the issues noted by the Auditor General. I encourage the government to provide adequate justification to make the case to increase discretionary power.

It is unclear how the government plans on addressing differences in opinion between vehicle manufacturers and Transport Canada. While not opposed, auto and parts manufacturers are concerned about the outcome of a potential difference in opinion about the nature and gravity of a defect between them and Transport Canada.

It is incumbent upon the government, as I mentioned, to ensure that it is creating a system that is open and clear and can be objectively applied in each case, perhaps some system where it could make evidenced-based decisions of some kind.

I am concerned about the lack of detail surrounding the arbitrary increase in the powers accorded to the minister. I am further concerned about the lack of oversight of Transport Canada, which has been criticized by the Auditor General specifically for being opaque regarding its internal processes and decision-making frameworks. I hope we can get the legislation to committee for further study. I trust the committee will take a long, hard look at our concerns as well as the concerns of the Auditor General.

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Mr. Speaker, as has been noted many times in the House this morning in discussion of this bill, it is really about safety and protection of consumers. I am curious because the member now is questioning the use of the minister's power. Let us take one of the powers the minister would have in the legislation. That power would be that if a defect were found, the minister would have the power to ensure that before the vehicle was sold that defect would be corrected.

As a consumer, before I buy a vehicle, I want to ensure it is working and it is in good order. I just shared my own personal experience with being in a very significant car accident. I want to know if the member has a problem with this specific power of the minister, whose concern we know is safety and protection of consumers. Does the member have a problem with the fact that the minister would have the power to ensure that unsafe vehicles would not be sold?

[Kelly McCauley, Conservative, Edmonton West, AB]

Obviously not, Mr. Speaker. The issue I laid out very clearly in my speech, and perhaps she was not listening, is not that the minister has the power to recall, but the undefined power of the minister and Transport Canada to raid offices at will looking for information. The issue is that the power is undefined. If the government wants to specify very clearly the conditions under which it has the power to recall, that is perfectly fine. We just ask that it be defined better.

[Robert Aubin, NDP, Trois-Rivières, QC]

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

I agree with a number of aspects of his presentation, but there is one that truly stands out for me.

In his opinion, is this about optics or can this bill truly make a difference? We cannot seem to get any assurances that the budget cuts at Transport Canada are a thing of the past nor is anyone willing to say that major reinvestment is needed for implementing the merits of Bill S-2.

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, my colleague from the NDP makes some very good points. While Bill S-2, as the minister mentioned, is well intentioned, we need a lot more than just good intentions. The Auditor General's report is rife with examples of where Transport Canada has ignored safety or recall issues in the States that it has known about for years. It has laid off people in the investigation division. The problem is that Bill S-2 does not go far enough in addressing important safety issues. We hear members on the government side talk about safety, safety, safety, and while we do intend to support its going to committee, it does not go far enough to look after the true safety of Canadians. I suggest that the government take a really hard look at the Auditor General's report and listen to what I and my other NDP colleagues have to say about it.

[Anne Minh-Thu Quach, NDP, Salaberry—Suroît, QC]

Mr. Speaker, I have but one question.

The Liberals say that they want to use Bill S-2 to improve motor vehicle safety and that the Minister of Transport will be able to designate new enforcement officers. Does my Conservative colleague think that a 59% cut in funding to Transport Canada's oversight program will help advance motor vehicle safety and protection or should the Liberals be seriously reinvesting in Transport Canada's oversight capacity?

[Kelly McCauley, Conservative, Edmonton West, AB]

Again, Mr. Speaker, the member has a very good point. We have said that we want real safety issues addressed and not just fluff. The Auditor General's report is very clear about the people who were laid off in the area of safety investigations. We hope that the Liberal government, as well as the members of the committee, will take to heart the common-sense, straightforward suggestions by the Auditor General and bring about changes for much better safety conditions for Canadians and drivers.

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, I am pleased to rise today to speak to the Senate bill, Bill S-2, an act to amend the Motor Vehicle Safety Act to empower the government to force recalls of vehicles with safety problems. As we know, the role of the government is first and foremost to protect its people. We cannot protect everyone from everything, and as they say, “He who defends everything defends nothing.” However, we certainly should be protecting Canadians from predictable safety issues. All members of this chamber, and most in the other chamber as well, can agree on these principles. Protecting Canadians is the role of all parties and all parliamentarians.

That is why this proposed act has been introduced twice, in two different chambers by members of two parties. Bill S-2 closely resembles the bill tabled at the end of 2015 by the hon. member for Milton. Then, as the Minister of Transportation, she tabled Bill C-62 to provide recall powers to the minister and the Department of Transport, to impose fines where appropriate, and to ensure that Canadians have safer vehicles. Bill S-2 diligently reproduces that leading legislation, and we appreciate the work of the senator who did so, and the work of the members of the Senate transportation committee and all the witnesses who appeared before them to bring this legislation forward.

This bill would provide new powers that are not really that new. In fact, if we were to read stories about vehicle recalls in the press, it almost sounds as if the government has recall powers already. Surprisingly though, Canada's federal government lacks the power to order manufacturers to recall any vehicle with a defect. According to testimony before the Senate, Canada has the power to order recalls and changes to other vehicles like airplanes and ships, but not to any cars or trucks. What this bill would do is create those new recall powers, as well as penalties of up to $200,000 per day. It would make it the prerogative of the manufacturer, not the dealer, to make repairs.

From the testimony, we know that some of the issues arising when there is a recall will continue. These cannot be fixed by legislation. As any of us who have gone through a recall know, a recall may be ordered but the parts might not always be instantaneously available. I read an interesting article last week, the story of John Fawcett from Iqaluit and his recalled Jeep with a known defect that abruptly shifted the transmission into neutral while the vehicle was under way. As a new father, this created a major problem for him. His vehicle was unsafe for his family. After some research, Mr. Fawcett discovered that his Jeep was under manufacturer's recall for four different issues that were listed on Transport Canada's website. The issue of the abrupt shifting of gears was also listed on the website and described thus:

...an unexpected shift to neutral which could result in a loss of motive power, which in conjunction with traffic and road conditions, and the driver's reactions may increase the risk of a crash.”

Mr. Fawcett accepted that his car needed a bit of work and that Chrysler was responsible for doing it.

This bill would ensure that consumers like John are protected from the potentially catastrophic accidents that can result from manufacturers' defects, and would authorize the Minister of Transport to order a company to correct a defect or non-compliance in a vehicle or equipment if it is considered to be in the interest of public safety. In addition, there would be the power to order companies to pay the costs of correcting a defect or non-compliance in a vehicle or equipment.

These combined order powers are important for potential situations in which consumers would be expected to pay for the correction of a defect or non-compliance of a vehicle or equipment. Such a situation would place an unreasonable financial burden on Canadians and potentially place other Canadians at risk should their fellow citizens be unable to undertake the necessary repairs.

I will have to agree with my colleague from the Senate chamber and former City of Ottawa police chief, who summarized this bill as “legislation [that] will strengthen oversight of the recall process. It will be a big win for consumers and overall for the safety of Canadians.”

The purpose of Bill S-2 is to increase consumer protection and motor vehicle safety in Canada. This is why the previous government brought this bill forward in 2015, why it is before us today, and why I will support this bill.

I found it useful to look at some of the parts of the testimony provided by consumer protection groups, vehicle dealers, and manufacturers. The first thing I noticed was the interesting insert of the dealers' and manufacturers' arrangement. The dealer networks noted that some, not all, manufacturers were providing poor business support to their dealers. Dealers were left holding costs for vehicles under safety recalls that were not yet sold to a customer. It was left to the headquarters of the car manufacturers in other countries to determine if they would provide help or not. This seems like a poor arrangement and a bad relationship between two businesses.

I am not always confident that government can help fix a poor business relationship, and time will tell if this new arrangement to manage recalls between manufacturers and dealers is a good deal for the end-user. When the bill was tabled by the previous government, it was all about the protection of consumers. There were no clauses about fixing a lopsided business relationship.

The bill was about protecting people who use and operate vehicles daily. Specifically, the bill ensured that vehicle recall notices would be sent as soon as possible so that people would be aware of the potential risks; that manufacturers would be required to act on the recall quickly and at the convenience of the customer, not at the convenience of the product cycles; and that manufacturers would cover the costs associated with recalls. That puts families first and works at the heart of protecting our regulatory regime.

The president of the Canadian Vehicle Manufacturers Associated said:

In particular, we support Bill S-2 amendments that provide a clear, more rigorous and transparent process for exercising a number of Ministerial Powers to Order, recognition of the rapid pace of technological change through enhanced ability to provide exemptions to standards where new technologies [exist]....

We know for the most part the manufacturers agree in principle with many of these measures. Why would they agree? For American companies, this aligns for the most part with U.S. regulations and makes it easier for them to understand and comply. The bill would empower the Minister of Transport to impose fines on manufacturers who delay or postpone recalls or who do not comply with recall orders.

Ian Jack of the Canadian Automobile Association said:

The Canadian system is a veritable, if not literal, paper tiger. Bill S-2 will give the minister the authority to order a company to issue that recall to make companies repair a recalled vehicle at no cost to consumer and to prevent new vehicles from being sold in Canada until they are repaired. This matches similar legislation that exists in the U.S., finally levelling the playing field for Canadian consumers.

Bill S-2 brings Canadian consumers up to the level of other consumers around the world, at least on measures related to recall notices, and this measure aligns with the harmonization of regulatory issues across the U.S. and Canada. The legislation will bring forward the protection of consumers, ensure that Canadian dealer networks are treated fairly, and ensure that our roads and streets have safer vehicles on them.

I am always happy to see some bipartisan co-operation on issues that ensure that Canada is protecting its citizens, and I am always happy to provide support when the Liberals follow the leadership of the previous Conservative government.

I would like to thank the senator for bringing this legislation forward. Like many parliamentary processes, it ran longer than a single mandate or government. I look forward to working with him and all my colleagues in the House to advance this legislation.

[Robert Aubin, NDP, Trois-Rivières, QC]

Mr. Speaker, I listened carefully to what my hon. colleague was saying. I too am looking forward to the bill being sent to committee so we can examine it in minute detail.

If the intentions of the bill seem acceptable, and some even seem quite laudable, what would, in my colleague's opinion, be the main omission in Bill S-2 that we should examine when we study it?

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, there was a phrase in the member's question that the interpreter did not allow me to hear very clearly. There is something between “in this legislation and prevention” and I missed what that was. If I could just get the member to ask that one more time, please.

[The Deputy Speaker, Conservative, Bruce Stanton]

I invite the hon. member for Trois-Rivières to repeat his question.

[Robert Aubin, NDP, Trois-Rivières, QC]

With pleasure, Mr. Speaker.

In my colleague's opinion, what is the main thing that Bill S-2 gets wrong or fails to cover?

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Mr. Speaker, there are probably a number of things in the legislation that carry forward, one being whether the government is now trying to get into a business relationship fix between manufacturers and dealers as something it has to deal with. That could be an issue that could detract from the intent of the bill, which is to protect Canadians. I see that as probably the largest gap that exists at the moment.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, based on the last answer, there is a question that comes to mind with regard to the Senate amendment. One of the positions we have taken in not being able to support the Senate amendment is we do not see our role as dealing with commercial relations. That amendment is actually encouraging Transport Canada to get engaged in commercial relations.

I wonder if the member would agree we should be concerned about that aspect of the Senate amendment. By the sound of it, he does, but I would like him to confirm that he shares that concern.