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.

Strengthening Motor Vehicle Safety for Canadians Act

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, quite frankly, I am frustrated with the government's legislation. The reason it went through the Senate, I suppose, is that it is Conservative legislation. They did not want to overtly wear it, but want to be seen as having done something. They got somebody in the Senate to move it and it went through there as the primary source. That is why it is Bill S-2. A new sticker has been slapped on it.

There were two amendments by the Conservatives and several by the NDP, but of the 15 amendments, the most glaring one was from the member for Trois-Rivières. He did this in a very constructive manner. Everybody on the Hill knows that he is a very constructive individual, not only in the NDP caucus, but on the Hill in general. One amendment was for an annual report to Parliament from the minister, so at least we would know a little more about the deals the minister is making behind closed doors. It is not even a compelling story for all of the things that we should know about, but at least we would know.

The interesting thing about this, which is my frustration, quite frankly, is that it has taken so long for us to even get out a recall. This bill would give us auto recall after all of these years, but once it has passed through both chambers, when will we see another amendment? It will probably not be until after all the renovations to this place are finished, after we come back to this chamber from West Block, and it is finally reopened to the public, and 20 years after that. That is when we are most likely going to see another change.

Meanwhile, not only is the auto age right now curious, in terms of its research, development, and change, but it is a revolution. It is significant. It is like the platinum age of auto development right now. It is not only the very unusual types of materials being used but it is also the technology. All of those things are in this global industry, which will be pumping in different brands, different vehicles, and different changes to our city streets and the way we move around in society.

One thing in the bill is that if a recall that has caused death, injury, collision, or damage, the minister, under a clause for new technologies, can give a waiver and carte blanche. That is astounding in this new age. We will have experimentation on our streets, experimentation with tonnes of steel and glass. It does not sound reasonable.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, it is a pleasure to speak to the bill. I commend my colleague, the member for Trois-Rivières, who has not only done an excellent job on the bill, but has also been very constructive in his approach to it.

Bill S-2 is an act to amend the Motor Vehicle Safety Act and make consequential amendments to another act. However, most important is that it is about providing auto recall for Canadians.

The problem we are faced with is the fact that the bill is so underwhelmingly negligent in fixing the problem. It is nothing short of breathtaking, given the tragedies that have taken place and the historic recalls in auto manufacturing. Right now, the Takata airbag scandal has affected many motor vehicles, and Canada has had to beg for inclusion. We have no rights whatsoever with regard to consumer safety protection and the bill is such a weak response to this. I am rather shocked about that.

The member for Trois-Rivières proposed 15 amendments at committee and none of those amendments were accepted by the Liberals, which is shocking. The previous Conservative government tabled a bill for auto manufacturing recall prior to the last election. I believe it was Bill C-62. The Conservatives only had two amendments to this legislation. Therefore, this is a tweaking of Conservative legislation. It is not surprising that there were only a couple of amendments from the Conservatives.

However, during the election campaign, consumers told me that they wanted more consumer safety and environmental protections. This bill is a slap in the face. It also becomes a wider problem, given Volkswagen has an offence against it for auto manipulation and recall. This is not only being criminally investigated in the United States but in other places in the world. There is also the Takata airbag scandal. These are prime examples of current standards, which Canada does not get and will not get with this legislation. This is ironic. The legislation will marginally improve the situation of auto recall.

The first and foremost thing to recognize is that this is a significant consumer and environmental protection issue and all of us should be concerned about this and Canada's competitiveness.

This is even more important because of our diminished capacity under the new auto revolution taking place for manufacturing. We are becoming more dependent than ever on foreigners to produce vehicles necessary for a modern economy and for transportation use. This affects the air we breathe, our safety, and the way we are able to compete in the world. Because of successive Conservative and Liberal governments and their inaction on the auto file and trade practices, Canada has gone from number two in the world for auto assembly to 10. That means we are increasingly dependent upon foreign vehicles coming into our country. That should point us in a direction of having more accountability because the corporate board rooms in Beijing, New York, in Washington, and other places in Europe are almost exclusively making decisions that affect us and our families when it comes to safety, consumer selection, and environmental degradation related to the use of automobiles and other manufactured vehicles.

It is astounding that we would not want to be at the forefront of that. One only needs to look at the issues related to software and the manipulation of it, the difficulty of defining what the problems are, and the consequences of that. This should be motivation enough for us to be more proactive on this issue.

As noted by the member for Trois-Rivières, the legislation would give the power to the minister to recall, but it allows the backroom corridors and the dark halls to make the decisions, which will never even come to Parliament. It becomes an exclusive decision by the Minister of Transport and he can do side deals in private about which we will never know. That is something to think about.

I was very active on public safety issues with respect to the Toyota Prius and Volkswagen files in particular.

Regarding the Prius, it was the denial by Toyota. It said that software was causing a braking problem with its vehicles. This was causing accidents, costing people their lives, and a series of different things. It received such heightened activity in the United States. Its safety was considerably more advanced than in Canada. Sadly, this bill will not really improve that situation in Canada. In fact, it is so modest that we will not even see the same reciprocity that U.S. consumers and public safety advocates received in regard to this.

The CEOs of Toyota went to Washington, and in front of Congress and the Senate, they apologized. They never did the same in Canada. They knowingly and wilfully misled the people, those who bought their products and drove them on our city streets, going to soccer games, to schools, and to work. The United States took it far more seriously. What did it get out of it? It has more research and development as a result of the decision with Toyota. Its consumers received better treatment than those in Canada. There also was a higher degree of accountability and conviction than there was here. This will be a problem of accountability for Canada as the current law stands.

If we look at the Takata airbag issue, we cannot recall them as things currently stand. If we do under this bill, the minister can cut a backroom deal with the company and there will be no consequences. We will not know. It will never be published. It will never be tabled, as the member for Trois-Rivières wanted to do, once annually in the Parliament of Canada.

Why would the Liberals oppose that? Why would they oppose the mere fact that taxpayers expect the Minister of Transport to protect them and their families, their safety, and ensure there is accountability for the products they buy, especially given the amount money these products cost. Why would they not want to table annual reports in Parliament, at least identify the problems, show how the minister dealt with them, and show how he or she worked on behalf of Canadians, for safety, consumer protection, and accountability of the many foreign companies?

I will add this caveat to it. My father, who recently passed away, was a CEO at Chrysler for many years. We witnessed first-hand the erosion of the Canadian corporate boardroom as more and more decision-makers were moved from Canada to the United States. We used to have a Canadian president of Chrysler. One of the biggest champions was Yves Landry. We had successive ones after him. Eventually, we became a surrogate training ground for American CEO company presidents. A successive wave of them came here.

Things have changed in the auto industry for a series of different reasons. However, we now have a slanting of foreign decisions that will take place, which can influence and affect Canadian consumers. If members are interested, they can look at Volkswagen. There was a corporate, accountable, organized crime attempt to mislead not only the public but also transportation agencies in their investigations of its vehicles, which had emission devices that were designed to create different results so it could claim “clean diesel”. There are many documentaries and court cases with respect to this.

However, an entire manipulative corporate-run culture, which is not short of organized crime, misled consumers, government departments and agencies about the products it was putting on the streets, which were affecting our air quality. That is a reality. It is happening right now, and continues to happen.

The scenario being presented to Parliament right now is that the Minister of Transport could do a one-off agreement with companies, if he or she wanted to, and we would never know why. We would never know the decisions. We would never know how far it went back. That is unacceptable. The Minister of Transport should be the person to shield Canadians from the organized attempts of an industry that has a history of some of these practices. There are many out there that do not have that culture or prescribe to those things. However, when we go through recall lists of companies that have been involved in the auto industry over the generations, this is an unfortunate part of what has taken place.

When we have five tonnes of steel and glass that needs to be safe all the time, we need to ensure there is accountability for people. For heaven's sake, we would at least think from a consumer protection and disposable income perspective, there would be a genuine interest to ensure vehicles are safe, people will get what they have paid for, and it will define the terms and conditions agreed upon. This is being paid for over several years. It is not a decision that is made in the moment where people just pay for it, then have buyers' remorse later on. These are income purchases for a vehicles, which people put their babies in, take their loved ones to work, or to play, or use for business. It is one of the most expensive things a person will ever purchase where instantaneously its market value will erode significantly. People say they are investing in cars, but they are not. It is a cost, but they will never get their value out of it, unless they are luxury vehicles they hold on to for generations to come. As soon as they drive that vehicles off the lot, the value goes down.

My point is that there is an onus on the government to ensure the sustainability of that investment in that product. I am proud of the New Democratic caucus, which has supported me for numerous years to get the right to repair passed. I have fought for this. This shows one of the reasons we need more transparency. The right to repair was finally passed as a voluntary agreement, and it was supported in the House of Commons. It is like getting a field goal instead of a touchdown when we get a voluntary agreement. At least it has some elements to it, and that is what the industry wanted.

However, what happened was that automotive companies were treating Canada differently, especially compared to the United States, when it came to vehicle repairs. Not only did it affect the safety of the vehicle, but also its environmental emissions and our choice as a consumer. In Windsor, I could get my vehicle fixed in Detroit, Michigan by driving two kilometres and crossing over, but I could not get it fixed in Windsor even though it was an electronic program that literally cost cents to transmit to the business in Windsor. It was prevented from coming into Canada. This is because in the United States its environmental protection act requires companies to provide on a program, or piece of equipment, or tool or training that to the after market.

For example, Canadian Tire, small garages, medium-sized mom-and-pop shops, all of those different places were denied even the access to purchase the proper training, equipment, and software. It is becoming an issue again. They have blocked that out.

What does that mean? It means that vehicles in Canada were on the road longer, without their safety being approved or improved, in terms of maintenance. Their emissions were higher, and their performance was lower. The complications for fixing those things were heightened. Consumers had to pay more to take it to a dealership.

It is not like there is not an organized element related to dealing with an industry which at times has been stubborn. Many of those organizations and companies finally came to the table. I congratulate them. We had General Motors at that time. We had Ford, and eventually, Chrysler. However, it took a long time. It took two years out of my life just to get that moving in Canada.

Now we have some more problems. That is a story for another time, but it is very much germane to this. I believe when people make a purchase of this magnitude and it has such an influence on them as individuals and for their families, and for the safety of Canadians, the best thing the Minister of Transport could do is be transparent for all of Canada.

We look at some of the specifics of this bill and we have to wonder why. What has the minister done? He has limited some of the amendments that we had on recall and cost. In the bill the maximum and minimum for fines and penalties are very much non-existent in many respects. They are in the hundreds of thousands of dollars. It is unbelievable, given the cost of it, and having to repair it, and given the consequences of having improperly fixed vehicles, and the process and inconvenience of actually getting that done, that we actually fine at such a low amount.

Monetary penalties are capped at $4,000 for a person and $200,000 for a company. That is unbelievable. I would like to say it is like a slap on the hand, but it would not even be noticed. It would not be felt. We are talking about multi-billion dollar companies.

Again, there is a message being sent there. The message is that Canada is not serious about this. That is what we are telling them. The biggest issue related to that is the basic fact that an amendment was put forward on that by the member for Trois-Rivières. It was not only in line with the expectations of what consumers would want, but it was in line with what U.S. consumers get with regard to fines and penalties.

We talk about reciprocity in trade, elements related to that, and consumer goods going back and forth between Canada and the United States. I live near the border, and I can say that if we are going to be involved in a market system like this, the very least we should expect is what our neighbour gets. We always have to step up to American standards on many different products and services in the auto sector. It is excellent that we do so, because we have an integrated industry. The vehicles go back and forth across the border. However, at the very least we should expect that consumers would receive the same reciprocity. The sticker price is pretty well the same, if we are not paying a little more. However, we should be able to expect the same elements, the same bumper, the same terms and conditions for insurance, the same support for customers. That would be the reasonable approach if we are actually paying for it.

The minister has done none of that with regard to this bill. The minister has even put in the bill a limitation of two years for what he can do. He has unnecessarily handcuffed himself. We saw that with Volkswagen which became a decade of deceit with clean diesel. It is out there. It has been happening, and not only just for a short period of time but for a long period of time.

New Democrats are very concerned with the situation. It is not even a band-aid.

The House resumed from January 30 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 third time and passed.

Air Transportation

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, it is a pleasure to rise again on an issue that is very important for Canadian consumers and travellers, which is the call for an airline passenger bill of rights. I asked this question, and the right hon. Prime Minister answered it, basically saying he was proud of the work of the Minister of Transport. Unfortunately, there is not much work to talk about with regard to an airline passenger bills of rights because it was lumped together with three other bills in the House of Commons as part of a general package. Worse than that is the fact that there are no specifics in the passenger rights bill being presented. I know the Prime Minister may not have to worry about these things because he flies in the government's plane, the Aga Khan's plane, or those of other friends and acquaintances, but the reality is that most of us who travel as general passengers face a number of obstacles, for which we want and expect a set of rules.

Europe has a robust system that is understandable, and the United States has a system that is understandable, and most important, there is clear language that defines what takes place. The government has passed a bill that does not talk about the specifics of the rules of the game with regard to cancellations, which could be due to delays related to mechanical difficulties or rerouting or could be caused for appropriate reasons, such as bad weather. There are a number of issues with regard to remuneration for meals and accommodations. All people want is to know what their rights are and to have a say.

Europe has a very specific way of doing this. The same is true with the United States. There are issues of delay and tarmac rights. There has been a series of unfortunate incidents on airplanes not only in Canada but internationally that got a great deal of attention in the media. Hearings have taken place in the United States to protect consumers. In the U.S. there have been very overt and public cases where people have been dragged off of planes and injured, whereas in Canada there have been a number of situations where passengers have languished for hours, with feces in the aisle because people are not allowed to go to the washroom or the washroom has not been emptied. The rerouted plane has to sit in a holding pattern, with people having very few rights. In fact, people have resorted to calling 911 just to get water or some sort of attention.

The minister in this case has tabled a bill in which he is leaving this all to regulations and back-door lobbying by the airline industry. There was no attempt in the legislation to specifically identify what the parameters or compensation would be or have at least a participatory element for the public and for Parliament. Quite frankly, it is a way of not doing the job.

Similarly, the Minister of Transport has taken a hands-off approach with regard to auto recall. We will see that in Bill S-2 when it is next debated. Even today in the House, when members asked for leadership with regard to environmental property of which the minister is the custodian, he basically passed the buck again. He is not interested in the details, in sharing information, or in setting standards.

The Prime Minister answered this question saying he was proud of the work, but there has not been any work. In fact, leaving the decisions for bureaucrats in back rooms and through back doors to be lobbied by the industry and others is not a way for democracy to run. All the minister has to do is try.

Strengthening Motor Vehicle Safety for Canadians Act

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Madam Speaker, I am very pleased to be here today to speak to Bill S-2, an act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another act.

I am also pleased to see that the Liberal government is willing to take good ideas from the previous Conservative government and implement them in a bipartisan manner. Bill S-2 bears a striking resemblance to Bill C-62, as was mentioned. Bill C-62, introduced by the then minister of transport, the hon. member for Milton, was a solid piece of legislation, designed to increase our safety standards.

Bill S-2 proposes to increase the involvement of the Minister of Transport in vehicle recalls to bring Canada in line with the recall standards of other countries around the world. The power of the Minister of Transport to issue recalls is a welcome addition. While this power is expected to be required only rarely due to the willingness of manufacturers to issue recalls quickly, it is an important deterrent to help avoid any issues going forward. The power of the minister to issue fines to manufacturers for up to $200,000 per day for non-compliance gives this legislation the horsepower it needs to be taken seriously as a legitimately enforceable piece of legislation.

An interesting idea in this legislation is to impose a non-monetary penalty on the company in lieu of, or in addition to, a monetary fine. Such a penalty could take the form of, for example, a requirement for additional research and development to be implemented. I doubt that these penalties would be imposed often, if at all, as the company would want to avoid any public embarrassment that such a fine would cause. That said, having this power would be very useful for the minister should any conflict over safety concerns arise.

This act would also codify into law what the market has set as the standard for recalls, ensuring that manufacturers are the liable party for the cost of replacing any recalled parts. Again, this is the current market standard, but ensuring that the standard is clearly expressed in law is a positive step for manufacturers, the dealerships, and the consumers. It is important to note that while it is, indeed, laudable to increase our safety standards, this bill is not a response to a significant issue within the industry.

Canada does not have an excess of dangerous vehicles on its roads that manufacturers are refusing to repair. In fact, it is quite the opposite. In 2015, manufacturers recalled over five million vehicles of their own accord for everything from bad hydraulics on a trunk to important engine repairs. Manufacturers voluntarily spent their time and money to ensure that their products were safe and that they met the standards that consumers expect.

With the advent of social media and 24-hour news, manufacturers cannot afford the bad publicity that comes with widespread complaints and potentially dangerous faults. That is why, in 2016, there were at least 318,000 recalls issued without a complaint having been filed with Transport Canada. Again, I believe vehicle manufacturers do not want to be put in the difficult situation of having the press catch wind of a defect before they know about it.

The reason I bring attention to this is due to the proposed changes to section 15 of the act. These proposed subsections give several notable new powers to Transport Canada inspectors. Some of these powers are worth noting due to how they change the current relationship between the manufacturer and Transport Canada.

Considering the extent of these powers, I will read from the bill itself, which states that the inspectors may enter on and pass through or over private property “without being liable for doing so and without any person having the right to object to that use of the property”, and can “examine any vehicle, equipment or component that is in the place”. Inspectors may “examine any document that is in the place, make copies of it or take extracts from it”. They may “use or cause to be used a computer or other device that is in the place to examine data that is contained in or available to a computer system or reproduce it or cause it to be reproduced”, and “remove any vehicle, equipment or component from the place for the purpose of examination or conducting tests.”

Furthermore, the bill states:

Any person who owns or has charge of a place entered by an inspector under subsection (1) and every person present there shall answer all of the inspector’s reasonable questions related to the inspection, provide access to all electronic data that the inspector may reasonably require...

Perhaps now it is clearer as to why I highlight the good record manufacturers have regarding the timely issuing of recalls.

These additional powers seem somewhat disproportionate to any issues we currently experience with safety recalls.

It is very reasonable, and indeed a requirement, for Transport Canada inspectors to have increased powers to go along with their increased responsibilities in the bill. However, I would suggest a measured response.

It simply is not the case that manufacturers are hiding serious defects from both the public and Transport Canada. Again, I call attention to the 318 recalls that manufacturers issued without any complaint made to Transport Canada.

As I mentioned the last time I spoke to the bill, the reality is that the last time a minister of transport criminally prosecuted a manufacturer was nearly 25 years ago, in 1993, when Transport Canada took Chrysler Canada to court over defective tire winch cables. The case was dismissed in 2000.

Those numbers show that vehicle manufacturers are working with the public in good faith and we ought to work with them in that same good faith.

That is why I proposed an amendment to Bill S-2 which would have ensured that the minister acts in good faith while exercising the additional power granted in the bill.

I will read from my amendment to give context to what I am saying. It states, “The Minister may, by order, require any company that applies a national safety mark to any vehicle or equipment, sells any vehicle or equipment to which a national safety mark has been applied or imports any vehicle or equipment of a class for which standards are prescribed to if the Minister has evidence to suggest that there is a defect or non-compliance in the vehicle or equipment.” To add clarity, the amendment I proposed would have required that the minister have a suspicion of defect or non-compliance prior to ordering tests or imposing on a manufacturer. This is as opposed to the original wording, which insinuates the ability of the minister to order tests to prove compliance. While this difference may seem subtle, it is paramount.

While this bill would not amend the Criminal Code, I still believe that the presumption of innocence ought to be the standard in any legislation that contains punitive enforcement options. Remember, the minister can issue fines of up to $200,000 per day. This is far from an insignificant amount of money.

In addition to the text above, my amendment also required that the minister consult with the manufacturer before ordering tests in order to determine if the company had conducted or had planned to conduct the tests he was considering ordering. This could have potentially saved the manufacturers the cost of conducting tests that had already been completed. I saw this as recognition of the effort that manufacturers were currently placing on safety testing, along with their strong safety track records.

The bill in its current wording seemingly assumes that there is widespread and intentional non-compliance. This is simply not backed up by statistics. Remember, there has never been a case where the manufacturer refused outright to repair a defect in a vehicle, especially one that would lead to a dangerous situation. In fact, there is evidence of the opposite. I would draw members attention again to the over 300 examples from 2016 of voluntary recalls, without any complaint having been received by Transport Canada. I see those examples and recognize the importance manufacturers are already placing on safety.

Again, this is not to state that we do not need a legislative framework to ensure these high standards are maintained. However, improvements could have been made on Bill S-2 to correct the issues I noted. Unfortunately, the Liberal members of the committee rejected my reasonable amendment. In fact, the Liberals rejected both of the Conservative amendments and all of the NDP amendments. For a government that likes to claim bipartisanship or collaboration on these kinds of bills, that is a remarkable statistic.

I would now like to take a moment to speak about the larger framework into which Bill S-2 will fit.

The Auditor General released a report in November 2016 titled “Oversight of Passenger Vehicle Safety—Transport Canada”. The report was less than glowing in its review of the current state of Transport Canada. In particular, the report noted that Transport Canada was slow in responding to new risks, which posed a significant problem for a bill meant to increase the speed and clarity of recalls for Canadians. It states:

We found that Transport Canada did not maintain an up-to-date regulatory framework for passenger vehicle safety. There were lengthy delays, sometimes of more than 10 years, from the time work began on an issue to the Department’s implementation of new standards or changes to existing ones.

The report stated that Transport Canada generally waited until the United States had updated its motor vehicle safety standards. What is the point of conducting research if the safety recommendations are not implemented until another jurisdiction leads the way? Canada has very different requirements than the United States. We expect more from our government agencies than simply waiting and mirroring the actions of our neighbour to the south.

Going forward, this will become an even more pressing concern as autonomous vehicles are introduced onto our roads, as has already been noted by previous speakers. We will need a nimble, legislative, and regulatory framework to ensure that consumers are protected, while recognizing that manufacturers do indeed have a strong track record of ensuring safety.

Furthermore, the Auditor General notes that there is a problem with inconsistent use of evidence and research in determining safety standards. It states:

We also found that it [Transport Canada] did not have complete collision and injury data to inform its decisions. 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.

These are significant issues facing Transport Canada. They should be resolved if the agency is going to be expected to take on additional responsibilities for a proactive review of vehicles.

The Auditor General report noted that Transport Canada possessed incomplete data on collisions and injuries in the national collision database because provinces were not providing the information.

In addition, the report noted that Transport Canada did not have access to data from insurance companies, hospitals, police, and others involved in vehicle safety matters. Therefore, it is missing information that could help inform future vehicle safety priorities.

Transport Canada will need to work toward addressing these issues as it prepares for the additional responsibilities entrusted to the agency in Bill S-2. It is important to note that the agency has indicated it is taking the recommendations of the Auditor General seriously and working to implement those changes. However, I question how much of a change it can make while dealing with reduced funding.

For example, the budget for crash-worthiness testing was cut by 59% for the 2016-17 fiscal year. At the same time, funding for six regional teams situated in engineering departments in universities and colleges that were charged to assist in outreach activities on vehicle safety also saw their funding cut. These regional teams will no longer be able to feed information into the regulatory decision-making process, which the auditor general had noted was not functioning as well as it could be.

Therefore, while the agency is dealing with a lower budget, Bill S-2 is seeking to increase its responsibilities. I question how it will be expected to fulfill these new responsibilities if it does not have the resources to fulfill the responsibilities it currently has.

Bill S-2 would advance vehicle safety standards and would be a positive step in ensuring safety. However, the bill is missing some key aspects that would make its enforcement much more effective and fair for both the manufacturers and the consumers. It was disappointing that members of the governing party did not work with the opposition to ensure that the proposed amendments by the opposition were added to the bill, which would have provided more transparency and increased clarity when it came to the powers of the minister.

All in all, Bill S-2 is important legislation and would result in increased road safety, which why I will support the bill at third reading.

[Gagan Sikand, Liberal, Mississauga—Streetsville, ON]

Madam Speaker, the hon. member mentioned in her remarks that autonomous vehicles and new technologies change very quickly. I am wondering how Bill S-2 would help Canadian interests and Canada keep up with other countries in this space?

[Karen McCrimmon, Liberal, Parliamentary Secretary to the Minister of Transport]

Madam Speaker, I am very pleased to speak today in support of Bill S-2, the strengthening motor vehicle safety for Canadians act.

I would like to begin by thanking my colleagues of the Standing Committee of Transport, Infrastructure and Communities for their hard work in reviewing this bill. I would also like to thank the representative from Central Nova for bringing forward amendments clarifying dealer rights so that existing contractual mechanisms between dealers and manufacturers will not be impeded.

Based on debate on this bill in this chamber and in the other place and at committee, it is clear that every member supports stronger, better motor vehicle safety for Canadians. This bill would deliver exactly that.

Motor vehicle safety is something that touches each of us on a daily basis. Unfortunately, many of us have been personally affected through the death or serious injury of a loved one, friend, or colleague involved in a vehicle collision.

This is the highest of all the modes of transportation. To a large extent, these tragedies are preventable, and the safety of Canadians is paramount to Transport Canada and this government. This is why we are always looking for ways to improve safety through our policies, regulation, and legislation. This bill will address key, long-standing gaps in Canada's motor vehicle safety framework, providing new and better tools that will help improve safety for all Canadians.

In addition, the automated and connected vehicle revolution has arrived. The pace at which new innovative technologies are being introduced is unprecedented and it is accelerating. This bill would help ensure that Canadians could safely benefit from these new technologies by supporting industry in bringing these innovations to market through clear provisions under the act.

The changes proposed in the bill are some of the most significant to the Motor Vehicle Safety Act since it first came into effect in 1971.

In the discussions on this bill since it was introduced, comparisons with the United States have been made, with the overarching concern being that the Motor Vehicle Safety Act does not provide Canadians with the same level of consumer or safety protection as afforded to Americans for vehicles that are very similar, or even identical. The changes proposed in this bill would meet Canadians' expectations. Although some provisions are different from the American legislation, the legislation would ultimately have the same result of making Canadians safer. Our objective is to make Canadians safer than before, while having the flexibility to allow for creative technological innovations, such as new fuels or ways to increase motor vehicle safety.

I will highlight some of the new provisions that would strengthen the safety of Canadians.

One of the most significant proposed changes to the Motor Vehicle Safety Act is the new powers for the minister to order actions by companies. Currently under the act, there is no requirement that obligates companies to take corrective actions if a defect or a non-compliance is found.

We acknowledge that Canadian automotive companies have had a good track record in addressing defects in their vehicles. However, if a problem arose today and a Canadian company refused to do anything about it, there would be very little that the government could do quickly. All that Canadians would receive would be a notice of defect. This is not an acceptable situation for Canadians. Companies are responsible for the products they sell, which is why the ability to order a company to correct a defect or non-compliance, as well as the ability to order a company to pay the cost of corrections when it is in the interest of public safety, are some of the key proposed amendments in this bill.

These are key tools that would help protect Canadians in those rare situations where a company decides not to fulfill its responsibilities. It would also help to ensure a level playing field for all of Canada's automotive companies.

The proposed order powers would work in conjunction with the current power to order a company to issue a notice of defect or non-compliance and the proposed requirement that a company include as part of its notice the earliest date that parts and facilities would be available to correct the defect or non-compliance. Whether voluntary by the company, or by order from the minister, in the event of a safety defect with their vehicles, Canadians would receive, as a first step, a notice of defect that would contain information regarding a potential safety issue with their vehicle. The notice would also contain information on when parts and facilities would be available to correct the defect.

If such information is not available at the time of publication of the notice, the company would be required to issue a subsequent notice when it becomes available. The second step is the correction of the issue. Normally, companies do this as part of their general business practices. However, if a company did not correct safety defects or non-compliances voluntarily, the minister would, if in the interest of public safety, and following the process outlined in this bill, order a company to correct a defect and order the company to do so at no cost to the consumer. Companies would then need to correct the defect using the options outlined in the bill, that is, repair the vehicle, replace the vehicle, or reimburse the cost of repairs already undertaken or the sale price of the vehicle less depreciation.

If necessary, the minister may also order the prohibition of sale, more commonly known as a stop sale, of the vehicle before it is first sold.

To address concerns raised by dealers, the government proposed, at the Standing Committee on Transport, Infrastructure and Communities, amendments to the bill. These amendments would replace the amendments made in the other place and provide clarification to clauses that already contain many of the benefits sought by the dealers, while preserving the original intent of the bill.

Notably, the government amendments would clarify that the corrective measures and the payment of costs detailed in the bill would apply to individuals and dealers alike. The amendments would also make it clear that there are existing mechanisms to address contractual issues between manufacturers and dealers that are not to be impeded by the bill and that the implementation of a correction does not limit a person or dealer from exercising any other right available by civil law.

The well-intentioned amendments proposed by the other chamber to attempt to protect dealers delved into the contractual relationships between dealers and manufacturers. For example, they included prescribing the rate at which dealers would be compensated for vehicles on their lots that were subject to a correction or a stop-sale order. However, the purpose of the Motor Vehicle Safety Act is to protect public safety, not to manage contractual financial matters or the dealer-manufacturer relationship.

I would like to thank all involved for their efforts to address concerns raised by dealers. The amendments in the other chamber enabled the government to work with the Canadian Automobile Dealers Association to clarify concerns and come up with the mutually acceptable language proposed in committee. This back and forth between our stakeholders and the chambers is a positive product of our legislative process, leading to better outcomes for Canadians.

Another order power that would contribute to the safety of Canadians is the authority for the minister to order a company to conduct tests, analysis, or studies on a vehicle or equipment in order to obtain information related to a defect or to verify compliance with the act. This is a similar power to one in the Canadian consumer protection act. It would help Transport Canada in instances where, as part of a defect investigation or to verify compliance, the department may not have had the tools or the capacity to undertake tests, analyses, or studies. The need to use this power could arise from, for example, components that require proprietary tools for which the departmental staff may not have access, or specialized knowledge or capacity.

While certainly useful in today’s context, I believe this study will become even more important in the years to come as already complex vehicles become more so as more new and innovative technologies are introduced.

On the subject of innovation, I am pleased to note this bill’s provisions that will help facilitate the introduction of new technologies in Canada, especially in the automotive sector.

These innovations hold great promise for Canadians in terms of economic development, environmental performance, and, of course, road safety.

The speed at which these technologies are being developed and introduced is unprecedented. Unfortunately, our regulations may not be able to keep up with them. This is why we are proposing to amend the exemption process and add a suspension order provision to the act.

While the act currently has an exemption process, we propose to make it more efficient. Currently, the act’s exemption authority authorizes the Governor in Council to grant an exemption due to economic hardship or the impediment of the development of new safety features, vehicles, or technologies.

The proposed changes would authorize the minister to order an exemption, making the process more efficient, and to modify the reasons for an exemption to support the development and safe introduction of new vehicle technologies. It must be noted that it would be up to the company requesting the exemption to demonstrate that the safety performance of the vehicle would not be compromised. All exemption orders would be published as soon as feasible on the Internet or by any other appropriate means.

This transparency is of critical importance to Canadians. Much like their right to know of potential safety defects with their vehicles, Canadians would have access to decisions on the granting of exemptions so that they are informed and aware of how the government is supporting innovation and maintaining their safety.

There are several other aspects of the bill that would also positively impact Canadians.

Enforcement is a key part of any safety oversight regime. An act can have a multitude of provisions to protect and benefit Canadians, but if there are only limited means to enforce them, then they really are not beneficial. The Motor Vehicle Safety Act in its present form has limited enforcement options to elicit compliance. In fact, criminal prosecution is currently the only option, but in some cases, may not be appropriate, depending on the severity of the particular violation. Bill S-2 would change that.

As parliamentary secretary to the Minister of Transport, I look forward to the passage of this bill to better protect Canadians so that my family, all our families, and all Canadians can benefit from its safety provisions.

As I noted at the beginning of my speech, Bill S-2 would dramatically improve the Motor Vehicle Safety Act by addressing long-standing gaps in its safety framework, facilitating innovation, and protecting Canadians.

The bill has been before Parliament for some time. If we include its predecessor, Bill C-62, it has been nearly three years since it was first introduced. That is much too long for Canadians to wait for amendments that would improve their safety.

I urge all my colleagues to pass this bill so that Canadians may start to benefit from it as soon as possible.

[Karina Gould, Liberal, Burlington, ON]

moved 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 third time and passed.

[Karina Gould, Liberal, Burlington, ON]

moved that Bill S-2, An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act, be concurred in.

The House proceeded to the consideration of Bill S-2, An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act, as reported (with amendment) from the committee.

Business of the House

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

Mr. Speaker, this afternoon, we will continue the report stage debate of Bill C-24, the one-tier ministry bill. Tomorrow, we shall commence second reading debate of Bill C-66, the expungement of historically unjust convictions act.

On Monday, we will call report stage and third reading of Bill C-51, the charter cleanup legislation. Tuesday we will return to Bill C-24 at third reading.

If Bill C-66 is reported back from committee, we would debate that on Wednesday with agreement. The backup bill for Wednesday will be Bill S-5, concerning vaping, at second reading.

On Thursday, the House will debate Bill C-50, political financing. Then on Friday, we will consider Bill S-2, the strengthening motor vehicle safety for Canadians act.

Transport, Infrastructure and Communities

[Judy Sgro, Liberal, Humber River—Black Creek, ON]

Mr. Speaker, I have the honour to present, in both official languages, the 16th report of the Standing Committee on Transport, Infrastructure and Communities in relation to Bill S-2, an act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another act.

The committee has studied the bill and has decided to report the bill back to the House with amendments.

[The Chair, Liberal, Judy Sgro]

Yes, Mr. Aubin.

We have adopted our subcommittee report. We've completed Bill S-2, and we can now look at your motion, Mr. Aubin.

Are you moving it now and introducing it officially?

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

Thank you, Madam Chair.

When we drafted this amendment, it seemed reasonable to us. I would add that today, given the number of amendments that have been rejected, it seems even more important to me, since the obligation to publish within a prescribed period of time has been systematically refused. We now know now that “as soon as possible”, or any other vague wording, can mean the next morning, or two years later. It would seem important to us that the minister at least report to Parliament as to the use of the new powers given to him by Bill S-2. That is why we propose that:

21 (1) No later than December 31 next following the end of each fiscal year, the minister shall prepare a report on the administration and enforcement of the provisions of this act during the previous fiscal year and cause it to be tabled before each House of Parliament.

In this way there would at least be a secure record where on a yearly basis all of the decisions would be made public and each member could apprise himself of them and decide to convey the information to his riding in anyway he or she deemed appropriate.

Subclause 21(2) describes what this annual report should contain. I don't want to read each amendment again. You have had time to read them. It seems to me, now that the obligatory publication of a report at a set time has been rejected, that the annual report should be the minimum we could expect.

[The Chair, Liberal, Judy Sgro]

We are reconvening our meeting. We are back on Bill S-2.

Go ahead, Mr. Fraser.