Bill C-33

Strengthening the Port System and Railway Safety in Canada Act

An Act to amend the Customs Act, the Railway Safety Act, the Transportation of Dangerous Goods Act, 1992, the Marine Transportation Security Act, the Canada Transportation Act and the Canada Marine Act and to make a consequential amendment to another Act

This enactment amends several Acts in order to strengthen the port system and railway safety in Canada.
The enactment amends the Customs Act to require that, on request, any person in possession or control of imported goods make those goods available for examination in accordance with regulations and deliver those goods, or cause them to be delivered, to a secure area that meets the requirements set out in regulation.
The enactment also amends the Railway Safety Act to, among other things,
(a) add a definition of “safety” that includes the concept of security;
(b) prohibit interference with any railway work, railway equipment or railway operation, or damage or destruction of any railway work or railway equipment, without lawful excuse, in a manner that threatens the safety of railway operations;
(c) prohibit behaviour that endangers or risks endangering the safety of a station, railway equipment or individuals who are at the station or on board the railway equipment and unruly behaviour toward employees, agents or mandataries of a company;
(d) authorize the Minister to order a company to take necessary corrective measures if the Minister believes that
(i) a measure taken by the company in relation to a requirement of a regulation made under subsection 18(2.1) has deficiencies that risk compromising the security of railway transportation,
(ii) the security management system developed by the company has deficiencies that risk compromising railway security, or
(iii) the implementation of the company’s security management system has deficiencies that risk compromising railway security;
(e) authorize the Minister to grant, refuse to grant, suspend or cancel a transportation security clearance;
(f) strengthen the administrative monetary penalty regime; and
(g) require a review of the operation of the Act every five years.
The enactment also amends the Transportation of Dangerous Goods Act, 1992 to, among other things,
(a) require persons who import, offer for transport, handle or transport dangerous goods to register with the Minister;
(b) provide to the Minister powers relating to the management of safety risks; and
(c) establish an administrative monetary penalty regime.
The enactment also amends the Marine Transportation Security Act to, among other things,
(a) set out the Act’s purpose and allow the Minister of Transport to enter into agreements with organizations in respect of the administration and enforcement of the Act;
(b) set out regulation-making powers that include powers respecting threats and risks to the health of persons involved in the marine transportation system, the sharing of information and the establishment of vessel exclusion zones;
(c) authorize the Minister to make interim orders and give emergency directions and modify the Minister’s power to give directions to vessels; and
(d) create new offences, increase certain penalties and extend the application of certain offences and the administrative monetary penalty regime to vessels.
The enactment also amends the Canada Transportation Act to, among other things,
(a) specify that the Minister may use electronic systems in making decisions or determinations under an Act of Parliament that the Minister administers or enforces and provide that a power of entry into a place under such an Act may be exercised remotely by means of telecommunications; and
(b) reduce the threshold above which the Minister and the Commissioner of Competition must receive notice of proposed transactions relating to a port.
The enactment also amends the Canada Marine Act to, among other things,
(a) set out that port authorities are responsible for management of traffic and create regulatory authorities respecting fees and information and data sharing in respect of that management;
(b) provide the minister with the power to require, by order, the taking of measures to prevent imminent harm to national security, national economic security, or competition; and
(c) require port authorities to establish advisory committees, which must include representatives from local Indigenous communities, require periodic assessments of port authorities’ governance practices and set out new requirements respecting plans and reports relating to climate change.
Finally, it makes a consequential amendment to the Transportation Appeal Tribunal of Canada Act .

Strengthening the Port System and Railway Safety in Canada Act

[Xavier Barsalou-Duval, Bloc, Pierre-Boucher—Les Patriotes—Verchères, QC]

Mr. Speaker, I really liked what my colleague said at the end of his response to the previous question, that the government is equating “modernization” with “centralization”.

That brings me to the question that I want to ask him. Often, in banana republics or poor countries, the system in place allows people to secure a position not because they have the necessary skills or degrees, but because they asked their friend who is a senator or mayor to give them a position as a favour.

Now, we are seeing something similar happening with this government. A minister in this government wants the power to decide who will be president of a port.

Does my colleague see this as modernization, or rather as a continuation of the Liberals' habit of appointing their buddies to positions?

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, the government right now, through this bill, is asking for more power. It is saying it wants to be able to exercise greater influence over ports, and particularly over the process of appointments. It wants to take over what has historically been the role of the board itself, to select its chair. The government wants to appoint that chair itself. The government is coming to Parliament asking for more power when it comes to appointments.

If we are going to evaluate that desire for power, I think it is important to look at how the government has used this power in the past. We can see with the vast powers of appointment the federal government already has that there have been many instances of clearly partisan filters as opposed to competence filters being applied by the government, whether in an attempt to manage away sensitive issues by appointing people who are close to the Prime Minister or by looking at who has donated to the Liberal Party when considering appointments.

I do not think it is reasonable for a government that has so clearly failed to demonstrate a commitment to competency in appointments to then come back and ask the House to give it more power in the area of appointments.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, my colleague talked about harnessing the experience of people directly impacted, and that it is not in this bill. I absolutely agree.

The act would create indigenous engagement committees for port authorities. When I talk to Nuu-chah-nulth people in my riding, that is not good enough. They actually want a seat at the table. They want an appointment for each nation whose territory the port authorities reside on, for whose waterways and lands they are on. That is identified in the truth and reconciliation call to action number 92. It explicitly states that they “call upon the corporate sector in Canada to adopt the United Nations Declaration on the Rights of Indigenous Peoples as a reconciliation framework and to apply its principles, norms, and standards to corporate policy and core operational activities involving Indigenous peoples and their lands and resources.”

Does my colleague agree that indigenous peoples should not just be sitting as an advisory committee, but that they actually deserve a permanent seat at the table for every port authority whose lands and waterways they reside on?

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, I appreciate the question from my colleague and look forward to working with him on the government operations committee with the revisions that have been made to committee memberships.

When it comes to indigenous engagement, I think it is important for that engagement to happen and for it to be driven by the particulars of the circumstances in terms of where the port is. Just because of location and where indigenous nations are, it seems to me that there would likely be significant variation in terms of the approach taken, depending on where those ports are and what nations are proximate, how many there are and so forth.

The member's proposal is an interesting one, but any kind of mandating and structure from us in Ottawa should be done very carefully, if at all. A better approach would be to recognize the need for local boards to make evaluations and determinations around how this proceeds.

To his point about indigenous representation on the board, it is the power of the minister to make these appointments. The minister currently, without this legislation, has the power to determine who sits on the board. The minister could appoint members. I suppose what he is suggesting is not so much that. Maybe he is suggesting the nations themselves would be able to make these appointments. I welcome him to further illustrate what that structure could look like, and I am sure he will make those points if the bill gets to committee.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, it is an honour to rise today to speak to Bill C-33. Let me begin by thanking the sponsor, the Minister of Transport, and you for allowing me to participate in the very important second reading debate on this bill, strengthening the port system and railway safety in Canada act, with regard to improving the safety and security at Canada's marine ports. I believe we can all agree that this piece of legislation is intended to achieve many goals that would eventually streamline the work taking place at our marine ports, increase our supply chain resiliency and ensure the work at our ports is environmentally sustainable, all while increasing safety and security measures to keep our goods safe and protect Canadians from harm.

Before I continue, I will indicate that I will be sharing my time with the member for Niagara Centre.

I want to take the time today to further explore the measures we are proposing to enhance border security at our major marine ports.

The Canada Border Services Agency, the CBSA, has an important mandate to provide border services that support national security and public safety priorities while also facilitating the free flow of persons and goods. Each and every day, at marine ports from coast to coast to coast, the CBSA upholds its mandate by screening and examining imported goods arriving on container vessels. I want to make it clear that in their role, CBSA officers, whose daily activities would be affected by the proposed amendments in this bill, are already authorized to examine all shipments crossing Canada's border to ensure harmful goods are intercepted before they can enter our communities.

Today, the government is seeking to modernize the existing Customs Act authorities to resolve long-standing security risks and reduce obstacles to efficient trade at our marine ports. Modernizing the Customs Act would enable the CBSA to further address issues that may leave our marine ports vulnerable to organized crime and that may compromise the agency's ability to achieve its safety, security and facilitation mandate.

These changes are directly aimed at reducing delays and enhancing security at our marine ports. They would also result in long-term cost savings for Canadian importers, the trade community and consumers, and would ultimately help our economy continue to grow by reducing backlogs and lowering the costs associated with delays.

In order to help continue reducing criminal activity at the ports, we are proposing the following three changes to address security threats associated with organized crime, smuggling and internal conspiracies.

The first step the government is proposing is meant to address security gaps and reduce delays by requiring that high-risk shipments are made available for examination upon request of an officer. This would be achieved through Customs Act amendments and the creation of new regulations.

Second, the government is seeking to increase the security of high-risk shipments by introducing an amendment that would require that goods be brought to a secure area upon the request of an officer. This, in turn, would require marine ports to create secure areas that meet security requirements.

Lastly, Customs Act amendments are being proposed to enable the creation of new monetary penalties to help ensure that all entities involved in this supply chain comply with the new requirements. Penalties for non-compliance would be proportionate to health, safety and security risks.

Allow me to further elaborate on the three proposed changes to clear up any ambiguity that members may have regarding them.

In short, the first proposed amendment relates to making high-risk import shipments available to a CBSA officer for examination in a timely manner. The agency has noted that high-risk shipments selected for examination are not always made available by the terminal operators. This leads to supply chain congestion, delays for importers and an increased risk of tampering and removal of contraband while containers await examination by CBSA officers.

As it stands now, there is no defined time period in either legislation or regulation. This amendment to the Customs Act would provide an authority to make new regulations prescribing the time and manner of making shipments available for examination. Furthermore, these obligations would extend to other entities within the supply chain who have the care and control of goods, including terminal operators.

The second proposed amendment would require those responsible for these shipments to bring them to a secure area in accordance with the regulations. Currently, the Customs Act does not provide a definitive or specific obligation to ensure that high-risk shipments awaiting examination are moved to a dedicated secure area within marine terminals. As a result, shipments are at risk of being tampered with, and their contents, including drugs and weapons, are at risk of being removed by criminals prior to examination.

I acknowledge that some may argue that existing measures are enough. However, there are many documented instances of containers being breached and unknown contents being removed, while remaining unsecured and easily accessible by internal conspirators when stored with all types of marine cargo on port properties.

Can we truly not continue to advance our security measures to keep up and stay ahead of those committing illicit activities? Adding extra layers of security means that Canadians can feel safer knowing that more contraband and dangerous products are being stopped and therefore do not enter our communities.

To help ensure compliance with these new requirements, additional contraventions would be added to the CBSA's existing penalty system, which would allow the CBSA to issue penalties when goods are not delivered within established time frames. Currently, only the person reporting the goods to the CBSA can be compelled to present them, and there is no timeline within which to do so. As a result, only the persons reporting the goods can be held responsible. In the marine mode, this means that the CBSA cannot compel others who may handle these shipments, such as terminal operators, to make them available to the CBSA in a timely manner.

The government is taking action to ensure the right parties take responsibility for their role in the process. This would lead to fewer delays and lower storage fees for importers, as goods would be moved to secured areas at the right time, examined sooner and released once cleared by the CBSA. This is expected to translate into lower costs for consumers down the line. I believe that having lower costs on commodities is something that every member in this House can support.

I hope members can now understand the urgency and need for these amendments to the Customs Act as something that is not driven by politics, but is a security requirement that would benefit the safety of all Canadians. The changes outlined in this bill would ensure that the CBSA continues to fulfill its mandate to protect and secure Canada's borders and incoming goods while further protecting Canadians from harmful products.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, I want to ask a fairly narrowly focused question regarding the leadership of the port authorities. What is the thought process behind the ministerial appointment of a chair as opposed to having it be more locally governed? That seems to add a layer of process. Timing and delays are ostensibly what we are trying to address here. Are there some service standards around the timing of ministerial appointments? What is the basic reason for that change away from local authorities?

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, that question is certainly well outside the scope of this piece of legislation, as the member knows. My entire speech was based around the security of containers and the changes to the act that we are putting in place to assist with ensuring that those containers can be kept in a secure location, can be properly monitored by CBSA and, most importantly, can be dealt with in a timely manner that increases the efficiency of our ability to process containers.

I appreciate that the member has a very specific question that is completely unrelated to this bill. I would encourage him to perhaps ask that question in question period, provided that the Leader of the Opposition has released his iron grip on what Conservatives are allowed to say these days.

Nonetheless, I look forward, hopefully, to a question that relates to the substance of my speech.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Speaker, I want to go back to the question I asked earlier. We know the act creates indigenous engagement committees for port authorities, and I know that is important. However, when I meet with the Tseshaht and Hupacasath, whose lands the Port Alberni port authority resides and operate on, for example, and the Nuu-chah-nulth Tribal Council, they say they do not want just an appointment to the board made by, say, the province or the federal government. They want a permanent seat at the table.

The operations of the port authorities in their territories have a huge impact on wild Pacific salmon, economic development and, of course, the future of our region. Does my colleague not agree that indigenous nations have a right to, and should have, a permanent seat on the port authorities in their territories, as the ports operate on their waterways and lands?

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, again, the question was not about the substance of my speech or the bill specifically, although I will indicate that I do agree with the member that all stakeholders involved in a particular indigenous community should have proper say. I recognize that this is the introduction of and first debate on this bill. After we pass the bill, it will go to committee, and then I think he will have an opportunity to raise those concerns.

If his concerns fall within the scope of the bill specifically, then I am sure the member can advocate for them and communicate with other members of the committee to see that changes are made to the bill to address them. However, in principle, I would agree with him that stakeholders, in particular indigenous communities, should have a say in this, especially as it relates to land that is rightfully theirs.

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Mr. Speaker, before the bill we are debating was introduced, a working group looked into this matter. The mandate of that working group, created in March 2022 by the transport minister at the time, was to study recent supply chain disruptions. Factors like pandemics, COVID-19, climate change and flooding were mentioned, among other things.

I think the mandate of the working group is important, but I do not see the connection between that mandate and the bill before us. The bill seems to be an empty shell of the much-vaunted announcement that promised this was the start of a major national supply chain strategy.

My question is this: Basically, what needs to be done for things to change? I will conclude by saying that the measures also refer to addressing the labour shortage. This was not successful at the Port of Montreal. The government passed a special law rather than improving working conditions because workers are also part of the supply chain.

My question is the following: How can this be considered a strategy? How will the problem of a major labour shortage in supply chains be resolved?

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I have heard discussion from other members today in relation to a working group that worked prior to the bill being brought before the House. However, I have been looking at the bill itself, not the work of that group. I will say that if the group and those who did the work feel that something is missing in the content of this bill, certainly when the bill gets to committee, they will have an opportunity to address it at that time.

I focused a lot of my speech on improving the supply chain by ensuring that these containers are dealt with in a proper manner, so I would say that this bill does address efficiency and improving the supply chain.

[Vance Badawey, Liberal, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, let me take this opportunity this afternoon to thank all members and all parties of the House for participating in this very important second reading debate on Bill C-33, strengthening the port system and railway safety in Canada act, with respect to improving the safety and security at Canada's marine ports.

I would like to further describe the rationale for the measures that are designed to enhance the security of Canada's marine transportation system.

Transport Canada has the important mandate of promoting a safe, secure, efficient and environmentally responsible transportation system. In addition to developing policies and programs for marine security, the Minister of Transport also has the lead responsibility for marine security policy, coordination and regulation across government, a whole-of-government approach.

When introduced in 1994, the Marine Transportation Security Act was intended to address a long-standing omission in federal powers and better equip the government and the marine transportation industry to respond to any threat to the security of people, goods, vessels, ports and facilities in the Canadian marine environment.

In the decades following, Canada's marine security landscape has changed significantly. While concerns around physical disruption perpetrated by terrorist actions still exist, emerging challenges, such as cybersecurity and biosecurity, are challenging our current threat-focused security framework.

Canada's marine transportation system is a central component of our national, provincial and regional economies. It is one of the primary means for moving Canadian exports to market and for imported goods from abroad to arrive in Canada, as well as in the Midwest in the United States, through the networks we have established throughout the many years of partnerships with different sectors. As such, it is an important enabler of Canadian economic growth well into the future.

As an example, my home riding and region of Niagara is an integral part of our economy. Niagara, which is known as a multimodal transportation hub, is essential to the overall Canadian economy and is growing to be one of the nation's most strategic trade corridors, therefore strengthening Canada's overall international trade performance.

Security events, however, can have a significant impact on port and marine-related operations, which in turn directly affect the efficiency of Canada's supply chains. Concerns over security issues, including a dated regime, can lead to the perception of Canada as a weak link in global supply chains that can affect when and where companies decide to invest. Hence, this is the reason for the bill.

Such a perception could adversely affect Canada's relations with other major trading partners and have significant impacts on future opportunities for economic growth and development, like what is happening in the Niagara region as a transportation hub, with respect to the movement of trade and people. Right now the transportation committee is discussing high-speed rail to bring the country closer together and enable us to welcome visitors who can move around our great nation with great fluidity in tandem with the movement of trade within the infrastructure we have established throughout the past century.

A secure transportation system promotes a secure economy, a resilient supply chain and further supports the competitiveness of Canadian ports. In a constantly changing world, Canada's marine system needs a modern security framework to adapt and respond to increasing complex challenges in tandem with other methods of transportation, such as rail, road and air.

Today, as part of Bill C-33, the government is seeking to modernize the Marine Transportation Security Act to ensure that it remains modern, usable, flexible and a consistent piece of Transport Canada's legislative framework. Modernizing the act will enable the government to have access to tools to address new and emerging security concerns, reflecting the challenges, but, more important, addressing those challenges so we accrue over time confidence with future as well as present international investors.

The proposed amendments will introduce new ministerial authorities, such as the power to make interim orders, the ability to require ports and other marine facilities to accept vessels that have been directed to these locations, and the ability to issue emergency directions to persons or vessels to address immediate security threats.

Unlike other marine legislation, the current Marine Transportation Security Act does not provide effective tools to be used in exceptional circumstances across the industries. The ability to make interim orders will align across Transport Canada's legislation and allow the department to take immediate action to deal with security threats or risks, or take action to address a threat to marine transportation security or to the health of persons in the marine transportation system. This will allow us to better protect the integrity and efficiency of Canada's supply chains.

The proposal will also introduce new regulatory-making authorities that will allow Transport Canada to: one, implement a cost-recovery framework; two, address maritime threats and risks to the health of persons involved in the marine transportation system; three, implement formalized information-sharing channels with federal partners; and, four, establish exclusion zones for vessels.

The COVID-19 pandemic highlighted emerging biosecurity threats, such as global pathogens, which pose significant risks to public safety and the broader Canadian supply chains, as well as those that flow to Canada, into the U.S. and to our binational partners internationally.

The marine environment poses a unique vector for virus transmission, with cruise ships, for example, or vessels interacting in northern and remote communities. An outbreak on board a vessel or at maritime facilities could cause significant impacts to workers' health and security, which would have a direct effect on our supply chains.

Finally, this proposal will support a shift in the approach to marine security since the act was first established. The shift includes enabling the department to enter into agreements with partner organizations to oversee enforcement of the act and its regulations. This will allow Transport Canada to leverage expertise of organizations and the capacity of other government departments, once again, a whole-of-government approach.

The proposed amendments to the act included in the bill will modernize Canada's security framework, but, most important, it will create more fluidity to ensure more confidence in our transportation system across our great nation.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, I want to thank my hon. colleague across the way for his advocacy of Great Lakes governance and fishery issues. I support him and join him on those issues.

On today's speech, his colleague previously chastised me for asking a question on an issue that was not relevant to the bill, specifically, the movement or the authority of the minister to appoint chairs of the port authorities.

Would my hon. colleague across the way agree that members of the House, particularly if they are speaking in favour of government legislation, should familiarize themselves with it, because, for the record, that is part of the bill?

[Vance Badawey, Liberal, Niagara Centre, ON]

Mr. Speaker, I appreciate the member's involvement in the Great Lakes issues as well, and I thank him for that.

This is a whole-of-government approach. Essentially, when we look at appointing people to different authorities, and I want to mention that these authorities are federal government authorities, there is a lot of communication that happens between the federal government, the minister, the whole of government, different departments, as well as the authority itself.

I would anticipate and expect that when appointments are made, like all appointments that are being made, there will be a great deal of discussion with the authority itself and the partners that we work with almost on a daily basis. With that said, the right person will be chosen for those positions that would otherwise by appointed by the minister.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Mr. Speaker, since we are discussing railways, ports, and so on, I would like to bring up the fact that last year we learned that CN, the largest railway company in Canada, had no francophones on its board of directors, a flagrant contravention of the Official Languages Act.

The same happened with Air Canada. English-speaking Canada may be less aware of this, but, in Quebec, people are unable to receive services in French, and pilots and flight attendants who do not speak French are often in the news. There are thousands of complaints every day. We do, however, have an official languages act. Technically, these companies are subject to that legislation.

Does my colleague not think that this is a bit of a scandal? Should we not work harder to ensure that these companies comply with the Official Languages Act?