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

[Vance Badawey, Liberal, Niagara Centre, ON]

Mr. Speaker, the short answer would be yes. We should be dealing with that in partnership with those agencies with which we do business. May I suggest for the member that with this going to committee after the bill moves through second reading, that the member who is sitting right next to him bring that issue up. Of course, we can come forward with some recommendations to help deal with that situation.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Mr. Speaker, the member for Skeena—Bulkley Valley has spoken to the New Democratic caucus about this legislation and has raised some serious concerns.

The legislation was drafted completely ignoring the recommendations that were brought forward by the national supply chain task force and the Standing Committee on Transport, Infrastructure and Communities. In its report on railway safety, there were 21 recommendations, none of which have made it into this bill. Six of them, in fact, were on labour shortages, yet we do not see labour shortage mentioned at all in the legislation.

I wonder if the member could speak to how that could be included when the bill is taken to committee and improved upon at that place.

[Vance Badawey, Liberal, Niagara Centre, ON]

Mr. Speaker, again, the short answer is yes. One of the things we do cherish and respect in the House is the work of committees.

Being on the transport committee since 2015 with her colleague, we look forward to integrating a lot of the reports that we have completed, whether it be the ports modernization review, the St. Lawrence Seaway review, the labour strategy or the task force that looked after supply chains. The intent of the committee will be to come forward with an integration of those recommendations, and, again, as a whole-of-government approach to ensure that all legislation is very consistent with each other. However, most important is that it aligns so that it best serves those who it is supposed to serve, and those are the customers who are within the supply chains. Of course, it would create net fluidity.

Updating the legislation and updating the means by which we want to move people and goods around the committee is ultimately what the committee, the House and this government are trying to do.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, this legislation is incredibly important to people in my constituency. The issue is not just container ships, which have been mentioned in the supply chain, but bulk carriers, particularly of coal and grain.

I would like to put it on the record that the Vancouver Fraser Port Authority is massively inefficient and incompetent, and the result is we have a backup of a virtually permanent parking lot in our sensitive marine areas. Freighters and bulk carriers that pay nothing for the privilege of free parking are ripping up the benthic organisms on a daily basis and are damaging the habitat of endangered whales.

The legislation would go some way to create an authority for the minister to insist that these ships be moved, but we will need amendments at committee. I want to flag it right now so that members of the transport committee and the new Minister of Transport become aware that this is a hot issue and we are red-hot angry through Saanich—Gulf Islands, Cowichan—Malahat—Langford and Nanaimo—Ladysmith. Let there be no more; we have had it.

I hope the government is ready for amendments.

[Vance Badawey, Liberal, Niagara Centre, ON]

Mr. Speaker, I love the candidness of the member for Saanich—Gulf Islands. We always know what she is thinking, so I give her credit for that. Absolutely, we do look forward to the member attending committee and coming out with some of those amendments.

As I mentioned earlier in my comments, there is a provision in the bill for the minister to establish exclusion zones for vessels. I am sure we will hear a lot from the member and her partners, who will give us those messages loud and clear. At committee, we will be sure to get that work done on her behalf.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Mr. Speaker, I will be splitting my time with the member for Carlton Trail—Eagle Creek.

One of the most defining moments since I was elected was when the rail lines in my riding, both the CN and CP rail lines, were washed out. There were over 30 wash-outs in the Fraser Canyon. In fact, one day in November two years ago, I was in a meeting with the minister of emergency preparedness. I walked out of that meeting into a media scrum asking about all the latest drama of the Conservative Party of Canada. I nearly lost it, because on that very day when they were asking about the status of a senator in the Conservative caucus, the rail lines in B.C. had been cut off, our highways had been washed out and our entire transportation infrastructure connecting British Columbia to the rest of Canada was not functioning.

We faced some serious challenges in British Columbia, but the press gallery here did not care about that. In fact, it was not even on its radar that British Columbia was cut off. Unfortunately, Bill C-33, written by the public servants in Ottawa under the former minister, falls very short of what we need in British Columbia to ensure Canada has a competitive infrastructure network to ensure we can export and import goods, and so that our marine ports, our inland ports and airports have the infrastructure they need to maintain a well-functioning, competitive economy.

It goes without saying our infrastructure network creates billions of dollars in economic activity every year, 3.6% of Canada's GDP, and employs hundreds of thousands of people. In addition to that, one in five jobs in Canada are directly related to trade. Therefore, those one in five jobs are directly related to Canada's ability to move, store and efficiently transport the goods we produce here and sell abroad and the goods Canadians consume and import from other countries.

Going back to the landslides that washed out the rail infrastructure both for CN and the CP rail lines in Mission—Matsqui—Fraser Canyon, the former minister of transportation started to take very seriously the challenges Canada was facing with supply chains. Good, he did that. He established a task force, to great fanfare, to address some of the pressing issues we had.

I had a chance to look over that report last night. Some of the key recommendations included to unstick the transport supply chain. The report goes into detail about how the Vancouver port authority is ranked right now as one of the worst and inefficient ports in the world. This is largely because of what has already been raised in this debate: we cannot move container traffic out of our ports quickly enough, mainly because we do not have the infrastructure to do so.

The second thing the report called for was to digitize and create an end-to-end supply chain visibility for efficiency, accountability planning and investment in security. I will note this bill does touch upon a few of those things by allowing other ports of entry to go through the CBSA process of marking where our goods are coming and going.

The task force talked about establishing a supply chain office. When I hear that what I hear is the department in Ottawa has not allocated the right number of people in its department to deal with the first problem, which is unsticking the transportation supply chain. What I read in the expert report is that Ottawa has not been doing a good enough job under its current mandate to make sure goods can flow efficiently in Canada.

The fifth point was to engage indigenous groups. This bill does talk a bit about more consultative powers in conjunction with indigenous people. I will note that in my riding one of the largest employers of indigenous people is the rail lines and the Ashcroft Terminal. Yes, there are tensions from time to time, but I do believe the private sector is already taking reconciliation seriously in the number of indigenous people it is hiring, and those jobs go a long way in those rural and remote communities, especially for first nations.

The next recommendation in the report talks about protecting "corridors, border crossings and gateways from disruptions [and interruptions] to ensure unfettered access for commercial transportation modes and continuity of supply chain movement.” Again, I see this recommendation tied to the first one, to unstick the transportation supply chain. We are not doing a good enough job of moving goods efficiently in Canada.

The next recommendation is to engage the U.S., provinces and territories to achieve reciprocal regulations and practices. Again, it is related to the first point, to unstick the transportation supply chain. We are not doing a good enough job of moving goods efficiently in Canada.

The report discusses revising the mandate of the Canadian transportation authority agency. All in all, with regard to the national task force, the former minister communicated very clearly to Canada and to private enterprise that he was going to take action, that we were going to see some major improvements.

It goes without saying that under the previous Conservative government, billions of dollars were invested in western Canada under the Asia-Pacific gateway.

We had Highway 17 created. Some of our rail lines were twinned in certain places. There were new interchanges and overpasses put in to ensure that goods could move smoothly. We had legislation put in place to improve the commercial viability of our exporters and importers, to make sure that Canadians could get the products they needed and vice versa, globally, again, because Canada is a trading nation.

When we turn to the legislation here today, what I see is a lot of new red tape, new authority and a prescriptive, bureaucratic approach that does not address the key issue that the very minister who put this legislation forward wanted to respond to when he established the national supply chain task force in the first place.

Where does that leave us here today? Small businesses across Canada are decrying the increased shipping costs to access the Asia-Pacific gateway. We have had labour disputes at our ports in British Columbia recently. We have thousands upon thousands of businesses that are not working as quickly as they want to because they are constrained by our supply chains, by our rail networks.

What I want to see from this government, as this legislation moves forward, is to look at rewriting the focus of this bill, to ensure that we accomplish a few key things, namely what measurable improvement can we attribute to this legislation to make goods move more efficiently in Canada? What regulatory hurdles that currently exist can be removed to ensure that our small businesses, our exporters and importers, can get the products they need quickly enough?

I know that in Saskatchewan, farmers are constantly scared about the bottlenecks that we face in British Columbia. Saskatchewan produces some of the best pulses in the world, yet it cannot get those products to market quickly enough because our transportation rail infrastructure is not there.

I know that importers of Korean steel in British Columbia are facing much higher freight costs, largely because of some of the issues raised here today. Those products are sitting on a ship off the coast of Vancouver Island because they cannot get a docking quickly enough at the port of Metro Vancouver. These are all things that this legislation can address but it is not there yet.

It goes without saying that I will not be supporting this legislation but I do hope that, at committee stage, the government can do a 180 and refocus its efforts on the recommendations that are well received from the national supply chain task force, to do something that is going to support small businesses, Canada's overall GDP and competitiveness in a very challenging global economic climate right now.

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

Mr. Speaker, in the closing remarks of the member's speech, he said that he will not be supporting the bill, but he hopes that once it gets to committee, the government will accept the recommendations.

My questions are: First, would the member support the bill if it came back with the recommendations, as he indicated? If the answer to that is yes, then why would he not support the bill to get to committee?

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Mr. Speaker, until the major issues are unstuck, as the report from the national task force clearly outlines, I do not think the bill can be supported. The minister had an opportunity when he tabled this legislation to rely upon the expert advice he sought in the first place. It would be irresponsible for me to support this legislation in its current format, because the minister himself did not take the recommendations he sought from an expert panel in the first place.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, I noticed some gaps in the bill. A major one is the lack of acknowledgement of the impact of climate change. The Northwest Passage is opening up and ports in the Arctic are going to become more necessary. I wonder if the member agrees that, when the bill does get to committee, witnesses will need to be called from the Arctic to talk about the importance of ports in the Arctic.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Mr. Speaker, I do believe that we need to hear about the challenges that the Nunavummiut face with respect to port access, and that is a very legitimate concern that I think should be addressed in the legislation. Canada is an Arctic nation, and I hope that we give it the attention it deserves at the committee stage.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I congratulate my colleague on his speech.

Earlier, he talked about red tape, particularly the additional administrative burden. Along with several of my colleagues from the Bloc Québécois, I recently met with representatives from port authorities. They told us that they were consulted on Bill C-33 but nothing from the things they mentioned during consultations was included in this bill. In particular, they asked for more autonomy to ensure their development.

What stands out on reading this bill is that there is more reporting. They are being asked to do even more.

I would like my colleague to tell us, if Bill C-13 is sent for study in committee, whether he would be in favour of having less red tape, particularly for small authorities that that do not always have the capacity to manage all that administrative burden.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Mr. Speaker, as the member mentioned, I also heard the port directors say that their perspective was not included in the bill.

I hope that the government will listen to the private sector and the port directors at committee stage so that we can improve the bill and promote our economy.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, the speech from my hon. colleague for Mission—Matsqui—Fraser Canyon nicely dovetailed with mine on the concern for prairie farmers.

The member mentioned pulse growers in Saskatchewan, but wheat growers in Alberta and barley growers all face the same problem: the massive inefficiencies at the Port of Vancouver where bulk carriers sit idly, which costs everyone. It costs prairie farmers, shippers, customers and our environment in Saanich—Gulf Islands, while these large freighters cool their heels sitting on our coast with free marine parking.

I would like to ask my hon. colleague for his support when my amendments get to committee.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Mr. Speaker, I have not seen the amendments of the member for Saanich—Gulf Islands yet, but I hope in good spirit, if they are there to improve the flow of goods in Canada, they may be something I could support if I were on the transportation committee.

I will note, representing the Ashcroft Terminal, that they had three specific concerns that they wanted to see addressed in the legislation, as follows: the inclusion of intermodal containers in the final arbitration process, the continuation of extended interswitching and the contracting terms of the shipper contracts provided in the CTA, which may hurt shipper remedy rights moving forward.

I just wanted to put those three things on the record as well. I kind of botched the third one, but I see I am out of time.

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

Mr. Speaker, I am thankful for the opportunity to rise and speak to Bill C-33, 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. That is quite a mouthful, but it is simply known by its short title of “Strengthening the Port System and Railway Safety in Canada Act”.

By way of background, in April 2017, the then minister of transport, the hon. Marc Garneau, launched a review of the Railway Safety Act. Then in 2018, he announced a review of Canada port authorities to optimize their role in the transportation system. In late 2022, the previous minister of transport received the Final Report of the National Supply Chain Task Force, 2022, as other members have noted.

Bill C-33 was brought forward in response to the Railway Safety Act review and the ports modernization review. If passed, this proposed legislation would amend several existing laws, as indicated in the long title of the bill.

What has become increasingly obvious is that urgent action is needed to address supply chain congestion. In fact, this is exactly what the Final Report of the National Supply Chain Task Force 2022 called for: urgent action to immediately address supply chain congestion.

It is rather typical of the government to refuse to take action until the issue has reached a crisis point. We have been waiting four years for a plan to modernize our ports, and this bill fails to address the root causes of supply chain congestion.

While this comes as no surprise, it is nonetheless frustrating that the government continues to propose inadequate legislation to address important issues such as this one. Bill C-33 does not offer solutions to long-standing issues between railway shippers and railway companies. Instead, it seemingly indicates that the status quo is just fine.

There is also nothing in the bill to address labour disputes that impact supply chains. While it does clarify that rail blockades are illegal, which was already known, the real issue here is with enforcement. This clarification will do nothing to change the reality of rail blockades. Only the enforcement of our laws will.

Since this bill was tabled, there has been a change of minister. This may be due to a realization by the government that it has failed on this file. It may be an attempt to save face by shuffling ministers around, pretending that the Liberals have recognized their shortcomings and that changes will be made.

However, the pattern has been set. The government will continue to put forward flawed policy and centralize power in Ottawa. Speaking of centralizing power, the ports are supposed to operate at arm's length and work in the best interests of both the national economy and the supply chain. However, the previous minister of transport made it clear in his speech on this bill and while answering a question from my colleague, the member for Chilliwack—Hope, that the government is shortening the arm's length and trying to exercise more control over the ports.

This is an area of deep concern. Ports must have the freedom to operate effectively. This starts with letting them elect their own leadership. The ports do not need Liberal ministers to choose the chairs of local port boards. Ministerial authority to appoint the chair reduces the independence of ports.

This raises the following question: Why does the government believe that it should be the one to appoint the chairs of port authorities? It has not come forward with any reasonable explanation for this measure. Canadians do not need more centralized decision-making in Ottawa.

An unfortunate vice of the government is its hubris, which causes its members to think that they have the Midas touch, despite breaking all that they touch. One only needs to look at how the Prime Minister has run his cabinet for the last eight years, dictating to it and centralizing power in the PMO. This has resulted in disaster after disaster.

Another aspect of this bill that would hamper the work of Canadian ports is the new reporting requirements. These requirements would reduce the efficiency and competitiveness of Canadian ports, and they would be especially burdensome for smaller ports. This is yet another hallmark of the Liberal government: extending its control over larger enterprises and drowning smaller businesses in red tape, reaching the point where they are completely reliant on the government.

Furthermore, overly prescriptive and bureaucratic red tape would increase costs, which would inevitably be passed on to Canadian consumers. Additionally, the new proposed advisory committees could restrict the ability of ports to make decisions that would improve their capacity and efficiency.

Businesses do not need more government regulation; they need more freedom to be able to operate efficiently on their own. They do not need the government to tell them how the business should be run. The people who work in this industry and at these ports know better what they need to do to increase efficiencies. Imposing a one-size-fits-all approach to ports across the country does not take into consideration the unique challenges at different ports.

Decision-making by local port authorities is key to modernizing and improving the efficiency of ports around our country. Again, the additional ministerial powers in this bill would limit local decision-making by port authorities, leading to further delays in modernizing our ports. This, in turn, would reduce their efficiency and impact competitiveness. The result would be higher costs passed on to consumers, contributing further to the cost of living crisis that the government has created in this country.

One piece missing from this bill is the provision of any solutions to long-standing issues between railway shippers and railway companies. This is a crucial part of the supply chain. However, the government has left this out, demonstrating that it has no intent to properly fix the issues that were highlighted in the task force report. This shows a worrying lack of understanding of the important aspects of the supply chain. Instead of taking the opportunity to make changes and address this issue, the government seems to be content to let the opportunity pass as it continues to double down on poor policy.

While Conservatives will always support measures that strengthen our supply chains, we cannot consent to efforts from the Liberal-NDP coalition to centralize power in Ottawa and put ports under the thumbs of Ottawa gatekeepers. Conservatives will not support propping up ineffective gatekeepers, which have only made life more difficult for Canadians. The Liberal-NDP coalition needs to work to remove gatekeepers, not validate them by granting them more power and responsibilities.

Conservatives cannot support an increase in red tape and bureaucracy, especially in our supply chain. While the Liberals want port authorities to be aligned with their objectives, as stated by the previous minister, we believe that ports should operate in the best interests of the national economy and the supply chain.

With a country the size of ours, we need an efficient supply chain in which all parts work well together. I believe that the government should go back to the drawing board and draft a bill, which it could present to this House, that makes good, substantive changes to our supply chain and addresses the concerns that were raised by the task force.

A bill purporting to address supply chain congestion must address all the concerns from stakeholders and remove the “Ottawa knows best” solutions that seem to be a hallmark of the government. This bill does neither.