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

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I really liked the end of my colleague's speech. She referred to the “Ottawa knows best” approach that is often taken. In her speech, she also spoke about the centralizing power that the Liberal-NDP coalition is trying to develop. I completely agree with her.

However, her remarks are somewhat inconsistent with what I heard yesterday. Her leader said that he was going to make infrastructure support for cities conditional on them meeting their housing targets, even though we do not know what those targets are. Is that not an “Ottawa knows best” approach? Is that not just another form of centralization?

I would like my colleague to explain that.

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

Mr. Speaker, I appreciate the observations by my colleague in regard to the Ottawa-knows-best approach that the government tends to take. I agree with him that we see more of the same in this bill.

I know that the final report of the national supply chain task force called for urgent action to immediately address supply chain congestion, and I am sure he would agree with me that the bill that has been tabled in the House does absolutely nothing to address the concerns of the task force. Again, additional ministerial powers would simply limit decision-making by local port authorities, which I know members of his caucus are very concerned about, and would lead to further delays in modernizing our ports all across this country.

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

Mr. Speaker, in her speech, my colleague talked about something that is worth elaborating on so that we can understand her position. She has an opportunity to illustrate her point to those watching us.

Even though there is not much to Bill C‑33, there is still something that bothers me, specifically the minister's will to have control over the appointment of board chairs of ports across Canada, in other words deciding who goes where. Worse yet, we know that when Liberal ministers do this sort of thing, the people who are selected are not accountable to the public. Their objective is not to develop the ports, but to please the minister. Most of the time, the people who are chosen are friends of the minister or friends of the Liberal Party.

I would like to know whether my colleague thinks that this aspect of the bill is an improvement.

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

Mr. Speaker, I had the opportunity to listen in on the debate on this bill. I would suggest that another hallmark is that the current government is well known for appointing its friends and Liberal supporters, not only to benefit itself when it comes to decisions made by decision-making bodies but also to line the pockets of Liberal insiders and friends. I absolutely do not believe they have done anything to address that status quo in this bill.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, every morning past my little house in northern Ontario, we hear the big rumbling of the train. I always love that sound. My family worked the trains, and when I hear that train whistle in the distance, I feel good. However, that train carries huge tankers of sulfuric acid from the smelter in Rouyn-Noranda, and it goes past my house.

Every morning as I hear that rumble, I want to know that those smelter cars are on tracks that are safe and that our workers are able to make sure they can look after them, because a derailment of that nature would be catastrophic in our region of the north where we have fragile lake systems. It would be catastrophic anywhere in this country, particularly going through many of the cities and communities across the country. We saw the disaster at Lac-Mégantic where so many people died because of a lack of regulation.

I want to ask my colleague about the importance of this. We have been told self-regulation works. It does not. We need to see strong measures to make sure that what we are transporting across this country is transported safely, for the workers, for the communities and for the environment. There is the necessity of making sure the federal government lives up to its responsibility of ensuring that is done.

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

Mr. Speaker, Conservatives understand that not only is an efficient transportation system key to ensuring reliable supply chains, but also a safe transportation system, including a safe rail transportation system, is key. We need reliable supply chains if we want to grow Canada's economy. We support measures that strengthen our supply chains, and I believe safety is one of those measures.

[Parm Bains, Liberal, Steveston—Richmond East, BC]

Mr. Speaker, I am going to be speaking about strengthening the board governance of Canada's strategic ports. My riding of Steveston—Richmond East is home to all of the above: rail, air and sea. It is an island city by nature, one which I look forward to the Speaker's visiting sometime.

The governance model that underpins Canada's port authorities was designed to establish responsible stewardship of these key strategic assets and to position them as commercially oriented actors that can act credibly in the marketplace. The day-to-day operations of these port authorities are directed by independent boards of directors that are responsible for ensuring that port planning, decisions and operations are made firmly within the public interest. In this context, the Minister of Transport retains the critical role of setting the strategic direction that guides the work of these boards.

For 20 years, this governance model has served Canada well. It has provided Canadians with world-class services while ensuring that capacity grew in support of Canada's economy in a gradual and financially sustainable manner. At the same time, Canada and the world have evolved. Our trade with the world is growing and is increasingly diversified. The shipping lines that support the trade have consolidated and are building even bigger ships, and the logistical connections between transportation services and shippers are growing in intensity and technological innovation. These developments underline the importance of ensuring that our ports can adapt to serve our national supply chains and global connections to the world.

At the same time, it is important to recognize that ports undertake their national mandates in very local contexts. As Canada's ports have grown, so too has public interest in their operations. In the eyes of indigenous and local communities, port governance is not only a question of orchestrating safe marine trade but is also now, more than ever, intertwined with environmental sustainability and our important national agenda for reconciliation. Simply put, Canada port authorities are being called upon to be more adaptable and responsive to an increasingly complex operating context. Things have changed since they were created over 20 years ago.

At the centre of government's approach to ensuring that port governance keeps pace are three important objectives: ensuring that port boards have the right people in the right positions to manage these strategic assets, structuring ongoing engagement with indigenous and local communities to better inform decision-making, and enhancing reporting to enable better public engagement, accountability and oversight. I will speak to these three objectives in turn.

Having the right composition and people in place on boards of directors is key to supporting enhanced board performance. This is why the government is proposing to add an additional prairie province director on the boards of the Thunder Bay and Prince Rupert port authorities in recognition of the role these ports play in the export of prairie commodities. In addition, greater flexibility is being proposed to enable more than one municipal directorship in instances where a port is located in more than one municipality. Recognizing board leadership of these strategic assets is critical, and Bill C-33 proposes to enable the Minister of Transport to designate the board chair from among and in consultation with the directors.

With respect to engagement with indigenous and local communities, this bill proposes to establishment structured mechanisms to enable more meaningful and ongoing dialogue. The port modernization review undertook extensive stakeholder consultations. During these engagements, it was noted that the depth and quality of relationships among port authorities, indigenous and local communities can vary. Such relationships are key to aligning expectations and goals and to informing port decisions that have economic, environmental and social implications. As a result, this bill proposes the establishment of three separate advisory committees at the port management level for engaging with indigenous nations, local communities and local governments. These committees would enable more meaningful and structured opportunities for engagement.

The third key governance objective this bill seeks to advance is increased reporting as a means of promoting transparency in port planning and operations, including environmental performance. Bill C-33 would reinforce port authorities' due diligence in planning by requiring them to provide land use plans on a five-year cycle. This would facilitate input from local communities and stakeholders in the port planning process. In addition, the proposed measures would modernize financial reporting and disclosure requirements that align with internationally recognized standards. Bill C-33 would further require port authorities to publicly report on greenhouse emissions and establish climate adaptation plans. These measures would position ports to be leaders in managing climate risks. Importantly, these new environmental reporting requirements would align with the government's ambitious climate change agenda and would be consistent with the requirements for other public institutions.

To promote ongoing improvements to port governance aimed at ensuring that these entities remain best in class, Bill C-33 would require port authorities to undergo a triennial assessment of board governance practices. This is an important best practice in corporate governance that befits assets of such national importance. These assessments would evaluate the effectiveness of and adherence to governance practices, including those related to record-keeping practices, the use of skills matrices and the promotion of diversity in recruitment. The results of these assessments would be shared with Transport Canada to inform future policies that help port governance remain best in class. Taken together, these important governance reforms would establish more proficient, transparent and accountable port authority boards consistent with the important role played by ports as instruments of public policy.

These measures build on the successful foundation established in the 1990s, when the Canada Marine Act was first enacted. They would update port governance to modern realities and serve to better align national and local realities, and they would do so by maintaining ports that are nimble market actors and can better support Canada's connections to the world.

We are pleased to advance these reforms. Bill C-33 would fundamentally reposition Canada's port authorities and maintain these world-class facilities that underpin our critical supply chains and national economy.

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

Mr. Speaker, I want to repeat the question I asked this morning because I did not get an answer.

I have been listening to the debate since this morning, and I am not sure what to make of it. We are dealing with a bit of a catch-all bill on ports and railway companies. However, the earth is burning right now, with forest fires raging everywhere. We have never been so ineffectual in the fight against climate change. We also have a housing crisis, and 3.5 million housing units need to be built in Canada. It is absolutely ridiculous. In 2022, Canada spent $50 billion on the oil industry. Meanwhile, there are 10,000 homeless people in Quebec.

Is Bill C-33 the only thing the Liberal government has to offer in response to all the crises erupting across the country?

[Parm Bains, Liberal, Steveston—Richmond East, BC]

Mr. Speaker, there is quite a bit in there, and yes, it is important. I talked about Steveston—Richmond East, where I am from, which is surrounded by water and has all the supply chains, being the gateway city that it is.

We do take all of those things into account, and we have seen the leadership of the boards and the consultation that I spoke about, which are needed in order to make all of these decisions. For example, the Port of Vancouver takes into account marine animals and the sounds coming from the ports. These kinds of improvements are going to continue to be made, and this bill reflects all of those decisions.

[Bonita Zarrillo, NDP, Port Moody—Coquitlam, BC]

Mr. Speaker, I am going to follow up on comments made by my colleague.

I cannot believe that this speech was about the board and the focus of the board. Right now, what we are in need of is some management of the traffic in the port. The operations in the water need management. I was out on a port tour this summer in Vancouver, and it is the Wild West of port traffic. No one body has authority over that, and it certainly is not the boards or elected municipal politicians who are going to manage it.

This is a serious problem. This is a safety, transparency and equity problem. How is this bill going to increase equity, increase safety and improve governance at the ports?

[Parm Bains, Liberal, Steveston—Richmond East, BC]

Mr. Speaker, I am a little surprised. This is about collaborating, listening to local communities and understanding the unique needs they have. The speech was about consultation, taking advice and listening to communities and what their needs are to make these decisions. They are important decisions.

I do not know why the member would not want to work with the community that is so important to the areas we represent.

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

Mr. Speaker, I listened to my Liberal colleague's speech earlier. Obviously, words matter. One part of his speech caught my attention, and I would like to go back to it.

He said that one of the bill's objectives is to ensure that port boards have the right people, that the right people are sitting at the table. Who are these right people? Does he mean to say that the people there now are not the right people? Does he mean that the wrong people were appointed in the past?

The government actually has the authority to make numerous appointments to the boards of directors. In fact, this bill specifically discusses the appointment of port board chairs.

In the minds of members on the other side, does “the right people” mean Liberal Party supporters?

[Parm Bains, Liberal, Steveston—Richmond East, BC]

Mr. Speaker, the work we do here is for the people. It is about the people. We need to listen and collaborate.

In no way does the bill say they have to be from one party or another. What I said was they need to represent the communities that are impacted by the supply chain. We saw the negative impacts of this during COVID. We need to see to the needs of the people who are operating on these corridors and take their advice. We need experts from the industries. Those are the people we need to listen to.

[Rachael Thomas, Conservative, Lethbridge, AB]

Mr. Speaker, Canada is a fantastic home. Our country spans more than half of the northern hemisphere and crosses more than six time zones. It is quite incredible. We are the second-largest country by way of geographical size and have the most extensive coastline, spanning more than 240,000 kilometres. It is amazing.

Our home is vast, and the early years of Confederation were spent ensuring that our nation would be built in such a way that it would allow all of this land to be united. From coast to coast, Canadians built infrastructure that was necessary to move goods from one end of our country to the other and to equip themselves to be able to send our goods across the water to other countries. Rail, of course, played an incredible role in this and continues to play a role in our country's ability to get trade goods to market and within the confines of own country.

The project of our very first prime minister, Sir John A. Macdonald, was a masterpiece of sorts. It was the Canadian Pacific Railway, which was meant to unite us as a nation. It was meant to serve our economic well-being as a country, and it did just that. In fact, it was so visionary that it continues to do just that.

Rail and national infrastructure were pivotal to how our nation was built, and we remain united today. As these means of transport and infrastructure were set up, both on the national and subnational levels, our economy grew and we fashioned ourselves as a nation committed to trading. To this day, we are an export nation. It keeps us strong, but only as much as our infrastructure is strong.

Canada is blessed with a plethora of natural resources, abundant land and incredibly hard-working people who will get the job done, that is, when the government frees them up to do so. Canadians work hard. They work hard between every coast in this country to build, grow, harvest, mine and collect the fruits of their labour and then get it to market. Our domestic economy feeds and fuels the world. In fact, there is such great capacity in this regard that I truly wish the government would get out of the way and allow us to excel.

Nevertheless, our rails and ports provide the means for our industries to deliver what Canada has to offer to the world and to bring to Canada what the world has to offer to us. The infrastructure across our great land provides the opportunity for every worker, farmer, business owner and their family to be sustained. It allows them to get the goods they need for their households and their businesses.

Rail is literally in the centre of my home city of Lethbridge. We are home to the High Level Bridge, which spans the Oldman River. It is the largest railroad structure in Canada and the longest trestle bridge in the world. It is at the core of our centre.

Canada's railways and ports are more than just the infrastructure that gets stuff from point A to point B. Infrastructure is a piece of the Canadian nation-building legacy, and it is the vital artery of our economy, which is not just our present but also our future. To believe in our infrastructure and keeping it strong is to believe in the Canadian people, our country and its vibrancy going forward, because without a thriving economy we cannot have a thriving people. Without infrastructure to get product to market, we cannot have a thriving economy. Therefore, infrastructure is essential to our economy, which is essential to the strength of our people and this dear country we love.

Let me be clear. Our infrastructure in this country has its fair challenges, in particular infrastructure around transportation, so I understand the desire to address those challenges, fix problems and look for greater efficiencies and greater effectiveness. However, this bill does not do that. This bill does not answer the call that was put out for meaningful change. Overall, this bill is an abysmal failure in that regard.

Bill C-33 is a failed attempt to strengthen the port system and railway safety. It amends several acts in order to do that. It was drafted in response to the Railway Safety Act review and the ports modernization review.

It was delivered with promises to improve affordability, to improve safety and to improve efficiency, and it was delivered by a minister who is no longer functioning in that capacity. I wonder if that is perhaps a bit symbolic of the confidence we should have in the bill. More than that, the draft of the bill, the content of the bill, speaks for itself in terms of how much confidence we should have in it.

Bill C-33 fails in so many ways to address the issues that are at play. For starters, it fails to address the urgent need to alleviate supply chain congestion. This was outlined in the final report put forward by the national supply chain task force. Stakeholders have said that there is nothing in this bill that would improve supply chain efficiencies. For example, there is nothing in this bill to address labour disputes that impact supply chains.

Furthermore, the bill does not solve long-standing issues between railway shippers and railway companies. There is also nothing in the bill to address the Port of Vancouver's inability to load grain in the rain. Folks, let us be clear here: It is Vancouver; it rains all the time. If we cannot load in the rain, when are we loading? If we are not loading, how are we getting product to market? Wait. We are not. That is why we basically have a congested parking lot known as the Port of Vancouver.

It is a problem. It is driving up the cost of goods and is making it so that some of our store shelves do not have products on them to begin with. This bill had the opportunity to address some of these key issues, but it failed.

I hear all the time from those in my riding about their frustrations concerning these things. They simply want to get their product to market in a reasonable fashion. Farmers want to get their grain onto trains so those trains can go to ports and those ports can let others take the commodity across the ocean. That is how this needs to work. That was the potential of this bill. It had the potential to address these issues.

It is a failure in and of itself that it did not. However, on top of that, the bill decided to heap on even more bureaucracy and more red tape to make things even more difficult. Not only did it fail to solve the issue, but it actually creates more issues. There is a good piece of legislation for everyone.

As I mentioned, our port is already a mess, but the government has decided to apply a bit more red tape to see how much more of a mess it can create, so out comes Bill C-33. In this bill, the government decided to implement a new advisory committee. No doubt this could restrict ports in making decisions to improve their capacity and efficiency. That is a problem.

Bill C-33 would also increase the ministerial authority to appoint the chair of port authorities, therefore reducing the independence of our ports, which are supposed to operate at arm's length from the government. Additional ministerial powers would limit local decision-making and would lead to further delays in the modernization of our ports. In the end, the overly prescriptive and bureaucratic red tape would increase costs, which would then be passed on to consumers, consumers who are already paying through the roof due to the government's inflationary spending and carbon tax.

Clarifying that the railway blockade is illegal certainly will not reduce disruption. Imposing a one-size-fits-all approach to ports and to railways across the country does not recognize the unique challenges faced in this vast nation. The entire bill is symbolic of a government that is incredibly out of touch and not willing to listen to the true needs of this nation. For this reason, I will not be voting in favour of the bill, and I would urge the House to act in the same way.

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

Mr. Speaker, there is one thing I did not get a chance to bring up in my speech, but my colleague from Rimouski-Neigette—Témiscouata—Les Basques mentioned it. The Conservatives are criticizing the fact that the ports will have additional red tape imposed on them. That is a concern we share.

We agree with the Conservatives that the bill does not meet the expectations of port representatives. The representatives made certain requests, but none of them are included in the bill. That said, we do see value in some of the additional accountability measures, such as the idea of setting up advisory committees to forge links with cities, local residents and indigenous communities and to help develop climate change adaptation plans.

We have a question, however. The legislation imposes a one-size-fits-all approach. The same rule applies to everyone. The problem is that some ports, like the ones in Vancouver and Montreal, are bigger, while others, like the one in Saguenay, are quite a bit smaller. I am more familiar with Quebec than I am with Canada, but it seems to me that there must be small ports in other areas of Canada that might have more trouble than the others in dealing with these rules.

We would like to propose an asymmetrical approach so that the smaller ports are not forced to meet certain requirements, such as filing quarterly financial statements. Preparing those statements takes a lot of time, energy, financial resources and accounting work that could be put to better use in these smaller ports. The federal government does not need quarterly financial statements for small ports.