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

Sponsor

Omar Alghabra  Liberal

Status

Report stage (House), as of Sept. 20, 2024

Subscribe to a feed (what's a feed?) of speeches and votes in the House related to Bill C-33.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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 .

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Sept. 26, 2023 Passed 2nd reading of 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
Sept. 26, 2023 Failed 2nd reading of 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 (reasoned amendment)
June 12, 2023 Passed Time allocation for 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

Mark Strahl Conservative Chilliwack—Hope, BC

Thank you very much, Mr. Chair.

Thank you to the witnesses, many of whom are finding out about our late committee slot here. It's good to see you participating late into the evening. We appreciate it.

Certainly, my takeaway from the testimony that we've heard so far this evening is that the government actually did a pretty poor job of consulting with the most affected individuals and organizations when they were developing this legislation. It was billed as a great panacea to supply chain problems. It was going to revolutionize the way the ports operated. What we're hearing, and what we've heard from every witness so far, is that this misses the mark. We heard that, in fact, this will make things more difficult and more politicized instead of streamlining and making our ports more effective and efficient.

I want to start with Mr. Gooch.

I was interested to hear both you and Mr. Hamilton indicate that the Minister of Transport and his office have already indicated to you.... He has yet to appear to talk to parliamentarians about Bill C-33, but we are hearing from witness testimony here today that they're already willing to make amendments to the bill. I assume they're responding to port authority concerns about the prescriptive nature of.... I think you mentioned it. Can you go a little further into that?

This is the first I'm hearing about it, that the Minister of Transport and his officials.... We had officials. They didn't make this known to our committee at the last meeting either.

Could you further enlighten us on what these changes are that the minister's office has indicated they're willing to make? Quite frankly, it's news to me and members of this committee.

Jacques Paquin Executive Vice-President, Trois-Rivières Port Authority

Good evening everyone, and thank you for this opportunity to speak to you on behalf of the Trois-Rivières Port Authority.

The Port of Trois-Rivières specializes in solid and liquid bulk and general cargo. Strategically located midway between Montreal and Quebec City on the St. Lawrence River, it serves the needs of many key sectors of the Canadian economy, including manufacturing, agri-food, mining and energy.

We were eager to learn about Bill C-33 when it was tabled. Although the Canada Marine Act, 1998, has created a solid network of Canadian port authorities, improvements are needed to ensure that they can keep pace with new economic, social and environmental realities. In this sense, we applaud this step taken by the government.

However, we must respectfully draw your attention to the fact that the proposed overhaul would not make it possible to achieve this objective. It would also not create the conditions necessary to better equip the Port of Trois-Rivières for current and future challenges. On the contrary, Bill C-33 and its extension, Bill C‑52, restrict the Trois-Rivières Port Authority's ability to fulfil the mission entrusted to it by the Canada Marine Act.

These bills increase the burden of accountability, resulting in substantial costs, particularly for medium-sized ports. Bill C‑33 imposes a model for consultation, but each port must have the latitude to adopt consultation mechanisms adapted to its unique environment and organization. The bill introduces changes to the appointment of board members that will weaken the governance of the Port of Trois-Rivières. The Canada Marine Act is based on the user pay principle, yet these bills will erode our ability to apply this principle. The presentations by my colleagues Ian Hamilton and Daniel-Robert Gooch speak volumes about the shortcomings of these bills.

For my part, I will be focusing on how important it is for the ports to work more closely together. Although this is a clearly stated government objective, there are absolutely no measures in Bill C‑33 to encourage these closer ties. And yet, increasing Canada's competitiveness does require greater co‑operation between ports, particularly for the St. Lawrence ports that depend on the river to reach overseas markets. None of the St. Lawrence ports alone can ensure the competitiveness of this crucial transportation axis for the Canadian economy. They are interdependent.

For Canada, the adoption of a new governance model based on collaboration would make it possible to improve administrative and operational efficiency for the benefit of all port customers. Concerted strategic planning would enhance what the port network could offer, optimize infrastructure, and expand the range of services, resulting in better positioning in both markets and supply chains. It would also make investment projects more attractive and less risky for lenders. This co‑operation could even extend to infrastructure operation and joint business development. Such an approach is fully aligned with the federal concept of trade corridors. The Government of Canada must create the right conditions for such a rapprochement, by providing clear mechanisms in the law.

Dear committee members, the Port of Trois-Rivières has been firmly rooted in its community for 141 years. The port authority's mission is to ensure that the objectives of the Canada Marine Act are met through sound management of the public infrastructure under its responsibility, while promoting commercial activity and regional and national development. If there's one thing we agree on, it's that the Canada Marine Act is in need of significant updating. Unfortunately, we feel that the proposed changes do not provide the leverage we need to accomplish our mission in line with the new reality in which we are evolving.

In creating the Canadian port authorities, the government gave itself autonomous management structures to administer its strategic ports. The Canadian port authorities are expected to operate these facilities for the benefit of the Canadian economy, to the highest environmental standards, and to be financially self-sufficient. This is what the board and management of the Port of Trois-Rivières strive to achieve every day. The last thing we need is a framework that will hinder our efforts rather than support them.

In closing, I want you to know that we share the government's objectives for modernizing the Canada Marine Act, and remain openly willing to collaborate on improving Bill C‑33.

Thank you for your attention.

Amy Nugent Associate Director, Marine Climate Action, Oceans North

Thank you.

Good evening, members, and thanks for this opportunity.

My name is Amy Nugent. I'm the associate director for marine climate action with Oceans North.

Oceans North is a Canadian charitable organization and world-leading ENGO that supports marine conservation and climate action in partnership with indigenous communities and coastal communities.

I want to focus my comments today on those sections of Bill C-33 that amend the Canada Marine Act.

We would urge members to pass Bill C-33 this year. We recognize and agree with other comments that the amendments are not perfect but that they are important. With respect to climate change, we can't afford to delay.

We urge three further steps to support Bill C-33 during the course of this presentation.

One is to include the Canadian Net-Zero Emissions Accountability Act explicitly in subsection 43(1) of the Canada Marine Act.

The second is that the Government of Canada should enable ports to play a role up and and down the supply chain by including decarbonization as a key criterion of land use and capital planning.

Three is that the Government of Canada should develop competitiveness incentives for the maritime sector, those that are competitive with the Inflation Reduction Act in the United States and competitive with other Canadian sectors like the automotive sector and oil and gas.

This past summer, while many Canadian cities were blanketed in smoke, the International Maritime Organization, IMO, set new targets: a 10% clean-fuel standard and a 30% GHG reduction target by 2030. These are important signals that our industry will need to fully decarbonize by 2050. Canada's formal submission to the IMO in fact advocated for even more ambitious targets, but we do not see, and we need to see, this ambition reflected in domestic policies and supports.

We echo the comments this evening and otherwise made that ports cannot be expected to be policy or greenhouse gas emissions experts, but they do have a critical role to play. Ports across the country support some of the communities most exposed to climate risk, of course, and as a linchpin in our energy and economic supply chains, ports can also support the uptake of zero-emission fuels and new technologies.

In the “Green Shipping Corridors” report that Oceans North completed with several partners, including the Vancouver Maritime Centre for Climate, we found that each port—and this is no news to people here—has a very distinct energy context and market demands. It is not only worthwhile but it is a requirement of a zero-emission future that we provide flexible pathways on how ports get there.

In terms of Bill C-33's specific requirements for climate plans, both mitigation and adaptation, we are, as I have said, supportive. GHG reduction targets, climate adaptation plans and progress reporting on actions are all necessary. Under Bill C-33, these are stronger than existing green marine voluntary measures, but it is impractical and unnecessary to ask each of Canada's 17 port authorities to establish unique GHG targets and complementary actions. Targets are already established under Canadian law. We need to use these targets.

Transport Canada should create guidance materials and what it has committed to in terms of a marine climate action plan and do so quickly. Ports can both be required and supported to comply.

We also recommend that, under subsection 28(2) of the act, a third section be added to enable ports to engage in energy planning. Our previous two speakers have talked about the role of ports in decarbonization. Let's enable that energy planning with municipalities to ensure that these ports can meet the energy demand of and at ports as a priority.

In terms of capital investment, we also, like we've heard tonight, heard from port authorities that access to capital is a barrier to decarbonizing, and we support increased financial flexibility as well as other borrowing measures that port authorities like Hamilton-Oshawa have suggested here tonight.

Bill C-33 recognizes a role for the Canada Infrastructure Bank in terms of public financing and equity, but that could be, in practice, strengthened. Oceans North recommends, analogous to other sectors, that the Canada Infrastructure Bank establish a decarbonizing ports investment and infrastructure advisory group within the bank, which would have a mandate to assist with commercial contracts for major clean energy and infrastructure projects. As you know, the Canada Infrastructure Bank also leverages private capital.

Oceans North also recommends that the Government of Canada act aggressively—

Ian Hamilton President and Chief Executive Officer, Hamilton-Oshawa Port Authority

Thank you very much.

Good evening to the members of the committee.

I'm pleased to be here both as the president and CEO of the Hamilton-Oshawa Port Authority and as the incoming chair of the Association of Canadian Port Authorities. Many of my messages will be reconfirming the information you just heard from Daniel.

Canadian port authorities are unique entities within the federal family. Known as government business enterprises, we are self-sustaining for-profits with a mandate to reinvest our earnings and to operate in the public interest by enabling industry and trade.

On behalf of HOPA's team of 65 staff and on behalf of my colleagues across the country, we are very proud of the work the Canadian port authorities do and the positive impact we have on our communities, Canadian trade and the economy.

The ports modernization review was an effort to build on that success and to position ports for the future. We believe the policy intent was very well-intentioned, with goals that included optimizing supply chain and assets, fostering collaboration between supply chain actors, and enhancing governance and financial management.

We have Bill C-33 before us. Upon review, it does contain some improvements, but in many ways, Bill C-33 doesn't quite deliver on the laudable original intent.

First, here are the good things.

Bill C-33 includes measures to allow for the development of inland ports. This is important so that many ports whose supply chains are multimodal can extend into the industrial zones.

It also provides for ports to play a more active role in vessel traffic management. Our harbourmasters are experts at managing the safety, security and efficiency of harbour operations. These changes are very positive.

The bill does have some room for improvement.

We understand from our interactions with Transport Canada that there was an intent to enable ports to collaborate more closely in order to develop streamlined and efficient supply chains. This would be especially valuable in the Great Lakes context, where ports serve in a highly integrated economic region.

For example, HOPA is building an integrated port network on the Great Lakes. HOPA itself is only four years old, following the amalgamation of Hamilton and Oshawa, but we are already seeing the importance of an integrated approach as we can make smarter decisions about infrastructure investment within southern Ontario.

We don't believe that Bill C-33 actually offers any additional tools for collaborating with our port colleagues. That's a shame, because we think there are abundant reasons for us to do so.

We understand that there was a policy intent to ensure that ports were responsive to community and stakeholder interests, but the way that intent was interpreted in the bill was to establish a plethora of one-size-fits-all committees, diverting energy away from the myriad creative ways ports engage with their communities today.

We understand from Transport Canada that the government is looking at modifying the prescriptiveness of the advisory committees as well as quarterly financial reporting requirements, and we very much appreciate those initiatives.

However, our greatest concern is the bill's failure to modernize ports' financial framework. We understand that the intent of the ports modernization review was to ensure that the ports would have the optimal financial capacity to support the Canadian economy and facilitate trade.

Yet again, Bill C-33 does not actually address the fact that Canadian ports today are held back by strict borrowing limits, much lower than those of private companies or even airport authorities of a similar size. As a result, we are not able to realize the national critical infrastructure projects outlined in our business plans.

At this moment, HOPA itself has a proposal before Transport Canada to increase our borrowing limit to align with our capital plan. We are almost a year in, and at this point it is not clear when we'll ever get a reply or when the study will be completed.

Bill C-33 proposes to change the process, to initiate borrowing limit reviews on a three-year cycle, but there's no prescriptiveness around how long that process will take or what criteria it will use to determine those borrowing limits.

It should be easier as well to establish joint ventures and to enter into public-private partnerships and equity partnerships with investors, indigenous groups and others.

Following on Mr. Gooch's remarks, we disagree with the proposal in clause 105 to allow the minister to designate an authority's board chair. We believe there is no benefit to politicizing the chair selection process. Currently, the board chair is elected by the board members themselves, consistent with good governance practices.

Members of the committee, I've outlined some of the reactions to the bill, and you have received detailed submissions from ACPA and others about specific sections, so I'll close with some final, general comments.

As you are reviewing the bill, I would encourage you to remember that as self-funded government business enterprises and the stewards of working waterfronts in the communities where we live and work, port authorities are delivering great outcomes.

I would ask you to consider, for each of the bill's provisions, whether this helps port authorities do what they do best, facilitate trade and support Canadian industry while protecting the environment and the public good, or are we attempting to micromanage these highly diverse, locally grounded organizations?

If you want to help port authorities do more of what matters, I recommend focusing on the following: consider financial flexibility so port authorities can enter into new business relationships and make the necessary investments in national critical infrastructure; enable a market-driven borrowing framework; maintain our flexibility to operate with a business mindset and be responsive to our stakeholders—and please don't politicize our boards.

These are the things that will enable port authorities to continue delivering great results for Canada and Canadians.

Thank you.

Daniel-Robert Gooch President and Chief Executive Officer, Association of Canadian Port Authorities

Thank you, and good evening.

Committee members, port authority colleagues, good evening.

Thank you for this opportunity to share our views on Bill C‑33. Canada's port authorities have long awaited modernization of the legislative framework they operate within, as it represents the single most important means of addressing Canada's impending and tremendous infrastructure gap. As announced last year in the final report of the National Supply Chain Task Force, this gap is expected to reach an estimated $110 billion over the next 50 years.

From a supply chain resilience perspective, Canada's ports must maintain existing infrastructure, support trade growth and be leaders in decarbonization of marine—already the most energy efficient means of moving goods.

Bill C-33 includes measures to allow for the development of inland ports. It creates the opportunities for ports to play more active roles in traffic management, and it clarifies that terminals situated within a port are works for the general advantage of Canada. These are all positives.

Bill C-33 also sends clear signals that the federal government prioritizes better engagement with communities and indigenous groups, with users, and a more active role in decarbonization.

Canada's port authorities are fully aligned with these priorities, but it will require significant infrastructure investment. This is where we have some concerns not only with Bill C-33, but also with Bill C-52, but that's for another day.

The sum of $110 billion in infrastructure at seaports over 50 years is a lot of money. Canada's port authorities have sought greater financial flexibility so that ports themselves would have the capacity to be nimbler in working with private investors and lenders in major infrastructure projects.

Ports are held back by strict borrowing limits, which is much lower than what private companies or even airport authorities of similar size can borrow, so projects are not funded at the needed level in a timely manner. Amending borrowing limits must be simpler, quicker and dynamic to changing conditions.

Unfortunately, it is not clear if the borrowing limit review process envisioned by Bill C-33 will be an improvement over the process in place today, which is time-consuming and lengthy. We're still seeking clarity on how this borrowing limit review will work and how it would be an improvement.

As members of the federal family, port authorities should be able to work much more closely with officials in Transport, Finance and Treasury Board, as appropriate, on things like this. It is our sincere hope that we will be brought into the room to help them develop this framework with the added insight of experienced port authority leaders. Literally billions of dollars are at stake, and we must get this right the first time.

We ask that this committee consider a motion as part of this review that port authority reps should be an integral part of the design of how borrowing limits would be reviewed if this bill passes.

Switching gears to governance, one area of grave concern to Canada's port authorities is the potential politicization of port authority boards through two clauses in the bill, both of which we would recommend that this committee remove. Comments from transport and from labour leaders on Monday reinforced our concerns on these proposed reforms.

Clause 104 of Bill C-33 changes the eligibility of port board directors to allow for active provincial or municipal employees to serve as directors. While the text does speak to barring those whose employment would result in a conflict of interest, we believe such a conflict would exist for virtually any active employee because of where their paycheques come from. While the risk could, in theory, be mitigated by strong guidelines on what constitutes a conflict, such guidelines would not have the force of law and could be changed or ignored by a future government. The only rationale we've been given for this amendment is that it would open eligibility for more candidates. That has never been a problem for our port authorities. Their biggest governance issue is having the qualified, user-recommended director candidates they put forward appointed in a timely manner.

Our biggest concern is with the ministerial designation of the port authority board chair in clause 105. We worked with the Institute on Governance to analyze the bill, and they found that this would be “significantly disempowering to the board given the strategic role of the chair as interlocutor with the CEO and the government”.

It must be remembered that the federal government created the Canada Marine Act and the Canadian port authorities back in the late 1990s for very good reasons: to make ports nimbler, financially self-sufficient and more responsive to user and community. These were worthy goals that the federal government at the time recognized it could not achieve when it was running the airports. Why would we want to undo that now?

We understand from the Minister of Transport's office that the government is willing to make two changes to the bill that we had requested: softening the prescriptiveness of advisory committee language so that it no longer requires three specific committees, and extending the deadline for quarterly reporting from 60 days to 90 days.

We appreciate the minister's willingness to make those changes, but we also recommend that clauses 104 and 105 of the bill be removed. They risk politicizing port authorities and undoing the gains government and ports achieved together since the Canada Marine Act was first put in place in 1998.

Thank you very much.

The Chair Liberal Peter Schiefke

I call this meeting to order.

Welcome to meeting number 82 of the House of Commons Standing Committee on Transport, Infrastructure and Communities.

Pursuant to the order of reference on Tuesday, September 26, 2023, the committee is meeting to discuss 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.

Today's meeting is taking place in a hybrid format pursuant to the House order of Thursday, June 23, 2022. Members are attending in person in the room, and remotely using the Zoom application.

I want to inform all members of the committee that our witnesses appearing virtually have been sound tested for today's meeting and have all passed the test.

Colleagues, appearing before us this evening in person from the Association of Canadian Port Authorities, we have Daniel-Robert Gooch, president and chief executive officer. Welcome.

From the Hamilton-Oshawa Port Authority, we have by video conference Ian Hamilton, president and chief executive officer. Welcome.

From Oceans North, we have by video conference Amy Nugent, associate director, marine climate action. Welcome.

We also have with us today Mr. Jacques Paquin, executive vice-president of the Trois-Rivières Port Authority. Welcome, Mr. Paquin.

I will now turn it over to Mr. Gooch for five minutes for opening remarks.

Annie Koutrakis Liberal Vimy, QC

My next question is on this bill.

Bill C-33 contains a few measures to help with the coordination and logistics at Canada's ports. Do you think these changes will make it easier for employees to do their jobs, or do you foresee it adding hurdles or blockages to the fluidity or resilience of our supply chain?

Annie Koutrakis Liberal Vimy, QC

Thank you very much, Mr. Chair.

I also thank our friends who are testifying here this afternoon.

I think it's really important to clarify something, and that it be on the record: strikes are legal in Canada. Passing Bill C‑33 won't change that. We've already heard the answer from Mr. Bijimine, the Transport Canada representative. I think we really need to be cautious and not let an opinion that isn't really the right one pass.

Mr. Ashton and Mr. Murray, how would you describe your relationship with the port authorities? Do you feel that they listen to workers, or do you find it difficult to make yourselves heard? It's related to what I said at the beginning. I'd like you to help me understand better.

Joyce Murray Liberal Vancouver Quadra, BC

It's a balance that has to be struck. I was trying to get a sense of your view on that balance, but because time is tight, I will go to another question.

This has to do with the transportation of dangerous goods regime. In metro Vancouver and places like Surrey and White Rock, for example, I know there has been concern in the past with the transportation of dangerous goods. Bill C-33 makes changes to the regime with the establishment of penalties and other changes.

From your perspective, are these changes ones that you and your members support? Are there other things that you think should be done?

Dan Muys Conservative Flamborough—Glanbrook, ON

Bill C-33 gives the minister too much say.

Dan Muys Conservative Flamborough—Glanbrook, ON

Overall, in your testimony, you've pointed out a number of deficiencies in Bill C-33. Would you agree that Bill C-33 is a fundamentally flawed piece of legislation?

Perhaps both of you could comment on that.

Robert Ashton President, International Longshore and Warehouse Union Canada

Thank you.

My name is Rob Ashton. I'm the national president for the International Longshore and Warehouse Union Canada, which represents approximately 8,000 longshore workers who work in the ports of Canada's Pacific coast, including the Vancouver Fraser, Prince Rupert, Nanaimo and Port Alberni port authorities.

Bill C-33, which purports to be legislation for marine security, favours the economic interests of corporations and businesses over the rights of workers, who are essential to the productivity of the ports. In order to maintain a balance between the interests of employers, business and workers, ILWU Canada urges Parliament to promote labour stability by ensuring that a representative of labour is included on the board of directors for each port authority and, in amending the Canada Marine Act, recognize the rights of workers.

On the composition of the board of directors, Bill C-33 proposes to increase the maximum number of directors of a port authority from 11 to 13, increase the number of directors nominated by municipalities from one to two, and increase the number of directors to be appointed by provinces, as set out in the letters patent of the port, to two.

ILWU Canada encourages the government that Bill C-33 should include an amendment in section 14 of the Canada Marine Act that would include a representative of labour in the ports.

Port authority boards of directors favour business. For example, the Vancouver Fraser Port Authority board is heavily represented by directors with business interests. Catherine McLay is the former CFO of TransLink and a former senior executive of Canfor and Howe Sound Pulp and Paper. James Belsheim is the current chair of the Coal Export Terminal Operators Association, the former president of Neptune Terminals in metro Vancouver and the former director of BCMEA. Bruce Chan is the director of BC Ferries and Kinetrex Energy. He was formerly in senior positions for almost 20 years with Teekay Corporation, which is one of the world's largest marine energy, transportation, storage and production companies. Craig Munroe is a labour lawyer representing employer interests. His law firm represents port users, including the coal terminals Westshore Terminals in Vancouver and Trigon Pacific Terminals in Prince Rupert. Mike Corrigan is the CEO of Interferry Incorporated, which is a global trade association representing ferry employers. He's the former CEO of BC Ferries and a former senior manager at Westcoast Energy.

Creating a requirement that a port authority's board of directors includes a representative of labour ensures a voice for labour, which will minimize potential future disputes, such as the expansion of the Roberts Bank terminal in the port of Vancouver.

Port authorities on the west coast of the United States have representative port workers on their boards of directors and they function quite well. At the Port of San Francisco, the five-person board of commissioners includes Willie Adams, who is the international president of the ILWU, and Gail Gilman, who was a CEO and activist for the homeless and social enterprise.

At the Port of Los Angeles, the five-person board of commissioners includes Diane Middleton, who is a labour lawyer and worker advocate, and Michael Muñoz, who is an organizer for the Teamsters and an activist with the Warehouse Worker Resource Center.

The next point I want to talk about is the recognition of the rights of workers. ILWU Canada's concern is evidenced by the recent collective bargaining experience on the west coast, which was that the economic interests of the ports are eclipsing the fundamental rights of workers to engage in free collective bargaining.

Our concern is magnified by the proposal in Bill C-33 to add resilience in supply chains as a purpose of the Canada Marine Act. Supply chains are important to trade, but the economic interest in supply chains cannot be permitted to override free collective bargaining, which the Supreme Court of Canada has recognized as a fundamental freedom protected by section 2(d) of the Charter of Rights and Freedoms.

If Bill C-33 is amended to recognize the role of supply chains as a purpose of the Canada Marine Act, ILWU Canada submits that the CMA should also include as its purpose the recognition of free collective bargaining. The Canada Labour Code sets out this goal in the preamble to part I:

Whereas there is a long tradition in Canada of labour legislation and policy designed for the promotion of the common well-being through the encouragement of free collective bargaining and the constructive settlement of disputes;

Including the same language in the Canada Marine Act would send a message that Parliament does not intend business interests to outweigh fundamental rights.

In conclusion, labour organizations are stakeholders in port security. Amending Bill C-33 to ensure that ports are governed with worker interests as a consideration is necessary for Parliament to maintain consistency with international obligations such as the ILO and IMO port security codes, the Charter of Rights and Freedoms, and security legislation.

Thank you very much.

October 16th, 2023 / 5:20 p.m.


See context

Assistant Deputy Minister, Policy, Department of Transport

Serge Bijimine

There are a couple of things on how it promotes private sector investment.

In the first instance, what we are trying to do in Bill C-33 is promote the right type of private sector investment. There is a proposal in there to reduce the current threshold for review from $93 million to $10 million. I would just note that reducing the threshold does not impact our trade agreements with the EU or the U.K.

What we are trying to do is put in place a system that allows more of these projects to be scrutinized to make sure that they meet our national economic security objectives, given the fact that ports are strategic enablers of the Canadian economy. That's the rationale behind that.

Dan Muys Conservative Flamborough—Glanbrook, ON

To switch gears, maybe you can elaborate a bit on how Bill C-33 promotes private sector investment and involvement in the transportation sector, particularly in response to the ports modernization review. One of the objectives there is unleashing the potential of the private sector.

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

Thank you, Mr. Chair.

My colleague Mr. Strahl talked a little bit about anchorages. He presented what I think could be characterized as the view of the port authorities, which is that they need more room to park vessels when there's congestion.

I'd like to present a contrary view, that of communities, particularly communities in the southern Gulf Islands, which have seen incredibly ecologically sensitive areas very close to their communities turned into industrial parking lots. I know that this is a concern you're familiar with.

Does Bill C-33 include provisions that allow the minister to intervene on behalf of communities and prevent those areas from being used as industrial parking lots by shipping companies?