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

[Mark Strahl, Conservative, Chilliwack—Hope, BC]

Madam Speaker, I certainly disagree with the minister's characterization of my remarks.

I have no problem with the provinces having representatives on the board; they already do. I have said that the users of the port, the tenants, are having their voices diluted by adding others to it. That needs to be addressed.

As I said in my question to the minister, it does not really matter if the provinces and port users are supposed to have a voice in who is selected to the ports to represent them if the minister ignores their voices. He would be ignoring them if, when nominees are put forward by the provinces or port users, the minister said, “No, I know best. I am going to appoint people who have not been recommended because Ottawa and the Liberal government know best.” They do not know best, and they should start listening to those groups that are directly impacted.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Speaker, I thank my hon. colleague for his speech. The Bloc Québécois supports the bill in principle, but we have some concerns.

The various proposed measures may end up creating a disproportionate administrative burden for small ports.

According to my colleague, how might we amend this bill in committee to ensure that the administrative burden is not excessive for small ports?

[Mark Strahl, Conservative, Chilliwack—Hope, BC]

Madam Speaker, I appreciate the member's comments, and I tried to address some of that in my speech.

I think the bill was written for the Port of Vancouver. It was clear that the government looked at the Port of Vancouver and designed the bill around that port. This absolutely does not take into consideration a port like the Port of Saguenay, which has very different volumes and financial resources, as well as a different size.

The bill is very clear. It imposes all three advisory committees, no matter where the ports are across the country; quarterly financial statement requirements; and a greenhouse gas emission evaluation. We have to delete all the clauses that impose these new burdens on all ports, because not all ports have the same capacity to manage them.

[Taylor Bachrach, NDP, Skeena—Bulkley Valley, BC]

Madam Speaker, my colleague noted his disappointment that Bill C-33 does not include more provisions to deal with labour disruptions in the supply chain.

I think comments like that raise alarm bells for a lot of working people, who have borne the brunt of the penchant for draconian back-to-work legislation among both Conservatives and Liberals. It will be no surprise to folks here in the House that New Democrats believe the best way to settle labour disruptions and achieve the best labour outcomes is at the bargaining table.

What measures does my colleague have in mind to deal with labour disruptions in the supply chain? Does the member support our view that working people and their representatives deserve a voice on the boards of directors of our ports?

[Mark Strahl, Conservative, Chilliwack—Hope, BC]

Madam Speaker, of course Conservatives support the collective bargaining process and believe that governments should support that process to ensure that our vital supply chains are not disrupted through labour stoppages, whether lockouts or strikes.

We have seen the devastating impact of just the rumour of a strike or a lockout. It can cause millions of dollars of damage to the Canadian economy. We saw this when there was a stoppage on the CP Rail network for just a number of days. For every day of stoppage, it takes weeks to clear up.

The damage to our international reputation is lasting. When people are not assured of the reliability of the supply chain in Canada, they look for other options. Moreover, there are other options in North America. That is what we want to avoid. The national supply chain task force spoke of this very clearly. That is what I was referring to: There is a need to ensure that our supply chains are treated like the valued service they are. We need to make every effort to prevent anything that would impact the reliability of our supply chain for our international partners.

The House resumed from June 8 consideration of the motion that 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, be read the second time and referred to a committee, and of the amendment.

[Dan Vandal, Liberal, Minister of Northern Affairs]

Mr. Speaker, I will be sharing my time with the member for Bonavista—Burin—Trinity.

I am proud to rise today to speak to a subject that is important and vital to the safety and security of Canadians, as well as our economy. The bill, as presented today, seeks to achieve multiple goals. It would modernize our ports to ensure a resilient supply chain at home, and it would secure our marine ports to keep Canadians safer. These changes would support Canada's economic recovery while taking an environmentally sustainable approach.

As we have heard from other members, the bill is very ambitious, but let me assure the House that all the goals are feasible and realistic. They come as a result of the ports modernization review that was launched in March 2018 by the then minister of transport. During the course of the review, many stakeholders were consulted, through various venues, such as ministerial round tables. The review focused on how ports could make progress on five key goals.

However, I want to focus on how this bill would enhance safety and security and help prevent contraband from being smuggled through Canadian ports, as well as facilitating the movement of legitimate commercial goods.

Over the course of consultations, we discussed potential safety and security issues at all our ports. As is the case elsewhere, the marine sector is not immune to organized crime activities, and that is why the Government of Canada is heeding this feedback and taking action. We have heard from stakeholders that the government needed to improve customs examination processes and reduce delays in getting Border Services officers to inspect cargo. That is precisely what we are proposing to do.

Stakeholders also highlighted a need for consistent standards for employee security screening at ports. This is precisely why our government is putting forward measures to increase efficiency in the presentation of containers for examination at marine ports to combat criminal smuggling efforts; reduce costs and delay for importers; increase the number of containers that would be secured from tampering on marine terminal property, through improved security measures; and increase the rate of compliance among trade chain partners by implementing additional measures to address non-compliance through penalties.

The changes I have listed would work in concert with the other measures included in this bill. They would allow our border services officers to accomplish their security mandate in a more efficient and effective way. This work would undoubtedly improve supply chain security and the flow of goods in and out of Canada's marine ports.

I know some members are asking themselves this: How would these measures impact the industry financially? These proposed measures are aimed at reducing delays and enhancing security, and they are expected to result in a long-term cost-saving opportunity for the entire trade community. This includes our importers, consumers and, ultimately, the Canadian economy.

I say this because the costs associated with the delays of examining containers and shipments subject to tampering are often passed on to the final consumer. Colleagues, this is a step in the right direction to ensure that all trade chain partners focus on improving security and efficiencies.

These changes may also improve the reputation and economic competitiveness of Canada's ports, because shipping delays and security vulnerabilities continue to have a negative impact. This is why the government expects strong support from the trade community, as the measures are aimed at addressing shipment delays and the associated costs, as well as improving supply chain efficiency. Allowing for more security at our ports and protection for Canadians and the economy should be reasons enough to support the measures.

Let me tell the House what would happen if we did not take these actions. As it stands today, the current legislative and regulatory framework does not provide the CBSA with authority to ensure containers are made available for examination in a timely manner or that adequate security measures are in place to prevent tampering prior to examination. A failure to examine incoming goods in a timely manner leaves commercial goods open to criminal exploitation. This places Canadians at risk, and it causes economic impacts to the trade community and to the wider Canadian economy.

Let me continue by saying these impacts are felt not only at home but also abroad by our international partners. Our issues can become their issues. They can translate into a lack of confidence in Canada's ability to secure its marine ports. That is why the changes proposed in this bill are integral to all parties at our marine ports, including the CBSA in carrying out its mandate for safety and security.

I want to reassure the House, the trade community and all Canadians that the CBSA continues to experience significant success from its ongoing interdiction efforts at our marine ports, despite the need for improvements. Our border officers are highly trained in examination techniques to intercept prohibited goods and illicit drugs being smuggled into Canada. Our officers look for any indication of deception and use intelligence, as well as a risk-management approach, to determine which goods may warrant a closer look. The seizures that are routinely reported by the agency demonstrate the crucial role that CBSA plays in ensuring public safety, but more can be done. That is why the government has put forward this bill to give our officers the tools they need to better complete their mandate.

With more measures in place and a requirement that high-risk containers selected for examination are kept in a dedicated secure area, our officers at the border would be better able to interdict contraband and prevent organized crime from tampering with containers before they have been inspected. The additional penalties and time limits would ensure goods are examined in the right place, which would lead to safer Canadian ports. I believe that anyone can get behind these measures to further secure goods and protect Canadians.

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

Madam Speaker, I am from the Lower Mainland of Vancouver, and in 2016 the port authority stopped funding its enforcement team. Four hundred thousand dollars was pulled out of enforcement at the port. It is a gap that still remains today.

Could the member please let us know why the federal government is not funding additional enforcement when it knows there has not been enforcement in place for seven years?

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Madam Speaker, we know that ensuring good public services is integral to everything that our government does. We need to make sure that those public services are properly supported financially. We have thorough budgetary process reviews.

I know the minister of this file and his parliamentary secretary always provide good strategic overview for the issues brought up by the member, and I have full confidence that we will make sure these services are properly funded.

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

Madam Speaker, this bill is a typical Liberal bill, which is a lot of fluff and a lot of bureaucracy in the name of safety, but it would bring a lot more costs, bureaucracy and inefficiency to Canadians and the ports. The members of the Association of Canadian Port Authorities say that more government is not the answer, and that is what this bill is. I wonder if the minister would respond to that.

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Madam Speaker, nothing can be further from the truth. We know that we have gone through a very difficult time over the last three or four years with the supply chains and the pandemic. Our ports have suffered because of that.

Bill C-33 would modernize the way Canada's marine and railway transportation systems operate. We would remove systemic barriers to create a more fluid, more secure and resilient supply. The bill would expand port authorities' mandate over traffic management. All of those are very positive efforts. This bill will go to committee and be looked at in greater detail, and I look forward to seeing this through.

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

Madam Speaker, I listened carefully to my colleague's speech. What I think is important about Bill C‑33 is that it seeks to improve rail safety in Canada.

I would like to talk about a rail disaster. On July 6, 2013, 47 people were the victims of a rail disaster in Lac-Mégantic. Everyone remembers that.

In 2018, the Prime Minister went to Lac-Mégantic to announce the construction of a rail bypass, which was supposed to have been completed by the end of 2022. Today, nearly 10 years later, we have not even seen a shovel in the ground.

How can this government take the position today that it wants to improve rail safety when it has not even been able to keep its promise to build a rail bypass for the people of Lac-Mégantic? One can only imagine the negative impact that will have on the social environment.

My question for my colleague is simple. When will the shovels finally go in the ground to build the rail bypass for the people of Lac-Mégantic?

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Madam Speaker, I thank the member for his extremely important question.

What happened in Lac Mégantic a decade ago is a tragedy for Canada. Our government is committed to doing what it takes to make the rail system safer. We are working on this file and I know that the minister is working with the community and the industry to make the necessary improvements to prevent such a tragedy from happening again. We are committed to this issue.

[Churence Rogers, Liberal, Bonavista—Burin—Trinity, NL]

Madam Speaker, Canada's ports are indispensable links in our country's supply chains. In co-operation with other modes in the transportation network, they help grow our economy, create middle-class jobs for Canadians, deliver affordable goods and support Canada's growing export industry.

Canada's long-term prosperity is dependant on the competitiveness of this transportation network. This is, in part, determined by the reliability of each mode to move goods swiftly and cost efficiently. The ability to make data-driven decisions and the capability to plan for and make timely investments are critical. To ensure Canada's competitiveness now and into the future, ports require modernized tools and approaches to thrive in an increasingly global environment.

Other countries are pulling ahead of Canada. In the race to establish a fluid and agile transportation network, they have already established end-to-end systems, level approaches that consider each mode and link in the supply chain. All of this is informed by data and information sharing. To remain competitive, our government needs to adopt a comprehensive approach to supply chain planning.

Bill C-33 considers ports as central nodes in a complex, interdependent system and enables them to capitalize on their important position in Canada's intricate supply chain. The tools proposed in this bill would be informed by a cohesive data strategy that would enable prioritization of fluidity, responsiveness and agility.

A well-functioning transportation system requires and relies on the availability of vast amounts of data. Ports are nexuses where transportation modes converge. They present a unique opportunity to leverage untapped data to unlock and build an adaptable, responsive and resilient trade network. Furthermore, a resilient trade network requires continued development and growth to be provided through investment. To ensure that investments continue to serve the public as intended, they must be assessed against clear objectives.

The need to deliver a modern transportation network has never been clearer. Canadians are facing the rising cost of goods and services and product shortages. Inflation continues, and Canadians are struggling to keep up. Taking action to improve the competitiveness of the transportation network is key to making life more affordable for Canadians.

Bill C-33 seeks to enhance efficiency, facilitate data and information sharing, and maintain sustainable investment. These are the keys to ensuring that our transportation network continues to support Canada's economy and improve the life of every Canadian.

To that end, Bill C-33 would enable three competitiveness reforms that would provide ports with the tools and mandate to better manage traffic and ease congestion with the goal of enhancing gateway fluidity; empower port authorities, through the collection of data and information, to support efficient and informed planning to support resilient operations; ensure port investments align with public interests and that investments continue to be managed sustainably.

I will first speak to the need to provide ports with the tools and mandate to better manage traffic.

From end to end, ports and exports touch multiple transportation modes: marine, rail and road. These interdependencies make up Canada's transportation network, which requires a systematic approach to planning, development and traffic management. Bill C-33 would broaden the scope of the Canada Marine Act to mandate port authorities to work with the supply chain stakeholders to actively manage commercial traffic, including vessels anchoring while waiting for cargo, and allow for sequencing of rail services.

Ensuring that ports take a more direct role in traffic management would mean faster handling of ships, improvements to the fluidity of traffic flows at ports and maximizing the efficiency of supply chain operations. Additionally, the bill would enable Canada port authorities to create inland ports. Importantly, this would allow new ways of doing business that optimize terminal throughput, alleviate congestion in our urban centres and position our supply chains on a more resilient footing.

These tools would reframe the basis for collaboration between supply chain actors and Canadian port authorities. Port authorities would be empowered to take a more active role in managing the supply chain, including taking concrete actions to address congestion. However, unlocking the ability of ports to better manage traffic and ease congestion requires enhanced data and information sharing among partners.

The second main reform proposed is in support of greater competitiveness in data collection and information sharing among partners. Bill C-33 would allow ports to leverage data to better orchestrate traffic and inform port planning and smarter decision-making. As we look to best practices, governments and industry partners around the world have already improved efficiency, safety and productivity across entire supply chains by transforming their ports into data hubs. Canada needs to keep pace if we are going to remain a competitive trading nation.

As members of the House know, private investment has been a key to our competitiveness. This is also true for our ports. Private investment in our ports has been essential to the development of the port services we have today, and this will continue to be the case in the future. It is therefore critical that we continue to foster a clear and predictable investment climate while ensuring such activities support port sustainability and the public interest.

Bill C-33 would provide the government with more insight into strategic port investments by broadening the scope of reviewable transactions. Over the past number of years, Canada port authorities have called for greater financial flexibility to enhance their ability to harness investment and respond to development opportunities. Bill C-33 seeks to provide port authorities with increased borrowing and financial flexibility, balanced against the financial risks to the Crown and to Canadians. To that end, Bill C-33 would establish a triennial review of Canada port authorities' borrowing capacity.

In summary, the suite of measures found in Bill C-33 would provide the tools needed to optimize port operations, enabled by modern digital solutions, and maximize investment and capacity development grounded in clear rules that maintain ports as attractive and sustainable assets. Taken together, these measures would ensure that our ports remain resilient, efficient and competitive.

Canadians have witnessed first-hand the need for such reforms. I hope I can count on my fellow members of Parliament to support this bill.

[Marc Dalton, Conservative, Pitt Meadows—Maple Ridge, BC]

Madam Speaker, the Liberals are waxing eloquent with this bill, but this would just make things worse. CP Rail says that, after four years, this is a whole bunch of nothing.

I recently toured both the Port of Nanaimo and the Port Alberni port. What they need is not more bureaucracy, more things to stifle movement. They need help with the Canada Border Services Agency, to get some representation there so we can reduce the clog in traffic and the bulk of the ships within the Gulf Islands and the area around Vancouver.

Will the Liberal member not recognize that this is not what industry is asking for and is not leading to efficiencies?