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

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

Madam Speaker, I too have visited these ports, many of them, in western Canada and eastern Canada. During a recent study tour, our transportation committee visited major ports in Montreal, Halifax and others on the east coast, while some of our members went to the west coast. We have seen first-hand the congestion that has materialized in some of the ports. What we are saying is that these are recommendations in this bill from so-called experts in the industry about how we can approach or improve congestion and port efficiency, and improve our supply chain.

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

Madam Speaker, I am trying to understand what we are doing here this morning. I am sincerely interested in having the government's agenda explained to me because I am having a hard time following.

There is currently a global climate crisis and this summer there were forest fires everywhere. There is a housing crisis and 3.5 million housing units need to be built. There are homeless seniors in Quebec. There is also an acute inflation crisis. I was just talking about the climate crisis. Canada had its knuckles rapped at the UN just last evening.

This morning, they show up with a sort of omnibus bill with safety measures for the railway system and half measures for the ports. I am trying to understand where the government is going with this. I would like my colleague to give me an indication.

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

Madam Speaker, the issues I raised in my speech about Bill C-33 are all related to supply chain needs. They are related to the connection with rail, marine and air services, which all interconnect to help improve our supply chain. As we know, for the past three or four years, we have had major challenges, particularly during the pandemic, when Canadians could never get services on time or get products they needed. This is all about improving efficiency over the entire transportation network.

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

Madam Speaker, I have enjoyed my time on the transport committee with the member for Bonavista—Burin—Trinity, and my question has to do with that committee's work.

This bill is not only about ports but also about rail safety, with amendments to the Railway Safety Act. The member will be well aware of our work at committee on the topic of rail safety. Last May, the committee released a report with 33 recommendations to protect workers and communities from rail disasters. The bill in front of us, which claims to be partly about railway safety, has ignored all 33 of those recommendations.

As he is a member of that committee and someone who contributed to that work, how did it feel for the member's own minister to ignore the committee's recommendations so thoroughly?

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

Madam Speaker, I too enjoyed my time on the transport committee with my colleague, and the rail safety issue certainly has been an important part of our discussions, as has much discussion around the entire supply chain. This bill is attempting to cover all of these concerns and make sure we have a safe, affordable and competitive supply chain.

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

Madam Speaker, I continue to hear the member for Pitt Meadows—Maple Ridge refer to this as a fluff bill, and I take offence to that, although I am very glad to see that Conservatives are up and speaking today. We know they have been silenced by their leader twice this week already.

I am wondering whether my colleague can comment on why this bill is so important now and why putting it on the table and seeing the legislation pass is critical for the industry.

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

Madam Speaker, it is important because, in my half a dozen years on the transport committee with members of the government and the opposition, we have heard from many of the people who work in the industry on a daily basis. People do not understand the challenges some of our ports are facing and what needs to be done to create a comprehensive plan that delivers products and goods to Canadians on time, efficiently and affordably.

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

Madam Speaker, I am pleased to rise today on behalf of the people of Skeena—Bulkley Valley in beautiful northwest B.C. and speak to the bill before us, 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.

This is a fairly complex and technical bill, but really it focuses on Canada's supply chain. Canada is a trading nation, and the performance, resilience, efficiency and sustainability of our supply chain obviously have far-reaching impacts. This is something that was driven home just this past year with the atmospheric river events in British Columbia, the extreme climate occurrence that took out a good portion of the supply chain infrastructure in my province and caused some real concern and disturbance for the supplies that companies and citizens across our country require. There is also of course the impact of the pandemic on the supply chain. We saw during the pandemic a whole host of concerns, unfortunately very few of which are addressed in this bill. However, I do note there are some incremental improvements we can get behind.

I hope to focus my comments on the concerns I have heard from communities, from people in British Columbia and other parts of Canada who are impacted by the operation of the supply chain. The supply chain does not exist in a vacuum. It runs through places where people live. For years and years, people have been expressing concerns about the impact of the transportation of goods on their lives. I was somewhat dismayed to see that those concerns from citizens and the concerns from workers in the supply chain are not reflected in a more substantive way in the legislation before us.

The response to this bill has been rather tepid. As much as anything, the response has been that it is a missed opportunity to do something much more far-reaching and ambitious. However, as I mentioned, there are items in this bill that are supportable, so we look forward to seeing it get to committee where we can work with all parties to make amendments that strengthen its provisions.

I am going to focus my remarks on the portion of the bill that relates to changes to the Marine Act, that is, the operation of our ports, and changes to the Railway Safety Act, which is something very pertinent to the region I represent.

I will start with the topic of rail safety. I want to note at the outset that this year marks the 10-year anniversary of the Lac-Mégantic tragedy that took 47 lives and destroyed the downtown of a beautiful community. I came across comments from a fellow named Ian Naish, the former director of rail accident investigations with the Transportation Safety Board. He said in February that safety measures introduced since the Lac-Mégantic disaster have been “marginal”.

We also saw in East Palestine, Ohio, a major rail disaster that impacted thousands of people. In the wake of that disaster, Kathy Fox, the chair of Canada's Transportation Safety Board said, in referring to rail safety in Canada, “Progress is being made, but it's very, very slow. I can't say [Ohio] couldn't happen here.” These remarks should be of great concern to Canadians, because we see the volume of dangerous goods shipped by rail increasing every year.

I mentioned in my question to my colleague across the way a moment ago the work of the transport committee, on which both he and I sit. That committee, in May, released a report with 33 recommendations, and I am somewhat disappointed to see that this bill does not address any of them. One of our big concerns when it comes to rail safety is the use of something called safety management systems. This was brought in, I believe in the 1990s, under a Liberal government. Prior to that, there was a much more conventional approach to the regulation of the rail sector and the use of enforcement to do so. Safety management systems are really a form of self-regulation by the companies themselves.

This has been a concern for a number of watchdogs that keep track of changes in the rail sector. Since the Transportation Safety Board has kept a watch-list, this is a set of issues that are of concern and that Canadians should be watching when it comes to safety.

The Transportation Safety Board states, “operators that have implemented a formal safety management system (SMS) are not always able to demonstrate that it is working and producing the expected safety improvements.” I will also note some words from the Auditor General of Canada:

...Transport Canada was unable to show whether departmental oversight activities have contributed to improved rail safety. In addition, the department did not assess the effectiveness of the railways’ safety management systems—despite the many reports over the last 14 years recommending that Transport Canada audit and assess these systems.

The picture I am trying to paint is one in which the government has largely allowed these multi-billion dollar rail companies to look after their own safety, and the oversight of them has been sorely lacking. Particularly on the anniversary of the worst rail disaster in 150 years, Canadians should be concerned about that.

Bill C-33 does contain one small change giving the minister the ability to require companies to address deficiencies in their safety management systems. However, this is a discretionary power given to the minister and really relies on his or her willingness to use that power. At the very least, safety management systems should be made public. Currently, they are proprietary systems owned by companies and not open to public scrutiny.

Bruce Campbell, a rail safety expert who wrote a book on Lac-Mégantic and who has been looking into these issues for years, says, “Transport Canada must ensure that [safety management systems] are part and parcel of an effective, adequately financed, comprehensive system of regulatory oversight: [one-site] inspection, surveillance and enforcement supported by sufficient, appropriately trained staff.” He goes on to say that SMS, currently protected under commercial confidentiality, should be accessible to outside scrutiny. We would very much like to see the government make safety management systems public so that the public can see what railway companies are doing to ensure the safety of their communities.

It is incredible that small rural communities, like many in the riding I represent, are responsible for protecting their residents from potential disasters involving these multi-billion dollar rail companies that are shipping dangerous goods within metres of residents' houses. Many of these communities rely on small volunteer fire departments. They have limited equipment and capacity, yet we see hundreds of railcars with extremely volatile compounds being shipped right through communities every single day. It boggles the mind that the responsibility for responding to emergencies rests—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

Could the hon. member for Saskatoon—University take the call outside the chamber, please?

The hon. member for Skeena—Bulkley Valley.

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

Madam Speaker, as I was saying, we need companies to be responsible for protecting communities from their commercial activities. I think that is very reasonable.

Moving on to the portion of the bill that deals with ports, these are some of the more substantive changes being proposed by the government. I will start by noting the importance of the Marine Act and ports to northwest British Columbia.

Of course, the riding I represent is home to the port of Prince Rupert. It is one of North America's fastest-growing ports. It is currently the third-largest port in Canada, and it is a port that has really transformed the face of that community over more than a decade. With incredible growth and expansion, it is now by far the largest employer in the community and has been bringing a lot of benefits to that place, and some concerns as well.

In 2022, the port of Prince Rupert moved 24.6 million tonnes of cargo through its facility, which is a pretty astonishing volume of goods. Of course, this has benefits and impacts up and down the supply chain. The community I live in, Smithers, which has long been a railway town, has hundreds of railroad workers who work for CN and are involved in the transportation of goods from the port.

Last year the port of Prince Rupert completed some exciting projects. There is the Fairview-Ridley connector road shore power project, which I will talk about in a moment, and work is under way on the South Kaien import logistics park. They are assessing the feasibility of a second container terminal, which reflects their really ambitious plans for growth.

The changes to the Marine Act we are looking at in the bill before us really reflect an attempt by the government to solidify the role of port authorities as public institutions and as publicly accountable entities. I think that is a worthwhile project, but we need to ensure that it is done effectively so that the changes actually result in more accountability, transparency and value to the Canadian public.

The changes to the Marine Act would include enabling port authorities to act as intermodal hubs and establish inland ports, and would establish a regulatory authority for traffic management and a streamlined review of port authorities' borrowing, although I would note the bill stops far short of doing what the port authorities are asking when it comes to their borrowing authority. The bill would require ports to provide more information on their activities and their decision-making to government; expand the eligibility of port authority boards and amend their membership; require them to submit publicly available strategic plans; require periodic reviews of port governance; and require them to establish advisory bodies for indigenous communities, local stakeholders and local governments. Finally, the changes to the Marine Act would establish a regulatory authority to require port authorities to set five-year climate plans and targets. I think that is important, and I will speak to it.

There is a difference between real accountability and window dressing, and I think the port association, which has expressed concerns about the added burden of these regulations, is right to be concerned if they do not effectively increase accountability and transparency. When we look at the advisory committees, for instance, I think there are many examples throughout our country of advisory committees that do not actually perform a substantive role, that are there as a sort of PR project and do not improve governance or adequately reflect the concerns of the community or the stakeholders who are being consulted. As such, for these changes to really have the effect the government is hoping they will, we believe there needs to be some degree of independence and there should be clear linkages to port authority decision-making.

A number of advisory committees are being called for in the legislation. The government is talking about requiring port authorities to set up three advisory committees. I was remiss in not mentioning the port of Stewart, a much smaller port in northwest B.C. but an important one nonetheless. For port authorities in smaller communities, the requirement to establish three different advisory committees might be more than is required. We need to look at how we can amend that to ensure that we are properly reflecting the need for additional consultation and the capacity of the community to provide that consultation.

Let us move on to the requirement for port authorities to set climate plans. I believe this is important. The activities of ports make a small but real contribution to Canada's overall emissions. There are great opportunities at ports to reduce emissions and drive down climate pollution. This requires the establishment of five-year climate plans. There is very little detail in the legislation as to what those plans would include. Our view is that, at the very least, five-year climate plans should align with the other climate accountability legislation the government has passed, legislation that we have worked hard to strengthen. It should also be consistent with Canada's national ambitions around reducing greenhouse gases and our international commitments.

As I mentioned, there are huge opportunities at ports to reduce the climate's impact and drive down emissions, and we are seeing some of those opportunities already realized in British Columbia. Shore power, in particular, is a mature, commercially viable technology that is used extensively throughout the world. Last year in Prince Rupert, the port authority embarked on a shore power project. Shore power essentially allows vessels to plug into electricity and not rely on their diesel auxiliary engines when they are tied up in the port being loaded or unloaded. This not only reduces particulate matter in the local community and improves air quality, but it reduces greenhouse gas emissions significantly.

That project is going to make a huge difference. I believe the shore power project in Prince Rupert will reduce emissions by over 30,000 tonnes per year, which is incredibly significant. There is also a shore power project in Victoria at the cruise ship terminal there, which will see very similar benefits.

There is a need to decarbonize shoreside operations as well, including the container handling equipment. This is the equipment at the container terminal, which currently relies on diesel. That is a huge opportunity, not only to make the port's operation more efficient, but to drive down climate emissions. We also need to make parameters around climate planning more robust if this legislation is truly going to drive change. As I said, we need to align it with national ambitions and international obligations.

I will turn back to some of the pieces around accountability and representation when it comes to port governance. One thing we need to recognize, and I am not sure if it is adequately recognized in this legislation, is the central role workers play in the operation of the supply chain, both rail workers and port workers. One of the things I have heard loud and clear from port workers, particularly in British Columbia, is that there is a need for their perspectives to be incorporated into port decision-making.

Currently, on boards of directors of port authorities, there is space dedicated for local governments and for representatives from the prairie provinces. However, there is no seat on port boards of directors for the workers who allow our ports to function. These workers have specific knowledge, expertise and experience that would be of great benefit to the port authorities.

We have submitted that there should be a seat at the table for working people, for the employees of those port facilities. We believe that by working at committee, we can amend this legislation to ensure that workers have a voice in the conversation and a place in the governance of our port authorities.

A final area of concern for residents is marine traffic and anchorages. It has been raised specifically by residents of the south coast of British Columbia in the vicinity of the southern Gulf Islands.

During the pandemic, we saw incredible congestion at the Port of Vancouver. We saw many cargo and container ships backed up and anchored in various locations throughout the Salish Sea and the surrounding waters, which caused real impacts on residents who live in these small communities.

The residents are very concerned about the use of ecologically sensitive coastal areas as essentially parking lots for these large ships. They are worried about the impact on marine mammals, particularly whales, like the endangered southern resident killer whales. They are worried about the impact of anchor dragging, the risk of collisions with whales, noise pollution, air pollution and light pollution. All these things affect people's lives in a very real way.

It is disappointing to see that, despite the media coverage of their concerns, despite writing the minister repeatedly and making the minister aware of these concerns and impacts, the bill before us would do very little, if anything, to address those concerns.

We will be working very hard to ensure that the concerns of those residents are reflected in meaningful amendments. We are talking about areas that Parks Canada has proposed as national park reserves. These are very special, nationally significant marine areas. We are going to ensure those are protected from the impact of shipping traffic, and I look forward to that.

Bill C-33, as others have said, is not as ambitious as it could be, but we look forward to working, through the committee process, with all parties to strengthen it and see if we can get it to the point where it is supportable.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, one issue I want to pick up on is that there are some environmental concerns, there is no doubt about that, but there is also the economics of ensuring that our ports are efficient and effective. The legislation does some modernization of sorts, which will help facilitate a better system.

Canada is very much dependent on our ports. Could the member comment on the economics of this and why it is so important that we deal with this legislation?

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

Madam Speaker, I see the legislation as representing two opportunities. One is an opportunity to make the supply chain more resilient, more efficient and more competitive. The other opportunity is to ensure that the impacts of the supply chain on people in communities are managed properly and mitigated wherever possible.

On the former point, the bill would move things ahead through things like data sharing, changes to port security and the scrutiny of cargo coming in, trying to reduce bottlenecks, giving the minister more discretionary powers to unstick things when there is congestion in the supply chain and giving port authorities more tools to realize opportunities. All that is relatively positive, and we can get behind them.

However, the real missed opportunity is on the latter point, which is dealing with the long-known impacts of rail traffic and shipping traffic on communities. This is where I believe the member's government has not gone far enough, and we hope that future legislation and amendments will take care of that.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Madam Speaker, there was a lot of anticipation with the bill from a many stakeholders in the community. I agree with my colleague from the New Democratic Party that there was a missed opportunity on many fronts.

The Chamber of Shipping said that this legislation missed out on addressing the root causes of supply chain congestion and that the additional powers only addressed symptoms of congestion and could aggravate managing cargo efficiently. Could he comment on that?

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

Madam Speaker, the central tension here is between a supply chain that is largely dominated by private players, by companies that move goods through our country, and the fact that ports, and many other aspects of the supply chain, fall under federal jurisdiction and are the responsibility of the federal government accountable to the people. Where is that balance between ensuring the public interests and allowing the private interests the flexibility to complete in a global market. In many ways, the bill would require increased accountability from companies in the supply chain and from port authorities.

What we saw during the pandemic was some very serious disturbances, and a lot of the accountability for that falls to the government. Allowing more public tools to address challenges in the supply is warranted to some degree as long as it is done in a way that is responsible.

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

Madam Speaker, I would like to congratulate my NDP colleague on his speech, which was nicely balanced.

I have to say that we have had plenty of opportunities to discuss the benefits and shortcomings of Bill C‑33. We also had the opportunity to visit various ports in Canada last spring, if I am not mistaken, and my colleague took part in that visit.

He clearly laid out what he would have liked to see in the bill. I agree with most of the points he raised. However, I would like to add a few more.

I wonder if my colleague thinks that Bill C‑33 is actually going to change the rules of the game and make a big difference. Is this really what the port representatives were asking for during our tour last year? Is this really what will help solve the problems facing our communities, towns and villages?

Personally, I am not convinced, but perhaps he could talk more about that. Does he think this bill is the gold standard, the greatest bill we have ever seen?