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

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

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

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

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

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

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

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

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

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

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

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

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

Mr. Speaker, I am thankful for the opportunity to rise and speak to Bill C-33, an act to amend the Customs Act, the Railway Safety Act, the Transportation of Dangerous Goods Act, 1992, the Marine Transportation Security Act, the Canada Transportation Act and the Canada Marine Act and to make a consequential amendment to another act. That is quite a mouthful, but it is simply known by its short title of “Strengthening the Port System and Railway Safety in Canada Act”.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Mario Simard, Bloc, Jonquière, QC]

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

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

I would like my colleague to explain that.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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