Foreign Affairs Committee on Feb. 28th, 2013

[The Chair, Conservative, Dean Allison]

Good morning, everyone. Pursuant to Standing Order 108(2), our study on Canada's Arctic foreign policy will continue.

I just want to welcome all our guests here today. Thank you very much for participating and giving us a briefing on what is going on.

I just want to start over on my left. We have Sylvain Lachance, executive director, regulatory services and quality assurance, marine safety and security, from the Department of Transport. Welcome, sir. Thank you for being here.

Then we have Laureen Kinney, who is the associate assistant deputy minister, safety and security group, from the Department of Transport. Welcome as well.

Next to them is Jody Thomas, who is the deputy commissioner, operations, of the Canadian Coast Guard, with the Department of Fisheries and Oceans. Welcome, Jody.

And then next to Jody is Jacqueline Gonçalves, who is director general, maritime service directorate, Canadian Coast Guard.

Last but not least, we have Renée Sauvé, who is the director of global marine and northern affairs, international affairs directorate, with the Department of Fisheries and Oceans.

So welcome to all of you.

I believe we're going to start with you, Ms. Kinney, for your opening statement, and then we'll go to Ms. Thomas for your opening statement. Then we will go around the room for the next hour or so to ask some questions.

Ms. Kinney, welcome. Thank you for being here. We'll turn the floor over to you. You have 10 minutes.

[Laureen Kinney, Associate Assistant Deputy Minister, Safety and Security Group, Department of Transport]

Thank you for your introduction, Mr. Chairman, and for inviting me to address the committee today about some elements of Canada's Arctic foreign policy relating to marine transportation.

As you know, the north is undergoing rapid change and a warming climate is providing unprecedented access to the region's resources. This presents significant opportunities for northerners to benefit from the growing global demand for natural resources. However, the increased development of the north will also bring about economic, social, and environmental change, as you all are well aware, of course.

Development is expected to result in increased economic activity and a new demand for construction of infrastructure, particularly maritime infrastructure.

With so much potential change, we must look at ways to continue to enable safe, secure, efficient and environmentally responsible marine transportation.

In this way, we can realistically hope to balance the effects of development with maintaining a robust level of environmental protection. One of the ways Transport Canada can do this is providing regulatory stability in order for industry operating in or near Canadian Arctic waters to make decisions with a degree of confidence.

In particular, we will continue to enforce the Arctic Waters Pollution Prevention Act, as well as the regulatory requirements under the Canada Shipping Act, 2001. To that end we will monitor vessels for compliance with our regulations and confirm that they are fit to operate safely in our waters. In addition, under the new Navigation Protection Act, harbours and bays in the Arctic will remain under Transport Canada oversight.

As shipping technology and practices change over time and international conventions are adopted, we compare them to our regulatory regime to identify opportunities, gaps, or conflicts. If any are found, the appropriate measures will be taken, potentially including seeking authority to amend legislation.

Another step we can take is identifying potential strategic marine transportation corridors in the north. Transport Canada is currently examining this concept with the Department of Fisheries and Oceans.

This approach would tactically direct some federal resources to help provide sufficient and sustainable levels of marine services in the North. In the longer term, it would also focus strategic planning and prioritize future investment.

Our upcoming chairmanship of the Arctic Council offers another opportunity to protect the North. In recent years, the Council’s role has shifted from information sharing and research to policy making and coordination of Arctic State activities.

This new focus provides an excellent opportunity for Canada to promote measures such as an effective international regulatory regime for vessels operating in the Arctic. Through our chairmanship we propose to encourage our Arctic Council partners to speak at the International Maritime Organization with a unified voice and to build consensus about the need for a strong international regime.

At the same time, we are continuing our efforts at the IMO to develop a mandatory polar code. A mandatory code would help protect the fragile Arctic environment by setting more stringent international standards for safety and pollution prevention in polar waters.

We are proposing to incorporate into the code many elements of our own regime for Arctic shipping that has been so successful for over 40 years. We will also cooperate with other federal departments, as well as the territorial governments, northern communities and our international partners, especially the United States, about appropriate standards for shipping in this unique area.

Mr. Chairman, climate change and global demand for resources are changing the lives of northerners. This requires marine shipping that is efficient, safe, and environmentally sound. Our existing regulatory regime is robust and we are now taking steps that we expect will improve standards for Arctic shipping internationally.

Thank you.

[The Chair, Conservative, Dean Allison]

Thank you very much.

We will now turn it over to Ms. Thomas.

[Jody Thomas, Deputy Commissioner, Operations, Canadian Coast Guard, Department of Fisheries and Oceans]

Thank you. Good morning. My name is Jody Thomas and I am the deputy commissioner of operations at the Canadian Coast Guard. I'm here today with Jacqueline Gonçalves, who is the director general of program requirements.

We are here to provide a brief overview of the coast guard's role in the Arctic and answer any questions the committee may have. Together with our colleagues from Transport Canada we will provide the committee with a picture of the regulatory framework, services, and activities that define our role in Canada's Arctic.

I've used a deck today for you because I think it's very important that you have a visual idea of some of the locations we are at and the things we do, so I hope you'll bear with me.

Warming temperatures are impacting traffic patterns in the Arctic. To date, maritime traffic in the circumpolar Arctic is already considerable and is expected to increase as access to these waterways increases. Commercial shipping and tourism in the form of cruise ships is also increasing. This slide illustrates some of the challenges transcending the Arctic and responding to incidents in Arctic waters.

In the summer of 2010 two vessels grounded in the Canadian Arctic, the motor vessel Clipper Adventurer and the motor transport Nanny. In particular, this slide shows the location of the Clipper Adventurer, an English cruise ship, which grounded in only three metres of water on August 28, 2010. The Canadian Coast Guard ship Amundsen was the closest available coast guard vessel to respond. It was 511 nautical miles away doing scientific experiments and at the time of the grounding it was 42 hours of transit to reach the site. Fortunately, there were no serious injuries nor any serious marine pollution from this grounding, but we were lucky.

Northern resource development is a growth industry with increasing opportunities for offshore oil and gas exploration and development as well as mining. As exploration increases we can and should expect larger ships and more traffic in an area where marine charting and surveying is less developed than in the south. This will increase the potential for oil pollution incidents.

Our mandate in the coast guard is to provide services to ensure the economical and efficient movement of ships in Canadian waters. The Canadian Coast Guard operates Canada's only national civilian fleet with a staff of approximately 4,500 individuals and 116 vessels of various shapes and sizes. Our services include search and rescue, environmental response, maritime communications and traffic services, aids to navigation services, waterways management services, and icebreaking services.

Our operations serve all parts of the country through the wide reach of the maritime communications and traffic services centres and approximately 17,000 aids to navigation. Coast guard vessels are also relied on to support other government departments and agencies in the delivery of their mandated responsibilities. For example, coast guard icebreakers are critical to delivering federal programs in exercising sovereignty in Canadian waters.

The Canadian Coast Guard has also moved forward on the following key initiatives: NAV areas, the polar icebreaker, environmental response, marine services fees, and international collaboration.

The world's areas are divided into navigational areas called NAV areas for the purpose of allocating responsibility to disseminate navigational warnings. The International Maritime Organization created five new NAV areas covering Arctic waters and in June 2011 Canada assumed responsibility as a NAV area coordinator and issuing authority for the dissemination of meteorological information and navigational warnings in the Arctic.

In support of providing continued safety and required services to the north, the Canadian government over the next 11 years will be renewing the Canadian Coast Guard fleet, including the addition of Canada's first polar icebreaker, the Canadian Coast Guard ship John G. Diefenbaker. The Diefenbaker will replace Canada's largest and most capable, most well-known heavy icebreaker the Canadian Coast Guard ship Louis S. St-Laurent as the new flagship of Canada's Arctic fleet.

The great news about the polar icebreaker is it will provide the coast guard with greater range capability and accessibility over the entire year in the Arctic, which is important as the shipping season extends and the breakup of ice is found in non-traditional areas.

The remoteness, length of coastline, and lack of infrastructure present important logistical response challenges for environmental response. This map shows the distribution of oil response equipment across Canada, including coast guard and private sector resources.

The coast guard has over 80 caches of response equipment, strategically located across the country. Over 20 of these caches are found in the Arctic. Through a federal government initiative, 19 Arctic communities were provided with Arctic community packs, or first response units, to address what is currently the greatest risk of spills in the Arctic: operational spills associated with fuel resupply.

In addition, there are three depots located in the north, which contain packages of rapid air transportable equipment ready for deployment across the Arctic. It is important to note that there are four Transport Canada certified response organizations in Canada located south of 60 degrees north. These response organizations have a number of equipment depots and trained personnel located across Canada. All ships of a certain class and oil handling facilities located south of 60 degrees north are required to have an arrangement with one of these response organizations. However, north of 60 degrees there are no Transport Canada certified response organizations pursuant to the Canada Shipping Act, 2001. It is the Canadian Coast Guard, industry, and Arctic community volunteers who comprise the primary response capacity to pollution from ships or unknown sources in Arctic waters.

Marine services fees are another aspect of our business that have implications in the Arctic. Since 2008, a moratorium on the Canadian Coast Guard marine navigation services fee has been in place for ships conducting community resupply for north of 60 locations. In 2012, the government established a permanent exemption on the marine navigation services fee for commercial ships undertaking community resupply activities while making transits in Canadian waters, between locations situated south of 60 and locations north of 60. This fee exemption does not apply to commercial ships devoted primarily to activities unrelated to resupply, including, for example, natural resource extraction, tourism, and refuelling of other vessels. This exemption took effect May 26, 2012.

We have a strong bilateral relationship with the U.S. Coast Guard, and we have jointly developed a Canada-U.S. joint marine pollution contingency plan. We also play an active role in international organizations, such as the International Maritime Organization and the Arctic Council, where important issues such as the international instrument on Arctic marine oil pollution preparedness and response are developed.

As head of the Canadian delegation—Jacqueline was the head of the Canadian delegation—the coast guard was an active member in negotiating a new international instrument on Arctic marine oil pollution preparedness and response with other Arctic states. The overall objective of the proposed agreement is to strengthen emergency cooperation and coordination among Arctic states in the event of an Arctic marine oil spill that exceeds one nation's capacity to respond. The proposed agreement will be presented to the Arctic Council foreign ministers for signature at their ministerial meeting on May 15, 2013, in Kiruna, Sweden, where Canada will take over the chairmanship.

Moving forward, as use and demands for services in our Arctic waterways evolve, the coast guard needs to position itself to respond appropriately.

Slide 12 indicates the shipping routes in the Arctic that have evolved based on the navigability of water. This slide gives you a sense of the most frequently used shipping routes as of last summer.

Slide 13 shows a picture of the Northwest Passage. For mariners, the routes run along the north coast, along waterways through the Canadian Arctic archipelago, connecting the Atlantic Ocean and the Pacific Ocean. Vessel traffic in the Northwest Passage is increasing. In 2012, there were 31 transits of the Northwest Passage, a 29.2% increase over the 24 transits in 2011. It is mainly pleasure craft that transit the passage—23 in 2012—with cruise ships, government vessels, tugs, and barges falling next, at two transits, and tankers and research vessels transiting once in 2012.

There is a romanticism about the Northwest Passage. It promises quicker transit from east to west. The reality is it remains treacherous and dangerous as the ice continues to break away and float south. As the coast guard explores how it plans to deliver services in the Arctic, the Northwest Passage will be a priority for our consideration.

The challenges in the Arctic are unique, and thus the Arctic requires innovative thinking. Replicating a transportation system similar to that found in southern Canadian waterways is not feasible, nor is it desirable. A strategic approach is required to focus marine transportation activities in the Arctic. A solid navigational support system—charts, buoys, icebreakers—and sufficient response capabilities for search and rescue and environmental response are critical for marine navigation in the north.

We need to be cost effective. From focusing services along key marine transportation corridors, the benefits are many: we enable economic development by better positioning ourselves to provide a level of safe, secure, and accessible navigation; we align with the objectives of the northern strategy and signature initiatives under the Arctic Council; and we provide a predictable level of service and presence. The Canadian Coast Guard and Transport Canada are exploring northern marine transportation corridor concepts with the aim of providing a strategic and focused approach to serving the north.

We thank you for your attention. We would be happy to answer any questions you may have.

[The Chair, Conservative, Dean Allison]

Thank you very much, Ms. Thomas.

We're going to start with the opposition.

Mr. Dewar, please proceed; you have seven minutes.

[Paul Dewar, NDP, Ottawa Centre, ON]

Thank you, Chair, and thank you to our witnesses today for their overview and concise presentations.

I'll start with Ms. Kinney and then go to Ms. Thomas.

We've heard from witnesses time and time again about the issue of climate change as absolutely critical, as being the primary focus, and certainly we've heard this from other members of the Arctic Council.

Can you tell us, do you have an actual strategic plan for climate change adaptation?

[Laureen Kinney]

Transport Canada is carrying out a considerable amount of work, under our policy group, on adaptation requirements. We have some funding that is being expended on research on permafrost changes and what kinds of impacts they would have on transportation, roads, etc.

We have a strategic approach. I'm not sure I would characterize it as a strategic policy per se, but it is certainly very much embedded in our work and is part of the activities we carry on.

[Paul Dewar, NDP, Ottawa Centre, ON]

Thank you.

Ms. Thomas.

[Jody Thomas]

In the coast guard, we tend to respond to what our client needs are based on the changes in the environmental conditions in the Arctic. As to the Fisheries and Oceans position on climate change, Renée would be best placed to answer that.

[Renée Sauvé, Director, Global Marine and Northern Affairs, International Affairs Directorate, Department of Fisheries and Oceans]

I can comment a little bit. DFO was also a recipient of part of the funding noted by Transport Canada. For our portion, our science sector has a plan over the next few years for its sunsetting money. There is a plan to develop the knowledge base of what climate change trends are happening that affect our business and what our department is responsible for. The second half of it is to identify the tools we need so that we can adapt to those changes.

That program is ongoing.

[Paul Dewar, NDP, Ottawa Centre, ON]

So it's ongoing. I'm curious, because as we take over the chair in May, it's obviously important that we have our position, from our country, on what we believe is important. We also have heard from witnesses and when we engage with other countries that they not only see this as an important issue but have strategic plans in place.

I look forward to hearing from different departments what the comprehensive approach will be. I'm glad to hear that this is being looked at.

I also want to delve a bit deeper into our approach to working with our partner countries.

Ms. Thomas, you mentioned that on May 5, I think you said, in Sweden they're looking at a sign-off among countries about working together in partnership. Is that a done deal in terms of the participation of all countries? Is there a document we can see, or is this something that has yet to be finalized?

[Jody Thomas]

On May 15 the document will be signed. Jacqueline was the leader of the delegation for Canada, so perhaps she can give you the details.

[Paul Dewar, NDP, Ottawa Centre, ON]

There's just one thing first; I'm sorry to interrupt.

Is it something that has already been negotiated, and are we able to have details of it for our committee? Obviously it would be important for our committee and our recommendations.

[Jacqueline Gonçalves, Director General, Maritime Services Directorate, Canadian Coast Guard, Department of Fisheries and Oceans]

Yes, the negotiations have concluded, and the treaty was really very narrowly focused on responding to marine oil spills in the Arctic. It's an agreement of cooperation among the eight nations of the Arctic Council to establish protocols, should there be an incident, for how we go about cooperating with each other to resolve the incident.

It's very specific in nature and is really operational.

[Paul Dewar, NDP, Ottawa Centre, ON]

Is it an agreement, then, agreeing upon its facets, while hammering out the details has yet to be determined?

[Jacqueline Gonçalves]

There are specific elements in the treaty that cover off essentially the life cycle of an incident. For example, if one country detected that an oil spill has occurred, how would we go about notifying each other; what kind of participation would we undertake; how would we call on others to work with us to resolve the recovery of the oil; how do we share best practices; how do we exercise and train? Those are really elements establishing protocols amongst ourselves so that we're not trying to figure them out in the midst of an incident.

[Paul Dewar, NDP, Ottawa Centre, ON]

Thank you. I guess we'll have that information shared with our analysts. This is a good segue in terms of our capacity.

Ms. Thomas, you mentioned what assets we have to cover. The map you showed us was interesting; it gives us a good visual. You enumerated all the assets we have, but when it comes to the north, can you give us an idea of how many of the assets we have could be used and dedicated to the north?

[Jody Thomas]

We have 20 caches of equipment dedicated to the north, and then we have three rapidly transportable large packs for a major spill.

The concept of marine pollution, no matter where it occurs in Canada, is that you cascade assets. Should there be a major spill anywhere in the country, including the Arctic, we would cascade all the assets up to the Arctic from anywhere in the country to respond. We also have the bilateral agreement with the United States, and we would rely on them and the assets they have to help us respond.

So we have 20 caches dedicated for the Arctic and then access to everything else that is located across Canada.

[Paul Dewar, NDP, Ottawa Centre, ON]

Help me, then, as someone who is not involved as much as you are in this. When you say “20 caches” and “assets”, what are we talking about?

[Jody Thomas]

We're talking skimmers, booms—all that kind of equipment that you use to respond to an oil spill.

[Paul Dewar, NDP, Ottawa Centre, ON]

Again, if we could have a breakdown of it for our analysts, it would be helpful for us.

One last question, hopefully concise enough to get a concise answer, is, in all of these areas that you're talking about—transportation, emergency response—are we meeting and engaging with all of our partners on the Arctic Council? In other words, is there a constant communication and a working with all of our partners in the Arctic Council on these issues?

[Jody Thomas]

In terms of the coast guard there is, absolutely. We belong to two other forums, the North Atlantic Coast Guard Forum and the North Pacific Coast Guard Forum, both of which have as members Arctic Council countries. We meet regularly and exercise regularly with them to ensure readiness and cooperation, for mutual understanding of what each country can do.

[Paul Dewar, NDP, Ottawa Centre, ON]

Great. Thank you.

Thank you, Chair.

[The Chair, Conservative, Dean Allison]

Thank you.

Mr. Dechert, you have seven minutes, please.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

Thank you, Mr. Chair.

Thanks, too, to our guests for being here today and sharing this interesting information with us.

I'd like to start with some questions for the coast guard.

I was very interested to see the map that you provided us of the Northwest Passage. First, could you tell me whether you see a significant expansion in commercial shipping in the Northwest Passage in the near to medium term? Can you give us some thoughts on how many ships per year in each category you think there would be over, say, the next five to ten years?

Secondly, as a pleasure boater myself I look at this and see that it's a circuitous route and that there are lots of islands. I wonder about the charting and navigational aids in the Northwest Passage. Maybe you could tell us a bit about how much of it is charted, what kinds of navigational aids there are, if any, and what you foresee as necessary in the next ten years to support the presumably increased number of transits that you're going to tell us about.