Thank you, Mr. Chair and honourable members of the committee, on behalf of Marine Atlantic, for the invitation to appear before you today and for the opportunity to comment on the draft regulations.
Before starting, I would like to respectfully acknowledge that Marine Atlantic operates in Mi'kma'ki, the ancestral and unceded territory of the Mi'kmaq peoples, and on the island of Ktaqmkuk, the unceded traditional territory of the Beothuk and Mi'kmaq peoples.
By way of brief context, Marine Atlantic is a Crown corporation that operates the federally mandated ferry service between the island of Newfoundland and Nova Scotia. This connection is constitutionally significant. It was entrenched in the terms of union when Newfoundland and Labrador joined Canada, and it remains a vital transportation link for passengers, commercial traffic and communities.
At the outset, I want to state clearly that Marine Atlantic recognizes the importance of the Official Languages Act, including the recent amendments intended to reinforce substantive equality between Canada's two official languages. We take compliance seriously, and we continue to make meaningful investments to strengthen official languages capacity across our organization.
Our appearance before the committee today is not to diminish the importance of the act or our official languages responsibilities. However, we question whether these administrative penalties will achieve the desired outcomes, specifically in more rural areas such as ours.
There is a contradiction between the purpose of the draft regulations and their effect. Though the amendments to the act suggest that the purpose of a penalty is to “promote compliance” and “not to punish”, a penalty is by definition a form of punishment.
For administrative penalties to go beyond punishment and lead to compliance, the threat of the penalty must encourage change at an institution that is non-compliant. The logic is that priorities will shift if it is more cost-effective to be compliant, thereby leading the institution to invest the resources that allow it to comply with its obligations.
However, that logic does not necessarily hold true in all circumstances, particularly for organizations like Marine Atlantic operating in areas with limited markets for bilingual talent. Even after the administrative penalties come into force, Marine Atlantic will struggle to recruit bilingual talent despite ongoing investment and effort, which creates risk.
Similarly, we're concerned that penalties for type A violations may inadvertently result in reduced services to the travelling public in some circumstances. Third party businesses operating on our premises include small, sometimes family-run businesses such as food services and gift shops at our terminals. Marine Atlantic will likely be forced to eliminate such services if there is a risk of monetary penalties for non-compliance by those third parties.
We also have concerns about how these penalties may affect organizations like Marine Atlantic, which are heavily subsidized by public funds. We are a public service, and we do not operate on a profit-generating model. Any penalties imposed would ultimately reduce the funds that are otherwise directed toward delivering essential public service operations.
Compliance in rural regions is not simply a matter of money. Imposing penalties to promote compliance incorrectly assumes that the issue is a lack of investment in official languages, a lack of desire to recruit or retain bilingual talent or a lack of prioritization of official languages obligations.
Marine Atlantic welcomes measures that will help increase our ability to offer services in both official languages and promote linguistic duality in Canada. However, we fail to understand how these penalties will achieve those objectives.
With that in mind, we respectfully offer some recommendations for the committee's consideration if monetary penalties are imposed.
First, we suggest exploring flexible approaches that allow small, independent businesses in rural regions additional time and support to adapt to the regulatory requirements. We would also recommend that there be no mandatory minimum penalty for type C violations, allowing the commissioner to determine whether monetary penalties are appropriate in the circumstances for any type of violation, ensuring that the focus is on compliance and not punishment.
Finally, we respectfully recommend that funds from monetary penalties be reinvested directly into the affected organization for dedicated official languages education and training, which would more effectively strengthen bilingual service capacity than a punitive payment.
Once again, thank you for the opportunity to speak with the committee today. I would be pleased to respond to any questions you may have.