Evidence of meeting #97 for Public Safety and National Security in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was vehicle.
A video is available from Parliament.
Executive Director, Canadian Vehicle Exporter's Association
I think it's part of our submission as well.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you.
On the money laundering, you referenced 86% of money-laundering cases not being followed up on within the justice system.
Executive Director, Canadian Vehicle Exporter's Association
There's an article that we cited in our larger piece to you, and that's a major problem. Organized crime really is the issue. Again, we can look at incarcerating every teenager or 20-year-old for three years. Are we putting them there to put them in prison, or are we putting them there to rehabilitate them? How do we get to the organized crime?
Again, we have the proceeds of crime act, but in talking to ex-RCMP officers, they say it's expensive, it's time-consuming and it's complicated. They usually just drop those cases and go after some kind of a civil forfeiture. That's great and would take away some money from organized crime now, but in the long run they're going to make that money back.
We really have to have the overall approach. We have to get the offenders off the street now. Again, do we try to rehabilitate those so they'll have a better life going forward, or do we adjust the head of the snake?
NDP
Peter Julian NDP New Westminster—Burnaby, BC
This issue of financial crime has come up repeatedly. We saw under the former Conservative government how weak they were on financial crime. Tragically, the Liberal government hasn't really taken the initiatives that are important in this respect, including putting in place a publicly accessible beneficial ownership registry that helps to crack down on money laundering.
Would you say that's a key component? If we're talking about a multi-faceted approach to auto theft, that cracking down on financial crime and money laundering is an important component.
Executive Director, Canadian Vehicle Exporter's Association
One hundred per cent, yes.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
Mr. Chair, I have just a point of clarification. Mr. Adams, in response to Mr. Bittle's question, talked about insurance rates and StatsCan.
Was that right, or was it theft rates? Either way, will you commit—
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
It's theft rates. Will you commit to table that with us?
Liberal
The Chair Liberal Heath MacDonald
Thank you.
That is the end of the first panel. Thank you for coming here today. It was a great discussion on a very important issue.
We're going to suspend for approximately five minutes.
Liberal
The Chair Liberal Heath MacDonald
I would like to welcome our second panel of witnesses.
In person is Mr. Dan Service, principal, VIN Verification Services Inc. By video conference are Pierre Brochet, president, Association des directeurs de police du Québec, and, from the Canadian Association of Chiefs of Police, Thomas Carrique, commissioner.
Up to five minutes will be given for opening remarks, after which we will proceed with rounds of questions.
Welcome to all. I now invite Mr. Service to make an opening statement.
Go ahead, please.
Dan Service Principal, VIN Verification Services Inc.
Good morning to this committee and to you, Mr. Chair.
Thank you for having me here today to discuss the ongoing problem of auto theft in Canada.
My name is Dan Service. I am the founder and CEO of VIN Verification Services. I founded this company after a 25-year career with the Edmonton Police Service, which included responsibility for the economic crime and commercial auto theft sections. After retirement from the service, I spent three years with the Insurance Bureau of Canada, concluding there as their national director of investigations.
VIN Verification Services has been the exclusive service provider to Alberta Transportation for vehicle examination and VIN issuance for the past six years and, since 2020, the exclusive service provider to Saskatchewan Government Insurance. In fact, we are the only company in Canada under contract to conduct VIN examinations and issue VINs on behalf of government. We have completed more than 21,000 examinations in Alberta and Saskatchewan since 2018 and have recovered over one million dollars' worth of stolen vehicles.
You heard in this committee that stolen vehicles have three possible end destinations. The first is the ports. This has been extensively discussed. The second is being chopped and salvaged for parts. The third and probably most troubling is vehicles being revinned, registered, given credibility by their provincial government registry and then resold to unsuspecting consumers within Canada.
What can be stated is that both provincial and federal governments have a responsibility to provide legitimate oversight to the issue of vehicle theft. While responsibility for the export of stolen vehicles rests with the Canada Border Services Agency, the legitimacy of vehicle registration and VIN issuance rests with the provinces. While every provincial government has the obligation to issue VINs as part of their vehicle registration process, not all provinces are created equal, nor have they approached the issue of VIN issuance with the same rigour and care.
VINs are the key to legitimizing stolen vehicles back onto the registry and into the consumer market. Our experience administering the program tells us that problematic VINs occur in approximately 1% to 2% of the vehicles annually registered.
In Alberta and Saskatchewan, we conduct roughly 4,000 vehicle examinations every year for a population of five million people and a total vehicle registration of approximately 140,000. The Province of Ontario registers roughly one million vehicles every year with a population of 14 million people. However, in Ontario, there is no exam process and no examination entity. For many provinces, there is simply no one to call.
Of the 1% to 2% ratio of problematic VINs expected in Ontario, we believe there are between 10,000 and 20,000 vehicles being added to the registry every year that, in other jurisdictions, would be required to undergo a mandatory exam. This is where stolen vehicles are being hidden, reintroduced onto the registry and given legitimacy by our provincial governments.
Of course, an assigned VIN program is only as effective as the registry's ability to require and conduct an examination. A rigorous assigned VIN program that utilizes trained professional VIN examiners to confirm vehicular identity at the point of registration and that has the authority to issue VINs to vehicles that qualify for them is crucial to stemming the flow of stolen vehicles within Canada. Making stolen vehicles harder to sell and increasing the likelihood of being caught reduces the criminal motivation to steal them.
As a starting point, every vehicle applying for a provincially issued VIN must be examined prior to VIN issuance. Every vehicle with a problematic VIN should be mandated to undergo examination. Any vehicle that gets registered by a province that does not have a rigorous assigned VIN program should undergo an examination. Lastly, if the top-10 list of stolen vehicles annually supplied by the insurance industry has credibility, the top three or top five vehicle types on that list should automatically be required to undergo VIN examination prior to registration renewal or ownership transfer.
Our outreach to the Government of Ontario, since 2020, has focused on how Ontario has become a breeding ground for this type of criminal revinning activity. They need to update their VIN assignment and verification processes to give their registry any credibility. Our message to other provinces without an assigned VIN program would be exactly the same.
The answer is clear. An assigned VIN program assures credibility of the vehicle registry systems in Canada, better protects Canadian consumers, benefits law enforcement by reducing calls for service, benefits the insurance industry by recovering vehicles and reducing payouts, and creates a deterrent to the sale of stolen vehicles.
Thank you for your time today. I look forward to answering any questions of the committee.
Liberal
Pierre Brochet President, Association des directeurs de police du Québec
Mr. Chair and honourable committee members, the Association des directeurs de police du Québec, or ADPQ, would like to thank you for inviting us to share our thoughts on the issue of car thefts in Canada.
Not so long ago, car theft was seen as a minor, almost trivial matter. But, as we all know, times have changed. Car theft now means violence and criminal gangs.
We now know that car theft is committed by organized networks prepared to use violence in order to escape any kind of justice. As well, these networks are exploiting weaknesses in shipping security, with the Port of Montreal being one of their prime targets.
In 2023, over 15,000 vehicles were stolen in Quebec. That's an increase of 57.9% over three years.
At the risk of repeating myself, with these thefts we are now also seeing an escalation of violence, which poses a very real threat to the public and police. Recent attacks on police officers are particularly troubling.
It is now clear, dear committee members, that car theft is no longer limited to mere property damage; it also affects the peace of mind of our neighbours, our police officers, and the safety of our cities and roads, making this an issue that requires the entire country's attention.
In the face of this growing threat, as seen by the recent summit organized by the federal government, there is now a collective will to come up with an aggressive response to these crimes and to dismantle the criminal networks that support them. The summit was certainly a crucial first step, to create an open and inclusive dialogue with all stakeholders. However, it is clear that this is just the beginning of a process that will require our full commitment and meaningful action.
That is why the ADPQ is making a number of recommendations to respond seriously to car theft.
First, it is imperative that we toughen the current legislative standards in four areas.
We are all aware of the challenges surrounding public security. Car theft puts a spotlight on the very integrity of Canada's ports, which is critical infrastructure for our country. We need to take a hard look at the security of our ports, understand how car thieves operate, and take aggressive and decisive action. We must fight organized crime infiltrating our ports.
For example, we need to tackle head‑on the critical issue of hiring and conducting security checks of Canadian port employees and the regulations involved. It's time to take firm action by bringing in new legislative standards to address this situation.
That's why we're proposing concrete measures to protect the integrity of our ports, particularly the selection processes and security accreditation system for all Canadian port employees. This is in addition to reviewing the relevant regulations.
Given the situation, we also need to go a step further by giving police the critical task of conducting security checks of Canadian port employees. That way, we can conduct thorough, impartial background checks.
Second, we need to force carriers to ensure that the container contents match the container manifest. In other words, they need to be liable for what they carry.
Third, the Canada Border Services Agency, or CBSA, must be required to carry out a certain percentage of random inspections of container contents. On that note, allow me to commend the government's financial commitment to this agency, which plays a critical role in combatting car theft. However, I will add that, if necessary, depending on new demands on the CBSA, it would be worth taking a look at restructuring the agency.
Finally, we also need to toughen the statutory standards for automakers. They must be forced to improve their vehicles' built‑in safety features. For example, this could mean requiring all new vehicles to be fitted with a personalized immobilizer, or bringing in a time limit of one hour or more before a key can be reprogrammed.
That said, it's important to recognize that beefing up our legislative standards won't be enough. We also need to recognize the critical importance of the investigative and intelligence work carried out by law enforcement by establishing joint teams funded through the federal budget; roll out effective tracking systems and surveillance networks on our highways, based on what is being done in the United States; and continue educating the public about how to prevent car theft.
Dear committee members, the ADPQ recommends that these robust measures be implemented as soon as possible.
We firmly believe that by joining forces and by taking a multidimensional approach, we can actually do something to stop the massive problem of car theft. With this in mind, the ADPQ wishes to stress the importance of close co‑operation with the relevant authorities, the industries involved, and civil society to ensure that these initiatives are effective and sustainable. Together we can create a safer environment for our communities and deter crime.
Thank you.
Liberal
The Chair Liberal Heath MacDonald
Thank you, Mr. Brochet.
I now invite Commissioner Carrique to go ahead, please.
Commissioner Thomas Carrique Secretary-Treasurer, Canadian Association of Chiefs of Police
Thank you.
Chair, vice-chairs and committee members, on behalf of the Canadian Association of Chief of Police, thank you for the opportunity to discuss the dramatic increase of auto theft in Canada and opportunities to combat this concerning public and officer safety trend.
I very much appreciated participating in the federal government's National Summit on Combatting Auto Theft, which took place a few short weeks ago on February 8. The summit provided police with the opportunity to collaborate with government officials and industry stakeholders to address the complexities of auto theft, including the role of organized crime in this growing criminal market. The national summit was an excellent first step. The Canadian Association of Chiefs of Police is looking forward to working with the many partners who have committed themselves to working jointly toward identifying and implementing solutions during the summit.
I'm aware of the alarming statistics and safety concerns presented to you earlier this week by the other police witnesses who appeared before you on February 26. To add current context, since the national summit on February 8, there have been over 3,000 automobiles stolen in Canada.
Passenger vehicle thefts are not new to the Canadian criminal market. There are well-documented cases of organized crime groups smuggling stolen vehicles in shipping containers to overseas locations dating back to the 1990s. Generically, the incidence of auto theft decreased significantly in the period leading up to and certainly after a 2007 Transport Canada regulation that mandated vehicle manufacturers to equip all new vehicles with anti-theft engine immobilizers.
Despite these advancements, the criminal element eventually found technological means to manipulate and defeat these technologies. Organized crime has seized upon being able to defeat the advancements in anti-theft technology, while concurrently exploiting the disruption of the global supply chain caused by the COVID-19 pandemic. That led to a shortage of vehicles and vehicle parts, substantially impacting supply and demand and thereby dramatically increasing the value of used vehicles.
Today organized crime has a strong hold on the illicit transnational auto theft market. It's estimated that 80% of passenger vehicles are exported, and 10% of these vehicles are revinned and sold domestically, with the remaining 10% being chopped down and sold for parts. The lucrative international market of stolen Canadian vehicles has surged, as many of the desirable vehicles are readily available in Canada and are either very costly internationally or simply not available for purchase in those countries they're being exported to. For substantial profits, criminal networks are exploiting and exporting stolen vehicles to foreign buyers, with the majority of these vehicles destined for Africa and the Middle East.
As you've heard from my policing colleagues, police leaders, officers, their families and the public alike are all very concerned about the increased level of violence associated with passenger vehicle theft. Reckless offenders, many of whom have previous convictions for robbery, auto theft and weapons offences, or are out on bail for similar crimes, are committing violent carjackings and home invasions to gain access to certain sought-after vehicles. In doing so, they are endangering the lives of the public and our officers. Unfortunately, there are countless examples of vehicle owners having their vehicles stolen at gunpoint and of officers and/or their vehicles being struck or run off the road by violent offenders attempting to flee in stolen vehicles.
In response to this public and officer safety concern, and to disrupt the illicit transnational market being controlled by organized criminal networks, the profits of which often finance other criminal activities ranging from drug trafficking and arms dealing to human smuggling and even international terrorism, Canadian police leaders are calling for a strengthening of port security and monitoring mechanisms, including inspections and the use of technology, to disrupt the illegal export of stolen vehicles.
We're calling for regulating advancements in anti-theft technology to disable, track and recover stolen vehicles, along with restricting the sale of tools utilized to defeat anti-theft systems. We're calling for verification of third party vehicle registration, the physical inspection of problematic VINs during the registration process, and the creation of a national system for vehicle registrations.
Specific to the theft of motor vehicles, we're calling for stronger minimum sentences for repeat offenders, the creation of new offences related to trafficking and/or the exporting of stolen vehicles, and exercising the full range of Criminal Code penalties currently available.
In closing, by working collaboratively with government and industry stakeholders, collectively, we have an opportunity. In fact, we have a responsibility to better serve Canadians by taking the necessary actions to disrupt and dismantle the organized criminal networks involved in auto theft, thereby improving—
Liberal
The Chair Liberal Heath MacDonald
Thank you, Mr. Carrique.
We're going to move right into questions with Mr. Shipley, please, for six minutes.
Conservative
Doug Shipley Conservative Barrie—Springwater—Oro-Medonte, ON
Thank you, Chair.
Thank you to all the witnesses for being here this morning.
I'll start off with Commissioner Carrique. You're awfully close to my home right now. I hear we had over a foot of snow last night. It's nice to see you made it in safely.
Recently, you stated that auto theft is highly profitable with little risk, and in Ontario, you see 68% of those convicted serving a sentence of six months or less. I would like to quote you, sir. You stated, “We need to see stiffer penalties. We absolutely need to have a deterrence for these crimes.”
Could you please state to the committee what impact stiffer penalties would have on your ability to address the auto theft crisis?
Commr Thomas Carrique
Yes. Thank you for the question, sir.
I believe that stiffer penalties would provide two deterrents for us.
The first is deterring criminal offenders, obviously, due to substantial consequences for committing offences.
Second, many of these offenders are repeat offenders. If they are incarcerated for longer periods of time, they are, in fact, not out in the community and able to victimize innocent Canadians by engaging in these criminal activities that they do over and over again.
Conservative
Doug Shipley Conservative Barrie—Springwater—Oro-Medonte, ON
Thank you for that, Commissioner.
To follow up on that, you also stated, “We want to stop the revolving door of people coming back out on our streets and doing it again.... We want to have them locked up, we want to have them in jail.”
Conservatives currently have a private member's bill, Bill C-379, which would create a mandatory minimum of three years in jail for those who have stolen a motor vehicle three times. Just this past week, we had a deputy chief from Toronto and a deputy chief from Peel, and they both agreed that this would be a good deterrent if it passed.
Do you feel that Bill C-379 would be a good deterrent to help with car theft and the revolving door issue?
Commr Thomas Carrique
I believe that increasing the minimum penalties would be a deterrent. Right now, there is a minimum penalty of six months on a third offence. I do not believe that is strong enough. I believe there's a lot of merit to increasing the minimum penalty, and that bill you referred to is a good place to start the discussion.
Conservative
Doug Shipley Conservative Barrie—Springwater—Oro-Medonte, ON
Thank you.
I'll move on to Mr. Brochet, for just a quick question. You mentioned recently in a radio interview that the Laval police are frequently arresting criminals for vehicle thefts, but they are being released on bail and are back on the streets within hours.
Are the government's bail policies hindering your efforts to address the auto theft crisis and to get these criminals off the streets?