Thank you, Chair and committee members, for the opportunity to participate in your study of Bill C-12.
One year ago, the Canadian Vehicle Manufacturers' Association, CVMA, appeared before this committee to raise our concerns about the rise in car thefts in Canada. Despite stronger regulatory requirements for Canadian vehicles in the form of mandatory engine immobilizers and the fitment of the same technologies in new vehicles in both Canada and the U.S., Canada's vehicle theft rate was growing significantly faster than that of the United States.
Since then, manufacturers have continued to improve deterrence and security systems to stop vehicle theft. The industry has also been actively working with stakeholders, including federal, provincial and municipal governments, insurance and law enforcement to better understand challenges and find solutions to deter vehicle theft.
These efforts alone cannot stop theft. Sophisticated transnational organized crime groups have targeted Canada, where the perceived risk of prosecution was low and the financial reward was high. To address this situation, we called for a comprehensive plan to target organized crime groups and close the export market for stolen vehicles.
Bill C-12 takes meaningful and necessary steps to target organized crime groups and secure our borders. These include strengthening Canada's anti-money laundering and anti-terrorist financing regime, including through stronger anti-money laundering penalties; amendments to the Customs Act obligating owners and operators at ports of entry to provide, equip and maintain facilities for any purpose related to the administration and enforcement of the CBSA mandate; and allowing the CBSA to access premises under the control of transporters and warehouse operators to perform examinations in places where goods destined for export are reported, loaded, unloaded or stored.
These measures, combined with the Government of Canada's border plan and Bill C-2, will make it more challenging to operate vehicle theft rings in Canada that primarily export vehicles to foreign markets.
The evidence is clear. More resources to secure our border and to target organized crime have already reduced theft rates in Canada. The increase in the number of stolen vehicles has been reversed, with 16,000 fewer vehicles stolen in 2024 compared to 2023. That's a 14% decrease. Through the first half of this year, auto theft rates have decreased by 19.1% compared to the same period in 2024.
To maintain and build on that success, increased border resources must be maintained. There is more that can be done to address new forms of theft. In response to enhanced vehicle security systems and police resources that are targeting theft, organized crime groups have now increasingly focused on auto financing fraud.
Organized crime groups are the root of the vehicle theft problem in Canada. Theft will persist as long as these groups find ways to profit from stealing vehicles while minimizing their risk of prosecution.
We applaud the actions taken by the federal government. We remain committed to working with all levels of government, insurance and law enforcement to continue to reduce vehicle theft here in Canada.
Thank you very much. I look forward to your questions.