Thank you very much, Mr. Chairman.
We're here to respond to the committee's interest in exploring the subject of railway safety in Canada.
I will take some time to provide you with a description of the general foundation for railway safety in Canada, and then take you through the actions that Transport Canada has taken to respond to the more recent safety issues culminating in the minister's decision to launch an independent review of the key legislation governing railway safety in Canada.
Today I am joined by Mr. Luc Bourdon, Director General, Rail Safety. Luc has a considerable amount of experience in the rail sector. After working for 19 years in the industry, he joined Transport Canada, first in the Quebec City region and then here.
It is important to note that, as with companies in other modes of the transportation industry, railway companies are responsible for making the appropriate decisions to ensure that operations are safe and that they are in compliance with federal regulations, standards, and rules including requirements for infrastructure, equipment, operations and employee qualifications.
The railway safety management system regulations came into force on March 31, 2001. They require all federally regulated railway companies to document, implement and maintain a formal framework integrating safety into day-to-day operations, including safety and performance targets, risk assessments and maintaining and evaluating processes.
The implementation of a safety management system enables a railway company to demonstrate their commitment to safety by ensuring that it is a priority throughout the organization. This provides an additional level of safety to enhance Transport Canada's oversight program.
Transport Canada actively monitors the railways, and when railway safety inspectors discover an immediate threat to safe railway operations they have the legal responsibility and the authority to issue safety orders restricting the operation of railway companies. They may also place restrictions on the use of roadway crossings if they find a safety problem.
With the committee's interest in the more recent derailments of CN, I'd like to highlight the government's immediate safety action following an increase in CN's mainline track derailments in 2005. Transport Canada performed expensive targeted inspections and a company-wide audit of CN's safety management system.
To give you a sense of the scope, the inspections covered CN Rail operations across the country, examining 230 locomotives, 3,000 freight cars, 1,900 miles of track--or 3,040 kilometres, if you want--over 900 grade crossings, and 160 warning systems. The four-week audit of CN's safety management system from November 14 to December 10, 2005, focused on assessing CN safety management practices throughout the company.
Following this initial focused surveillance, the minister met with the president and chief executive officer of CN regarding safety issues on two separate occasions in 2006, and Transport Canada performed an additional series of targeted inspections on CN's property during the week of July 17, 2006. The results confirmed the need for immediate corrections to CN's safety management systems.
The department also took direct enforcement action, issuing 54 enforcement actions in fiscal year 2005-06 and 75 in 2006-07. These include 24 orders regarding CN operations and 52 notices on a wide variety of safety issues.
For example, while the Transportation Safety Board continues to investigate the cause of the CN derailment along the Cheakamus River in British Columbia in August 2005, Transport Canada immediately issued an order limiting train lengths on high-degree curvature, steep-gradient trackage in that area. Other actions taken by the department include issuing CN a notice and order imposing immediate operational restrictions on locomotives in the Lillooet subdivision as a result of the derailment near Lillooet, B.C., on June 29, 2006, which resulted, unfortunately, in two crew member fatalities.
On July 24, 2006, the Minister of Transport issued CN a ministerial order under section 32 of the Railway Safety Act, ordering the company to take the necessary corrective measures to address the deficiencies in the CN safety management system. While CN initially appealed to the Transportation Appeals Tribunal of Canada for a review of this order, senior management of the railway met with Transport Canada officials and agreed to provide a corrective action plan, which would bring the company into compliance with the ministerial order. CN submitted their action plan to Transport Canada on October 18, 2006, and following a review which confirmed that the requirements stipulated in the order had been met, on November 15, 2006, the minister informed CN in writing that the order is considered spent.
As you may know from recent media coverage and as is normal practice in these types of cases, the department was not able to release documentation related to the order, including the audit and results report, without following the appropriate access to information legislation. This process has now been completed, and the final inspection and audit reports are now available on the department's website.
To set the safety context for our discussion, it's important to know that according to the Transportation Safety Board figures, CN main track derailments decreased by 28% in 2006 over 2005. This number was reduced by a further 4% in the first quarter of 2007 over the same time period in 2006.
Although, as you have seen, Transport Canada has taken significant safety enforcement action across Canada over the past years to address these safety issues, it has become apparent that the current regulatory framework may not provide the full set of tools to effectively deal with them. There's also a view that the current framework needs to be modernized and better aligned with safety legislation in place for other modes of transport in Canada.
Accordingly, in December 2006, the government announced the Railway Safety Act review to improve railway safety in Canada and further promote a safety culture within the railway industry, while preserving and strengthening the vital role this industry plays in the Canadian economy.
More recently, the minister has announced an independent four-member panel that will conduct this important exercise. The panel is consulting a wide range of stakeholders, including the public, railway companies and their industry associations, railway company employees and their unions, railway customers, provinces and territories, municipalities, aboriginal and environmental groups as well as Transport Canada and other federal government departments and agencies. Efforts will also ensure an extensive range of access for input, including a website to accommodate input from the public.
I understand that Doug Lewis, chair, and Tim Meisner, executive director of the panel, met with the committee chair on May 1, and that the panel will provide a brief to study in the near future. The panel will prepare a report for the minister with findings and recommendations to improve railway safety, including possible amendments to the Railway Safety Act. This report is to be submitted by October 2007.
Thank you. It will now be our pleasure to take your questions.