Thank you, Mr. Chair. My intention is to split my time with Mr. Fast. If you can let me know when I've hit about five minutes, I would appreciate it. Thank you.
Thank you, Mr. Miller, for coming here. Mr. Bell earlier said that he was pleased with your testimony. I'm not. I find there are a lot of things that I'm having a lot of difficulty with.
You've gone to some length today to talk about holding people responsible. This really is the problem with respect to a culture of fear: it's still focused on disciplinary actions for judgments and decisions that have gone wrong. It's not the full, fearless involvement of people in pointing out the types of things that would prevent accidents. You're still stuck in the mindset underlying what the panel found to be a culture of fear.
You've belaboured this point today. I have a real problem with that, when you are talking about your “progress”. In the last appearance, when CN was before this panel before, they went to some length to point out how far they're going in punishing employees, to the point where I asked the question whether they can provide to this committee the number of disciplinary actions taken against employees. That's how far they went in making that point.
If you want to really boil it right down, not long ago I asked Mr. Lewis, who headed the panel.... I said, you talk about the continuum—that's pages 73 and 74, “An Evaluation Tool for 'Safety Culture'”, and you can read this if you'd like—but the best practice that you're looking for is the full implementation of SMS, which is stage 5 in the continuum. That's the only best practice.
Air Transat, VIA, those who are on their way are close to that particular point. That's where you see that there aren't safety issues or there aren't real safety problems, the types of accidents we're seeing with CN.
I asked Mr. Lewis where, on that scale of one to five, he put Transport Canada as the regulator; he put us at about a three. I asked where he put VIA Rail; he put them at about a four. I asked where he placed CP; he said in the mid-range, which would be about a three. And what did he say about CN? “Well, I'd put them between one and two in terms of implementing adequate SMS.”
Step one—let's read it into the record:
At one end of that continuum is a company that complies with minimum safety standards and views compliance as a cost of doing business. That company minimizes compliance expenditures and operates from a short-term perspective, addressing problems only after it has been caught in violation. The regulator must engage in significant surveillance and enforcement activities.
That's stage one.
Stage two:
Next in the continuum is a company that views safety solely as compliance with current safety standards. Such a company has internal inspection and audit processes, as well as a system of reward and punishment. There is an assumption that compliance translates into safety, but such a company has not yet realized that compliance alone will not necessarily prevent an accident from happening. Intervention is still required from the regulator, though the approach may be more educational in nature.
That's pretty pathetic, Mr. Miller, and that's what they say about CN. You're asking us today to take your word that you're somewhere higher than that. You say you're not a four or a five—you're implying that you're a three—and that your long journey of culture change, you imply, has been started since 1986.
I'm not sure I'd be bragging that I started that long ago, because you have a lot further to go. Stage one and two: how do you respond to Mr. Lewis' assessment, Mr. Miller? I think the evidence backs him up.