I appreciate that very much. I want to introduce Luc Bourdon and Carla White-Taylor from the department. They'll have answers to perhaps some of the technical questions, if we get that deep.
We're certainly pleased to see this piece of legislation move forward and to be able to get to committee.
It's interesting that we chose a day that is the 25th anniversary of a very serious accident that happened in my riding, as 23 passengers and crew died and 95 people were injured when a CN rail train collided with a VIA Rail train in Hinton, Alberta. It impacted the community and the riding a significant amount, so this is actually very fitting that we deal with some of the railway safety issues.
Significant improvements have been made since that time. I'm pleased to be here supporting this piece of legislation, which is Bill C-33. It's not the safety railways act; it's the Safer Railways Act. This new bill I hope will add or amend or make some of the changes that are necessary to be able to achieve a safer railway system. We believe the proposed amendments are essential, and not only essential but also timely. They respond directly to the recommendations of two different important studies on rail safety.
As members of the committee recall, a number of high-profile derailments happened between the years 2005 and 2006, another one in my riding actually, at Lake Wabamun, which I had some first-hand experience with. That was in Alberta. There was also in British Columbia the derailments at Lillooet and Cheakamus, and in Quebec there was one at Montmagny.
All of these raised some shortcomings in the safety system. As I said, I was a first-hand observer of the Wabamun incident. The last estimate was that CN's cleanup and compensation costs for that incident were over $130 million. When an accident happens on rail, it's very costly, in human costs, in financial costs, and very much potentially in environmental costs. So whatever we can do to mitigate these is where we want to go.
These incidents provided an impetus for the Minister of Transport to launch, back in 2006, a review of the Railway Safety Act. The objective was to identify possible gaps in the act and to make recommendations to further strengthen the regulatory regime. The Minister of Transport then tabled the review panel's final report in the House in March 2008, and that contained 56 recommendations to improve rail safety in Canada.
This committee, the Standing Committee on Transportation, Infrastructure and Communities, began its own study on rail safety in 2006. It accepted the review panel's recommendation and then actually tabled its own report in the House in May 2008, with 14 recommendations that actually built on those of the Railway Safety Act review.
Both reports identified key areas for improvement and recommended increasing Transport Canada's resources to allow it to strengthen the oversight and enforcement capacity and to implement new safety initiatives. Transport Canada has taken action on those recommendations through a variety of government, industry, and union initiatives, and through the proposed legislative amendments that we're asking for here to the Railway Safety Act. The amendments contained in this bill will further improve railway safety and make it more consistent with legislation on other modes of transportation such as air and marine.
Four key components of the legislation are new powers to crack down on rule-breakers, with tough new monetary penalties as well as increased judicial penalties, to strengthen safety requirements for railway companies, to create whistleblower protection for employees who raise safety concerns, and to require each railway to have an executive legally responsible for safety.
Additionally, railway companies will be required to obtain a safety-based railway operating certificate before they begin or continue to operate. The legislation includes a phased-in approach on the regulatory authority of the government to provide flexibility for smaller short-line railways to have a different risk profile than the large class A railways. And I think that's an important thing to note, not to be too hard on the short lines.
The amendments clarify the authority and the responsibility of the minister with respect to railway matters, stating that the act applies with respect to all railway matters within the legislative authority of Parliament. This will ensure that all companies operating on the federal tracks will be subject to the same high level of safety requirements.
Finally, to protect our natural heritage from potential harm, the importance of the environment and environmental management is also a good part of the emphasis of this piece of legislation. I know that full well when you saw what happened in Lake Wabamun, and let's hope that never happens again. While the amendments allow for the creation of more regulations, it's important to remember that an independent safety review panel recommended such amendments after very thorough research, very thorough consultation and consideration. The government agrees with their recommendations for the items that fall within federal jurisdiction because they will increase public safety of Canadians. It'll contribute to a stronger economy and cleaner environment. The rail industry is the backbone of our economy. Almost 70% of our goods and produce travel on rail. It's part of our historic legacy and should continue to serve Canadians well into the future.
I urge the committee to study the legislation very closely. If minor technical amendments can give more clarity, please bring them to my attention. Notwithstanding any minor amendments, I ask all parties to work together on this piece of legislation. It's really very much in the interests of all Canadians. It's got nothing to do with politics; this is all about safer railways and a culture of changing those safer railways. It's important that we get this piece of legislation through in a prudent manner. I hope the committee will give it its full attention and move it along quickly.
Thank you, Mr. Chair.
