Thank you very much, Mr. Chair.
It's great to be here today. It's nice to see everybody.
I'm going to take us through our main estimates and supplementary (C) estimates, but first I'd like to introduce who's at the table with me. I have Deputy Minister Louis Lévesque, Associate Deputy Minister Helena Borges, and our CFO for Transport Canada, Mr. André Lapointe.
I'm really grateful for the committee's work and its ongoing input into transportation issues. I continue to look forward to collaboration. I want to thank you for finishing up with Bill C-3 in a very expeditious manner so that we can continue moving that one through on a fast pace. I'm grateful for the committee's great work on that.
My officials and I are here to help explain how the funding that we're seeking is going to be a benefit to Canadians. As you know from the documents, we are seeking authorities in the amount of $1.656 billion.
The authorities that we're seeking for our 2014-15 main estimates are going to be directed to support some key priorities within our department. These are the priorities:
First, we will continue to refine and strengthen safety and security oversight for the entire transportation system.
Second, we're going to continue to contribute to our government's responsible resource development agenda.
Third, we want to improve Canada's competitiveness and critical transportation infrastructure.
Fourth, we will ensure that Transport Canada's policies, programs, and activities meet the needs of the transportation system in the long term.
Finally, we will adopt our government's efficiency and renewal measures.
I'm going to focus the rest of my opening remarks on some particular efforts that we have within Transport Canada. These are tanker safety, investment in key transportation infrastructure projects as part of our gateways and corridors strategy, and of course rail safety.
Turning to tanker safety, we are strengthening our tanker safety regime because we know it protects Canadians and the environment both today and tomorrow. We are anticipating higher growth in marine shipping for oil in Canadian waters, so in the main estimates, you'll note that we are requesting additional authorities in the amount of $15.8 million for world-class oil spill response. This is a 686% increase from the authorities that were sought in last year's main estimates.
What the regime is based on is this: we want to stop spills from happening in the first place. We want to clean them up if they ever happen, and we want to hold polluters liable for those spills.
This regime introduces new measures, such as increased inspections of foreign tankers in Canadian waters, expanded air surveillance and monitoring of ships in our waters, and a new incident command system to allow the Canadian Coast Guard to respond more effectively to incidents.
To help us achieve a world-class tanker safety system, we have an independent expert panel led by Gordon Houston, the former CEO of Port Metro Vancouver. The panel submitted its first report in November. It made 45 recommendations on how to strengthen the oil spill preparedness and response regime. We take this panel report very seriously and we are engaging communities, the marine industry, and provincial governments about the recommendations that the panel put forth.
The panel's work is going to continue. It's reviewing oil tanker safety measures in the Arctic, as well as marine transport of hazardous and noxious substances. I expect to get a second and final report later this year.
Recently I was in British Columbia and I was able to fly in one of the planes that's operated by our national air surveillance program. I met the team that does that work for us. It's quite the experience. It really did give me an opportunity to appreciate the importance of having those eyes in the sky to see what's happening in the water in very fast time and to see the great work that's being done in this program. I'm really happy that we're doubling funding for the program. That allows the team to significantly increase the number of hours the planes are in the air so that we can better monitor our coasts and ultimately deter potential polluters.
I was told by the team that they were actually the experts who were brought down to the gulf when we had the incident with respect to Deepwater Horizon and the spills. They were the eyes in the sky for the United States and provided all the data because we had that capability and the United States didn't. I'm very proud of this program and I know the great work that they do.
Turning to transportation infrastructure projects, economic action plan 2014 recognizes the importance of both trade and investment in Canada's economic future. The role of Canada's transportation system and infrastructure network is to support domestic and international trade in those markets. Through the main estimates we're seeking $702 million to support some important infrastructure projects through the gateways and corridors funding program.
We focus on supporting international trade with the U.S. and other key partners by ensuring integrated and efficient transportation systems across all modes.
We have to work with the other levels of government and the private sector to do so. We're investing in important infrastructure projects at border crossings and we're bolstering our efforts to coordinate infrastructure investment planning as part of our government's beyond the border initiative. We know that if we improve at the border, cross-border trade will go a long way to ensuring continued economic growth for Canada.
Finally, I would like to turn my attention to what is my top priority, and that's railway safety improvements. In the aftermath of Lac-Mégantic, our government focused on three elements of railway safety, very much like the world-class tanker system: prevention, preparedness and response, and liability and compensation.
One of the first things that happened was that Transport Canada directed rail companies to enhance the safety and security of their operations and to revise rules to apply to all freight trains and equipment, not just to locomotives.
Our government is also accelerating development of and amendments to regulations that are based on the recent amendments to the Railway Safety Act, including those regulations to require railway companies to obtain railway operating certificates once they've met baseline safety requirements, as well as allowing for the administrative monetary penalties because that adds an extra additional enforcement tool in the act.
Transport Canada is also accelerating the development of railway grade crossing regulations. The regulations were published in the Canada Gazette, part I, on February 8 for a 90-day comment period.
When we do these things, what we're saying is that we are committed to a safe rail transportation system,not only for our communities but in general for Canada's economic well-being as well.
We have directed companies that import or offer for transport crude oil to conduct classification testing of that oil and make the results available to Transport Canada. We've directed them to update their safety data sheets that they provide to the department's Canadian Transport Emergency Centre, or CANUTEC.
Our actions on railway safety have also included working with the other federal stakeholders. While the Transportation Safety Board of Canada continues to investigate the Lac-Mégantic derailment, it has delivered three key recommendations to improve the transportation of dangerous goods by rail and will provide its final report later this year.
On the last part, with respect to liability and compensation, I feel strongly that we have to hold polluters accountable for accidents, and that as Canadians, we should not be expected to cover the cost of damages. To this end, Transport Canada is consulting stakeholders on how to strengthen the existing liability and compensation regime for rail.
We want to make sure that in the event of an incident, there are sufficient resources available to adequately compensate victims, pay for cleanup costs, and protect taxpayer funds. This complements recent consultations by the Canadian Transportation Agency into the insurance coverage it requires of federally regulated railway companies when they issue the certificates of fitness to them.
To improve prevention, we have published, for comment, new regulatory standards for the DOT-111 railcars. These standards include using thicker steel for the cars, added top fittings, and head shield protection.
As well, Transport Canada has received and published reports from three industry-led working groups who were asked to examine various factors relating to the transportation of dangerous goods, and officials are reviewing these reports now.
We have to work with the United States because both countries need to ensure that the appropriate testing requirements and criteria for crude oil shipments are similar and that they apply proposed new and more stringent tank car construction standards to a broader range of products.
Finally, I want to assure the committee that our response standards on the transportation of crude oil are as rigorous as they need to be, given the increased volume of oil being shipped by rail. To achieve this Transport Canada is working with the Transportation of Dangerous Goods General Policy Advisory Council to develop requirements for the emergency response assistance plan for crude oil.
While all these actions demonstrate how we are working to strengthen the safety of railway transportation together, we have to remember that in general, statistics do show that Canada has one of the safest transportation systems in the world, and what we're doing is just reinforcing a great system and ensuring that safety remains a priority.
The initiatives I've outlined today demonstrate that our government is working to maintain transportation that is safe, secure, efficient and environmentally responsible. We do take this responsibility seriously, and we do welcome input from the committee regarding these efforts.
That concludes my remarks, Mr. Chair. I'd be happy to take any questions from the committee.