Thank you very much.
In response to a number of significant marine accidents, the International Maritime Organization instituted SMS through the incorporation of the international management code for the safe operation of ships and for pollution prevention, which is called the International Safety Management Code, or the ISM Code. It was introduced into the International Convention for the Safety of Life at Sea, SOLAS, in 1998.
All countries that are signatory to SOLAS have implemented the ISM Code. Pursuant to the Canada Shipping Act, Canada implemented the ISM Code in 1998 by introducing the safety management regulations.
As Canadian vessel operators recognize the benefit of SMS, many have adopted the ISM Code voluntarily.
Currently the safety management regulations apply only to vessels subject to the SOLAS convention. However, Transport Canada is proposing to amend the safety management regulations to apply to the Canadian domestic fleet. As a result, preliminary consultations were initiated in the fall of 2010, and consultations will continue through 2013.
The proposed regulations will apply to the following vessels and the companies that operate them.
A Canadian vessel subject to chapter IX of SOLAS currently covered by the safety management regulations will have an SMS audited and certified.
We are proposing that a Canadian vessel of 500 gross tonnage and upwards have an SMS audited and certified.
We're proposing also that a Canadian vessel certified to carry more than 50 passengers have an SMS audited and certified.
For smaller vessels that are more than 24 metres in length and less than 500 gross tons, we propose to have SMS but no audit and certification requirement.
We are currently preparing alternate means to encourage SMS and safety culture on smaller vessels. For instance, we are publishing an online SMS manual and guidelines. The work towards the development of the regulation is well under way. Drafting of the proposed regulation is targeted for completion by the second quarter of 2014.
We strive for continuous improvement. Amending the safety management regulations will improve the safety culture of Canada. By moving forward with the proposed regulations, Transport Canada would establish one set of safety management requirements based on the International Safety Management Code.
In addition, this will facilitate industry's ability to comply with regulations and other requirements, which will improve safety performance overall. It will also enhance risk management, information sharing, and allow for flexibility and innovations. Companies will be able to develop safety management systems that reflect their specific operation; each SMS is tailored for the individual vessel and its operator.
Finally, as part of our effort to improve continuously, we are preparing alternate means of encouraging SMS and safety culture on smaller vessels, leveraging and educating municipalities and provinces involved in the issuance of commercial licences and compliance programs. We are informing underwriters and proposing to increase the number of agreements with provincial compensation boards.
Thank you.