Transport Committee on May 7th, 2019

[The Chair, Liberal, Judy Sgro]

We go on to Mr. Rogers.

[Churence Rogers, Liberal, Bonavista—Burin—Trinity, NL]

Thank you to our witnesses for being here today.

We heard from some previous witnesses at our last meeting as well that the proposed changes to this act are getting a lot of support and are pretty positive overall.

Wendy, from your perspective, you talked about engagement with local connections to manage challenges that may arise and about closing the loop. What kinds of challenges do you see and how would you use a local connection to make this a more effective process?

[Wendy Zatylny]

There were three instances that we had in mind. The first was on issues of non-compliance reporting. For example, if a shipper reports that a pilot is not available, that report goes to the pilotage authority. The pilotage authority is able to close the loop and inform the port authority that there might be either a slowdown or a delay in a ship arriving, so they can work together to better manage the vessel traffic within the port waters, the berthing requirements, the tug requirements and that sort of thing. If that reporting loop is taken out with the proposed centralization at Transport Canada, we support that, but we want to still make sure there is the ability to have a real-time connection or information loop back to the authority of, in this case, a non-compliance report that has been issued that will affect its traffic management and operations. That's one example.

The second example was with the issuance of waivers where, in the case I was mentioning earlier, the port authority and pilotage authority are able to work together to manage the vessel a bit more closely if they're aware of the full conditions of the waivers that are on that vessel.

The third area I was going to mention is in accident or incident investigation. Currently, as I said earlier, all of this vests with the Transportation Safety Board. They come in, take the data—they're very proprietary with it—and they go and do their investigation. It takes upwards of a year to receive the report—which speaks to the thoroughness of the investigation—but in the meantime, the port authorities and harbourmasters have to make some pretty quick operational decisions as to what will happen the next day or what conditions have to be changed, at least in the interim, to avoid such an incident while awaiting the report.

To loop back in the port authority, pilotage authority and Transport Canada is important.

[Churence Rogers, Liberal, Bonavista—Burin—Trinity, NL]

Thank you for clarifying that.

From B.C., Mr. Haakonson, you talked about the act having to trust the public and first nations. I think you said that you support this bill and the proposed changes and so on. This is just a very general question. Overall, does the bill meet your needs and expectations in the B.C. region?

[Roy Haakonson]

We were very comfortable when we saw the preamble purpose clause included in the act. We spent a lot of time within the coastal communities and there was a grey area or a vacuum about who the pilots serve. The impression with the communities was that somehow the pilots serve industry exclusively, whereas actually pilotage serves the people of Canada, the environment and public safety, in the same context that we all promote the economic well-being of Canada. I think the preamble purpose clause being included strengthens the act on how industry as a whole, shipping as a whole and pilotage as a whole will go forward for the next 20 or 30 years. Yes, we are satisfied with it.

[Churence Rogers, Liberal, Bonavista—Burin—Trinity, NL]

For the cruise lines association, Mr. McGarry, I think you are pretty positive about this bill and the proposed changes. It supports greater standardization from a national perspective.

There were some suggestions by some shipping industry people that it increases costs. Do you have any concerns around future potential costs to the cruise line industry?

[Michael McGarry]

The cruise industry, like any industry, is always looking at costs. We are a bit unique in the costs that we face as businesses that work on the ocean. A cruise lines competitor isn't so much another cruise line; it's actually a land-based vacation. Therefore, we're always mindful of costs—government regulations and fees—that will be passed onto our passengers, because if you have a family of four or a family of six, the difference in price from those additional fees could mean the difference between their taking a cruise and taking a land-based vacation. We're always mindful of that.

What we really seek is transparency with regard to costs, and dialogue and a business justification for any increases that may come up. We feel this bill provides important principles that should help to get to those things.

[The Chair, Liberal, Judy Sgro]

We will move on to Mr. Jeneroux.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Thank you, everybody, for taking the time to be with us here today.

Captain Haakonson and Captain Stewart, are my numbers right that 99.9% of your industry is incident-free, in terms of assignments and incidents with British Columbia Coast Pilots Limited?

[Roy Haakonson]

That's correct.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

You transport petroleum products.

[Roy Haakonson]

Yes, we do.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Do these measures make things safer for you and your pilots?

[Roy Haakonson]

With the amendments to the Pilotage Act, I think the golden moment through this whole two-year-long and very tiresome process was that the principles of pilotage—meaning unbiased independence—were enshrined. That was a fall-on-the-sword issue for us.

Going forward, when you're talking about mitigation, with the commitment to revamping risk assessment into a more streamlined process, I know that industry is worried about costs, and pilots less so. The risk-assessment process, the TERNPOL process and the PRMM process, are all lengthy, very in-depth procedures.

As far as energy goes, we're confident in the mitigation that we're presently using. The mitigation is rigid, but we're always open to better processes when we talk safety.

I think the amendments go a long way to moving ahead into the future. Technology does play a big part in it. Pilots embrace technology, but again, in the risk-assessment process, it's a new item. Pilots don't have an issue with including it, sir.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Are you aware of a major oil spill with a vessel under command of pilots?

[Roy Haakonson]

No, sir. Not in British Columbia.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Are you aware of anywhere else in Canada where there has been?

[Rob Stewart, Captain, Vice-President, British Columbia Coast Pilots Ltd.]

No.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

Bill C-48 makes 12,500 metric tons of crude oil the cut-off for loading and unloading on B.C.'s north coast. Do Canadian vessels of this size and smaller require pilotage services?

[Roy Haakonson]

At this time, no. They come under a standard of care, but 12,500 metric tons is mainly for home heating oil. It's domestic traffic.

[Matt Jeneroux, Conservative, Edmonton Riverbend, AB]

They don't require pilotage.

Last week, we asked your colleagues at the national association, as well as the Atlantic Pilotage Authority, about the impact of Bill C-48. I'd like to ask you about the real and theoretical implications of Bill C-48, the proposed oil tanker moratorium act. How does this concept of a moratorium sit with your organization?

[Roy Haakonson]

Answering as a B.C. coast pilot, whatever the government decides on the moratorium, or Bill C-48, the pilots will only move the product if it can be done safely. It's not our role to have personal opinions on such matters. We can be trusted to carry out all of our commitments responsibly and with the utmost regard to safety.

I'll back up a bit. If the government decides to move ahead on Bill C-48—meaning that it would like us to look at moving the oil on the north coast—that responsibility goes to the B.C. coast pilots, and we become an independent, unbiased authority that cannot be influenced by political, economic or community pressures. We make our decisions based solely on safety.

With the amendments in the Pilotage Act, that independence will be enshrined, so we're comfortable with the decision either for or against the moratorium. We wait on the government's decision.

[The Chair, Liberal, Judy Sgro]

Thank you very much to our witnesses. That was very informative.

I will suspend for a moment, while these witnesses leave and the next witnesses come to the table.

Thank you very much.

[The Chair, Liberal, Judy Sgro]

I'm calling the meeting back to order.

Thank you for your patience.

You will have to excuse the committee. This is the time where they have to manage to eat before they have to go back over to the House. There is no time for lunch, so this is the moment.

With us today from the Department of Transport, we have Sara Wiebe, the Director General, Air Policy; Colin Stacey, Acting Director General, Pilotage Act review; Julie Bédard, Director, Marine Pilotage Programs; and Dave Dawson, Director, Airports and Air Navigation Services Policy.

We have a fair number of people who are with us today. Also, from the Canadian Air Transport Security Authority, we have Nancy Fitchett, the Vice-President and Chief Financial Officer; and Lisa Hamilton, Vice-President, Corporate Services, General Counsel and Corporate Secretary.

From the Air Transport Association of Canada, we John McKenna, President and Chief Executive Officer; and from Nav Canada, of course, we have Neil Wilson, President and Chief Executive Officer.

Many are faces we have seen over the past couple of years. Welcome. Thank you very much for being here. We'll open up with the Department of Transport officials.

Mr. Stacey.

[Colin Stacey, Acting Director General, Pilotage Act Review, Department of Transport]

Thank you very much.

Thank you very much for the opportunity to talk to you about the proposed amendments to the Pilotage Act included in Bill C-97.

Marine pilotage is essential to ensuring safe navigation and preventing marine incidents and thus to protecting coastal environments. Much of the Pilotage Act has remained largely unchanged since it was created in 1972. An independent review of the act completed in spring 2018 under the oceans protection plan identified the need to modernize the legislation.

Building on the review's recommendations, the amendments in Bill C-97 would strengthen the safety, efficiency and transparency of Canada's pilotage system.

Let me begin with the amendments that would improve the safety regime. The act currently creates a system in which each pilotage authority is responsible for both delivering the services, on the one hand, and regulating pilotage requirements and enforcement, on the other.

Amendments transferring responsibility for developing regulations from the pilotage authorities to the minister of transport would separate the regulatory and service delivery roles and establish a nationally coherent pilotage system aligned with the Canadian marine safety and security regime.

The minister would also be responsible for issuing licences and certificates and for the oversight and enforcement of the pilotage system. The enforcement regime would be enhanced, bringing it into line with other marine safety legislation.

The reinforced compliance system would include administrative monetary penalties, which would allow Transport Canada officials to conduct regular oversight and to work with stakeholders to ensure compliance, and maximum fines would be increased for summary convictions for more serious contraventions, along with possible prison terms.

Furthermore, the minister would obtain the authority to issue interim and exemption orders and direction to pilots to deal with exceptional circumstances and promote innovation.

Where efficiency is concerned, the act currently requires pilotage authorities' fees to be set in regulations, resulting in unnecessary administrative burden and delays. The amendments would allow the pilotage authorities to directly set tariffs without regulations, subject to requirements for consultation and a process for stakeholders to submit objections to the Canadian Transportation Agency.

To augment transparency, the act would prohibit pilots, users or suppliers of pilotage services from being on pilotage authorities' boards of directors.

Furthermore, service contracts between pilotage authorities and pilots' corporations would be made publicly available, as these have implications for other stakeholders.

Amendments would prevent regulatory matters from being addressed in those service contracts, to ensure that regulations are established based on a thorough assessment of risks and consultation.

A new purpose and principles section in the act would increase national consistency and clarify the pilotage mandate. Moreover, arbitrators would be required to consider these principles in final offer selection processes between pilotage authorities and pilot corporations.

In conclusion, the proposed amendments address the most significant issues identified in the Pilotage Act review. The amendments provide for a stronger, modernized pilotage system with increased national consistency and greater efficiency and accountability.

I would like to thank you for your time, and I welcome any questions on these proposed legislative amendments.