Transport Committee on Oct. 29th, 2024

[The Chair, Liberal, Peter Schiefke]

I call this meeting to order.

Welcome to meeting number 134 of the Standing Committee on Transport, Infrastructure and Communities.

Before we begin the meeting, I want to remind all in-person participants to read the best practices guidelines on the cards on the table. These measures are in place to ensure the health and safety of all participants.

Today's meeting is taking place in a hybrid format.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, September 18, 2023, the committee is commencing its study on the regulation of recreational boating on Canada's waterways.

All witnesses have completed the required connection tests in advance of the meeting.

I'd now like to welcome our witnesses, colleagues.

From the Boating Ontario Association, we have Mr. Rick Layzell, chief executive officer, joining us by video conference.

From Memphremagog Conservation Inc., we have Ariane Orjikh, general manager, by video conference. From the Municipalité de Lac-Simon, we have, also via video conference, Chantal Crête, councillor; Jocelyn Martel, councillor; and Benjamin Furtado, director of urban planning and environment.

We will now begin with opening remarks.

For that, I will turn it over to you, Mr. Layzell. You have five minutes, sir.

[Rick Layzell, Chief Executive Officer, Boating Ontario Association]

Thank you very much to the chair and the committee for the opportunity to speak with you today.

My name is Rick Layzell. I am the CEO of the Boating Ontario Association, a non-profit association that has represented Ontario's recreational boating industry since 1967. Today, we serve the province's $4.5-billion boating community and represent some 520 member businesses.

I am also the president of the Canadian Marine Retailers Association, which is a collaboration of all five of Canada's marine trade associations, including Boating Atlantic, Nautisme Québec, the Mid-Canada Marine and Powersports Dealers Association, Boating BC and, of course, Boating Ontario. The Canadian Marine Retailers Association, CMRA, collectively represents over 800 member companies in Canada's $9.2-billion boating community. We generate $4.6 billion in tax revenues for municipal, provincial and federal governments. Recreational boating is a critical and important element in Canada's tourism industry. In countless markets across rural Canada, recreational boating is the very lifeblood of the community.

We appreciate the opportunity to be here today to contribute to the analysis and regulations pertaining to recreational boating on Canada's waterways. The health, viability and growth of recreational boating in Canada, alongside our passion for healthy waterways, benefits thousands of Canadian families and communities. To that end, I would like to touch on several topics.

The first is the industry's request to receive top-line retail sales data to guide and grow Canada's recreational boating sector. Industry data is used in all sectors to effectively guide small business owners on inventory needs, parts-on-hand requirements, service shop expansions, marketing strategies and much more. As Canada's recipient of the data, Transport Canada plays a vital role in this growth strategy. The vessel registration process today requires industry and consumers to report sold and purchased boats to Transport Canada, and the data being collected represents the very data being requested by industry to move this forward.

The second is the impact of aquatic invasive species and the industry's role. Few boaters would argue that clean and healthy waterways are paramount to our passion for fishing, water sports and cruising. Those of us who make our living servicing these customers know full well the importance of clean waterways. In 2025, Boating Ontario will celebrate the 30th anniversary of our Clean Marine environmental best practices program. To be accredited the right to fly the Clean Marine flag, members must successfully pass an in-depth, in-person audit every third season. The Clean Marine audit includes analyses on many environmental best practices, including a commitment to waterways conservation.

With regard to flare recycling, Transport Canada mandates boaters to carry a select number of flares on board their vessels. These pyrotechnic devices expire after a select period of time, and for many years, Transport Canada funded a flare recovery collection program with the Canadian Power and Sail Squadrons. This program was suddenly halted in 2024, and since then, thousands of expired flares are now found beside or inside marina waste bins or are left on board customers' vessels.

The final one is the issue of mandatory PFD or life jacket wear, an issue that Transport Canada is currently consulting on. Transport Canada's recently released survey on mandatory PFD wear through Let's Talk Transportation guides respondents to replies that are only in favour of mandatory wear. To that end, we have pulled together and submitted our own written comments.

While our industry stands prepared to immediately support mandatory wear in select circumstances, we require making a more meaningful evidence-based decision. With that in mind, we would support the implementation of a three-year national law enforcement survey, inclusive of all marine enforcement agencies, to gather comprehensive data on the size and type of watercraft involved in safety incidents. This survey will provide critical insights into the relationship between vessel size and safety outcomes, enabling policy-makers to make informed, evidence-based decisions with regard to the potential extension of mandatory PFD wear requirements to different sized vessels.

As representatives of Ontario and Canada's recreational boating sector and as a key stakeholder for the interests of boaters everywhere, we appreciate this opportunity to be here today. Boating Ontario and the Canadian Marine Retailers Association are committed to advocating for policies that grow the sector and that manage the health of our waterways while protecting the rights of boaters across Canada.

Thank you very much, again, for this opportunity. I do look forward to receiving your questions and comments.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Layzell. Your timing was perfect. You were at five minutes on the nose. We appreciate that here.

Thank you.

I now give the floor to Ms. Orjikh for five minutes.

[Ariane Orjikh, General Manager, Memphremagog Conservation Inc.]

Good afternoon.

My name is Ariane Orjikh. I am a biologist and general manager of Memphrémagog Conservation Inc., also known by the acronym MCI, a non-profit organization whose mission, since 1967, has been to protect Lac Memphrémagog.

Lac Memphrémagog is the largest waterway in Estrie. It is the drinking water reservoir for more than 175,000 people, including the cities of Sherbrooke and Magog. Consequently, the quality of its water is a major public health issue for the region. The lake is 44 kilometres long and 75% of the lake lies in Canada, while the remaining 25% is located in Vermont. On the Canadian side, the lake is surrounded by six municipalities and has more than 2,000 waterfront residences.

The lake is a major tourist attraction for swimming, fishing and recreational boating. In 2010, 4,137 permanent watercraft were recorded on the Canadian side alone. In 2021, 5,203 permanent watercraft were observed, an increase of 1,000, or 25%, in only 11 years. The types of watercraft that most increased in number were paddleboards and kayaks, as well as motorized jet skis and big wake boats, which are used in sports, such as wake surfing, that generate oversized waves. A 2021 survey of 643 Lac Memphrémagog users showed that waves that disturbed other users and threatened their safety were significant issues that could be explained by the increasing numbers of light watercraft that were forced to coexist with a growing number of boats generating oversized waves.

The environmental impact of oversized waves is well known and scientifically documented. A study by the Université du Québec à Montréal shows that sports that generate oversized waves at least 300 metres from shore cause shoreline erosion. A Université Laval study found that sports that are practised in water less than seven metres deep stir up bottom sediments. As a result, in certain areas of Lac Memphrémagog, waves from watercraft reduce water transparency, increase concentrations of nutrients and trigger harmful algal blooms, also called cyanobacteria, which can be harmful to human health. It should be noted that Lac Memphrémagog has experienced a serious proliferation of harmful algae in recent years, a problem that was the topic of a study conducted by the International Joint Commission in 2020.

We often cite the example of Lac Memphrémagog's Fitch Bay, a sector known for its aquatic bird gathering area, its spawning grounds for many fish species and the habitat of the bridle shiner, which has been designated an endangered species by the Canadian government. In addition, 17 of the total 100 or so properties are waterfront properties that have boats that generate high wakes. Fitch Bay is 3.1 metres deep with a maximum depth of only 5.8 metres. Water quality in the bay is a concern, harmful algae blooms are frequent and sports that generate oversized waves in the area cause significant problems.

Which is why, in 2016, the regional county municipality of Memphrémagog struck a committee to analyze the possibility of restricting certain boating practices in specific problem areas. Since one step in the procedure prescribed by Transport Canada was to attempt substitute solutions other than restriction, an awareness campaign was launched. Eight years later, recreational boat owners are still generating waves near the shorelines and in shallow areas. Awareness efforts require significant financial and human resources, rely on the goodwill of pleasure boat owners and must constantly be repeated for the benefit of new visitors.

Even in the event of a major environmental and safety issue, municipalities seeking to remedy the situation by regulation have no other choice but to follow a tedious and bureaucratic procedure prescribed by Transport Canada for each of their waterways. Since the environmental impact of oversized waves is well documented, Vermont has decided to regulate big wake boats on all its waterways. Consequently, to protect Canada's lakes, Memphrémagog Conservation Inc. believes it is essential that the federal government establish national standards for all of Canada's lakes based on scientific data and that it simplify the restriction application procedure that local administrations are required to follow.

Thank you.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Ms. Orjikh.

Ms. Crête, you have the floor for five minutes.

[Chantal Crête, Councillor, Municipalité de Lac-Simon]

Thank you very much.

We are three representatives of the Municipalité de Lac‑Simon, and we have asked the director of our urban planning service to represent us. So I'm going to turn the floor over to Benjamin Furtado.

[Benjamin Furtado, Director, Urban Planning and Environment, Municipalité de Lac-Simon]

Good afternoon.

Since I wasn't sure what form this was going to take, I'll just add on to what Ms. Orjikh has said, since we were all in agreement, but I'd like to begin with a little background.

The Municipalité de Lac Simon has many waterways, including three major bodies of water: Lac Viceroy, Lac Simon and Lac Barrière. We are a small municipality in the Outaouais region. We have a municipal public wharf, and the neighbouring municipality has a public wharf that is privately managed. Access to one of our waterways is limited to a private community, which, for the moment, somewhat limits the damage caused by the types of watercraft that Ms. Orjikh mentioned. One of those waterways is accessible via our main body, Lac Barrière. So these waterways are generally accessible through one another. We also have five shallow bays where passing watercraft may disturb sensitive species and stir up sediments.

Those are the challenges associated with our main waterways, but there are others, which I will discuss once I've provided this background.

The problems that we experience aren't solely due to pollution. They are also caused by human behaviour and certain types of boats. We have pollution and garbage, mainly because some people throw their beverage containers into the water. Others go into those shallow bays and disembark from their boats in order to relieve themselves. It's difficult for a municipality to penalize such behaviour and legislate water-related issues because we have to act within our jurisdiction. Motorboats also stir up sediments in those bays, and that reduces water quality.

We also intended to tell you about the problems associated with wakeboarding and watercraft that cause erosion. We have managed to introduce a restriction, but it was a tedious process and took many years to implement. As Ms. Orjikh explained, it's a costly and painstaking process, but we nevertheless tried as hard as we could. We are enforcing the rule, but we can't go any further because our authority as a municipality is limited in that regard. Consequently, even though we limit motorboat speeds in the middle of the lake to 70 kilometres an hour, as Ms. Orjikh also mentioned, boats often stay within 300 metres of the shoreline and cause erosion because 70 kilometres an hour on water is still very fast.

So that's the situation. Our powers are limited by the fact that this is an area of federal jurisdiction, and that's the problem. The current federal boating regulations do not afford adequate protection for our waterways. In our humble opinion, they mainly protect user safety. They do not limit the number of boats. For example, there can be 500 boats at a single location. We can't limit that. It's very complicated. We also can't control the types of boats used. As you can see, wakeboarding is a new phenomenon, and we can't limit it in order to moderate the waves. We have no way of controlling it. I should also mention the red tape associated with the application procedure, which can regularly take between five and 10 years, from what I hear. It's very costly.

I should also mention the aircraft phenomenon. I've consulted other municipalities on this. It's also difficult to control what goes on in that area. You can control pollutants and invasive aquatic plants on boat hulls, but it's more complicated for people who have airplanes. There appears to be an administrative void in this regard where neither the provinces nor the municipalities may intervene.

Consequently, there is apparently a kind of gap in the responsibilities shared between federal and provincial governments regarding boating and the environment. I don't know if we can say there's an inconsistency, but it's difficult, in a municipal context, to make people respect both boating and the environment. When we manage to do so, it's as a result of long-standing efforts, after the damage has already been done to our lakes.

That's a fairly accurate summary of our situation.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Furtado.

Committee members will now ask their questions.

Mr. Muys, the floor is yours for six minutes.

[Dan Muys, Conservative, Flamborough—Glanbrook, ON]

Thank you, Mr. Chair, and thank you to the witnesses for this first day of this study.

I would like to direct some questions for Mr. Layzell from Boating Ontario.

You set out in your testimony some of the economic impact on the industry, including $4.5 billion in Ontario and 520-plus members in your association. Of course, those are direct jobs and then there are indirect jobs, as we know, and $4.6 billion in tax revenue across Canada. Of course, a point that you made very well was that recreational boating is an important economic driver and the lifeblood of many communities and parts of this country.

It's probably a three-part question. You didn't talk too much in your five minutes—which were very precise, as the chair pointed out—about the so-called luxury tax. We know the average boat owner is more middle class than luxury. There's also the impact of the carbon tax, which we saw go up 23% in April and is on its way to quadrupling. That's a bit of a double whammy to your industry from a tax policy perspective.

Maybe you can talk a bit about both of the taxes and then about the cumulative impact and what that's doing in terms of direct and indirect jobs and, as you mentioned previously, driving boats south of the border.

[Rick Layzell]

Excellent. Thank you very much for the question.

I guess I'll tackle this from two perspectives—the luxury tax and the carbon tax, as you outlined—and I'll touch briefly on the jobs impact.

We have been monitoring since the implementation of the luxury tax—or the family tax, as we call it, because $250,000 does not buy a luxury yacht. It buys a small family cruiser or pontoon boat in our world now, for families' alternatives to cottages and what have you.

We've watched over a hundred jobs disappear from the industry already. I think one of the key impacts.... If I may, I'll reflect that the Parliamentary Budget Officer projected $52 million in luxury tax receipts from the boating sector alone between September 1, 2022 and September 1, 2024. In June, the CRA reported that up to that point—21 months and one week—it had actually seen receipts of $12 million. As we know now, the boats are not in inventory because the dealers and the industry have refused to bring the boats to Canada because the consumers have said they will not pay the tax, so it's not even possible that they collected any more than perhaps a couple of million dollars over that balance period.

There's a massive shortfall here in the PBO's projections of what the luxury tax would bring because the industry has said it's not going to bring the boats here because the consumers have said they are not paying this tax.

What we have seen as a result of the tax is an exodus of boat purchases into the United States. Many Canadian families, as we know, own homes in Florida and the southern U.S. The comments they're making to the industry are that they'll simply buy a new boat in Florida and keep the boat there. They'll leave the old boat in Canada and let it traverse around Canadian waterways. Those new boats being bought—

[Dan Muys, Conservative, Flamborough—Glanbrook, ON]

If I could, I'll interrupt there because I have a couple of minutes left and I want to delve into another area. I know some of my colleagues may have follow-up questions on that.

You indicated a number of different issues with Transport Canada that you're dealing with, such as the flares issue, the mandatory wear, vehicle registration data and invasive aquatic species.

I just wanted to give you a chance to maybe elaborate a bit more on each of those and what the pain points are that you're dealing with on those issues with Transport Canada.

Then maybe give a bit of a comparison as to how that would compare to five or 10 years ago in terms of this increasing regulatory burden and the relationship that you have with Transport Canada in actually providing input on these things.

[Rick Layzell]

Thank you for that question, as well.

Let's start with mandatory PFD wear. We have been at the table with Transport on this issue for several years now. I think the most challenging thing is that the survey that was released was bent toward guiding the respondent to support mandatory wear. The industry is fully prepared to support mandatory wear on human vessels for children under 12 while under way, on personal watercraft and for persons being towed. However, there are other circumstances where we do not support mandatory wear. That is a real change in how our conversations and dialogue with Transport have been going.

On the flare situation, it was utterly shocking to us when the recycling program for the power squadron was pulled back. We have seen it. I know there's another meeting later this week with John Gullick from CPS. He's going to speak about the number of flares that are piling up across the industry.

The data comment is one that has been around for a long time, MP Muys. The data is with Transport. It would help us enormously to grow this sector—in which so many Canadian families are engaged—if we could find a way to get that data. We don't want the consumer data, to be clear. What we want is the product data to help us grow this industry.

[Dan Muys, Conservative, Flamborough—Glanbrook, ON]

There have been a lot of frustrations in your dealings with Transport Canada over the last couple of years.

[Rick Layzell]

Yes, tremendous....

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Muys.

Mr. Lauzon, go ahead.

[Stéphane Lauzon, Liberal, Argenteuil—La Petite-Nation, QC]

Thank you, Mr. Chair.

I'd like to thank all the witnesses who are here today to discuss an issue that I consider particularly important. There are 41 municipalities and hundreds of lakes in the riding I represent. By the way, three witnesses from my riding are here today, and I would like to thank them for that. They are Lac‑Simon councillors Chantal Crête and Jocelyn Martel, and Benjamin Furtado, director of urban planning and environment.

Mr. Furtado, in your presentation, you mentioned reserve zones and speed limits in the middle of lakes. Would you please tell us more about the restrictions you're allowed to set under the statutes established by the Department of Transport respecting speed limits along shorelines and docking?

[Benjamin Furtado]

I'm not sure I understand your question. The restrictions you just mentioned are the ones we were able to come up with at least 10 years or so ago. If I'm not mistaken, you can travel at 25 kilometres an hour in a 70 kilometre-an-hour zone starting from the shore and at 70 kilometres an hour in the middle of the lake. But that can cause—

[Stéphane Lauzon, Liberal, Argenteuil—La Petite-Nation, QC]

I'm referring more to the 25 kilometres an hour. How did you establish speed monitoring measures? You set up signs indicating the permitted limit. How do you approach offenders, those who go too fast and who may damage shorelines?

[Benjamin Furtado]

We hired a private security firm to monitor our lakes in the summer season, especially during peak periods. It's a service that the municipality pays for. Although the Sûreté du Québec offers the same service, as you can understand, it can't be in all places in Quebec at once. So we hired that firm to monitor our lakes pursuant to the authority we have regarding boating speed limits.

[Stéphane Lauzon, Liberal, Argenteuil—La Petite-Nation, QC]

Ms. Crête, I have a slightly more political question for you. Complaints have come in from everywhere, from residents and others. The municipality has conducted environmental studies on water protection and invasive species. In your experience at the municipality, have you noticed any changes in that area in the past few years?

[Chantal Crête]

Thank you for your question.

Traffic on the lake has changed in recent years. We have a lot more boats, and the types of boats that are used on the lake have also evolved. For many years now, we've seen more big wake and wake surf boats. We're also seeing more paddle boards. Consequently, we're experiencing conflicting uses.

We have children playing with pedal boats near the shore, and paddleboarding and kayaking. However, big wake boats and wake surfers further out generate big waves, and we've had many complaints about that. Local residents tell us that, as a result of the big waves, they don't want to let their children swim along the beach because the situation is becoming dangerous and a problem. Then there are the issues that can be caused by shoreline erosion and oversized waves. We also receive a lot of complaints about broken equipment from people who tell us that, as a result of big waves, their boats wind up high and dry on the dock or else bump against it, thus damaging their hulls.

[Stéphane Lauzon, Liberal, Argenteuil—La Petite-Nation, QC]

Thank you, Ms. Crête.

Ms. Orjikh, I imagine that all the aspects of Ms. Crête's testimony generally apply to your area. Is that the case, or are there any differences that you can describe to the committee?

[Ariane Orjikh]

It's very similar. We conducted a watercraft inventory; we counted and classified them. The lakeside municipalities ordered it, and the situation is exactly the same. We observed an increase in the number of small paddleboards and kayak-type craft. There has also been an increase in the number of big-wake-type craft and jet skis.

As I said earlier, we conducted a survey of more than 600 lake users and we noticed that there really is a problem with waves that inconvenience other users and that there are safety concerns. Thirty per cent of respondents said they had been afraid for their safety while boating on the lake as a result of other users. So the situations are very similar, and this is a problem that increased with the pandemic.

[Stéphane Lauzon, Liberal, Argenteuil—La Petite-Nation, QC]

Among the specific measures that you discussed, you mentioned changing and improving current national standards. We heard Ms. Crête say that measures have been taken and that they have now helped make certain changes. Exactly what national standards do you think should be changed?

[Ariane Orjikh]

I cited two studies. One that was done by the Université du Québec à Montréal shows how waves cause erosion when people engage in sports that generate oversized waves less than 300 metres from shore. We should rely on that type of study to establish standards. That's what the State of Vermont has done. It has established standards based on studies conducted in Quebec. They are standards based on sports that generate oversized waves. We need to ensure that those sports are engaged in far from shore in deeper areas.

The maximum depth in our area, in Lac Memphrémagog, is 107 metres. So there are obviously areas where those sports really cause less damage. Engaging in that kind of sport in the middle of a large body of water such as ours is therefore not a problem, but doing so in shallow bays increases the risk.