Transport Committee on Feb. 25th, 2026

[The Chair, Liberal, Peter Schiefke]

I call this meeting to order. Welcome to meeting 23 of the Standing Committee on Transport, Infrastructure and Communities.

Pursuant to Standing Order 108(2) and the motions adopted by the committee on Thursday, September 18, 2025, and Thursday, December 11, 2025, the committee is resuming its study of the Canada Infrastructure Bank's financing of new vessels for British Columbia Ferry Services Inc.

Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders.

I'd like to make a few comments for the benefit of witnesses and members.

First, please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic, and please mute yourself when you're not speaking. For those on Zoom, at the bottom of your screen, you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel. For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function.

I remind you, colleagues, that all comments should be addressed to the chair. The clerk and I will manage the speaking order as best we can. We appreciate your patience in this regard.

Colleagues, I'd now like to welcome our witnesses for the first hour today.

Appearing before us, we have the Honourable Gary Anandasangaree, Minister of Public Safety. The officials accompanying the minister today are, from the Department of Public Safety and Emergency Preparedness, Mr. Richard Bilodeau, senior assistant deputy minister, national and cybersecurity branch, and from the Canadian Security Intelligence Service, Vanessa Lloyd, deputy director of operations.

Welcome to all three of you.

Minister, we will get right into it because I know we're eager to ask you questions. With that, it's my pleasure to turn the floor over to you for five-minute opening remarks.

[Gary Anandasangaree, Liberal, Minister of Public Safety]

Thank you, Chair. I'll be very brief in my opening remarks. I'll leave enough time for questions.

I'd like to start by acknowledging that we're meeting on the traditional, unceded territory of the Algonquin Anishinabe people.

Thank you, Mr. Chair and committee members, for inviting me to appear before you today.

Many British Columbians, especially in coastal communities, rely on ferries as modes of transportation for connection to the mainland. The decision by BC Ferries last year to procure its new ferries offshore was a decision made by the province after conducting its own due diligence to accommodate growing demand and need for service.

The committee is understandably concerned about the implications of this deal for national security. While Public Safety Canada has authority to conduct security reviews of foreign direct investments under the Investment Canada Act, it does not review procurement decisions at the provincial level, such as this one. Therefore, we would not have had the authority to conduct a national security review in this case. Only after outreach from Transport Canada did Public Safety officials engage with BC Ferries. BC Ferries had already made the procurement decision.

Our government is currently undertaking a number of initiatives to strengthen our economic and national security and sovereignty in the face of ever‑changing threats.

We continually examine how to protect and promote Canada's economic security. This includes expanding both domestic and international collaboration, as well as identifying key areas of engagement and focus. We see maintaining and bolstering economic security as crucial to our growth and sovereignty. This requires a whole-of-government approach across all levels of government, industry, indigenous communities and partners, academia and international allies.

Mr. Chair, once again, thank you for the invitation to appear at this committee. I welcome your questions and comments.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Minister.

We'll begin the line of questioning today with Mr. Albas.

Mr. Albas, the floor is yours. You have six minutes, sir.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Thank you, Mr. Chair.

Thank you, Minister and officials, for the work you do for our country.

Minister, is China your government's new strategic ally, or is China—as Canadian security agencies have repeatedly stated—the most sophisticated and active state cybersecurity threat to Canada today? It cannot be both, sir.

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

I believe the Prime Minister has said that we want to meet our trading partners where they are, not where we want them to be. With respect to the work of the Prime Minister, as you're aware, we're facing significant difficulties with our closest and best trading partner, the United States. We have embarked on an international effort to expand trade relations, including with China. I would suggest that the work the Prime Minister does, including his upcoming visits to India, Australia and Japan, is part of this broader narrative to expand our trade by 50% over the coming years, which will ensure that both our economic security and our jobs will be protected in Canada while we're going through some trade difficulties at our southern border.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

First of all, that makes no sense because we're talking about jobs being skipped over here in Canada for a Chinese hybrid shipyard. Also, Minister, it sounds as though you're saying—and again, I believe in being clear-eyed about these things—that national security interests should be subordinate to trade interests. Is that the case?

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

I believe you can do both.

What we've undertaken with China—and I can ask my officials to expand—is an agreement that speaks to issues around safety and security. We have an MOU that was signed, as you're aware, when the Prime Minister was in China last month. However, we're also working towards greater economic engagement. Similarly, we're doing that with India and many other countries. I believe that we're able to do both, and in fact, the moment calls for us to do both.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Minister, you mentioned officials. I will say that, in the unclassified document this committee has received from Transport Canada, Transport Canada warned, “There have been media reports of surveillance technology embedded [in] equipment...port cranes and drones”, raising concerns about hidden sensors and data-harvesting technologies in foreign-manufactured transportation assets.

Given this, what specific national security assessment has Public Safety conducted to rule out embedded surveillance, hardware or software in ferries that are being built in China?

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

As I indicated in my opening remarks, there was no security assessment. It was outside the scope of the work that our national security apparatus does. This was a procurement that was undertaken by BC Ferries and the Province of British Columbia. It is very much outside the scope of the work that we undertake.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Minister, I have to say, the fact that no security review has been done is unfathomable to me.

Transport Canada plainly states that Canada does not have comprehensive legislation to manage the risks identified on this file and that existing oversight focuses only on “performance and safety rather than mitigation of national security concerns”. The example given is “unauthorized data access or surveillance”.

Why would Public Safety permit foreign-built ferries to be imported before the government closes this legislative gap? What do you have to say, sir?

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

Mr. Albas, I don't want to demean your understanding of Canadian federalism, but let me take this moment to say that we are the federal government. This particular procurement was undertaken by the Province of British Columbia, as you're aware. They have every authority to do that. They have their own laws and guidelines that they follow. It is very much in that vein that this particular procurement was undertaken.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

There was no security review by Public Safety Canada. Transport Canada says that we have legislative gaps that do not cover this kind of stuff.

Minister, Transport Canada also warns that vessels built in China “will have access to Canadian waterways” and could gather information related to “critical underwater infrastructure...as well as a critical North American supply route.”

Minister, what is Public Safety's threat assessment regarding foreign-built ferries' mapping, scanning or otherwise collecting intelligence on underwater cables or other important data infrastructure?

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

I can say that every vehicle, every vessel, that comes here will have to meet Canadian standards.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

You've said there's no review, sir.

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

They are two different things.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

There's a safety review by Transport Canada.

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

One is a review. One is the safeguards that are in place.

In this particular case, the B.C. government procured these vessels.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

The B.C. government has the right to put our national security and Canadians' own national security at risk. Is that what you're saying, sir?

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

I'm saying that they have the prerogative to undertake—

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

They have the prerogative...?

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

—procurement, according to their laws, according to their rules. In this, case that is exactly what has happened.

However, I can say that vehicles, whether they be EVs or those vessels that are being procured, still need to be in line with Canadian standards.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Mr. Chair, I'm just going to take a really quick second here.

These vessels, effectively, have a 25% tariff. The CBSA is the agency that is supposed to collect those tariffs, unless there's a remission order. Does the government plan on giving these foreign-built vessels a pass, effectively locking out Canadian workers while making the vessels cheaper for BC Ferries to bring in at the expense of our industries?

What is your answer, sir?

[Gary Anandasangaree, Liberal, Scarborough—Guildwood—Rouge Park, ON]

As you're aware, the CBSA is an independent agency. They're not represented in the panel today. If you would like further information, I would be more than glad to get that for you.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

However, you're listed in the Customs Tariff act specifically. With that response—

[The Chair, Liberal, Peter Schiefke]

Thank you, Mr. Albas.

Thank you very much, Minister.

We now turn our attention to Mr. Greaves.

Mr. Greaves, the floor is yours. You have six minutes, sir.