Mr. Speaker, I am pleased to rise on Bill S-4, the Canada Shipping Act amendments.
Few countries in the world have as much interest in this issue as we have in Canada because we are virtually surrounded by water. We have water east, west and north. We have the Great Lakes and the seaway.
The bill has been nurtured through the system for many years. We are really pleased to see it and we will be supporting the bill.
The bill will substantially increase the amount of compensation available to Canadian claimants for maritime claims in general, especially for oil pollution damage as a result of shipwrecked oil tankers.
The current Canada Shipping Act provisions dealing with limitation of liability of maritime claims are based on the 1957 international convention relating to limitation of liability of owners of seagoing vessels. Most maritime nations consider limits of liability inadequate mainly as inflation has eroded their value and it only make sense as those were developed in 1957.
The bill began as Bill C-58 in 1996 when it went through the committee process and died on the order paper with the election call in April 1997. There are important changes contained in the legislation and unfortunately the government did not make it a priority to move it ahead quickly enough, but at least it is here now. Now that it is here we are dealing with the bill and I am pleased to be here to speak on it.
The bill will substantially increase the amount of compensation available to Canadian claimants for maritime claims, for oil pollution damage in particular. It harmonizes Canadian rules for maritime liability with those of other maritime nations and will enable Canada to accede to the relevant international conventions.
With respect to the limitation of liability for maritime claims, Bill S-4 amends part 4 of the shipping act to implement provisions of the 1976 convention on limitation of liability for maritime claims and its 1996 protocol.
Bill S-4 will, first, substantially increase shipowner limits of liability, long past due. Second, it will allow the cabinet on recommendation of the transport minister to implement new limits of liability to reflect inflation. Three, it will limit the liability of owners of small ships less than 300 tons to $1 million for loss of life or personal injury and $500,000 for other claims. It will also extend the application of the liability regime to all ships operating in Canadian internal and inland waters, not just seagoing vessels, which is very important.
Finally, it increases the liability limits for owners of docks, canals and ports and for property damage claims to the greater of $2 million or an amount based on the tonnage of the largest ship that has docked in the area in the last five years.
Atlantic Canada and all Canadians welcome the aspect of the bill that relates to oil pollution liability and for compensation for oil pollution damage. Bill S-4 will amend part 16 of the Canada Shipping Act to implement provisions of the 1992 protocol to the 1969 civil liability convention and the 1971 convention on the establishment of an international fund for compensation for oil pollution damage.
This means it will make shipowners liable for clean-up costs for oil pollution damage. It makes compensation available for pollution damage caused by tankers with residues of oil remaining from their previous cargo. This also makes it possible to recover costs incurred for preventive measures taken in anticipation of a spill from a tanker.
The maximum compensation currently available to claimants in a oil pollution incident is approximately $120 million. As a result of Bill S-4, the amount will more than double to $270 million which is still probably not enough but it is a good start.
In summary, we are pleased to support this legislation. It is long past overdue and very much needed in the maritime industry in Canada. We are supporting this because it will improve compensation for the benefit of all Canadian claimants involved in any kind of marine accident in general and certainly for purposes related to pollution claims.
Also, the important harmonization of our laws with other nations benefits every participant. I am speaking about all participants involved in the maritime trade, shipowners, cargo owners and charters providing consistent internationally recognized and accepted rules which deal with the economic consequences of unfortunate accidents at sea.
Without these former rules international shipping, which Canada relies on to a tremendous extent, would otherwise become extremely expensive and unpredictable. As a result it would have negative consequences for the Canadian industry as a whole.
Again, we support this legislation and only wish that we could have moved it through the system a little more quickly.