Mr. Speaker, I am pleased to rise today to speak to Bill S-33, an act to amend the Carriage by Air Act. This act gives lawful effect to the Warsaw convention and its related instruments known as the Warsaw system.
This system is a global regime of common rules which limits carrier liability for the injury or death of a passenger and the damage, loss or delay of baggage or cargo during international air transportation.
The act was last amended in 1999 when Canada ratified the Guadalajara supplementary convention of 1961 and Montreal protocol no. 4 of 1975, both related instruments of the Warsaw convention.
The amendments proposed in this bill would give effect to the 1999 Montreal convention, which brings together in one convention the most positive elements of the Warsaw convention and its related instruments.
The Montreal convention modernizes the Warsaw system by introducing new and important provisions. One of them will allow international passengers to choose their own local system of law when making claims.
Another new provision will establish in law the two-tier carrier responsibility regime the industry, Air Canada in particular, has had in place since 1997, via a general agreement with the industry.
This two-tier regime operates as follows: at the first tier level, the carrier will assume unlimited liability, irrespective of fault, for claims of death or injury of passengers during international carriage by air, to a limit of approximately$216,000.
The second tier permits carriers to use certain legal defences for claims beyond that limit for death or injury of international passengers.
Note that, unlike the Warsaw convention, this two-tier regime does not set a limit for claims of real damages by international passengers.
Some of the key stakeholders were involved in the drafting of the Montreal convention and strongly support its signature and ratification by Canada.
The international carriers have long recognized that a carrier limit of responsibility for passengers is an obsolete concept, considering the interminable claims proceedings which nowadays might easily exceed these amounts.
Ratification of the Montreal convention by Canada would implement this form of unlimited, rather than limited, liability on the part of the carrier, with respect to international passengers.
The Montreal convention also retains the positive aspects of the Warsaw convention, including the unification of the rules for international carriage by air, which continues to be vital to the harmonious administration of international carriage by air.
Bill S-33 amends the act so that Canada can join other countries, including the United States and our other principal trading partners, in a concerted effort to ratify the 1999 Montreal convention.
For the Montreal convention to take effect internationally, it must first be ratified by a quorum of 30 nations. To date, 70 nations have signed the Montreal convention, including the United States and all of Canada's other principal trading partners. Twelve of the 70 signatories have ratified the Montreal convention since then.
By ratifying this convention, Canada will play a role in helping to set up a new international regime of carrier liability which could potentially reduce litigation and accelerate the settlement of claims.
Until then, however, the Warsaw convention will continue to apply. It will remain in effect for countries which have not yet signed or ratified the Montreal convention and with which Canada has established bilateral ties for international carriage by air.
In conclusion, I urge all my colleagues to support Bill S-33, which would give effect to the Montreal convention in Canada and would, as a result, rework and modernize the rules of the Warsaw convention, provide for unlimited liability and establish new rules of jurisdiction allowing passengers to choose their own local system of law when making claims. I hope that this bill will be passed as quickly as possible.