Mr. Speaker, I am pleased to discuss with my hon. colleagues an opportunity for each of us to work together to protect our environment from the effects of marine pollution from ships, which all Canadians want us to do.
If the government's proposed amendments to the Marine Liability Act, as outlined in Bill C-7, are passed into law, they would have important environmental and economic impacts for all Canadians.
Together we can better protect Canadians from oil spills and ensure polluters actually pay for what they do. We can protect Canadians aboard passenger vessels, ensure the continued viability of a very important tourism sector and provide fairness for Canadian businesses that supply ships.
The act as it stands now is very ill-equipped to tackle the realities of marine transport today and inadequate to realize our 21st century ambitions.
Before I review our proposed amendments in detail, I would remind all hon. members of how important marine transportation is to Canada and Canadians.
As a trading nation, Canada relies on shipping to provide Canadians with one of the world's highest standards of living. In 2007, for instance, ships carried more than 365 million tonnes of international cargo. This represents some $160 billion worth of international trade and includes more than $81 billion in exports. That $160 billion is a staggering sum to say the least.
Seventy million tonnes of cargo are transported domestically each year by ships operating between Canadian ports on the Pacific, Atlantic and Arctic coasts; along the St. Lawrence Seaway; and throughout the Great Lakes system.
Canadian ferries actually carry some 40 million passengers and 16 million automobiles each and every year. They are also part of daily commuting for many Canadians in cities such as Halifax and Vancouver.
Almost 1.5 million people, Canadians and foreign visitors alike, enjoy scenic cruises on Canadian waters each and every year.
Shipping is among the most efficient modes of transport and among the most effective in reducing road congestion, which helps reduce greenhouse gas emissions, and that is important to our future.
Transport Canada is collaborating as I speak with Canadian industry and the governments of the United States and Mexico to promote a more ecological use of North American shipping routes. We are encouraging increased shipping of people and goods along our coasts and using internal waterways.
With the possibility of increased shipping and marine traffic in potentially sensitive areas of Canada's Arctic, we must take steps right now to ensure that Canada is ready for this growth.
Our government is absolutely determined to protect our Arctic areas, which we will do by passing the measures before us with the help of our other colleagues in this place.
Marine transport is absolutely essential to Canada's economic viability in the future. We see it as a real growth industry for Canada. It can also, however, constitute a potential risk to people, to goods and to the environment. Hence, the reason for the bill. Most of these risks actually stem from the potential for mishaps inherent in most forms of industrial activity and all modes of transport. Most notable in shipping is the risk of collisions or grounding during which passengers and crew members can be injured, not to mention the risk of oil spills and other similar situations that arise as a result of these incidents.
These amendments would build upon initiatives that this government has already taken while fostering marine transportation activity to improve Canada's economy.
Shipping is a global activity and, therefore, it needs globally harmonized rules.
Canada is a founding member of the International Maritime Organization and has worked diligently toward multilateral solutions for issues facing marine transportation.Achieving global consistency in these rules would benefit the marine industry and Canada's trade with other nations and, ultimately, all Canadians.
These amendments would demand that commercial ships which carry Canadians have proper insurance. This covers all ships including commuter ferries and tour boats, and it simply makes sense for today's environment. This is not an unjust burden. We do it for the airline industry, why not the marine industry? Should Canadians feel less secure or be less safe on a ferry or a tour boat than on an airplane? We in this Conservative government do not think so. Canadians should feel safe and be protected in whatever mode of transportation they choose.
Canadians will be further protected while small businesses like whitewater rafting companies and sea kayaking guides, for example, will not be burdened by unfair economic regulations. During this particular time of global economic hardship we do not want to place any onerous regulations on small business owners that could potentially have serious consequences for the adventure travel industry, the individual owner, or indeed, seasonal employees.
Tourism is also a very important sector of the economy and is actually in a state of growth. Thousands upon thousands of Canadian jobs depend on tourism. These amendments would ensure that Canadians are protected while meeting the unique needs of marine adventure tourism. Most importantly, from an environmental perspective, these amendments to the Marine Liability Act would enhance the liability and compensation regimes that Canada has in place to respond to oil pollution from ships.
Canada has one of the longest coastlines in the world. We are bordered by three oceans and we use ships to carry a very significant portion of our trade each year. Large volumes of oil and other petroleum products pass through our ports every year, some 70 million tonnes annually. Much of that is on tankers with far bigger capacities than for instance, the Exxon Valdez, and most of us remember what happened in Alaska in 1989 in relation to that disastrous spill.
With the limitations of our current legislation Canada simply would not be able to cope with a spill of that magnitude if one were to happen tomorrow in our waters. Despite advances in both safety and technology, marine shipping spills still continue to happen. These damage the environment and often damage local economies. We cannot have that continue without some form of liability and compensation to those affected.
I am thinking in particular of the Hebei Spirit incident in South Korea in December 2007, after the vessel collided with another ship. That spill had huge costs and highlighted the need for a more effective response mechanism.
One does not need to go as far as Korea, however, to see the devastating effects of oil spills. We can simply look back at Canadian history. Many of us may recall the Kurdistan incident off the coast of Nova Scotia in 1979 or the Rio Orinoco incident near Anticosti Island in Quebec in 1992, or indeed even the Irving Whale incident of 1970 off the coast of Prince Edward Island.
While none of these spills was as big or as damaging as the Exxon Valdez or even the Hebei Spirit incident, a spill is a spill and is not acceptable, and Canada's luck may one day run out. That is why it is so important to continue with this aggressive stance in this legislation.
The bottom line is every day that we delay taking action and not putting in place the measures in this bill we add to the risk of victims going on without adequate compensation. That is not acceptable. People like fishermen and tourism operators who depend on the sea and waterways for their livelihoods need this protection.
These amendments would actually do something very significant. They would actually triple the level of compensation available to victims of oil spills from the maximum of $500 million, which seems like a great sum but it is not in these kinds of situations, to $1.5 billion, a tremendous sum. That is $1.5 billion for each and every incident. These massive increases in compensation would ensure strong protection for Canadians and the environment while maintaining a balance between associated interests, namely the ship owners and the oil companies that pay contributions into the fund's system. Taxpayers should not be on the hook for these costs.
Our government believes in holding polluters absolutely accountable for their actions. With the help of this legislation we will hold them accountable.
The bill also introduces an enhanced regime for shipowner liability for spills of bunker oil used to propel ships. These types of spills tend to be more common than those coming from larger tankers because virtually all ships sailing today use this type of oil. These kinds of spills happen in Canada often and can actually cause a lot of damage to the ecosystem.
Like the requirement already in place for tankers, this bunker oil liability regime would include a compulsory insurance provision which is a good thing. We need to ensure that shipowners can make good on their obligations. They need to be able to compensate as a result of their negligence or inaction.
I should note that these enhancements would enable Canada to also ratify two international maritime organization conventions that are based on the polluter pays principle. The benefits to Canada of continuing its long standing multilateral approach to international shipping and the ratification of these two conventions are very obvious.
Canada is behind the world currently on this issue and this Conservative government will ensure that Canada catches up and protects Canadians and our environment. In this we have the full support of industry as well which accepts its liability under the act and the international conventions.
It should also be noted that the amendments that we are discussing here today would actually establish a mandatory insurance requirement for passenger ships as well. Canadian businesses would benefit also and these amendments would put Canadian companies supplying foreign ships docked in our ports on equal footing with their American counterparts.
Currently, if a foreign ship does not pay its bill, Canadian companies are simply out of pocket. Under this bill that would change. Increased fairness would be achieved by providing our Canadian ship suppliers with a maritime lien, much like a building lien, as security for unpaid invoices.
These are Canadian companies that supply ships that call at Canadian ports with everything from fuel to water, to food and equipment that is being purchased. Today these businesses do not have the same rights as American businesses who supply the same ship in their own port. Not even our own courts here in Canada will do this. That is because American ship suppliers benefit from a lien in American law which can be enforced in Canadian courts.
These Canadian businesses have been telling the government for some time that they also need the same protection. This Conservative government is delivering that protection to them.
In conclusion, I would like to remind the House that with this legislation we are going to do four specific things: first, protect Canadians against oil spills and make sure that polluters pay; second, protect Canadians aboard passenger vessels which is so important; third, ensure the continued viability of an important tourism sector; and fourth, provide fairness for Canadian businesses that supply ships.
We believe that these proposed amendments are the very right thing to do and the best thing to do going forward. They strike the balance to encourage environmentally responsible marine transportation and to protect the interests of Canadians. That is why we are here in this place.
We are modernizing an outdated act and these are all changes that all Canadians can agree upon. I urge all hon. members to give the bill their unanimous support. I look forward to working with them when the bill reaches committee. I believe that we will be able to find very common ground and move forward with this legislation effectively and positively for the benefit of all Canadians.