Mr. Speaker, the current limit of 10,000 tonnes is not enough. One of the proposals we would like to introduce would significantly increase the limit associated with a spill cleanup. Obviously, this change would be based on consultations with experts appearing before the committee. They can tell us what the appropriate limit should be.
We need to keep in mind that the limit is currently 10,000 tonnes. That means that all companies need to be able to handle spills of that size. If they cannot handle the cleanup, the Canadian Coast Guard has the authority to intervene or to give other response organizations the mandate to clean up the spill. If a company cannot cover the cost of cleanup efforts, the Canadian Coast Guard may request funds from the ship-source oil pollution fund. This implies that the government should be responsible for any costs exceeding what the fund can pay.
There is a problem, however. In March 2013, the fund had a balance of $400 million. To illustrate how insufficient that amount is, I would like to use the Exxon Valdez accident as an example. After the disaster, cleanup costs and compensation for damages totalled $3.5 billion. Clearly, there is a problem. The amount available is inadequate. Even the oil pollution fund could not cover the costs resulting from a major spill.