Debates of May 7th, 2014

Transport—Main Estimates, 2014–15

[Lisa Raitt, Conservative, Minister of Transport]

Mr. Chair, I appreciate the kind wishes of the hon. member at the beginning, and I appreciate the tough questions he posed. They were very good.

I am pleased to appear before the committee of the whole this evening as part of its review of the votes relating to Transport in the 2014–15 main estimates, but as well to take this opportunity to highlight some of the key priorities that our government is addressing.

First, I will move to the estimates.

The authorities that we are seeking for the 2014–15 main estimates will be directed to support several key priorities within my department. We will continue to refine and strengthen safety and security oversight of the transportation system. We will continue to contribute to our government's responsible resource development agenda, and we will improve Canada's competitiveness in critical transportation infrastructure. We will ensure that Transport Canada policies, programs, and activities meet the needs of the transportation system in the long term, and we will adopt our government's efficiency and renewal measures.

I will focus the rest of my opening remarks on our efforts to address a few key areas: tanker safety; investments in transportation infrastructures as part of our gateways and corridors strategy; and, of course, rail safety.

First, I will talk about tanker safety and, specifically, what we are doing to strengthen our tanker safety regime. In the main estimates, members will note that we are requesting additional authorities in the amounts of $15.8 million for world-class oil spill response. This is a 686% increase from the authorities that were sought in last year's main estimates. The tanker safety regime is based on three pillars: first, we prevent spills from happening in the first place; second, we clean them up should they happen; third, we hold polluters accountable and financially responsible for those spills. This regime introduced new measures such as increased inspections of foreign tankers in Canadian waters, expanded air surveillance and monitoring of ships in our waters, and a new incident command system to allow the Canadian Coast Guard to respond more effectively to incidents.

To help achieve a world-class tanker safety system, we struck an independent expert panel led by Captain Gordon Houston, the former CEO of Port Metro Vancouver. The panel submitted its first report in November and it made 45 recommendations on how to strengthen the oil spill preparedness and response regime. We take this advice very seriously. Therefore, we are engaging communities and first nations, the marine industry, and provincial governments on the panel's recommendations. However, the panel's work does continue. It is currently reviewing oil tanker safety measures in the Arctic, as well as marine transport of hazardous and noxious substances. I do expect to receive its second report and its final report later this year.

Recently when I was in British Columbia, I was able to be on board one of the planes operated by our national aerial surveillance program, or NASP. It was quite an experience because I had the opportunity to appreciate not only the importance of the efforts but also the excitement of the members of the crew in their everyday work, because they are working hard on a world-class tanker safety regime. We are going to double the funding for this aerial surveillance program, and that is going to allow this team to increase the number of hours the planes are in the air, and then they can better monitor our coasts and ultimately deter potential polluters, and catch a spill before it becomes too big.

Economic action plan 2014 recognizes the importance of trade and investment to Canada's economic future, and the role of Canada's transportation infrastructure network in supporting trade in domestic and international markets. Through the main estimates, we are seeking $702 million to support important infrastructure projects through the gateways and corridors funding program. The program supports international trade with the United States and other key partners by ensuring integrated and efficient transportation systems across all modes. We have to work with other levels of government and private-sector stakeholders, and together we are both investing in important infrastructure products at border crossings and bolstering our efforts to coordinate infrastructure planning as part of government's beyond the border initiative. Improvements to cross-border trade will go a long way toward ensuring continued economic growth for Canada.

Finally, I would like to turn my attention to what my top priority is, and that is strengthening rail safety in this country.

This past January, the Transportation Safety Board released three interim recommendations regarding its ongoing investigation into the Lac-Mégantic train derailment. The recommendations addressed three factors: the vulnerabilities of the DOT-111 tank cars used to transport crude oil, the need for emergency response assistance plans, or ERAPs, along routes where large volumes of liquid hydrocarbons are shipped, and the requirement for route planning and analysis for trains carrying dangerous goods.

On April 23, we provided our response and we outlined our actions going forward to directly and decisively address these recommendations. The Government of Canada is committed to continued collaboration with industry, other levels of government, and various stakeholders.

Well before the events at Lac-Mégantic, rail safety issues were already being addressed by our government. In May of last year, amendments to the Railway Safety Act came into force that strengthen the safety requirements for rail companies in Canada.

As well, we have worked for years to maintain safety for pedestrians and vehicles around grade crossings. New safety regulations were recently published, and this year the federal government's grade crossing improvement program is providing more $9 million to improve safety at over 600 railway crossings in this country.

I also feel strongly in this case that Canadians should not be expected to cover the costs of damages. To this end, Transport Canada has consulted stakeholders on how to strengthen the existing liability and compensation regime for rail. This way, in the event of an accident, sufficient resources would be available to adequately compensate victims, pay for cleanup costs, and protect taxpayer funds. This complements recent consultations by the Canadian Transportation Agency into the insurance coverage it requires of federally regulated railway companies when they issue certificates of fitness to the companies.

When it comes to addressing the recommendations from the Transportation Safety Board, I want to stress that we are committed to improving railway safety and the transportation of dangerous goods by rail.

Following the accident in Lac-Mégantic, the federal government took immediate action. The measures I announced in April build upon this work and further strengthen our country's regulation and oversight of rail safety in the transportation of dangerous goods. I will just remind the House of these measures.

We first acted to remove the least crash-resistant DOT-111 tank cars from dangerous goods service in general by directing the phase-out of tank cars that have no continuous reinforcement of their bottom shell. There are about 5,000 of these cars in North America.

We are also improving the tank cars that are used to transport crude oil or ethanol to significantly reduce the risk of these substances escaping if the cars are involved in an accident. In January of this year, Transport Canada published a revised mandatory standard for consultation, requiring thicker steel, head shields, and top-fitting protection. All DOT-111 tank cars that do not meet this January 2014 standard must be phased out or refitted within three years if they are to be used for the transportation of crude oil or ethanol.

We will also implement even more stringent tank car requirements in the future, based upon industry recommendations and technical discussions that are ongoing with the United States. In fact, Canada is already committed to meeting or exceeding all U.S. requirements for DOT-111 tank cars.

The second Transportation Safety Board recommendation that we are addressing is in relation to emergency response assistance plans. These are formal plans that describe what industry will do to support first responders in the event of an accident involving dangerous goods that require special expertise and response equipment.

To ensure we are prepared in the event of a rail accident, the federal government will require rail shippers to develop emergency response plans for higher-risk flammable liquids. In the event of an accident involving significant quantities of these dangerous goods, approved response plans will give first responders access in a timely manner to the resources and the assistance that they need. To accomplish this, we have issued a direction to require shippers to develop emergency response assistance plans for crude oil, gasoline, diesel, aviation fuel, and ethanol when even a single tank car is loaded with one of these designated flammable liquids.

We will also establish a task force with key partners and stakeholders such as the Canadian Association of Fire Chiefs and the Aboriginal Firefighters' Association as well as key response, shipping, and railway representatives. This task force will provide a dedicated and collaborative forum to enhance coordination of response capability. We will also consider expanding response plan requirements for other class 3 flammable liquids after reviewing the matter with this task force.

Finally, Canada already has a strong regulatory regime for trains travelling in both rural and urban areas. Transport Canada has now introduced even stricter requirements for trains transporting dangerous goods in order to safeguard communities along our railway lines.

We issued an emergency directive requiring railway companies to immediately slow trains that transport dangerous goods and implement other key operating practices that respond to the TSB's recommendations. The emergency directive adapts the recently announced U.S. voluntary requirements to the Canadian rail network, requiring companies to make key operational changes quickly.

We will make these requirements permanent by issuing a ministerial order that requires railway companies transporting dangerous goods to develop new rules on these operating practices. It is a major undertaking that requires careful planning in order to deliver rapid and concrete results.

In conclusion, the initiatives I have outlined today demonstrate clearly how our government is working to maintain transportation in Canada that is safe, secure, efficient, and environmentally responsible, and we take this responsibility seriously.

[Guy Lauzon, Conservative, Stormont—Dundas—South Glengarry, ON]

Mr. Chair, I would like to begin my comments by wishing the minister a happy birthday, although I find the way she decides to celebrate it passing strange. However, maybe a little later in the evening she will.

I would like to talk a little about Canada Post, acknowledging at the outset that it is an arm's-length crown corporation.

First, let us deal with the financial situation in Canada Post. It is undeniable that the business of delivering mail has evolved at a remarkable rate, especially with the incredible popularity of electronic mail. However, whether we talk about individuals, businesses, or governments, everyone—

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order, please. I call to the attention of the hon. member that we are actually on 15 minutes for the minister, and we were entering the last part of her 15 minutes on questions. I am thinking that perhaps the hon. member might think we are going on to the next speech. We are on questions, and we have almost three minutes left.

The hon. Parliamentary Secretary to the Minister of Transport.

[Jeff Watson, Conservative, Parliamentary Secretary to the Minister of Transport]

Mr. Chair, it is a pleasure to ask a question of the minister. In reviewing the independent Transportation Safety Board's statistics over the last few years with respect to rail occurrences, two of the most persistent areas for difficulties remain trespasser and crossing accidents, including fatalities.

I note that the estimates are seeking funding for improvements to grade crossings, and there is also a particular notation for funding for Operation Lifesaver. I wonder if the minister could comment on both of these expenditures and the importance of investments to reduce the incidence of both trespassing and accidents at rail grade crossings.

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, those are two areas we do want to make sure we shed some light on.

With respect to grade crossings, we have a fund available to help with making changes at grade crossings, as I referred to in my remarks already. We also have a program to close grade crossings, either private or public, that are no longer needed. We contribute to that as well. There are about 5,000 of these in the country.

With respect to Operation Lifesaver, it is absolutely worth taking time to talk about a great group of people who work together to ensure that we are communicating with kids, with families, and with communities about the importance of safety around rail. In fact, last week was rail safety week, and Operation Lifesaver has done a great job tweeting out information to people to make sure they have rail safety at the forefront of their minds.

In March of this year, I was able to host a round table dealing specifically with the issues associated with higher density in certain urban areas and pedestrian fatalities as a result of accidents with rail. We brought together the main railways: GO Transit, VIA, CN, and CP. We also brought into the room a mom who lost her son. Those kinds of conversations are important in reminding ourselves that we should continuously talk about not just the transportation of dangerous goods but also the fact that we do have this interaction with pedestrians in communities and that we should continuously do all we can to ensure their safety.

As one last thing, this is also national occupational health and safety week, so it is an important time to think about those things as well.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, I will be splitting my time with the member for Wascana this evening in this first round.

I will begin by asking the minister exactly how many qualified inspectors there are at Transport Canada to conduct safety management system audits.

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, the information that I have with respect to inspector oversight positions in general are the following: for civil aviation, we have approximately 1,700 total number of positions; in marine safety, we have 595 positions; in rail safety, we have 204 positions; in the transportation of dangerous goods, we have 127 positions. These are oversight safety positions.

Of course, some of these modes do not operate on the basis of SMS, but the particular breakdown I have is about who is involved in general with respect to management of safety and oversight activities. Those are the numbers I have.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, that is actually quite astonishing. I guess the minister did not understand my question, because the Auditor General of Canada says in the Auditor General's audit, which was performed some six or seven months ago, that Transport Canada says it requires 20 system auditors to audit each railway SMS, for example, once every three years.

How many qualified system auditors are on staff presently? In his report, the Auditor General says there are 10 when the department says it needs 20, minimum.

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, in general, we have approximately 100 inspectors within the rail safety sector. We also talk about oversight on top of that, and those are the numbers that I gave.

With respect to the number of audits in a typical year, there are approximately four to five audits completed. It varies from year to year, because sometimes regulatory compliance is confirmed through oversight activities, such as inspections.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, I am not asking the minister in general. I am asking her specifically, and here is why.

I asked the department, when it came to committee, to give us information. It says it has 142 full-time equivalents assigned to rail safety oversight. We sent this answer to the Auditor General of Canada, and here is what the Auditor General of Canada wrote back to me a week ago:

...we cannot provide any level of assurance on the information recently provided by Transport Canada officials. The Department does not specify how many qualified inspectors it currently has available to conduct audits.

I ask once again. Exactly how many qualified inspectors does Transport Canada have to conduct audits?

[Lisa Raitt, Conservative, Halton, ON]

By spring of 2014, Mr. Chair, all inspectors and managers who require training to become SMS auditors will have received the appropriate training. The total number will be 100.

[David McGuinty, Liberal, Ottawa South, ON]

How many, Mr. Chair?

[Lisa Raitt, Conservative, Halton, ON]

One hundred, Mr. Chair.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, there are 100 qualified systems auditors today?

[Lisa Raitt, Conservative, Halton, ON]

Yes, Mr. Chair.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, there are exactly 100 trained and qualified today?

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, just to expand for a second, as the hon. member knows, the Auditor General made some recommendations, and my department put together a going-forward plan, a management action plan, on how to deal with this. I have been updated, most recently in preparation for today, with respect to where we are in the plan, and I can say that with respect to that issue of ensuring that inspectors and managers receive training in a timely manner, I have been informed by officials that by spring of 2014, all 100 inspectors and managers who require training to become SMS auditors will have received the appropriate training.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, has the minister read the recent survey of aviation inspectors who work for Transport Canada?

[Lisa Raitt, Conservative, Halton, ON]

I have not, Mr. Chair.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, is the minister aware that 85% of inspectors believe that air travellers have been exposed to higher risk as a result of Transport Canada's aviation SMS, up significantly from 2007, when 67% forecast this outcome?

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, I know that SMS can be a contentious topic for people who do not necessarily believe in the system, but I can say who does believe in the system, and that is the chair of the Transportation Safety Board. She has clearly said that SMS systems are the way to go for the future, and that is the direction we have gone in.

She specifically said that SMS is a powerful, internationally recognized management tool to help organizations find trouble before trouble finds them, and indeed aviation accidents in Canada have decreased by 25% in the last decade and are now at an all-time low.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, when the minister announced that DOT cars would be phased out within three years, what analysis, data, or evidence did she rely on to be able to ascertain whether those cars could be replaced or manufactured on time?

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, first, we struck an advisory group coming out of the transportation of dangerous goods advisory committee, and it provided a report at the end of January 2014.

With that report, consultations took place with industry through my officials, and that is where the development of this standard came from and that is where the development of this data came from, and we are comfortable with this.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, I am not sure how the minister can be comfortable when we heard testimony at committee from the largest train car manufacturer in Canada who said it would be impossible to achieve this replacement rate within three years.

Why did the minister issue a regulation, set a standard, which she knew could not be achieved?

[Lisa Raitt, Conservative, Halton, ON]

Mr. Chair, the underlying assertion of fact is incorrect. I do not knowingly think that this is impossible. In fact, I think it is quite possible, and that is exactly why we introduced this standard, based upon good information that was provided to me by officials.

At the end of the day, we are trying to get to the right place for rail safety in this country. We know that these companies can absolutely meet three years, and if they cannot, they will be telling it to us as we go through with developing standards.

Today in the United States, the secretary of transport made the same kind of analysis, that they do not want to be using these cars at all for the purposes of transporting, so we are on the same page on this. We want safer communities and safer rail travel.