moved that the bill be read the third time and passed.
Mr. Speaker, I am pleased to speak today to safeguarding Canada's seas and skies act. This project focuses on five key initiatives: amendments to the Canada Shipping Act, 2001, the Marine Liability Act, the Canada Marine Act, the Aviation Industry Indemnity Act, and the Aeronautics Act. Today, I would like to speak specifically to the proposed changes to the Marine Liability Act and the Canada Shipping Act, 2001.
First, turning to the Marine Liability Act, the proposed amendments will implement the commitments of the Hazardous and Noxious Substances by Sea Convention, helping to ensure Canadians are adequately compensated for the damage caused by spills of hazardous and noxious substances from ships. For this reason, I highly encourage the passage of the bill so it can be adopted as quickly as possible.
The proposed amendments to the Marine Liability Act will fill an important gap in the current liability and compensation regime for ships, because they protect Canadians against the financial consequences of hazardous and noxious substances and spills from ships. They will also ensure that shipowners carry the appropriate amount of compulsory insurance for the risks associated with the cargoes they carry. Finally, they will provide Canadians access to an international fund to provide compensation beyond the shipowners limits.
Canada has an extensive history of seeking economic gains from international trade and, in particular, through international shipping which, worldwide, is responsible for the carriage of 90% of the world's goods. With the world's longest coastline bordered by three oceans and a wealth of natural resources, this will surely continue to be the case as Canada looks to move those resources to existing and new markets.
Given this, it is important to have in place the appropriate legislation and regulations to minimize the risks associated with marine transportation. Spills of hazardous and noxious substances from ships can be costly to clean up and this government is taking action to ensure that Canadians are insulated from these costs. Shipping is inherently a global industry and it is critical to the practical functioning of global commerce. With the international nature of this industry, it is important to advance an international framework and contribute to the uniformity of international maritime law.
Canada has had a long-standing tradition of multilateralism with regard to international shipping and Canada's heavy involvement in the advancement of the Hazardous and Noxious Substances by Sea Convention is indicative of that long-standing tradition.
The 2010 Hazardous and Noxious Substances by Sea Convention would provide roughly $400 million in compensation for a spill of hazardous and noxious substances, which is currently not available. It would establish strict liability for the shipowner and would introduce compulsory insurance for the liability for the pollution damage caused by a spill of hazardous and noxious substances from a ship. This is a major improvement over the current regime as, currently, shipowners are not required to carry insurance for their liability in relation to a spill of hazardous or noxious substances. Should damages exceed the shipowner's insurance coverage, the convention would provide access to an international fund that would pay compensation for pollution damage caused by such spills.
The international fund, once established, will be paid into by cargo owners. By sharing the responsibility between the two principal parties involved, this convention supports the very important polluter pays principle, one that our government seeks to enshrine in law whenever possible.
The convention covers a wide variety of substances, some 6,500 hazardous and noxious substances, that are carried in bulk packages and containers along our coasts and through our ports. We have a robust maritime governance regime and we have implemented some tough prevention measures, but, even so, in the unlikely event of a spill, these amendments would allow affected individuals to submit claims for compensation. This would include claims for cleanup costs, economic losses, damage to property, and environmental damages.
Through these amendments and by joining the convention, businesses that could be directly impacted by a spill would have access to compensation from the polluter. This includes the fishing and tourism sectors that are usually the most affected economically. It would also see that compensation would be available for environmental restoration.
These changes would also include loss of life and personal injury claims, ensuring that compensation would go to those who were affected in the worst possible way. People who are hurt, or worse, by an explosion of a hazardous substance on a ship, including oil, would receive proper compensation. This protection would be extended to both the crew on board the ship and any innocent people affected outside the ship. Currently, there is no such compensation available. Victims must pursue shipowners in courts.
When the bill was being discussed in committee, the members heard from many witnesses who strongly supported these amendments. It was well-recognized that this was an important step forward and filled a crucial gap in the current liability and compensation regime. Those stakeholders reminded us that this convention was a significant improvement over what was currently available, which we believe is woefully inadequate.
In the case of an incident involving hazardous and noxious substances today, the shipowner is not held strictly liable. That means victims are required to prove fault or negligence on the part of the shipowner. These amendments would remove that burden and guarantee that compensation would be available.
The shipping industry is supportive of the convention because it gives them certainty and the ability to ensure against a known risk. The convention is viewed as the most efficient way to offer coverage for a ship-source chemical spill.
Such conventions avoid negative impacts to the ability for ships to trade internationally, as these are mobile assets that trade across the world on a continual basis. Therefore, the convention pools the risk and the financing of paying compensation to victims among a large number of players. This minimizes the costs of insuring the risk. The access to the international fund allows higher amounts of compensation than what shipowners alone can provide. The international nature of the fund means that all major industries that trade in hazardous and noxious substances are sharing the financial burden of paying for compensation.
To attempt to do this nationally would mean that Canadian industries could never offer the same levels of compensation as the international fund could. Of course that would put Canada at a competitive disadvantage and consumers would end up paying for a system that is ineffective.
For those reasons, I highly encourage the passage of this bill, which contains these amendments to the Marine Liability Act.
The bill being discussed today is an important component of our government's plan to enhance the safety of shipping in Canadian waters and protect our marine environment. We expect our international trade to increase in the coming years as demand for our national resources grows. With this growth, comes higher volumes of vessel traffic.
For this reason, it is becoming more and more important than ever to ensure that Canada has appropriate measures in place to protect people and the environment from potential oil spills. That is why on March 18 of last year we announced our intention to create a world-class tanker safety system. It is a comprehensive approach. It is made up of several measures which are all designed to prevent spills from happening, ensure that proper response is there if they do occur, and make polluters pay.
These measures also include the proposed amendments to the Canada Shipping Act, 2001, that are now before the House as part of Bill C-3.
Since last March we have already taken action to protect people and the environment from potential oil spills. To give an example, Transport Canada has increased inspections of foreign tankers in our waters to ensure that they meet internationally accepted standards. Our government has increased flight hours for the national aerial surveillance program. This is a great program. It is a program that allows us to detect ship-source oil spills in all three of our oceans and the Great Lakes, and significantly contributes to our ability to hold polluters accountable.
In February, I had the opportunity to participate in a surveillance flight. I can assure the members of the House that this is a very effective program.
In addition, we appointed a tanker safety expert panel last March. It has submitted a report on ways to improve tanker safety south of 60° north latitude. Our government is currently consulting with all parties about these recommendations. Next fall, the panel will submit a second report. This one about the regime in the Arctic and hazardous and noxious substances.
These measures and others are an important part of how we plan to ensure that Canadians benefit from a marine environmental regime that is truly world class.
The proposed amendments to the Canada Shipping Act, 2001 that I am now putting forward for third reading are a key component for our efforts to build a world-class tanker safety system. These amendments were debated by the House during second reading. I am encouraged that members of the House generally recognize that our proposed measures would improve safety in our waters. They would enhance government oversight of industry, and they would increase our enforcement powers.
The amendments have also been reviewed by the Standing Committee on Transport, Infrastructure and Communities, which heard directly from stakeholders, as it did with respect to amendments under the Marine Liability Act. I am pleased that the reaction from industry has been favourable. That shows that stakeholders understand the value of the measures we have proposed. Their support confirms that these changes are practical and they are achievable.
I would like to remind the House briefly to what these amendments relate: providing immunity for agents of response organizations, strengthen the requirements for oil handling facilities, and extend application of administrative monetary penalties.
Under the current marine oil spills preparedness and response regime, the polluter is responsible for cleaning up oil spills. The Canada Shipping Act, 2001 protects response organizations from civil and criminal liability as they carry out their work on behalf of the polluter.
The first proposed amendment will clearly provide immunity for certain certified Canadian response organizations when they respond to a spill that occurs when an oil handling facility is unloading or loading oil to or from a vessel. This would clarify that they are covered by the act when responding to these particular situations.
A further amendment would provide the agents of a certified Canadian response organization with the same level of immunity when responding to an oil spill in Canadian waters. These agents would be able to proceed with the cleanup and know that would they have the same level of protection as the Canadian response organizations that engaged them. This would expedite their response, which is a significant advantage in a case of an emergency. Since this coverage would also extend immunity to non-Canadian responders, this measure would increase Canada' s access to international resources.
If there should ever be a large-scale oil spill, these additional resources could really complement our own environmental response capacity, and that would help ensure the fastest, most efficient response possible, eliminating possible bureaucratic, jurisdictional hang ups that could further impact lives and the environment.
Bill C-3also puts forward amendments that would strengthen the regime governing oil handling facilities during the loading or unloading of oil to or from a vessel. Currently, under the Canada Shipping Act, oil handling facilities are required to prepare oil pollution prevention plans as well as oil pollution emergency plans, and they have to keep these plans on site. The plans have to detail who is responsible for taking specific action to prevent oil spills and to respond adequately if they do. The amendments would introduce new requirements for these facilities, and that would help enhance government oversight.
To give an example, we are reinforcing the requirements that the operator at the oil handling facility must ensure that its plans are kept up to date. We would also require that the operators of existing oil handling facility notify me, as Minister of Transport, of their operations. This is simple and it would help ensure that oil handling facilities set out in the regulations would be identified. This requirement would facilitate regulatory oversight and ensure that all of these facilities would meet a sufficiently high safety standard in their operations.
New facilities will also have to submit their plans to me before they begin operations, as would those who were making significant changes that might affect the loading or unloading of oil to or from vessels. Examples of this are changes to capacity, changes in equipment, changes in design or the type of product that they are transferring.
Under the proposed amendments, operators of oil handling facilities will also have to demonstrate how they comply with the act and the regulations.
In addition, the changes give me and any future minister of transport the authority to direct an operator of an oil handling facility to take the necessary measures to adequately prevent marine oil pollution. That is going to include the authority to require an operator to repair, remedy, minimize, or prevent pollution damage from these facilities, or to stop the loading or unloading of oil to or from vessels.
Taken together, these amendments will significantly increase oversight of the operation of oil handling facilities, both existing, and new ones as well. It will help ensure that oil spills are prevented whenever possible, and that appropriate measures are in place if a spill should happen.
Lastly, Bill C-3 addresses enforcement of the legislative regime to promote compliance. Enforcement should be adaptable to the seriousness of an offence. Marine safety inspectors in my department will be able to issue administrative monetary penalties for contraventions of part 8 of the act and its regulations. This ability, in addition to the existing enforcement powers under the act, only strengthens Canada's marine oil spill preparedness and response regime.
In conclusion, this is a bill that is an important step in our government's comprehensive plan to develop a world-class tanker safety system in Canada, and in particular off the west coast. I look forward to having all members of this House support the safeguarding Canada's seas and skies act.