House of Commons Hansard #209 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was illegal.

Topics

Business of the HouseOral Questions

3:05 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, it is on the same point of order. I think if you were to look into questions and answers based on Thursdays from the past, you would find that they were much shorter, more succinct, and to the point. Reflecting on the answer being provided by the government House leader, we just witnessed that he went completely off topic, wanting to talk about what is a fair plan that the leader of Liberal Party was putting forward for Canadians. It is inappropriate because we do not get to ask questions and respond to what the government House leader is doing. The questions and answers that are normal on Thursday should go back to the way they were, and that was—

Business of the HouseOral Questions

3:10 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

Order, please.

I see the hon. government House leader rising. I am of the mind at this point that we are having the effect of actually prolonging the Thursday question even more. The opposition House leader has commented on a subject that has come up before. Indeed, the object of the Thursday question is to provide questions and then a response from the government House leader around the schedule that could be expected for the House in the weeks and in the period following. Indeed, we know that commentary has been allowed, and in fact, a measure of balance on each side, in terms of the time, is the expectation.

We do not time these things precisely, I must point out, but it is my view that the government House leader was wrapping up his comments and was pretty much in proportion, time-wise, to the opposition House leader. Of course, I could stand to be corrected on that, but it seemed to be about the same amount of time.

We will look to the government House leader to perhaps wrap up on the Thursday question, and then we will get on with the business of the House.

Business of the HouseOral Questions

3:10 p.m.

Conservative

Peter Van Loan Conservative York—Simcoe, ON

Mr. Speaker, I will have to let the one procedural matter go. I cannot let it go without commenting on it. The notion that there has ever been a proportionality in answering this question is utterly absurd. In fact often the opposition would simply ask, “What are your business plans for the week?” If I am to answer in a similar amount of words, I guess I would have to say, “Well, we will debate legislation”. That is not a terribly meaningful way of answering that, so I will simply dismiss that with all the attention and credit it requires.

The items I was discussing, to which he took objection, were actually the items that we will be discussing in the week ahead, which is what he asked me about, so I am telling him.

The one we did today, which was the ways and means motion, lays the groundwork for the budget bill that we will be debating. It is part of our balanced budget, and of course, we have seen from the opposition parties their intention to scrap all those very good policies. I know they do not want Canadians to know about that; hence his interruption. That is what we will be debating. That is what we will be delivering to Canadians.

The House proceeded to the consideration of Bill C-52, An Act to amend the Canada Transportation Act and the Railway Safety Act, as reported with amendment from the committee.

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

There is one motion in amendment standing on the notice paper for the report stage of Bill C-52. The hon. member for Saanich—Gulf Islands has indicated to the Chair that she does not wish to proceed with her motion. Therefore, the House will now proceed without debate to the putting of the question on the motion to concur in the bill at report stage.

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Halton Ontario

Conservative

Lisa Raitt ConservativeMinister of Transport

moved that the bill be concurred in.

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Some hon. members

Agreed.

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

(Motion agreed to)

When shall the bill be read a third time? By leave, now?

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Some hon. members

Agreed

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Conservative

Lisa Raitt Conservative Halton, ON

moved that the bill be read the third time and passed.

Safe and Accountable Rail ActGovernment Orders

3:10 p.m.

Essex Ontario

Conservative

Jeff Watson ConservativeParliamentary Secretary to the Minister of Transport

Mr. Speaker, I am pleased to rise today to commence third reading of Bill C-52, the safe and accountable rail act, which seeks to amend both the Canada Transportation Act and the Railway Safety Act.

As parliamentary secretary to the Minister of Transport, I have the great privilege to be a member of the Standing Committee on Transport, Infrastructure and Communities and to have been able to take part in the study of this extremely important piece of legislation.

Before I speak to the important points raised during committee stage, I would like to take a few minutes to remind all members of this place of the important components of this legislation, beginning with the important amendments to the Canada Transportation Act.

As stated by the Minister of Transport at committee, the tragic Lac-Mégantic derailment has shown us that our liability and compensation regime for rail must be strengthened. The Montreal, Maine and Atlantic Railway only carried $25 million in third-party liability insurance, which we now know is not nearly enough to cover the incredible magnitude of the resulting damage and loss of both life and property that night.

With this bill, railways would be required to hold a mandatory level of insurance based on the type and volume of dangerous goods they carry. These levels would range from $25 million for short lines carrying limited or no dangerous goods to $1 billion for railways carrying significant amounts of dangerous goods, namely CN and CP.

These mandatory insurance requirements have been set based on analysis of historical accident costs, taking into account the severity of past accidents involving certain goods. These requirements would make certain that a railway's insurance directly reflects the risk associated with its operations.

These insurance levels were determined to be adequate to cover the cost of the vast majority of potential accidents and, while a scenario of the magnitude of Lac-Mégantic is an extremely rare occurrence, we want to be certain that all costs in such a case would be recovered.

That is why a supplementary shipper-financed fund would be created to provide compensation above the railway's insurance for accidents involving crude oil and any other goods added through regulation.

In the event of a rail accident involving crude oil, railways would be automatically liable, without the need to prove fault or negligence, up to their insurance level, and that would happen immediately.

The bill provides that they would be liable for all actual damages, which includes damages to people, property, and the environment. There would be certain defences to this strict liability. A railway, for example, would not be held liable if the accident were a result of war, hostilities, or civil insurrection such as a terrorist act, as these occurrences are outside of the railway's control. If accident costs reached beyond the railway's mandatory insurance level, the supplementary fund would cover the remaining damages.

For the supplementary fund, we have included a broad definition of crude oil in recognition of the serious damage that all crude can cause if released. Even a less-volatile crude can have a grave impact on the environment and result in very high remediation costs.

The fund would be financed through a levy on shippers of $1.65 per tonne of crude oil transported by federally regulated railways, indexed to inflation. The aim is to capitalize the fund to $250 million, which is an amount that would provide substantial additional coverage for crude oil accidents above the insurance levels. Based on a reasonable projection of oil-by-rail traffic growth in the coming years, we have determined that, with the $1.65 per tonne levy, we would reach that target in approximately five years.

That said, however, it is important to emphasize at this point that the $250 million capitalization is a target and not a cap. The bill would allow the Minister of Transport to discontinue or reimpose the levy as necessary.

This means that the levy could continue longer than five years should oil-by-rail traffic grow at lower than expected rates. It also means that the fund could be capitalized to a different amount should that be considered appropriate.

Just to be clear. The fund will cover all costs above the railway's insurance and will not be capped. In the unlikely event that damages from a crude oil accident surpass both the railway's insurance level and the amount in the supplementary fund, the government's consolidated revenue fund would back up the compensation fund and would be repaid through the levy.

Bill C-52 also propose amendments to the Railway Safety Act, which would seek to further strengthen the oversight of Canada's rail safety regime in certain areas. These include the following: first, a new power for the Minister of Transport to order a company to take corrective measures should that company's implementation of its safety management system risk compromise safe railway operations; second, a new authority to regulate the sharing of information, records and documents from one party to another, other than the department, for example, from a railway company to a municipality; third, to broaden railway safety inspectors' powers to intervene in a more effective way with any person or entity, including companies, road authorities, and municipalities, to mitigate threats to safety; fourth, a broader power for the Minister of Transport to require a railway company, road authority, or municipality, to stop any activity that might constitute a threat to safe railway operations, to follow any procedures, or taking any corrective measures specified; and, finally, a cost reimbursement scheme for provinces and municipalities that respond to fires determined to be caused by a railway company's operation.

Part of Transport Canada's prevention strategy has been to ensure the department has an effective oversight regime. This means both ensuring that industry is in compliance with the various rules and regulations that govern them and also responding to changes in the risk environment.

Transport Canada continuously examines and monitors its resource levels to adjust and reallocate, as needed, to address emerging issues, trends and higher-risk issues.

Transport Canada has further enhanced railway safety in Canada by establishing the following new or amended regulations: grade crossings regulations; railway operating certificate regulations; railway safety management system regulations, 2015; transportation information regulations; and railway safety administrative monetary penalties regulations.

Allow me to refer back to the review of the bill at the committee stage.

The review of Bill C-52 provided the opportunity for the committee members to examine, in detail, the text of the bill, its purpose and objectives. Particular issues were raised and the hon. Minister of Transport provided some important clarifications, which bear repeating in the House today.

First, the minister assured committee members that no additional financial resources would be required for the implementation of these new proposed authorities and requirements. The department's operational budget was assessed and represents the level of resources adequate to carry out all of the projects and the priorities. Nonetheless, in the event additional funding is requirement, the government always has the ability to reallocate or request funding through the supplementary estimates.

Second, with regard to the supplementary shipper-financed fund, the minister made a number of important clarifications. The fund has been proposed, through Bill C-52, to provide substantial additional coverage for incidents involving crude oil. The fund would cover any damages that surpassed the railway's required minimum insurance coverage. To finance the fund, the government would introduce a levy of $1.65 per tonne on shipments of crude oil transported by a federally regulated railway. The formula used to establish the levy would be based on a mid-range growth estimate of projected oil by rail. The supplementary shipper fund cannot apply retroactively for incidents that occur prior to the coming into force of the legislation.

As previously mentioned, the proposed supplementary fund would not be capped or cut off. Therefore, claims against the fund would not be limited. The fund would be capitalized to $250 million. However, Bill C-52 would allow the Minister of Transport to suspend or reinstate the levy as would be necessary. This would ensure that the fund would be at the appropriate level to pay for damages in excess of railway insurance levels without holding excess capital unnecessarily.

The government modelled this compensation fund on the ship-source oil pollution fund in the marine mode. Levies for that fund were suspended once it had been capitalized. The fund has grown through interest over the past 40 years without the need for further levies. For the time being, the supplementary compensation fund will cover incidents involving crude oil.

However, the bill provides regulation-making authority to include other types of dangerous goods in the future. Moreover, Bill C-52 provides for a loan from the consolidated revenue fund if the resources in the fund have been exhausted. This loan would be subject to terms and conditions established by the Minister of Finance and would be repaid through the shipper levy.

Furthermore, this bill includes the authority to put in place a special levy on railways to help repay the CRF loan to ensure that liability continues to be shared appropriately in the event of a catastrophic accident. The funds would be supplementary to the newly proposed minimum liability insurance coverage for railway companies transporting dangerous goods.

The strengthened liability and compensation regime in the bill is in line with the modernized liability and compensation regime put forward for pipelines in Bill C-46, as well as the regime for offshore oil and gas in Bill C-22, which received royal assent on February 26. This includes a provision that ensures that the strengthened regime for rail would not preclude any other regimes, including future regimes with higher limits of liability from being applied to a railway accident.

It is also important to highlight the clarification made by the Minister of Transport at committee regarding subclause 152.7(1) of the bill. Through this subclause, only a railway company that is involved in a crude oil accident through physical operation of a railway, for example, moving a train or responsibility for tracks or cars, would be held liable without regard to fault or negligence.

In the Canada Transportation Act the terms “operate” and “railway” are defined in section 87 of the act. They are defined in a physical sense, not a commercial sense. Therefore, a carrier that quotes a through-rate or interswitches with a railway company that later has an accident would not be considered involved in an accident. With this strengthened liability and compensation regime for rail, the minister clearly stated in committee that she was confident, and “we do have the ability to ensure that the polluter pays and that taxpayers don't have to incur costs”.

The minister confirmed to committee members that where a crude oil accident was the result of an act of terrorism, the railway company would not be held automatically liable under our proposed legislation.

Finally, the committee discussed the cumbersome definition of “fatigue science” presently found in the Railway Safety Act. As stated by the minister, the definition included in the act is simply a definition of a term and does not add any implementation requirements toward the railway companies. By having the term predefined, it restricted the department's ability to enforce. Amendments to the act seek to remove the definition allowing the application instead of the new Railway Safety Management System Regulations, 2015, to fulfill its purpose of ensuring a company's safety management system includes mechanisms for applying the principles of fatigue science when scheduling the work of certain employees.

Following the Lac-Mégantic derailment, the Speech from the Throne in 2013 and the Auditor General of Canada's fall 2013 report, our government has worked to bring forward these amendments to strengthen railway safety in Canada and increase the industry's accountability. Within this process, consultation with our stakeholders, particularly on liability and compensation, was essential to achieve the results we see today in this bill. We are grateful for their collaboration, support and commitment to improve the safety and security of the railway system.

I urge all members to vote in favour of Bill C-52 so it can be referred to the other place as soon as possible.

Safe and Accountable Rail ActGovernment Orders

3:25 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, I want to thank the member for Essex for providing some background on the development of the bill.

From 1965 to 1974, I worked on the Canadian National Railway in the signal department. Over that period of time, which is an awful long time ago to today, there has been a change in the maintenance of the track and most of the equipment. I can recall as boy my father was a section man. We could look down a track and see that it was completely level and the spacing between the rails was perfect. It was maintained to a very high degree. Today I do not see that.

In essence, we agree with the bill and the direction it goes in, but one of the things I found surprising, and it was illustrated to us by a couple of people from outside of the rail system, was the fact that tankers carrying chlorine were not part of this as well as some other very dangerous chemicals. I am very curious as to why it is only oil.

Safe and Accountable Rail ActGovernment Orders

3:30 p.m.

Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, I think all of us in the House would agree on this. The practice of using slow speed by railway companies is no substitute for proper track maintenance. We expect rail companies to ensure that their property is well maintained in that way.

When it comes to the regime that has been instituted with respect to liability and compensation contained in Bill C-52, we did extensive consultations. One of the things that we are grappling with as a recent phenomenon has been the tremendous growth in the transport of crude oil by rail. By crude, I mean the many different forms, including the highly-flammable Bakken formation oil as well. That was the particular dangerous good involved in the tragic Lac-Mégantic derailment. We wanted to ensure we had an adequate regime for that.

The member will know that the bill does contain a provision in it for the regime to be expanded at any point in the future to deal with other dangerous goods, should that be determined necessary.

Safe and Accountable Rail ActGovernment Orders

3:30 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

Mr. Speaker, I want to go back to some of the comments my colleague made. We sit together on committee. I want to remind Canadians about a few things in the bill and the context within which it is situated.

The first context, and the first important point to remind Canadians of, is that on April 23 at committee, I asked the minister 10 consecutive times to come clean with Canadians with respect to the budget at Transport Canada in the estimates this year. Now the member will get up and say that those are not the real numbers, that the Conservatives rely on what the officials say. However, the reality is that the government calls the shots, and everybody knows it. Departments are allocated their resources, and everybody knows it.

Point one is that the budget at Transport Canada was cut 11% percent this year, or $202 million. Canadians should remember that when the Conservative government talks about rail safety. That is 11% in one department. More money was spent last year, $42 million, on economic action plan advertising, with $33 million on rail safety. That is point number one to remember.

Point two is that the bill was rushed through committee. It was a Conservative-dominated committee with two meetings. Here is what the four major witnesses said when I asked if they were consulted.

Phil Benson, Teamsters, said, “As far as I know, not at all”.

Robert Taylor, CP, said, “We got an answer when we saw the legislation”.

James Beardsley, Marsh Canada, said, “the answer I got was that it was not made available to them”, which is the briefing he provided.

Could the member explain those two points please? How does he expect people to do better with rail safety when the budget has been slashed 11%. Also, the top sectors in the country were not consulted.

Safe and Accountable Rail ActGovernment Orders

3:30 p.m.

Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, I only wish there were more facts involved in that particular intervention.

As the member will know if he studies the estimates, investments in front-line safety in every single mode of transport are up this year. That is in marine, rail, air safety, every single mode.

The department has suggested what resources it needs. Obviously, that is what the main estimates are for. There are also supplementary estimates should it become clear that the department needs additional resources to carry out its mandate.

Make no mistake that Bill C-52 is the product of extensive consultations, particularly when it comes to the liability and compensation regimes. We have heard from the railway companies that they would rather not have strict liability insurance. They do not want the strict measures that are in this particular bill. I would expect that from the railway companies. That is fair enough; they can take that position. The government, though, after that consultation and after listening to their position has determined that they will face tougher insurance levels, that there will be strict liability and therefore we will not have to prove their claims in court up to the maximum level of their liability.

Shippers also will share in that particular liability and compensation regime. They did not want to do that either, but we know that is the right way to go. Canadians support us in enhancing our system.

Safe and Accountable Rail ActGovernment Orders

3:35 p.m.

Etobicoke—Lakeshore Ontario

Conservative

Bernard Trottier ConservativeParliamentary Secretary to the Minister of Foreign Affairs and for La Francophonie

Mr. Speaker, I spent a lot of time working around the edges of the railroad industry in my past, and I understand. Many of the members opposite alluded to the fact that it is a continental industry, the United States and Canada. The rolling stock, crews and all kinds of equipment go across the border. It is an integrated industry.

I would like my colleague to expand on what the United States is doing. How do the Canadian regulations with respect to the shipper pays levy, as well as the compensation and liability regime, compare to what the United States is doing? To what extent were there discussions with the United States to make sure there were some similarities between our regimes?

Safe and Accountable Rail ActGovernment Orders

3:35 p.m.

Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, that is an important question.

With respect to an industry that has tremendous integration, as we can imagine, these railway locomotives and their rolling stock travel across the border and back many times carrying all kinds of goods and services to keep our economies moving. What is important in terms of an integrated approach is on the regulatory side, the way we look at design specifications, for example, for the new robust tankers that will replace the old DOT-111s, and ultimately the CPC-1232s in carrying crude oil, strong standards that are united to deal with the issue of these tanker cars that move back and forth.

Our liability and compensation regimes are different, though. For example, in the United States, if there is a railway accident involving dangerous goods, the government or any other party would have to go to court to prove their claims against a railway company. We just do not think that is the right approach.

What we have adopted after consultations with important stakeholders is an approach where we have both shared liability with railway companies and the shippers themselves. The railway companies will be required to carry strong levels of insurance, be they short-line or class 1 railways, and no provable claims against that. We do not have to go to court to prove a claim against that.

Should the costs of compensation exceed the railway company's insurance, we have the supplemental shippers fund that is not capped, but gives us strong room to grow to ensure that the polluter pays in the unfortunate case of an accident.

Safe and Accountable Rail ActGovernment Orders

3:35 p.m.

NDP

Hoang Mai NDP Brossard—La Prairie, QC

Mr. Speaker, I would like to thank the Parliamentary Secretary to the Minister of Transport for his speech. I agree with my colleague who spoke about problems related to inspections and replacing tracks, but I want to talk about the problems with the bill.

This bill contains several levels of minimum insurance coverage. As my colleague knows, I asked a question in committee pertaining mainly to class 1 railway companies. They must now have minimum insurance coverage of $1 billion. However, we learned that these companies, including CN and CP, already had accident insurance coverage of over $1.1 billion. They have perhaps $1.5 billion in coverage.

I would like to ask the parliamentary secretary why the government agreed to a lower level of coverage than what the companies are already paying now.

Safe and Accountable Rail ActGovernment Orders

3:40 p.m.

Conservative

Jeff Watson Conservative Essex, ON

Mr. Speaker, that was not an established fact at committee. I know that the opposition members hinted that they thought that was the case. Officials who were repeatedly queried on that could not divulge, because of proprietary concerns, what level of insurance the railway companies carry.

We know from the Canadian Transportation Agency that the $1 billion that is instituted is supportable in the current insurance market and that it will be strict liability. No one has to go to court to prove fault or negligence against a railway company in the case of an accident where dangerous goods are involved. That is a tremendous step forward when it comes to improving rail safety in this country.

Safe and Accountable Rail ActGovernment Orders

3:40 p.m.

NDP

Hoang Mai NDP Brossard—La Prairie, QC

Mr. Speaker, I am pleased to rise today to speak to Bill C-52 at third reading.

As the NDP transport critic and vice-chair of the Standing Committee on Transport, Infrastructure and Communities, I found it interesting to study this bill.

I agree with the Liberal member who said in his question that there was not enough consultation and perhaps not enough study. Indeed, the study period was relatively short for such an important bill.

Let me be clear: the NDP will support the bill. We believe that the polluter pays principle is important. Clearly, it was only after the Lac-Mégantic tragedy that the government finally decided to do something about rail safety. Unfortunately, it took a tragedy to finally spur the government to action, a tragedy that cost 47 people their lives, cost millions of dollars in damages and ruined many other lives.

It is sad that previous Liberals governments and the current government have been ignoring rail safety, the very principle of our rail system, ever since the Liberals privatized it. The problems only started when they privatized everything. They also left all the regulations, even inspections, up to the rail companies themselves. As we often say, the system that was implemented is based on self-regulation, and all the companies do their own audits and inspections. That is very clear.

This bill does have some very important points. As I have said from the beginning, we support the polluter pays principle. Obviously, it is not up to the public to pay for damages caused by the industry.

In the case of the Lac-Mégantic accident, MMA had only $25 million in liability insurance. When I asked the minister and Transport Canada officials about the cost, I was not able to get any firm figures, since the numbers vary. Apparently, $400 million has already been spent to repair damages. However, it could cost billions of dollars in the end. That is a huge amount of money.

Unfortunately, governments must pay because MMA filed for bankruptcy. The federal and the Quebec government had to spend money to repair the damage. When I refer to damage, I am also referring to the damage caused by the Conservative government for allowing self-regulation at a time when the rail transportation of crude oil has increased exponentially.

As for the budget, we see that there are gaps, and that has been raised many times. The government says it is taking action. However, there are budget cuts.

Let us look at just the office responsible for rail safety, the people who specifically look after implementing the system and ensuring that it is safe. We see that between 2010 and 2015, there were cuts of about 20%. Those cuts affected the people who look after rail safety and ensure the safety of Canadians. That shows that the government does not have its priorities straight.

We agree that there must be minimum liability levels. Once again, we deplore the fact that this was not the case earlier and that a company like MMA, with respect to Lac-Mégantic, only had $25 million in insurance coverage.

This bill is certainly a step in the right direction. It contains various categories for many rail companies, which will have to have minimum insurance levels based on the volume of dangerous goods shipped via its rail lines.

However, I asked the parliamentary secretary a question about the calculations. We wanted to know whether the amount established was sufficient. I gave the example of class 1 railways, like CN and CP, that have minimum insurance coverage of $1 billion. We learned from the news or other studies that these companies probably already had insurance coverage in excess of $1 billion.

Ultimately, the government reduced the amount of insurance coverage companies are required to have, when the purpose of the bill is to increase it.

Unfortunately, as the parliamentary secretary mentioned, when we asked questions in committee we were told that the information belonged to the railway companies. However, the government has the power to get that information. The Conservatives are the ones who did the study regarding the insurance limit, and once again, they are not being transparent. That is shameful.

The parliamentary secretary spoke about the additional powers granted to inspectors and to the minister in cases where tracks are not safe. That makes me think about what happened in Gogama, in northern Ontario, where other derailments occurred. They happened despite the events at Lac-Mégantic and the public outcry in regard to the dangers associated with the transportation of dangerous goods by rail. I think that, like me, any Canadians who saw the pictures were shocked to find out that this type of derailment is still happening. Cars carrying crude oil are still exploding.

The parliamentary secretary told us that the government introduced new standards for the DOT-111 cars, which will eventually be replaced. However, it will be another 10 years before they are all replaced. These cars will still be on our tracks for another 10 years, even though the Transportation Safety Board described them as dangerous and unsafe. The TSB said that these cars were essentially the same as the old DOT-111 cars that exploded in Lac-Mégantic.

This concern has to be taken into consideration. I am asking the government to set a deadline and show more leadership when it comes to protecting the public.

There is also the issue of inspectors and self-inspection. The system that was put in place and that has the support of the Liberals allows companies to do their own inspections before potentially, maybe, submitting them to Transport Canada for inspection.

The Auditor General issued a scathing report on rail safety. He said that the inspectors overseeing the safety of the system did not fulfill their obligations and that all they do is look at the rail company's plans without ensuring that they effectively protect the environment and the public. That is a problem.

Another problem with inspectors has existed for a long time. Let us take the example of the derailments in Gogama, which caused explosions. According to the TSB's preliminary report, the condition of the rails was definitely a factor. When we talk about inspectors, the government responds that the companies do the inspections themselves and that it expects companies to properly inspect their rails. However, it is careless to rely on self-inspection.

Before the events in Lac-Mégantic in 2013, there were 116 rail inspectors at Transport Canada. After the events in Lac-Mégantic, there were 117. The government added just one inspector. It seems that others were hired, but they are not officially assigned to rail safety.

What is certain is that all of the workers and unions in this sector agree that there is a problem with inspection. Even the rail companies, as well as the Railway Association of Canada, report the same problem. It is clear that there is a problem.

The government, meanwhile, is addressing this problem by making budget cuts. It makes no sense.

How can the government say that it cares about the safety of Canadians and then turn around and cut the budgets of those who conduct inspections and make sure that laws are in place and that the companies are complying with them, as well as ensuring that the rail lines themselves are safe? It is shameful.

As for the polluter pays principle, I applaud the fact that the bill provides for a compensation fund. Unfortunately, as my NDP colleague mentioned in his question, this fund applies only to accidents or disasters involving crude oil.

One question was raised by the Federation of Canadian Municipalities, the Canadian Association of Fire Chiefs and a number of other stakeholders who appeared before the committee. Why did the government not include other dangerous goods? The Conservatives were asked that question today. They replied that they were studying the issue and they would see. Do we need to have another accident like the one in Lac-Mégantic for them to realize that something has to be done? It is important to raise this issue. This is not about demagoguery. The government did indeed act after the Lac-Mégantic tragedy. The government has even said that this bill resulted from that tragedy. Why not also include a compensation fund for other dangerous materials, since that is a concern and the municipalities and first responders are asking for it?

Let us come back to firefighters. A question about training was raised by the Canadian Association of Fire Chiefs, a question that we had also brought forward. Yes, the aim is to prevent accidents. However, prevention depends on inspection. As we know, the government is failing in that regard. What must be done to prevent an accident, or at least to respond quickly when one does occur? How can we ensure that first responders are properly trained and that they have the resources they need?

Unfortunately, this bill is silent on that issue. This is what firefighters, among others, proposed: since there is already a fund in place—once again, I am referring to the fund established from fees paid by oil companies—why not use it to pay for training to ensure that first responders, firefighters and those who respond to emergencies receive the training they need?

This problem has been flagged and it is a serious problem, especially because we are shipping more and more dangerous goods by rail. Furthermore, based on the Lac-Mégantic accident and what is happening in the United States, for example, we can say goods are increasingly dangerous and there is less and less information about these goods. That was clearly the case in Lac-Mégantic. The dangerous nature of the goods being moved was underestimated.

Legislators or those who implement the regulations are not well informed. What about the people who respond to emergencies? What we are asking for is simple. We are asking for a fund to cover training for first responders such as firefighters and paramedics. How do we intervene in this situation? The Lac-Mégantic accident opened our eyes.

The bill could have covered this, but unfortunately it does not. There is still work to be done. As I said, the NDP will support the bill and hopes that it will pass quickly. However, there is still a lot of work to be done.

In committee, an amendment did not pass. It dealt with fatigue, or what is known as fatigue management.

The bill actually repeals a clause, repeals the definition of fatigue management, and we do not understand why. Just to be clear, what the definition basically said is that we have to base fatigue management on science, and what we are doing here is actually repealing that definition.

I asked the minister and officials, and the answer was not satisfactory. I think we want to make sure that we have a base, and our base was the definition of fatigue management, fatigue science. It was scientifically based, but unfortunately, that was deleted.

We will have to take a close look at the regulations. Unfortunately, from our perspective, the approach was going in the wrong direction.

We did not anticipate one of the other consequences that witnesses told us about in committee, namely the fact that some companies do not do the same kind of transportation for dangerous goods. Some companies transfer oil and other goods in certain places. These companies, therefore, do not transport goods the same way and do not have the same problems. This concern was raised, and I asked questions about it. I was told that these cases can be addressed through regulations. I asked the question clearly and openly, and now we will have to follow up. We have to figure out how to treat companies that do not pose the same risk but that transport goods that are, by definition, dangerous. We have heard that the costs can be quite high for these small companies. We are talking about smaller companies that might not have the means to pay for this insurance. As legislators, we need to trust Transport Canada and its officials to take that into consideration. We will keep a close eye on this issue.

There is something else we are disappointed in. It was already mentioned, and that is the fact that the environment has been put on the back burner. Certain priorities have been set out in the bill. We agree that municipalities or individuals who are victims of accidents should be compensated and helped at any cost. There is no doubt that they must compensated. However, the wording of the bill puts long-term environmental impacts in the back seat. The request cannot necessarily come from an individual who says he can no longer use a certain natural resource for the long term, a river for example, and that his rights have been violated in the long term. According to the current wording of the bill, only the government can go after the railways and say that they caused damage that undermines the long-term use of the environment. However, we know that in fact the government does not do that. It will not go after a company for damages. We are a bit surprised to see that this aspect does not have the same priority in the bill. We would have preferred it to be considered on an equal footing.

I would like to come back to the question that we asked ourselves: why did the government not go further in terms of coverage for dangerous materials? The reason I am mentioning this again is that the committee was almost unanimous in this regard. Firefighters, the Federation of Canadian Municipalities and the oil industry all asked us why the bill only went after oil companies or crude oil and why it did not provide for a fund that would cover other dangerous goods, since we know that other dangerous materials are being transported on our tracks. I asked the government that question. I was told that the matter was being looked into. I would have liked a more concrete answer.

However, we did obtain a more concrete answer in regard to what the Parliamentary Secretary to the Minister of Transport said about the cars. He said that there will be new standards for the cars. However, the United States announced that a braking system will be implemented and gave us a timeline.

The government established a deadline of 10 years for oil cars, but as we said, we would like that deadline to be shorter. The United States said that the braking system for cars was a safer system. Unfortunately, the government did not give a deadline in that regard in its announcement.

The government told us that it was looking into the issue, but it has not even set a deadline yet.

We need to learn from our mistakes. Twenty years ago, the Transportation Safety Board of Canada said that the DOT-111 cars were dangerous. The Liberal government did not do anything about it. The federal government did not do anything either and the Lac-Mégantic tragedy occurred. We need to think about that. The government needs to act quickly, show some leadership and protect the public.

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4 p.m.

Etobicoke—Lakeshore Ontario

Conservative

Bernard Trottier ConservativeParliamentary Secretary to the Minister of Foreign Affairs and for La Francophonie

Mr. Speaker, I listened carefully to the speech by the NDP's transport critic. I must correct a few of the member's statements. When he said that the government has reduced the number of inspectors, he knows that that is untrue. We have been significantly increasing the number of rail inspectors for many years now.

The changes regarding the regulations for insurance and money for cleanup in the event of an accident are significant. The member himself said he wanted these changes to be put in place quickly. This is an important bill that he will surely support. Will he tell us that today?

We are at third reading stage of this bill. We had a lot of debates at second reading and we even studied the bill in committee. The Canadian—or even North American—public expects us to bring in a modern compensation and insurance regime, especially in light of the serious issues associated with transporting dangerous goods.

Can he promise that they will stop prolonging the debate? We are having an important debate today, and there is no use repeating the same arguments for weeks. At the end of today can we put an end to this debate and hold a vote?

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4 p.m.

NDP

Hoang Mai NDP Brossard—La Prairie, QC

Mr. Speaker, I thank the Parliamentary Secretary to the Minister of Foreign Affairs and for La Francophonie for his question.

I would like to start by correcting the statements he made in his preamble. He said that I said the government had reduced the number of inspectors and that that was false. That is not what I said. I said that the budget for inspectors had been cut. If the Parliamentary Secretary to the Minister of Foreign Affairs and for La Francophonie were to look at the budget, he would see that it shrank by nearly 20% from 2010 to 2015.

As to the number of inspectors, I said that had gone up. That is true. In 2013, before Lac-Mégantic, there were 116 inspectors. After Lac-Mégantic, after all of the debates we had, after all of the inspection problems and all of the people's concerns, how many more inspectors are there? Just one. So yes, that is an increase, but when the number of inspectors goes up by just one, I think that is a bit of a problem.

In answer to his question, I am not the one who controls the House. Personally, I feel that this bill is important. I supported it. Still, it is important to have a debate. I know that the government is in the habit of imposing time allocation, and has done so 95 or 96 times now because it does not like hearing what we have to say. If my colleague had listened to my speeches, he would know that I talked about the amendments and the topics we discussed in committee. This is the first time I am doing this because this is the first time we have seen the committee's report. I think it is important to have dialogue and debate.

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4:05 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

Mr. Speaker, I am a little astounded hearing the comments of the Parliamentary Secretary to the Minister of Foreign Affairs. Clearly, he does not know what is happening with this bill and he has not been present in committee.

One of the big problems with this bill, 57 pages and counting, is what the Conservative majority in committee did. It circumscribed all of the expert witnesses to two meetings. That is two meetings of two hours each. In the most important single meeting that was held on this question of liability insurance, the four principal witnesses who testified, a large railroad, a short-haul railroad, the number one insurance company in the railway insurance business and the Teamsters union, all said there is a series of unintended consequences in the bill, a series of shortfalls, misgivings and changes in the statute that are going to lead to serious litigation. No legal opinions were rendered.

What we really have is a situation where the government is rushing this legislation through pursuant to the Lac-Mégantic tragedy, but, more importantly, with the deadline of the election in the fall very much in its window.

Maybe my colleague from the NDP can comment and try to help us divine why it is the government, instead of doing its homework with proper stakeholder outreach and negotiation to improve this bill, is so incredibly pigheaded about rushing this through in a form that is not complete.

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4:05 p.m.

NDP

Hoang Mai NDP Brossard—La Prairie, QC

Mr. Speaker, it is always a pleasure to sit with the member on the transport committee. Yes, as he knows we did not have a lot of meetings on this bill at committee.

It is true that consultation is important, but what was mostly of concern to me is the lack of information. Again, when I asked about the liability issue, especially how much the class 1 railways were paying, we did not get the answer. It is hard for us as legislators to be able to say whether this bill is the best one in terms of how it was drafted, why it was drafted or why those provisions are there. Some of the comments we made were not acceptable for the other side.

There could have been more consultation and discussion, but at the end of the day I do agree that this bill is a step in the right direction. It talked about polluter pay and we have always said that Canadians should not have to pay for this, but there will be unintended consequences. What I was saying in my speech is that we will have to follow up. We will have to ensure that this legislation and the regulations that come with it are correct.