Mr. Speaker, thank you so much for giving me the honour and privilege to stand in the House today. I am pleased to rise in support of Bill S-2, the strengthening motor vehicle safety for Canadians act. This legislation would better protect Canadian families from the risks of dangerous defects in their vehicles.
Of course, I am a little disappointed that the government chose not to accept two of our amendments that we put forward during committee stage. I will be talking about that a bit further. However, permit me to take the next few minutes to describe the purpose of this legislation, as well as how I believe those two amendments could have actually strengthened it, had they been received.
The bill would give the Minister of Transport the authority to order companies to correct a defect or a non-compliance, and it would create a tiered penalty structure for wrongdoings that are committed under this act, which is an excellent step in the right direction. Every single day our children, spouses, and other loved ones are on the road going to sport practices, music lessons, school, work, or here, there and everywhere. At the end of the day, this legislation would help to better protect those who use our roadways.
The bill before us would give the Minister of Transport the power to issue a recall notice, even if the manufacturers of car parts do not want to take the issues before them seriously. In the rare event that a manufacturer is found to be non-compliant, the minister would have the power to issue fines to a manufacturer for up to $200,000 per day until direct action and responsibility are taken. This gives the legislation teeth, which is good and necessary if we want to see change. Furthermore, this legislation would prevent manufacturers and dealerships from being able to sell new vehicles until the recalled part is fixed.
A similar bill was originally introduced in the House of Commons in 2015 under the previous government. The fact that the Liberals have now taken it and largely copied a portion of text from Bill C-62, as it was introduced previously, is a nod in the right direction and a nod to the excellent work that was completed by the deputy leader of the Conservative caucus, who was then the transport minister.
What were the two Conservative amendments that were put forward and unfortunately not included?
First, the Liberal committee members chose not to accept an amendment that required the minister to ask a vehicle manufacturer if it had internal tests or awareness of a defect before initiating federal tests on a vehicle. This is important because time matters. It is of the absolute essence when the safety of Canadians is at risk. Therefore, if a company already had this internal data on how to fix a problem or had data on the extent of the problem, we would not need to spend more time trying to duplicate those tests and take action.
Second, the Liberal committee members also shut down a different amendment that would have clarified the responsibility between the dealer and the manufacturer. Specifically, it would have dealt with who exactly is responsible to correct a defect before the sale of a vehicle. Details like this help to bring clarity to the bill and are very essential. They ensure that dealers and manufacturers understand who is responsible for ensuring the safety of the vehicle before it is sold. It would be a shame for a known defect to go uncorrected simply because a dealer thinks it is the manufacturer's responsibility and the manufacturer thinks it is the dealer's responsibility, so both go back and forth on it, or better yet, do not do anything at all.
It is important to make the point that while this piece of legislation is an excellent step to increase safety or at least the safety standards in Canada, as a whole our country's auto manufacturers do an excellent job at policing themselves and looking out for the safety and well-being of consumers. From 2010 to 2015, the number of safety-related recalls went down by 74%. Many companies have realized the risk of not issuing a recall and have stepped up to the plate and taken responsibility when necessary to do so.
Nevertheless, though few, there are some examples of companies that have delayed issuing safety recalls in order to protect their image or bottom line. Therefore, this bill is of course an effort to deal with those situations. One such example would be the massive Takata airbag recall of 2015. Takata is a huge parts supplier to more than 19 different auto manufacturers. When defects were uncovered in its airbags, the first concern of some vehicle manufacturers was to put liability on Takata instead of fixing their vehicles that used Takata parts. Different manufacturers issued recalls at different times, sometimes prioritizing a recall in the United States before getting around to issuing a recall in Canada.
Here is a brief history. The first of the Takata airbags where actually recalled in 2008 here in Canada, but because Canada relied on voluntary action, few details were provided to Transport Canada. As a result, Canada failed to detect that airbag recalls from several different car manufacturers all originated from this central company. It was government regulators in the United States who finally connected the dots in 2014 and put a recall order out. Instead of being proactive like U.S. officials, Canadian officials could only be reactive in this instance. It took until 2015 for the majority of recalls to be issued for these airbags in our country. In fact, it was not until 2017 that these recalls were completely cleared up.
Why did it take nearly seven years for a car company to recall all these potentially deadly airbags? The answer is that Canada's laws have not kept pace with other industrial countries, thus putting us at a significant disadvantage. Let us look at the United States, for example. The United States is often lauded as a positive example in this area. It has much stronger laws that allow the government to enforce a recall.
Until Bill S-2 is passed, the Government of Canada is relying on voluntary compliance for recalls. Simply put, at the moment, our motor vehicle safety legislation just does not have teeth. It does not have an enforcement mechanism. As well, punitive damages in court are significantly lower here than they are in the United States of America. This adds up to less than an incentive for vehicle manufacturers to issue recall notices in Canada and to prioritize recalls in the United States first.
Going back to the Takata example, once the problem was understood, there was a global shortage of the replacement airbags, which meant it was further delayed until this problem was solved.
How can we ensure Canada is treated the same as the United States by larger multinational car manufacturers? First, we need better inspection and testing when the first signs of a potential defect come to light. The legislation before the House today would significantly increase the power of the minister to order tests and studies of potential defects. It also includes significant fines both against an individual and a company that gets in the way of a government inspector.
Second, we need to increase the power of the minister to force companies to take responsibility, even if they were not the manufacturer of the part. This legislation makes it very clear that car manufacturers are, in fact, responsible for their final product. If they picked a supplier with a defective part, it is still on the manufacturer to make it right for the consumer.
Third, we need to give the minister the ability to initiate a recall. This applies to manufacturers that have not identified a defect in the vehicles they sell, but could now be compelled to issue a recall if a sub-standard part is used in the vehicles they manufacture. Even in 2017, a decade after the first recalls, there were still new recalls being made for these Takata airbags. This legislation would have allowed the minister to issue a directive to all manufacturers in Canada to replace all Takata airbags, full stop. Instead, some Canadians found out years later they had been at risk all along.
In conclusion, this legislation is a very positive step in the right direction. The Conservative Party is very proud to stand behind this legislation and take it forward in order to benefit the lives of Canadians. We believe it will look after their safety and well-being, and that our loved ones will be protected.