Madam Speaker, I would like to thank my hon. colleague from Victoria and congratulate her again on having won her election.
Our government takes the health and safety of Canadians and our environment incredibly seriously. We are committed to clean transportation and to working to make sure Canadians have clean air and healthier communities. We are also committed to enforcing the laws that protect Canada's environment and the health of Canadians.
On January 22, 2020, Volkswagen AG, a German-based car manufacturer, was ordered to pay an unprecedented $196.5-million fine after pleading guilty to 60 charges for offences under federal environmental regulations. This fine is the largest penalty ever levied in Canada against a company for an environmental violation. In fact, it is 20 times higher than the next-largest fine, which reflects the gravity of the offence.
The charges relate to unlawfully importing nearly 128,000 vehicles that used defeat devices. A defeat device, as mentioned by my hon. colleague, consists of software that reduces the effectiveness of the emission control system during normal vehicle operations and use. Volkswagen AG was also charged with providing misleading information to Environment and Climate Change Canada.
The $196.5-million fine is on top of the class action settlement by VW AG that compensated Canadian consumers of the non-compliant vehicles and provided benefits and buyback options to them up to a maximum of nearly $2.7 billion.
As well, VW AG paid a civil administrative penalty of $17.5 million under the Competition Act for misleading advertising related to the sale of those vehicles.
It is important to note that penalties are based on precedents. This result has raised the bar on environmental fines in Canada.
It is difficult to compare the situation in the U.S. with that in Canada. They are different jurisdictions with different legislative and legal processes.
Environment and Climate Change Canada's investigation was thorough, comprehensive and methodical. This was a complex case involving a number of domestic and foreign organizations and a number of potential offences under the Canadian Environmental Protection Act. Investigators needed to take the necessary time to gather sufficient evidence, both domestically and internationally, and time was needed to analyze the massive amount of information and gather relevant evidence.
The $196.5-million unprecedented fine will go to the environmental damages fund. It will be used to pay for projects that focus on improving Canada's environment across the country. The environmental damages fund was created in 1995 to create a mechanism for directing funds received as a result of fines, court orders and voluntary payments to priority projects that will benefit our natural environment.