Mr. Speaker, I am pleased to speak to Motion No. 79.
The motion from the hon. member for Pictou—Antigonish—Guysborough recommends that this House express its opinion that the criminal code should be amended to address the issue of the criminal liability of corporate executives and directors. I commend the member opposite for again bringing this issue before the House. It is one which requires our serious consideration.
It is evident that this motion has its origins in a tragic explosion in the Westray mine on May 9, 1992 in which 26 miners were killed. The subsequent public inquiry set up by the Nova Scotia government clearly established that mismanagement created an unsafe working environment that was a direct cause of the disaster. Throughout the inquiry and the prosecutions that followed from the investigation into the tragedy the responsibility of Westray officers and the Westray Corporation itself emerged as important and contentious issues.
The inquiry, chaired by Mr. Justice Peter Richard, produced the four volume report “The Westray Story: A Predictable Path to Disaster”. Judge Richard's report set out 74 recommendations aimed at improving mine safety so that such incidents never happen again, so that mining operations never again, in his words, go down that path to disaster.
I would like to read into the record recommendation 73 of Mr. Justice Richard's report as it forms the basis of the motion we are debating today:
The Government of Canada, through the Department of Justice, should institute a study of the accountability of corporate executives and directors for the wrongful or negligent acts of the corporation and should introduce in the Parliament of Canada such amendments to legislation as are necessary to ensure that corporate executives and directors are properly accountable for workplace safety.
I agree there is merit in examining the criminal law as it deals with the criminal responsibility of corporations. However, it is much more likely that we will need a combination of preventive, remedial and punitive measures in order to keep us from going down that path of disaster again. The solutions to the problem of corporate responsibility therefore will be found in a mix of criminal law, labour code regulation and the regulation of business activity.
Before I address the role of the criminal law in such a system, I will give an example of how preventive and remedial measures outside the criminal code can advance the objectives of workplace safety.
On October 28 last year the Minister of Labour introduced Bill C-12, a package of amendments to part II of the Canada Labour Code designed to improve workplace safety in industries under federal jurisdiction.
This legislation expands the responsibilities of both employers and employees in creating a safe work environment. It establishes three fundamental rights for employees: the right to know about hazards in the workplace; the right to participate in correcting the hazards; and the right to refuse dangerous work.
There is no point in having a right without a remedy. Therefore, Bill C-12 expands the role of workplace health and safety committees in inspecting workplaces and in investigating complaints. Similarly when an employee refuses to perform tasks that are considered dangerous, the legislation will streamline the complaint resolution process.
The Canada Labour Code also makes it an offence to contravene any of these rules and creates sanctions in the form of fines and terms of imprisonment.
We can leave the debate on Bill C-12 to another day but I urge colleagues to keep in mind that initiatives such as Bill C-12 serve many of the same objectives as the criminal law changes suggested by Judge Richard in the Westray report.
The motion before us today does not actually identify a particular amendment to the criminal code. Therefore, I would like to point out some of the factors involved in creating a criminal law sanction for corporate misconduct in the workplace. Any examination of the criminal law in this area must consider both the responsibility of a corporation itself and the liability of the people who are employed by that company.
On the first point, it should be understood that under the current law, it is already possible to charge a corporation with a crime. Section 2 of the criminal code includes companies in the definition of person and there have been instances where corporations have been charged with crimes. In fact in the Westray case, charges of manslaughter and criminal negligence causing death were laid against Curragh, Inc., the owner and operator of the mine, as well as individual employees of the company.
It is also important to note that the Supreme Court of Canada held in a 1985 case that a corporation will generally be liable for a criminal offence if a corporate director or officer commits an offence for the benefit of the corporation in the course of his or her employment.
In 1993 a subcommittee of the House Standing Committee on Justice and Solicitor General, as it was then called, issued a report on the recodification of the general part of the criminal code. This is the part that deals with fundamental components of criminal offences such as culpability and defences.
The subcommittee took the view that express rules on the liability of corporations should be added to the general part in a way that makes a sharper distinction between the company's liability and that of its employees. The subcommittee recommended as follows:
A corporation [should be] liable for conduct committed on its behalf by its directors, officers or employees acting within the scope of their authority and identifiable as persons with authority over the formulation or implementation of corporate policy, notwithstanding that no director, officer or employee may be held individually liable for the same offence.
If we want to change the current law, there are other approaches that deserve consideration.
Australian law makes it possible for a company to be charged with offences requiring intention, knowledge, recklessness or negligence. The Australian statute focuses on actions by the company's board of directors and its agents that tacitly or expressly authorize or permit the commission of a criminal offence.
I will turn briefly to the criminal liability of individual employees of a corporation as opposed to the corporation itself. As individuals the employees can be charged with any criminal offence they commit and for which they are morally responsible. Section 23 of the criminal code also creates criminal liability for anyone who is a party to an offence, which means doing or omitting to do anything for the purpose of aiding someone to commit that offence, or abetting that person in committing the offence. Section 23 also makes it an offence to counsel another person to be a party to a crime. Therefore, there is already a way of getting at individual employees whose misconduct in the course of their duties amounts to a crime.
These provisions in the criminal code are important because if the corporation has a general duty to comply with the law, individual directors and officers also have a duty to take into account interests beyond those of shareholders and beyond the balance sheet.
I understand that in the aftermath of the Westray inquiry the attorney general for Nova Scotia requested that the Minister of Justice for Canada address recommendation 73 of the Westray report and that the minister has agreed to do so. This step having been taken, I would suggest that the motion before us today does not advance the process.
Finally, criminal laws created by parliament should also recognize the role of provinces in the area of workplace safety. In this regard I note that the Westray report also recommends that the province of Nova Scotia undertake a review of its occupational health and safety legislation and take whatever steps are necessary to ensure that officers and directors of corporations doing business in the province are held properly accountable for the failure of the corporation to secure and maintain a secure workplace.
For these reasons I oppose this motion as it does not further the study of criminal law in this area.