Brent St. Denis

[Supply, May 1st, 2001]

Mr. Speaker, I am very pleased to join in the debate today on the NDP motion which, while focusing on the so-called chapter 11 of NAFTA, is really a cover for the NDP's very negative attitude toward free trade. I am very pleased to assist in putting down to some of the ideas that the NDP would put forward.

I come from the riding of Algoma—Manitoulin in northern Ontario where a large number of people—and we hope more in the future—work in the forestry sector, the mining sector and in tourism. If nothing else, these are very important commodities in trade. We should try to imagine what our lives would be like if we did not trade in forest products and minerals, and there was no movement of people across our borders to enjoy our fine country.

We could start with the premise that all trade begins between two people bartering something. In the history of humankind, trade started with two people bartering commodities for each other's mutual benefit. If we take that notion and carry it to the level of trade within a village and among villages, and take it to a higher and more sophisticated level involving trade among nations, the simple premise that trade should be mutually beneficial applies as much at the international level as it does at the local level. What is good between two people in terms of trade must and should be good between two people at opposite sides of the planet. There is no line beyond which trade no longer is a good thing.

What we are really debating is not that there should be free trade but that there should be freer trade. It is hard to imagine a world where there would not be some rules of engagement, but the point is that we want to move forever closer to a notion of free trade in a universe where everyone can play by the same rules.

I had the opportunity to spend two years teaching high school math and physics in Jamaica back in the early 1970s. Jamaica traded mainly bananas and sugar within the commonwealth. At the time it had a sweetheart deal with the United Kingdom. The United Kingdom actually paid a premium for Jamaica's sugar so that it would have a guaranteed supply. Some years ago the United Kingdom decided it did not want to pay a premium for the sugar and abandoned Jamaica as one of its suppliers.

During the years when Jamaica had a preferred sale for its sugar to Britain, a certain dependency was created. As a result, diversification in the Jamaican economy did not occur. When the British buyers decided to no longer pay that premium and abandon Jamaican producers, there was no diversified economy in which to respond. I had a chance to visit a couple of summers ago, and sadly the economy in Jamaica has gotten worse over the years, not better.

What we really want to be sure about in free trade is that there are as few rules as possible because the best and most effective way to eradicate poverty, not only in our own country but around the world, is to make sure everyone has equal and fair access to the markets of others.

If we really want to make sure that education, health care and other social services are available around the world on an equal basis, we must share the benefits and the markets, which are easy for Canadians to access but very difficult for poor countries to access, through trade.

In terms of our own economy, I have a few simple facts. Others may have mentioned these but they certainly bear repeating. Since 1993, under our watch, the country has produced something like two million new jobs, 80% of which are the result of trade. In fact, exports make up about half of our gross domestic product. There is $2.5 billion a day in trade. There is no question that Canada is a trading nation.

Again there is the guise of a concern about chapter 11. I want to make it very clear that our Minister for International Trade and, I think, our Prime Minister have said that we need to look at chapter 11. We need to tighten things up and we need some clarification, but let us agree that things are generally working. It is not unusual when we have an agreement to need to fine tune things from time to time.

I submit that if we waited at all times to sign an agreement that we knew was perfect before we began, we would never sign agreements. We would never buy a house. It would have to be perfect before we bought it and there is always something wrong with a house when we buy it, whether it is new or old. This is something we have to face after we get the key and open the front door for the first time.

We have to go into agreements and deals with the idea that we have made the best arrangement possible in the circumstances facing us and that we know ongoing negotiations will be necessary to ensure that as time goes by we can make those adjustments and tweak those rules and regulations so that things get better for all players.

A deal that impoverishes one partner and enriches another is not a deal. The government believes in trade that is fair, honest and transparent. I submit that the government, through the whole FTAA process, has been totally open to an extent limited only by our obligations to other nations in terms of confidentiality. To the extent that the Canadian government could be open, it has been so.

Before I use up all my time, I want to comment on a question from the member for Peterborough, who asked about the place of our first nations, our aboriginal people, when it comes to free trade or national trade. I think it is a very poignant question.

I have about 25 first nation communities in my large northern Ontario riding. In fact, with the support of trade officials with whom I have had a chance to discuss these matters, we are in the process of planning a one day conference on free trade in my riding to make sure that our aboriginal people as well as aboriginal people right through the Americas have an equal and fair opportunity to participate in the whole free trade process. To the extent that we leave people behind—and nobody on either side of the House would argue that we would leave anybody behind—either for reasons of illiteracy or reasons of access to resources and so on, to that extent we have failed.

Mr. Speaker, did I let you know ahead of time that I am splitting my time with the member for Mississauga South? Pardon me for not reminding you of that at the beginning.

Let me conclude by making a comment about the well televised protests we saw at the recent Quebec summit. I was a university student in the late sixties and early seventies and was involved in protests myself, although I never threw a brick or damaged any property. If one was in university or college in the late sixties and early seventies, one was no doubt involved in some form of protest or another. Those who would damage the reputation of legitimate protesters by damaging property have ill served all parties to the discussion.

Mr. Speaker, I just want to thank you for this opportunity, as I pass this on to my colleague, and say that the government plans to continue its excellent job when it comes to negotiating free trade for all its citizens.

[Canada Foundation For Sustainable Development Technology Act, April 5th, 2001]

Madam Speaker, it is a pleasure to take part in the debate on third reading of Bill C-4, which would establish a foundation to fund sustainable development technology.

Sustainable development involves balanced development, an approach that avoids either/or outcomes, that does not sacrifice one essential value for another. The goals are complex, not simple, for example, not just electric power, but power without pollution, not just industrial growth and busy factories, but these without environmental damage.

We know from the history of the last 30 years that these balancing acts are achievable. We need only think of the reduction of automotive emissions, the abatement of air pollution, improvements in energy efficiency, and technologies of enhanced oil recovery that squeezed new oil from old wells and at the same time reduced the environmental footprint.

The common factor in every case has been innovation: new thinking and new technologies that transform the equation, effective technologies, affordable technologies and sustainable development technologies. Innovation has helped us progress as a society and it will continue to do so in the future.

Innovation of this order is what Bill C-4 is about. The legislation is straightforward. It would authorize the establishment of the Canada foundation for sustainable development. The foundation would administer the sustainable development technology fund of $100 million announced in budget 2000.

The initial focus of the foundation would be on climate change and clean air because these are two major environmental challenges of our time, particularly as recent events in the U.S. have dictated. Under the climate change heading, it would concentrate on the development of new technologies to slow down, arrest and eventually roll back the threat of climate change, for example, technologies to reduce greenhouse gas emissions, to make carbon energy systems less carbon intensive, to increase energy efficiency, and to capture, use and store carbon dioxide.

In the clean air part of its mandate the foundation would focus on the development of technologies to reduce the level of contaminants in the air we breathe: volatile organic compounds, nitrogen oxides, particulate matter and others.

Technological innovation is by nature adventurous, pioneering work that will always involve some form of risk. That makes it particularly important that we achieve the best possible ratio of inputs to outputs, of investments to results.

First, the bill would require that the foundation concentrate its funding support on collaborative efforts rather than on projects by single entities. This requirement reflects a strong emphasis throughout the legislation on teamwork. It would also help ensure that funding goes to projects that receive technical review and peer support.

Second, the foundation would plan its activities to complement and to dovetail with those of other federal and provincial government programs on climate change and clean air.

In addition, the terms and conditions in the funding agreements would require the foundation to use the fund to lever investment from other sources to get the ball rolling, not to play the whole game. The foundation would fund up to 50% of eligible costs of any project but never more than 33% of eligible costs on average across the program. This requirement too is consistent with the promotion of teamwork. It is also a consistent maxim that a good predictor of a project's success is the willingness of proponents to put up some of their own money.

Let me now turn to another aspect of the proposed foundation: the arrangements for governance as visualized in the bill. Ultimately the extent to which the fund advances the cause of sustainable development depends on good targeting, good management and good administration. The machinery of government for the foundation that the bill proposes meets this requirement.

The legislation would require the foundation to operate at arm's length from the government and hon. members will see that the governance structure matches that requirement. Essentially it has two components.

One component would be a board of directors, an executive body that would be responsible for the management and services of the foundation and would exercise all its powers subject to the foundation's bylaws.

The second component would be a committee of stakeholders, potential clients of the foundation and other entrusted parties or members of the foundation as we call them. Their role would be analogous to those of shareholders in a private corporation in the sense that they would scrutinize and comment on the activities of the foundation.

Of the 15 directors of the board, 7 would be government appointees. Members of the foundation would appoint the 8 other directors. None of the directors or the members of the foundation would be from the government.

It is an accepted principle of sound design that form should follow function and it does in this case. The ultimate function is sustainable development, a process in which the trajectory is away from narrow perspectives to broad vision. That applies with full force to the development of sustainable development technology. It must be effective, environmentally benign and affordable. The form of the governance machinery proposed by the bill supports that breadth and balance.

Together, the members of the board of directors and of the foundation represent the experience and expertise of every sector linked to the development and implementation of sustainable development technology: the public sector, the private sector, academic institutions and non-profit organizations.

In order to have balance in the geographic sense, members will be drawn from all regions of Canada.

The bill also prescribes measures to ensure due diligence and accountability, requiring the foundation to establish sound financial and management controls and to appoint an independent auditor to verify the effectiveness of these controls. The foundation must submit an annual report to the Minister of Natural Resources, to members of the foundation and to the public. The report must include an evaluation of results achieved through the funding of projects and must be tabled in parliament.

The detailed terms and conditions associated with the management of the fund will be set forth in a funding agreement between the Government of Canada and the foundation. The Auditor General of Canada will scrutinize the funding agreement.

In order to begin implementation of the mandate of the sustainable development technology fund as soon as possible, Bill C-4 also contains conditional clauses that provide for the governor in council to designate a private sector foundation to serve as the foundation in accordance with the requirements of the legislation.

The legislation stipulates that in this eventuality the assets and liabilities of the private sector foundation would be transferred to the foundation and its board of directors and corporate membership would dissolve, thus triggering the appointment of the board and members of the foundation as stipulated in the legislation.

These conditional clauses are also contingency clauses, insurance against unnecessary slippage of schedule in the start up phase. In the event of administrative or other delays of process, they would allow the government to fulfil its promises to establish the fund.

I would like to bring hon. members up to date on the history of the bill. The legislation is based upon more than two years of the most open, transparent and comprehensive consultation that involved the provinces, municipalities, the private sector, academic institutions and non-governmental organizations.

Every aspect of Canadian life was consulted in that two year process and the sustainable development technology foundation is a product of that process. However we did not stop there. The consultation process continued even after the bill was tabled in the House on February 2. We have had the opportunity to discuss the bill in detail with directors of private sector foundations. We agreed that one or two issues related to the roles of members and the timing of their meetings could use clarification. We therefore prepared amendments to the bill to achieve those clarifications.

We presented the bill and the amendments to the House of Commons Standing Committee on Aboriginal Affairs, Northern Development and Natural Resources. After vigorous and constructive discussion the legislation and clarifying amendments received approval. During report stage we debated a further seven motions in amendment. One consequential technical amendment was adopted to ensure consistency of all amendments throughout the bill.

I want to take this opportunity to thank all members from the various parties represented in this House for their support. Bill C-4 was much enhanced because of the positive debate that was held.

In conclusion I repeat what the Minister of Natural Resources has said to the House on other occasions. He said that we could not rely on technology alone to meet the challenges of climate change and clean air or to achieve the balancing act of sustainable development but that a constant flow of new technology, effective technology, affordable technology and sustainable development technology were indispensable to our success.

As we know from experience, this is an area in which the right investment of dollars, effort and expertise directed at the right target at the right time could cut the largest problems down to size. It is the right legislation directed at the right targets at the right time. I urge hon. members to speed the legislation on its way.

[Foot And Mouth Disease, April 3rd, 2001]

Madam Speaker, in view of the late hour I will only speak for a few minutes. It is a very serious issue and I appreciate that many members have participated in the emergency debate this evening.

I wish to make sure that my colleagues on all sides of the House realize that in my northern Ontario riding of Algoma—Manitoulin there is a lot of agriculture. There are dairy farmers in the Algoma district, the western areas of the Sudbury district near Massey, the Lee Valley area, and over to Manitoulin Island. We have a surprisingly large number of dairy farmers. In addition others raise beef cattle. On top of that vast tracts of land in my riding are a habitat to moose and deer. The tragedy of the foot and mouth disease raging in the U.K. right now hopefully will never reach our shores. If it does, we have to protect, not only domestic animals that are husbanded by our farmers but the wildlife which is also our responsibility.

I received some comments from constituents such as Mr. and Mrs. Hoback of Thessalon who expressed their concern. Bill Orford, a farmer on Manitoulin Island, has also expressed concern. They wonder whether we should close our borders to tourists.

I am not sure we are at that stage yet but I think the government is prepared to look seriously at the problem and we will see what happens. We know we need to protect our agriculture and the tourism industries. We have a very responsible government. I am sure that members on all sides are will put partisanship aside.

As we witness the unfolding of this crisis in Europe, England and Argentina it is something like a volcano. We cannot plan for volcanoes but when they happen they come fast and furiously. Hopefully this will not be a volcano but it could well be.

I wanted to say a few words in support of the government's efforts so far to protect Canadians, Canadian agriculture and Canadian wildlife. Today we saw a British ship, which was bringing in equipment in support of some British troops training at Suffield, turned back because the equipment had soil on its tracks and tires.

The government takes the matter very seriously and I am pleased to participate, albeit briefly, late this evening.

[Air Traffic Complaints Commissioner, March 29th, 2001]

Mr. Speaker, on behalf of the Minister of Transport and pursuant to Standing Order 32(2) I have the honour to table, in both official languages, the first report of the air travel complaints commissioner, Mr. Bruce Hood.

[Arts And Culture, March 28th, 2001]

Mr. Speaker, I invite all members to join me at the National Press Club after the votes tonight to help celebrate the unique partnership between the Serpent River First Nation and the City of Elliot Lake in my northern Ontario riding of Algoma—Manitoulin.

These partners have come together to create the White Mountain Academy of the Arts, a new fine arts institute dedicated to teaching both aboriginal and mainstream visual arts.

The academy is unique in North America and deserves our full support. It is one of the many creative ideas which have been implemented to diversify the area's economy from the loss of all the mines which happened a number of years ago.

I ask all members to come out tonight to see some of the art, meet the students, community leaders, staff and board members who are working together on an adventure in art which will benefit all of us for years to come.

I want to congratulate all those involved. I ask all members to come out and show their support for this very unique project.

[Infrastructure, March 16th, 2001]

Mr. Speaker, as the member knows, the government has announced a $600 million federal contribution toward the national system.

Discussions have been ongoing. Formal negotiations will continue shortly. Those negotiations will include the potential for private-public partnerships. If toll roads are included appropriately under this program, they could be included as a part of the improvement to the national highway system.

[Transportation, March 15th, 2001]

Mr. Speaker, it is very important that Canada co-operates with all nations to make sure international air travel is safe for everyone. It is important that Canada co-operate on every level.

I am sure the recommendations of the safety board will have a very serious review, notwithstanding the member's comments.

[Supply, March 15th, 2001]

Mr. Speaker, I appreciate the Bloc's motion today and the comments of the Parliamentary Secretary to the Minister for International Trade.

I represent a northern Ontario riding as do you, Mr. Speaker, my colleague from Sault Ste. Marie and numerous other members from northern Ontario. When 99% of the production in softwood lumber is from northern Ontario, it is critical to our fellow northern Ontarians that this issue be resolved and that we have free trade in softwood lumber.

The government's efforts in this area are laudable. It is very important to remind the House and those who are listening that there are victims of the political posturing we are seeing in the U.S. They could be workers and companies in my riding, in your riding, Mr. Speaker, in the riding of the member from the Soo and elsewhere in northern Ontario. Victims whose livelihoods are at stake for no other reason but politics.

Communities, all too often single industry communities, depend upon the forestry sector. They turn the lights off sometimes when the political posturing in the U.S. requires that their industry or factory be closed down or work hours be reduced.

Would the parliamentary secretary comment on how his efforts and the efforts of his minister will help bring some certainty to the livelihoods of the small and big businesses and the workers that maintain our very important softwood lumber sector?

[Canada Shipping Act, 2001, March 14th, 2001]

Mr. Speaker, the member has raised a number of questions, as have others. In committee, I think every effort will be made to respond to them.

For the record I would just like to point out that Canada, as a port state, is permitted to board any foreign vessel regardless of the status and currency of its safety certificate and regardless of its flag.

In fact, in 1999, over 1,000 vessels from 86 different countries were inspected. Where there were deficiencies, whether they were with respect to the safety of the workers on those boats or the marine environment, actions were taken. The bottom line is that this legislation goes further in modernizing environmental and safety provisions and will do a better job for all Canadians when it comes to our offshore and Great Lakes waters.

[Canada Shipping Act, 2001, March 12th, 2001]

Mr. Speaker, I wish to inform the House that I will be splitting my time with the member for Malpeque who will speak on behalf of the Parliamentary Secretary to the Minister of Fisheries and Oceans.

I am pleased to speak to Bill C-14, the Canada Shipping Act, 2001.

Transportation has always played a vital role in our history and it continues to do so today. The means of travel have changed from the days of the canoe, wagon and steam engine. Canoes are still important today but much has changed in terms of modes of transportation.

The facts of Canadian geography and economics remain much the same. We are a country of distances and space, a comparatively small population spread across a vast land mass, relying on trade with other nations for our prosperity. Those are the facts of Canadian life and they are the reasons transportation continues to be so important.

Transportation remains essential to our lives and to our economy. Transport Canada has examined every aspect of our transportation system in recent years to determine what tools the economy needs to thrive. In turn, the government has worked to improve the legislative framework governing air transportation, railways and ports. It is time to bring Canadian shipping into the 21st century.

The Canada Shipping Act is the principal piece of legislation governing personal safety and environmental protection in the marine sector. No one can deny the pressing need to review and overhaul the legislation. I say pressing need because the legislation is sorely outdated and a successful marine industry, essential to our prosperity, needs modern legislation.

We are a maritime nation with three coasts and vast interior waterways. We are a trading nation and we depend on shipping to move much of our trade. Transport Canada data indicates that in 1999 the civil marine industry directly employed approximately 31,000 people and shipped a total of 334 million tonnes of cargo.

The shipping industry moved imports and exports worth $83 billion in 1999. Over 90% of marine tonnage derives from bulk commodities such as coal, ores, petroleum, grain and forest products. International shipments comprise about 84% of total traffic, a number expected to grow in the future.

Despite that impressive record, Canada's shipping industry will find it increasingly difficult to compete internationally unless we implement transportation policies that are based on sound, modern legislation and consistent with those of our trading partners. We can readily see that transportation is vital to Canada, that the marine industry is important to our economy and that the Canada Shipping Act is outdated and needs revision.

What about the proposed legislation before the House? How will it answer the needs I have outlined?

The objectives of Bill C-14 are stated clearly in part 1 of the bill. The objectives are threefold: First, to protect the health, safety and well-being of individuals; second, to protect the marine environment; and third, to encourage viable, effective and economical marine transportation and commerce.

To support those objectives a complete reform of the Canada Shipping Act was undertaken. The reform had three goals: First, to simplify the legislation by replacing outdated terminology with plainer language, harmonizing it with other regimes and taking out excessively prescriptive details.

Second, to make it consistent with federal regulatory policies, reducing reliance on regulations and permitting alternative approaches, such as compliance agreements, performance standards and voluntary industry codes which are much more consistent with today's regulatory practices.

Third, to contribute to the economic performance of the marine industry by reducing prescriptive elements and the administrative burden imposed by the current legislation, and by giving the industry the increased flexibility it needs to maintain safety and to increase business.

The current act is, without exaggeration, antiquated. The act came into law in 1936 and was based on the 1896 British merchant shipping law. Many parts of the existing act are so out of date they would be amusing if the act were not a crucial piece of legislation.

The act is also supported by an extensive regulatory regime composed of at least 90 separate regulations. The sheer size, difficult language and vast coverage of the legislation make it as difficult to enforce as to follow. Canada needs modern legislation that will benefit, not hinder, the marine sector in Canada.

Bill C-14 is the result of several years' work by the Department of Transport in conjunction with the Department of Fisheries and Oceans, Industry and other affected parties and stakeholders. It is not a mere retrofitting of the old act. It has been built, much like a vessel, from the keel up. We call Bill C-14 the Canada Shipping Act, 2001 because it reflects a complete break with the past.

The bill is a crucial step toward ensuring that the Canadian shipping industry has legislation that reflects modern industry practices and keeps up with technological advancements.

A joint effort by Transport Canada and Fisheries and Oceans Canada, Bill C-14 was developed through unprecedented consultations with stakeholders. This consultative process is an excellent example of co-operation between the government and the marine communities to achieve the shared objective of improving our marine system.

On behalf of the government, I take the opportunity to thank the interested parties that brought forward their views on the many issues addressed in the legislation. The Department of Fisheries and Oceans and Transport Canada crossed the country five different times holding discussion groups and listening to the ideas of individuals and industry. In June 1999 a draft bill was shared with the industry.

The two departments listened carefully to stakeholders and, wherever possible, accommodated their concerns. They drew the line only where accepting a proposal would have undermined their ability to protect the marine environment or the health and well-being of those who work in the marine industry.

The legislation before the House is appropriate. It incorporates most of the concerns presented to the government by diverse groups with differing views from across the country. The aim of the bill is to make Canada's marine legislation a tool that benefits all Canadians, to enable industries to be more competitive and to protect the marine environment.

Bill C-14 was drafted to be accessible and comprehensible to all Canadians. In keeping with this goal, the language of the new act is simpler. The legislation is more concise and logically organized. The number of sections has been greatly reduced and, as requested by the marine community, Bill C-14 contains a preamble that states the overall objectives of the act and makes it simpler and easier to understand.

The legislation also clearly delineates the areas of responsibility between the Department of Fisheries and Oceans and Transport Canada. For instance, the Department of Fisheries and Oceans has responsibility for pleasure craft and Transport Canada has responsibility for all non-pleasure craft.

Both industry and Transport Canada require a mechanism to address rapid technological change. Unlike aircraft or locomotives, ships are most often built one at a time. This requires flexibility in how we administer regulations, a flexibility that must be tempered within the bounds set by parliament.

Bill C-14 clearly outlines the powers of a proposed marine technical review panel which would replace the existing board of steamship inspection. The panel would be empowered to grant an exemption only if it were in the public interest and would not jeopardize marine safety or the environment. Any exemption would need to result in an equivalent or greater level of safety before the panel could approve an application or an exemption.

Bill C-14 clarifies the shipmaster's responsibility to ensure the vessel is adequately staffed with properly qualified and trained personnel. Also clarified is the master's authority to maintain good order and discipline on board a vessel. In response to stakeholder concerns, the right of seafarers to place a lien against a vessel for unpaid wages remains in the bill.

Labour provisions in the existing act, the Canada Labour Code and provincial statutes, often overlap. To avoid this, the department's ability to regulate in the area of occupational health and safety is restricted to matters not identified in the labour code.

Part 4 of the bill is primarily concerned with the safe design, construction, inspection and operation of vessels. Detailed provisions in the existing legislation have been moved to other regulations or standards. Antiquated provisions were eliminated.

In consultation with stakeholders, industry supported Transport Canada's retaining responsibility for setting minimum ship safety standards. It was also agreed that the responsibility for safety and compliance should be shared among those working on a vessel and that these responsibilities, particularly those of the master, should be defined in the act.

Bill C-14 allows Canada to fulfil its international obligations respecting various international conventions, such as safety of life at sea and the international safety management code, by allowing the department to implement these instruments via regulation.

The legislation before us focuses on safety and covers all Canadian waters and fishing zones. Provisions related to marine liability have been transferred to the Marine Liability Act, introduced as Bill S-2, which will hopefully soon be before committee.

Commitment to marine safety and protection of the environment has been reinforced by Canada's commitment to port state control. As a port state, Canada is permitted to board foreign vessels to inspect them regardless of the currency of their safety certificates. That means that whoever comes into our ports will be inspected, no matter what flag they fly. More than 25% of all vessels that dock in Canadian ports are inspected, with the focus being on ships with potential safety concerns.

In 1999 Canada inspected 1,076 vessels from 86 registered countries. Of those, about half had deficiencies in such major areas as lifesaving, navigation equipment and safety in general. The greatest number of deficiencies was in the area of fire safety measures. In 1999, 125 vessels were detained until deficiencies were rectified. To ensure the safety of ports and of vessels using Canadian waters, we must maintain vigilance.

One of the main objectives of the proposed legislation is to protect the marine environment. Bill C-14 contains regulation making authority regarding preventing and responding to pollution of the marine environment. Transport Canada and Fisheries and Oceans officials have worked closely with all interested parties to ensure that the legislation's pollution preventing provisions are modern and consistent with other domestic and international standards. The departments have also worked together to ensure that the penalties for non-compliance are competitive and effective.

Transport Canada takes all pollution matters seriously. The proposed legislation enhances the ability to protect the marine environment. Measures to prevent marine pollution and improve maritime safety are addressed by the International Maritime Organization. The measures are implemented in Canada through the Canada Shipping Act.

Most of the department's efforts focus on preventing pollution by setting regulatory requirements for ship based equipment such as oil-water separators, inspection and certification of Canadian vessels, and inspection of foreign vessels calling at Canadian ports.

When ship sourced pollution is detected in the marine environment Transport Canada investigates in close co-operation with Environment Canada and the Canadian Coast Guard. When sufficient evidence is collected charges are laid using regulations under the Canada Shipping Act or other Canadian statutes depending on the source of the pollution incident.

The proposed legislation provides appropriate deterrents and an effective enforcement scheme which includes penalties for minor and serious offences relating to the environment. For major pollution offences the penalty provisions contained in the proposed act are modelled on the current Canadian Environmental Protection Act, 1999.

Reducing greenhouse gas emissions is also a high priority for the Canadian government. Marine transportation contributes only about 3% of all transportation related emissions. That makes marine transportation an important part of a sustainable transportation system. We as members of parliament must encourage its use wherever possible.

At the same time even those emissions can be further reduced. Transport Canada will continue to have authority to regulate emissions from large vessels and will continue to make that a priority.

There is also a need to protect the marine environment from harmful aquatic organisms and pathogens that enter our waters in ship ballast water. Transport Canada continues to lead national and regional working groups on ballast water. A commitment has been made to have Canadian regulations on ballast water in place by 2002. Having a Great Lakes riding, I can appreciate the importance of regulating ballast water that comes from our oceans through ships.

I now turn to an aspect of the economic regulations of shipping and navigation, namely the Shipping Conferences Exemption Act. For the purposes of this discussion I will say SCEA from here on in. Amendments to SCEA are found in part 15 of Bill C-14.

Part 15 addresses an important aspect of transportation supporting the Canadian economy: the movement by ship of Canada's overseas containerized trade, as well as some general cargo. This is specifically known in the industry as the liner trade. International shipping lines offer regularly scheduled liner services between ports around the globe. A shipping line has the choice to join a shipping conference or to remain as an independent operator.

A shipping conference is a group of ocean shipping lines acting collectively to set rates and offer services on specific trade routes. Shipping conferences are recognized throughout the world and they contribute to reliable service and stable rates.

Many of Canada's trading partners, such as the United States, Europe, Australia and Japan, accommodate conferences through special legislation. Recently they have reviewed their conference legislation and concluded that, while it should be retained, more competitive provisions can be accommodated.

The Shipping Conferences Exemption Act exempts shipping conferences from certain provisions of the Competition Act and sets the rules for their operations. Amendments to SCEA are now required to keep Canada's shipping conferences legislation and rules in balance with Canada's major trading partners. The amendments encourage a more competitive climate within conferences and also streamlines the administration of the act.

Canada enacted its first Shipping Conferences Exemption Act in 1971. SCEA was updated and replaced on two occasions, in 1979 and again in 1987. Both revisions added new competitive provisions in the act. SCEA was last reviewed by the National Transportation Act Review Commission and the Standing Committee on Transport during the years 1992 and 1993. It was concluded that, while conferences run counter to the general government policy of encouraging competition, the act should be retained on grounds that the economic uncertainty created by its elimination would not be in Canada's best interests.

While liner shipping represents only 15% of Canada's international marine tonnage, this figure does not adequately reflect the importance of liner shipping to Canada as lower value bulk commodities, like grain and coal, dominate the tonnage statistics.

In general, commodities in the liner trades consist of higher value products, such as electronic and telecommunications equipment and automobile components.

The container business is also a major contributor to the prosperity of ports, such as Vancouver, Montreal and Halifax, Canada's three main container ports. It is therefore in Canada's interest to continue to attract the shipping lines while at the same time encouraging affordable ocean transportation and an adequate and reliable level of service for Canadian industries.

It should be understood that even though a shipping conference may be entitled to an exemption under SCEA, the act does not suspend the application of the Competition Act for any conference agreement if any party to the agreement conspires, agrees or arranges to engage in predatory pricing or other anti-competitive behaviour.

While anxious to protect the interests of Canadian industry, the government must be mindful of the need for a balanced approach to conference legislation. Radical anti-conference measures or a departure from compatible international rules could result in unfavourable repercussions for Canadian industry and Canadian ports.

I mentioned that the amendments to SCEA, as contained in part 15, will encourage a more competitive operating climate within shipping conferences and will provide added flexibility for shippers in dealing with conferences. Shippers will have the ability to more quickly access rates and services offered by individual conference lines. Meanwhile each conference member will be able to negotiate service contracts with shippers without adhering to terms and conditions set by the conference.

The amendments are also designed to streamline the administration of the act. Hence, tariff filing by conferences with the Canadian Transportation Agency will be replaced with public electronic access to conference tariffs and other conference information.

By adopting these changes to SCEA, Canadian legislation pertaining to shipping conferences will remain in balance with our major trading partners. Shippers will benefit from the injection of greater competition into the practices of conferences while conferencing will continue to have a limited exemption from the Competition Act.

In conclusion, the bill will help make Canada's waterways a safer place for both seafarers and the public and will ensure a competitive industry. It is a product of unprecedented consultations with industry and other stakeholders, a process that has helped us to craft legislation that will protect safety and the environment through a graduated series of fair and appropriate penalties retaining always prosecution for serious offences.

Politics is the art of the possible. We have practised that art balancing the needs and concerns of Canadians with different interests and protecting the environment and those who work at sea. The results are an effective piece of legislation that will replace an act long overdue for renewal and give Canadians the modern, efficient framework we need for the 21st century.

I urge the House to support the bill and speedily send it off to committee.