Madam Speaker, I am pleased to rise today to speak to Bill S-4, which amends the Canada Shipping Act as it pertains to maritime liability. It has taken a long time, too long in fact, for the bill to get to this stage, but because it is here now I am very pleased to speak to it.
I come from Saint John, New Brunswick, where we have the largest tankers in the world coming into our harbour because we have the largest privately owned oil refinery in Canada. I have had the pleasure of being taken out in a helicopter to fly over the largest tankers in the world. It is something to see.
Also in Saint John, New Brunswick, we have something that is unique in Canada and not anywhere else in Canada. It is a swivel anchor because we have the highest tides in the world. Mr. K. C. Irving devised this swivel anchor. When the largest tankers in the world come in, they hook on to this anchor out in the bay. As the tides rise we can see the tankers swing around and swing back again. It is very unusual.
I want my colleagues to know that Saint John, New Brunswick, is a very unique place. I invite all my colleagues to visit Saint John. When they come we will take them to the refinery so they can see what I am referring to.
The bill began as Bill C-58 in 1996. It went through a committee process and died on the order paper with the election call in April 1997.
There are important changes contained in the legislation. It is certainly a shame that the government did not recognize the importance of it at that time but instead chose other priorities over this one.
However, having said that, we are here now and we are dealing with the bill. I am pleased to be here to speak to it. The bill will substantially increase the amount of compensation available to Canadian claimants for maritime claims in general and for oil pollution damage in particular.
It also harmonizes Canadian rules for maritime liability with those of other maritime nations and will enable Canada to accede to relevant international conventions. This point is important. We must bring our rules into harmony with those of our major trading partners that carry both import and export cargoes each day to and from Canadian shores.
With respect to the part of the bill dealing with limitation of liability for maritime claims, Bill S-4 amends part IX of the Canada Shipping Act to implement the provisions of the 1976 convention on limitation of liability for maritime claims and its 1996 protocol.
Bill S-4 therefore will—and I am sure all my colleagues in the NDP would want to hear this—first, substantially increase ship owners limits of liability; second, allow cabinet on the recommendation of the transport minister to implement new limits of liability to reflect inflation; and, third, limit the liability of owners of small ships of less than 300 tonnes to $1 million for loss of life or personal injury and $500,000 for other claims.
It will also extend the application of the liability regime to all ships operating in Canada's inland waters, not just sea going vessels. Finally, it increases liability limits for owners of docks, canals and ports for property damage claims to the greater of $2 million or an amount based on the tonnage of the largest ship that has docked in the area in the last five years.
Another important aspect of the bill relates to oil pollution liability and compensation. Bill S-4 will amend part XVI of the Canada Shipping Act to implement the provisions of the 1992 protocol to the 1969 civil liability convention and the 1971 convention on the establishment of an international fund for compensation of oil pollution damage.
This will make ship owners liable for clean-up costs for oil pollution damage, and that is long overdue. It will make compensation available for pollution damage caused by tankers with residues of oil remaining from their previous cargo. It will also make it possible to recover costs incurred for preventive measures in anticipation of a spill from a tanker.
The maximum compensation currently available to claimants in an oil pollution incident is approximately $120 million. As a result of the bill, the amount will be more than double that to $270 million. That is important and is long overdue.
In summary, we are pleased to support the legislation. As I have stated, it is long overdue and very much needed in the maritime industry in Canada. We are supporting it because it will improve the compensation for the benefit of all Canadian claimants involved in any maritime accidents in general and certainly for purposes related to pollution claims.
Also the important harmonization of our laws with other nations in the world benefits every participant. Here I am speaking about all participants involved in maritime trade, shipowners, cargo owners and charters, by providing consistent, internationally recognized and accepted rules which deal with the economic consequences of unfortunate accidents at sea.
Without these formal rules, international shipping on which Canada relies to a tremendous degree would otherwise become extremely expensive and unpredictable. As a result, it would have negative consequences for the Canadian industry on the whole.
We support the legislation and only wish that it could have been moved a little more quickly through the legislative process. I want to thank all of those who were involved in bringing it before the House and the senators who worked so hard to make sure it was here today. It is good legislation and we will support it.
