Mr. Speaker, I am certainly very pleased to rise today to bring to the attention of my hon. colleagues the short but very important Bill S-23 which was considered and passed by the Senate earlier in March.
My hon. colleagues will recall that parliament recently dealt with legislation pertaining to marine liability in the form of Bill S-4. With the introduction of Bill S-23, we are proposing to move in the area of air carrier liability.
Bill S-23 amends the Carriage by Air Act so that Canada can join other states in legally recognizing two major international instruments dealing with matters relating to air carrier liability such as Montreal Protocol No. 4 which relates to cargo and the Guadalajara convention which clarifies the coverage of the Warsaw convention.
These two documents update and modernize elements of the Warsaw convention, which sets out the legal rights and responsibilities of the carrier, passengers and shippers in relation to international air transportation. They will be annexed to the legislation as schedules IV and V.
The Carriage by Air Act was first enacted in 1947 to give the federal government the authority to have Canada accede to the Warsaw convention, which had been signed in 1929.
The act was amended in 1963 to authorize the federal government to implement The Hague protocol, which amended and updated the Warsaw convention to take into account the evolution in the requirements of airline carriage in the 25 years following its signature.
What we are seeking with this bill is essentially the same as in 1963: additions to the Carriage by Air Act which will enhance and clarify air carrier liability coverage and simplify documentary requirements.
The unification of law relating to the international carriage by air, in particular the unification of law relating to liability, has been of vital importance for the harmonious management of international air transport. Without such unification, complex conflicts of laws would arise and the settlement of claims would be unpredictable, very costly, time consuming, and possibly uninsurable. Furthermore, conflicts of jurisdiction could arise which would further aggravate the settlement of liability claims.
This uniformity remains a significant contributor to the facilitation of international air transportation in that the conditions for the carriage of passengers, baggage and cargo are to a large degree similar on international flights.
In this regard the Warsaw convention has been hailed and recognized as the one international private law conventions that has managed to unify the legal systems of some 140 states party to it.
However, on the international scene it has long been recognized that the 1929 Warsaw convention requires change to modernize it so as to provide a wider mandated protection for passengers, for carriers and for shippers. Montreal Protocol No. 4 and the Guadalajara convention were developed to do just that.
Montreal Protocol No. 4 amends the liability regime as it applies to cargo by providing stricter carrier liability and establishing unbreakable limits. It also simplifies the cargo documentation requirements and authorizes the electronic transmission of information. This transmission of cargo information, using means other than the traditional multicopy air waybill, can provide significant cost savings to carriers and to shippers.
It has become extremely important that Canada act quickly to accede to this protocol as it came into effect in June 1998 when the minimum number of 30 states had ratified it. More specifically, the protocol was ratified by the United States in late 1998 and came into effect in that country on March 4 of this year.
This means that until Canada has been able to deposit its own ratification documents and the protocol has come into effect in Canada, our carriers and our shippers will be at a competitive disadvantage vis-à-vis their U.S. counterparts.
The Guadalajara convention clarifies the relationship between passengers and shippers on the one hand and carriers on the other. The convention extends the rules of the Warsaw liability regime to the carrier actually performing the carriage when it is not the same as the carrier with which the passenger or shipper has contracted.
This sharing of the liability between contracting and operating carrier, when they are not the same, has become increasingly important as international carriers, such as both Air Canada and Canadian Airlines, joined together in global commercial alliances.
Extensive consultations were conducted by Transport Canada. It was determined that both Montreal Protocol No. 4 and the Guadalajara convention have the unanimous support of the Canadian aviation industry as well as all the aviation related organizations in Canada.
Notably, the airlines are very anxious for Canada to act quickly, particularly now that Montreal Protocol No. 4 is in force and applies in many countries.
In addition to industry consultations, 23 federal departments and agencies were consulted, including justice, finance, foreign affairs, national defence and the Canadian Transportation Agency. All departments expressed support for or raised absolutely no concerns regarding the adoption by Canada of these two very important instruments.
It is imperative, hon. members, that we ensure that Canadian carriers, travellers and shippers have the benefit of an international legal regime that better reflects the realities of today's aviation industry.
I believe we should move quickly to adopt this short but extremely important bill. To delay would be to increase the length of time our carriers will be at a competitive disadvantage.