moved that Bill C-3, An Act to enact the Aviation Industry Indemnity Act, to amend the Aeronautics Act, the Canada Marine Act, the Marine Liability Act and the Canada Shipping Act, 2001 and to make consequential amendments to other Acts, be read the second time and referred to a committee.
Mr. Speaker, I am very pleased to rise to speak to the importance of safeguarding Canada's seas and skies act. This proposed legislation focuses on five key initiatives. The first, amendments to the Canada Shipping Act, 2001; the second, amendments to the Marine Liability Act; the third, amendments to the Canada Marine Act; the fourth, amendments to the Aviation Industry Indemnity Act; and fifth, amendments to the Aeronautics Act.
The question, of course, is why are all these initiatives important. They are important because they support a number of things. They support our Conservative government's commitment to provide long-term economic growth, jobs and prosperity. They support our red tape reduction action plan, which will save businesses time and money, and will make government regulations clearer and more predictable. It also supports our government's plan for responsible resource development to ensure timely and efficient reviews of proposed resource projects, while strengthening world-class environmental standards.
Finally, it supports the economic action plan 2012, which focused on the drivers of growth and job creation: innovation, investment, education, skills and communities.
The economic action plan is giving Canada the ability to meet the challenges of the current global economy, to emerge from this period stronger, and to enable our economy and public finances to remain sustainable for many years to come. Our government is committed to achieving these goals without compromising the health, safety or security of Canadians or our environment. These initiatives help to support our transportation system. They also contribute to Canada's competitiveness and prosperity.
Let me start by discussing the proposed amendments to the Canada Shipping Act, 2001. This is the act that is the principal legislation that governs safety and protection of the environment in marine transportation and in recreational boating. It applies to Canadian vessels in all waters, and it applies to all vessels in Canadian waters.
The objectives of this act include protecting the marine environment, reducing the impact of marine pollution incidents in Canadian waters, and ensuring the safety of the general public. The amendments our government is proposing today would increase marine environmental protection by strengthening provisions pertaining to pollution prevention and response. To accomplish these objectives the amendments aim to strengthen requirements for spill prevention and preparedness at oil handling facilities by requiring that certain facilities submit both prevention and emergency plans to the Minister of Transport.
The current act requires all oil handling facilities to prepare oil pollution prevention and emergency plans to meet the requirements of the regulations, and to have these plans on site. Through on-site inspections, Transport Canada monitors the compliance of these facilities. However, the current legislation needs to be strengthened with regard to facilities notifying the minister of their operations and submitting their pollution prevention and emergency plans, as well as notices of proposed major expansions or conversions of their facilities. These amendments would require these facilities to submit plans to the Minister of Transport and to empower departmental inspectors to direct facility operators to demonstrate their compliance.
Second, the amendments allow use of a fair and effective regulatory tool, which we already have, to deal with contraventions of pollution prevention and spill response by expanding the administrative monetary penalty provisions of the Canada Shipping Act, 2001.
The current regime allows marine safety inspectors to impose monetary penalties on vessels or persons who do not comply with the act. The penalties can range between $250 and $25,000. This use of monetary penalties, however, does not apply to part 8 of the act, and that means it forces the department to prosecute regulatory infractions either through the court or through taking administrative actions, such as suspending the certification of non-compliant response organizations.
Both of these options are complex and potentially expensive. Extending the use of administrative monetary penalties to part 8 of the act allows marine safety inspectors, the people who are on the front lines, to issue penalties in cases where the act is violated. This change would provide us with a flexible enforcement tool that is more effective than the current practice.
Finally, the amendments would ensure Canada has the assistance needed to respond to oil spill incidents by extending civil and criminal immunity protection to the agents of certified Canadian response organizations.
The Canada Shipping Act, 2001 provides civil and criminal liability to certified response organizations responding to a ship-source oil spill or environmental emergency. However, the act does provide such immunity to these organizations if they are responding to spills that take place when a vessel is either loading or unloading at an oil handling facility. Consequently, these responders are reluctant to respond to such an incident.
The proposed amendments to the act would strengthen the oil spill response by extending this to certified response organizations so that if they were to respond to spills from a vessel or an oil handling facility during loading or unloading of oil, they would have immunity. These amendments to liability would also apply to the agents of the response organizations that have been requested by a certified Canadian response organization to assist in the cleanup of a spill.
Spill responders, including our international partners, tell us that they are reluctant to help in such emergencies without this sort of immunity. Given that the immediate response is crucial to minimize the impact of these such incidents, if we provide better assurance of immunity for these agents, the amendments would enhance Canada's access to international resources for spill response.
Canada and the United States have a long history of helping each other in times of distress, including responding together to oil spills and other environmental incidents involving our waterways. Although Canada does not rely solely upon the assistance of our American neighbours in such matters, we have been fortunate to have it. We expect that these amendments would ensure it for the future. It is worth noting that these proposed amendments would not change the partnership but it would build upon it. By introducing these proposed amendments to the Canada Shipping Act, 2001, our government is reiterating its commitment to ensure marine safety, to protect our marine environment, and to support the crucial role of shipping to Canada's trade and economy.
Last March, our government announced important measures, including the creation of tanker safety expert panel, to review Canada's current tanker safety system. The proposed amendments would complement the work of this expert panel. In addition, our government announced increased scientific research on non-conventional petroleum products and ensured a system of aids to navigation. The system of navigation is composed of buoys, lights and other devices to warn of obstructions as well as to mark the location of preferred shipping routes. Last, our government has also increased the number of inspections of all foreign tankers and increased funding for the national aerial surveillance program to keep a watchful eye on tankers moving through Canadian waters.
As part of our plan for responsible resource development, these measures would ensure that Canada has a world-class marine safety system that would prevent incidents, protect our environment and ensure the safety of Canadians. In this way, in the event of an environmental emergency, we would be ready to respond quickly and efficiently, and ensure that polluters would be responsible for paying cleanup costs.
The tanker safety review panel was mandated to consult with key stakeholders to enhance the government's knowledge of the current oil transportation system, point out gaps that we have to address, and manage impacts on the marine environment. As well, the tanker safety review panel launches an ongoing effort to ensure we lead the world in marine environment safety.
Let me now turn my attention to the very important amendments to the Marine Liability Act.
Protecting our waterways from pollution is a priority of our government and we take it very seriously. The potential for a chemical spill in Canadian waters requires appropriate mechanisms to responsibly address the potential consequences of such an event. Therefore, we will continue to take action to ensure Canada has the most stringent tanker safety regime in the world.
Given the importance of trade to Canada's continuing prosperity, we must recognize that this involves the transportation of hazardous and noxious substances. Indeed, almost 400 million metric tonnes of cargo carried by ships in Canada annually, which is really only 3.5%, would be considered hazardous or noxious substances.
These substances consist of a very broad range of marine cargo, such as chemicals, liquefied natural gas, propane or other materials. Now while it is only a small percentage, 3.5%, this wide variety of substances can cause an array of environmental damage should there be an accident or incident. Therefore, the Marine Liability Act, being the principal legislation we have to address this matter, deals with the liability of ship owners and operators in relation to passengers, cargo, pollution and property damage.
In building on our current robust system, the amendments that our government is proposing to the act will introduce a comprehensive liability and compensation regime that really is in step with our other international conventions that we have already ratified. This recognizes both the importance of uniform standards in the global transport of hazardous substances and the importance of such standards to Canada's trade and to its economic prosperity.
The amendments would accomplish two main objectives.
First, they would enhance our pollution liability and compensation regime, which would enable Canada to ratify an international convention that would significantly increase the amount of compensation available for pollution and other damages caused by hazardous and noxious substances from ships.
Second, the amendments would implement the provisions of the 2010 Hazardous and Noxious Substances Convention in Canadian law.
The amendments would accomplish these objectives in four ways: first, implement this convention in order to establish the liability of ship owners in the event of spills and their requirement to have insurance to cover this liability; second, set a legal framework for those affected by these incidents to access the international compensation fund; third, create a regulatory-making power to adopt regulations that would require reporting receipts of bulk hazardous and noxious substances in Canadian ports; fourth, reporting required by the convention to ensure levies would be paid to the international compensation fund, update an enforcement regime so ship owners must maintain proof of insurance through certificates issued by Transport Canada and the receivers of hazardous and noxious substances report receipt of such shipments.
To put these amendments to the Marine Liability Act in context, it is worth noting a few points.
First, the amendments provide comprehensive coverage for more than 6,500 hazardous substances being transported in Canada by ship and would ensure that the list of substances covered by the amendments would be continuously kept up to date.
Second, the amendments would establish a liability in the compensation regime for claimants that would be in step with other international conventions that Canada has ratified.
Finally, the amendments are in line with Canada's long-standing policy to seek multilateral solutions to issues of marine liability and compensation.
It is also worth noting that Transport Canada has worked in partnership with various stakeholders and industry associations on this matter. In our consultations with this broad range of stakeholders and associations, we have found strong support for Canada's ratification of the 2010 hazardous and noxious protocol and its implementation through these amendments to the Marine Liability Act.
To give an example, ship owners accept the liability these international conventions provide and cargo owners accept that they must do their part in contributing to international funds. Both parties want to ensure that victims are compensated in the event of an accident or incident.
I will turn from our seas to our skies now and discuss the Aviation Industry Indemnity Act.
As in the case of many sectors, the Canadian air industry requires insurance coverage to operate. In addition to general risks, this coverage must address risks for acts of war, terrorism, or civil unrest. Indeed, the attacks of September 11, 2011, caused instability in the insurance market, specifically for war risks to third parties; in other words, people and property on the ground which could be affected by aviation incidents.
In response, the Government of Canada developed a program to indemnify aviation businesses against liability they may face from third parties, such as property owners on the ground who experienced loss caused by extreme events such as war. This coverage is known as the “aviation war risk liability program”, and it has addressed the matter. However, without permanent authority to enable federal support related to war-risk insurance, it must be renewed repeatedly.
Therefore, our government is now proposing new legislation, the aviation industry indemnity act, that would repeal aviation-related provisions of the Marine and Aviation War Risks Act and give the Minister of Transport permanent authority to provide indemnities in emergency situations and allow air-industry operators to get coverage in the case of continuing market instability. In short, it would allow the same kind of coverage, but would eliminate the need to regularly renew it. As well, to ensure transparency, the minister would report to Parliament within 90 days of an indemnity being authorized and every two years if there was no change.
In discussions with Transport Canada, air industry participants have expressed strong support for continuing this kind of coverage.
Finally, the safeguarding Canada's seas and skies act also includes proposed amendments to the Aeronautics Act concerning civilian involvement in military aviation accident investigations. As members know, every day the Canadian Forces successfully carry out numerous aviation activities from routine airlifts to search and rescue missions. However, sometimes these activities do not always go as planned, which is why the Canadian Forces have a Canadian Forces flight safety program. Therefore, if something goes wrong, military flight safety investigators look for the causes, interview witnesses and make recommendations to improve safety.
Over the past two decades, the nature of military aviation really has evolved. Today, the number of civilian contractors providing support to Canadian Forces aviation activities has increased significantly. Many tasks related to military aviation, including tasks with safety implications like flight training, strategic airlift, target towing and equipment maintenance, are carried out to one degree or another by civilian contractors. The civilian contractors actually possess a wealth of information and their evidence may very well be essential to a military flight safety investigation, yet while civilian contractors co-operate with such investigations in the vast majority of cases, there really is no effective legal tool to require them to do so. That is why the bill we are discussing is so important.
It would give our military flight safety investigators the tools they need to fully investigate flight safety occurrences involving civilians by giving them the power to search premises, seize documents and take statements. These tools are parallel to those available to the investigators working for the Transportation Safety Board which investigates aviation occurrences not related to military aviation safety. The changes would also permit access to on-board flight recordings by a board of inquiry convened under the National Defence Act. This access would only arise in the appropriate circumstances and for military administrative purposes only. Most important, these tools would ensure that civilians would contribute their expertise to military aviation safety. As a result, we would continue to develop effective aviation safety measures for all the Canadian Forces and all Canadians.
To conclude, as I noted at the start of my remarks, our Conservative government is committed to supporting the prosperity of Canadians by streamlining our regulatory agenda, but in ways that also ensure the safety of Canadians and our partners around the globe. While the legislative initiatives I have outlined today may appear to be mostly administrative in nature, they would go a long way to helping accomplish even broader goals. They address infrastructure matters that would affect Canada's trading relationship. They would fine-tune domestic regulations to reduce regulatory burden on various stakeholders. They would also create a more efficient inspection regime for marine vessels and improve safety and investigation procedures for our airline industry.
Our government remains focused on jobs, growth and long-term prosperity. These amendments highlight our commitment to maintaining Canada as a safe, strong and competitive player in the world economy and the global community.
