Mr. Speaker, it is always a privilege to address the House, particularly so when important issues such as the safety of Canadians, the protection of our environment and the efficiency of our economic infrastructure are on the table, as they are today.
As my hon. colleagues have recently emphasized, the government is committed to the safety and security of Canadians and Canadian communities and to a safe, dependable and modern transportation system to support the continuing well-being and prosperity of this country.
We cannot claim to have instant solutions for every new challenge that arises. Nobody can. However, as we have demonstrated time and time again, we are always willing to work openly and transparently in consultation with stakeholders and Canadians to ensure that the solutions and initiatives we develop are those this country needs to safely flourish and grow.
I believe the Safer Railways Act, brought forward today, is a fitting testimony to the success of our approach.
When the Minister of Transport, Infrastructure and Communities launched the Railway Safety Act review in 2007, Canada had recently suffered a series of devastating trail derailments that had caused the death of loved ones, the disruption of businesses, and a serious pollution of track-side lakes, rivers and communities.
During the course of extensive inspections and audits undertaken by Transport Canada following these accidents, the regulator identified numerous deficiencies that contributed to decreased safety levels, including non-compliance by the railway companies with various safety requirements.
There was a general concern with the level of the railways' compliance with regulations. Accordingly, the terms of reference for this Railway Safety Act review specifically directed the independent panel to examine the adequacy of Transport Canada's enforcement powers and to consider whether administrative monetary penalties should be added to the range of enforcement powers available to the department.
The minister appointed an independent advisory panel in January of 2007 to lead the review of the Railway Safety Act. This panel was given the clear mandate to uncover gaps in the Railway Safety Act and make recommendations that would make the regulatory regime more robust and adaptable to the railway industry and its operations.
The panel conducted extensive consultations across the country with railway companies, all levels of government, labour, shippers and suppliers. This approach ensured that subsequent recommendations would take into account the appropriate range of perspectives on rail safety issues. Consultations and careful consideration of these issues were carried out during the year-long course of the review and resulted in the advisory panel making a series of recommendations.
It is important to note that our government took immediate action to implement many of these recommendations. At present, Transport Canada has implemented eight internal recommendations, industry has implemented three, and the final 21 recommendations involve the legislative changes that we are discussing today.
Furthermore, an advisory council on railway safety was created, as well as a Transport Canada-industry-union steering committee and six technical working groups. These groups successfully bring together relevant stakeholders to address rail safety issues in a collaborative manner.
I specifically wish to discuss a key recommendation by the advisory panel upon its examination of the Railway Safety Act. The panel uncovered that Transport Canada's enforcement powers under the Railway Safety Act need to be strengthened to encourage better regulatory compliance, increase safety, and help prevent further incidents like those that originally triggered this review.
The independent panel's final recommendation on the issue, as detailed in its report of March 2008, plainly stated that “an administrative monetary penalty scheme should be included in the Railway Safety Act as an additional compliance tool” to enhance safety in the rail industry.
The government fully agrees with the panel's assessment, and the introduction of a scheme for administrative monetary penalties has been included as an important and integral part of this comprehensive package of safety amendments to the Railway Safety Act.
Administrative monetary penalties are certainly not new in the transportation sector. They were successfully introduced in the air industry in 1986 and were subsequently introduced in the marine industry in 1991.
Penalties of this nature have been introduced in the transportation industry because they work. In simplest terms, administrative monetary penalties are similar to traffic tickets for car drivers. When a company or individual breaks a rule or does not comply with a regulation, the department can impose a pre-established administrative monetary penalty or fine to help encourage compliance in the future.
Administrative monetary penalties have other safety benefits as well. With an administrative monetary penalty scheme in place, there is the perception of fairness because the operator knows in advance the cost of non-compliance and it is applied uniformly. Penalties can also be applied more uniformly as there is less discretion for giving warnings and therefore less opportunity for inconsistency.
Under the current Railway Safety Act, Transport Canada's options for enforcing non-compliance are limited. When a violation is found during the course of an inspection or audit, an inspector will normally issue a letter of non-compliance and follow up in a given time frame to verify that corrective action has been taken. If the situation has not been corrected, the regulator has only one option, prosecution, which is both costly and time consuming and therefore ineffective for a large number of violations. This is a significant weakness in the current enforcement scheme of the act.
We believe that administrative monetary penalties should be implemented as an additional enforcement tool under the act to provide an efficient, effective and less costly alternative to prosecution, particularly in the case of persistent non-compliance with safety requirements established under the act. This is consistent with the principles of minimizing the regulatory burden for Canadians while, at the same time, promoting regulatory compliance.
Of course, in interests of fairness for all parties, the proposed administrative penalty scheme would allow for a review of the regulator's penalty decisions by the Transportation Appeal Tribunal of Canada. The scheme would also include provisions related to the minister's decision to impose a penalty, the due process to be followed, the review of decisions by the appeal tribunal and the level of fines to be paid for non-compliance infractions. Maximum levels for administrative monetary penalties would be $50,000 for an individual and $250,000 for a corporation, which is consistent with similar schemes in other modes of transport.
In addition to the implementation of an administrative monetary penalty scheme to improve railway compliance, we propose, through these amendments, to raise existing judicial penalty levels, which were established 20 years ago and are no longer consistent with those in other modes of transport. Maximum judicial fines for convictions on indictment for a contravention of the act would increase from $200,000 to $1 million for corporations and from $10,000 to $50,000 for individuals. Maximum fines on summary conviction for contravention of the act would increase from $100,000 to $500,000 for corporations and from $5,000 to $25,000 for an individual. These levels are consistent with other modes of transport, including air and marine, and the transport of dangerous goods in all modes under federal jurisdiction and reflect our view of what constitutes an effective deterrent to safety violations.
Implementing administrative monetary penalties as proposed in the safer railways act is clearly an important step in the development of an effective railway safety regime with sufficient scope and strength to ensure that our railways are safe and that they remain safe for the long term, as the railway industry continues to evolve and grow.
Administrative monetary penalties are not a stopgap measure. They were recommended by the Railway Safety Act review panel because they are a proven solution for improved compliance and safety requirements in the transport industry. Improved compliance means better safety for all Canadians and Canadian communities and a stronger foundation for our national transport system and economy for years to come.
The time is now to adopt this bill and move forward with further strengthening of the safety of our railway system. This bill has been consulted on and analyzed for several years and has received widespread approval and applause by all key industry stakeholders as well as members of both this House and the other place. I urge my colleagues to recognize that the time for debate has passed and, in the name of the safety and security of Canadians, the timely passage of this legislation is vital.