:
I would like to open this committee of the whole session by making a short statement on this evening's proceedings.
Tonight's debate is being held under Standing Order 81(4)(a), which provides for each of two sets of estimates selected by the to be considered in committee of the whole for up to four hours.
The debate is also held under the provisions of the order made on Tuesday, May 6, 2014. Tonight's debate is a general one on all of the votes related to Transport. Each member will be allocated 15 minutes. The first round will begin with the official opposition, followed by the government and the Liberal Party. After that, we will follow the usual proportional rotation.
As provided in an order made on Tuesday, May 6, 2014, parties may use each 15-minute slot for speeches or for questions and answers by one or more of their members. In the case of speeches, members of the party to which the period is allotted may speak one after the other. The Chair would appreciate it if the first member speaking in each slot would indicate how his or her time will be used, particularly if it is to be shared.
[Translation]
When the time is to be used for questions and answers, the Chair will expect that the minister's response will reflect approximately the time taken by the question, since this time will be counted in the time originally allotted to the parties.
Though members may speak more than once, the Chair will generally try to ensure that all members wishing to speak are heard before inviting members to speak again, while respecting the proportional party rotations for speakers.
Members need not be in their own seats to be recognized.
[English]
Finally, I would remind hon. members that according to the order made May 6, during this evening's debate, no quorum calls, dilatory motions, or requests for unanimous consent shall be received by the Chair.
As your Chair, I am guided by the rules of the committee of the whole and by the order made on Tuesday, May 6, 2014. However, in the interests of a full exchange, I am prepared to exercise discretion and flexibility in the application of these rules.
I also wish to indicate that in committee of the whole, ministers and members should be referred to by their titles or riding names, and of course, all remarks should addressed through the Chair.
I ask for everyone's co-operation in upholding all established standards of decorum, parliamentary language, and behaviour. At the conclusion of tonight's debate, the committee will rise. The estimates related to Transport will be deemed reported, and the House will adjourn immediately until tomorrow.
[Translation]
We may now begin tonight's session. The House, in committee of the whole, pursuant to Standing Order 81(4)(a), the first appointed day, consideration in committee of the whole of all votes related to Transport in the main estimates for the fiscal year ending March 31, 2015.
The floor is open.
:
Mr. Chair, I appreciate the kind wishes of the hon. member at the beginning, and I appreciate the tough questions he posed. They were very good.
I am pleased to appear before the committee of the whole this evening as part of its review of the votes relating to Transport in the 2014–15 main estimates, but as well to take this opportunity to highlight some of the key priorities that our government is addressing.
First, I will move to the estimates.
The authorities that we are seeking for the 2014–15 main estimates will be directed to support several key priorities within my department. We will continue to refine and strengthen safety and security oversight of the transportation system. We will continue to contribute to our government's responsible resource development agenda, and we will improve Canada's competitiveness in critical transportation infrastructure. We will ensure that Transport Canada policies, programs, and activities meet the needs of the transportation system in the long term, and we will adopt our government's efficiency and renewal measures.
I will focus the rest of my opening remarks on our efforts to address a few key areas: tanker safety; investments in transportation infrastructures as part of our gateways and corridors strategy; and, of course, rail safety.
First, I will talk about tanker safety and, specifically, what we are doing to strengthen our tanker safety regime. In the main estimates, members will note that we are requesting additional authorities in the amounts of $15.8 million for world-class oil spill response. This is a 686% increase from the authorities that were sought in last year's main estimates. The tanker safety regime is based on three pillars: first, we prevent spills from happening in the first place; second, we clean them up should they happen; third, we hold polluters accountable and financially responsible for those spills. This regime introduced new measures such as increased inspections of foreign tankers in Canadian waters, expanded air surveillance and monitoring of ships in our waters, and a new incident command system to allow the Canadian Coast Guard to respond more effectively to incidents.
To help achieve a world-class tanker safety system, we struck an independent expert panel led by Captain Gordon Houston, the former CEO of Port Metro Vancouver. The panel submitted its first report in November and it made 45 recommendations on how to strengthen the oil spill preparedness and response regime. We take this advice very seriously. Therefore, we are engaging communities and first nations, the marine industry, and provincial governments on the panel's recommendations. However, the panel's work does continue. It is currently reviewing oil tanker safety measures in the Arctic, as well as marine transport of hazardous and noxious substances. I do expect to receive its second report and its final report later this year.
Recently when I was in British Columbia, I was able to be on board one of the planes operated by our national aerial surveillance program, or NASP. It was quite an experience because I had the opportunity to appreciate not only the importance of the efforts but also the excitement of the members of the crew in their everyday work, because they are working hard on a world-class tanker safety regime. We are going to double the funding for this aerial surveillance program, and that is going to allow this team to increase the number of hours the planes are in the air, and then they can better monitor our coasts and ultimately deter potential polluters, and catch a spill before it becomes too big.
Economic action plan 2014 recognizes the importance of trade and investment to Canada's economic future, and the role of Canada's transportation infrastructure network in supporting trade in domestic and international markets. Through the main estimates, we are seeking $702 million to support important infrastructure projects through the gateways and corridors funding program. The program supports international trade with the United States and other key partners by ensuring integrated and efficient transportation systems across all modes. We have to work with other levels of government and private-sector stakeholders, and together we are both investing in important infrastructure products at border crossings and bolstering our efforts to coordinate infrastructure planning as part of government's beyond the border initiative. Improvements to cross-border trade will go a long way toward ensuring continued economic growth for Canada.
Finally, I would like to turn my attention to what my top priority is, and that is strengthening rail safety in this country.
This past January, the Transportation Safety Board released three interim recommendations regarding its ongoing investigation into the Lac-Mégantic train derailment. The recommendations addressed three factors: the vulnerabilities of the DOT-111 tank cars used to transport crude oil, the need for emergency response assistance plans, or ERAPs, along routes where large volumes of liquid hydrocarbons are shipped, and the requirement for route planning and analysis for trains carrying dangerous goods.
On April 23, we provided our response and we outlined our actions going forward to directly and decisively address these recommendations. The Government of Canada is committed to continued collaboration with industry, other levels of government, and various stakeholders.
Well before the events at Lac-Mégantic, rail safety issues were already being addressed by our government. In May of last year, amendments to the Railway Safety Act came into force that strengthen the safety requirements for rail companies in Canada.
As well, we have worked for years to maintain safety for pedestrians and vehicles around grade crossings. New safety regulations were recently published, and this year the federal government's grade crossing improvement program is providing more $9 million to improve safety at over 600 railway crossings in this country.
I also feel strongly in this case that Canadians should not be expected to cover the costs of damages. To this end, Transport Canada has consulted stakeholders on how to strengthen the existing liability and compensation regime for rail. This way, in the event of an accident, sufficient resources would be available to adequately compensate victims, pay for cleanup costs, and protect taxpayer funds. This complements recent consultations by the Canadian Transportation Agency into the insurance coverage it requires of federally regulated railway companies when they issue certificates of fitness to the companies.
When it comes to addressing the recommendations from the Transportation Safety Board, I want to stress that we are committed to improving railway safety and the transportation of dangerous goods by rail.
Following the accident in Lac-Mégantic, the federal government took immediate action. The measures I announced in April build upon this work and further strengthen our country's regulation and oversight of rail safety in the transportation of dangerous goods. I will just remind the House of these measures.
We first acted to remove the least crash-resistant DOT-111 tank cars from dangerous goods service in general by directing the phase-out of tank cars that have no continuous reinforcement of their bottom shell. There are about 5,000 of these cars in North America.
We are also improving the tank cars that are used to transport crude oil or ethanol to significantly reduce the risk of these substances escaping if the cars are involved in an accident. In January of this year, Transport Canada published a revised mandatory standard for consultation, requiring thicker steel, head shields, and top-fitting protection. All DOT-111 tank cars that do not meet this January 2014 standard must be phased out or refitted within three years if they are to be used for the transportation of crude oil or ethanol.
We will also implement even more stringent tank car requirements in the future, based upon industry recommendations and technical discussions that are ongoing with the United States. In fact, Canada is already committed to meeting or exceeding all U.S. requirements for DOT-111 tank cars.
The second Transportation Safety Board recommendation that we are addressing is in relation to emergency response assistance plans. These are formal plans that describe what industry will do to support first responders in the event of an accident involving dangerous goods that require special expertise and response equipment.
To ensure we are prepared in the event of a rail accident, the federal government will require rail shippers to develop emergency response plans for higher-risk flammable liquids. In the event of an accident involving significant quantities of these dangerous goods, approved response plans will give first responders access in a timely manner to the resources and the assistance that they need. To accomplish this, we have issued a direction to require shippers to develop emergency response assistance plans for crude oil, gasoline, diesel, aviation fuel, and ethanol when even a single tank car is loaded with one of these designated flammable liquids.
We will also establish a task force with key partners and stakeholders such as the Canadian Association of Fire Chiefs and the Aboriginal Firefighters' Association as well as key response, shipping, and railway representatives. This task force will provide a dedicated and collaborative forum to enhance coordination of response capability. We will also consider expanding response plan requirements for other class 3 flammable liquids after reviewing the matter with this task force.
Finally, Canada already has a strong regulatory regime for trains travelling in both rural and urban areas. Transport Canada has now introduced even stricter requirements for trains transporting dangerous goods in order to safeguard communities along our railway lines.
We issued an emergency directive requiring railway companies to immediately slow trains that transport dangerous goods and implement other key operating practices that respond to the TSB's recommendations. The emergency directive adapts the recently announced U.S. voluntary requirements to the Canadian rail network, requiring companies to make key operational changes quickly.
We will make these requirements permanent by issuing a ministerial order that requires railway companies transporting dangerous goods to develop new rules on these operating practices. It is a major undertaking that requires careful planning in order to deliver rapid and concrete results.
In conclusion, the initiatives I have outlined today demonstrate clearly how our government is working to maintain transportation in Canada that is safe, secure, efficient, and environmentally responsible, and we take this responsibility seriously.
:
Mr. Chair, I apologize for my enthusiasm. I just could not wait to get started on this wonderful speech that I have for the House. It gives me a chance to offer congratulations on the minister's birthday a second time, so that is a good thing.
As I started out to say, I want to talk about Canada Post but I want to acknowledge at the outset that it is an arm's-length crown corporation.
First, let me deal with the financial situation at Canada Post. It is undeniable that the business of delivering mail has evolved at a remarkable rate, especially with the incredible popularity of electronic mail, but whether we talk about individuals, business, or governments, everybody has to live within their means. This is as true of me and my family as it is of the government or of Canada Post. Canadian families know they cannot continually spend more than they earn. Business and governments are no different. Canada Post will not receive government subsidies to operate in an unprofitable fashion. It must adapt, as we all have to.
That said, the throne speech highlighted our government's unwavering commitment to control spending while investing in Canadians' priorities to safeguard our economy. Year after year in budget after budget, we have put in place credible plans to achieve financial sustainability and set clear targets to bring our deficit down.
This was crucial as we dealt with the damaging effects of a worldwide recession, one of the worst in more than seven decades. We had to get our fiscal house in order to keep Canadians working and our economy growing. The proof of this commitment is in the results. I remind the House that one of minister Flaherty's greatest legacies will be a balanced budget in 2015.
More than just managing debt, our government is tackling spending. We are reducing the size and the cost of government to ensure taxpayers get good value for money. We are working hard to make government more efficient and responsive to the needs of Canadians. This is because of our overreaching goal to create the conditions for jobs, economic growth, and long-term prosperity for all Canadians.
We are the envy of the world. Three credit rating agencies, Moody's, Fitch, and Standard & Poor's, have reaffirmed their top ratings for Canada. Both the International Monetary Fund and the OECD expect Canada to be among the strongest growing economies in the G7 this year and next.
Reducing spending, lowering taxes, and paying down debt are enabling us to seize new economic opportunities as we promote free trade and innovation, the keys to job creation, economic growth, and prosperity. I lay out these facts to underline that these same truths apply just as much to Canada Post as it faces unprecedented challenges.
One need not be a learned scholar to judge the trends in the fiscal forecast of Canada Post to see where the trend leads. A 2013 report prepared by The Conference Board of Canada into the corporation's future projects that unless major changes are made, annual operating deficits will reach nearly $1 billion by 2020, that is $1 billion per year. That is certainly a deficit that requires significant and immediate attention.
While many Canadians will admit they use mail less and less, some are quick to point out the popularity of parcel delivery. Could this not be a promising area of business growth, they ask? Absolutely it can. The parcel market is increasing as more and more Canadians are making online purchases. E-commerce helped parcel volumes grow by about two million pieces in the first nine months of 2013 compared to the year earlier. Canada Post parcel revenue was up 11.2%, which amounts to $32 million from the third quarter of 2012. However, I believe the minister could confirm that parcel revenues are simply not enough to compensate for mail volume declines.
Consider that in 2012, total transaction mail revenue amounted to $3 billion or 51% of the corporation's operating revenues. Parcels on the other hand accounted for less than $1.3 billion or 22% of operating revenues. Even though parcel volume is projected to increase by 26% by 2020, it will not be enough to get Canada Post out of the red.
Quite simply, the corporation's current business model no longer allows it to earn sufficient revenues to offset its cost. Without changes, the future viability of the postal service is in question.
As the minister has highlighted in this place many times before, the challenges of Canada Post have arisen in part because of the global recession. The pace of postal decline has been accelerating in Canada and other developed countries for a number of years. However, it has accelerated after the global recession began in 2008.
Companies cut their mailing costs as part of overall cost reductions. Many opted to ship more billing statements and marketing online. At the same time, individual consumers began moving en masse from traditional to digital communications. Canadians are now more likely to send a text message or an email than to take the time to write a letter, post it and wait several days to be delivered.
As the minister has noted many times, mail volumes per address have dropped by nearly 25% between 2008 and 2012. In fact, more than one billion fewer pieces of letter mail were sent last year than in 2006.
The U.S. Postal Service has reduced service hours and the number of employees to address financial pressures, for instance, while the U.K. has privatized and significantly increased stamp prices. Not to mention, neither of these countries presents the same unique challenges that our northern communities presents.
The digital economy is not going away. Canada Post has no option but to find new ways of doing business to keep its operation sustainable. Canada Post must manage its business prudently. It has no choice. It has a mandate to operate on a self-sustaining financial basis. Financial responsibility is a legislated obligation.
The services currently provided by Canada Post are clearly no longer affordable. The corporation needs to spend within its means in the same way that individuals do as they manage their family budgets. More than that, change is essential if Canada Post is to keep pace with the choices Canadians are already making about the way they prefer to communicate.
Since delivery accounts for about 40% of Canada Post's operation costs, it is the most obvious place to start.
Door-to-door delivery is by far the most expensive mode of delivery. It costs between two and three times what it costs to deliver to a community mailbox. Compare $283 annually for home delivery versus $108 for community mailboxes. They are also cheaper than delivering to a rural mailbox, which rings in at $179 per year.
To be clear, we are talking about changes affecting only home delivery. Businesses with large volumes of mail or located in business zones will generally retain their door-to-door delivery. However, the remaining one-third of Canadians still will have door-to-door service. The minority of people in our country, I would add and I am one of them, will gradually shift over the next five years to community mailboxes instead. Community mailboxes provide secure mail storage in a convenient place close to home to receive parcels and packages.
Remember that Canada Post introduced community mailboxes back in 1981, so it has been successfully delivering mail and packages this way for a very long time.
The corporation is expected to reduce its workforce by between 6,000 and 8,000 positions by 2019 and this will be achieved largely through attrition, which will help reduce its overhead dramatically. Like most workplaces populated by baby boomers, many will leave the workforce in a few years' time.
In closing, I have a question that I would like to pose for the minister. I hate to present her with such a tough question, but although it is tough, it is fair. I was hoping that the minister would inform the House on the current crisis facing Canada Post and the government's commitment to ensuring that it does not become a burden on taxpayers, because the taxpayers are up to here with unnecessary costs. Please explain what we can expect the post office to do to rein in these costs?
:
Mr. Chair, I thank the hon. member for his insight into a topic that we certainly must understand better.
In 1981, Canada Post was set up as a crown corporation. In its documents, it was done so to ensure that postal services, financial security and independence continued. That is exactly what we are trying to do today by accepting Canada Post's five-point plan for moving into the future.
The reality is twofold. First, Canada Post has to actually deliver to more mailboxes or to more addresses than before. It is increased by 1.2 million. Second, Canada Post, as well, is delivering fewer letters. In fact, most Canadian families only buy two stamps a month. That is significant.
It is clear that the five-point plan is something Canada Post has researched, has consulted on, has studied and has indicated is its best path forward for achieving financial self-sustainability along with the continued service provision that it needs to do.
I appreciated the words of my hon. friend when he talked about the costs associated with community mailboxes. In terms of trying to ensure that we have a delivery system that is efficient and cost-effective, it is important to note that the door-to-door service to one-third of Canadian households is $298 on an average annual cost per address. However, delivering to a community mailbox is $113 on an annual cost per address basis.
That is a significant savings. It is one of those kinds of savings that Canada Post has looked at to ensure Canadians will continue to receive mail on a daily basis, which is what it said it wanted to do. At the same time, what it also said was it wanted to ensure it was not relying upon taxpayer dollars. That is what Canada Post is attempting to achieve.
:
Mr. Chair, I would certainly like to wish the minister the best of greetings on a special day and thank her for being here tonight.
In December last year, Canada Post Corporation released a comprehensive five-point action plan entitled “Ready for the Future”. It was designed to realign how it delivers and prices postal services to meet Canadians' emerging and future needs while substantially reducing costs to the taxpayer.
This is a watershed moment for Canada's national postal service. Letter mail volumes have been declining since 2006, when Canada Post delivered 1.2 billion more letters than it did in 2013. That is a big number. The corporation estimates that for every 1% drop in mail volume, it loses $30 million in revenue. This is placing a huge strain on Canada Post's finances, as witnessed by losses of $129 million, before tax, in the postal segment alone in the third quarter of fiscal year 2013. It is quite clear that the services, as currently provided by Canada Post, are no longer sustainable.
Canada Post must now manage its business as a viable commercial enterprise that competes effectively in every product line. Even its traditional direct marketing business is facing digital rivals that use mobile and smart technologies, and the parcel business operates in a highly competitive environment.
The corporation is well aware that to build on recent successes, it must attract customers in an increasingly complex economic environment. The parcel business, unlike letter mail, is highly competitive, and parcel volumes have been rising worldwide. Postal services in many countries have been aggressively using their extensive sorting and delivery infrastructure to expand in this sector. Globalization has more parcels coming into Canada to be processed to the same high standards, and the highly competitive parcel delivery market means that service providers must modify operations in order to win and retain customers with the quality and reliability of their service. In the business of the customer parcel delivery market, that means providing fast, reliable, and convenient delivery, excellent tracking options, and reasonable prices.
The growth in the parcel industry has also intensified local and global competition. FedEx and UPS, for example, have increased their competitive positions in Canada. Customer patterns have also shifted from premium to less urgent products that cost less. The increased competitive landscape has put increased pressure on Canada Post to manage costs, improve product offerings, and provide a superior customer experience.
With approximately 40% of parcel deliveries to Canada originating internationally, Canada Post has negotiated bilateral agreements, notably with the United States and China, to increase its share of this inbound traffic. The corporation has also made extensive investments in new facilities, including a 700,000 square foot plant at Vancouver International Airport. It has increased real-time tracking through portable scanners for employees and has added to its capacity for motorized delivery to handle growing package volumes.
Canada Post also offered on-demand parcel pickup for small businesses in 2011 and 2012. It provided enhanced web services for online retailers, including seamless management of returns.
I wish to emphasize that the government is committed to ensuring transparency in how Canada Post provides quality postal service to all Canadians, rural and urban, individuals and businesses, in a secure and financially self-sustaining manner. That is why the government established the Canadian postal service charter in 2009, which set out its expectations regarding Canada Post service standards and related activities in providing postal services that meet the needs of Canadians.
An important aspect of the postal service charter is its commitment to universal service that ensures that Canadians in both urban and rural areas can send and receive letter mail and parcels within Canada and between Canada and elsewhere. As part of Canada Post's continued commitment to parcel delivery, parcel services to Canadians living in rural and northern communities not currently serviced by competing parcel delivery companies will have significantly wider access to, and the ability to return products from, Canada and around the world.This is crucial for the many rural and northern communities not currently served by private sector courier companies.
Canada Post's five-point action plan embraces the principle of reform without seeking any change to the Canadian Postal Service Charter. This plan is about giving Canadians the postal service they need in the emerging digital economy. Canada Post is quite aware of the changing face of the postal industry and has been preparing for a future with less mail and more parcels for a number of years.
The corporation has implemented measures to expand its parcel volume both through its postal operations and through its Purolator courier service. For example, changes to internal operations first begun in 2010 have made for a more efficient flow of parcels through the network to the customer. Canada Post has launched an aggressive plan to invest in replacing its aging processing infrastructure and delivery processes with more modern and cost-effective approaches driven by technology. The sorting equipment in place today is much faster and more accurate. From a delivery perspective, it has meant a massive shift toward motorization.
Canada Post will continue to leverage these investments. Doing so will further reduce the cost of processing the mail and will allow the company to better serve the growing parcel market and provide the services Canadians will need in the future.
In many urban areas, Canada Post has moved away from letter carriers delivering mail by foot to carriers who leave their depot every morning with a fuel-efficient van containing the mail and parcels for delivery on their route. Putting mail and parcels in one truck for delivery provides a better end-customer experience, especially in the parcel business, at a much lower cost to the corporation. These improvements will allow Canada Post to compete more effectively in the fast-paced and technology-driven global parcel market. All kinds of parcels are now flowing through Canada Post sorting plants, including items that depend on fast and accurate delivery, from health care products and gourmet food to live bees and baby chicks.
Canada Post realizes that the parcel business is highly competitive and it does not have the exclusive privilege to deliver parcels, as it does for letters. Therefore, the corporation has focused on providing a superior customer experience, recognizing the attachment Canadians have to their parcels. Canada Post has indicated a desire to expand en-route pickups and launch a comprehensive returns solution that will benefit e-commerce merchants and shoppers by improving inventory management, returns processes, and automatic billing.
An important component of Canada Post's proposed strategy is its intention to build upon its current strength in parcel delivery, which has demonstrated growth over the past few years thanks in large measure to the fast-growing market of online shoppers.
It is clear that Canadians have become enthusiastic online consumers. Statistics Canada reported in October 2012 that the value of orders placed online by Canadians reached $18.9 billion in 2012, up 24% from 2010 when the survey was last conducted. That is 24% in two years. More than half of Internet users, 56%, ordered goods or services online in 2012. Perhaps even more encouraging, most Internet shoppers, 82%, had placed an order from a company in Canada.
Canada Post's parcels line of business currently offers a range of domestic and international delivery services and is the largest player in the Canadian parcel market, with more than 50% market share. The corporation sees an unprecedented opportunity for additional growth linked to e-commerce as online business activity increases. Customers for parcel services include businesses, consumers of all sizes, governments, international postal administrations, and other delivery companies.
According to a recent report by the Conference Board of Canada, residential and small business customers indicated that their demand for parcel service will continue to rise with the spread of e-commerce.
Parcels are the fastest-growing line of service in the core Canada Post business. The corporation reports that overall growth in parcel volumes experienced a record-breaking holiday season, which runs between November 11 and January 4. Canada Post delivered 30 million parcels during this period, which was five million more than the holiday season last year. The corporation delivered more than one million parcels in a day, on 10 different days. Weekend delivery was also very successful. Canada Post employees delivered a total of 1.1 million parcels over the six weekends of the holiday season, with the highest number of deliveries occurring on the December 21–22 weekend. That is 317,000 deliveries.
The main reason behind this growth is that parcels are the one postal product that has seen growth driven by the digital revolution. Canada Post advises that its top-25 retail customers are making major e-commerce gains. January parcel volumes from these retailers shot up 35% compared to January of last year. This dramatic increase follows a highly successful holiday season in which year-over-year parcel volumes from this top-performing group grew by 50%.
It is very obvious that things and times change. They have certainly changed at Canada Post, and it has tried to adapt.
I have a question for the minister. The opposition is refusing to see that Canada Post is facing a new digital reality. Can the minister please explain why the status quo was not a possible solution to Canada Post's financial situation?
:
Mr. Chair, let me begin by saying how much I appreciate the opportunity not only to participate in this debate this evening, but how much we all appreciate the opportunity to celebrate the minister's birthday with her this evening.
This evening I would like to speak about Canadian ports, specifically the Port Metro Vancouver, and the benefits the port brings to the Canadian economy.
The 18 port authorities that comprise Canada's port system are central to Canada's economic activity. These port authorities handle a significant amount of Canadian trade, approximately 310 million tons of cargo valued at more than $162 billion annually. On the whole, Canadian port authorities contribute about $24.5 billion to the Canadian gross domestic product and provide almost 269,000 jobs for Canadians.
Port Metro Vancouver is the largest and most diversified port in Canada. It is also the fourth-largest tonnage port in North America. In short, the port is a major economic force that facilitates trade between Canada and more than 160 world economies, and handles 19% of Canada's total trade. The operation of Port Metro Vancouver is complex, and it is key to Canada's overall supply chain. The port's operations involve many different enterprises, including cargo terminals, cruise terminals, shipyards, railways, trucks, and shipping agents. In addition to facilitating trade, one of the most significant economic benefits the port provides is direct and indirect employment, not just for British Columbia but for other provinces as far away as our own home province of Ontario.
A recent study of the economic impact of Port Metro Vancouver showed that its ongoing operations support 38,200 direct jobs in British Columbia. The direct impact of this employment on British Columbia's economy is estimated at $3.5 billion in gross domestic product, $8.5 billion in economic output, and $2.3 billion in wages. The indirect impacts of the port's operations on businesses in British Columbia are even more impressive: 76,800 jobs; $6.7 billion in gross domestic product; $14.5 billion in economic output; and $4.6 billion in wages. These indirect impacts include tourism revenues related to cruise-ship passengers.
The majority of direct employment generated by the operations of Port Metro Vancouver is located within the Lower Mainland area. However, there are also close to 10,100 off-site jobs supported by the economic activity of Port Metro Vancouver. This off-site employment represents about 22% of total direct Port Metro Vancouver businesses' employment and reaches through western Canada and beyond. Outside of British Columbia, the largest direct employment impact is in Alberta, followed by Ontario. This includes supporting 2,700 direct jobs in Alberta and 1,600 direct jobs in Ontario. Members can see the vital role that Port Metro Vancouver plays in securing our country's long-term prosperity.
For those who do not know, Port Metro Vancouver operates across five business sectors: automobiles, breakbulk, bulk, containers, and cruise. Based on data from 2013, Port Metro Vancouver handled 135 million tons of cargo, a record for the port, with an overall increase of 9% over 2012. Import and export tonnage maintained balanced growth, each showing a 9% increase.
The port is leveraging the strong performance with significant capital investment intended to further increase its competitiveness. This investment will further contribute to the port's economic impact on the regional and national economies.
By 2022, Port Metro Vancouver has identified $1.4 billion in capital investment to further increase its performance. This additional economic activity is generated by expenditures associated with Port Metro Vancouver's current capital program and by the capital investments of Port Metro Vancouver's tenants. Together, in pursuing this capital investment plan, Port Metro Vancouver and Port Metro Vancouver tenants will create an estimated total of 2,800 direct person-years annually, with a potential total impact of 6,100 person-years of employment.
As others have noted in this place before, our government has worked to improve supply chain efficiency, reliability, and security so that Canada stays competitive in the continuously evolving world of global commerce. For example, we launched the Asia-Pacific gateway and corridor initiative and, to date, we have invested $1.4 billion in Asia-Pacific gateway projects in partnership with all four western provinces, municipalities, and the private sector. Many of these projects form a critical portion of a supply chain that also includes Port Metro Vancouver.
Furthermore, under the 's leadership, our government is making unprecedented investments in infrastructure, solidifying a pivotal base in much of our transportation network through, of course, our new Building Canada plan. Key transportation assets, including port infrastructure, will be eligible for funding under the $4-billion national infrastructure component of the plan, which is earmarked for projects of national significance.
Given that efficient and reliable operations at Port Metro Vancouver are critical to Canada's Asia-Pacific gateway and the national economy, the Government of Canada recently took action to support the resumption of trucking operations at Port Metro Vancouver. The estimated economic losses to Canada during the recent work stoppage were estimated at $126,000 per day. We found this unacceptable and acted quickly to develop a joint action plan in conjunction with the Province of British Columbia and Port Metro Vancouver to bring stability to the container trucking industry. The plan contains 15 points for implementation and provides a framework for long-term stability in the container trucking industry. All parties are working together to implement the plan with input from key stakeholders.
Our government is committing to removing roadblocks to prosperity, which is why we acted quickly to bring stability to the industry, diminish wait times, and prevent disruptions in the future. For example, the Government of Canada brought in new regulations to increase the rates paid to truckers at Port Metro Vancouver.
As you know, Mr. Chair, our government's focus is to create jobs, growth, and long-term prosperity for all Canadians, but we cannot achieve these goals on our own. Port Metro Vancouver is Canada's largest and most diversified port, remains critical to our national transportation and trade system, and it could not be clearer that our government is committed to ensuring the reliability of Canada's Asia-Pacific gateway and the economic well-being of this great country.
As I conclude, I have an important question for the minister. Given the topic of much of my remarks, could the minister please update the House on our government's various actions with respect to the recent situation at Port Metro Vancouver?
:
Mr. Chair, I am pleased to have the opportunity tonight to address the committee of the whole, but before I do so, I would like to join my many colleagues on both sides of the House to wish the minister a very happy birthday.
Our government understands the importance of transportation to Canada's economy. Marine transportation, in particular, plays a significant role in our ability to trade with international partners and to ship goods around the world. At a time when global trade and connectedness are increasingly necessary for economic growth, it is essential that marine activities be carried out safely and in an environmentally sound way.
This evening I would like to highlight Transport Canada's marine safety programs by providing a brief overview of their scope and purpose. These programs directly support the department's mandate for safe transportation as well as the Government of Canada's priority of having safe and secure communities.
Marine safety programs establish regulatory requirements that are harmonized with international standards for the safe and environmentally responsible operation of vessels in Canada. Marine safety also carries out compliance oversight activities, such as inspection and certification services, to help ensure compliance with requirements.
Requirements apply to the construction and operation of both commercial vehicles and pleasure craft and include the training and certification of seafarers who operate and maintain them. The effective implementation and management of these programs mean the Canadian public can have confidence in the marine sector in this country.
One key program is the domestic vessel regulatory oversight program, which is responsible for helping ensure that substandard Canadian-flag vessels do not operate. Inspection and certification activities are carried out by highly qualified Transport Canada marine safety inspectors or by representatives of qualified organizations that have been granted delegated authority. Under the delegated statutory inspection program, Transport Canada has entered into agreements with certain classification societies to perform statutory vessel inspection and certification functions.
Small commercial vessels, which make up a significant portion of the Canadian fleet, have unique safety and operational requirements that are addressed in a new program known as the small vessel compliance program, or SVCP. The SVCP helps inform the owners and operators of small commercial vessels of their regulatory obligations under the Canada Shipping Act, 2001, and to verify that their vessels meet them. This new program has proven to be a very successful way to enhance the safe operation of these vessels and to increase compliance.
Port state control is a ship inspection program that inspects foreign-flagged vessels in our waters. It is a way to ensure that foreign vessels calling at Canadian ports comply with major international maritime conventions, thereby enhancing safety and protecting the environment.
Transport Canada is also the lead federal department responsible for Canada's marine oil spill preparedness and response regime. This regime is in place to mitigate the impact of any marine pollution incidents in all Canadian waters. In this area, the department collaborates with Fisheries and Oceans Canada, the Canadian Coast Guard, and Environment Canada to ensure preparedness and response to oil spills.
One important aspect of this regime is the national aerial surveillance program, or NASP. The program conducts aerial surveillance over all waters under Canadian jurisdiction using three aircraft with state-of-the-art remote sensing equipment that is so sensitive that it can detect marine oil spills as small as one litre. The information gathered is used to support enforcement action against polluters. Last winter, the minister actually participated in one of these surveillance flights. She saw first-hand that this is a very successful and worthwhile program.
As members are aware, our government is taking action to prevent marine oil spills from happening in the first place, to clean up spills quickly and effectively if they do happen, and to ensure that polluters pay.
The hon. Denis Lebel, in his prior capacity as Minister of Transport, Infrastructure and Communities, and the hon. Joe Oliver, in his prior capacity as , announced the strategy to implement the world-class tanker safety system in March of last year. This is a comprehensive interdepartmental strategy, led by Transport Canada, that includes initiatives by Environment Canada, Fisheries and Oceans Canada, the Canadian Coast Guard, and Natural Resources Canada. With respect to preventing oil spills, we have put forward legislative amendments under Bill that would increase government oversight of oil-handling facilities, address issues of immunity for response organizations responding to a spill at one of these facilities, and strengthen requirements for pollution prevention and response at oil-handling facilities.
Other steps we have taken for which Transport Canada is responsible include increasing inspections of foreign tankers, reviewing existing pilotage and tug escort requirements, and launching the process to designate the Port of Kitimat public, which would require port traffic-control measures.
We have also expanded the coverage of the NASP to provide even better aerial surveillance. In addition, the Canadian Coast Guard has invested in new and enhanced aids to navigation that will help mariners avoid accidents and prevent oil spills. Our government has also taken action to better prepare for and respond to marine oil spills if they do happen. The Canadian Coast Guard has moved to establish an incident command system to respond more effectively to any incidents by coordinating the operations of partners. Environment Canada has completed a study into the behaviour of diluted bitumen. This work has increased our understanding of the potential effects of spills on marine ecosystems.
We have also created the tanker safety expert panel to identify how the existing marine oil spill preparedness response regime can be further strengthened. The minister is now considering its recommendations on the current regime south of 60, and looks forward to the panel's second report on the regime in the Arctic and the marine transport of hazardous and noxious substances.
These are major steps, and I am proud that our government has delivered on the promises announced last year.
Finally, I would like to remind the members that marine safety is about more than just commercial shipping. We must also address recreational boating. Transport Canada's Office of Boating Safety, or the OBS, delivers programs that focus on prevention and that provide vital information for users and builders of recreational boats to enhance safety and reduce the environmental impacts of boating. Through the OBS, Transport Canada provides funding to organizations that promote boating safety or research ways to change people's behaviour on the water. These organizations have helped increase the number of boaters who follow safe boating practices. They also have contributed information about boating incidents that makes it possible for the OBS to set objectives to help reduce fatalities, injuries, and damage to property as a result of boating accidents.
The goal of the programs and measures I have outlined this evening is to help ensure that Canada benefits from the most effective marine safety system possible to protect people and the environment. Canadians can be confident that the minister's and Transport Canada's efforts are helping to make the marine transportation system in our country among the safest, most efficient, and most environmentally responsible in the world.
:
Mr. Chair, what Canadians heard is that the minister is not responsible for this, and she has done absolutely nothing to lower costs to make our Canadian airports more competitive.
I would like to go back to rail safety, and I want to rely on the most objective document produced in the last two years in Canada, which is the report of the Auditor General, on rail safety. I want to review for Canadians a number of the Auditor General's key findings and conclusions.
First, the Auditor General and his team audited a three-year period at Transport Canada, which is this minister's department. She is the fifth minister in eight years, transiting through, I guess in terms of this cabinet, either up, down, or out.
However, the Auditor General's report on whether federal railways have actually implemented safety management systems states that “Transport Canada has yet to establish an audit approach that provides a minimum level of assurance that federal railways have done so”.
That is number one, which flies in the face of the minister's assertion that there are SMSs as a world-class system in place.
Two, on safety, the Auditor General says that Transport Canada does not have clear timelines. The report states: “We found that the work plans are vague in terms of timelines for monitoring progress on important safety issues”.
Three, critical information is not available at Transport Canada. It cannot deliver up risk assessments. It cannot give us information on the sections of track used in transporting dangerous goods; and I think of Lac-Mégantic. It cannot give us information on the condition of railway bridges. It cannot give us financial information of privately owned federal railways not publicly available.
The Auditor General then tells us that Transport Canada, in the three fiscal years that were audited, actually only performed 14 audits. That is 14 audits when they themselves said that only constituted 25% of the audits that they said had to be done in order to keep rail safe in this country. In fact, in that three-year period, VIA Rail, which carries four million passengers a year, was not audited once.
Not once.
I asked the minister earlier about qualified inspectors. In 2009, Transport Canada said that it needed 20 system auditors to audit each railway once every three years. How many were in place? There were only 10, half of what is required.
Next, the Auditor General tells us that Transport Canada does not know whether its current staff of inspectors have the required skills and competencies to do their jobs: “Inspectors and managers were not trained on a timely basis”.
The Auditor General says that they cannot even warrant that inspectors are objective and independent because they are coming from the private sector and mainly from federal railways.
This is a scathing indictment of the last eight years, and five ministers, on rail safety. However, when we listen to the minister speak, all is good with rail safety, apparently.
Can the minister explain to Canadians how it is possible that these findings are so serious that at committee, the Auditor General stated clearly that he is going to be adding another interim report to examine how much progress has been made under the current government.
:
Mr. Chair, as I have already indicated, what the main estimates will show us is that aviation safety decreased as a result of a transfer of the airports capital assistance sub-program. It is not because of what the member said.
In terms of any reductions in either marine safety or in rail safety, they have all been administrative matters. They have nothing to do with safety. We would never cut inspector positions as a result.
With respect to rail safety, we started in 2007 on this path by studying rail. We are the ones who brought forward amendments to the Railway Safety Act. Yes, they were passed by everybody, but we moved them forward because we wanted to make it a safer system, recognizing it is safe. In fact, it has been quoted as being safe even by the former member for , who said, “Shipping materials by train are...very safe and the record is really quite good”. She said that in October 2013, recognizing that the system was safe, and I agree with her on that topic.
We want to make it safer and we are reacting to what the Transportation Safety Board is indicating to us as it unfolds what happened at Lac-Mégantic.
We have indicated protective directives need to be in place on sharing information with municipalities to deal with first responder issues.
We also made a protective directive with respect to prosper classification, knowing that this crude oil in particular was very unique and very different in the way it reacted.
We also directed, through a protective direction, to require shippers to develop ERAPs for the flammable liquids that I noted before. I have set up an ERAP task force. I have reached out to industry. We have had working groups.
We have been on this issue since we became government. We have never relented on this issue. We absolutely believe in the health and safety of Canadians. We will do all we can to ensure that Canadians are safe and that we get our goods to market at the same time.
:
Mr. Chair, I too would be remiss if I did not acknowledge the minister's birthday today and wish her the best. Hopefully she will have a much better celebration in one of the nights to come, because this is not a great way to celebrate one's birthday.
That being said, Canada's rail system has been central to the development of this country. There are some 48,000 kilometres of track, enough to go around the world. We have one of the largest rail networks on the globe.
Rail has connected Canadians to each other and, by transporting Canadian goods to markets, is crucial to our economic prosperity. Some 70% of our surface freight moves by rail, including bulk commodities such as agricultural and forestry products, minerals, and energy products, including oil.
In recent years, more than 40% of our gross domestic product has been generated by bulk commodities. We use rail to move what are called dangerous goods. Dangerous goods play a vital role in the North American economy, but they are substances that could pose a threat to people or the environment. These shipments include oil and gas.
Every day such shipments move routinely and safely across Canada by rail without incident. Canadians depend on many of these goods to go about their daily lives. In fact, more than 30 million shipments of dangerous goods are transported annually in this country. Let me note again that almost all their destinations are reached without incident.
However, this past summer a tragic incident did occur. On July 6, an unmanned Montreal, Maine and Atlantic train containing crude oil derailed in Lac-Mégantic, Quebec. The explosion and fire that followed killed 47 people, caused significant damage to the town, and released more than five million litres of crude oil. The events in Lac-Mégantic underline the ongoing need for rail safety.
An on-site investigation was immediately launched by the Transportation Safety Board of Canada. The TSB provides an extremely valuable service to the government and Canadians. It operates independently of the government and makes recommendations following investigations into transportation incidents.
Earlier this year, the TSB made interim recommendations based on its ongoing investigation into the tragic Lac-Mégantic incident. Our government took decisive action to address the TSB recommendations.
Just recently, the directed her department to further strengthen rail safety in Canada by removing the least crash-resistant DOT-111 tank cars from service; requiring DOT-111 tank cars that do not meet the standard published in January 2014 in Canada Gazette part 1 or any other future standard to be phased out within three years; requiring emergency response assistance plans for even a single tank car containing crude oil, gasoline, diesel, aviation fuel, or ethanol; creating a task force that brings municipalities, first responders, railways, and shippers together to strengthen emergency response capacity across the country; and requiring railway companies to reduce the speed of trains carrying dangerous goods and to implement other key operating practices.
However, I should note, given the integration of Canada and U.S. rail networks, that rail cars cross the border both ways every day, so we also require a North American solution. When it comes to developing a new standard for rail cars, we do not exist in isolation and must consider our training partners in the United States.
As such, the continues to work with her American counterpart to accelerate the development of even more stringent standards in keeping with the TSB recommendations.
In addition, here in Parliament the minister has asked the Standing Committee on Transport, Infrastructure and Communities to review safety management systems for railways and the transport of dangerous goods. I mention this because I want to point out that Canada has in fact paid attention to safety in rail transportation. Those who say otherwise need to examine the facts.
In addition to the actions I have mentioned, our government is also taking other steps to address this important issue. On sharing TDG information with municipalities, the minister has stated that our government remains committed to a two-way dialogue and information exchange with key transportation stakeholders in communities across Canada. A protective direction was issued to make sure this happened.
On classification of dangerous goods, the minister announced a directive to ensure that all crude oil being transported is properly tested and classified and that results are sent to Transport Canada.
This provides Transport Canada with an additional means to monitor industry compliance and focus our efforts for the greatest safety benefit of Canadians.
When we look at all these actions together, we can see that our government is taking an approach that is similar to the world-class tanker safety initiative that we developed for marine transportation. It focuses on prevention, response, and liability.
Our government is committed to rail safety and, prior to this tragedy, took numerous other actions to strengthen it. It is worth noting some of them.
In 2009, we increased funding to ensure a permanent rail inspectorate of over 100 positions nationally. By last spring, Transport Canada had 101 railway safety inspectors and 35 dangerous goods inspectors. It has implemented a new, aggressive staffing plan to increase oversight capacity. For example, between April 1, 2012 and March 31, 2013, rail safety inspectors conducted more than 30,000 inspections. Our government has also invested more than $100 million in the rail safety system.
We have also taken legislative steps. Last year, final amendments to the Railway Safety Act went into effect, providing the authority to introduce new regulations to strengthen safety and oversight programs. These new regulations include increased fines for companies that break rules, a requirement that rail carriers submit environmental management plans, the creation of whistle-blower protection for employees with safety concerns, and a call for rail companies to have an executive legally responsible for safety.
I want to also note other measures we took immediately following the events in Lac-Mégantic. The directed her department to issue an emergency directive to rail companies, with five requirements: two operators are required at all times for trains carrying dangerous goods; all cabins must be locked; all reverses must be removed from locomotives; all brakes must be properly applied on all locomotives; and no trains can be left unattended without new strict conditions. Our government made these rules permanent.
These actions would build on steps that Transport Canada is also taking to bolster the safety of our rails and the transportation of dangerous goods. To this end, we have said we will work to enhance the collection of safety data and the tools to analyze safety risks and improve and expand the fleet of vehicles used to assess rail tracks. We will improve how information about dangerous goods shipments is shared with municipalities, conduct research to support safety technologies, promote a culture of safety in the rail industry, and continue to work with communities across Canada and groups such as the Federation of Canadian Municipalities to further support the work of municipal emergency preparedness officials and first responders.
We also continue to strengthen rail safety through other actions. That is why, even before the investigations into this tragedy were completed, the minister directed officials in her department to speed up development and implementation of regulations that reflect recent amendments to the Railway Safety Act. In doing so, there are several questions we need to consider. For example, do our current regimes and options adequately reflect risks of transporting crude oil and other dangerous goods? As we did in developing the world-class tanker safety regime, should we reassess the liability and compensation regime for rail transport to better protect victims, the environment, and taxpayers?
Given the integration of the Canada-U.S. rail network, and in order to improve rail efficiency together, we should work to develop a new continental co-operation on rail safety.
As I noted earlier, we are already doing some of these.
As a first step, the Canadian Transportation Agency is reviewing its insurance assessment criteria and will take actions permitted under existing legislation. As well, Transport Canada will review how much insurance may be required in order to adequately compensate people and pay for cleanups after accidents. From that, we expect to bring forward options to improve this regime and ensure it adequately reflects the risks of transporting crude and other dangerous goods.
Beyond what government can do with its own powers, we must also encourage transportation businesses to encourage a culture of safety in their everyday operations, and the sense among employees that they can all contribute to safe operations. By accomplishing this, these businesses can maintain government's trust and have confidence that we will support their enterprise.
In conclusion, let me make a couple of key points. First, railway safety regulations exist to ensure the safety and protection of the public. If these regulations are not followed, we will not hesitate to act, and if companies do not properly classify the goods they transport, they may be prosecuted under the Transportation of Dangerous Goods Act.
Second, Canada has a robust and safe transportation system, one in which we can have confidence. The facts demonstrate that Canada is pursuing rail safety and that our record has improved in recent years. However, events in Lac-Mégantic remind us that we must remain committed to strengthening rail safety. To do so, we will learn from recent events and work with all stakeholders in rail transportation to ensure the safety of our rail system for Canadians.
We recognize that there is still some work to do, and we remain committed to working with the rail industry, governments, and partners such as the Federation of Canadian Municipalities to improve the safety of our rail and transportation of dangerous goods systems.
With that, I have a question for the minister. I was wondering if the minister could comment on whether, in light of what I have said in my speech, she is confident in the direction we are taking and whether it will maintain the safety of our transportation and trade system.
:
Mr. Chair, I appreciate the comments and the review of all we have accomplished and all we have tried to do with respect to rail safety over the past number of years. Of course, we can always do better. We will always strive to do better, and we will continue to take that path at Transport Canada. That being said, I am satisfied with the reaction we have been receiving to all of these protective directions, emergency orders, and regulations we are putting in place or announcing.
I will take a moment to show that it is not just internally that we should be happy with ourselves. Externally we have heard from people like Claude Dauphin, president of the Federation of Canadian Municipalities, who stated:
FCM applauds the federal government's response to the tragedy in Lac Mégantic and to the rail safety recommendations that emerged from it.
He went on to say:
The government's commitment to increase the safety of the transportation of dangerous goods, and to require shippers and railways to carry additional insurance, directly respond to calls from FCM's national rail safety working group.
As well, it is important to note that Rebecca Blaikie, who is the NDP president, said on April 23, in response to our comments to the Transportation Safety Board, that she thinks this is a step in the right direction. She said she was glad to see the government taking action.
The member for also said:
It is a good move. It is a step in the right direction.
He also said that the three-year period is the best thing that can be done.
The mayor of Lac-Mégantic, with whom we have a very good relationship, a respectful one, and it is important for us to consult with her, as she is the centre of so much of what's been happening recently in rail safety, said she was satisfied with the new measures from the federal government.
The chair of the Transportation Safety Board said she was encouraged by our strong response to the board recommendations.
Claude Dauphin also said:
The new safety measures announced today respond directly to our call for concrete action and are another major step forward in improving the safety of Canada's railways and the communities around them.
I also want to thank the Canadian Association of Fire Chiefs, which commended us for requiring emergency response assistance plans for the shipment of crude oil, ethanol, and other flammable liquids by rail. It is something they asked for. We are continually encouraged by the fact that they will work with us on this matter as we move forward.
:
That is right, Mr. Chair.
It is my pleasure to speak to the House tonight on the help the federal government provides to municipalities and first responders.
First responders are the front line in public safety and when an emergency occurs, multiple 911 calls flow into municipal emergency centres. This begins the all-important response by police, fire, and ambulance personnel to the scene of the incident. Without this vital safety link, Canadians’ lives would be placed further at risk.
That is why our government recognizes the importance of proper first responder capability and has provided assistance to municipalities to ensure that Canadians have access to the support they require following an incident related to the transportation of dangerous goods.
For example, our government has allocated funding to support municipalities, and a portion of that funding is being provided by Public Safety Canada toward helping in the response and recovery in Lac-Mégantic.
By their very nature, the vast majority of emergencies in this country are dealt with at the local level; by provincial, territorial, and municipal governments. Under Canada's emergency management system, first responders and provincial officials are responsible for addressing the immediate needs of their residents in times of disaster. However, the federal government can and does play an important role through the disaster financial assistance agreements, particularly when communities are devastated by a large-scale natural disaster.
These arrangements were put in place to provide financial assistance to provinces and territories, on a cost-shared basis, when response and recovery costs for a natural disaster exceed what they could reasonably be expected to bear on their own. Through this program, our government has provided more than $2.5 billion in post-disaster assistance to help provinces and territories with the costs of response and of restoring infrastructure and personal property to pre-disaster condition.
However, as we learned last summer, our communities can be shattered by incidents that do not fall into the category of large-scale natural disasters. The unprecedented nature of the Lac-Mégantic tragedy was such that our government was compelled to find an exceptional and rapid funding response. In the face of such a devastating and immediate impact, it was clear that there was no time to waste. The priority was to deliver immediate help to the people whose lives had been ripped apart. With its commitment to provide $60 million to the province of Quebec, that is exactly what our government did. Since then, we have also provided up to $95 million to help with the decontamination of the water and soil.
In addition, to help meet this extraordinary need, Public Safety Canada committed to provide $25 million of the total funds, to help the Province of Quebec in its immediate response and recovery efforts, as well as to help repair, rebuild, and restore this devastated community.
The funds provided could be directed to a number of eligible costs, which would include: the delivery of emergency services; rescue, transportation, and emergency food and shelter; the registration of people who were displaced from their homes due to the destruction; incremental short-term security measures, including removing valuable assets and hazardous material from the sites; emergency provision of essential community services; the removal of damaged structures that constituted a threat to public safety; repairs to public infrastructure, such as roads and bridges; and finally, the cleanup costs.
Since this announcement, our government continues to work with officials in the Province of Quebec and Lac-Mégantic to ensure that provincial requests for federal assistance are handled without delay. The health and safety of Canadians is our government's top priority, and this funding is just another example of how we are working closely with the provinces and territories to assist Canadians when large disasters strike.
We continue to support first responders to make sure they have access to information that may assist them in dealing with an incident.
That is why on November 20, 2013, my colleague the hon. took action to make sure that municipalities and first responders have access to information about dangerous goods that flow through their communities. This government has obligated industry to provide municipal emergency planners and first responders with the information they need to conduct proper risk assessments, emergency planning, and first-responder training.
Moreover, the Transportation of Dangerous Goods Act, 1992, provides the federal government with the necessary authorities to develop policy, verify compliance, conduct research to enhance safety, guide emergency response, and develop regulations and standards to manage risk during the transportation of dangerous goods.
To further help municipalities deal with an emergency, the transportation of dangerous goods directorate within Transport Canada, operates the Canadian Transport Emergency Centre, CANUTEC, to assist emergency response personnel in handling dangerous goods emergencies. This world-renowned centre is staffed by bilingual professional scientists, specialized in emergency response and experienced in interpreting technical information and providing advice to first responders.
The centre operates 24 hours a day and handles some 30,000 phone calls a year related to safety. Delegations from around the world regularly visit CANUTEC to incorporate Canadian practices into their own countries' dangerous goods programs.
CANUTEC was involved immediately after the incident in Lac-Mégantic, providing first responders involved in the tragic incident with information regarding potential hazards of the dangerous goods, evacuation distance, train consist information, and protective clothing requirements, among others.
First responders regularly communicate the importance and necessity of CANUTEC to help them accomplish their response work and to understand the risks associated with the transportation of dangerous goods. CANUTEC also offers first responders access to immediate dangerous goods information following an incident.
A rail operator is required by regulation to provide CANUTEC with the train consist immediately following an incident. This train consist provides first responders with detailed information on the specific products the train in question was transporting, beyond the general information provided by the placards on the cars. This is much more detailed information.
It allows CANUTEC specialists to target detailed advice on handling products, which may have spilled and mixed, or recommended initial evacuation zones. It enables them to understand immediately what risks they face when they are involved in an incident.
This existing requirement for immediate information to be provided to first responders through CANUTEC, in combination with the new requirements to provide municipalities with historical information through the protective direction, demonstrates our government's commitment to support first responders with the information they require to respond to a dangerous goods incident.
We are fortunate. Anyone involved in emergency response and the transportation of dangerous goods safety knows the importance of CANUTEC and its emergency response guidebook. This guidebook, produced by Transport Canada, helps first responders, police, fire, ambulance and paramedics, to respond and protect Canadians during the initial phase of a dangerous goods incident.
The emergency response guidebook is an informative and comprehensive guide designed for use at a dangerous goods incident occurring on a highway, aircraft, ship or railroad. It enables first responders to quickly identify the specific or generic hazards of the material involved in an incident. The guidebook is used by many first responders. It is something that is widely provided.
Could the minister clarify a number of oversight positions for each mode of transportation, and for the transport of dangerous goods? After she has done that, perhaps she could comment on the January 23 Transportation Safety Board-issued recommendations regarding emergency response assistance plans, ERAPs. Perhaps the minister could tell the House what actions our government took to respond to these recommendations.
:
Mr. Chair, at the beginning of the evening, a mere three hours ago, I gave the correct number when it came to the number of civil aviation oversight inspectors. I gave the incorrect number in the last round of questioning. I just want to make sure that for the purposes of the record, I am clear that in civil aviation the oversight positions numbers are 1137 and not what I said, which was the total number, 1707.
I thank the hon. member for catching me on that one and ensuring that we have the record sorted out, and I am delighted that he talked about a topic that is very important to us.
With regard to what happened in Lac-Mégantic, the first meeting I had was in Lac-Mégantic with the mayor of Lac-Mégantic, and from there I met the local mayors ten days later. The one thing that came out of it was the importance of understanding that first responders needed to have certain information and, second, that they needed to ensure that they had a communication line open with the rail companies in their area.
That is what we have been trying to do through our protective directives, the first one having to do with the information and the second one, which we just did, having to do with emergency preparedness along Canada's railway lines.
As the member pointed out, an ERAP, or emergency response assistance plan, is a formal plan. It is what industry says it will do to support first responders, the ones first on the scene in the event of an accident involving dangerous goods. Sometimes it requires special expertise and sometimes it requires special response equipment. An ERAP helps municipalities and local emergency responders by providing them with around-the-clock technical expertise and specifically trained and equipped emergency response personnel at the scene of an accident.
The ERAP describes specialized response capabilities and equipment that would be used to support response to incidents involving higher-risk dangerous goods. It addresses emergency preparedness, personnel training, response exercises, and equipment maintenance.
As the hon. member also pointed out, CANUTEC supports first responders as well. Transport Canada's 24-hour emergency centre is staffed with scientists who provide real-time information and emergency responses by the first responders following an accident or an incident, something which the municipalities told us they wanted to have.
Prior to my announcement on April 23, regulations required an ERAP for certain volatile refined fuels, such as gasoline or diesel, when there were a large number of cars in interconnected trains. The requirement did not apply to crude oil or if a smaller number of cars were transported.
ERAP requirements are now being expanded to include specific flammable liquids transported in large volumes by train. The protective directives that we put in place require shippers to develop these ERAPs for flammable liquids like crude oil, gasoline, diesel, aviation fuel, and ethanol. An ERAP is required even when it is just a single tank. I think that is an important specific issue with respect to how we are dealing with this matter.
Industry must submit the ERAP to Transport Canada for approval within 150 days, and we have set up a task force as well to facilitate even further more recommendations that may be made by the transportation of dangerous goods general policy advisory committee's emergency response working group.
:
Mr. Chair, first let me add for the public record, as the day is drawing to a close, my best wishes to the minister for a happy birthday.
Let me commend the minister as well, who is doing a fine job in the transport portfolio. She is demonstrating that she is one of the ablest transport ministers Canada has ever had.
I am thankful to our senior officials as well, who are dedicated public servants, and their team of literally thousands of dedicated, non-partisan public servants at Transport Canada who do diligent work day after day to ensure that Canadians remain safe and that public safety is taken seriously.
Obviously there are ministerial staff who work very closely with the minister day by day to ensure that priorities are achieved. They work not according to the clock, but beyond the clock, until tasks are finished. That is critical.
There are members of the Standing Committee on Transport, Infrastructure and Communities who are here today in support of the minister. They do phenomenal work, particularly in a study right now on all modes of transport involved with safety management systems and the transportation of dangerous goods by rail, water, air, and truck. We are doing important work to support what the minister is doing. We are doing that with members opposite. It is all about important public safety.
I want to ask a couple of questions.
First, in response to the member for , I think there is an important clarification the minister wants to get on the record with respect to Aéroports de Montréal.
Second, and also my favourite topic, is the economic importance of the Detroit River international crossing. What progress is happening on that, and why is this government and not the opposition importantly positioned to deliver on this key project for this nation, the number one infrastructure priority of this government?