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I call this meeting to order.
Welcome to meeting number 96 of the House of Commons Standing Committee on Public Safety and National Security. Today’s meeting is taking place in a hybrid format, pursuant to the Standing Orders. Members are attending in person in the room and remotely using the Zoom application.
I would like to make a few comments for the benefit of witnesses and members. Please wait until I recognize you by name before speaking. To prevent disruptive audio feedback incidents during our meeting, we kindly ask that all participants keep their earpieces away from the microphones. Audio feedback incidents can seriously injure interpreters and disrupt our proceedings. I will also remind you that all comments should be addressed through the chair.
Pursuant to the motion adopted on October 23, 2023, the committee commences its study on the growing problem of car thefts in Canada.
We have today two panels of witnesses. I would like now to welcome our witnesses for the first panel. From Équité Association, we have Terri O'Brien, president and chief executive officer. From Carfax Canada, we have Shawn Vording, vice-president, product and sales. From the Insurance Bureau of Canada, we have Celyeste Power, president and chief executive officer, and Jason Clark, national director, climate change advocacy.
Up to five minutes will be given for opening remarks, after which we will proceed with rounds of questions.
Welcome, all.
I now invite Ms. O'Brien to make an opening statement, please.
Good afternoon, everyone. My name is Terri O'Brien, and I serve as the president and CEO of Équité Association. Équité is a not-for-profit organization and Canada's national authority on insurance crime and fraud prevention.
I am honoured to address you here today to continue the important dialogue on Canada's national auto theft crisis.
At Équité, our team of specialized investigators provide expert support to law enforcement agencies across Canada, collaborating on auto theft investigations, including identifying and recovering stolen vehicles and partnering with CBSA. Additionally we have developed advanced analytics capabilities, which allow us to share intelligence with our partners and track the evolving trends of insurance crime.
In Canada, a vehicle is stolen every five minutes. That means that every five minutes a Canadian is victimized, and every five minutes a neighbourhood in our country feels less safe.
With an annual cost exceeding $1.2 billion to Canadians, auto theft is not just a property crime. Vehicles in Canada are being stolen by domestic and international criminal organizations. The proceeds are then being used to finance domestic drug and gun trafficking and international terrorism. These crimes hurt our communities and put Canada in the spotlight internationally as a source nation for illegal trade.
Addressing this issue is an important step in keeping Canadians safe and stemming the flow of funds into organized crime. To put this crisis into further context, in three short years, Ontario has seen auto theft rise by 53%, and Quebec residents have been hit even harder, with a 66% increase. These crimes hurt our communities.
We know that the criminals are becoming more brazen, often resorting to physical violence, as evidenced by the significant increase we've seen in carjackings, break and enters and owner-interrupted thefts that often result in violence. Greater Toronto area residents have witnessed a 104% increase in carjackings. Carjackings are terrifying.
However, not all vehicles stolen are destined for export either. Domestically there has also been a sharp increase in stolen vehicles being “revinned” across the country. In revinning, a vehicle identification number—or VIN—is changed, in essence, to create a false identity for that vehicle. By creating a new identity for these vehicles, criminals can sell them to unsuspecting Canadians, use them to commit other crimes or export them for significant profit.
In this way Canadians are being exploited twice, once when they are victimized by auto theft and again when the proceeds from that crime are funnelled back into our communities, funding guns, drugs and other illegal activities.
From a fiscal standpoint, there are significant costs incurred by the government in terms of law enforcement and administration of the criminal justice system, which affect all taxpayers. Both individuals and the insurance industry bear extraordinary costs in premiums, deductibles, rental cars and other transportation costs, all at a time when the cost of living and inflation are already challenging for Canadians.
According to a recent Angus Reid survey, 84% of Canadians say the rise in auto theft makes them concerned about their safety and the increase in crime in their community.
Auto theft is a multi-faceted, complex issue, but when we are looking at short-term, high-impact solutions, technology has an important part to play. Canada's current motor vehicle safety regulations were fully implemented in 2007, which resulted in a steady decline in auto theft. However, today's criminals are taking advantage of these outdated standards, and they are able to gain access to a locked vehicle in as little as 60 seconds.
Transport Canada has committed to updating the safety standards, which is welcome news for Canadians.
Anti-theft vehicle technologies can utilize simple solutions that are effective at preventing the vehicle from being stolen in the first place. These could include simple solutions deployed through software patches like introducing reprogramming delays or retrofitting key fobs to put the battery to sleep after a few minutes to protect against relay attacks.
Several auto manufacturers have been offering theft event privilege discounts upwards of $10,000, depending on the vehicle. However, this funding could be better directed to immobilizers that cost about $300.
Finally, expanding data sharing between CBSA and industry partners, such as Équité Association, can lead to more targeted inspections and reduce illegal exports of stolen vehicles. This strategy aligns with how the U.S. Customs and Border Protection agency is currently operating with our sister association in the U.S., the National Insurance Crime Bureau.
Public-private partnerships create a more effective and efficient way of addressing the issue of auto theft by allowing us to pool resources and lend our expertise.
Canadians have been withstanding the worst outcomes of this public safety and financial crisis. We know that our collective strength comes from the actions we take to improve our communities and take care of one another.
I look forward to continuing the momentum that was started earlier this month at the National Summit on Combatting Auto Theft and to finding collaborative solutions to protect honest, hard-working Canadians.
Thank you.
Good afternoon. My name is Shawn Vording. I'm a 15-year executive at Carfax Canada and was recently announced as the new president.
I would like to thank the committee for inviting us to talk about auto theft, which we take very seriously.
We have been helping Canadians identify auto theft for over 25 years and have been actively working with various stakeholders and partners for the past six years. We are Canada's definitive source of automotive information, delivering vehicle history, appraisal and valuation. Our products help millions of Canadians make better decisions when it comes to buying, selling and owning vehicles.
We recently attended the automotive theft summit on February 8, where we learned even more about the various efforts of multiple partners and potential additional opportunities for Carfax Canada, in order to help address auto theft in Canada.
When it comes to automotive theft and fraud, the Carfax Canada vehicle history report helps our customers identify critical issues before they purchase a vehicle, such as vehicle information numbers, or VINs, specific to cloning; VIN tampering; stolen cars; and inaccuracies in vehicle data. In fact, for any VIN in North America, Carfax Canada has access to data that may help determine whether this is the case.
Carfax Canada provides products and services to several customer segments and is proud to work with many partners. These include Canadian consumers, Canadian automotive dealers, automotive manufacturers, banks, auctions, insurance carriers, Équité, the Insurance Bureau of Canada, border services agencies and Canadian law enforcement agencies.
Carfax Canada continues to acquire data and invest in products and services to help consumers and all stakeholders across the country tackle this major issue. We remain fully committed and are eager to expand our efforts and partnerships even further to benefit all Canadians.
Thank you.
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Thank you very much, Mr. Chair.
As Terri noted, our industry sees trends before they become a crisis by way of rising claims costs. When we began to see auto theft numbers increase, we were quick to look at ways we could limit the impact on our customers. It was immediately clear that we would be unable to tackle this issue alone. Thankfully, the federal government's commitment to an action plan and the ongoing collaboration of many stakeholders mean we do not have to. It's now well understood that in order to combat auto theft in Canada, we need a whole-of-society approach.
I'd like to start by painting a picture. In terms of solving the auto theft crisis, where do we want to be by 2030?
Canada should no longer be seen as a target destination for international organized crime groups to source their stolen vehicles. By 2030, it should be so difficult to steal and export a car in Canada that organized crime groups look elsewhere. It should be so difficult that other countries are looking to emulate Canada's approach. This is critical because by 2030 we can expect to see more autonomous vehicles on our roads, and then the impact of vehicle theft will become much more severe.
How do we realize that vision?
First, we have to focus on prevention and consumer awareness to make cars harder to steal in the first place. A vehicle is reported stolen every five minutes in Canada. We need to do better for your constituents and for all Canadians.
Second, we need to expand intelligence and information sharing among enforcement agencies and industry partners. There are international examples that we can replicate here to disrupt the transnational criminal organizations from benefiting from auto theft.
Third, we need to focus on intervention and law enforcement to cut off the supply of stolen vehicles to international markets. Our borders are too porous. They're designed to prevent bad things from getting into our country, but we also need to deter things from getting out. This involves the CBSA and law enforcement, as well as the co-operation of shipping and rail companies and freight forwarders. Last week's $15-million funding announcement is certainly a good start, but there's more work to do.
Finally, we need to improve the recovery of vehicles, in part through international policing coordination, to make it easier to bring your constituents' vehicles home.
What else could we do?
When it comes to elevating consumer awareness, insurers are doing their part. In addition to consumer education at the point of sale by brokers and agents and incentivizing the installation of aftermarket anti-theft devices, our industry ran an “End Auto Theft” campaign last fall to educate drivers on what they can do to protect themselves. We reached tens of millions of drivers.
We can build on this campaign while promoting other efforts. There are great examples of consumer education out there, and we need to see more of that.
As for prevention, we welcome Transport Canada's commitment to modernize outdated motor vehicle safety standards to improve theft deterrents. Updating standards and regulations can take time, so our industry is prepared to partner with manufacturers on this to make it move as quickly as possible.
Through Équité, insurers are also committed to sharing their data with law enforcement agencies and the CBSA. In the U.S., Customs and Border Protection actively shares intelligence information with the National Insurance Crime Bureau to detect and prevent the export of stolen vehicles. They indicate that this has been incredibly useful.
Enhanced information sharing will help inform earlier, more-targeted enforcement, further cutting off the supply of stolen vehicles. The provinces also have a role to play here in addressing the vulnerabilities in revinning a vehicle.
With regard to intervention and enforcement, preventing the illegal export of vehicles absolutely should be the priority.
In Canada, export documents can be amended after a ship has set sail. In the U.S., Customs and Border Protection requires the exporter of a vehicle to present all export documents and the vehicle at the port at least 72 hours prior to export. As a result, law enforcement experts estimate that only 10% of their stolen vehicles are slated for export. In Canada, that number is over 50%.
With regard to recovery, once vehicles are out of Canada, it's complicated and costly to get them back. Sharing our law enforcement information with foreign partners, including Interpol, would help arm international customs officials with the knowledge they need to intervene.
In closing, I want to state the obvious: Auto theft is not a victimless crime. It affects every Canadian—each and every one of your constituents—either directly or indirectly.
Like in any other business, increased costs will eventually be borne by the customer. Last year, auto theft added an average of $130 to insurance premiums in Ontario and $105 in Quebec. This is to say nothing of the upstream and downstream impacts that auto theft is having on Canadians' safety in their communities—our communities—every day.
We can do better—we must do better—for our friends and neighbours across the country.
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Thank you very much.
My next question is for Ms. Power. I'm sure the insurance industry is frustrated by the number of claims that are being paid out—$1.2 billion last year, I think. As an insurance industry, I'm sure you're looking at all the factors.
One thing we've seen consistently in the news is that, for the people who are being apprehended for stealing these vehicles, it's not the first time. Often they're people who have been apprehended before for stealing a vehicle. They might even have been to prison or, in some cases, they might be on bail.
Does the Insurance Bureau generally support creating tougher penalties for people who are caught stealing cars multiple times?
Thank you to all for being here.
It struck me in the testimony here today how important the auto theft summit was in terms of hearing the issues that other members are experiencing all in that room together. Even I had heard from organizations—Mr. Vording, you mentioned some additional information from partners that was incredibly helpful—and all echoed the comments about this not being a one-size-fits-all solution. We need partners at the table.
Mr. Vording, I'll start with you. This is following up on Mr. Lloyd's comments. We have similar statistics, that 50% or 60% of the cars that are stolen leave, but that means 40% to 50% actually stay in Canada. The issue around revinning is actually provincial. How do we as a federal government try to bring together provincial governments on this issue? What would you say is a gap? What's something that perhaps we could help with to close some of those gaps?
As you acknowledged in your example, often the moving between provinces and territories might be the way in which this revinning is able to happen.
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My colleague Ms. Power mentioned that we have been recommending the 72-hour rule, wherein the vehicle has to be presented 72 hours in advance, prior to export.
Another key control U.S. Customs and Border Protection has is that the shipping manifest cannot be amended post-departure. In Canada, in some of the investigations we participate in, we'll see that a container will be listed with a load of dishwashers, for example, and then get changed to vehicles after the fact.
I will share that we work closely with the NICB in the U.S., which I spoke about. The U.S. is experiencing auto theft to a degree similar to Canada. Last year, they lost one million vehicles in the U.S., and we lost about 100,000 in Canada. They're 10 times our population. Similarly, the state of California lost 100,000 vehicles. They are 38 million people, so it's akin to the population in Canada. Most recently, in sharing information with our U.S. counterparts, we learned the eastern ports of Baltimore and New Jersey are starting to see increases in the export of stolen vehicles as well to some of the illegal trade routes across the Atlantic that we also experience.
The U.S. is in a similar place on auto theft.
I would also like to thank the witnesses for being here.
I have been eagerly awaiting this study. On October 23, I proposed a motion that the committee study this important topic. In the meantime, other parties have talked about it, which is great. What's important is that we talk about it.
The government hosted the National Summit on Combatting Auto Theft, which I attended, and I saw a few of you there as well. It's important to bring everyone together and start the discussion. However, I am wondering about the government's co-operation with organizations such as yours, both before and after the summit was held. The government said that there would be an action plan afterwards. Announcements were made on the margins of the summit, when we hadn't actually heard from all of the day's speakers and stakeholders. I would like to hear your comments on the announcements that were made and on the investments.
This seems to have been the most effective summit we've had so far, since a few days later, there was a search of 26 containers at the Port of Montreal. They contained 54 stolen vehicles. That was done by the police. We assumed that those discussions must have led to something, although I imagine that the operation had already been planned.
I'd like to start with you, Ms. O'Brien.
I know that the Équité Association is working with the joint squad set up by the Sûreté du Québec. Several Quebec municipalities were also involved, including the police services of Terrebonne, Blainville, Montreal, Longueuil and Châteaugay, as well as the RCMP and the Canada Border Services Agency, or CBSA.
First, explain to me briefly what the Équité Association does and what positive effects the co-operation with the joint squad in Quebec has had.
Second, what do you think about the announcements that have been made by the government, particularly by the regarding possible amendments to the Criminal Code and by regarding a possible ban on the import, sale and use of devices that are used to detect key fob signals?
I have asked a lot of questions, so I will give you the floor. Feel free to take the time you need.
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Thank you very much. Thank you for your participation and for bringing this forward at committee as well. I really appreciate it.
We have been very heartened at Équité Association by all of the recent announcements and partnerships, in particular, by the actions that have come out of the summit. They have really started to make meaningful headway against auto theft.
In terms of the most recent announcement of $15 million for law enforcement and collaboration, particularly between the SQ, Montreal police services and CBSA, our team works quite closely with them, particularly at the port of Montreal, so that is an excellent announcement. We've participated in project research in Quebec that has been ongoing for the past year, in effect acting as a Quebec auto theft team, and have made meaningful headway in terms of vehicle recoveries and stemming the flow of funds into organized crime.
The previous announcement of $28 million for CBSA was very encouraging. We've had continued and increased collaboration with President O'Gorman and the team at CBSA. They've been fantastic partners for many years. This increased funding and collaboration has been really welcome news.
The port operations, particularly at the port of Montreal—but we also operate at the port of Halifax—have been running at a very increased rate for months. They started several months prior to the summit but are continuing post-summit as well, which has been fantastic.
The RCMP partnership was announced at the summit by Commissioner Duheme; however, the RCMP has since followed through with uploading our CPIC or stolen vehicle data from Canada to Interpol. Équité Association was designated as the non-law enforcement repatriation agency in Canada, and we're already seeing over 150 stolen vehicles identified. We are working to repatriate those vehicles to the rightful owners.
The OPP auto theft team has also been quite active. It is at the borders in both Ontario and Quebec, working collaboratively with the SQ, Montreal police, Toronto police, CBSA and us. That work has been continuing as well. There was also a large Ontario announcement recently as well.
I think I hit all of your announcements. Did you want me to speak a bit about 's devices, or was that sufficient?
Thanks to our witnesses. We really appreciate your testimony.
I'd like to start with you, Ms. O'Brien.
I would like to know two things. First, the CBSA cuts that we saw under the former Harper government really haven't been restored under the current government. To what extent do you believe that has had an impact on our ability to cut the export of stolen cars? The estimates range as high as 80%, as I know you're aware. To what extent have those cutbacks helped to trigger, in a sense, this increase in crime syndicates using auto theft as a way of making money?
Second, I'm interested in the work of the analysts. When the analysts determine that there are suspected exports of stolen vehicles, who do they contact first? Do they contact CBSA? Do they contact the Montreal police? How is that information shared? What has been the response time for those concerns being raised by the analysts at CBSA and the police?
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Thank you for the good questions.
I can't speak to the CBSA cuts, necessarily, as I don't really have purview over its organizational structure and funding structure, but what I can say is that with the resources it has allocated to outbound inspections, it has always been responsive. It's always been a great partner, understanding, of course, that the priority in recent years has been on inspections of guns and drugs coming into the country.
In our understanding of this complex, multi-faceted problem of auto theft, it's also been a key learning in the past two years that auto theft is funding gun and drug crimes in our communities. The additional funding now put into the CBSA has been welcome, and it is focused on auto theft and ensuring that we have those inspections in place to cut off that funding source. I think that is important.
In terms of analytics and how they help, analytics can look at things such as VIN data—as my colleague Mr. Vording mentioned—container weight, shipping lines, shipper destinations and other non-PII data to target those containers that have red flags, as in the example earlier. It may not be a container of dishwashers, and we can tell that by all of the various data elements that are analyzed.
How we share different trends and intelligence these days is through the MOUs we have in place and our partnerships with law enforcement, and then law enforcement shares that with the CBSA. What we'd like to do is open up that information sharing through an MOU or tri-party agreement, inclusive of the CBSA, such that it can share some of the information off the B13 manifests.
My next question is for both you, Ms. O'Brien, and you, Ms. Power.
I notice from the deck that there has been a spike upward in motor vehicle thefts in Ontario and Quebec. It's 53% in Ontario and 66% in Quebec over the last two years. In Atlantic Canada, it's 26%. Western Canada is the anomaly, with only an 8% rise. In British Columbia, we actually saw a decrease in 2022.
To what extent is the B.C. model...? I know you're aware that B.C. has the largest bait car program in the world. Our thanks go to the New Westminster Police, the RCMP in Burnaby and Surrey, and all of the law enforcement, including the transit police who are involved in that bait car program.
What are the best practices we can learn from the B.C. model? While not perfect, it has certainly contributed to not seeing the rise that we're seeing in other parts of the country. Can we learn from the bait car program in B.C. and in B.C.'s Lower Mainland? Are there other things that we can learn from as well?
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Thank you for the question.
What I can share is that we have significant bait car vehicle programs in the provinces of Ontario and Quebec, and we work collaboratively with our members in the insurance industry and with law enforcement to run those programs. What I would share about the difference in the experience with B.C. is that the illegal trade markets overseas are across the Atlantic. They are in the continent of Africa and in the Middle East, primarily, as well as in various countries in Europe.
However, on the west coast, there are not the illegal trade markets in China and Asia, and some of the other countries that you would see across the Pacific.
Secondarily, I would say that all of the shipping routes through the Pacific Ocean have to cross over into U.S. territory. If they go south, they're almost immediately out of the port of Vancouver or other B.C. ports and into U.S. territory. If they go north, they hit Alaskan waters and are, again, in U.S. territory. Therefore, they are subject to search and seizure by U.S. Customs and Border Protection.
Due to the lack of illegal trade markets overseas and that impediment with U.S. markets, we're seeing far more exploits and illegal vehicle shipments across the Atlantic.
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Absolutely. Thank you for the question.
Yes, a small percentage of the vehicles are actually being chopped up for parts. I think the most significant ones are catalytic converters. Catalytic converters have precious metals embedded in them, and when the value of those metals goes up, the catalytic converters become more valuable. We've seen vehicles being stolen to be chopped up for parts, or we've seen just the catalytic converters being cut out of the vehicles. We've seen mass incidents of that, in which thieves have gone into leasing companies or dealerships and have just cut out all the catalytic converters.
I believe it was the Province of Manitoba that implemented a law that has been quite effective there, which we would encourage the other provinces to look at. Really, it involves know-your-vehicle or bill-of-sale documentation. It's sort of like the way a pawn shop works. When you go to sell something at a pawn shop, you have to show ownership. You would have to show some details around the vehicle and how it got chopped up for parts.
That's being applied to the salvage industry, so if somebody drives up with a truck full of catalytic converters, they have to have a bill of sale for each one.
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I apologize. We have only a short period of time, although I welcome all of you to please feel free to follow up with the committee if you have specific recommendations or further evidence you'd like to submit. Note in those submissions that they can be distributed and made public as well.
I've heard from a host of constituents. In fact, I have in front of me an email from a constituent who talks about a known criminal attempting to steal their truck and having stolen their neighbour's truck in a rural area. They had camera evidence but it wasn't seen to be quite enough. They talked about the whole reign of terror of these known petty thieves who are stealing vehicles.
In your opening statements you talked about the cost this has and how it's not a victimless crime. Not only does it terrify and victimize and, in many cases, traumatize the individuals who have seen significant violations, but it also has a significant impact on the cost of living. Insurance rates are not included in the inflationary index, yet we're seeing significant increases in the cost of insurance, which is of course essential for anybody in our large country. In rural areas, we don't have public transit, so you have to own a vehicle.
I am just wondering if you can share with the committee how we reconcile that there's an incentive to make sure that vehicles are not stolen, and there's an incentive to make sure that these thieves, in many cases on bail.... In some cases, they have stolen a vehicle and been arrested, and the same day they are back out on the streets, stealing more vehicles. I can point to a number of examples.
What's the picture here to make sure we can deal with it so that ultimately Canadians can save on insurance costs? The cost of vehicles over the last couple of years is up 20%. That's a massive cost and a contributor to inflation, which is not tracked in the government's numbers. I'd like to hear your feedback about how we stop this and ensure that, ultimately, Canadians aren't having to pay the price for the host of circumstances leading to massive increases in costs.
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Thank you very much for the great question.
Perhaps I'll start with the cost. It was $1.2 billion last year, and that was in addition to a number of other costs that we've seen increasing across the auto insurance industry. Our vehicles are all becoming much more expensive to repair. The industry did look at ways in which we could mitigate the impact of this on our own, prior of course to the great collaboration we're seeing now.
One way is to incentivize the installation of aftermarket tracking devices so that, when your vehicle is stolen, we can see where it is and we can get it back for you. That, of course, will lead to a reduction in costs. Those can be upwards of $500 to install, and a number of insurers have been waiving that fee or incentivizing folks to do it by not charging the surcharge you may have to pay if you have a high-risk vehicle. Those are some ways we're trying to incentivize.
We're also making sure we get consumer information out to customers at the point of sale, including when to install a bar on your steering wheel. You might want to put your key in a Faraday bag. We've been giving those away as well.
We are very much trying to do what we can on our end to incentivize and limit the impacts of theft.
In terms of what we can do all together, again, it's not going to be just one government and one solution. With respect to the federal government's action plan, we implore you to look at all options available to you, from having stiffer penalties to resourcing prosecution to reprioritizing CBSA towards auto theft and imposing the 72-hour rule. Those things are critical. Provincially we need to examine investing in enforcement teams and look at revinning.
I'll stop there because I see we're at time.
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Thank you very much for the question.
I think the announcement from was a good step forward, in that banning these devices is helpful. However, I would share that there are dozens of these devices. The Flipper device is one that amplifies a signal from a key to a car, which is called a relay attack. Most of the auto thefts we're seeing right now are reprogramming a new key through the OBD port, or it's a CAN bus attack, wherein they just connect into the car's computer technology system.
We're seeing very effective prevention technologies in other jurisdictions such as the U.K., where manufacturers that operate in the U.K. are downloading security patches into their technology systems that prevent the CAN bus or the controller area network from being overcome. These are simple technology solutions that can prevent the cars from being stolen in the first place. I think some of the incentive for the prevention technology innovations we're seeing in the U.K. is due to some insurers in the U.K. deeming some vehicles on our top 10 list to be uninsurable, or their insurance is over 10,000 pounds a year.
I might ask my colleague Ms. Power to speak about how some of those levers are perhaps not available to Canadian insurers, though we're seeing them used quite effectively in the U.K. right now.
I would note that, as an insurance industry, we are very heavily regulated, not only on the federal front but also provincially. Provincially, the regulator tells us what we can sell, how we can sell it, who we can sell it to and for how much.
One rule in place in Ontario and Alberta is a take-all-comers rule or adverse contractual action rule. That means we have to quote every single customer for auto insurance. If you have a high-risk vehicle in the U.K., the insurer might be able to say, “I'm sorry, but no, we're not going to insure you anymore.” In Ontario and Alberta, we are legally mandated to do so.
Individual insurers are working closely with the regulator to send out price signals and push for new rules. However, under law, we're not able to take advantage of that tool, unfortunately.
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I call this meeting back to order, please.
I would like to welcome our second panel of witnesses.
In person, we have Mr. Weber from the Customs and Immigration Union. By video conference we have, from Peel Regional Police, Deputy Chief Nick Milinovich, and, from the Toronto Police Service, Deputy Chief Robert Johnson. Thank you for being here, all of you.
Up to five minutes will be given for opening remarks, after which we will proceed with rounds of questions.
I now invite Deputy Chief Milinovich to make an opening statement, please.
Thank you, House committee members. Thank you for including Peel Regional Police in your study of the growing crisis of auto thefts in Canada.
Our police service has been at the forefront of this issue since its onset. Despite these efforts, we continue to have one of the highest per capita rates of stolen vehicles in the country. Last year alone, over 7,000 vehicles were taken from our region. This has become a significant threat to the safety and security of our cities and communities here in Peel, the GTA and on a national and international level.
Canada has become a source country for stolen cars, which is among the top three revenue generators for organized crime and is used to support other criminal enterprises like illegal firearms, human trafficking and drug trafficking, which find their way back to our communities and victimize them again.
Record numbers of people are waking up and walking out to their driveways to find that their vehicles have been stolen. In some cases, they've had that experience multiple times. Others are walking out to parking lots and seeing that their vehicles have been stolen. The reality is that they are more fortunate than people who are experiencing this by someone busting down their door in the middle of the night or taking their vehicle with the use of violence, oftentimes armed.
Over the course of the last two years in Peel Region alone, there were 185 carjackings. Home invasions are now increasing exponentially as well.
The solution to this problem extends well beyond enforcement, but I want to make it clear that we aren't absconding from our responsibilities. In Peel, we have more than doubled our commercial auto crimes team. We have one of the largest investigative auto theft teams in the country. We continue to work with our partners on a number of joint force operations and lead efforts toward creating multisectoral approaches to address this issue. This has resulted in an increased awareness from the community and changes, as we've heard, in the area of insurance. It has resulted in opportunities to advocate for our community at municipal, provincial and federal levels. We need to continue to coordinate this action among all of the relevant stakeholders.
Many of the recommendations you've heard today, which I've had an opportunity to listen to, begin to address and speak to the variety of opportunities we need to take advantage of. That being said, I want to be very specific about what I see as being the two most obvious and quickest solutions that I think will begin to address the problem we're experiencing.
The first is the ports. I have personally visited the ports and was surprised to learn that, despite the number of autos that are being exported out of our country, there were no officers or analysts exclusively assigned to intercepting the export of stolen cars from our country. We need to resource and equip our ports in a way that is commensurate with the pressure and issues we are experiencing.
The second thing I would like to address is a national strategy. This isn't a Peel issue. It's not a greater Toronto issue. This is a national auto theft issue that we are experiencing, and we need a national strategy to respond to it. I understand that Public Safety is developing an action plan. My hope is that it will formally elevate auto theft to a national priority and examine opportunities to legislate tougher sanctions and federal sanctions, which would enhance police abilities to pursue the organized crime groups that are responsible for this.
The reality is that auto theft is no longer just a property crime, but it's still legislated as though it were. It shouldn't be treated that way. Additionally, we need a review of relevant legislation, which would include things like the Customs Act, the Export and Import Permits Act and a variety of other federal legislation.
Again, I believe that a national auto crime strategy that enhances our ability to pursue the organized crime groups that are responsible for this at a national level is required.
Again, our police service appreciates the standing committee's consideration of our recommendations, and I would be happy to answer any questions you have.
Thank you.
Thank you for the opportunity to appear before the public safety and national security committee.
As we all know, community safety is a shared responsibility. We must work together to combat the organized crime that is impacting our communities. Toronto has experienced a dramatic spike in auto thefts over the last several years, more than anywhere else in Canada. In 2023, there were more than 12,000 vehicles stolen in Toronto alone.
Vehicle theft is an epidemic in this country. Twelve thousand cars amounts to approximately $790 million, and that is the value of the vehicles stolen in Toronto alone this past year. That is about 34 vehicles stolen every day. That is one every 40 minutes.
Just last month, a mother with two children in car seats had her vehicle stolen in a grocery store parking lot. Two young offenders drove those children around for 15 minutes. They are safe now, but this terrorizing criminal activity has to stop.
It leaves people feeling anxious, afraid and victimized while organized criminals get rich. Since 2018, Toronto police have recovered over 46% of stolen vehicles, totalling more than 20,000 vehicles, and we have arrested more than 1,300 offenders and laid over 5,000 related charges.
We know that, like other crimes led by organized crime networks, they do not care about borders or jurisdiction. A violent carjacking in Toronto can end up with an arrest in Hamilton. We know that these stolen vehicles often wind up leaving Toronto and end up sold around the world by organized crime groups. Stealing cars is lucrative. It is quick money with endless demand. With little skill and few consequences, they can steal a vehicle and get cash fast. What we all need to be talking about is the escalation of violence, threats and intimidation, where all sorts of weapons and firearms are being used to steal vehicles.
I am also concerned about the ability of the justice system to deal with repeat offenders. Whether it is a carjacking, a break and enter, or a home invasion, criminals are getting far too brazen in their methods to steal vehicles and are causing residents across Toronto an incredible amount of fear and anxiety. Realtors tell us the demand for homes with garages is rising because of this.
In Toronto, home invasions, break and enters, and auto theft occurrences rose by over 400% in 2023, with a total of 202 incidents. Carjackings have also seen a dramatic rise in Toronto, with 233 occurrences reported in 2023. That’s over 50% of all incidents reported in the GTA. In addition, since the beginning of this year, we've had 17 home invasions—that's double what we had last year at this time—and over 32 carjacking occurrences, which, again, is double what we had year-to-date this time last year.
This is why we are part of the provincial carjacking joint task force, with the support of the Government of Ontario and co-led by the Toronto Police Service and the Ontario Provincial Police. The task force is an excellent example of how working together with other law enforcement agencies and government agencies helps us in these complex investigations to disrupt this criminal element.
I believe we need a national strategy to have real impact on the rising number of auto thefts and the increasing violence. However, this is not just a law enforcement problem. We need to collaborate with all levels of government, along with our partners in private industry. Vehicle manufacturers, port authorities and shipping companies need to work with us to make it harder to steal and transport vehicles. We need to work in a coordinated manner to fight organized crime, stop the violence and keep our communities safe.
We welcome all efforts by manufacturers to better protect vehicles from being stolen and timely support for our investigators so that we can catch offenders and return vehicles to their owners. Police can make the arrests and provide safety tips, but we need others to do their part also.
Now is the time to be bold in developing partnerships with manufacturers, engineering experts and others to harness the rapidly developing technology that lies at the heart of the solution. Making vehicles harder to steal and making ports more secure from exploitation will help us reduce the growing number of carjackings.
The federal government is already playing an important role in bringing law enforcement and the private sector together, as we saw at the federal summit hosted in Ottawa about three weeks ago.
I also believe we need to be bold on justice reforms and work across all sectors to tackle repeat offenders and return a sense of safety to our communities.
Thank you for the opportunity to speak here today. I look forward to working collaboratively with all of you to keep our communities safe.
Mr. Chair, members of the committee, as the national president of the union that represents CBSA personnel, including the border officers who work at marine ports, I'm glad to once again have the opportunity to appear before you. I hope to be of some assistance as part of your study on the growing problem of car thefts in Canada. Border officers are rarely consulted by senior agency officials, and I'm thankful to be here today to represent the hard-working women and men of the front line.
I'll be pretty brief. Anyone who's paid attention to the media in the last decade will know that the issue of stolen cars being exported through marine ports is not new. Unsurprisingly, the emphasis has often been on the border aspect of the issue, yet marine ports where stolen vehicles are sent to be exported are the last step in the process. More needs to be done to prevent vehicles from being stolen or reaching the port in the first place, and we are glad to see that this seems to be the consensus that emerged from the recent summit on car thefts.
Regarding the border itself, in the last few weeks we've seen both the federal government and official opposition propose a number of solutions, some of which are to be commended, considering the fairly unreliable nature of the inspection system that's currently available to our officers. However, at the end of the day, no effort was made to find out from the officers who work on the front line what was required to facilitate their examinations. Had anyone asked the question, they would have been told that a lack of space is the primary factor impacting the volume of examinations that we can perform at the port of Montreal. While the union provided a short, last-minute brief prior to the summit on car thefts highlighting this, it's unclear if this has been taken into consideration by the minister, as we were not involved or asked to participate in the summit.
This is yet another example of what the Customs and Immigration Union has been flagging for a long time, that solutions to border problems must involve the officers who perform work at the border on a daily basis. Once again, we're seeing solutions either proposed by people who have never done the work or adopted under the advisement of individuals who have never done the work. This is truly unique within the realm of law enforcement, because senior officials in most other law enforcement agencies and organizations have at least some level of frontline experience. This is rarely—close to never—the case at the CBSA, the result being an unparalleled disconnect between the upper echelon and the front line.
In closing, I want to insist on the fact that all of this is not a new problem and that more could have been done much earlier on. While the issue of exported stolen vehicles does not rest solely on the shoulders of the CBSA, we should not be surprised that the agency is somewhat out of breath, given past policy decisions under the Conservative government's deficit reduction action plan back in 2014, where we saw our personnel slashed by about 1,100 officers, from which we're still trying to recover.
Under the current government, things haven't been much better. Little has been done to actively address this deficit in personnel, with the focus being instead on misguided ventures such as ArriveCAN, highlighting what can only be described as a desire to turn our borders into a grocery store self-serve checkout.
Ultimately, investment in personnel and people is paramount to the process. Even where personnel issues may not be the primary factor, such as at the port of Montreal, the ability of the agency to protect Canadians and adapt to new challenges rests on a properly staffed front line.
I thank you, and I look forward to your questions.
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Yes, I believe we need to consider what is available to us in terms of enforcement and the legislation.
Generally speaking, you're going to find people that are charged with possession of stolen property over $5,000 or theft over $5,000. These are the most common charges in auto theft, but they don't reflect the risk and the injury that it's causing to our communities.
What I would advocate for is, and in conversations with Crowns we always hear, that there should be federal legislation very similar to the Controlled Drugs and Substances Act, which would take some of those same concepts and legislate them very similarly to the way we do with illegal drugs.
The importation and exportation of stolen property or stolen autos, if federally legislated, would then have that jurisdiction attached to it. It would make it easier for the police sector to pursue and investigate that and really pursue the people responsible for it. That's the organized crime element behind it, which is benefiting from this issue.
Thank you to the witnesses for appearing before the committee. My questions are for the Peel police.
Deputy, it's nice to see you.
First of all, I obviously want to extend a big thank you to the Peel police for all the service they provide to the community.
I'll turn to the topic of auto theft. This is testimony from you, Deputy. Vehicle thefts in Peel have increased 118% over the last five years. In most regions, I think it's a double-digit increase, but in Peel it's a triple-digit increase.
Broken down by Mississauga's 11 wards.... Ward 5, which is actually home to Pearson airport, overlaps largely with my riding of Mississauga—Malton. This region saw the most auto thefts by far in 2023, with 1,030. Ward 5 accounted for 42.2% of all auto thefts that occurred in Mississauga. This is one ward of 11. The remaining 10 wards saw fewer than 200 auto thefts. There's really a focus in my region of Mississauga—Malton, unfortunately.
In your testimony and in some of your answers, you talked about the organized crime angle. One of my questions is about this. There's definitely been a recruitment of youth and young adults into organized crime to do these crimes. Youth accounted for 21 of the 49 people facing charges in 2023. This is actually a quote from you.
What is the Peel police doing to target this?
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This is why an approach that's not linear is important.
We're aware of the fact that some of our youth are being targeted by organized crime groups that would like to take advantage of the vulnerabilities in youth. We're engaging service providers, looking for opportunities to intervene before a youth decides to get involved in carjacking, and pulling the community around and making sure that the investigative projects we are doing are considerate of the fact that we need to engage the right organizations and the right people to support our youth, who are maybe lacking some of that support, which makes them vulnerable to organized crime. Those are just a few examples in terms of the social development, the preventative piece and how we're approaching our youth.
However, it's also really important that we balance that with the need to understand that there is an element in our community that is willing to be incredibly violent and has demonstrated the behaviour to do that. We had a carjacking this year in which an international student lost their life. That was associated with and attached to a young person. It's shocking.
What we're doing is balancing our strategy and trying to apply it in the most appropriate places. Save people when we can, but unfortunately, there are circumstances when it's travelled too far.
My thanks to the witnesses for joining us. I was particularly looking forward to speaking with Mr. Weber. As he mentioned, the Customs and Immigration Union could not be invited to the national summit that was held a few weeks ago, which is unfortunate. It is worthwhile to hear the views of Ms. O'Gorman and the organization, but I would also like to hear from the workers and find out what is happening on the ground. As you mentioned, these are front‑line workers.
Do you feel that finding solutions and putting resources in place to counter the scourge of car theft across the country is really a priority for CBSA? It's a pretty straightforward question.
Perhaps you could also clarify something that was circulating in the media. It was reported that, as of October 2023, there were only five officers at the Port of Montreal to inspect containers. That seems like very few considering the number of containers that leave the Port of Montreal every year.
Do you think that, in the current context, this is a priority for CBSA? Perhaps things have changed since the summit and since the situation has been receiving more media attention.
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The CBSA has a very difficult job on its hands in balancing priorities. When you look at what is being imported into Canada and what we, obviously, want to keep out, the CBSA has staffing constraints. Those numbers you just provided of five full-time officers is still five full-time officers. We have three officers on assignment, as well, who have been there for some time, so we're talking eight in total.
When I talk about staffing levels, we're short between 2,000 and 3,000 across the country. We have ports operating with half the number of officers they had 10 years ago. We don't see those numbers going up. We only have one college. We cannot graduate or train even up to 600 new officers per year, which isn't even covering attrition. We're having a really hard time. When I say we're desperately understaffed, we are desperately understaffed.
At the port of Montreal, specifically, other than staffing, the big issue is space. The facility in which we do the examinations has six parking spots. Once we find six stolen vehicles, we sometimes have to wait days for someone to come and take the vehicles away before we can inspect any more. With the officers working, we're looking at examining a maximum of about four containers a day, which could potentially hold eight cars.
We're really limited in terms of the space that's being allotted to exports. You have to understand that this facility is also where imports are examined. It's not only about not having enough people. Even if we wanted to expand it and add additional officers at the port of Montreal, specifically, there's really nowhere for them to do more examinations than they're currently doing.
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That's interesting, because when we hear about the amounts that have been—or will be—invested by the government, it's as if we are expecting that, magically, there will be more border services officers and that the entire problem will be solved. However, what you are saying is that, in fact, there is a lack of equipment, space and training. This information is based on an audit report that the agency itself recently published. I'll come back to that later.
I don't necessarily want to play politics, but I found it peculiar to hear my Conservative colleagues say that they felt there was an easy solution. They're proposing to buy 24 scanning devices that would inspect 154 containers per hour, or one million containers per year. In actual fact, the number of containers that leave the Port of Montreal each year is between 500,000 and 800,000 at most.
Were these figures pulled out of a hat? Is it realistic to think that 24 scanning devices will solve the problem? The Conservative Party mentioned 75 new officers, 30 of them at the Port of Montreal, and the fact that anything coming out of the port could be scanned, which would solve the problem. How realistic is that?
You also have to consider that cars that have not necessarily been stolen and that are intended for export could end up in containers. How can we sort all this out and propose serious solutions?
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Thanks very much, Mr. Chair.
It's a pleasure to be back at the public safety committee. I spent many years here. I was here when the cuts were made to the CBSA, and I can't resist saying, “I told you so.” When the Conservative government cut 1,100 jobs, we talked about the necessary impacts that we would see from that reduction in staffing. I'm sorry, but I can't resist saying that.
The other thing I, as a recovering criminal justice instructor, can never resist is when people talk about deterrence. We know that enforcement is the front line of deterrence. The car theft problem we have is not because a bunch of kids got up in the morning and decided to joyride. There's an organized effort here to make money out of car theft, and one of the ways that works is if the cars can be exported. While I get that police are the front line on car theft, if we can do something about the easy export, we'll reduce that market. Therefore, we can reduce the number of car thefts that are going on in this country.
My questions really are for Mr. Weber, and I thank him for being here today. I think there's no substitute for the people who actually do the work talking to us about how to improve that work. When you talk about the training, it's kind of a cart-and-horse situation here, as you've said to us. You said that we can't release frontline people to do the training, but that we don't do enough training to get more staff. In the union's opinion, where do we start with that?
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That's unfortunate. I would say that's a fix right there. It's changing your own policies, internally.
Thank you for that.
To the deputies, I know from experience that, early in your training.... We learned about the importance of crime prevention. I haven't been on Public Safety as long as Mr. Garrison has, but over the course of a number of years, I have sat on this committee. We did a study some years back on street checks, or what you would call in Ontario “carding”. We call them “street checks” out west. It was a big deal. It was something being removed as an opportunity for police on the ground to prevent crime or determine the identities of individuals involved in crime. We used them very effectively. I think other agencies have as well.
You talked about things police agencies can or should do to make a difference in prevention. Would something along those lines...? We talked about tools that could assist you in policing, besides more money and bodies. That's always a necessary tool. What do you think are tools that could help in the prevention of...? After they are stolen, in the justice system, we talk about all those things that can be fixed and should be fixed, such as legislation changes.
How do we prevent them from occurring in the first place, if you're just looking at it from a policing perspective and not the manufacturer's or the consumer's?
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Maybe I'll jump in quickly. Then Deputy Johnson can add on.
Prevention, absolutely, is crucial and critical to what we do. I see a policing opportunity from a prevention perspective in building awareness. Last year, the GTA services and Peel held the first auto summit for the GTA to discuss the issue. Then, on the heels of that, we began to promote and share the story with the community. Fast-forward a little less than a year later. Here we are having this conversation on a national level.
The awareness piece is crucial. What that has created for us is consumers looking at the vehicle differently. They're not just asking about comfort and performance statistics. They're also asking about security possibilities. What can that vehicle do to prevent itself from being stolen? The reality is that it's the second-largest purchase a person will make in their life, aside from a house. People are very aware, particularly here in the GTA, that those vehicles and investments are at risk. They're engaging with different types of things.
The awareness is there. I think that's crucial to how we prevent cars from being stolen. It's through consumer action.
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Thank you very much, Mr. Chair.
I'll begin with Mr. Weber.
First of all, let me thank you and your members for the steadfast work you do, day in and day out, to protect Canadians. I have the honour, as you may know, of hosting the CBSA training facility in the town of Rigaud, which is situated in my community of Vaudreuil—Soulanges. As you said, it has a 600-officer annual capacity.
Over the years, Mr. Weber, I've made a point of visiting them and learning more about why they decided to apply for the CBSA. One of the underlying factors in deciding to apply was their wanting to be part of a family that went to work every single day to better the lives of Canadians, keep Canadians safe and directly combat organized criminal activity. Their work, as I'm sure you would agree, cannot be overstated. The decisions we make as a federal government to support or not support their work are consequential.
It came as a shock to me and my community, as you can imagine, when the previous Conservative government cut 1,100 of their jobs. It didn't just have effects on those who lost their jobs. It had an effect on the mental health of all the other officers, knowing they lost such a huge portion of their extended family. In fact, in 2012, the former president of your union, Jean-Pierre Fortin, commented on the job cuts at the CBSA. He said that the elimination of those jobs represented a “direct attack to our national security and public safety.”
These proposed budget cuts would have a direct and real impact on Canadians and our communities across the country: more child pornography entering the country, more weapons, illegal drugs, will pass through our borders, not to mention terrorists, and sexual predators and hardened criminals....
For the better understanding of Canadians watching, and in layman's terms, can you comment on your former colleague's quote about how CBSA cuts by the previous Conservative government affected your members and the inflow and outflow of contraband and stolen goods?
Mr. Weber, I want to come back to the responsibility of ports, particularly the Port of Montreal, as well as the responsibility of customs officers. We hear that the ports have their own security officers on their territory, but that they can't open the sealed containers. The police do not patrol the ports, but they can open the containers when they have a warrant and therefore have a serious reason to believe that they may contain a stolen item, for example.
The co-operation between all these people seems a little difficult. There may be a lack of communication. I don't know how that co-operation or information sharing could be improved. Do you have any comments on that?
I'm also wondering about the customs procedure. Should it be changed? As you mentioned a little earlier, we pay more attention to what enters the country than to what leaves it. That seems quite normal to me, but CBSA is responsible for transit across the country. Should that be changed?
You may say that you don't have the necessary resources, but let's suppose that we live in an ideal world and that we have all the officers we need to do the job. Should we change the mandate of CBSA slightly to pay particular attention to the scourge of car theft, or do we not want to go down that road? What do you think?
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My understanding is that some of the money that's been earmarked is going toward collaborative groups, working with other police agencies. As to how that works specifically at the port of Montreal, my understanding is that for the most part there is great collaboration between the different agencies that are there. Obviously, again, our issue in terms of examinations is space.
If you're talking about looking at the Customs Act and procedurally how we operate, an ability to patrol between ports of entry would be really big for the agency to be doing. Right now, we have the authority to do our job only at ports of entry. When it comes to the border with the United States and anywhere in between, really, in large part we're not really too sure most often what's going on there. When we're looking at keeping things out of the country that we don't want to get in—guns, fentanyl, all those things—that's another big gap.
As I mentioned, there's rail, and we see marine. There's a lot. In an ideal universe, like you said, we would have enough personnel to do all this work. That's something that I think we should be looking at, absolutely.
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I don't have exact numbers available. We could get those for you.
Things are definitely getting busier. Anecdotally, I hear that from officers. As the numbers go down, obviously, the lineups get longer. We all saw what went on during the pandemic and what happened with ArriveCAN with some of the lineups at certain times of the year. You're arriving at major airports, and you're waiting an hour or two to get through customs.
Again, what does that do to our officers? As was mentioned earlier, they are dedicated, they want to do a good job and they want to protect Canada. That's why they get into this. For them to do that, under the circumstances they're currently working under with those short staffing levels, it is often really devastating for them to not be able to really do the job they were hired to do.