Location: National/TRAN
Issue/Source: Bill C-33 tabled on November 17, 2022
Date: April 13, 2023
Suggested Responses
- Canada’s transportation system is the backbone of the Canadian economy, and is responsible for the safe, secure, and efficient transportation of goods.
- Bill C-33, Strengthening the Port System and Railway Safety in Canada Act, recognizes the importance of Canada Port Authorities effectively operating in an increasingly complex environment.
- The proposed amendments would help reduce port congestion and improve the fluidity of supply chains, while ensuring environmental considerations are integrated into port authority planning and decision-making.
- In addition, the proposed reporting requirements seek to ensure port authorities are meeting high standards of transparency and accountability to Canadians and continue structured engagement with Indigenous groups and local communities.
- To ensure Canada Port Authorities have the right leadership in-place to manage these strategic assets, Bill C-33 seeks to right-size the composition of boards, attract needed talent from new sources and provide the authority to designate the Chairperson, in consultation with the Board.
- Bill C-33 represents a once in a generation reform aimed at ensuring our ports continue to support Canada’s sustainable development in a transparent manner.
Responsive Points
Environmental Measures and Net Zero
- Ports need to play an active part in decarbonizing the marine sector in Canada. Bill C-33 would better integrate environmental considerations into planning and decision-making and result in enhanced transparency on environmental performance.
- Measures contained in the bill would support Canada's ambitious climate change commitments including exceeding the Paris Climate target by achieving 40 to 45 per cent emission reductions by 2030 and getting to net-zero by 2050.
Reporting and Administrative Burden
- Reporting proposed in Bill C-33 seeks to ensure that port authorities are consistent in their reporting and are meeting high standards of transparency and accountability.
- Transport Canada will continue to engage with Canada Port Authorities on the potential financial impact of Bill C-33 on smaller ports.
Governance
- To ensure Canada Port Authorities have the right leadership in-place to manage these strategic assets, Bill C-33 seeks to right-size the composition of boards, attract needed talent from new sources and provide the authority to designate the Chairperson, in consultation with the Board.
Labour Representation on Boards
- The voices of workers are important to the success of Canada Port Authorities, and there are opportunities in the current framework for labour representatives to be nominated to Boards of Directors.
- While directors are expected to have expertise in port-related fields, they cannot have direct or apparent conflicts of interest and have a fiduciary duty to make decisions in the best interests of the port authority.
Railway Policing
- Bill C-33 introduces new measures to strengthen the security posture of the railway system by introducing security management systems for companies to put in place and new prohibitions to deter individual interference.
- On June 2, 2022, the Standing Committee on Transport, Infrastructure and Communities (TRAN) Report, “Railway Safety and the Effects of Railway Operations on the Surrounding Communities in Which they Operate”, recommended that the Railway Safety Act should be amended to remove the potential conflict of interest perceived to be stemming from the involvement of private railway police in investigations involving their own companies.
- In response, Transport Canada committed to engage with experts in police governance who have the knowledge and expertise on Canada’s railway policing model to identify possible improvements.
- Transport Canada is working to have a third party provide initial insights by the end of this year, thus informing a basis from which appropriate next steps may be determined.
Background Information
- Bill C-33, An Act to amend the Customs Act, the Railway Safety Act, the Transportation of Dangerous Goods Act, 1992, the Marine Transportation Security Act, the Canada Transportation Act and the Canada Marine Act and to make a consequential amendment to another Act, was introduced in the House of Commons on November 17, 2022, with a date for second reading to be scheduled.
- Proposed changes to the Railway Safety Act stem directly from the 2018 Railway Safety Act Review and the recommendations that were put forward. This review was conducted over the course of a year by an independent panel, which held a series of roundtables and sought input from railway companies, municipalities, provinces, employees, and labour organizations.
- During the 2018 process, roundtable discussions focused on the broader suite of recommendations being examined by the panel, as opposed to specifically the legislative amendments.
- Transport Canada recognizes that a more robust process to consultation is needed going forward, and has already taken concrete actions to build more meaningful relationships with Indigenous communities and organizations, as part of its rail safety and security programs. Going forward, Transport Canada will develop an Engagement Plan in order to facilitate ongoing engagement throughout the implementation of the amendments.
- Changes proposed to the Railway Safety Act will allow Transport Canada to engage with Indigenous organizations with respect to rules that may intersect with their interests or where they are likely to be affected by the implementation of a rule.