Honourable senators, I’m pleased to speak to Bill S-2, the Strengthening Motor Vehicle Safety for Canadians Act, which passed third reading unanimously in the other place on January 31, 2017.

Over the past few decades Canada has experienced significant growth in population and the number of licensed drivers, yet over the same period we’ve seen tremendous improvements in road safety with rates of both fatalities and serious injuries now approximately two thirds lower than compared to the mid-1970s. These improvements were achieved through higher vehicle safety due to innovation, higher safety standards, as well as government policies such as those surrounding impaired driving.

However, in recent years we’ve seen a rise in the number of fatalities associated with new types of impaired driving, such as distracted driving behaviour, which accounts for 22 percent of fatal collisions.

Innovation in this sector, such as the introduction of connected and automated vehicles, needs to be supported by strong and flexible legislation to protect the safety of Canadians. I note that the Transportation and Communications Committee has recently produced an important study on this subject which the government welcomes and will be reviewing closely. That is why this legislation is an important step in bringing the Motor Vehicle Safety Act into the 21st century and provides the minister as well as the industry with the flexibility to foster and regulate the early adoption of emerging innovative technologies in Canada.

This bill would also provide the Minister of Transport with the ability to order a company to correct a defect at no cost to the consumer as well as establish an administrative monetary penalty regime.

As honourable senators will recall, this chamber passed Bill S-2 on February 2, 2017, last year, with amendments to include safeguards for Canada’s dealers in the event of an order by the Minister of Transport to accompany, to correct the defect or non-compliance, or an order to a company to pay the costs of a safety defect repair.

These amendments, introduced at committee by our colleague Senator Greene, were in response to concerns raised by the Canadian motor vehicle dealers regarding the financial protections afforded them under the bill. I would like to express my appreciation to Senator Greene for his work on this issue as well as the important contributions of the Standing Senate Committee on Transport and Communications.

Recognizing the importance of addressing stakeholder concerns, Transport Canada has worked closely with the Canadian Automobile Dealers Association in this regard. Based on this collaborative work, a further amendment was introduced in the other place and we now have legislation that further clarifies the rights and protections of dealers and recognizes the existing commercial relationship between automotive companies and dealers.

I’m pleased to explain these new amendments to Bill S-2, which in essence replaces the original amendment that was adopted in this chamber while still addressing its fundamental objectives.

First, it has been clarified that automobile dealers would benefit from the same protections afforded to Canadian consumers when vehicles are subject to orders of correction and the payment of costs. For example, this means that dealers would also be eligible for repayments of costs of correcting a defect if the automotive companies are ordered to do so by the minister.

(1520)

In addition, the amendments clarify that agreements between automotive companies and dealers would not be impeded by recall orders. This means that recall orders would not affect existing contracts between automotive companies and dealers.

Finally, it is important to note that the orders would not limit a person, including a dealer, from exercising any other right or remedy available to them in law. This means that, if a person chooses to do so, they could take an automotive company to court, regardless of an existing order.

The Canadian Automobile Dealers Association is content that their concerns have been addressed and, in fact, I would like to read into the record a statement from Mr. John White, the president and CEO of the association:

On behalf of more than 3,200 new vehicle dealers across Canada, we would like to thank the Senate for the leadership it has shown on Bill S-2, an important piece of legislation for Canadian consumers and for the automobile industry. The process that has brought us to where we are today on this Bill demonstrates how careful collaboration in both houses of Parliament can improve legislation for all Canadians.

CADA supports Bill S-2 as amended by the House of Commons.

In 2016, the Senate amendment to S-2 sought to accomplish several objectives. They were:

•Ensuring no new obligations for the recall process for vehicle dealers under the Act;

•Ensuring manufacturers continued to be responsible for the recall process;

•Extending to dealers a vehicle buyback provision at the invoice price in the event of a long-lasting recall for which a fix is not immediately available, and;

•Compelling manufacturers to reimburse dealers for carrying costs for inventory in the event of long-lasting recalls which render dealer inventory unsellable for extended periods of time.

The amendment passed by the House of Commons accomplishes most of these objectives, and as such CADA supports S-2 in its current version, as passed by the House of Commons.

We hope that this important consumer and road safety bill becomes law in a timely manner.

The letter goes on to say that:

CADA is happy to participate in any Senate hearings that may take place on S-2 when it returns to that chamber before what we hope is its eventual passage into law.

CADA and more than 3,200 new vehicle dealers across Canada would like to thank all members of the Senate and the House of Commons for the instructive and positive process that has brought us to this point on S-2. Dealers from all over Canada engaged on this important issue for the auto sector and for consumers, and as such, we have an improved version of the bill we hope becomes law very soon.

I think this is a very good example, senators, of how both houses of Parliament can work together in a complementary fashion.

Honourable senators, to conclude, I ask that we accept Bill S-2, the Strengthening Motor Vehicle Safety for Canadians Bill, in its current form, by concurring with a message from the other place so that this important bill can begin to improve road safety for all Canadians and that the guarantees it provides to consumers and dealers can be in place in a timely fashion.

I thank you for your consideration.