CAA Comments in Support of Bill S-2, An Act to amend the Motor Vehicle Safety Act and to make a consequential amendment to another Act
Appearance before the Senate Standing Committee on Transport and Communications
November 22, 2016
Good morning. Let me begin by thanking the Senate Standing Committee on Transport and Communications for inviting the Canadian Automobile Association – CAA – to join you today to comment on Bill S-2, the Strengthening Motor Vehicle Safety for Canadians Act. I will begin my remarks by providing a little bit of background on our organization that some of you may know better than others.
Founded in 1913 as a non-profit organization, CAA today is a federation of nine clubs providing more than 6.2 million Members coast-to-coast with emergency roadside services, automotive and travel services, member savings and comprehensive insurance services. CAA has also, since the beginning, advocated on issues of concern to its Members, including road safety, the environment, mobility, infrastructure and consumer protection.
From CAA’s earliest days pushing for stop signs, to public education about the importance of seat belts and air bags, to campaigns against impaired and distracted driving that continue today, CAA has been at the forefront of road safety advocacy for nearly a century.
Across Canada, approximately one in four adult drivers in every province is a CAA Member. We are one of Canada’s most trusted and largest consumer-based organizations, offering travellers and decision-makers key information they need about issues that matter to them.
Our comments today on vehicle safety recalls are aimed at ensuring that consumers are safe and treated fairly, and that repairs are offered by manufacturers in a timely manner.
In the United States, the National Highway Traffic Safety Administration (NHTSA) has the authority to require manufacturers to recall vehicles that have safety-related defects or do not meet Federal safety standards. Since enacted in 1966, more than 390 million cars, trucks, buses, recreational vehicles, motorcycles, and mopeds, as well as 46 million tires, 66 million pieces of motor vehicle equipment, and 42 million child safety seats have been recalled to correct safety defects.
Here in Canada, CAA believes that, for the owners of the nearly 24 million light vehicles on the road today, Bill S-2, the Strengthening Motor Vehicle Safety for Canadians Act, is a positive step that strengthens the enforcement and compliance regime to further protect the safety of Canadians. As drafted, we are also pleased to see the Minister of Transport would be provided with the authority to order companies to correct a defect or non-compliance and be given the ability to penalize companies for offences committed under the Act.
While most manufacturers live up to the high standards we have set for Canadian vehicles in order to make our roads among the safest in the world, the fact remains that even as we speak, Transport Canada has 17 active defect investigations under way. There are instances where government intervention may not only be useful but could be necessary.
For example, on November 10th of this year Transport Canada announced that it had made “a preliminary determination that there is a safety defect” involving brakes on 2011 and 2012 F-150 trucks equipped with a 3.5L EcoBoost engine. The department has received over 100 complaints on the issue. In testimony before this committee last week, Transport Minister Marc Garneau said the government contacted Ford and is disappointed that the automaker disagrees with its assessment. He further pointed out that under current legislation, the effective result is a stalemate. This is not good enough. S-2 will increase the tools available to the Minister to ensure Canadian’s safety.
Today, the strongest measure Transport Canada can take when dealing with vehicles it believes are a hazard to Canadians is to force the issuance of a notice of defect, which requires a manufacturer to notify owners that their cars are unsafe. That is it. The government does not have the power to force a manufacturer to order a recall. This makes the current Canadian system a veritable – if not literal – paper tiger.
Bill S-2 will give the minister the authority to order a company to issue a recall, make companies repair a recalled vehicle at no cost to the consumer, and prevent new vehicles from being sold in Canada until they are repaired. This matches similar legislation that exists in the U.S., finally leveling the playing field for Canadian consumers.
In fact, today, Transport Canada’s website hosts information about vehicle recalls and encourages consumers to address their vehicle recall as soon as possible. Bill S-2 is a necessary tool for enforcement when handling vehicle recall cases where the Minister deems that intervention is necessary, and provides positive added protection for consumers.
For too long, Canadian consumer protection has taken a back seat to the U.S. In our view, S-2, while not perfect, goes a long way towards rebalancing the situation, and is a solid advance for Canadian consumers.
– END –