Canada’s Transport Minister seeking NHTSA-like powers image

Canada’s Transport Minister Lisa Raitt is currently working to showcase a bill that would allow her Ministry to force automakers to order recalls and also be fined, much like US’s auto safety regulator, the NHTSA.

The law under proposal would allow Raitt have the authority to force auto companies to resolve the issues with the recalled models, pay themselves for the repairs and make sure the new vehicles don’t get sold to customers with the same flaw. “The decision on whether or not a recall should happen should not be left to industry,” commented the minister recently in Ottawa. “We fundamentally believe that there should be a role for government in this case.” If the bill gets approved, Raitt and her ministry would be allowed to impose uncapped cash fines on the automakers under certain conditions. The text of the law is scheduled to be publicly available in the following days, as it is pending modifications to the Motor Safety Vehicle Safety Act – a promise made by the Conservative government’s April budget, according to Raitt. The bill would also be expedited afterwards through the House of Commons and Senate to become law as the Canadian fall elections are drawing near.

The new modifications should address “some problems that we have found in the past years in dealing with” safety campaigns involving both General Motors and Japan’s Takata Corp. and should also further mirror Canada’s safety rules with those in the United States, where regulators have numerous measures given by law to handle properly the recalls.

Via Bloomberg