Canada seeks recall powers akin to U.S.

TORONTO (Bloomberg) -- Canada’s Transport Minister Lisa Raitt is introducing a law that would give her the authority to force companies to recall faulty vehicles.

Raitt made the announcement Monday after the government’s budget, delivered in April, said Canada would amend its Motor Vehicle Safety Act to give the Minister of Transport “the power to order a recall, and to levy monetary penalties.”

The proposed law would give her that authority, as well as the power to order carmakers to fix recalled vehicles, pay for repairs and ensure new vehicles are fixed in the event of a recall before being sold, Raitt’s office said in a written statement Monday. The bill would need to be rushed through both Canada’s House of Commons and Senate to become law before the fall election, however, and would die if not passed by both chambers this month.

The law, if passed, would further align Canada’s vehicle recall laws with those of the U.S., Raitt’s office said.

The change was not among those included in the omnibus budget bill formally released by Prime Minister Stephen Harper’s Conservative government last month, one expected to become law before the next election.

The government has warned that other bills currently advancing in the House of Commons and Senate may not be passed in time to become law by the election, scheduled for October 19.