Good morning, Mr. Chair, esteemed members of the committee and my fellow invited guests.

The Canadian Vehicle Exporter's Association would like to thank you for the invitation to appear today on the critical topic of vehicle theft in Canada. I would like to start with a quote:

Police have put the brakes on auto theft in the Greater Toronto Area and the effect is so dramatic that [the] Toronto police chief and insurance investigators are taking notice.

This quote is one that every person in Canada hopes to see in the media in the very near future. However, this quote was in fact first given nearly 12 years ago in a 2012 article entitled, “How auto theft became a dying criminal art in Toronto”.

The implication from this article is, of course, that prior to 2012 Canada was dealing with a substantial auto theft problem. However, with certain efforts, we were seemingly able to turn the tide in the battle during that time period. This begs the question: What is Canada's history of vehicle theft, what policies and procedures led to such a dramatic reduction in the past, what has led to our recent surge in vehicle theft and how can we apply our past successes to the problems of today?

Where are we today? The most relevant metric to gauge vehicle theft trends is to compare thefts against the actual number of vehicles registered on Canadian roads. In 2022, this theft rate equated to approximately 404 thefts per 100,000 registered vehicles. Where were we in the past? If we go back 22 years to 2001, we saw a theft rate of 931 per 100,000. Auto theft rates today are more than 50% lower than they were 22 years ago.

Please don't get me wrong: This overview is in no way meant to discount the very real problem that exists now. On a daily basis, we see media reports of auto theft recently transitioning from property crime to a crime of violence in the form of break and enters and armed carjackings. Technology in the form of residential cameras allows us to instantly see with our own eyes masked perpetrators standing on our doorsteps at 3 a.m. or brandishing a firearm in the direction of an unsuspecting, terrified victim. The monetary cost is of course staggeringly large, with all estimates agreeing on a value well north of $1 billion in damages.

Rather, this overview is meant to draw attention to our past successes in an attempt to understand the root causes of the issue so that we can develop well-thought-out solutions in today's current fight. In our longer submission to the committee, the CVEA has compiled a number of historical events as a reference on how success can be achieved.

Chief among these is the recent surge in organized crime. A recent report by Criminal Intelligence Service Canada stated that in just one year, between 2022 and 2023, they assessed there was a 62% increase in the number of organized criminal groups operating in the stolen vehicle market. It cannot be a coincidence that this increase in organized crime coincides with the timing of the recent surge in vehicle theft.

This is leaving a stain on Canada's reputation as a trading partner. Interpol now describes Canada as a source nation for stolen vehicles. This should not sit well with any of us. Canada is a nation based on trade. Our reputation on the international stage is paramount to our collective success. In the automotive industry, for well over 40 years, Canada has been known around the world as the most trusted nation to do business with and to source vehicles from for the international market. When organized crime threatens Canadian citizens and businesses, it is incumbent upon the government to root out organized crime so that Canada can regain its rightful place as a leader in trusted international trade.

Last, the CVEA would like to commend the government for committing $28 million to the CBSA in its efforts to modernize its intelligence-gathering systems to root out illicit goods, while ensuring that the flow of regular trade is not unintentionally adversely affected.

Thank you for your time.

The CVEA looks forward to today's discussion and the ongoing work that I'm sure we are all committed to.