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Prime Minister Stephen Harper unveiled sweeping changes Tuesday that will vastly expand Ottawa's power to recall unsafe toys, food and drugs from the market, issue major fines and crack down on firms selling dangerous goods.

“Canadians rightly expect their national government to police the safety of consumer products,” Mr. Harper said at a press conference in Ottawa.

“And the fact of the matter is that the system could be significantly better.”

The new legislation increases fines for those who manufacture or distribute unsafe drugs from $5,000 to $5 million.

Under the changes, hospitals will be mandated to report adverse reactions to drugs, but the responsibility will not extend to doctors and pharmacists.

“We'll be working with the provinces to have a mandatory adverse reaction system in place,” said Health Minister Tony Clement.

Industry now faces increased requirements to inform the government when consumers are injured or experience health problems after using a product, such as when a child swallows a small part or cosmetics cause a rash.

The sweeping package of product-safety changes is being introduced after recalls of everything from tainted pet food and E. coli in spinach to toys containing lead have created serious public concern over the quality of goods for sale in Canada.

The Prime Minister, who could face an election soon, took the unusual step of making the announcement himself to regain control of the agenda and generate positive headlines after seeing his government dogged for weeks by problems and missteps.

The bill includes updates to the Food and Drugs Act, and the creation of a Canadian Consumer Product Safety Act, designed to give Ottawa the power to keep potentially unsafe products off the shelves. Previously, the government was only able to order recalls of food but that power now covers all consumer products.The government can also fine companies up to $5-million if they sell problem products.

“To these outfits I say ‘be warned,'” Mr. Harper said. “You will face severe punishment if you willfully expose Canadians to danger.”

The announcement was made at the annual meeting of the Canadian Consumer Specialty Products Association, which represents companies that sell household cleaners, detergents, air fresheners and other products.

Ottawa decided last August to overhaul the food and consumer product safety laws after several major recalls.

The Conservative government vowed the review would be completed in weeks, but it lasted nearly eight months.

So far this year, companies in Canada have issued 37 voluntary consumer product recalls, including several children's products with excessive amounts of lead or containing small parts that were a choking hazard.

Winnipeg MP Judy Wasylycia-Leis, the New Democratic Party's health critic, is not optimistic that consumers will be safer.

“I think we're going to see an act that uses the words modernization as a way to hide its real intentions, which is to reduce the responsibility of government for ensuring that drugs, food and consumer products are as safe as possible,” she said.

“Their first priority is to make industry responsible, which is fine as long as government is still there with the final say. But if it's to replace government responsibility entirely, you're really having the fox in charge of the henhouse.”

Many consumer groups say they were shut out of the consultation process. Several advocacy groups were unaware of the government's plan to announce the legislative changes today.

“We haven't had any confirmation that the improvements we're looking for will be in the act or acts,” said Bruce Cran, president of the Consumers' Association of Canada. “I welcome the fact that they're doing something. I just hope that their need for speed doesn't outweigh the need to get it right.”

Government officials have unveiled several initiatives in recent months as part of the larger package of changes to consumer product and food safety laws. Last month, the government quietly launched the Food and Drugs Act Liaison Office, a new branch of Health Canada responsible for handling consumer complaints and conducting investigations of impropriety. The government also launched a website last year to improve communication about food and product recalls.

With reports from Carly Weeks, Gloria Galloway and Jennifer MacMillan