I think grizzled answered that in post #5.
Let me make the point simply and clearly: A philosophy of "SMS will increase safety levels" when combined with an under-resourced regulator, and a weak statutory mandate for that regulator, WILL result in a degradation of safety levels.
The ICAO does
not recommend a reduction of traditional oversight. SMS is supposed to be
an additional layer. But that is not how Transport Canada has gone about implementation.