3RD REPORT OF THE STANDING COMMITTEE ON TRANSPORT (RECOMMENDATIONS)

APPENDIX A

SUMMARY OF RECOMMENDATIONS

RECOMMENDATION 1

The federal government continue to have direct responsibility for a national ports system.

RECOMMENDATION 2

The Canada Ports Corporation should be dissolved.

RECOMMENDATION 3

A new National Marine Transportation Act be drafted to repeal the Canada Ports Act, the Harbour Commissions Act(s), and the Public Harbours and Port Facilities Act, and to establish a new national commercial ports system based upon the following essential elements:

the objectives of the national ports policy should be retained as the mandate set out for the ports is just as relevant today as it was in 1983;
ports should be designated as federal agencies similar to Harbour Commissions;
ports should be accountable to the Minister of Transport through a ports desk or secretariat in Transport Canada;
ports should be financially self-sufficient which means they must be able to cover all operating and capital costs;
ports should submit capital budgets, corporate plans and audits to the Minister annually;
blanket approval should be given for all projects, works and other activities contained in the approved capital budgets and corporate plans;
ports should have full delegation of authority to make contracts, leases, and to acquire or dispose of land;
ports should have full pricing flexibility for the setting of tariffs and fees;
ports should have expanded authority to borrow money; and
annual reports should be submitted to the Minister and provision made for performance-based special audits or examinations at the discretion of the Minister.

RECOMMENDATION 4

The new legislation require the ports to pay annual dividends and include a provision which will protect the ports from further ad hoc demands for cash contributions to service the government's debt.

RECOMMENDATION 5

The new legislation provide that individual ports have responsibility for port policing and security.

RECOMMENDATION 6A

Under the new national ports system, to replace the current regime of grants in lieu of municipal taxes, individual ports should negotiate with their respective municipalities appropriate fees for the services they use.

RECOMMENDATION 6B

The Committee urges the federal government, the provinces and the municipalities to conduct a comprehensive review of assessment practices and all other government imposed taxes for port infrastructure to ensure that the level of taxation does not endanger the viability and competitiveness of our ports.

RECOMMENDATION 7

Provisions should be made in the new legislation, for the appointment of the majority of the members of port Boards by the federal government on the basis of consultation and a broad representation of interests; for the minority to be appointed by municipalities and the private sector; for minimum and maximum size, and for a set of comprehensive public accountability principles similar to those applied to the Canadian Airport Authorities.

RECOMMENDATION 8

The Transport Canada Group of Harbours and Ports and harbours should remain under the control and management of the Minister of Transport and not be included in the merger of the Coast Guard with Fisheries and Oceans.

RECOMMENDATION 9

The new ports desk/secretariat be given the mandate to classify the CPC Divisional Ports and the Transport Canada Ports and Harbours Group into commercial and non-commercial based upon financial self-sufficiency criteria established under the new Act; and the non-commercial ports should be further classified on the basis of those where there is a clearly defined federal government role such as servicing remote communities and ferry services, and where there is no justification for further federal involvement or responsibility, the ports should be subject, either to divestiture to provinces, municipalities, and/or the private sector, or to closure when there is no possibility of divestiture.

RECOMMENDATION 10

The new Act should provide for at least a five-year period for adjustment to, and implementation of, the new regime for non-commercial ports, and for the creation of a Ports Capital Assistance Program to assist non-commercial ports that have the potential to become self-sufficient and provide long-term capital funding to those non-commercial ports which have been divested.

RECOMMENDATION 11

Continued subsidization of a non-commercial port, which would otherwise close, for social and/or economic development objectives should be provided from regional economic development program funds.

RECOMMENDATION 12

The new Act should provide that, in the event of port closure, the federal government is responsible for taking care of the redundant facilities and returning the site as near as possible to its natural state.

RECOMMENDATION 13

Recognizing that there must be broad consultations based on the Committee's report and upon completion of the consultation process, the Minister should proceed as rapidly as possible to introduce legislation and refer it to this Committee for consideration after first reading.

RECOMMENDATION 14

A Commission of Inquiry be immediately established by the federal government to do a comprehensive review of labour-management relations in the port sector, and to report within a year on what changes are required to ensure stability and competitiveness at our major ports.

RECOMMENDATION 15

The new national marine transportation act provide for the repeal of the Pilotage Act and the dissolution of the Pilotage Authorities, and replace them with a Pilotage Desk/Secretariat which would regulate pilotage in Canada.

RECOMMENDATION 16

The new national marine transportation act provide for the commercialization of pilotage services in Canada.

RECOMMENDATION 17

The new Pilotage Secretariat undertake an immediate review of all compulsory pilotage areas to determine if they are still required for safety of navigation and the protection of the environment; and also develop a uniform set of criteria for the granting of exemptions from compulsory pilotage.

RECOMMENDATION 18

The new national marine transportation act make provision for a final offer selection mechanism for the settlement of all disputes between pilots and consumers of the service.

RECOMMENDATION 19

The new national marine transportation act include provisions to:

discontinue the St. Lawrence Seaway Authority through repeal of the St. Lawrence Seaway Authority Act;
establish a financially self-sufficient, not-for-profit corporation to administer the Seaway, including the operation of locks, setting of tolls, and routine maintenance;
relieve the new operating corporation of all non-marine responsibilities such as bridges and tunnels; and
recognize that the federal government will be responsible for the capital costs of all non-routine maintenance and rehabilitation projects to maintain the safety and integrity of the Seaway.

RECOMMENDATION 20

The new national marine transportation act provide for a final offer selection mechanism for the settlement of all disputes between the new Not-For-Profit Seaway Corporation and its employees.

RECOMMENDATION 21

The commercialization of the Canadian section of the Seaway should proceed as quickly as possible, and once this has been achieved the federal government should develop a proposal for the creation of a binational agency to operate the Seaway and open discussions with the U.S. government on this matter, the elimination of tolls, and a more equitable sharing of Seaway costs.

RECOMMENDATION 22

In order to ensure the long-term viability of the Seaway, the federal government should give serious consideration to the development of an incentive program to stimulate new construction and refitting of Canadian and foreign flag Seaway-size ships based on the essential condition that the work is done in Canadian shipyards.

RECOMMENDATION 23

No national cost recovery program should be implemented until the CG has clearly identified its costs for services, the future levels required, and demonstrated it has its costs under control and down to the lowest-cost operation possible.

RECOMMENDATION 24

The Committee endorses the merger of the fleet of the Coast Guard with that of Fisheries and Oceans on the condition that it becomes a more cost-efficient operation and that the savings are translated into real savings for the users.

RECOMMENDATION 25

The Coast Guard and users proceed jointly as rapidly as possible to reduce the number of aids to navigation through the introduction of new navigation technology and equipment and then consider commercialization of the remainder which would be the essential system.

RECOMMENDATION 26

There should be cost recovery for dredging where the commercial users can be clearly identified and dredging for channel approaches and within port areas should be the responsibility of the commercial ports.

RECOMMENDATION 27

Based upon the introduction of new navigation technology and equipment, the Coast Guard and users work together to rationalize vessel traffic services and consideration be given to their commercialization, or transfer to the ports.

RECOMMENDATION 28

No cost recovery program be implemented for icebreaking unless the costs can be attributed in a fair and equitable way to commercial users and for what has been done in the public interest.

RECOMMENDATION 29

If cost recovery can be introduced for icebreaking services, the costing formula should be based on the ice-strength classification of the ship, and incentives through reduced rates and rebates to encourage the use of safer ships.

RECOMMENDATION 30

Search and rescue services should be treated as essential and no cost recovery program applied.

RECOMMENDATION 31

There must be full and open consultation on the development and implementation of any national cost recovery program for marine services and the Marine Advisory Board should play a pivotal role in the process.

RECOMMENDATION 32

The federal government should continue to have regulatory responsibility for recreational boating in Canada and not delegate it to the provinces.

RECOMMENDATION 33

The federal government develop, as quickly as possible, a modern, comprehensive, national licensing system for recreational boating, the administration of which should be on a full cost recovery basis.