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Vol. 140, No. 40 — October 7, 2006 Regulations Amending the Laurentian Pilotage Tariff RegulationsStatutory authority Pilotage Act Sponsoring agency Laurentian Pilotage Authority REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Description The Laurentian Pilotage Authority (the Authority) is responsible for administering, in the interest of safety, an efficient pilotage service within Canadian waters in and around the province of Quebec, north of the northern entrance to the Saint-Lambert Lock, except the waters of Chaleur Bay, south of Cap-d'Espoir. The Authority also prescribes tariffs of pilotage charges that are fair, reasonable and sufficient to permit the Authority to operate on a self-sustaining financial basis. The proposed tariff increase for 2007 is 4.5%. This increase is necessary to help the Authority become financially self-sustaining, after two years of deficits exceeding $3 million in 2004 and 2005, and an operational loss before accounting adjustment that will be lower but still significant in 2006. The current loss is primarily due to the delay in implementing the 2006 tariff increase. The financial loss resulting from this delay must be recovered in 2007; it is an amount of $1 million which is 1.45% of the projected increase for this year. The recurring increase in pilotage corporation fees also requires an increase that corresponds with the consumer price index, which is about 2.5%. Agreements with pilotage service suppliers to compensate for the tariff length ceiling requires a 0.48% increase. The significant increase in marine traffic resulted in increased expenses for the Authority. The need to recruit more apprentices resulted in a tariff increase of 0.59%. An additional 0.73% will be paid to the Pilotes du Saint-Laurent central inc. because the pilots' workload will be well above the average of 120 assignments. Alternatives The Authority's objective is to provide safe and efficient pilotage services at the minimum cost. To do this, it once again reduced its administrative and operational expenses by 0.25%. It also successfully froze costs associated with pilot boats in Québec City and Sorel. In addition, some projects were postponed, including the creation of a $2 million reserve. Despite these efforts, the proposed tariff increase is still required to cover the costs of service contracts with the two pilot corporations and the collective agreement with pilots employed in the Port of Montreal. These commitments account for about 84% of the Authority's expenditures. Since the Authority is in a deficit situation, a status quo position is not an acceptable option and it is necessary to increase tariffs to reflect the actual costs of providing pilotage services. Benefits and costs The 4.5% tariff increase will generate approximately $2.71 million for 2007. For the second consecutive year, the Authority's deficit exceeded $3 million in 2005. As of December 31, 2005, the accumulated deficit was $10.2 million, and the working capital was negative $7.4 million. If it does not address its financial situation, the Authority may find it impossible to fulfill its mandate. Furthermore, the Auditor General has brought the Authority's accumulated deficit to the attention of the Government of Canada. The proposed tariff change will result in an average fee increase of $110 for each pilotage assignment. In accordance with the 1999 Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals and the Transport Canada Policy Statement on Strategic Environmental Assessment, a strategic environmental assessment (SEA) of this proposal was conducted, in the form of a preliminary scan. The SEA concluded that the proposal does not have any impact on the environment. Consultation During 2006, the Authority regularly consulted users' associations such as the Canadian Shipowners Association, the Shipping Federation of Canada, and the St. Lawrence Ship Operators and even contacted a number of users directly. These discussions dealt with all areas of the Authority's activities, including financial, operational, and regulatory activities. Compliance and enforcement Section 45 of the Pilotage Act provides the enforcement mechanism for the Regulations. It states that no customs officer at any port in Canada shall grant a clearance to a ship if the officer is informed by an Authority that pilotage charges in respect of the ship are outstanding and unpaid. Section 48 of the Pilotage Act provides a penalty of up to $5,000 if the Regulations are contravened. Mr. Réjean Lanteigne, Chief Executive Officer, Laurentian Pilotage Authority, 555 René-Lévesque Boulevard W, Suite 1501, Montréal, Quebec H2Z 1B1, 514-283-6320 (telephone), 514-496-2409 (fax). Notice is hereby given, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act, that the Laurentian Pilotage Authority proposes, pursuant to subsection 33(1) of that Act, to make the annexed Regulations Amending the Laurentian Pilotage Tariff Regulations. Interested persons who have reason to believe that any charge in the proposed Regulations is prejudicial to the public interest, including, without limiting the generality thereof, the public interest that is consistent with the national transportation policy set out in section 5 of the Canada Transportation Act (see footnote b), may file a notice of objection setting out the grounds therefor with the Canadian Transportation Agency within 30 days after the date of publication of this notice. The notice of objection should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Canadian Transportation Agency, Ottawa, Ontario K1A 0N9. Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act. Montréal, September 29, 2006
RÉJEAN LANTEIGNE REGULATIONS AMENDING THE LAURENTIAN PILOTAGE TARIFF REGULATIONS AMENDMENT 1. Schedule 2 to the Laurentian Pilotage Tariff Regulations (see footnote 1) is replaced by the schedule set out in the schedule to these Regulations. COMING INTO FORCE 2. These Regulations come into force on January 1, 2007.
SCHEDULE
SCHEDULE 2 PILOTAGE CHARGES
1 The number of chargeable hours of service is calculated from the later of the time for which the pilotage services are requested and the time the pilot reports for pilotage duty until the time of cancellation. [40-1-o] S.C. 1998, c. 10, s. 150 S.C. 1996, c. 10 SOR/2001-84 |
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