NR-HQ-00-10E

Dhaliwal announces improvements to oil spill response regime

March 31, 2000

OTTAWA -- Herb Dhaliwal, Minister of Fisheries and Oceans, announced today that the government will implement improvements to a major component of Canada's national system of oil spill preparedness and response.

"The industry-based oil spill preparedness and response regime is an important part of Canada's overall system to protect the marine environment," said Minister Dhaliwal. "The changes I am announcing today will ensure the continued viability of this essential partnership between government and industry."

Funded and operated by the private sector, the regime was established in 1995 to enable industry to respond to its own oil spills of up to 10,000 tonnes in Canadian waters south of 60 degrees north latitude. A network of four Response Organizations (ROs) provide this coverage. The Canadian Coast Guard (CCG) remains the lead agency responsible for Canada's oil spill preparedness and response. It sets rigorous certification standards for the industry-operated regime, and maintains its own significant response capacity to complement the regime's. The CCG 's role also includes preparedness and response for off-shore oil spills, spills in the Arctic (waters north of 60 degrees north latitude), and spills of more than 10,000 tonnes of oil.

Ships and oil handling facilities pay fees to ROs. These fees recoup the costs assumed by ROs to provide oil spill preparedness that meets CCG’s certification standards. A dispute over these fees revealed a number of shortcomings within the regime, particularly with regard to its inability to resolve disputes of this kind. The dispute was resolved in April 1998 when the then Minister set fees, and also undertook to address other issues which required attention to ensure the stability of the regime.

The improvements announced today enable the regime to resolve similar disputes in a fair and transparent manner. These improvements include:

• newly established RO User Committees that will review ROs proposed fees against financial accountability and transparency standards;
• a renewed role for Regional Advisory Councils, which already exist in each region. The improvements will ensure that these Councils are representative of the interests which could be affected by an oil spill in Canadian waters; and
• a new National Advisory Council, chaired by CCG, that will allow CCG to more effectively lead Canada’s national system by bringing together its key members on a regular basis to review national preparedness and response issues.

Implementing this structure will improve the regime's ability to manage its affairs, while integrating it further into Canada's national system of preparedness and response. These steps clarify accountability and confirm the regime as a reliable and long-term provider of protection to Canada's marine environment.