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Vol. 139, No. 6 — February 5, 2005 Regulations Amending the Great Lakes Pilotage Tariff RegulationsStatutory authority Pilotage Act Sponsoring agency Great Lakes Pilotage Authority REGULATORY IMPACT (This statement is not part of the Regulations.) Description The Great Lakes Pilotage Authority (the Authority) is responsible for administering, in the interests of safety, an efficient pilotage service within Canadian waters in the province of Quebec, south of the northern entrance to Saint-Lambert Lock, and in and around the provinces of Ontario and Manitoba. Section 33 of the Pilotage Act (the Act) allows the Authority to prescribe tariffs of pilotage charges that are fair and reasonable and that permit the Authority to operate on a self-sustaining financial basis. In mid-October 2004, the Authority met with the marine industry and, based on current and projected traffic levels, it was agreed to implement a 3.5 percent tariff increase for 2005. At the end of the 2004 navigational season, the Authority had, in fact, lost approximately $2,000,000 due to a greater reduction in traffic levels than had been anticipated and a significant decrease in revenues due to the dramatic reduction in the U.S. dollar. To compensate for the unexpected shortfall and to support its efforts towards operating on a self-sustaining financial basis, it is necessary that the Great Lakes Pilotage Tariff Regulations be amended to reflect a 5.5 percent increase in the Authority's pilotage charges for 2005. This revised increase will cover the actual loss incurred by the Authority and allow it to attain a break-even position at the close of the 2005 navigational season. With respect to a vessel making a round trip between Saint-Lambert lock (Montréal) and Thunder Bay, the net effect of the 5.5 percent increase averages out to an overall increase of $2,440 or 11˘ per tonne of cargo carried on the round trip. Alternatives A retention of the existing tariff rates was a possible option. The Authority, however, rejected this status quo position since its surplus funds are totally exhausted and it is necessary to increase tariff charges to reflect the actual costs of providing the various pilotage services. This amendment will support the Authority's efforts to ensure financial self-sufficiency while providing a safe and efficient pilotage service, in accordance with the requirements of the Act. Benefits and costs The 5.5 percent increase is consistent with the Authority's efforts to raise its charges to reflect the actual costs of providing current pilotage services and to partially replenish the funds withdrawn from its reserves set aside for employee retirements. This amendment will generate an increase in revenue of approximately $700,000 in 2005. The charges are beneficial in that they will ensure the continued efficiency of the pilotage services while maintaining the present level of pilot numbers as requested by the marine industry. In addition, this increase will enhance the Authority's ability to operate on a self-sustaining financial basis that is both fair and reasonable. 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 On October 19, 2004, the Authority met with the Shipping Federation of Canada (SFC) to present its financial position and discuss current and projected traffic levels. After considerable discussion, agreement was reached to implement a 3.5 percent increase in the Authority's pilotage charges for 2005. The Authority agreed to maintain its present number of pilots in order to preserve the current level of service for its clients. During the 2004 navigational season, an unanticipated decline in traffic levels and a dramatic reduction in the U.S. dollar resulted in the Authority incurring a loss of revenue in the order of $2,000,000. The Authority consequently consulted with SFC members in mid-January 2005 to discuss its losses and indicated that it had no alternative but to increase its pilotage charges to assist it in attaining a break-even position. In order to maintain its current level of service to its clients, the Authority advised SFC members that it would have to revise its original 3.5 percent increase in its pilotage charges by a further 2 percent to attain a break-even position at the close of the 2005 navigational season. While expressing their concerns regarding the revised increase, SFC members recognized that the proposed 5.5 percent increase in the Authority's charges is fair and reasonable considering its financial position. The Authority also communicated with the Canadian Shipowners Association and the Chamber of Maritime Commerce advising them of the proposed 5.5 percent tariff increase and invited their comments. Compliance and enforcement Section 45 of the Pilotage Act provides the enforcement mechanism for these Regulations in that a Pilotage Authority can inform a customs officer at any port in Canada to withhold clearance from any ship for which pilotage charges are outstanding and unpaid. Section 48 of the Pilotage Act stipulates that every person who fails to comply with the Act or regulations is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000. Mr. R. F. Lemire, Chief Executive Officer, Great Lakes Pilotage Authority, P.O. Box 95, Cornwall, Ontario K6H 5R9, (613) 933-2991 (telephone), (613) 932-3793 (facsimile). Notice is hereby given, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act, that the Great Lakes Pilotage Authority proposes, pursuant to subsection 33(1) of that Act, to make the annexed Regulations Amending the Great Lakes 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. Cornwall, January 27, 2005 ROBERT LEMIRE REGULATIONS AMENDING THE GREAT LAKES AMENDMENTS 1. (1) Subsections 1(1) to (4) of Schedule I to the Great Lakes Pilotage Tariff Regulations (see footnote 1) are replaced by the following: 1. (1) Subject to subsection (2), the basic charge for a passage, other than a movage, through International District No. 1 or any part thereof and its contiguous waters is $9.23 for each kilometre ($15.36 for each statute mile), plus $205 for each lock transited. (2) The minimum and maximum basic charges for a through trip through International District No. 1 and its contiguous waters are $449 and $1,970, respectively. (3) The basic charge for a movage in International District No. 1 and its contiguous waters is $675. (4) If a ship, during its passage through the Welland Canal, docks or undocks for any reason other than instructions given by The St. Lawrence Seaway Management Corporation, the basic charge is $43 for each kilometre ($71.12 for each statute mile), plus $265 for each lock transited, with a minimum charge of $884. (2) The portion of items 1 to 15 of the table to subsection 1(5) of Schedule I to the Regulations in column 2 is replaced by the following:
(3) The portion of items 1 to 4 of the table to subsection 1(6) of Schedule I to the Regulations in column 2 is replaced by the following:
2. (1) The portion of items 1 and 2 of the table to subsection 2(1) of Schedule I to the Regulations in column 2 is replaced by the following:
(2) Subsection 2(3) of Schedule I to the Regulations is replaced by the following: (3) The basic charge for pilotage services consisting of a lockage and a movage between Buffalo and any point on the Niagara River below the Black Rock Lock is $827. 3. Subsections 3(1) and (2) of Schedule I to the Regulations are replaced by the following: 3. (1) Subject to subsections (2) and (3), if, for the convenience of a ship, a pilot is detained after the end of the pilot's assignment or during an interruption of the passage of the ship through designated waters or contiguous waters, an additional basic charge of $60 is payable for each hour or part of an hour that the pilot is detained. (2) The maximum basic charge under subsection (1) for any 24-hour period is $950. 4. Section 4 of Schedule I to the Regulations is replaced by the following: 4. (1) Subject to subsection (2), if the departure or movage of a ship to which a pilot has been assigned is delayed for the convenience of the ship for more than one hour after the pilot reports for duty at the designated boarding point, a basic charge of $60 is payable for each hour or part of an hour, including the first hour of that delay. (2) The maximum basic charge under subsection (1) for any 24-hour period is $950. 5. Subsections 5(1) to (3) of Schedule I to the Regulations are replaced by the following: 5. (1) If a request for pilotage services is cancelled after the pilot reports for duty at the designated boarding point, the basic charge is $1,274. (2) Subject to subsection (3), if a request for pilotage services is cancelled more than one hour after the pilot reports for duty at the designated boarding point, in addition to the basic charge set out in subsection (1), a basic charge of $60 is payable for each hour or part of an hour, including the first hour, between the time the pilot reports and the time of cancellation. (3) The maximum basic charge payable under subsection (2) for any 24-hour period is $950. 6. Subsections 7(1) and (2) of Schedule I to the Regulations are replaced by the following: 7. (1) If a pilot is unable to board a ship at the normal boarding point and, to board it, must travel beyond the area for which the pilot's services are requested, the basic charge of $368 is payable for each 24-hour period or part of a 24-hour period during which the pilot is away from the normal boarding point. (2) If a pilot is carried on a ship beyond the area for which the pilot's services are requested, the basic charge of $368 is payable for each 24-hour period or part of a 24-hour period before the pilot is returned to the place where the pilot normally would have disembarked. 7. The portion of items 1 to 4 of the table to section 1 of Schedule II to the Regulations in columns 2 and 3 is replaced by the following:
8. Subsections 4(1) and (2) of Schedule II to the Regulations are replaced by the following: 4. (1) Subject to subsections (2) and (3), if, for the convenience of a ship, a pilot is detained after the end of the pilot's assignment or during an interruption of the passage of the ship through the Cornwall District, an additional basic charge of $112 is payable for each hour or part of an hour that the pilot is detained. (2) The maximum basic charge payable under subsection (1) for any 24-hour period is $1,719. 9. Section 5 of Schedule II to the Regulations is replaced by the following: 5. (1) Subject to subsection (2), if the departure or movage of a ship to which a pilot has been assigned is delayed for the convenience of the ship for more than one hour after the pilot reports for duty at the designated boarding point, the basic charge payable for each hour or part of an hour, including the first hour, of that delay is $112. (2) The maximum basic charge under subsection (1) for any 24-hour period is $1,719. 10. Subsections 6(1) to (3) of Schedule II to the Regulations are replaced by the following: 6. (1) If a request for pilotage services is cancelled after the pilot reports for duty at the designated boarding point, the basic charge is $1,274. (2) Subject to subsection (3), if a request for pilotage services is cancelled more than one hour after the pilot reports for duty at the designated boarding point, in addition to the basic charge prescribed in subsection (1), the basic charge payable for each hour or part of an hour, including the first hour, between the time the pilot reports and the time of the cancellation is $112. (3) The maximum basic charge under subsection (2) for any 24-hour period is $1,719. 11. The portion of items 1 and 2 of the table to section 1 of Schedule III to the Regulations in column 2 is replaced by the following:
COMING INTO FORCE 12. These Regulations come into force on the day on which they are registered. [6-1-o] S.C. 1998, c. 10, s. 150 S.C. 1996, c. 10 SOR/84-253; SOR/96-409 |
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