No. H207/07
For release - October 26, 2007

TRANSPORT CANADA TABLES AMENDMENTS TO THE PILOTAGE ACT

OTTAWA — The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today re-introduced five key amendments to the Pilotage Act to help ensure the financial self-sufficiency of pilotage authorities while maintaining high levels of safety.

"A strong and safe marine transportation system is vital to our economy and environment," said Minister Cannon. "The proposed amendments would result in less government intervention and a better way of doing business – a way that is more accountable to Canadians."

The five key proposed amendments to the Pilotage Act, include:

• section 15, to make it possible for an Authority to engage both employee pilots and contracted corporate pilots with a Pilot Corporation for provision of pilots, simultaneously;
• section 15.2, to ensure an arbitrator considers both the requirement for an Authority to be financially self-sufficient and the summary of an Authority's corporate plan when selecting a final offer;
• section 18, to include in the objects of an Authority the requirement to be financially self-sufficient;
• section 21(2) to give flexibility to the Minister to conduct an investigation when a notice of objection is received concerning amendments to regulations governing the qualification of pilots or compulsory pilotage areas; and
• section 35, to require the Canadian Transportation Agency to consider both the requirement for an Authority to be financially self-sufficient and the summary of the Authority's corporate plan when making a determination concerning an amendment to a tariff regulation.

The amendments would not allow retroactive claims except for contract negotiations underway.

Consultations on the amendments to the Pilotage Act were held by Transport Canada as of February 1, 2007. The consultation process included key stakeholders in the pilotage industry to review certain governance elements of the Pilotage Act. Consultations were held in cities across the country, such as Vancouver, Prince Rupert, Oakville, St. John's, Halifax, Quebec City, Montreal and Ottawa.

"Our government takes the safety and security of the marine transportation system very seriously and is committed to ensuring that appropriate levels of safety are maintained," added Minister Cannon. "Pilots would still be required to have certification and possess a degree of skill and local knowledge of the waters of the pilotage area. The proposed amendments improve the day to day business of pilotage authorities and would in no way affect the safety of persons on board ships, the environment or the vessels."

Marine pilotage is an important element of safe marine navigation in Canada. Pilotage authorities created under the Pilotage Act are Crown Corporations and are required by law to be financially self-sustaining, which in recent years has been difficult to achieve for some authorities. It is apparent that the business model created by the Pilotage Act has prevented some authorities from fulfilling this legal mandate.

The Pilotage Act, which came into effect in 1972, governs how pilotage authorities hire pilots, either as employees or pilot corporations and how they negotiate service contracts with pilot corporations. It also imposes a regulatory review process additional to the Government of Canada's standard process – all of which can have a negative effect on an authority's financial sustainability.

For more information about the Pilotage Act, please visit www.tc.gc.ca/MarineSafety/menu.htm.

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