7 ROAD TRANSPORTATION
OTHER ISSUES OF SIGNIFICANCE
NEW TAX ON INCOME TRUSTS
Four of the top 10 Canadian for-hire carriers in 2006 were income funds. Consequently, the decision of the federal government to apply a corporate tax to income trusts announced on October 31, 2006 was a matter of considerable interest to the sector. New trusts beginning trading as of November 1, 2006 or later would face the new measures in 2007; existing trusts (case of some Canadian for-hire carriers operating at the time of the announcement) would have a four-year transition period and would not face the new rules until 2011. At the end of 2006, the proposed changes had not yet been enacted.
BUS INDUSTRY AND SAFETY FITNESS REGIME
Extra-provincial bus operators are among those subject to the safety fitness regime created by the amendments to the MVTA that came into force at the beginning of 2006. Bus companies, except for transit operators, will also be subject to the new hours of service regime.
There were few dramatic developments in the regulatory regime for the intercity and charter bus industry in 2006. The one exception was in New Brunswick. In a decision issued March 30, 2006, the Board of Commissioners of Public Utilities of New Brunswick (now NB Energy and Utilities Board) suspended the licence of DRL Coachlines Limited of Newfoundland for a period of six months. (This action followed a similar decision applying to DRL in 2005 issued by the Utility and Review Board of Nova Scotia). DRL was offering chartering services in New Brunswick. The company was found guilty of violating various Acts in transportation.
Major Events in 2006
Other Issues of Significance
Infrastructure
Industry Structure
Passenger Transportation
Freight Transportation
Trucking Freight Transportation
Price, Productivity and Financial Performance
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