No. H031/02For release - March 21, 2002
OTTAWA — Transport Minister David Collenette today announced that Transport Canada's Port Divestiture Program for regional/local and remote ports, and the airport divestiture program under the National Airports Policy (NAP), will be extended.
The Port Divestiture Program will be extended by one year to March 31, 2003, at which time the department will review the progress of the program and its options regarding any ports that have not been divested.
"In order to allow the best use of funding and resources, Transport Canada will target those sites which it believes can be divested affordably over the next year," said Mr. Collenette. "The department will focus on those sites where negotiations were underway as of December 31, 2001, and for which we have received a positive indication of provincial cooperation where required."
The 1995 National Marine Policy, which aimed to reduce overcapacity and improve the efficiency of the port system in Canada, established three categories of ports: Canada Port Authorities; regional/local ports; and remote ports. In 1996, the Port Divestiture Program was established to seek local ownership and control of regional/local and remote ports. To date, Transport Canada has divested or deproclaimed 425 of these 549 ports, and saved Canadian taxpayers approximately $109 million.
The extension of the airports divestiture program under the NAP, until March 31, 2005, will allow Transport Canada to continue negotiations to divest Canada's remaining 14 regional/local and small airports.
"By extending this program, the Government of Canada is demonstrating its commitment to completing the objectives outlined in the policy, which to date has put 87 percent of Canada's airports into local hands," added Mr. Collenette. "These non-governmentally operated airports now handle more than 99 percent of Canada's air passengers."
The National Airports Policy was announced in 1994 and calls for the commercialization of the National Airport System (made up of Canada's major airports), regional/local and small airports through transfer to community interests. Of Canada's airports scheduled for transfer, 121 are now under local operation. The remaining 14 regional/local and small airports are at various stages of the transfer process and negotiations are expected to be completed by March 2005. The remaining National Airports System airport, Prince George, is expected to be transferred in 2002.
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The Government of Canada remains committed to ensuring a safe, efficient, integrated, affordable, accessible and environmentally sustainable transportation system to serve Canadians.
Contact:
Anthony PolciDirector of CommunicationsOffice of the Minister, Ottawa(613) 991-0700
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BACKGROUNDER
AIRPORTS DIVESTITURE PROGRAM
The National Airports Policy (NAP) was announced in 1994 and calls for the transfer of airports in the National Airports System (NAS), as well as regional/local and small airports, to local community interests. The policy enables communities to take greater advantage of their airports, reduce costs, tailor levels of service to local demand, and attract new and different types of business.
NAP categorizes airports owned by Transport Canada into five categories, namely; National Airports System - Canada's majorairports - (26); regional/localairports (71); smallairports (31); Arctic airports (11, which includes three NASairports) and remoteairports (13).Remote airports are those that provide exclusive, reliable, year-round access to isolated communities. These airports are currently receiving federal assistance and will continue to be supported by Transport Canada.
Of Canada's 136 airports scheduled for transfer, 121 are now under local operation.
Regional/local and small airports transfer status, as of February 1, 2002:
60 regional/local airports have been divested, leaving 11 (St. Anthony and Wabush in Atlantic Region; Baie-Comeau, Havre-St-Pierre, Mont-Joli, Natashquan, Rimouski and Sept-Iles in Québec Region; Penticton and Port Hardy in Pacific Region; and, Toronto Island in Ontario Region) under federal jurisdiction.
28 small airports have been divested, leaving three (Rivière-du-Loup, St. Jean-Sur-Richelieu,and Saint-Hubert in Québec Region) under federal jurisdiction.
Other airports, as of January 1, 2002:
8 Arctic airports were transferred in 1995 to the territorial governments of: Yukon (2), Northwest Territories (6), and Nunavut (3). An additional three NAS airports were also transferred in the same year.
25 NAS airports have been transferred. The one remaining, Prince George Airport, is expected to be transferred by the summer of 2002.
March 2002
BACKGROUNDER
PORT DIVESTITURE PROGRAM
The National Marine Policy, announced in December 1995, outlines the Government of Canada's intent to modernize Canada's marine transportation system. One initiative within this policy framework is the Port Divestiture Program under which Transport Canada is transferring the ownership and operation of regional/local ports and harbour beds to other federal departments, provincial or local interests. Originally scheduled to end March 31, 2002, the program has recently been extended to March 31, 2003.
The public port system supports the safe and efficient movement of vessels and cargo and is integral to regional economic prosperity. Transferring regional/local ports to local interests places decision-making responsibilities in the hands of those best able to gauge local requirements. This allows for a more effective and efficient port system with local accountability. The new owners have the same rights and obligations as any property owner and are subject to all applicable legislation.
As of February 28, 2002, Transport Canada had divested or deproclaimed a total of 425 of the 549 regional/local and remote port facilities across Canada. Under the Port Divestiture Program, regional/local ports, including harbour beds, owned by Transport Canada are first offered to other departments within the Government of Canada and then to the provinces. If a department or province is not interested in acquiring these facilities, Transport Canada then seeks expressions of interest from local stakeholders, including municipalities. A public tender process may be used as a final option in the event that no expressions of interest are received.
A Port Divestiture Fund was created to facilitate the transfer process. The fund provides an incentive to local interests to assume ownership of the facilities and to give operators flexibility to operate within the local business environment. Contributions from the fund must be applied to eligible expenditures directly related to the operation of the port or to eligible capital projects designed to bring existing port property up to minimum safety or operating standards.
Audits of contribution agreements help safeguard the efficiency and effectiveness of the Port Divestiture Program. For each year of a contribution agreement, the port operator must provide the Minister with evidence certifying that the contribution funds have been applied to eligible expenditures directly related to port operations. In addition, a port operator's books and records must be open for audit and inspection at the discretion of the Minister, a requirement that continues for six years after the end of the contribution agreement. The transfer documents also provide for the full repayment of the contribution in certain instances, such as if the port operator ceases to operate the port.
Under the National Marine Policy, the vast majority of ports in Canada were classified as regional/local. However, the policy also includes two other categories not covered by the Port Divestiture Program:
Canada Port Authorities (CPAs): ports that are vital to domestic and international trade and are financially self-sufficient continue to be owned by Transport Canada but independently managed by boards of directors nominated by user groups and various levels of government. CPAs are governed by the Canada Marine Act, which enables them to operate in a more commercial, efficient and timely manner.
Remote Ports: ports which serve basic transportation needs of isolated communities and which rely on the presence of an existing Transport Canada wharf structure. Remote ports will continue to be operated by Transport Canada unless local groups express an interest in acquiring them.
While the department is transferring its property interests in the case of regional/local ports, the Government of Canada retains jurisdiction over navigation on the water. As a result, the need for ships to obey all applicable federal statutes such as the Canada Shipping Act remains unaffected.
March 2002
