No. H147/05
For release June 22, 2005
OTTAWA — Transport Minister Jean-C. Lapierre today announced
that amendments to the Canada Marine Act have been introduced in Parliament.
These amendments would provide Canada Port Authorities (CPA) with access to
federal contribution programs for key infrastructure improvements. They would
also enhance the safety and efficiency of Canadian waterways by reforming the
enforcement regime.
"It is important that Canada’s ports be modern, efficient, competitive and
able to respond quickly to emerging global opportunities and growing business
volumes with China and other markets," said Mr. Lapierre. "I believe the
proposed changes to the Canada Marine Act will help our ports in this regard."
The Canada Marine Act governs the marine sector in Canada. It has improved
the effectiveness of major ports by creating a National Ports System composed
of independently managed port authorities for ports that are vital to Canada’s
international and domestic trade. It also provides Canada’s major ports with
the necessary tools to operate commercially and efficiently.
The act, which received Royal Assent in 1998, was subject to a legislative
review in 2003. The proposed amendments follow up on this review and establish
a framework that respects accountabilities and provides CPAs with access to
federal funding for infrastructure. The Minister of Transport, in certain
cases, will have full delegation to increase a port authority’s borrowing
limits without Governor-in-Council’s approval.
In order to benefit the smaller CPAs who are required to identify nominees
for their boards of directors, the amendments provide for a reduction in the
minimum number of directors on the boards of most port authorities. This will
result in quicker decision-making and support responsive and efficient
management of ports. Other amendments will make administrative modifications
and clarifications.
The Canada Marine Act, introduced in the House of Commons in 1996,
implemented the federal government’s National Marine Policy, which was
announced in December 1995, and called for the modernization of the marine
management and regulatory regime by introducing business discipline to achieve
greater efficiency in the marine transportation sector.
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Contacts:
Irène Marcheterre
Director of Communications
Office of the Minister, Ottawa
(613) 991-0700
Anne-Marie Bouchard
Communications
Transport Canada, Ottawa
(613) 993-0055
Transport Canada is online at www.tc.gc.ca.
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BACKGROUNDER
Canada Marine Act REVIEW
The Canada Marine Act (CMA), which received Royal Assent in 1998,
constituted the first, single, comprehensive piece of legislation to govern
many aspects of Canada’s marine industry and allowed for the establishment of
Canada Port Authorities (CPA). The act facilitated the commercialization of
the St. Lawrence Seaway, allowed for the continued divestiture of certain
harbour beds and port facilities and contained provisions for the further
commercialization of federal ferry services. It also aimed to improve the way
Pilotage Authorities operate in Canada.
The CMA required the Minister of Transport to complete a review of the
provisions and operation of the act and report back to both Houses of
Parliament in the fifth year following Royal Assent. A review panel undertook
consultations with stakeholders and prepared a report that the Minister of
Transport tabled in the House of Commons in June 2003. The review report made
two general recommendations and a number of specific recommendations
concerning implementation issues related to CPAs, the St. Lawrence Seaway,
public ports, pilotage and ferries. The report also included a number of
observations on general marine issues.
A comprehensive review of the act addressed issues such as the
competitiveness of Canada Port Authorities in light of the rapid pace of
change in the marine sector and levels of funding provided to ports in the
United States.
Overall, stakeholders, and CPAs in particular, have reacted positively to
the CMA review report. The principal concerns identified by the review were
the marine sector’s financial flexibility, especially for CPAs, to maintain
economic viability and respond effectively to changing market demands, as well
as access to federal funding for infrastructure investment.
In an effort to address the key concerns of the marine industry and
establish an environment that is more favorable to investment, the department
is proposing a combination of legislative amendments with particular attention
to recommendations related to the financial concerns of ports.
Proposed amendments will establish a framework that respects
accountabilities and provides CPAs with access to federal funding for
infrastructure. They will also allow the Minister, in certain cases, to
increase a port authority’s borrowing limits and to reduce the minimum number
of directors on the boards of most CPAs.
In order to improve the competitiveness of the Canadian marine industry,
the department will not limit its activities to legislative amendments.
Transport Canada will pursue other policy initiatives in key areas to continue
to maximize the efficiency of the marine sector and strengthen its role in
relation to Canada’s international trade.
June 2005
