No. H131/06
For release November 02, 2006
OTTAWA − The Honourable Lawrence Cannon, Minister of Transport,
Infrastructure and Communities, today released the report on the review of the
Toronto Port Authority (TPA), prepared by Mr. Roger Tassé.
Mr. Tassé was appointed on May 1, 2006, to examine the governance of the TPA and
to review decisions, actions and associated transactions of the TPA regarding
the proposed fixed link from mainland Toronto to the Toronto City Centre Airport
(TCCA). Mr. Tassé submitted his report, which includes four recommendations, to
the Minister of Transport, Infrastructure and Communities on October 16, 2006.
"I would like to thank Mr. Tassé for his excellent work in preparing this
comprehensive report," said Minister Cannon. "I have thoroughly reviewed the
report and, based on the findings, I am satisfied that principles of good
governance have been upheld in respect of the TPA."
"Mr. Tassé has undertaken an exhaustive review of the TPA and has addressed a
number of issues that have been raised by Parliamentarians, municipal
politicians and local stakeholders," noted Minister Cannon. "In particular, I
see that Mr. Tassé has re-affirmed the local and national importance of the Port
of Toronto. As such, and specifically in regard to Mr. Tassé's fourth
recommendation, I agree with the finding that the City of Toronto and the
federal government must take a collaborative approach in reconciling issues that
are of both a local and national interest."
Minister Cannon also noted that, "I am also pleased that Mr. Tassé has made
recommendations designed to strengthen the transparency and accountability of
the TPA and its operation of the TCCA and has suggested a number of means of
facilitating relations with stakeholders and interested groups. Canada's New
Government is committed to bringing accountability back to government. I agree
with the intent of these recommendations and have asked Transport Canada
officials to explore each recommendation further and advise as to what steps
could be taken to realize their implementation or advancement."
Backgrounders detailing the principal findings of the review and the associated
recommendations are attached. To obtain a full copy of the report, please visit
Transport Canada's website at www.tc.gc.ca/mediaroom/reports.htm
Note: Mr. Tassé will be available today, November 2, at 3:45 p.m. through
teleconference to answer questions about the report. Media representatives are
invited to call 1-888-265-0464 or 613-945-4096 at 3:45 p.m. to participate in
the conference. The conference ID number is 1321188
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Contacts:
Natalie Sarafian
Press Secretary
Office of the Minister of Transport,
Infrastructure and Communities, Ottawa
613-991-0700
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
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Backgrounder
PRINCIPAL FINDINGS OF THE REVIEW
With respect to the actions and decisions of the Toronto Port Authority (TPA)
regarding the proposed construction of the fixed link, the purchase of a new
ferry and related infrastructure, as well as its current commercial
arrangements, the review found that "the TPA has in all respects complied with
due diligence requirements and the generally respected principles of good
governance."
With respect to the global $35-million settlement, the review found "the figure
is reasonable and the process in reaching each element of this settlement
generally followed the principles of good governance." The report notes
that appropriate due diligence was undertaken in arranging the various
sub-settlements, i.e., with Aecon, Stolport Corp. and RegCo.
With respect to the actions of the TPA in the fall of 2003 (i.e., awarding of a
construction contract to Aecon), the review found that allegations that the TPA
inappropriately accelerated the process in advance of the municipal elections
were "grossly exaggerated." The review found nothing to suggest anything
improper about the timing of contracts in relation to the municipal election.
With respect to the environmental assessment (EA) undertaken by the TPA in 2006,
the review found that the TPA retained and relied upon appropriate external
advisors and acted in accordance with principles of good governance. The review
also provides a detailed account of the events surrounding the assessments
undertaken by the TPA in 1999 and 2003. In the case of the 2003 EA, the review
concluded that the TPA undertook public consultations and other actions well
beyond the scope of that required under legislation.
With respect to board appointments/governance, the review found that the TPA
followed proper processes in mitigating potential consequences of not
functioning under a seven-person board of directors. The diminished size of the
board did not impact on the appropriateness of decisions that were taken. The
review also notes that the Canada Marine Act (CMA) regime is comprehensive in
terms of transparency and financial oversight and that the TPA is more
accountable under the CMA than its former legislation.
With respect to the federal interest, the review emphasizes that the activities
taking place at the port and airport are clearly within federal jurisdiction.
The fact that these facilities are located within a municipality and have local
aspects does not mean that the local government is best placed to arbitrate
between the local and federal interests. The review suggests that these
interests must be "harmonized and reconciled" by both levels of government
working cooperatively.
With respect to the Tripartite Agreement, the review concurs that this is a
legally binding agreement and cannot be unilaterally altered by any one of the
three parties.
With respect to assertions that the actions of the TPA are incompatible with
waterfront revitalization, the review found no evidence that the TPA's plans or
activities constitute an impediment to the efforts to revitalize the Toronto
Waterfront. In fact, it is noted that, "the TPA is closely cooperating with the
Toronto Waterfront Revitalization Corporation."
Backgrounder
RECOMMENDATIONS
Recommendation #1
Consideration should be given to adopting changes to the corporate arrangements
concerning the Toronto Port Authority (TPA) to ensure that the Toronto City
Centre Airport's (TCCA) affairs be governed as a subsidiary − as a distinct and
separate entity from the Port Authority − so as to provide a better management
focus and ensure greater transparency and accountability. Similarly, the TPA
should publish an annual report of its operations and a separate report of the
TCCA's operation should be published to provide stakeholders, interested parties
and the public with meaningful and comprehensive information about the
activities, plans and performance of both.
Minister's response to Recommendation #1
I have instructed Transport Canada officials to examine this recommendation
closely to determine what actions might be required to move forward. I would
expect that Transport Canada officials will need to consult with TPA officials
in this regard.
Recommendation #2
A determined effort should be made by the TPA to take a more proactive approach
to community consultations. It would be important for the TPA to reach out to
organizations and groups who have raised concerns about its operations to build
relationships and stimulate reasonable discussions and to, at the same time,
begin a dialogue with those who have not been actively involved in the
discussion about the TPA to date.
Minister's response to Recommendation #2
I fully support this recommendation and will encourage the TPA to also support
and act on this important consideration.
Recommendation #3
Consideration should be given to proposing an amendment to the CMA, at the next
opportunity, to provide that the appointment of all members of the Board of a
Port Authority continue after the expiring of their term until another person is
appointed in replacement of a departing member. This provision should be limited
to one additional year.
Minister's response to Recommendation #3
I have asked Transport Canada officials to consider this recommendation in the
context of future legislative initiatives.
Recommendation #4
Federal officials, particularly those who have been elected, have a
responsibility to take an active role in debates and discussions on the future
of the Port and the Island Airport, to explain the federal interests in these
institutions, as well as the reasons why the federal government needs to be
involved, underlining the importance of a collaborative approach between the
City and the federal government in arbitrating national and local interests.
Minister's response to Recommendation #4
I fully support the important role that federal transportation entities such as
the TPA and TCCA play with respect to the local and national transportation
system and economies. As such, I will request that Transport Canada officials
report to me on future work with City of Toronto officials, to identify those
issues that impact upon both local and national interests in an effort to find
common ground and resolve these issues to the benefit of Torontonians and all
Canadians.
