Government of Canada
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Vol. 132, No. 49 — December 5, 1998

Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996

Statutory Authority

Pilotage Act

Sponsoring Agency

Atlantic Pilotage Authority

REGULATORY IMPACT
ANALYSIS STATEMENT

Description

The Atlantic Pilotage Authority is responsible for administering, in the interests of safety, an efficient pilotage service within the Canadian waters in and around the Atlantic Provinces. In addition, the Authority prescribes tariffs of pilotage charges that are fair and reasonable and consistent with providing revenues sufficient to permit the Authority to operate on a self-sustaining financial basis. The Authority is consequently amending tariff charges for some compulsory pilotage areas and non-compulsory pilotage areas.

For compulsory pilotage areas, the amendments constitute an adjustment or re-alignment of rates. The tariff charges reflect increases in areas that are losing money or have a marginal profit margin and a tariff decrease in an area that exceeds the established rate of return. Most areas will have no rate adjustment.

The amendment for non-compulsory pilotage areas, as described in Schedule 1 of these Regulations, specifically pertains to the charges contained in Schedule 6 and the proposed increase is 5.5 percent. The Regulatory Impact Analysis Statements published in Parts I and II of the Canada Gazette on October 18, 1997, and June 24, 1998, respectively, identified a proposed increase of 2.5 percent for the charges described in Schedule 6. Unfortunately, this increase was inadvertently omitted from the tariff charges tabulated in this Schedule and consequently the increase was not enacted. Due to this oversight, the last increase affecting these non-compulsory pilotage areas was January 21, 1995. This current proposal of a 5.5 percent increase in the pilotage charges for non-compulsory areas reflects the rate of inflation since 1995 and will assist the Authority in maintaining its financial independence.

Alternatives

The Authority is required to provide a safe and efficient pilotage service to ensure safe navigation and protection of the marine environment. Costs have been reduced where feasible and kept to the minimum consistent with maintaining a safe and effective service. Further reductions in operating costs are not an alternative since this would reduce the quality of service provided by the Authority and this would be unacceptable to both the Authority and its clients. Maintaining pilotage fees at the current level was considered and rejected since a readjustment of tariff rates is necessary to reflect the actual costs for pilotage services being performed and to ensure that the Authority maintains its financial self-sufficiency.

Benefits and Costs

The charges prescribed in these amendments are beneficial in that they will ensure the continued efficiency of the pilotage services and will result in the Authority achieving the Corporate Plan objective of a 10 percent rate of return in 1999. These pilotage charges will ensure that the Authority operates in 1999 on a self-sustaining financial basis that is fair and reasonable. The adjustments will have a positive impact in that they distribute the pilotage costs to users in a more equitable manner and are expected to increase overall revenue by less than 1 percent. Four compulsory pilotage areas will experience higher costs, while one will have lower costs. The remaining eleven compulsory pilotage areas will have no change in rates. Foreign shipping, represented by the Shipping Federation of Canada, constitutes the majority of the users, while domestic shipping represents approximately 25 percent.

Consultation

Consultation in various forms has taken place with the parties affected by these proposed amendments. These parties include the Shipping Federation of Canada, the Canadian Shipowners Association, the Saint John Port Corporation, and local port agents and users. The consultation took the form of meetings with some groups and written communications with others. Alternatives to tariff increases were presented, where applicable. In the port of Saint John, the participants in the consultation process selected the alternative most favourable to them. In other ports, the Authority provided a written analysis of the situation and solicited responses.

Compliance and Enforcement

Section 45 of the Pilotage Act provides an enforcement mechanism for these Regulations in that a Pilotage Authority can inform a customs officer at any port in Canada to withhold clearance from any ship for which pilotage charges are outstanding and unpaid.

Contact

Captain R. A. McGuinness, Chairman, Atlantic Pilotage Authority, Purdy's Wharf, Tower 1, Suite 1402, 1959 Upper Water Street, Halifax, Nova Scotia B3J 3N2, (902) 426-2550 (Telephone), (902) 426-4004 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act, that the Atlantic Pilotage Authority proposes, pursuant to section 33 (see footnote b) of that Act, to make the annexed Regulations Amending the Atlantic Pilotage Tariff Regulations, 1996.

Interested persons who have reason to believe that any charge in the proposed Regulations is prejudicial to the public interest, including, without limiting the generality thereof, the public interest that is consistent with the national transportation policy set out in section 5 of the Canada Transportation Act (see footnote c), may file a notice of objection setting out the grounds therefor with the Canadian Transportation Agency within 30 days after the date of publication of this notice. The notice of objection should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Canadian Transportation Agency, Ottawa, Ontario K1A 0N9.

R. ANTHONY MCGUINNESS

Chairman
Atlantic Pilotage Authority

REGULATIONS AMENDING THE ATLANTIC PILOTAGE TARIFF REGULATIONS, 1996

AMENDMENTS

1. The portion of item 2 of Schedule 2 to the Atlantic Pilotage Tariff Regulations, 1996 (see footnote 1) in columns 3 (see footnote 2) and 4 (see footnote 3) is replaced by the following:



Item
Column 3

Unit Charge($)
Column 4

Basic Charge($)
2. 4.49 542.00

2. The portion of items 9 to 12 of Schedule 2 to the Regulations in columns 3 (see footnote 4) and 4 (see footnote 5) is replaced by the following:



Item
Column 3

Unit Charge($)
Column 4

Basic Charge($)
9. 3.37 445.00
10. 2.97 498.00
11. 2.11 356.00
12. 2.11 356.00

3. The portion of item 1 of Schedule 3 to the Regulations in columns 4 (see footnote 6) and 5 (see footnote 7) is replaced by the following:



Item
Column 4

Unit Charge($)
Column 5

Basic Charge($)
1. 4.22 712.00

4. The portion of item 2 of Schedule 4 to the Regulations in column 2 (see footnote 8) is replaced by the following:



Item
Column 2

Flat Charge ($)
2. 447.00

5. The portion of items 9 to 12 of Schedule 4 to the Regulations in columns 2 to 7 (see footnote 9) is replaced by the following:







Item
Column 2



Flat Charge ($)
Column 3



Minimum Charge ($)
Column 4

Unit Charge, No Pilot Boat Used ($)
Column 5

Basic Charge, No Pilot Boat Used ($)
Column 6


Unit Charge, Pilot Boat Used ($)
Column 7


Basic Charge, Pilot Boat Used ($)
9. 471.00 n/a n/a n/a n/a n/a
10. n/a 498.00 2.38 398.00 2.67 448.00
11. n/a 384.00 1.58 267.00 1.79 303.00
12. n/a 384.00 1.58 267.00 1.79 303.00

6. Schedules 5 (see footnote 10) and 6 (see footnote 11) to the Regulations are replaced by the following:

SCHEDULE 5
(Section 8)

SAINT JOHN COMPULSORY PILOTAGE AREA — TRIPS AND MOVAGES




Item
Column 1

Trip or Movage
Column 2

Flat Charge ($)
Column 3

Supple-
mentary Charge ($)
Column 4

Minimum Charge ($)
Column 5

Unit Charge ($)
Column 6

Basic Charge ($)
1. subject to item 2, a one-way trip, including a trip to or from the Monobuoy n/a 0.00 370.00 2.23 322.00
2. one-way trip to or from an anchorage area n/a 0.00 370.00 0.67 97.00
3. trip through 650.00 0.00 n/a n/a n/a
4. movage from an anchorage area to the Monobuoy n/a 0.00 340.00 1.67 242.00
5. movage from an anchorage area to a wharf or from a wharf to an anchorage area n/a 0.00 340.00 1.78 258.00
6. movage from a wharf to another wharf within
Saint John Harbour
n/a 0.00 340.00 1.34 193.00
7. movage from one anchorage area to another
anchorage area
n/a 0.00 340.00 0.89 129.00

SCHEDULE 6
(Sections 9 and 10)

PORT AND HARBOUR AREAS — ONE-WAY TRIPS AND MOVAGES





Item
Column 1


Port or Harbour Area
Column 2


Minimum Charge, One-way Trip ($)
Column 3

Unit Charge, One-way Trip ($)
Column 4


Movage Charge  ($)
1. Bathurst, N.B. 287.00 2.88 233.00
2. Caraquet, N.B. 287.00 2.88 233.00
3. Belledune, N.B. 469.00 4.02 291.00
4. Georgetown, P.E.I. 287.00 2.88 233.00
5. Pictou, N.S. 287.00 2.88 233.00
6. Souris, P.E.I. 287.00 2.88 233.00
7. Summerside, P.E.I. 287.00 2.88 233.00
8. Chandler, Que. 467.00 4.02 233.00
9. Any other port or harbour area 302.00 3.26 244.00

COMING INTO FORCE

7. These Regulations come into force on the day on which they are registered.

[49-1-o]

Regulations Amending the Atlantic Pilotage Tariff Regulations—Newfoundland and Labrador Non-Compulsory Areas

Statutory Authority

Pilotage Act

Sponsoring Agency

Atlantic Pilotage Authority

REGULATORY IMPACT
ANALYSIS STATEMENT

Description

The Atlantic Pilotage Authority is responsible for administering, in the interests of safety, an efficient pilotage service within the Canadian waters in and around the Atlantic Provinces. In addition, the Authority prescribes tariffs of pilotage charges that are fair and reasonable and consistent with providing revenues sufficient to permit the Authority to operate on a self-sustaining financial basis.

This amendment is intended to bring into force the second stage of a tariff increase, notice of which was published in the Regulatory Impact Analysis Statement accompanying an amendment to the tariff published in the Canada Gazette, Part II, on February 9, 1994. The Regulatory Impact Analysis Statement indicated the intention of the Authority to introduce the tariff increases in two separate increments. The initial increase of 3 percent became effective on January 20, 1994 (SOR/94-125) and the second tariff increase of 3 percent was scheduled to follow one year later. In response to objections, the Canadian Transportation Agency (CTA), formerly the National Transportation Agency, was tasked to conduct an investigation and the Agency subsequently concurred with the "two-tier" tariff increase proposed by the Authority. Unfortunately, there was no provision in the regulatory text to give effect to the second tariff increase and consequently the Authority is now amending the Regulations to implement a tariff increase of 3 percent.

Alternatives

Consideration was given to retaining the status quo, namely that of maintaining the current pilotage rates. This alternative was rejected since this "delayed" tariff increase is required by the Authority to maintain the effectiveness and efficiency of its pilotage services.

Benefits and Costs

The 3 percent increase in the tariff rates will ensure that the charges are consistent with the costs involved in providing pilotage services in these non-compulsory pilotage areas. The cost impact of these tariff increases will be minimal and will be absorbed by the various shipping interests that are engaged in trading in the non-compulsory pilotage areas within Newfoundland and Labrador.

Consultation

Prior to prepublishing the two-tier tariff increase in the Canada Gazette, Part I, in June 1993, the Authority consulted with stakeholders by correspondence to determine the level of support for the proposed amendment. Certain objections were received in response to the prepublication and the CTA was tasked to conduct an investigation to review the phased-in tariff increases. The Agency subsequently supported the Authority's position and the amendment was published in the Canada Gazette, Part II, on February 9, 1994. Unfortunately, no provision was incorporated within the regulatory text to give effect to the second tariff increase; hence the need for this amendment. Based on previous consultation and the recommendation of the CTA, no further consultation is considered necessary.

Compliance and Enforcement

Section 45 of the Pilotage Act provides an enforcement mechanism for these Regulations in that a Pilotage Authority can inform a customs officer at any port in Canada to withhold clearance from any ship for which pilotage charges are outstanding and unpaid.

Contact

Captain R. A. McGuinness, Chairman, Atlantic Pilotage Authority, Purdy's Wharf, Tower 1, Suite 1402, 1959 Upper Water Street, Halifax, Nova Scotia B3J 3N2, (902) 426-2550 (Telephone), (902) 426-4004 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 34(1) (see footnote d) of the Pilotage Act, that the Atlantic Pilotage Authority proposes, pursuant to section 33 (see footnote e) of that Act, to make the annexed Regulations Amending the Atlantic Pilotage Tariff Regulations—New-foundland and Labrador Non-Compulsory Areas.

Interested persons who have reason to believe that any charge in the proposed Regulations is prejudicial to the public interest, including, without limiting the generality thereof, the public interest that is consistent with the national transportation policy set out in section 5 of the Canada Transportation Act (see footnote f), may file a notice of objection setting out the grounds therefor with the Canadian Transportation Agency within 30 days after the date of publication of this notice. The notice of objection should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Canadian Transportation Agency, Ottawa, Ontario K1A 0N9.

R. ANTHONY MCGUINNESS
Chairman
Atlantic Pilotage Authority

REGULATIONS AMENDING THE ATLANTIC PILOTAGE TARIFF REGULATIONS—NEWFOUNDLAND AND LABRADOR NON-COMPULSORY AREAS

AMENDMENTS

1. Subsection 1(1) (see footnote 12) of the schedule to the Atlantic Pilotage Tariff Regulations—Newfoundland and Labrador Non-Compulsory Areas (see footnote 13) is replaced by the following:

1. (1) A pilotage charge of $32.81 per hour or part thereof is payable for any travel time of a pilot before and after pilotage up to a maximum of $393.53 for each 24 hour period.

2. Subsections 2(1) to (3) (see footnote 14) of the schedule to the Regulations are replaced by the following:

2. (1) A pilotage charge of $41.00 per hour or part thereof is payable for pilotage time for a ship.

(2) In addition to the pilotage charge payable under subsection (1) and subject to subsection (3), a charge of $270.36, or the product obtained by multiplying $2.90 by the pilotage unit, whichever is greater, is payable for each of the following categories of pilotage:

(a) coastal pilotage;

(b) inward port pilotage;

(c) outward port pilotage; and

(d) movage of a ship within a port.

(3) The pilotage charge payable under subsection (2) for a tug and a barge is calculated by adding together the pilotage units for the tug and for each barge and by multiplying that sum by $2.90, except that, if the charge so calculated is less than $270.36, a charge of $270.36 is payable.

3. Subsection 3(1) (see footnote 15) of the schedule to the Regulations is replaced by the following:

3. (1) The charge payable for the standby time of a pilot is $32.81 per hour or part thereof.

4. Subsection 5(1) (see footnote 16) of the schedule to the Regulations is replaced by the following:

5. (1) If a pilot has been dispatched on an assignment and is subsequently notified that the request for the services of the pilot is cancelled, a charge of $278.32 is payable in addition to any travel or standby charges payable under this schedule and any other expenses incurred by the pilot that are directly associated with the assignment.

5. Section 6 (see footnote 17)of the schedule to the Regulations is replaced by the following:

6. (1) Subject to subsection (2), in addition to charges payable under subsections 2(1) and (2), the charges payable for the pilotage of a dead or hampered ship are

(a) $41.00 per hour or part thereof during which the ship is dead or hampered; and

(b) the product obtained by multiplying $2.90 by the pilotage unit, or $270.36, whichever is greater.

(2) The pilotage charge payable under subsection (1) for a tug towing a barge is calculated by adding together the pilotage units for the tug and for each barge and by multiplying that sum by $2.90, except that, if the charge so calculated is less than $270.36, a charge of $270.36 is payable.

6. Paragraphs 7(1)(a) (see footnote 18) and (b) (see footnote 19) of the schedule to the Regulations are replaced by the following:

(a) $616.40, if the time taken does not exceed six hours; and

(b) $98.66 for each hour or part thereof in excess of six hours.

7. Section 8 (see footnote 20) of the schedule to the Regulations is replaced by the following:

8. In addition to any other charges payable under this schedule, a pilotage charge of $159.17 is payable if a pilot conducts a ship into or out of a dry dock, floating dock or graving dock or on or off a cradle.

8. Paragraphs 10(a) (see footnote 21) and (b) (see footnote 22) of the schedule to the Regulations are replaced by the following:

(a) in the Halifax compulsory pilotage area, a pilotage charge equal to the basic charge for the Halifax compulsory pilotage area plus $63.02 is payable; or

(b) in any pilotage area other than the Halifax compulsory pilotage area, a pilotage charge equal to the basic charge for that area plus $91.66 is payable, except that, if there is no basic charge for that area, the charge payable is equal to the actual cost of hiring the pilot boat.

COMING INTO FORCE

9. These Regulations come into force on the day on which they are registered.

[49-1-o]

Footnote a

S.C., 1998, c. 10, s. 150

Footnote b

S.C., 1998, c. 10, s. 149

Footnote c

S.C., 1996, c. 10

Footnote 1

SOR/95-586

Footnote 2

SOR/98-327

Footnote 3

SOR/98-327

Footnote 4

SOR/98-327

Footnote 5

SOR/98-327

Footnote 6

SOR/98-460

Footnote 7

SOR/98-460

Footnote 8

SOR/98-327

Footnote 9

SOR/98-327

Footnote 10

SOR/98-327

Footnote 11

SOR/98-327

Footnote d

S.C., 1998, c. 10, s. 150

Footnote e

S.C., 1998, c. 10, s. 149

Footnote f

S.C. 1996, c. 10

Footnote 12

SOR/94-125

Footnote 13

SOR/81-710

Footnote 14

SOR/81-710

Footnote 15

SOR/94-125

Footnote 16

SOR/94-125

Footnote 17

SOR/94-125

Footnote 18

SOR/94-125

Footnote 19

SOR/94-125

Footnote 20

SOR/94-125

Footnote 21

SOR/94-125

Footnote 22

SOR/94-125


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