Vol. 134, No. 44 — October 28, 2000

By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law

Statutory Authority

Canada Deposit Insurance Corporation Act

Sponsoring Agency

Canada Deposit Insurance Corporation

REGULATORY IMPACT ANALYSIS STATEMENT

Description

Subsection 21(2) of the Canada Deposit Insurance Corporation Act authorizes the Board of Directors of the Canada Deposit Insurance Corporation ("CDIC") to make by-laws establishing a system of classifying member institutions into different categories, setting out the criteria or factors CDIC will consider in classifying members into categories, establishing the procedures CDIC will follow in classifying members, and fixing the amount of, or providing a manner of determining the amount of the annual premium applicable to each category.

The Canada Deposit Insurance Corporation Differential Premiums By-law ("the By-law") came into force on March 31, 1999. It established the system of classifying member institutions into four categories, set out the quantitative factors and the qualitative factors and criteria on which the categorization is based, and established procedures for classification.

The amendments contained in the proposed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law ("the Amending By-law") are to the Reporting Form. This Form is set out in Part 2 of Schedule 2 to the By-law.

With one exception, the proposed changes are technical in nature and reflect changes in the numbering of items in the CAR 1 and 2 forms issued by the Office of the Superintendent of Financial Institutions ("OSFI"). These changes are summarized in the following table:

Section Requiring Amendment	Amendment Required
Paragraph under Heading 1.1.1 Net On- and Off-Balance Sheet Assets in Section 1.	Change reference to item "V" of Car 1 form.
Paragraph under Heading 1.1.2 Total Capital in Section 1.	Change reference to item "E" of Car 2 form
Paragraph under Heading 1.2.1 Tier 1 Capital in Section 1.	Change reference to item "D" of Car 2 form

The only substantive change proposed by CDIC is with respect to the wording of the certification portion of the Reporting Form in Part 2 of Schedule 2 of the By-law. The Chief Financial Officer or other authorized officer completing the Form would no longer be required to sign the Form. This change is intended to simplify the format of the Form and facilitate the electronic filing of information.

Alternatives

Because the legislation requires that the differential premium system be implemented by way of by-law, amendments to the system must also be made by by-law. There are no alternatives available.

Benefits and Costs

The implementation of the amending By-law would update references in the By-law to item number contained in forms issued by OSFI and would simplify the certification portion of the Form. The change to the certification portion of the Form will facilitate electronic filing of information by member institutions.

Consultation

Because the proposed amendments are primarily technical in nature and involve the updating and the simplification of the Reporting Form in the By-law, there has been no formal consultation with member institutions.

Compliance and Enforcement

The proposed amending By-law does not involve any compliance or enforcement issues.

Contact

Reg Neale, Director of Insurance, Rating and Information, Canada Deposit Insurance Corporation, 50 O'Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5, (613) 943-0613 (Telephone), (613) 996-6095 (Facsimile), meale@cdic.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Board of Directors of Canada Deposit Insurance Corporation pursuant to subsection 21(2) of the Canada Deposit Insurance Corporation Act, proposes to make the annexed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law.

Any interested person may make representations concerning the proposed Regulation within 30 days after the date of publication of this notice. All such representations must be addressed to: Reg Neale, Director of Insurance, Rating and Information, Canada Deposit Insurance Corporation, 50 O'Connor Street, 17th Floor, Ottawa, Ontario K1P 5W5, (613) 943-0613 (Telephone), (613) 996-6095 (Facsimile), meale@cdic.ca (Electronic mail), and cite the Canada Gazette, Part I, and the date of this notice.

Ottawa. October 18, 2000

J. P. SABOURIN
President and Chief Executive Officer

BY-LAW AMENDING THE CANADA DEPOSIT INSURANCE CORPORATION DIFFERENTIAL PREMIUMS BY-LAW

AMENDMENTS

1. (1) The paragraph under the heading "1.1.1 Net On- and Off-Balance Sheet Assets" in section 1 of the Reporting Form set out in Part 2 of Schedule 2 to the Canada Deposit Insurance Corporation Differential Premiums By-law (see footnote 1) is replaced by the following:

Indicate the net on- and off-balance sheet assets as set out for item "V" of the CAR 1 form.

(2) The paragraph under the heading "1.1.2 Total Capital" in section 1 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:

Indicate the total capital as set out for item "E" of the CAR 2 form.

(3) The paragraph under the heading "1.2.1 Tier 1 Capital" in section 1 of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:

Indicate the net tier 1 capital as set out for item "D" of the CAR 2 form.

2. The "Certification" at the end of the Reporting Form set out in Part 2 of Schedule 2 to the By-law is replaced by the following:

Certification

The Chief Financial Officer, or other authorized officer, ________________________________,

(Name of Officer)

by submitting this Reporting Form to the Canada Deposit Insurance Corporation, certifies that the information provided in this Reporting Form is correct and that it has been completed in accordance with the Canada Deposit Insurance Corporation Differential Premiums By-law.

_________________
Date

______________________
Name of Member Institution

COMING INTO FORCE

3. This By-law comes into force on the day on which it is registered.

[44-1-o]

Regulations Amending the Processed Products Regulations

Statutory Authority

Canada Agricultural Products Act

Sponsoring Agency

Canadian Food Inspection Agency

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Canadian Food Inspection Agency (CFIA) has received a request to eliminate standard container sizes for prepared mustard from the Processed Products Regulations (Canada Agricultural Products Act). This action would permit the packing or importation of prepared mustard in container sizes currently not available in Canada.

The Processed Products Regulations prescribe standard container sizes for processed fruit and vegetable products. Container sizes for some prepackaged food products are regulated to make it easier for consumers to make informed buying decisions. Standard container regulations also protect consumers from some forms of deceptive packaging practices. Prepared mustard usage by retail consumers, however, is not a significant source of dietary nutrients or even a significant proportion of the average food budget. There are no specific composition or labelling requirements applicable to prepared mustard in these Regulations and thus the protection provided is minimal.

Through discussions with Canadian importers, manufacturers and users of prepared mustard, it was determined that container size regulations for prepared mustard were not contributing to orderly marketing or consumer protection as is the purpose of the standard container regulations, and should be deregulated. This amendment deregulates standard container sizes for prepared mustard. This change will allow manufacturers and importers to market this product more freely, and is not expected to have an impact on the level of consumer protection provided by standard containers.

Alternatives

1. Maintain the Status Quo

The status quo would require both importers and Canadian processors to continue to use only the container sizes prescribed by the Regulations. As there are no specific composition or labelling requirements applicable to prepared mustard, and as mustard is not a significant source of dietary nutrients nor is it a significant item in the dietary budget, the actual level of consumer protection associated with this item is minimal. The cost to processors, consumers and the inspection service is, therefore, not justified.

2. Expand the List of Regulated Container Sizes

An alternative to maintaining the status quo is expansion of the list of regulated container sizes to include those currently not available in Canada but commonly used in other countries. However, such regulations would maintain the disadvantages of regulated container sizes as well as contributing to container proliferation which limiting the numbers of standard containers was supposed to control.

Limiting the number of container sizes impedes market development and innovation because of the time and expense involved in test marketing and changing regulations. Increasing the number of container sizes would also require added scrutiny by regulatory agencies and increase costs for domestic inspection and import monitoring which also may impede trade. This regulation does not provide significant benefits for the majority of consumers; therefore, enforcement costs are unnecessary.

3. Deregulation — Preferred Option

There does not appear to be a practical benefit for the industry as a whole, nor for consumers, in maintaining a standard container requirement with respect to prepared mustard. The only reasonable option is deregulation.

Deregulation will permit the industry to respond efficiently to consumer demands. It will also remove international trade constraints, particularly between Canada and the U.S.A. Domestic producers of prepared mustard who engage in interprovincial or international trade would no longer need to obtain annual federal registration in order to pack prepared mustard, nor to obtain and pay for label registration.

Benefits and Costs

Canadian importers and manufacturers may gain greater access to suitable products, and opportunities for marketplace differentiation for their products as well as possible reduced purchasing costs. Consumers may benefit from the opportunity to buy containers of a size more suitable to their individual needs and perhaps some cost savings.

The only costs are those of the process necessary to amend the Regulations and the minimal amount of cost recovery fees which would not be collected by the Agency as a result of this deregulation. The cost recovery fees in this regard are estimated to be less than $2,000 annually.

Based on Treasury Board's definition of "major" or "significant" regulatory amendments, this is not considered significant and, therefore, a full benefit-cost analysis is not warranted.

Consultation

Extensive discussions were held with Canadian importers, manufacturers and users (registered and non-registered establishments) of prepared mustard. In addition to the initial written survey conducted by the company that proposed this amendment, where 20 of the 30 respondents supported the initiative, the CFIA contacted 54 of the interested parties. Due to the fact that many of the same parties were consulted in the CFIA survey as the initial survey only eight stakeholders responded to the CFIA survey. CFIA circulated a written survey and will be posting the final proposed results of consultations on the Agency Web site. Seven of the eight respondents were in favour of deregulating container sizes for prepared mustard. The one company not in favour (a company not registered under these Regulations) did not offer an explanation although this was specifically requested in the survey.

The Consumers Association of Canada (CAC) did not respond to the CFIA on this issue, although they had provided a response to the initial survey where they neither objected nor supported the initiative. At that time the CAC had begun examining policies which they had developed over the years in response to consumer concerns and, in that regard, will be consulting with their Provincial Food Chairs with regard to matters such as this issue. The CAC has traditionally supported standard container size regulations; however, CAC has recently taken a more liberal stance on this issue with the complete deregulation, during the past 12 months, of container sizes for dairy products.

Compliance and Enforcement

Since this is a deregulation, there are no compliance issues.

Contact

J. F. Standish, National Manager, Processed Products Section, Food of Plant Origin Division, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario K1A 0Y9, (613) 225-2342 (Telephone), (613) 228-6632 (Facsimile), jstandish @em.agr.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 32 of the Canada Agricultural Products Act (see footnote a), proposes to make the annexed Regulations Amending the Processed Products Regulations.

Interested persons may make representations concerning the proposed Regulations within 15 days after the date of publication of this notice. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice and be sent to Mr. J.F. Standish, National Manager, Processed Products Section, Food of Plant Origin Division, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario, K1A 0Y9. Tel.: (613) 225-2342 (4725); Fax: (613) 228-6632.

Ottawa, October 19, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE PROCESSED PRODUCTS REGULATIONS

AMENDMENTS

1. Section 23(see footnote 2) of the Processed Products Regulations(see footnote 3) is repealed.

2. Subsection 25(3)(see footnote 4) of the Regulations is replaced by the following:

(3) Containers of a size smaller than the smallest size specified in Table III to Schedule III may be used to pack the fruit juices, jams, jellies, marmalades, grape juice, concentrated grape juice, grape juice from concentrate, pickles, relishes, chutneys, olives, horseradish sauce, creamed horseradish and creamed seafood sauces set out in that Table if the containers bear the registered labels required by these Regulations.

3. Subsection 56(2)(see footnote 5) of the Regulations is replaced by the following:

(2) Subject to subsection (3) and section 57, no person shall export out of Canada any food product or any food product of a class for which standards have been established under these Regulations as set out in Schedule II or any vegetable soup, spaghetti in tomato sauce, horseradish sauce, creamed horseradish, creamed seafood sauce, cider vinegar, wine vinegar, infant food or junior food, unless the food product

(a) has been prepared in a registered establishment;

(b) is packed in a container prescribed in Table III to Schedule III; and

(c) is marked as prescribed in Part IV.

4. Subsections 59(1)(see footnote 6) and (2)(see footnote 7) of the Regulations are replaced by the following:

59. (1) Subject to subsection (3) and sections 59.2 and 59.3, no person shall convey from one province to another any food product for which grades are prescribed in Schedule I unless the food product

(a) has been prepared in a registered establishment;

(b) meets the minimum grade prescribed for that food product in Schedule I;

(c) is packed in a container prescribed for that food product in Tables I and II of Schedule III; and

(d) is marked as prescribed in Part IV.

(2) Subject to subsection (3) and sections 59.2 and 59.3, no person shall convey from one province to another any food product or any food product of a class for which standards are prescribed in Schedule II or any vegetable soup, spaghetti in tomato sauce, horseradish sauce, creamed horseradish, creamed seafood sauce, cider vinegar, wine vinegar, infant food or junior food, unless the food product

(a) has been prepared in a registered establishment;

(b) complies with the standards prescribed for that food product in Schedule II;

(c) is packed in a container prescribed for that food product in Table III of Schedule III; and

(d) is marked as prescribed in Part IV.

5. Section 59.3(see footnote 8) of the French version of the Regulations is replaced by the following:

59.3 Le produit alimentaire non étiqueté ou non marqué conformément à la partie IV peut être acheminé d'une province à une autre si l'expéditeur fournit la preuve qu'il sera étiqueté ou marqué à son point de destination en conformité avec le présent règlement.

6. Subsections 60(1)(see footnote 9) and (2)(see footnote 10) of the Regulations are replaced by the following:

60. (1) Subject to subsection (3), no person shall import into Canada any food product for which grades are prescribed in Schedule I unless the food product

(a) meets the minimum grade prescribed for that food product in Schedule I;

(b) subject to section 25, is packed in a container prescribed for that food product in Table I or II of Schedule III; and

(c) is marked as prescribed in Part IV.

(2) Subject to subsection (3), no person shall import into Canada any food product or any food product of a class for which standards are prescribed in Schedule II or any vegetable soup, spaghetti in tomato sauce, horseradish sauce, creamed horseradish, creamed seafood sauce, cider vinegar, wine vinegar, infant food or junior food, unless the food product

(a) complies with the standards prescribed for that food product in Schedule II;

(b) subject to section 25, is packed in a container prescribed for that food product in Table III to Schedule III; and

(c) is marked as prescribed in Part IV.

7. Item 21(see footnote 11) of Table III of Schedule III to the Regulations is repealed.

COMING INTO FORCE

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

[44-1-o]

Regulations Amending the Seeds Regulations

Statutory Authority

Seeds Act and Canada Agricultural Products Act

Sponsoring Agency

Canadian Food Inspection Agency

REGULATORY IMPACT ANALYSIS STATEMENT

Description

In December 1996, the Seeds Regulations under the Seeds Act were amended to create a new Schedule called Part V — Release of Seed (SOR/DORS/97-9).

These Regulations were promulgated to allow for the testing of seeds (plants) with novel traits (PNTs) in field trials under controlled (confined) conditions and to provide a mechanism for a thorough science based assessment of the PNTs prior to unconfined release with respect to their safety in the environment, including any risk to human health.

The 1996 Regulations under the Seeds Act met Environment Canada's requirements for equivalency under the Canadian Environmental Protection Act, 1988.

Under the existing Part V, both confined and unconfined release of PNTs into the environment are regulated. The biotechnology industry (researchers in private companies, universities, other public institutions) use the confined release system to conduct scientific research on their PNTs using conditions which are intended to minimize the risk of their PNTs from escaping into the environment prior to a complete environmental risk assessment being conducted by the Canadian Food Inspection Agency (CFIA).

Although the basic core information requirements for conducting confined field trials (confined release) of PNTs are contained in Part V (Subsections 110(1) and (2)), detailed scientific requirements are contained in Agency Guidelines and Directives.

These guidelines complement the Regulations by allowing flexibility as needed to accommodate both the range of crop species and the range of novel traits being tested under confinement as well as products with novel traits resulting from future technologies.

For the most part, researchers have met the terms and conditions imposed by the CFIA on each of the trials. However, experience has shown that Part V needs to be expanded in order to provide clarity to persons engaged in a confined field trial about their responsibilities and about the consequences of non-compliance should it occur.

The proposed regulatory amendments will clearly put the onus on those persons being authorized to conduct confined field trials or persons carrying out the field trials on their behalf (such as subcontractors and growers) to prevent PNTs from becoming livestock feed or entering any food for humans. The amendments will also clearly establish that those persons who are engaged in a confined field trial are responsible for the costs of the disposal of PNTs should the confined release be stopped, and the costs of all remedial actions required in the event of an accidental release of PNTs.

The amendments will also expressly set out the authority to deny an authorization to conduct confined trials where it is believed that an applicant may not comply with the conditions required for the confined trials. This authority could be used, for example, in cases where an applicant has a history of breaching terms and conditions of confined field trials.

The timing of this regulatory amendment is important to the CFIA because the public interest would be served through the clarification of the system for regulating products of biotechnology. Such clarification would include that the system is based on science, is legally enforceable and minimizes the risk to the environment, human and animal health. Since the Regulations have been in place (December 1996) the CFIA has overseen over 2000 confined field trials and authorized 15 PNTs for unconfined environmental release. The CFIA has not found any significant adverse environmental effects from these confined or unconfined releases. Part V of the Seeds Regulations will continue to provide the CFIA with legislative authority to protect the Canadian environment.

The Agency is also using this opportunity to make a miscellaneous amendment to the definition of toxic in Part V in order to maintain the equivalency of the Seeds Regulations to the Canadian Environmental Protection Act (CEPA) which was amended in 1999.

Alternatives

1. Regulation Amendment

Presently the biotechnology industry is regulated via a combination of Seeds Regulations (Part V) and Guidelines (Regulatory Directives). Although detailed scientific information requirements will still remain in Regulatory Directives after Part V is amended, several of the existing Terms and Conditions in authorizations for confined releases will be strengthened from an enforcement standpoint by being spelled out in Regulations. As a result of the regulatory changes, persons engaged in a confined field trial will clearly understand their responsibilities and will have to review and adjust their own control procedures used in conducting confined trials.

2. Policy (no change)

To date the biotechnology industry has been cooperative in attempting to meet a high level of compliance with Terms and Conditions under confined field release authorizations. However, if there are compliance problems, there is no express authority under the present Regulatory Directives to refuse an applicant with poor trial compliance from conducting future trials. There is also nothing in the Directives that legally puts the responsibility on the person engaged in confined field trials for the costs of corrective actions, with regard to a release. These types of authorities must be established as regulations to be effective.

3. Deregulate (No regulation under the Seeds Act and Regulations)

If the CFIA deregulated Part V of the Seeds Regulations, the biotechnology sector would immediately become subject to similar conditions or restrictions on PNTs under the Canadian Environmental Protection Act by Environment Canada. Thus there would be no cost saving or efficiencies to either the federal government or the industry. In fact, it would likely cost the government more money as Environment Canada has no expertise or experienced staff in regulating PNTs and would have to establish a new office to conduct environmental assessments on PNTs. CFIA and formerly AAFC (Agriculture and Agri-Food Canada) have experience in regulating PNTs and have been doing so since 1988, originally at the request of the industry (eight years prior to Part V of the Seeds Regulations being promulgated). Also, the public would oppose the government's deregulation of PNTs as there would be negative national and international implications.

Benefits and Costs

These regulation amendments will have little cost impact. The overall intent of this regulatory proposal is not to implement new costs for the biotechnology industry but rather to clarify for persons engaged in a confined field trial what their responsibilities are and what the consequences of non-compliance would be, should it occur.

However, one part of the amendment, namely the ability to refuse to authorize the conduct of confined trials is new. If this happened and a company was refused authorization to conduct confined trials for a period of a few years, it would mean that the particular company's field trial research program in PNTs would be stopped in Canada until such time as they could demonstrate an acceptable compliance plan.

It is difficult to assess how much this would cost a company as it would depend upon what the crop and the trait were. However, the costs to an individual plant breeding company of being prevented from conducting field trials on certain PNTs for several years, would be more than offset by the potential long term immeasurable damage to the Canadian environment, if the trait was one that could spread to weedy relatives or destroy non-target organisms or negatively affect biodiversity. This restriction on a company's ability to conduct confined trials would serve to protect the environment, the farming community, other researchers programs and the biotechnology industry as a whole.

Consultation

Consultations on the proposed changes have covered a wide range of interests from consumers, growers, provinces and other governments, seed and biotech companies and some commodity organizations.

Most of the consultation was conducted in the form of presentations to and discussions with interested parties. This included the Canadian Seed Growers' Association, Provincial Departments of Agriculture, Canadian Seed Trade Association, Canola industry members (farmers, growers, processors, trade), BIOTECanada, Crop Protection Institute of Canada, Animal and Plant Health Inspection Service of the United States Department of Agriculture. All of these organizations provided verbal support or no objection to the proposed changes.

In the case of addressing concerns of environmentalists and public interest groups, presentations were not made directly, but rather the proposed changes were sent by electronic mail to both the Canadian Environmental Network (CEN) and the Consumers Association of Canada (CAC). Both of these organizations distributed the proposals through their extensive electronic mail networks. The CAC indicated they had no problem with the changes as they seemed to clarify the Regulations. They did not believe any changes would create difficulties for industry and recommended moving forward with the changes.

The CEN sent the proposals to their biotechnology caucus but received no response from their members which they interpreted as their organization having no specific comments on the proposed changes.

Compliance and Enforcement

These Regulations are enforced by inspection staff of the Canadian Food Inspection Agency. The Seeds Act provides for penalties if the Regulations are contravened and include fines of up to $25,000.

These Regulations will enhance compliance by providing express authority to refuse authorizations where there are reasonable grounds to believe that an applicant may not comply with the conditions of a confined release.

The CFIA has been inspecting confined trials on an annual basis. These revisions to the Regulations should not create additional enforcement costs for the Agency.

Contact

Dr. Stephen Yarrow, Acting National Manager, Plant Biosafety, Plant Health and Production Division, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario K1A 0Y9, (613) 225-2342, extension 4390 (Telephone), (613) 228-6629 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 4(1)(see footnote b) of the Seeds Act and section 32 of the Canada Agricultural Products Act(see footnote c), proposes to make the annexed Regulations Amending the Seeds Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Dr. Stephen Yarrow, A/National Manager, Plant Biosafety, Plant Health and Production Division, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario, K1A 0Y9. Tel.: (613) 225-2342 (4390); Fax: (613) 228-6629

Ottawa, October 19, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE SEEDS REGULATIONS

AMENDMENTS

1. Subsection 107(2)(see footnote 12) of the Seeds Regulations(see footnote 13) is replaced by the following:

(2) For the purposes of this Part, seed is toxic if it is entering or may enter the environment in a quantity or concentration or under conditions that

(a) have or may have an immediate or long-term harmful effect on the environment or its biological diversity;

(b) constitute or may constitute a danger to the environment on which life depends; or

(c) constitute or may constitute a danger in Canada to human life or health.

2. Subsection 109(1)(see footnote 14) of the Regulations is replaced by the following:

109. (1) Subject to subsections (2) to (4), no person shall undertake either the confined release or unconfined release of seed unless

(a) notification of the proposed release has been provided in writing to the Minister, accompanied by the information set out in section 110; and

(b) the Minister has authorized the release under section 111.

3. (1) The portion of subsection 111(1)(see footnote 15) of the Regulations before paragraph (a) is replaced by the following:

111. (1) Subject to subsection (3), on receiving the notification provided under paragraph 109(1)(a), the Minister shall, after considering all relevant matters, including the information provided under that paragraph, and after evaluating the potential impact on and risk to the environment, including the potential impact on and risk to human health, posed by the proposed release

(2) Section 111 of the Regulations is amended by adding the following after subsection (2):

(3) The Minister may decide not to grant an authorization to a person under subsection (1) if the Minister has reasonable grounds for believing that the person may not comply with the conditions that would be imposed under that subsection in respect of the release or the requirements of section 111.1 in respect of the release.

4. The Regulations are amended by adding the following after section 111:

Requirements Applying to Confined Release

111.1 (1) In this section, "feed" and "livestock" have the meanings assigned by section 2 of the Feeds Act.

(2) Every person who is granted an authorization under paragraph 111(1)(a) for the confined release of seed with a novel trait, or who is in charge of carrying out the confined release,

(a) shall prevent the seed and any plants derived from the seed from entering into any feed for livestock, or entering into any food for humans;

(b) shall provide the Agency on request with copies of, or allow the Agency to examine,

(c) shall be responsible for all costs of the actions required to remedy any situation caused by an accidental release of the seed; and

(d) shall be responsible for all costs of disposing of the seed and plants derived from the seed if the Minister requires the person to stop the confined release.

5. Section 112 of the Regulations is amended by adding the following after subsection (1):

(1.1) For greater certainty, the new information referred to in subsection (1) includes new information with respect to the matters described in subsection 110(1) if that new information is in regard to risk to the environment, including risk to human health, that could result from the release.

COMING INTO FORCE

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

[44-1-o]

Regulations Respecting Marine Activities in the Saguenay-St. Lawrence Marine Park

Statutory Authority

Saguenay-St. Lawrence Marine Park Act

Sponsoring Department

Department of Canadian Heritage

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Saguenay-St. Lawrence Marine Park results from the concerted efforts of the Government of Canada and of the Government of Quebec, which led to the creation of two complementary statutes at the federal level, the Saguenay-St. Lawrence Marine Park Act and at the provincial level, the Saguenay-St. Lawrence Marine Park Act. The boundaries of the Park cover an area of 1 138 km² within the Saguenay fjord and the northern section of the St. Lawrence estuary located between Gros-Cap-à-l'Aigle and Les Escoumins. The main objective of the Saguenay- St. Lawrence Marine Park, as indicated in the legislation, is to enhance, for the benefit of present and future generations, the level of protection of the ecosystems of a representative portion of the Saguenay fjord and the St. Lawrence estuary, while encouraging its use for educational, recreational and scientific purposes.

The activity pursued by the greatest number of users within the park area is whale-watching. The region is one of the best sites in Canada for whale-watching due to the presence of the great whales, diversity of species, predictability of whale presence and proximity of ports. Some species in the Park have been designated at risk by the Committee on the Status of Endangered Wildlife in Canada, including the St. Lawrence beluga and the porpoise as well as fin and blue whales. Moreover, the Saguenay fjord offers spectacular vistas, which are attracting an increasing number of visitors.

In 1998, maritime traffic services recorded 9 000 excursions in the Park by fifty or so watercraft engaged in commercial marine observation activities. In addition, recreational boaters, kayakers, pleasure craft, aircraft and transatlantic cruisers are all drawn by the presence of whales and the scenic beauty of the Saguenay fjord. The main concern linked to whale-watching in the Park is the frequency and increasing number of boats of all types in the vicinity of the whales and, in particular, the great whales.

Management of marine observation activities in the Park is currently conducted without an adequate regulatory framework. The protection of whales is now a major concern shared by Park officials and numerous interest groups, including Fisheries and Oceans Canada, local conservation groups, the regional marine observation industry and the public in general.

Regulations pertaining to the management of marine activities in the Saguenay-St. Lawrence Marine Park are, therefore, being established under the federal legislation, the Saguenay- St. Lawrence Marine Park Act. The Regulations will provide one of the major mechanisms permitting the control of these activities to ensure adequate protection of whales.

The Regulations Respecting Marine Activities in the Saguenay-St. Lawrence Marine Park are made up of two parts. The first provides controls for the issuance of permits for commercial marine observation activities, scientific research, shuttle services and the holding of special activities in the Park. The second addresses the behaviour of boat operators engaged in whale watching activities, such as distances to be maintained from whales by boat operators while engaged in whale watching activities.

Alternatives

Without these Regulations, there would be no adequate means of control for the various activities that impact on the marine ecosystem and the marine mammals within the marine park. As such, there are no alternatives other than to establish regulations.

Benefits and Costs

The Regulations will:

— contribute to the achievement of marine park objectives through the management of activities occurring in the Saguenay-St. Lawrence Marine Park;

— enhance the level of protection of ecosystems by ensuring that whales classified as rare or endangered receive increased protection from various marine activities occurring in the Park;

— increase the safety of park users; and

— develop and maintain a positive image of marine observation activities in the Park.

Costs related to issuing permits would be minimal. Fees payable by users will be used solely to recover administrative costs related to the issuance of permits. Administration of the Regulations will be secured by employees, park wardens or enforcement officers currently on strength in the Park.

Consultation

In 1993, public hearings were held regarding development of the marine park where 63 written briefs were filed. The public expressed the need for measures to be taken to ensure protection of the unique marine heritage of the marine park ecosystems.

In 1997, the marine park initiated a joint process to ensure whale protection and long-term management of marine observation activities. This took place with the co-operation of all parties concerned. A lengthy consultation period followed with marine excursion businesses and other interest groups. One of the main conclusions that arose from the consultations and a 1998 workshop demonstrated that there was a strong consensus to establish management measures to ensure the protection of whales and the control of observation activities.

In September 1999, a joint committee on marine observation activities comprising various concerned parties was created. Four subsequent meetings laid foundations to reach a consensus with representatives in the community on various elements of the proposed Regulations.

The Regulations Respecting Marine Activities in the Saguenay-St. Lawrence Marine Park result from commitments from federal and provincial levels of government to co-operate with all concerned interest groups to attain exemplary management of the marine park and the activities conducted within its waters.

Compliance and Enforcement

The park wardens at the Saguenay-St. Lawrence Marine Park will regularly patrol areas in the Park most frequented by whales to ensure compliance with the provisions of the new Regulations. To encourage voluntary compliance, the public will be informed of regulatory requirements by the issuance of an observer awareness guide. As a last resort, charges would be laid for violations of the Regulations under the Saguenay-St. Lawrence Marine Park Act, which carries maximum fines, on summary conviction, of $10 000 for a person and $100 000, in the case of a corporation.

Contacts

Mr. Gerry Doré, Chief, National Parks Legislation and Regulations, Parks Canada, 25 Eddy Street, 4th Floor, Hull, Quebec K1A 0M5, (819) 953-7831 (Telephone), (819) 997-0835 (Facsimile), or Mr. Jean Desaulniers, Chief Warden, Saguenay-St. Lawrence Marine Park, 182 De l'Église Street, Tadoussac, Quebec G0T 2A0, (418) 235-4703 (Telephone), (418) 235-4686 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 17 of the Saguenay-St. Lawrence Marine Park Act(see footnote d), proposes to make the annexed Regulations Respecting Marine Activities in the Saguenay-St. Lawrence Marine Park.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Gerard Doré, Chief, Legislative and Regulatory Affairs, National Parks, Parks Canada Agency, 25 Eddy Street, Hull, Quebec K1A 0M5, fax: (819) 997-0835; or to Jean Désaulniers, Chief Warden, Saguenay-St. Lawrence Marine Park, 182 rue de l'Église, Tadoussac, Quebec G0T 2A0, fax: (418) 235-4686.

Ottawa, October 19, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS RESPECTING MARINE ACTIVITIES IN THE SAGUENAY-ST. LAWRENCE MARINE PARK

INTERPRETATION

1. The definitions in this section apply in these Regulations.

"commercial vessel" means a vessel, other than a kayak, used by a marine tour business or shuttle service to carry passengers or to provide services for compensation. (bateau commercial)

"disturbance of a marine mammal" means any interruption, alteration or disruption of the normal behaviour of a marine mammal, in particular its social, swimming, breathing, diving, resting, feeding, nursing or reproductive behaviour, and includes separating a marine mammal from a group or passing between an adult and a young. (dérangement d'un mammifère marin)

"endangered marine mammal" means a species or population of marine mammals that is designated as endangered or threatened in the List of Canadian Species at Risk, May 2000, published by the Committee on the Status of Endangered Wildlife in Canada, as amended from time to time. (mammifère marin en voie de disparition)

"marine mammal" means any cetacean or pinniped. (mammifère marin)

"marine tour business" means any trade, industry, employment or service, whether or not for profit, relating to the observation of plants, animals or the landscape or seabed of the park or cultural resources in the park from the water or air, including excursions, cruises, fishing, diving, kayaking and flights over the park. (entreprise d'excursions en mer)

"operator" means the owner or person who has the command and control of a vessel or aircraft or the holder of a permit under which the vessel is authorised. (exploitant)

"permit" means a marine tour business permit, shuttle service permit, scientific research permit or special activity permit issued by the Minister pursuant to subsection 10(1) of the Act. (permis)

"shuttle service" means a shuttle service that is operated for the purpose of carrying passengers by water for compensation. (service de navette)

"special activity" means a planned, temporary activity or event held in the park, including parades, regattas, shows, film production and promotion and sports events. (activité spéciale)

"specific protection zone" means any of the zones set out in the schedule. (zone de protection spécifique)

"vessel" means any description of watercraft used or capable of being used for navigation, without regard to method or lack of propulsion, and includes air cushion vehicles. (bateau)

"year" means a period of 12 months beginning on April 1. (année)

APPLICATION

2. (1) The prohibitions set out in these Regulations do not apply to

(a) the superintendent, a park warden, an enforcement officer or a peace officer in the discharge of their duties;

(b) subject to subsection (2), the holder of any of the following licences issued by the Department of Fisheries and Oceans when the holder is engaged in fishing the species and in the activity for which the licence is issued:

(c) subject to subsection (2), the operator of a cargo ship as defined in the Canada Shipping Act; and

(d) any person acting under an agreement with or instructions from the Minister for the purposes of marine mammal protection, public safety, environmental protection or for park management.

(2) Section 17 applies to a person referred to in paragraph (1)(b) and sections 12 and 17 in respect of the operator of a vessel referred to in paragraph (1)(c).

PERMITS

General

3. No person shall operate a marine tour business or shuttle service, conduct scientific research or hold a special activity in the park unless the person is the holder of a permit or is an employee of the holder of a permit and does so in accordance with any conditions that may be specified in the permit.

Application for Permit

4. (1) An application for a permit shall be in writing and include

(a) the name, address and telephone number of the applicant and, if they differ, the applicant's business name, address and telephone number;

(b) information respecting the equipment, including the number of vessels and their registration or listing numbers, the applicant uses or intends to use;

(c) a description of any area of the park in which the applicant operates or intends to operate;

(d) a copy of any documentation relevant to the applicant's ability to carry out the activity for which the permit is sought;

(e) if the applicant intends to use pilots or guides, a list of their names and a summary of their training or qualifications;

(f) in the case of an application for a marine tour business or shuttle service permit, the types of goods or services the applicant intends to offer;

(g) if applicable, a description of the proposed scientific research or special activity and the objectives to be attained;

(h) the expected duration of the proposed scientific research or special activity and the date, time and place at which it is to be conducted or held and, in the case of a marine tour business permit having a duration of 10 days or less, the dates for which the permit is required; and

(i) any other relevant information.

(2) A permit holder shall immediately notify the Minister of any change to the information provided in the application for the permit.

Inspection

5. The holder of a marine tour business or shuttle service permit shall allow a park warden or enforcement officer to inspect any commercial vessel authorized under the permit at any reasonable time for the purpose of monitoring compliance with the conditions specified in the permit.

Suspension and Revocation of Permits

6. (1) The Minister may suspend a permit if the permit holder fails to comply with a condition specified in the permit or has allegedly committed an offence under these Regulations or has failed to inform the Minister of any change to the information provided in the application for a permit.

(2) The Minister shall reinstate a suspended permit

(a) if the breach that led to the suspension has been corrected;

(b) after a period of 30 days from the date of the suspension, unless proceedings have been instituted before the end of that period in respect of the alleged offence; or

(c) after the permit holder has been found not guilty of the alleged offence.

(3) The Minister may revoke a permit if

(a) the permit holder is found guilty of an offence under these Regulations; or

(b) except where the permit was reinstated under paragraph (2)(b) or (c), the permit has been suspended three times during the period for which it was issued.

(4) The holder of a permit that has been suspended may not obtain or be in possession of any other permit during the period of suspension.

(5) The holder of a permit that has been revoked may not obtain or be in possession of any other permit during the 12-month period after the date of the revocation.

Expiry, Amendment and Transfer of Permits

7. A permit expires on the earliest of

(a) the date stated in the permit,

(b) the date of revocation, if any, of the permit, or

(c) the date on which the marine tour business or shuttle service is sold or transferred, unless the permit is transferred.

8. The number of vessels authorized under a marine tour business permit may be reduced if the business has not operated the total number of vessels authorized under its permit for a period of three consecutive years to the number of vessels operated during that period.

9. (1) A marine tour business or shuttle service permit may be transferred if

(a) the permit holder notifies the Minister, in writing, of

(b) the permit holder obtains the Minister's approval.

(2) The Minister shall approve the transfer of the permit if the proposed changes will not affect the conditions of the permit.

Scientific Research Flag

10. (1) The Minister may provide the holder of a scientific research permit with a flag that indicates a vessel is being used for scientific research, for each vessel authorized under the permit.

(2) The holder of a scientific research permit shall fly the flag provided, so that the vessel can be clearly identified while it is being used for scientific research.

Maximum Number of Commercial Vessels

11. (1) Up to 54 commercial vessels in permits having a duration of more than 10 days, may be authorized by the Minister to operate in the park on a yearly basis and up to five additional commercial vessel, in permits having a duration of ten days or less, may be authorized by the Minister to operate in the park on any one day.

(2) Commercial vessels authorized in a shuttle service permit are not included in the limits referred to in subsection (1).

PROHIBITED CONDUCT AND CONTROLLED ACTIVITIES

Disturbance of Marine Mammals

12. (1) No person shall engage, in the park in behaviour that may kill or injure a marine mammal or cause the disturbance of a marine mammal.

(2) The operator of a vessel that is involved in an accident in which a marine mammal is killed or injured or that collides with a marine mammal shall report the incident immediately to a park warden or an enforcement officer.

Distance Requirements

13. (1) The operator of a vessel may not approach within 200 m from a cetacean either through the use of its motors or the winds, waves or currents.

(2) The operator of a vessel may not place a vessel within the path of a cetacean so that the cetacean will pass within 200 m of the vessel.

(3) If a cetacean approaches within 200 m of a vessel, the operator of the vessel shall maintain the vessel in a stationary position until the cetacean has dived towards the seabed or moved more than 200 m from the vessel.

(4) The operator of a vessel shall maintain a minimum distance of 400 m from an endangered marine mammal.

14. If a vessel is between 400 and 200 m from a cetacean, the operator shall not

(a) stop or start the vessel, or change its direction, in a repetitive manner; or

(b) operate the vessel at a speed greater than the minimum required to manoeuvre the vessel.

15. No person shall dive or swim within a distance of less than 200 m from a cetacean or 400 m from an endangered marine mammal.

16. No aircraft shall fly over the park at an altitude of less than 2,000 feet (609.6 m) from the surface of the water or take off or land in the park unless authorized to do so by the Minister pursuant to subsection 10(1) of the Act.

Speed Limits

17. (1) No person shall operate a vessel in the park at a speed greater than 20 knots.

(2) The operator of a vessel, other than a cargo ship as defined in the Canada Shipping Act, shall not operate the vessel at a speed greater than 10 knots in a specific protection zone.

18. If the operator of a vessel encounters an endangered marine mammal unexpectedly, closer than 400 m, the operator shall reduce its speed to a speed no greater than the minimum speed required to manoeuvre the vessel.

Specific Protection Zone

19. The operator of a vessel may not operate the vessel in a specific protection zone for a period of more than one hour, and shall allow at least one hour to elapse before re-entering the zone.

COMING INTO FORCE

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

SCHEDULE
(Sections 1, 17 and 19)

SPECIFIC PROTECTION ZONES

ZONE 1:

Starting from point 01, located north-east of the Banc de l'Île Rouge, having the geographical coordinates 48E06.869' N latitude and 069E31.034' W longitude, following a direction of 238E true over a distance of approximately 2.32 nautical miles to point 02 having the geographical coordinates 48E05.645' N latitude and 069E33.981' W longitude.

From point 02 following a direction of 180E true over a distance of approximately 0.60 nautical miles to point 03 having the geographical coordinates 48E05.050' N latitude and 069E33.977' W longitude.

From point 03 following a direction of 270E true over a distance of approximately 1.5 nautical miles to point 04 having the geographic coordinates 48E05.039' N latitude and 069E36.240' W longitude.

From point 04 following a direction of 336E true over a distance of approximately 1 nautical mile to point 05 having the geographic coordinates 48E05.992' N latitude and 069E36.856' W longitude.

From point 05 following a direction of 000E true over a distance of approximately 0.50 nautical mile to point 06 having the geographic coordinates 48E06.503' N latitude and 069E36.855' W longitude.

From point 06 following a direction of 023E true over a distance of approximately 1.42 nautical miles to point 07 having the geographic coordinates 48E07.818' N latitude and 069E35.943' W longitude.

From point 07 following a direction of 057E true over a distance of approximately 2.99 nautical miles to point 08 having the geographic coordinates 48E09.434' N latitude and 069E32.179' W longitude.

From point 08 following a direction of 163E true over a distance of approximately 2.68 nautical miles to point 01.

The zone having a perimeter of approximately 13 nautical miles.

ZONE 2:

Starting from point 01, near pointe Sauvage located at the mouth of the Petites Bergeronnes River, having the geographic coordinates 48E12.856' N latitude and 069E33.797' W longitude, following a direction of 163^o true over a distance of approximately 3.59 nautical miles to point 02 having the geographic coordinates 48E09.434' N latitude and 069E32.179' W longitude.

From point 02 following a direction of 237E true over a distance of approximately 2.99 nautical miles to point 03 having the geographic coordinates 48E07.818' N latitude and 069E35.943' W longitude.

From point 03 following a direction of 314E true over a distance of approximately 1.40 nautical miles to point 04 having the geographic coordinates 48E08.712' N latitude and 069E37.501' W longitude.

From point 04 following a direction of 013E true over a distance of approximately 1.54 nautical miles to point 05 having the geographic coordinates 48E10.212' N latitude and 069E36.987' W longitude.

From point 05 following a direction of 033E true over a distance of approximately 2.76 nautical miles to point 06 having the geographic coordinates 48E12.516' N latitude and 069E34.729' W longitude.

From point 06 following a direction of 061E true over a distance of approximately 0.70 nautical mile to point 01.

The zone having a perimeter of approximately 13 nautical miles.

ZONE 3:

Starting from point 01, offshore of the municipality of Bergeronnes, having the geographic coordinates 48E08.978' N latitude and 069E30.383' W longitude, following a direction of 44E true over a distance of approximately 5.39 nautical miles to point 02 having the geographic coordinates 48E12.852' N latitude and 069E24.766' W longitude.

From point 02 following a direction of 120E true over a distance of approximately 0.89 nautical mile to point 03 having the geographic coordinates 48E12.422' N latitude and 069E23.634' W longitude.

From point 03 following a direction of 224E true over a distance of approximately 5.39 nautical miles to point 04 having the geographic coordinates 48E08.531' N latitude and 069E29.227' W longitude.

From point 04 following a direction of 300E true over a distance of approximately 0.89 nautical mile to point 01.

The zone having a perimeter of approximately 12.5 nautical miles.

[44-1-o]

Footnote 1

SOR/99-120

Footnote a

R.S., c. 20 (4th Supp.)

Footnote 2

SOR/93-496

Footnote 3

C.R.C., c. 291; SOR/82-701

Footnote 4

SOR/87-133

Footnote 5

SOR/87-372

Footnote 6

SOR/88-383

Footnote 7

SOR/88-383

Footnote 8

SOR/88-383

Footnote 9

SOR/97-300

Footnote 10

SOR/97-300

Footnote 11

SOR/89-266

Footnote b

S.C. 1994, c. 26, s. 65

Footnote c

R.S., c. 20 (4th Supp.)

Footnote 12

SOR/97-9

Footnote 13

C.R.C., c. 1400

Footnote 14

SOR/97-9

Footnote 15

SOR/97-9

Footnote d

S.C. 1997, c. 37

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