FEDERAL REG

SOR/2016-202: Regulations Amending the Atlantic Pilotage Tariff Regulations — Newfoundland and Labrador Non-Compulsory Areas

REGISTRATION OF FEDERAL REGULATION - VIA OIC DATABASE, PRIOR TO PART II OF THE GAZETTE

Registered
June 22, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues In accordance with recommendations from the Canadian Transportation Agency (the CTA) and its customers, the Atlantic Pilotage Authority (the Authority) strives to be financially self-sufficient on a port-by-port basis, as well as for the Authority as a whole. After analyzing projections for coming years, ... (Click for more)


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Published on June 22, 2016

Bill Summary

SOR/2016-202: Regulations Amending the Atlantic Pilotage Tariff Regulations — Newfoundland and Labrador Non-Compulsory Areas

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues In accordance with recommendations from the Canadian Transportation Agency (the CTA) and its customers, the Atlantic Pilotage Authority (the Authority) strives to be financially self-sufficient on a port-by-port basis, as well as for the Authority as a whole. After analyzing projections for coming years, the Authority is adjusting tariffs in the non-compulsory areas of Newfoundland and Labrador to increase the likelihood that pilots are available to the customers when requested. The changes to the non-compulsory rates do not have a significant effect on the Authority’s finances, but are meant to encourage pilots to be licensed for the areas and to be willing to do these assignments when industry requests them. Background The Authority is responsible for administering, in the interests of safety, an efficient pilotage service within the Canadian waters in and around the Atlantic Provinces. As required by the Pilotage Act, 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. Objectives The objective of this regulatory amendment is to increase pilotage charges in certain non-compulsory areas in order to maintain the ability of the Authority to meet its mandate to operate, in the interest of safety, an efficient pilotage service within the Atlantic region; encourage pilots to be licensed for non-compulsory assignments and provide the services when requested by industry; and be mindful of the economic realities of the region by ensuring that the tariff increases are within the ability of the shipping industry to absorb while allowing the ports to remain competitive. Description These Regulations will be amended by increasing the charges to reflect inflationary increases since the last amendment in 1999. The tariff charges will be increased by 10% in 2016, followed by a further 10% increase on January 1, 2017. There are numerous classifications of charges in the Regulations, and each will be increased by the stated percentages. “One-for-One” Rule The “One-for-One” Rule does not apply to this amendment, as there is no change in administrative costs to business. Small business lens The small business lens does not apply to this amendment. Consultation The Authority conducts extensive consultation with local and national shipping interests, and committees have been formed for each of the major pilotage areas and with the Shipping Federation of Canada. At least two meetings are held with each committee annually, in which service levels, operational issues, future requirements, and financial issues are discussed. The Shipping Federation of Canada, on behalf of its members, had written to the Authority to indicate that it considered this tariff amendment to be fair and reasonable when it was part of the 2013 tariff proposal. Separate meetings are held with the Canadian Shipowners Association, individual companies, and key players in the industry throughout the year. The sharing of information proves valuable to the Authority in forecasting activity levels in each port. These amendments were prepublished in the Canada Gazette, Part I, on March 19, 2016, followed by a 30-day comment period to provide interested persons with the opportunity to make comments or to file a notice of objection. No comments were received and no notices of objection were filed. Rationale The Newfoundland and Labrador non-compulsory tariff has not been increased since 1999. The Authority is increasing this tariff in two stages to provide an inflationary increase since the last amendment. The first increase will be 10% in 2016, followed by a further 10% increase planned in 2017. It would be important to note that the consumer price index (CPI) grew by more than 34% since 1999. This tariff is applied to non-compulsory assignments where users are not required by regulation to use pilotage service. Pilots volunteer to be licensed for these areas, as such licensing is not a direct requirement of their employment. In order to have pilots available when industry desires non-compulsory pilotage service, the tariff and corresponding pilot remuneration has to be deemed reasonable. This tariff increase will increase revenues by $14,000 in 2016 and $15,000 in 2017, 85% of which will be paid to pilots for performing these assignments. The Newfoundland and Labrador non-compulsory revenue will be approximately 1.3% of the overall revenue for the Authority in 2016. Implementation, enforcement and service standards 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. Section 48 of the Pilotage Act stipulates that every person who fails to comply with the Act or regulations is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000. Contact Captain Sean Griffiths Chief Executive Officer Atlantic Pilotage Authority Cogswell Tower, Suite 910 2000 Barrington Street Halifax, Nova Scotia B3J 3K1 Telephone: 902-426-2550 Fax: 902-426-4004 Footnote a S.C. 1998, c. 10, s. 150 Footnote b R.S., c. P-14 Footnote c R.S., c. P-14 Footnote d R.S., c. P-14 Footnote 1 SOR/81-710

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