Government of Canada
Symbol of the Government of Canada


Vol. 135, No. 23 — June 9, 2001

Regulations Amending the Newfoundland Fishery Regulations

Statutory Authority

Fisheries Act

Sponsoring Department

Department of Fisheries and Oceans

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Newfoundland Fishery Regulations (the Regulations) are made under the authority of the Fisheries Act and control recreational and commercial fishing in the inland waters of Newfoundland and Labrador.

A significant number of rivers in Newfoundland and Labrador have discrete populations of large salmon (over 63 cm) which are the primary spawning stock. In these rivers, which are listed in the Salmon Rivers Schedule of the Regulations, angling is only permitted with single barbless artificial flies. In provincial waters not in this schedule, other gear types, such as triple barbed hooks, are permitted.

The use of single barbless hooks, in conjunction with the increasing incidence of voluntary catch and release, allows for a much higher survival rate of salmon. This helps to conserve the resource, allowing angling to continue and preventing the need to close the recreational fishery.

The current amendment proposes the addition of nine river systems in southern Labrador to the Salmon Rivers Schedule contained in the Regulations. The river systems, which include all tributaries, are: White Bear River, North River, Dykes River, Paradise River, Black Bear River, St. Lewis River, Alexis River, St. Charles River and Port Marnham Brook.

Until the fall of 2000, these nine river systems were only accessible by fly-in anglers and, therefore, the management of the salmon in those systems was not a critical issue since angling pressure was minimal. However, in the fall of 2000, the first section of the new Trans Labrador Highway, from Red Bay to Mary's Harbour was opened to traffic. The new stretch of highway provides much easier access to these nine rivers.

As a result of the easier access provided by the new road, an increase in the number of anglers to these salmon rich Labrador rivers is anticipated for the 2001 fishing season. Therefore, it is necessary to add these nine river systems to the Salmon Rivers Schedule in order to permit better management and conservation of the indigenous salmon by the application of close times and the single barbless artificial fly restriction in addition to the existing licensing requirements, quotas and voluntary catch and release.

Alternatives

Given the increased access associated with the new highway, maintaining the status quo was rejected as an alternative because it would not provide for the management of the indigenous salmon which is vital to maintaining a healthy fishery. The addition of the nine river systems to the Salmon Rivers Schedule is the only option which will aid in achieving current salmon conservation objectives for the fish in these rivers and further the establishment of a flexible salmon management regime.

Benefits and Costs

As a result of this amendment, the Department of Fisheries and Oceans (DFO) will be better able to monitor and manage the salmon stocks in these nine river systems. The application of close times and the barbless artificial fly restriction as well as voluntary catch and release should help offset the increased fishing anticipated as access is facilitated by the new highway.

Anglers will benefit from the establishment of a more flexible management regime which will permit longer fishing seasons within established conservation objectives.

This amendment should also benefit the economy of southern Labrador as the improved access resulting from the new highway brings in more anglers and other tourists. The tourism and outfitting industry may expand due to the demand for additional services.

The costs related to designing and distributing public information and education material and to posting signs on the rivers and the incremental costs related to salmon management and regulatory enforcement in these areas will be managed within the existing DFO budgetary allotments.

Consultation

The scheduling of these salmon rivers in Southern Labrador has been a topic of discussion for a number of years.

In 1997, the Newfoundland and Labrador Government formed a Task Group on Recreational Fishing issues in Southern Labrador. The consultations included meetings in all coastal communities from Cartwright to Lance au Clair in Labrador. The Task Group was lead by a local member of the Labrador House of Assembly and DFO was present at all meetings. The Task Group report, issued in 1998, recommended that the salmon rivers in Southern Labrador be added to the Salmon Rivers Schedule of the Newfoundland Fishery Regulations.

In December 1998, the Labrador Salmonid Advisory Board also recommended the addition of these rivers to the schedule. This Advisory Board is comprised of representatives from provincial government agencies, provincial Aboriginal groups, outfitting companies, commercial and recreational fishing associations, the Atlantic Salmon Federation, the Sandwich Bay Watershed Management Group, the Salmonid Council of Newfoundland and Labrador which represents anglers, the Fish, Food and Allied Workers Union and the Regional Development Association.

Throughout 1999, DFO received requests for the inclusion of these rivers in the Salmon Rivers Schedule from Newfoundland legislators and from the Battle Harbour Development Association. The Department continues to receive such requests and the access provided by the new highway has reinforced stakeholder support for this amendment.

Compliance and Enforcement

While no additional enforcement resources are required by this amendment, existing resources will be re-distributed to cover the areas of Labrador now accessible by the new Trans Labrador Highway. Improved vehicle access will enhance DFO's ability to patrol the inland recreational fisheries in Southern Labrador.

DFO widely distributes an annual Anglers' Guide, which provides a summary of regulatory provisions, listings of scheduled rivers, angling close times for those rivers, gear requirements and maps of fishing zones. The guide is accessible through the DFO's Internet site and is also distributed with each recreational salmon licence so that licence holders are provided with the most up to date information.

In addition to the above, enforcement personnel regularly patrol popular fishing areas giving regulatory information to anglers and issuing warnings of violations. As well, the Fisheries Act prescribes penalties, upon conviction, for contraventions of the Regulations. These may include fines of up to $500,000 and/or court imposed forfeitures of fishing gear, catch, vessels and other equipment used in committing the offence. The courts may also impose licence suspensions.

Contacts

Ben Whelan, Regulations Officer, Fisheries Management Branch, Fisheries and Oceans Canada, P.O. Box 5667, St. John's, Newfoundland A1C 5X1, (709) 772-5482 (Telephone), (709) 772-5983 (Facsimile), or Sharon Budd, Regulatory Analyst, Fisheries and Oceans Canada, 200 Kent Street, Ottawa, Ontario K1A 0E6, (613) 993-0982 (Telephone), (613) 990-0120 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 43(see footnote d) of the Fisheries Act, proposes to make the annexed Regulations Amending the Newfoundland Fishery 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 Ben Whelan, Regulations Officer, Fisheries Management Branch, Department of Fisheries and Oceans, P.O. Box 5667, St. John's, Newfoundland, A1C 5X1 (Tel: (709) 772-5482; Fax: (709) 772-5983).

Ottawa, June 7, 2001

RENNIE M. MARCOUX
Acting Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE NEWFOUNDLAND FISHERY REGULATIONS

AMENDMENT

1. Schedule I to the Newfoundland Fishery Regulations(see footnote 1) is amended by adding the following after item 174:

175. St. Charles River and tributary streams, Labrador.

176. St. Lewis River and tributary streams, Labrador.

177. Alexis River and tributary streams, Labrador.

178. Black Bear River and tributary streams, Labrador.

179. Paradise River and tributary streams, Labrador.

180. White Bear River and tributary streams, Labrador.

181. North River and tributary streams, Labrador.

182. Port Marnham Brook and tributary streams, Labrador.

183. Dykes River and tributary streams, Labrador.

COMING INTO FORCE

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

[23-1-o]

Regulations Amending the Yukon Territory Fishery Regulations

Statutory Authority

Fisheries Act

Sponsoring Department

Department of Fisheries and Oceans

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Yukon Territory Fishery Regulations are made under the authority of the Fisheries Act and control all fishing activity in that territory. The current initiative will amend the Regulations to improve the administration of the fishery, to provide for more effective enforcement of the regulations and to promote increased compliance with the regulations.

The Yukon Salmon Committee (YSC) is the primary instrument for salmon management in the Yukon. Among its many functions, the Committee is mandated, under the Umbrella Final Agreement and the Yukon First Nations Final Agreement, to make recommendations to the Minister of Fisheries and Oceans regarding policies for the management of salmon and their habitats, and to seek public input on specific aspects of salmon management.

In 1999, the YSC recommended changes to the Yukon Territory Fishery Regulations that resulted in the establishment of the Salmon Conservation Catch Card as part of the existing angling licence to gather information to aid in the management of the Yukon salmon fishery. The Regulations require anglers to complete the information on the card each time a salmon is caught and, in the fall at the end of that fishing season, the card must be returned to the Department of Fisheries and Oceans (DFO). The YSC and DFO have monitored the operational effectiveness of the catch card program with users of the cards and, after one season of use, have identified one provision that warrants adjustment.

Submission Date for Salmon Conservation Catch Cards

The current Regulations require that catch card holders submit their completed cards no later than October 31 of the year of the card's issue.

After many public meetings and comments from cardholders, it has been determined that since there are still salmon fishing opportunities after October 31, changing the card return date to November 30 would yield more accurate data on the salmon fishery.

Correction of "freshwater fish" definition

In addition to the above, the Standing Joint Committee for the Scrutiny of Regulations has pointed out to DFO a minor discrepancy between the English and French definitions of "freshwater fish". This initiative includes an amendment to correct this discrepancy.

Alternatives

Submission Date for Salmon Conservation Catch Cards

The catch card return date of October 31 was chosen so that data could be compiled for post season review by Departmental Managers and the YSC. Changing the submission date to the end of November will yield more accurate data on the fishery by taking into account fishing that takes place after the current submission date and will likely increase the rate of return of the cards. Moving the date of submission is also the only alternative that would accommodate the needs of the Department and the YSC, and the wishes of stakeholders.

Correction of "freshwater fish" definition

There is no alternative to this amendment.

Benefits and Costs

The proposed Regulations changes will have minimal impact on stakeholders and government. There are no costs associated with the change in submission date for the Conservation Catch Card. It is an administrative change which will aid in monitoring the salmon fishery.

Consultation

In accordance with the Umbrella Final Agreement and Yukon First Nations Final Agreement, the Yukon Salmon Committee conducted public consultations prior to submitting these recommendations for changes to the Yukon Territory Fishery Regulations.

The proposed regulatory changes were published in the Yukon Salmon Committee's newsletter in March 2000 and distributed to all Yukon First Nations, Renewable Resource Councils, various boards and committees, Federal, Territorial, and Municipal Governments, and stakeholders such as the Yukon Fish and Game Association and Yukon Outfitters Association, as well as schools and public information venues.

Public meetings were advertised by radio and newspaper and held in the spring of 2000 in Dawson City, Haines Junction, Old Crow and Whitehorse. Those in attendance agreed with the proposed amendments.

The YSC also conducted a survey during the 2000 Lions Trade Show in Whitehorse. This event is very well attended and the YSC received a great deal of feedback from the public. The survey question was as follows:

"The Yukon Salmon Committee is currently consulting with the public on the future possibility of extending the Catch Card deadline from Oct. 31st to Nov. 30th. Would you support this initiative?"

The results of this question were: 247-yes, 52-no.

The survey, from those who participated, showed an 82 percent support rate for the proposed amendment.

Compliance and Enforcement

No change in enforcement activity is necessary as a result of this regulatory change. The annual Fisheries Regulations Synopsis, produced by the Yukon Territorial Government, will detail the amendment and a public education campaign will provide the necessary information to the public. Compliance will be encouraged by regular patrols at known fishing areas and by notices posted in those locations which outline the changes.

In addition, the Fisheries Act provides that, upon conviction, penalties for contraventions of the regulations may include fines of up to $500,000 and/or court imposed forfeitures of fishing gear, catch, vessels and other equipment used in committing the offence. The courts may also impose licence suspensions.

Contact Persons

Steve Smith, Fishery Officer, Fisheries and Oceans Canada, Yukon/NBC Division, 100-419 Range Road, Whitehorse, Yukon Territory Y1A 3V1, (867) 393-6724 (Telephone), (867) 393-6738 (Facsimile); and Sharon Budd, Regulatory Analyst, Fisheries and Oceans Canada, 200 Kent Street, Ottawa, Ontario K1A 0E6, (613) 993-0982 (Telephone), (613) 990-0120 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 43(see footnote a) of the Fisheries Act, proposes to make the annexed Regulations Amending the Yukon Territory Fishery 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 Mr. Steve Smith, Fishery Officer, Department of Fisheries and Oceans, Yukon/NBC Division, 100-419 Range Road, Whitehorse, YT Y1A 3V1 (Tel.: (867) 393-6724; fax: (867) 393-6738; E-mail: smithsteve@dfo-mpo.gc.ca).

Ottawa, June 7, 2001

RENNIE M. MARCOUX
Acting Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE YUKON TERRITORY FISHERY REGULATIONS

AMENDMENTS

1. Paragraph (g)(see footnote 2) of the definition "freshwater fish" in subsection 2(1) of the Yukon Territory Fishery Regulations(see footnote 3) is replaced by the following:

(g) the subfamily Coregoninae (whitefish and cisco), or

2. Paragraph 7(18)(c)(see footnote 4) of the Regulations is replaced by the following:

(c) submit the Card to the Department no later than November 30 of the year of issue.

COMING INTO FORCE

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

[23-1-o]

Regulations Amending the Boating Restriction Regulations

Statutory Authority

Canada Shipping Act

Sponsoring Departments

Department of Fisheries and Oceans and Department of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Boating Restriction Regulations, made pursuant to the Canada Shipping Act, provide for the establishment of restrictions to boating activities and navigation in Canadian waters. Increased water activities due to population growth and the technical evolution of watercraft have resulted in annual requests for restrictions that promote public safety, protect property near shore and ensure safe navigation. The restrictions can prohibit boats from specified areas, restrict the mode of propulsion used, specify engine power or speed limits, or prohibit water-skiing activities and regattas with respect to location and time.

Each year, individual property owners, associations or committees of cottage or property owners and/or municipalities submit requests for new or amended restrictions to their Designated Provincial Authority (DPA), as defined in the Regulations. The DPA of each province, after review and consultation, then submits the requested restrictions to the Department of Fisheries and Oceans (DFO) for inclusion in the Regulations. DFO provides technical advice to provinces, reviews provincial submissions for technical accuracy, audits submissions for compliance with Federal Regulatory Policy and compiles all provincial submissions into one national package of annual amendments for national consultation. The proposed and final amendments are reviewed by Transport Canada, Marine Safety, with respect to commercial vessels prior to recommendation by the Ministers of Transport and Fisheries and Oceans to the Ministers of the Special Committee of Council for their approval.

This submission includes amendments clarifying the signage requirement for restrictions on waters where power-driven vessels and vessels driven by electrical propulsion may be operated. Clarification of the signage requirement corrects a technical error and assures internal consistency in the Regulations. The Regulations exist at the present time, however there has been some confusion by local authorities as to which sign should be posted for restrictions relating to power driven vessels and vessels driven by electrical propulsion. This confusion may result in non-conforming signage.

The following area specific restrictions were requested only for Ontario, Alberta and British Columbia.

Ontario

In Ontario, four area specific speed limits of maximum 10 km/h address safety concerns on one section of the Trent Severn Waterway and in three narrow sections of lake, one located on Chandos Lake, one on Stoney Lake and one on Jack Lake.

Alberta

In Alberta, the shore line speed limit (applicable in all waters within its boundaries) of maximum 10 km/h within 30 metres from shore is increased to 100 metres from shore for Pigeon Lake. The increase in distance from shore of the shore line speed limit provides better protection for swimmers who tend to go further from shore in this shallow lake. A second provision prohibits power-driven vessels other than vessels driven by electrical propulsion on Swan Lake, a lake considered too small to accommodate larger and faster power boats. The final provision relaxes the existing prohibition of all power boats on Coronation Reservoir to allow vessels driven by electrical propulsion. It will now be easier for seniors that have difficulty handling oar propelled boats to fish on the Coronation Reservoir.

British Columbia

In British Columbia, power driven vessels on Kidd Lake, an area of Cameron Lake and a narrow shallow section of the Elk River are prohibited. Kidd Lake is a small lake where the operation of larger power boats is not considered safe. The prohibition on Cameron Lake is in an area of the lake where a regional water supply intake is located. For the Elk River, the narrow and shallow section is heavily frequented by shallow draft non power-driven vessels where the operation of larger power boats is not considered safe. Area specific speed limits on Columbia Lake address safety concerns as well as concerns related to the convenience of the public.

Alternatives

Matters of navigation and shipping are within federal jurisdiction and these Regulations provide the only mechanism to control boating activities in Canadian waters. The only alternative is the status quo which is unacceptable. The status quo will not improve public safety, protect the quality of drinking water, promote safe navigation or improve boating safety.

Benefits and Costs

These amendments will protect boaters and people involved in shoreline activities by lowering speed limits in some areas and prohibiting certain types of boating in other areas.

A boater's freedom to operate in certain bodies of water will be restricted by these amendments, however, the benefits of improved safety to boaters and people involved in shoreline activities are considered to outweigh the costs.

The only cost to the federal government is in processing the amendments. The administrative costs related to this process are borne by the respective province while costs associated with public consultation at the local level and the posting of appropriate signage once restrictions are in place are borne by the requesting municipalities. Costs for enforcement efforts are shared among the enforcement agencies at the federal, provincial and municipal levels with the majority of these costs being borne by the latter two.

Consultation

These restrictions are at the specific request of local authorities (generally municipalities).

The public consultation process used includes advertisement in local newspapers, posting of signs indicating proposed restrictions being considered at the site and leaflet distribution in the area concerned during the summer period when stakeholders are in the area. This is followed by town hall type meetings and in certain circumstances direct written correspondence to specific stakeholders. This process ensures that persons affected by the proposed Regulations are directly consulted by local authorities, and ensures they have a chance to provide comments and request changes.

A detailed guide, produced by the Coast Guard, on the full process to be followed in order to establish a new boating restriction is widely available from Designated Provincial Authorities, Canadian Coast Guard Offices of Boating Safety across the country, the Boating Safety Web site and through the Boating Safety 1-800 Infoline (1-800-267-6687).

The speed limit restrictions and boating prohibitions contained in these amendments were requested by stakeholders and are fully endorsed by all consulted.

Compliance and Enforcement

Enforcement is by way of summary conviction and ticketing by enforcement officers as defined in the Boating Restriction Regulations. These include the RCMP, provincial police forces and municipal police as well as persons designated by the Minister of Transport and the Minister of Fisheries and Oceans for the purpose of these Regulations, such as municipal inspectors, provincial park wardens, etc.

The Boating Restriction Regulations provide fines up to $500 upon conviction of contraventions. The Contraventions Regulations provide for the issuance of tickets with prescribed fines for specific contraventions under the Boating Restriction Regulations. Also, the Canada Shipping Act provides for penalties upon conviction of up to $2,000.

Current enforcement costs are shared among the enforcement agencies at the federal, provincial and municipal levels. No increase in cost of enforcement is expected.

Contacts

Jean Pontbriand, Office of Boating Safety, Canadian Coast Guard, Department of Fisheries and Oceans, Ottawa, Ontario K1A 0E6, (613) 998-1433 (Telephone), (613) 996-8902 (Facsimile); and Dave Luck, Policy Analyst, Department of Fisheries and Oceans, Ottawa, Ontario K1A 0E6, (613) 990-0199 (Telephone), (613) 990-2811 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 562(see footnote b) of the Canada Shipping Act, proposes to make the annexed Regulations Amending the Boating Restriction 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 Mr. Jean Pontbriand, Office of Boating Safety, Canadian Coast Guard, Department of Fisheries and Oceans, Ottawa, Ontario, K1A 0E6 (Tel: (613) 998-1433; fax: (613) 996-8902).

Ottawa, June 7, 2001

RENNIE M. MARCOUX
Acting Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE BOATING RESTRICTION REGULATIONS

AMENDMENTS

1. Section 2.1(see footnote 5) of the French version of the Boating Restriction Regulations(see footnote 6) is replaced by the following:

2.1 Malgré toute autre disposition du présent règlement, les articles 2.2 à 2.5 s'appliquent aux embarcations de plaisance, y compris les motomarines, utilisées à des fins récréatives dans les eaux canadiennes, sauf celles des Territoires du Nord-Ouest et du Nunavut.

2. Subsection 8(11)(see footnote 7) of the French version of the Regulations is replaced by the following:

(11) Le ministre ou l'autorité provinciale désignée peut suspendre ou annuler la carte d'identité délivrée en vertu du paragraphe (9) si le titulaire ne se conforme pas aux Normes concernant les radeaux fluviaux.

3. Paragraphs 9.1(1)(b)(see footnote 8) and (c)(see footnote 9) of the Regulations are replaced by the following:

(b) the propeller symbol shown under letter D in Table 1 to Schedule VII and crossed by the diagonal bar shown under letter B of that Table indicates that no power-driven vessel or vessel driven by electrical propulsion shall be operated on the waters in respect of which the sign has been placed;

(c) the symbol shown under letter E in Table 1 to Schedule VII, consisting of a propeller superimposed by a gas pump, and crossed by the diagonal bar shown under letter B of that Table, indicates that no power-driven vessel shall be operated on the waters in respect of which the sign has been placed;

4. Item 12(see footnote 10) of Part I of Schedule II to the Regulations under the heading "Central Region" is repealed.

5. Part I of Schedule III to the Regulations is amended by adding the following after item 154:



Item
Column I

Name given by the Gazetteer
of Canada, or description
Column II

Local Name
Column III

General Location
Column IV

Location Reference (Gazetteer of Canada Reference System)
155. Kidd Lake Kidd Lake Merrit 49°55' 120°37'
156. Cameron Slough Cameron Lake 30 km east of Kimberly 49°46' 115°44'
157. Elk River, section of the Elk River between points at coordinates 50°33'30"N, 115°05'20"W and 49°11'57"N, 115°08'51"W Elk River Regional District east of Kootenay 50°00'

6. Part III of Schedule III to the Regulations is amended by adding, under the heading "Central Region", the following after item 20:



Item
Column I

Name given by the Gazetteer of Canada, or description
Column II

Local Name
Column III

Location reference (
Alberta Land Titles Act reference system)
21. Unnamed Reservoir Coronation Reservoir 24-36-11-W4

7. Part III of Schedule III to the Regulations is amended by adding, under the heading "Peace River Region", the following after item 9:



Item
Column I

Name given by the Gazetteer of Canada,
or description
Column II

Local Name
Column III

Location reference
(
Alberta Land Titles Act reference system)
10. Swan Lake Swan Lake 70-25,26-W5

8. Part I of Schedule IV.1 to the Regulations is amended by adding the following after item 25:



Item
Column I

Name given by the Gazetteer of
Canada, or description
Column II

General Location
(where necessary)
Column III

Location reference (Gazetteer of
Canada reference system)
Column IV

Maximum speed in km/h over the ground
26. In Columbia Lake, that part of the channel connecting Columbia Lake to Mud Lake, from a point at coordinates 50°21'10" N, 115°52'47" W to a line drawn between points at coordinates 50°18'02" N, 115°51'47" W and 50°18'08" N, 115°50'49" W, signed; and within 100 metres from the shore on the east side of the lake, between lines running in an east-west direction through points at coordinates 50°16'05" N, 115°51'16" W and 50°12'39" N, 115°50'34" W, buoyed and signed, and south of a line drawn between points at coordinates 50°10'44" N, 115°50'50" W and 50°10'44" N, 115°48'54" W, buoyed and signed. Columbia Lake, south of Invermere 50°15' 115°50' 10

9. Part II of Schedule IV.1 to the Regulations is amended by adding, under the heading "Trent-Severn Waterway", the following after item 1.23:



Item
Column I

Name given by the Gazetteer of
Canada, or description
Column II

Specific Location
Column III

Location reference (Gazetteer of
Canada reference system)
Column IV

Maximum speed in km/h over the ground
1.24 That part of the Trent-Severn Waterway from the approach wall above Lock 28 to Scow Rock
(km 181.85 - 183.05).
44°33'33" N
78°12'31" W to 44°33'19" N
78°13'17" W
44°33' 78°13' 10

10. Part II of Schedule IV.1 to the Regulations is amended by adding, under the heading "Lindsay-Peterborough Area", the following after item 11.10:




Item
Column I

Name given by the Gazetteer of
Canada, or description
Column II


Specific Location
Column III

Location reference (Gazetteer of Canada reference system)
Column IV

Maximum speed in km/h over the ground
11.11 That part of Chandos Lake, known as Gilmour Bay Narrows 44°47.23'
77°57.54' to
44°47.66'
77°57.40'
44°47' 78°57' 10
11.12 That part of Stoney Lake, north of Boshing Narrows, from the mainland to and including the navigation channel between points as described in column II 44°33.56'
78°07.13' to
44°33.80'
78°06.70'
44°33' 78°07' 10
11.13 That part of Jack Lake, known as Jack Lake Narrows 44°41.82'
78°01.22' to
44°41.58'
78°01.51'
44°41' 78°01' 10

11. Part V of Schedule IV.1 to the Regulations is amended by adding the following after item 2.1:



Item
Column I

Name Given by the Gazetteer of
Canada, or Description
Column II

Local Name
Column III

Location Reference (
Alberta Land Titles Act Reference System)
Column IV

Maximum Speed in km/h over the Ground
3. Central Region      
3.1 Pigeon Lake, within 100 metres from shore Pigeon Lake 47-1-W5 10

COMING INTO FORCE

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

[23-1-o]

Regulations Amending the Employment Insurance Regulations

Statutory Authority

Employment Insurance Act

Sponsoring Department

Department of Human Resources Development

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Employment Insurance Act (EI Act) works on basic insurance principles. Claimants must be out of work due to no fault of their own, looking for work while unemployed and report hours worked and total earnings when they go back to work. Clear instructions are given to claimants to do this and the expectations are that most of them will do this as a matter of course.

However, not all claimants report all earnings while they are receiving EI benefits. This may be due to a reporting error or due to deliberately concealing earnings to receive both earnings from an employer and EI benefits at the same time.

Through the years, the way Human Resources Development Canada (HRDC) handled undeclared earnings did not discourage incorrect reporting of earnings. By 1996, it was felt that claimants had begun to look on overpayments due to incorrectly reported earnings as routine and not as an area of great concern. The Government believed that, as part of EI Reform, more needed to be done to deter or prevent incorrect reporting. It chose to impose stricter rules regarding undeclared earnings and to increase the deterrence and prevention aspects of the law. These rules had both educational and punitive elements. They were also expected to reduce the paper burden on employers related to cases of undeclared earnings.

In 1996, HRDC introduced a new Record of Employment to simplify the process of reporting earnings from employees for benefit purposes on the Record of Employment (ROE). To complement this, changes were made to the rules for undeclared earnings that were expected to further reduce the paper burden for employers for investigations. It was also expected that these stricter rules would assist in changing claimant behaviour and reduce the number of cases of undeclared earnings.

HRDC has been doing ongoing monitoring of the impact of Employment Insurance reform. This is to ensure that there are no unintended consequences that unfairly penalize claimants or employers. Changes such as the small weeks initiative, Bill C-32 and Bill C-2 have resulted from this monitoring. The present proposed regulatory change is another example.

Monitoring has shown that, while the simplification of the Record of Employment has significantly reduced employer contacts and the overall paper burden on employers, such has not been the case in respect of employer contacts on undeclared earnings.

As a result of monitoring, HRDC noted and corrected an unintended legislative effect of the undeclared earnings rules and made a change to those rules through a revision of the Employment Insurance Regulations (EI Regulations) [i.e., subsection 15(4) of the EI Regulations amended from December 16, 1999]. The change excluded weeks of no work and no earnings from the period to which undeclared earnings will be assigned. It was believed that this change would remove the main unintended effects of the undeclared earnings rules.

However, ongoing monitoring has found that, despite the regulation change in 1999, there is still a significant number of cases where the undeclared earnings rules result in unfairness. The unfairness is that the current rules create overpayments when there are undeclared earnings in weeks worked but the errors should not have changed the benefits paid in each week.

For example, a claimant may work for a four-week period, correctly declare earnings in week 1 and be paid the appropriate amount in week 1. No benefit would be paid in weeks 2 to 4 due to the high level of declared earnings even though the claimant did not report all earnings. The current undeclared earnings rules consider all four weeks as one period and the undeclared earnings in weeks 2 to 4 mean that HRDC must establish an overpayment for the benefits paid in week 1, even though the correct amount of benefits was paid in that week.

The significant incidence of this type of overpayment is clearly unfair. An analysis of the situation has revealed that this unfairness cannot be remedied other than by returning to the weekly allocation of earnings rules that existed before 1996.

Although the overall paper burden on employers has been reduced, the paper burden on employers resulting from undeclared earnings cases has not, as mentioned above. HRDC staff, employers and claimants all agree that verification of employee earnings for cases involving undeclared earnings has become too complex and cumbersome.

As well, there has been no significant decrease in the number of undeclared earnings cases or any indication of a change in claimant behaviour. Therefore, while the 1996 changes related to the Record of Employment have achieved their objectives, the change in rules for undeclared earnings has not. In other words, the undeclared earnings rules have retained their punitive effects without any reduction in employer paper burden for cases of undeclared earnings.

The relevant legislative provisions are found in paragraph 54(d.1) of the EI Act. Section 15 of the EI Regulations outlines the earnings to be taken into account and defines the period of employment for purposes of allocating undeclared earnings.

Section 15 of the EI Regulations is being repealed. This means that subsection 19(3) of the EI Act becomes inoperative. Undeclared earnings will still be allocated on a claim but to the specific calendar weeks where the work was performed or to which the earnings apply. These existing weekly allocation provisions are found in subsection 19(2) of the EI Act and sections 35 and 36 of the EI Regulations.

For transitional purposes, the current undeclared earnings rules would apply to all cases where the period of employment ends before August 12, 2001, and the weekly rules would apply when the period of employment starts after August 12. In some cases, the period of employment starts before August 12 and continues after that date (i.e. straddling situation). In a straddling situation, the period of employment rules would apply from the first day worked to August 11 and weekly rules would apply to that part of the period falling on or after August 12.

This approach to the transitional period is the one that is advantageous to claimants as it allows the weekly rules to apply immediately from August 12, 2001.

Repealing section 15 of the EI Regulations does not mean that HRDC is ignoring undeclared earnings or abuse of the EI Program, including where claimants knowingly make false statements. The weekly allocation rules that apply to declared earnings will also apply to undeclared earnings. The existing provisions related to knowingly false statements by claimants is found in sections 38 and 135 of the EI Act and will continue to apply.

Alternatives

The current punitive rules for undeclared earnings are no longer justified. The other existing legislative provisions for declared earnings for EI benefit purposes provides a fairer and ready-made alternative to the current undeclared earnings rules.

Benefits and Costs

The repeal of section 15 of the EI Regulations does not affect the amount of benefits paid to EI claimants. It changes the method used to calculate overpayments when the claimant has not declared all earnings while receiving EI benefits.

The impact of the repeal of section 15 of the EI Regulations on such overpayments will be cost neutral. Reverting to the weekly method of allocation may reduce the value of overpayments from undeclared earnings to pre-1996 levels. However, HRDC investigative activities will be re-focused on uncovering abuse and misuse in other areas. HRDC will also continue to be involved in prevention and deterrence activities that will generate savings that will easily offset any reductions in overpayments by a change to the undeclared earnings rules.

Consultation

Since 1996, there have been ongoing reviews of the application of the undeclared earnings rules. HRDC has received many recommendations from employee groups, Members of Parliament and members of the public for a change to these rules. There has also been widespread consultation within HRDC on how these rules apply to individual cases.

In March 2001, revoking the undeclared earnings rules was recommended at a hearing of the House of Commons Standing Committee on Human Resources Development and the Status of Persons with Disabilities. There was also a motion at that committee to repeal subsection 19(3) of the EI Act when the Committee was debating Bill C-2 related to EI Adjustments.

All these representations and consultations show that there is wide support for a repeal of the undeclared earnings rules. This responds positively to concerns from key shareholders of the EI Program and the public.

Compliance and Enforcement

There is no need for special compliance and enforcement mechanisms. Existing compliance mechanisms contained in HRDC's adjudication and control procedures will ensure that these changes are properly implemented.

Contact

Jim Little, Senior Policy Advisor, Policy and Legislation Development, Insurance Branch, Human Resources Development Canada, 140 Promenade du Portage, 9th Floor, Ottawa, Ontario K1A 0J9, (819) 997-8628 (Telephone), (819) 953-9381 (Facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Canada Employment Insurance Commission, pursuant to paragraph 54(d.1) of the Employment Insurance Act(see footnote c), proposes, subject to the approval of the Governor in Council, to make the annexed Regulations Amending the Employment Insurance 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 Jim Little, Policy and Legislation Development, Insurance Branch, Human Resources Development Canada, 9th Floor, 140 Promenade du Portage, Ottawa, Ontario K1A 0J9.

Ottawa, June 7, 2001

RENNIE M. MARCOUX
Acting Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE EMPLOYMENT INSURANCE REGULATIONS

AMENDMENTS

1. The Employment Insurance Regulations(see footnote 11) are amended by adding the following before section 15:

14.1 For the purpose of allocating any earnings that a claimant has failed to declare to a period referred to in paragraph 15(4)(a), (b) or (c), as that paragraph read immediately before August 12, 2001, where the period began before that date and was to have ended, in accordance with that paragraph, on or after that date, the period ends on August 12, 2001.

2. Section 15(see footnote 12) of the Regulations is repealed.

COMING INTO FORCE

3. These Regulations come into force on August 12, 2001.

[23-1-o]

Footnote d

S.C. 1991, c. 1, s. 12

Footnote 1

SOR/78-443

Footnote a

S.C. 1991, c. 1, s. 12

Footnote 2

SOR/94-269

Footnote 3

C.R.C., c. 854

Footnote 4

SOR/99-98

Footnote b

R.S., c. 6 (3rd Supp.), s. 77

Footnote 5

SOR/99-52

Footnote 6

C.R.C., c. 1407

Footnote 7

SOR/87-513

Footnote 8

SOR/95-253

Footnote 9

SOR/95-253

Footnote 10

SOR/85-186

Footnote c

S.C. 1996, c. 23

Footnote 11

SOR/96-332

Footnote 12

SOR/2000-18


NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with extensible hypertext markup language (XHTML 1.0 Strict).