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Vol. 134, No. 6 — March 15, 2000

Registration
SOR/2000-76 24 February, 2000

PILOTAGE ACT

Regulations Amending the Laurentian Pilotage Tariff Regulations, 1996

P.C. 2000-222 24 February, 2000

Whereas the Laurentian Pilotage Authority, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act, published in the Canada Gazette, Part I, on December 4, 1999, a copy of the proposed Regulations Amending the Laurentian Pilotage Tariff Regulations, 1996, substantially in the form of the annexed Regulations;

And whereas more than 30 days have expired after the date of publication and no notices of objection to the proposed Regulations were filed with the Canadian Transportation Agency in accordance with subsection 34(2)(see footnote b) of the Act;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to subsection 33(1) of the Pilotage Act, hereby approves the annexed Regulations Amending the Laurentian Pilotage Tariff Regulations, 1996, made by the Laurentian Pilotage Authority on January 14, 2000.

REGULATIONS AMENDING THE LAURENTIAN PILOTAGE TARIFF REGULATIONS, 1996

AMENDMENTS

1. Sections 1(see footnote 1) and 2(see footnote 2) of Schedule 2 to the Laurentian Pilotage Tariff Regulations, 1996(see footnote 3) are replaced by the following:

1. (1) The pilotage charge for a movage of a ship is $304.16, plus $10.01 per unit.

(2) If a ship anchors during a movage, a pilotage charge of $235.18, plus $2.52 per unit, is payable in addition to any other applicable charges.

Charges for Trips

2. (1) The pilotage charge for a one-way trip is

(a) in District No. 1, $26.55 per unit, plus $13.14 per time factor; and

(b) in District No. 2, $16.86 per unit, plus $9.75 per time factor.

(2) If a ship anchors during a trip, a pilotage charge of $235.18, plus $2.52 per unit, is payable in addition to any other applicable charges.

2. Subsection 4(1)(see footnote 4) of Schedule 2 to the Regulations is replaced by the following:

4. (1) If the owner, master or agent of a ship makes a request to the Authority for the replacement of a pilot with a pilot who holds qualifications that are superior to those required for the ordinary conduct of the ship for the docking or undocking of the ship, the pilotage charge is $304.16, plus $6.88 per unit, in addition to any other applicable charges.

3. Sections 6(see footnote 5) and 7(see footnote 6) of Schedule 2 to the Regulations are replaced by the following:

6. (1) If, after being under way, a ship is at anchor, compelled to remain stopped, unable to move on account of ice or aground within a district, a pilotage charge of $70.14 is payable, subject to subsection (2), for each hour or part of an hour that a pilot licensed for the district is detained on board the ship and continues to perform pilotage duties while it is anchored, compelled to remain stopped, unable to move or aground.

(2) The maximum charge payable under subsection (1) for any 24-hour period is $701.40.

Charges for Detention on Board Ship

7. If a pilot is detained on board a ship that is at a wharf or pier or waiting for a berth within the limits of a harbour and is thereafter moved within the limits of the harbour, pilotage charges, not exceeding a maximum charge of $701.40 per 24-hour period, are payable as follows:

(a) for 30 minutes or more of detention but not more than one hour $70.14

(b) for each additional hour of detention or part of an hour $70.14

4. Subsection 8(1) (see footnote 7) of Schedule 2 to the Regulations is replaced by the following:

8. (1) If, after the services of a pilot have been requested at Les Escoumins, the pilot reports for pilotage duty at the pilot boarding station and is detained for more than one half-hour, pilotage charges, not exceeding a maximum charge of $701.40 per 24-hour period, are payable as follows:

(a) for the first hour of detention or part of an hour $70.14

(b) for each additional hour of detention or part of an hour $70.14

5. Subsections 9(1) to (3) (see footnote 8) of Schedule 2 to the Regulations are replaced by the following:

9. (1) Subject to subsections (3) and (4), if a request for pilotage services is cancelled after a pilot reports for pilotage duty, a pilotage charge of $269.78 is payable.

(2) Subject to subsections (3) and (4), in addition to the pilotage charge specified in subsection (1), if a request for pilotage services is cancelled more than one hour after the pilot is ordered to report for pilotage duty, a pilotage charge of $70.14 is payable for each hour, or part of an hour, from the time for which the pilotage services were requested or from the time the pilot actually reported for pilotage duty, whichever is later, until the request is cancelled.

(3) The maximum pilotage charge payable under subsections (1) and (2) is $701.40 per 24-hour period.

6. Section 10 (see footnote 9) of Schedule 2 to the Regulations is replaced by the following:

10. If a pilot is carried on a ship beyond the district for which the pilot is licensed, a pilotage charge of $701.40 is payable for each 24-hour period, or part of a period, during which the pilot is carried.

COMING INTO FORCE

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

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

The Laurentian Pilotage Authority (the Authority) is responsible for administering, in the interests of safety, an efficient pilotage service within Canadian waters in and around the Province of Quebec, north of the northern entrance to St. Lambert Lock, except the waters of Chaleur Bay, south of Cap d'Espoir in latitude 48 degrees 25 minutes 08 seconds N., longitude 64 degrees 19 minutes 06 seconds W. The Authority also 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.

A recently published amendment to the Laurentian Pilotage Tariff Regulations, 1996, registered as SOR/99-418, which was initiated to implement a 3% tariff increase effective January 1, 2000, inadvertently utilized incorrect figures in the calculation of the new tariff increase. Due to this oversight, the current pilotage charges described in Schedule 2 do not reflect the 3% tariff increase accepted by the major stakeholders and the pilotage charges consequently remain at the 1999 established level.

These amending Regulations will resolve the issue and implement the agreed 3% tariff increase for the pilotage charges described in Schedule 2 of the Laurentian Pilotage Tariff Regulations, 1996 and will ensure that the Authority is, in the interests of safety, able to maintain and administer an efficient pilotage service, commensurate with its financial responsibilities.

Alternatives

The Authority is required to provide an efficient pilotage service while ensuring navigational safety and protection of the marine environment. Costs have been reduced where feasible and kept to the minimum consistent with maintaining a safe and effective service. Further reductions in operating costs are not an alternative since this would reduce the quality of service provided by the Authority. This would be unacceptable to both the Authority and its clients. Maintaining pilotage charges at the current 1999 level is not an alternative since the Authority and major stakeholders had already agreed to the 3% tariff increase which was due to come into effect on January 1, 2000. Failure to implement this tariff increase for the year 2000 would be inconsistent with the Authority's corporate plan objectives and would negatively impact upon the Authority's means of maintaining its financial self-sufficiency. This re-adjustment of the tariff charges takes into account loan repayments, the anticipated costs associated with pilotage contract negotiations and the projected rate of inflation.

Benefits and Costs

The tariff increase will generate additional revenue estimated to be in the order of $1,089,000 for the year 2000. This represents an increase in the pilotage charges of approximately $150 per trip for a ship transiting the St. Lawrence River between the pilot boarding stations at Les Escoumins and Montreal.

This tariff increase is necessary to meet anticipated costs over the year. This initiative will ensure the continued efficiency of the pilotage service and the Authority's capability to operate on a self-sustaining financial basis that is both fair and reasonable.

Consultation

The Authority has discussed this tariff increase for its pilotage charges with representatives from the Shipping Federation of Canada, the Canadian Shipowners Association and the St. Lawrence Shipoperators Association Inc. These key stakeholders, who represent most of the users in these waters, have frequently expressed their concerns about increases and additional costs associated with the various marine services fees. They have indicated, however, that they will accept, albeit reluctantly, this single 3% tariff increase which will come into effect on the date of registration of these amending Regulations.

These Regulations were pre-published in the Canada Gazette, Part I on December 4, 1999 and no comments were received.

Compliance and Enforcement

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

Contact

Mr. Jean-Claude Michaud, Chairman
Laurentian Pilotage Authority
715 Square Victoria
Montreal, Quebec
H2Y 2H7
Telephone: (514) 283-6320
FAX: (514) 496-2409

Footnote a

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

Footnote b

S.C. 1996, c. 10, s. 251(2)

Footnote 1

SOR/99-418

Footnote 2

SOR/99-418

Footnote 3

SOR/95-523

Footnote 4

SOR/99-418

Footnote 5

SOR/99-418

Footnote 6

SOR/99-418

Footnote 7

SOR/99-418

Footnote 8

SOR/99-418

Footnote 9

SOR/99-418


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