Canada Gazette, Part I, Volume 155, Number 21: Regulations Amending the Large Fishing Vessel Inspection Regulations
May 22, 2021
Statutory authority
Canada Shipping Act, 2001
Sponsoring department
Department of Transport
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
Large fishing vessels are at risk of uncontrolled and undetected flooding of compartments below the waterline when they are not fitted with high water level detectors or alarms. Regulations are needed to require installation of these devices in large fishing vessels.
Background
The Large Fishing Vessel Inspection Regulations (LFVIR) were introduced in 1978 to address the construction and inspection of fishing vessels exceeding 24.4 m in length or 150 gross tonnage (GT) to ensure the safety of navigation of these vessels and their crew.
Vessels are subdivided into a number of watertight compartments for the purpose of limiting the extent of flooding. Depending on the compartment, if flooding is uncontrolled and undetected, it may endanger the vessel. This is what happened to the Nadine, a 37 m fishing vessel that sank in December 1990; only 2 of the 10 crew members are known to have survived. Following the Transportation Safety Board of Canada (TSB) investigation into the incident, it was determined that water entered the vessel through unsecured openings and flooded compartments, which gradually reduced the stability of the vessel until it sank. In its 1994 Marine Investigation Report, the TSB recommended that Transport Canada (TC) “require the installation of water level detectors in all compartments below the waterline on large fishing vessels.” Recommendation M94-06 and its safety concerns remain outstanding and captured under the TSB's Commercial Fishing Safety Watchlist theme.
In response to the TSB recommendation, TC published Ship Safety Bulletin (SSB) 04/2000: Flooding Detection on Fishing Vessels, on April 17, 2000, as an interim measure to mitigate undetected flooding. In the SSB, TC recommends
- the installation of water level detectors “in all ‘dry' compartments located below the weather deck which are not subject to frequent visits, other than fish holds”; and
- that water levels be monitored by those on watch until such water level detectors can be installed.
When the SSB was published, the installation of water level detectors in fish holds had not been included in the first recommendation mentioned above due to concern that detectors could be damaged from ice or fish in the holds, or could cause repeated false alarms if not deactivated before ice and fish were loaded into a hold. However, some fish holds also function as dry compartments. In these cases, the installation of water level detectors would mitigate undetected flooding in areas normally not meant to hold water. The additional oversight provided would allow for the early detection of flooding and would outweigh any concerns about false alarms.
Objective
The objective of the proposed amendment is to reduce the risk to large fishing vessels and crew from uncontrolled and undetected flooding of watertight compartments, which can lead to a loss of stability and cause incidents like the one in 1990, where undetected flooding resulted in loss of life.
Description
The proposed amendment to the LFVIR would require that water level detectors, that are connected to an audible and visual alarm in the control station of the vessel, be fitted in all watertight compartments of large fishing vessels below the waterline and not intended to carry liquids.
This adds to the original SSB recommendation by distinguishing between all compartments intended to carry liquids, for which water level detectors are not needed, and those fish holds that function as dry compartments, for which water level detectors are needed.
Regulatory development
Consultation
TC consulted stakeholders regarding the proposed amendment at the November 2019 and November 2020 National Canadian Marine Advisory Council (CMAC) meetings that took place in Ottawa. Stakeholders that were present at the meetings included, but were not limited to, pilotage authorities, provincial boating associations, academia, non-governmental organizations, ferry operators, other government departments (federal, provincial and municipal), fishing industry, marine-related unions and associations, and the marine industry in Canada at large. Stakeholders were supportive of the proposed amendment and raised no concerns.
Modern treaty obligations and Indigenous engagement and consultation
Stakeholders were consulted on the proposed amendment to the LFVIR at national CMAC meetings in November 2019 and November 2020. While CMAC meetings generally have some Indigenous participation, there was no direct consultation with Indigenous or Treaty groups specifically. The proposed amendment is not anticipated to impact any Indigenous groups specifically; therefore, no consultations were held outside the aforementioned forum.
Furthermore, in accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an analysis was undertaken to determine whether the proposed Regulations are likely to give rise to modern treaty obligations. The assessment examined the geographic scope and subject matter of the proposal in relation to the modern treaties in effect, and no modern treaty obligations were identified.
Instrument choice
In order to fully respond to TSB recommendation M94-06, it is necessary to introduce a mandatory requirement in the LFVIR to require the installation of water level detectors in all compartments below the waterline that are not intended to carry liquids. Originally, Ship Safety Bulletin (SSB) 04/2000 was issued as an interim measure until the requirements could be worked into a regulatory framework. While the voluntary industry response to the SSB has been satisfactory in the interim, reissuing the SSB so long after the instigating incident would be an ineffective measure to induce further adoption of its recommendations. The only option available to satisfy the TSB recommendation is that TC implement a mandatory measure to address the safety deficiency.
By implementing a mandatory measure through regulations, the requirement is expected to satisfy TSB Recommendation M94-06.
Regulatory analysis
The proposed amendment would require that water level detectors be fitted in all watertight compartments of large fishing vessels below the waterline and not intended to carry liquids, and be connected to an audible and visual alarm in the control station of the vessel. The installation of detectors would impose a cost of approximately $88,170 in total (present value in 2019 Canadian dollars, discounted to 2021 at a 7% discount rate) on the owners of these vessels between 2022 and 2031. These costs would include the purchase of the water level detectors, other parts and devices that connect the detectors with the alarm system, and the labour cost of installation.
The proposed amendment would also assist the crew by allowing for early detection of flooding in the specified compartments so that immediate actions could be taken. As a result, the proposed amendment would help reduce the occurrence of accidents that could involve fatalities, injuries, or damages to vessels and cargo. Due to limited data, only qualitative benefits are provided in the analysis.
Analytical framework
The costs and benefits of the proposed amendment have been assessed in accordance with the Treasury Board of Canada Secretariat's (TBS) Policy on Cost-Benefit Analysis. Where possible, impacts are quantified and monetized, with only the direct costs and benefits for stakeholders being considered in the cost-benefit analysis. Qualitative analysis is provided when data is limited or not available.
The benefits and costs associated with the proposed amendment are assessed based on comparing the baseline scenario against the regulatory one. The baseline scenario depicts what is likely to happen in the future if the Government of Canada does not implement the proposed amendment. The regulatory scenario provides information on the outcomes intended as a result of the proposed amendment.
The analysis estimated the impact of the proposed amendment over a 10-year period, from 2022 to 2031, with 2022 as the year when the final Regulations are registered. Unless otherwise stated, all costs are expressed in present value in 2019 Canadian dollars, discounted to 2021 at a 7% discount rate.
Affected vessels
The proposed amendment would require owners of large fishing vessels (over 24.4 m in length or 150 GT) to install water level detectors in all watertight compartments below the waterline and not intended to carry liquids. According to TC's Vessel Registry, footnote 1 154 large fishing vessels were registered in 2020. For the purpose of the cost-benefit analysis, these vessels are grouped into three categories:
- — Category 1: fishing vessels that are over 24.4 m but less than 34 m in length;
- — Category 2: fishing vessels that are at least 34 m but less than 55 m in length; and
- — Category 3: fishing vessels that are at least 55 m in length.
According to the subject matter experts at TC, 104 of the 154 large fishing vessels are considered in Category 1, 35 are in Category 2, and 15 are in Category 3. It is expected that, on average, a Category 1 vessel has four watertight compartments below the waterline, a Category 2 vessel has five, and a Category 3 vessel has seven.
Based on historical vessel registry data, the Canadian large fishing vessel fleet size varied significantly in the 1980s and 1990s, but has remained relatively stable since the early 2000s. Since 2009, on average, six large vessels are retired every year (i.e. closed or suspended registrations) but four new vessels are added (i.e. new registrations) to the fleet every year.
Baseline and regulatory scenarios
Under the baseline scenario, large fishing vessel owners would not be required to install water level detectors in watertight compartments below the waterline and not intended to carry liquids. However, subject matter experts at TC expect that owners of existing large fishing vessels have already installed water level detectors in some of these watertight compartments, as recommended by the SSB 04/2000. It is then assumed that all existing vessels have two watertight compartments below the waterline equipped with water level detectors.
It is also assumed that four new large fishing vessels would be registered every year, two of which are in Category 1, one in Category 2, and one in Category 3, based on TC subject matter expert analysis. Further, these new vessels would also have two watertight compartments with water level detectors installed.
Under the regulatory scenario, large fishing vessel owners would be required to install water level detectors in all watertight compartments below the waterline and not intended to carry liquids. As a result, for watertight compartments below the waterline that are not equipped with detectors under the baseline scenario, additional installation would be required.
Benefits and costs
Benefits
The proposed amendment would help reduce the occurrence of accidents that would involve fatalities, injuries, or damages to vessels and cargo. Due to limited data, benefits are only presented qualitatively.
TSB data shows that only three accidents, including the one involving the Nadine, were reported to have occurred on large fishing vessels due to flooding in watertight compartments below the waterline. All of these accidents, that caused thirteen fatalities, occurred in the 1990s. footnote 2 Since the publication of the SSB 04/2000 in the year 2000, no such accident on large fishing vessels has been reported. Therefore, it is challenging to quantify and monetize the benefits associated with the proposed amendment due to limited data. However, the proposed amendment would further reduce the possible occurrence of such accidents, as the crew would be able to act immediately should flooding occur in those compartments, which is critical to fix the cause of flooding in time to prevent further damage to the vessel and cargo. In cases of more severe flooding (e.g. flooding that could lead to the loss of vessel stability or sinking), early identification could provide time for the crew to escape or to minimize or avoid injuries or fatalities, and save costs related to search and rescue operations.
Costs
As previously described in the baseline and regulatory scenarios, large fishing vessel owners are assumed to have water level detectors already fitted in two of the watertight compartments below the waterline, and, therefore, the installation of detectors would only be needed for the rest of the compartments, namely two for a Category 1 vessel, three for a Category 2 vessel, and five for a Category 3 vessel.
Each watertight compartment below the waterline would need to be equipped with a water level detector, an electrical conduit, and a set of marine electrical connectors and glands. In addition, marine electrical cable is needed to connect these items. It is also expected that a watch engineer would perform the installation. Table 1 below presents the costs of installation in detail.
| Item | Number of items | Price | Source |
|---|---|---|---|
| Water level detector |
|
$30 per detector table 1 note * | TC subject matter experts |
| Electrical conduit | One per detector | $30 per conduit | TC subject matter experts |
| Marine electrical connectors and glands | One set per detector | $15 per set | TC subject matter experts |
| Marine electrical cable | 1 per vessel | $60 per spool | TC subject matter experts |
| Labour cost | 2 hours from a watch engineer per watertight compartment | $60.27 per hour table 1 note ** (2019 Canadian dollar) | Statistics Canada table 1 note *** |
Table 1 note(s)
|
|||
The costs of installing water level detectors and other components are estimated to be about $88,170 in total. footnote 3 Of these costs, $74,680 would be assumed in 2023 when the proposed amendment would come into force, because all of the existing large fishing vessels would be required to comply with the proposed amendment, and the rest ($13,490) would be assumed when new large fishing vessels are registered in later years.
It is also worthy of note that about half of these costs would be carried by the owners of Category 1 fishing vessels (i.e. over 24.4 m but less than 35 m in length), as they account for about 70% of the Canadian large fishing vessel fleet. In addition, from a regional perspective, most of the cost would be assumed in the Atlantic region (68%), followed by the Pacific region (25%), based on the number of large fishing vessels registered in these areas. The other 7% of the cost would be assumed in Nunavut (4.5%), Quebec (2%) and Manitoba (0.5%).
Small business lens
The small business lens applies, as there are impacts on small businesses associated with the proposed amendment. Based on TC subject matter experts' analysis, vessel owners who own only one large fishing vessel in Category 1 could be expected to be small businesses, which implies vessel owners of 86 existing large fishing vessels and of two additional vessels per year in the future. It is estimated that small businesses would assume 44% of the total estimated cost, or $38,900. footnote 4
No consideration has been given to making this expense less burdensome to small businesses. The proposed amendment directly addresses a critical safety issue and would apply equally to all large fishing vessels irrespective of the operator or size of the vessel. This makes flexibility for compliance with the proposed amendment for small businesses impossible since there are no options for reduced compliance available. Nevertheless, small business operators would in general assume less expense than larger operators due to the likelihood that fewer detectors would be needed for their operation.
One-for-one rule
The one-for-one rule does not apply, as there is no incremental change in the administrative burden on business.
Regulatory cooperation and alignment
This proposed amendment is not related to a work plan or commitment, however, the proposal aligns broadly with international standards developed by the International Maritime Organization with regard to water level detectors on bulk carriers. This proposal further supports TC's work with the TSB to help prevent accidents and loss of life on fishing vessels by addressing TSB recommendation M94-06, which is outstanding and a Watchlist item.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
Although no gender-based analysis plus (GBA+) impacts were identified for this proposal, it is worth noting that Canada's fishing industry primarily employs men. According to Statistics Canada (2006), men make up 66% of Canada's fishing industry, while the remaining 34% are women. It is important to note that despite this gender discrepancy, TC provisions focus on improving the safety culture within the marine industry for all persons. footnote 5
Implementation, compliance and enforcement, and service standards
Implementation
The Regulations would come into force on the first anniversary of the day on which they are registered.
Compliance and enforcement
Compliance and enforcement of the proposed amendment would be addressed nationally through periodic inspections and/or risk-based inspections. This would not require increased resources, as marine safety inspectors would use the same enforcement tools under the Canada Shipping Act, 2001 for periodic and risk-based inspections, that range from the issuance of a deficiency notice with established deadlines to make corrections, to the issuance of administrative monetary penalties, or a vessel detention order.
Contact
Rick Cheshire
Senior Marine Safety Inspector
Small and Fishing Vessels, Design and Equipment Standards
Marine Safety and Security
Transport Canada
Place de Ville, Tower C
330 Sparks Street, 11th Floor
Ottawa, Ontario
K1A 0N5
Email: rick.cheshire@tc.gc.ca
PROPOSED REGULATORY TEXT
Notice is given that the Administrator in Council, pursuant to subsection 120(1) footnote a of the Canada Shipping Act, 2001 footnote b, proposes to make the annexed Regulations Amending the Large Fishing Vessel Inspection Regulations.
Interested persons may make representations concerning the proposed Regulations within 60 days after the date of publication of this notice. All such representations must be submitted online on the Canada Gazette, Part I, or, if submitted by email, post or other format, must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Rick Cheshire, Senior Marine Safety Inspector, Small and Fishing Vessels, Design and Equipment Standards, Marine Safety and Security, Department of Transport, Place de Ville, Tower C, 11th Floor, 330 Sparks Street, Ottawa, Ontario K1A 0N5 (email: rick.cheshire@tc.gc.ca).
Ottawa, May 13, 2021
Julie Adair
Assistant Clerk of the Privy Council
Regulations Amending the Large Fishing Vessel Inspection Regulations
Amendments
1 Section 6 of the Large Fishing Vessel Inspection Regulations footnote 6 is replaced by the following:
6 Sections 10 to 13.1 and 14.1, subsections 15(12) to (12.2) and (15) and sections 19.1, 22.1, 24 to 27 and 30 to 42 apply in respect of every existing fishing vessel over 24.4 m in length or 150 tons, gross tonnage, that is not a sailing ship.
2 The Regulations are amended by adding the following after section 14:
High Water Level Detectors in the Bilge
14.1 Each watertight compartment that is not intended to carry liquids and that is located partially or fully below the load water line of a fishing vessel shall be fitted with a high water level detector that is connected to a visual and audible alarm located in the control station of the vessel.
Coming into Force
3 These Regulations come into force on the first anniversary of the day on which they are registered.
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