Regulations Amending the Esquimalt Graving Dock Regulations: SOR/2018-188
Canada Gazette, Part II, Volume 152, Number 20
Registration
September 26, 2018
DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT
P.C. 2018-1189 September 24, 2018
Her Excellency the Governor General in Council, on the recommendation of the Minister of Public Works and Government Services, pursuant to section 23 footnote a of the Department of Public Works and Government Services Act footnote b, makes the annexed Regulations Amending the Esquimalt Graving Dock Regulations.
Regulations Amending the Esquimalt Graving Dock Regulations
Amendments
1 The definition dock charge in section 2 of the Esquimalt Graving Dock Regulations footnote 1 is repealed.
2 Section 36.1 of the Regulations is replaced by the following:
36.1 (1) The dock charges for the period beginning on April 1, 2018 and ending on March 31, 2019 are the base charges set out in column 2 of the schedule.
(2) Commencing on April 1, 2019, and annually after then on that date, the dock charges will be increased, to the nearest cent, by the amount determined by the following formula:
A + B
where
- A is the average of the Government of Canada benchmark 10-year bond yields as published monthly by the Bank of Canada for the first six months of the previous calendar year; and
- B is equal to 1%.
3 The schedule to the Regulations is replaced by the schedule set in the schedule to these Regulations.
Coming into Force
4 These Regulations come into force on the day on which they are registered.
SCHEDULE
(Section 3)
SCHEDULE
(Paragraph 4(2)(e), subparagraph 5(1)(c)(i), section 34 and subsection 36.1(1))
Item |
Column 1 Services and Facilities |
Column 2 Base Charges ($) |
|---|---|---|
1 |
Booking |
5,569.60 |
2 |
Draining, per section |
5,569.60 |
3 |
Berthage, per metre, per day |
6.51 |
4 |
Rail-mounted crane, per hour
|
|
5 |
Mobile crane, per hour
|
|
6 |
Air compressor (first), per manifold hour |
125.00 |
7 |
Air compressor (second), per manifold hour |
119.33 |
8 |
Air compressor (wheeled), per manifold hour |
62.50 |
9 |
Motorized vessel, per hour |
206.61 |
10 |
Fresh water, per cubic metre |
1.43 |
11 |
Electric power, per kilowatt hour |
0.17 |
12 |
Tie-up or letting go |
903.94 |
13 |
Overtime labour services, drydock employee, per hour |
110.55 |
14 |
Security services, per vessel, per day |
511.37 |
15 |
Dockage, 1 section, per day |
3,341.76 |
16 |
Dockage, 2 sections, per day |
11,139.21 |
17 |
Dockage, 3 sections, per day |
15,594.87 |
18 |
Dockage per day: under 5 000 gross tonnage |
0.00 |
19 |
Dockage per day: 5 000 – 34 999 gross tonnage |
0.13 x the vessel’s gross tonnage |
20 |
Dockage per day: 35 000 – 69 999 gross tonnage |
0.12 x the vessel’s gross tonnage |
21 |
Dockage per day, 70 000 – 89 999 gross tonnage |
0.10 x the vessel’s gross tonnage |
22 |
Dockage per day: over 89 999 gross tonnage |
0.09 x the vessel’s gross tonnage |
23 |
Sewer discharge, per litre |
0.01 |
24 |
Vacuum loader |
73.86 |
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
The Standing Joint Committee for the Scrutiny of Regulations has reviewed the text of the Esquimalt Graving Dock Regulations (the Regulations), and has identified a lack of clarity with respect to the contents of the schedule to the Regulations.
Background
The Esquimalt Graving Dock (EGD) is the largest deep-sea shipbuilding and repair facility on Canada’s Pacific Coast. The dock opened in 1927 and is one of only two Canadian West Coast dry docks with the capacity to handle vessels in excess of Panamax size, up to 100 000 deadweight tons (DWT). The EGD has a significant economic impact on the regional and provincial economy. It is operated by Public Services and Procurement Canada, Infrastructure Assets Management Sector (PSPC-IAM). PSPC-IAM is responsible for operation, administration and maintenance of the facility. The EGD operates as an “open access” multi-user facility meaning it provides common services (on a fee-for-service basis) and multi-user access to the dry dock infrastructure for a variety of private sector companies. The “open access” business model supports the small and medium-sized firms that would find it too costly to set up their own infrastructure.
As the owner and operator of the EGD, PSPC-IAM is responsible for enforcement of the Regulations and the collection of dock charges (i.e. fees). The Regulations prescribe how EGD dock charges are calculated, understood and administered. The current schedule to the Regulations includes dock charges for the period from April 1, 2010, to March 31, 2015, and section 36.1 includes the formula for calculating dock charge increases beginning April 1, 2015 (i.e. dock charges increase by an amount equal to 1% plus the average of the Government of Canada benchmark 10 year-bond yields as published monthly by the Bank of Canada for the first 6 months of the previous calendar year). The EGD calculates the dock charges for a given fiscal year, and publishes them on their website; however, these calculated dock charges are ultimately based on the most recent dock charges articulated in the schedule (for the period from April 1, 2014, to March 31, 2015) and the escalator formula (found in section 36.1). The EGD website currently provides calculated dock charges for the period from April 1, 2017, to March 31, 2018.
The Standing Joint Committee for the Scrutiny of Regulations assessed the Regulations, and found that the use of “tonne” in English and “tonneau” in French was incorrect when used in conjunction with gross tonnage with the result that the calculations of dockage charges for items 18 to 22 could be misleading.
Objectives
The objective of the Regulations Amending the Esquimalt Graving Dock Regulations (the amendments) is to update, clarify and streamline the text of the Regulations, reducing the risk of confusion for EGD users and staff —see tables 1 and 2 below.
Item |
Services and facilities |
April 1, 2010 – March 31, 2011 |
April 1, 2011 – March 31, 2012 |
April 1, 2012 – March 31, 2013 |
April 1, 2013 – March 31, 2014 |
April 1, 2014 – March 31, 2015 |
|---|---|---|---|---|---|---|
18 |
Dockage per tonne, per day: under 5 000 gross tonnage |
0 |
0 |
0 |
0 |
0 |
19 |
Dockage per tonne, per day: 5 000–34 999 gross tonnage |
0.12 |
0.12 |
0.12 |
0.12 |
0.12 |
20 |
Dockage per tonne, per day: 35 000–69 999 gross tonnage |
0.11 |
0.11 |
0.11 |
0.11 |
0.11 |
21 |
Dockage per tonne, per day, 70 000–89 999 gross tonnage |
0.10 |
0.10 |
0.10 |
0.10 |
0.10 |
22 |
Dockage per tonne, per day: over 89 999 gross tonnage |
0.09 |
0.09 |
0.09 |
0.09 |
0.09 |
Item |
Services and facilities |
April 1, 2018 – March 31, 2019 |
|---|---|---|
18 |
Dockage per day — under 5 000 gross tonnage |
0 x the vessel’s gross tonnage |
19 |
Dockage per day — 5 000 to 34 999 gross tonnage |
0.13 x the vessel’s gross tonnage |
20 |
Dockage per day — 35 000 to 69 999 gross tonnage |
0.12 x the vessel’s gross tonnage |
21 |
Dockage per day — 70 000 to 89 999 gross tonnage |
0.10 x the vessel’s gross tonnage |
22 |
Dockage per day — over 89 999 gross tonnage |
0.09 x the vessel’s gross tonnage |
Description
The amendments will
- repeal the definition of “dock charge,” as it is not necessary;
- update section 36.1 of the Regulations to reflect the charges set out in the schedule and clarify the application of the provision;
- clarify that certain dock charges, in the schedule to the Regulations, are calculated by multiplying the prescribed charge (expressed in dollars) by the gross tonnage of the vessel; and
- remove references to obsolete dock charges for the years between April 1, 2010, and March 31, 2015.
“One-for-One” Rule
The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply to this proposal, as there are no costs on small business.
Consultation
The amendments are housekeeping in nature, and formal stakeholder consultations were therefore not undertaken. In past years, stakeholders had expressed concerns with the clarity of the relevant regulatory text; however, the EGD has been able to provide additional clarity by publishing the calculated dock charges on their website.
Rationale
The amendments will clarify the text of the Regulations and streamline the Regulations by removing obsolete dock charges. The amendments will not result in any changes to the EGD dock charges, administration of the Regulations, or the operations of the EGD, and will not result in any adverse impacts on the stakeholders, the Canadian public or the Government of Canada.
Contact
Ralph Collins
Director General
Public Services and Procurement Canada
Infrastructure Asset Management
2720 Riverside Drive
Sir Charles Tupper Building
Room B400-B414
Ottawa, Ontario
K1A 0S5
Telephone: 613-818-1574