Thank you very much.
Good evening to the members of the committee.
I'm pleased to be here both as the president and CEO of the Hamilton-Oshawa Port Authority and as the incoming chair of the Association of Canadian Port Authorities. Many of my messages will be reconfirming the information you just heard from Daniel.
Canadian port authorities are unique entities within the federal family. Known as government business enterprises, we are self-sustaining for-profits with a mandate to reinvest our earnings and to operate in the public interest by enabling industry and trade.
On behalf of HOPA's team of 65 staff and on behalf of my colleagues across the country, we are very proud of the work the Canadian port authorities do and the positive impact we have on our communities, Canadian trade and the economy.
The ports modernization review was an effort to build on that success and to position ports for the future. We believe the policy intent was very well-intentioned, with goals that included optimizing supply chain and assets, fostering collaboration between supply chain actors, and enhancing governance and financial management.
We have Bill C-33 before us. Upon review, it does contain some improvements, but in many ways, Bill C-33 doesn't quite deliver on the laudable original intent.
First, here are the good things.
Bill C-33 includes measures to allow for the development of inland ports. This is important so that many ports whose supply chains are multimodal can extend into the industrial zones.
It also provides for ports to play a more active role in vessel traffic management. Our harbourmasters are experts at managing the safety, security and efficiency of harbour operations. These changes are very positive.
The bill does have some room for improvement.
We understand from our interactions with Transport Canada that there was an intent to enable ports to collaborate more closely in order to develop streamlined and efficient supply chains. This would be especially valuable in the Great Lakes context, where ports serve in a highly integrated economic region.
For example, HOPA is building an integrated port network on the Great Lakes. HOPA itself is only four years old, following the amalgamation of Hamilton and Oshawa, but we are already seeing the importance of an integrated approach as we can make smarter decisions about infrastructure investment within southern Ontario.
We don't believe that Bill C-33 actually offers any additional tools for collaborating with our port colleagues. That's a shame, because we think there are abundant reasons for us to do so.
We understand that there was a policy intent to ensure that ports were responsive to community and stakeholder interests, but the way that intent was interpreted in the bill was to establish a plethora of one-size-fits-all committees, diverting energy away from the myriad creative ways ports engage with their communities today.
We understand from Transport Canada that the government is looking at modifying the prescriptiveness of the advisory committees as well as quarterly financial reporting requirements, and we very much appreciate those initiatives.
However, our greatest concern is the bill's failure to modernize ports' financial framework. We understand that the intent of the ports modernization review was to ensure that the ports would have the optimal financial capacity to support the Canadian economy and facilitate trade.
Yet again, Bill C-33 does not actually address the fact that Canadian ports today are held back by strict borrowing limits, much lower than those of private companies or even airport authorities of a similar size. As a result, we are not able to realize the national critical infrastructure projects outlined in our business plans.
At this moment, HOPA itself has a proposal before Transport Canada to increase our borrowing limit to align with our capital plan. We are almost a year in, and at this point it is not clear when we'll ever get a reply or when the study will be completed.
Bill C-33 proposes to change the process, to initiate borrowing limit reviews on a three-year cycle, but there's no prescriptiveness around how long that process will take or what criteria it will use to determine those borrowing limits.
It should be easier as well to establish joint ventures and to enter into public-private partnerships and equity partnerships with investors, indigenous groups and others.
Following on Mr. Gooch's remarks, we disagree with the proposal in clause 105 to allow the minister to designate an authority's board chair. We believe there is no benefit to politicizing the chair selection process. Currently, the board chair is elected by the board members themselves, consistent with good governance practices.
Members of the committee, I've outlined some of the reactions to the bill, and you have received detailed submissions from ACPA and others about specific sections, so I'll close with some final, general comments.
As you are reviewing the bill, I would encourage you to remember that as self-funded government business enterprises and the stewards of working waterfronts in the communities where we live and work, port authorities are delivering great outcomes.
I would ask you to consider, for each of the bill's provisions, whether this helps port authorities do what they do best, facilitate trade and support Canadian industry while protecting the environment and the public good, or are we attempting to micromanage these highly diverse, locally grounded organizations?
If you want to help port authorities do more of what matters, I recommend focusing on the following: consider financial flexibility so port authorities can enter into new business relationships and make the necessary investments in national critical infrastructure; enable a market-driven borrowing framework; maintain our flexibility to operate with a business mindset and be responsive to our stakeholders—and please don't politicize our boards.
These are the things that will enable port authorities to continue delivering great results for Canada and Canadians.
Thank you.