Evidence of meeting #121 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was unions.
A video is available from Parliament.
10:25 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
The sale will only go through if it maximizes value for Canadian taxpayers. In addition to that, the government has indicated that the sale won't occur unless the purchaser is committed to providing service on an open access basis.
10:25 a.m.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Obviously there are going to be some existing contracts. Will the new owner be required to honour those contracts?
10:25 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
Yes, they will.
10:30 a.m.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Ridley Terminals has plans for an expansion to 25 million tonnes. Is it going to continue with those plans?
10:30 a.m.
Director, Ports Policy, Department of Transport
Yes, they will continue with the expansion plan. They're projecting that they will finish that by the end of 2014 or early 2015.
10:30 a.m.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Obviously there are going to be some concerns about foreign ownership. What about if a foreign company proceeds to try to buy it? What checks will be in place?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
Proposals that are received from foreign buyers will be assessed through a standard bid evaluation process. That process will ensure consistency with the new guidelines that were announced in December 2012 regarding state-owned enterprises. The assessment would include a full consideration of free market principles, as well as the impact of the proposed investment on employment, production, and capital levels in Canada.
10:30 a.m.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Good. Thank you.
Those are all the questions I have, Mr. Chair.
10:30 a.m.
Conservative
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Thank you, Mr. Chair.
Does the government have any prospective buyers for Ridley Terminals at the moment?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
It's too early to comment on any aspect of the sale process.
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Is there a type of buyer that the government is planning to sell the terminals to? What I mean is, has any priority been given to asset management companies or terminal operators over resource extraction companies or other users—companies that might be related to users of the terminal?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
Again, the government hasn't announced any particulars around the sale process. The intent, of course, will be to develop a process that is competitive and that ensures the outcomes the government has already indicated in terms of an open access regime.
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
You mentioned maximizing value for taxpayers. What value has the government assigned to Ridley Terminals?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
Again, that's a question that can't really be answered at this point in time. There needs to be a competitive process to come out with a proper answer to that question.
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
I think you're saying you don't really know the value until the market tells you the value through this competitive bidding process. Is that what you're saying, essentially?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
It's premature to announce a value for the terminal. There hasn't been any indication of what that is.
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Are there any proposed terms of sale, besides what you've already announced, in terms of operating on an open access basis?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
The government has indicated that it's looking for a buyer who will operate the terminal on a long-term and sustainable basis.
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Okay.
With respect to this sale, or divestiture, is there a plan to consult or accommodate first nations in the region?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
The government will ensure that its duty to consult, where and as applicable, is honoured.
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
What's the expected impact of this divestiture on the Port of Prince Rupert? Are there any other facts...?
10:30 a.m.
Senior Chief, Corporate Finance and Asset Management, Department of Finance
I'll refer this question to Janet Kavanagh.
10:30 a.m.
Director, Ports Policy, Department of Transport
Ridley Terminals is a tenant of Prince Rupert. That will continue under a new owner. Prince Rupert will benefit as Ridley Terminals benefits, through its lease payments.
10:30 a.m.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Will that lease change at all with the change of ownership, or is that something that goes along?
