Evidence of meeting #5 for Transport, Infrastructure and Communities in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was ambassador.
Noon
NDP
Brian Masse NDP Windsor West, ON
It's a joint study, though. So they've agreed as a joint study to make a decision.
Noon
President, Canadian Transit Company
It is a joint study controlled by Transport Canada at this stage, and it's why Michigan withheld funding.
Noon
NDP
Brian Masse NDP Windsor West, ON
Well, it's a joint study and an arrangement that has come to a conclusion.
With regard to the tolling, fees and that, right now what is your annual revenue from the asset that you have? You did note that they have not acquired any public funds for the operation, but you do have, annually, provision of customs officials at the site. I believe last year it was around $13 million. I don't know what it is on the U.S. side. But on the tolling rate, how can you justify the higher tolls compared to say Blue Water Bridge versus your facility, given that you actually have customs officials?
And that's not simply provided there's a ferry service for hazardous materials down the river that has to pay for its operations, so it's a competition issue. But what are the annual revenues at your facility?
Noon
President, Canadian Transit Company
Can you ask the question again so I can answer it correctly?
Noon
NDP
Brian Masse NDP Windsor West, ON
Yes. What are the annual revenues from your tolling operations? How do you justify your rates setting the tolls, given that your competitors offer a lower rate elsewhere?
Noon
President, Canadian Transit Company
All our competitors have customs officers at their border crossings. We supply, free of charge, all the facilities for Canada to work at our bridge, all their offices, all their booths, all the janitorial work, and all the utilities--at our expense, 100%. Whatever they ask for, we build and give it to them--after-tax money, 100%. So the only one that has to pay for customs officers is a ferry service that operates some amount of time during the day, five days a week. I don't know what their issues are. I also understand there's a lawsuit going on in reference to that.
Going back to the amount of money that we make, as a private company I don't really want to answer that question today, but after the fact, if you want to talk to us, I'd be glad to talk to you, Mr. Masse.
As to the issues of being financially stable, the Ambassador Bridge has been operationally positive and stable, financially positive and stable, and we've supplied best facilities to Canada Customs anywhere in the country.
The issues you're raising ought to be talked about outside of this committee, if you want to, and I'd be glad to do that.
12:05 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
Thank you, Mr. Chair.
I want to commend the delegation. It's encouraging to hear from you that there's still a role for the private sector to play in providing a service and a facility that typically would be provided by public authorities. That is encouraging. I'm glad you're still profitable and are able to provide that service.
I don't believe it's the intention of this committee and this legislation to over-regulate you, although it appears that is your concern here.
I'd like to go back to the settlement agreement in the litigation between the federal government and yourselves. As I understand, it's your position that under that settlement you were required to build customs facilities. Is that correct?
12:05 p.m.
Vice-Chairman and Principal of Centra Inc., Canadian Transit Company
That's what the settlement agreement said, and we carried it out, yes.
12:05 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
Would you agree with me that the Customs Act requires any facilities that charge tolls to provide customs facilities?
12:05 p.m.
Vice-Chairman and Principal of Centra Inc., Canadian Transit Company
This was a 180-degree expansion and a whole new site of facilities on 30-plus acres as well, sir.
12:05 p.m.
President, Canadian Transit Company
What we agreed to in the settlement—I negotiated that settlement—was to take a blank sheet of paper and start from scratch with Canada Customs and give it things it didn't have anywhere else at the time; to create a test or a pilot, if you will, in Canada for what were at that time state-of-the-art facilities for Canada Customs. We went far beyond what was adequate, to create a state-of-the-art pilot project for Canada.
Since that time, we've invested tens of millions of dollars beyond that settlement in keeping those facilities in a position to handle any of the problems Canada sees at the border.
12:05 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
So what you are suggesting is essentially that, even though there was a requirement for you to provide customs facilities, the facilities you actually provided went far beyond what the basic requirement would have been. Is that correct?
12:05 p.m.
Vice-Chairman and Principal of Centra Inc., Canadian Transit Company
Yes, sir.
12:05 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
My second question has to do with the inspection of your facilities. I'm assuming there are annual, if not semi-annual, inspections?
12:05 p.m.
President, Canadian Transit Company
There are annual inspections of our facility.
12:05 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
Could you give me a brief description on how that works? When does it take place? Does the federal government have a role in that process?
12:05 p.m.
President, Canadian Transit Company
Yes, and notwithstanding what you continue to read in the paper for the history of the bridge, we supply those annual inspections to the federal government. In fact, they send down a few people every year to go through that inspection report and spend time with our maintenance staff to see what we've done and what we need to do.
We try not to fight our battles in the news media, because somebody else owns all the ink and we can't control that, but we do supply those annual inspections. The inspections are done by outside engineers whom we hire on a five-year basis to come in for five years and do inspections.
So notwithstanding everything you've read in the paper, Canada sees those, gets to ask questions about them, and follow through with what we're doing.
12:05 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
And to your knowledge the Canadian government has always accepted your inspection reports and is satisfied with them?
May 30th, 2006 / 12:05 p.m.
Liberal
Charles Hubbard Liberal Miramichi, NB
Thank you.
To follow up on a few of these, the bridge is theoretically getting old. What is the future for the bridge, given its age and the need for major investments that, this bill would indicate, would have to be approved by our government? Are we looking at another 30 years, or...?
