Thank you, Madam Chair.
We are a national trade association. Our members are the owners, operators and agents of ships trading between Canada and overseas ports. Their vessels operate in all four pilotage authority areas in Canada from coast to coast. These ships, operating internationally, shoulder most of the pilotage costs in Canada.
The existing Pilotage Act has remained largely frozen in time since 1972 despite changes in navigational technology, ship design and communications. We strongly believe that Bill C-97 will provide a solid basis from which to continue the much-needed task of modernizing pilotage service in this country. We therefore urge members of this committee to ensure that these amendments are passed into law as soon as possible.
In Canada, pilotage authorities are mandatory, and delivered under a legislated monopoly with a for-profit component. More specifically, under the existing Pilotage Act, pilotage authorities are solely responsible for the administration of pilotage services, while pilots are responsible for delivering these services either as employees of the authorities or as for-profit corporations on a contractual basis.
Before going any further, we wish to note that the existing act has served as an excellent tool for ensuring safe navigation in Canadian waters, and the amendments proposed under this bill in no way detract from this essential value of the pilotage system. Unfortunately, the present pilotage model lacks accountability and transparency, in some cases is insufficiently responsive to user needs, and does little to foster a culture of continuous improvement or cost competitiveness. As a result, the uptake of new technology has been less than optimal and the system has been unable to control costs.
We are therefore pleased to note that the amendments to the Pilotage Act proposed under Bill C-97 will provide a number of important tools for addressing these concerns and modernizing the delivery of pilotage services in Canada. One of the key tools provided under the bill is the addition of an explicit “purpose and principles” clause that will directly shape how pilotage service is delivered and how legislative, administrative and judicial powers are exercised. Given the important role this clause will play in the way service is delivered and enforced, we have proposed a handful of amendments in the form of additional wording to strengthen the framework that Bill C-97 provides. Those amendments can be found in our written submission.
In order to further strengthen the implementation of the act, we also respectfully request that this committee consider making comments in its report on the need to ensure that Transport Canada continues to work towards greater transparency and accountability from pilot corporations, given their status as legally imposed monopoly service providers. In addition, in a context where the regulatory framework will be consolidated under Transport Canada, we urge the committee to stress the importance of providing Transport with the necessary resources to deliver in terms of regulatory development while also ensuring that pilotage authorities are provided with the necessary management tools to remain effective.
Finally, there is one element of division 11 that we object to, the transfer of the full costs of administering the legislation from Transport Canada to the private sector. We are unaware of any other activity-specific legislation that would allow the minister to pass on these costs to industry. In addition, it would seem that any cost recovery initiative should be subject to the Service Fees Act, which comes with its own set of guidelines, rules and standards. This proposal also fails to acknowledge the public good component involved in legislating pilotage services in Canada.
To summarize our asks, first, we strongly support the amended pilotage framework proposed under division 11 of Bill C-97, and ask the committee to ensure that it is passed into law as soon as possible. We ask you to consider one set of very targeted amendments to the purpose and principles clause, which will further strengthen the framework from a user's perspective. Finally, we ask the committee to consider the removal of the extraneous clause with respect to the transfer of Transport Canada's administration costs, which goes beyond mandatory pilotage and, in our opinion, differs from government-wide policies.