Mr. Speaker, last March in response to commercial water lot operators' concerns that insufficient consultation had occurred regarding the new rates, the Rideau and Trent-Severn canals were instructed by the Minister of Canadian Heritage to undertake further consultations with commercial operators.
Over the summer, canal staff gathered input on the proposal from operators by visiting all known commercial operations. The minister stated at that time that revised rates would be made public only after those consultations.
The minister shares the member's concerns. That is why discussion groups were formed for each canal. Their mandate was to determine fair rental rates that will allow canals to reach their revenue objectives.
Staff gathered comments from all known operators over the summer.
The groups proposed and recommended a rental structure that would set new rental rates for primary water lots at twice the old formula plus a base fee of $150 annually. The rental rate for secondary water lots would remain at the old water lot rate. The formula developed received general support throughout the business community.
The application of municipal property taxes to water lots on federal property became a very important issue, particularly on the Trent-Severn waterway. To assist in resolving a municipal taxation issue, canals staff have sought clarification from the appraisal branch of Ontario for a provincial interpretation of the Assessment Act with regard to commercial water lot licences on the canals.
Now that the consultations with the marine operators have been completed, it is the intent of the government to announce new commercial water lot rental rates effective April 1, 1997 in the very near future.