Mr. Speaker, as always, I consider it a great privilege to rise in the House. Today I am speaking in support of the proposed Canada marine act which was introduced on June 10, 1996.
The new Canada marine act will enable ports to respond more effectively to the needs of their customers and will eliminate needless bureaucratic interference in the marine sector. Modernization of the marine sector has a direct link to jobs and growth. A stronger and more efficient marine transportation system will improve Canada's international trade performance. That means jobs right here in Canada.
The legislation will make it easier for ports to operate according to business principles. It will enable the Government of Canada to commercialize the operations of the seaway and to improve the way pilotage authorities and ferry services operate in Canada. It will serve to enhance the competitiveness of our marine sector, preparing it for the 21st century.
At this point I wish to acknowledge the contribution already made to this bill by the Standing Committee on Transport, which undertook a comprehensive study of the national marine sector early in May of 1995. The SCOT report contained a number of recommendations to improve the marine system, many of which have been addressed in the legislation.
I would like to address the main elements of Bill C-44. I want to begin with ports. The major ports in Canada will be managed by Canada port authorities. These CPAs will operate under the following guiding principles. Any port can apply to become a CPA, and there is a process in place to evaluate criteria proposed in this legislation. I expect anywhere from 10 to 15 ports will meet the criteria and be eligible for CPA status in the very near future.
Port authorities will be established by letters patent as non-share capital corporations and will pay an annual amount to the crown based on gross revenues.
The board of directors will consist of a federal, provincial and municipal appointment and then a majority of directors nominated by the port users. Boards of directors will have a defined code of conduct and conflict of interest provisions as set out in their letters patent and regulations.
For the port users, local communities and financial community there is a new public accountability regime with new disclosure requirements that will ensure access to more detailed information. This accountability is achieved by an unprecedented transparency of operations and through rigorous disclosure requirements.
The following documents and procedures will be made public on a mandatory basis. There will be an annual report. There will be an annual audit, a public land use plan requiring public input in the development process and amendment process. There will be annual meetings throughout, open to the pubic. Directors' and officers' compensation and benefits will be reported in the annual report.
There are further aspects of the accountability regime which will be put in place by the proposed Canada marine act.
The port authority will be required by law to have financial audits conducted annually in accordance with generally accepted auditing practices. Furthermore, a special examination of the management, operations and financial performance will be conducted no less than every five years and the results reported to the Minister of Transport.
Perhaps the most important accountability mechanism stems from the fact that ports will have to raise their financing in the private sector.
Financing will depend on what the market sees as the realistic future cash flows of the ports. Their development aspirations will be subjected to ordinary measures of commercial risk. The government will no longer be responsible for their debt. In fact, this means they have to be more efficient than they are today. The government will not be on the hook for their liabilities.
The end result is a system where port authorities will be accountable to their customers, their local communities, their financial community, federal, provincial and municipal governments.
We are moving the decision making and accountability out of Ottawa and into the boards of directors of the new port authorities. We are ensuring financial responsibility by having the financial community decide on new port investment.
We are keeping title to the federal lands that are entrusted to the new boards and we remain accountable for important framework issues such as safety. We think these are reforms that will energize our ports and contribute to Canada's growth of jobs and prosperity.
For regional and local ports, the changes to the port system offer an opportunity for local interests in all provinces to manage ports in a manner more responsive to local needs with lower costs and better service.
This act enables these ports to be transferred as operating ports to local interests and, in some cases, other federal departments.
I am pleased to report that since January Transport Canada has already 47 port sites in the Arctic that were transferred to the coast guard April 1, 1996. Twelve fishing recreational port sites were transferred to the Department of Fisheries and Oceans April 1, 1996.
Order in council approval for 199 harbours was proclaimed in June 1996. Fifty-four letters of intent have been already signed as of this month. Five port sites will be transferred to local interests by the end of this month.
I move on to the challenges facing the seaway. Quite frankly, they are formidable. We have a $7 billion asset supported by a declining traffic base and $70 million in revenue.
If we do not take steps now to put the seaway on a stronger footing, we will have a big problem on our hands in a few years. The key to the future viability of the seaway lies in achieving efficiencies, reducing costs and making the system more competitive. Part III of the Canada Marine Act enables the Minister of Transport to enter into agreements with a non-profit corporation or any other private sector interests to operate and maintain all or part of the seaway.
We now have an agreement in principle for a new operator to be put in place, perhaps as early as January and the existing seaway authority would be dissolved at an appropriate date.
Another section of the bill deals with marine pilotage. Maintaining an effective pilotage regime to ensure safety and environmental protection is the primary concern of the government, users, the pilotage authorities and pilots alike.
The Canada Marine Act includes amendments to the Pilotage Act which will allow for faster setting of tariffs to prohibit appropriations from the government and to provide for a ministerial review in consultation with the authorities and users in 1998.
These changes will serve the users better and ensure that the authorities operate in a more cost efficient and cost effective manner. Safety and environmental protection will continue to be the government's highest priority when making decisions with respect to marine pilotage. The changes in the delivery of pilotage services will ensure that the safety of marine transportation is maintained.
Finally, with respect to ferry services, the Canada Marine Act will permit the Minister of Transport to enter into agreements with the private sector or other levels of government to provide the constitutional or other services that are currently provided by Marine Atlantic. These provisions are included in the act to facilitate the increased commercialization of ferry operations as outlined in the national marine policy.
Again, the government will maintain its regulatory role for safety and it will continue to support constitutionally required services.
This has just been a quick overview of the proposed Canada Marine Act. The goals of the marine policy are reflected in this legislation. We want our marine sector to be more competitive, more commercially driven, free from Ottawa bureaucracy and more responsive to the users.
We believe this legislation will help us to achieve these goals and prepare the marine sector and transportation system for the competitive demands of the 21st century.