Mr. Speaker, I am pleased to speak at second reading on the proposed legislation, an act to amend the Blue Water Bridge Authority Act.
The proposed legislation amends the Blue Water Bridge Act of 1964 by updating the ability of the Blue Water Bridge Authority to borrow funds.
For those members who may not know, the Blue Water Bridge connects Point Edward, which is near Sarnia, Ontario, with Port Huron, Michigan. It joins Ontario Highway 402 to Michigan Highway Interstates 69 and 94 on the U.S. side.
The Blue Water Bridge is the second largest Canada-U.S. gateway in terms of exports and the second busiest crossing for trucks. An average of 14,000 vehicles per day cross the Blue Water Bridge and on a busy day as many as 20,000 vehicles, including well over 6,000 trucks, may cross this international bridge.
The Blue Water Bridge is Canada's fastest growing crossing with traffic increases of about 8% per year. The bridge is primarily a long distance crossing. I am told that approximately 250,000 to 300,000 trucks per month from the province of Quebec alone cross this bridge heading to the United States. Obviously this crossing is important to many of our provinces, not just Ontario.
In 1992, 50 years after the bridge was first opened for traffic, an international task force studying the Blue Water Bridge crossing concluded that the existing bridge was operating in excess of its designed capacity and that a second bridge should be built.
On July 22, 1997, a second Blue Water Bridge span was open to traffic. Once the new bridge was opened, the original 60 year old bridge was temporarily closed for much needed rehabilitation.
The Blue Water Bridge Authority has owned and operated the Canadian half of the bridge since the early 1960s. The authority was created by the federal government by an act respecting the international bridge over the St. Clair river known as the Blue Water Bridge. This act was proclaimed on May 21, 1964.
The Blue Water Bridge Authority is a public body basically independent of the crown operating at arm's length. It is not an agent or employee of the crown and the crown is therefore not liable for its debt. It receives no federal funding.
The governor in council appoints the directors of the authority and the reporting mechanism is through Transport Canada.
As I previously indicated, the purpose of the amendment to the Blue Water Bridge Act of 1964 is to update the ability of the Blue Water Bridge Authority to borrow funds. The current act limits the authority to borrow funds when the bond interest rate is less than or equal to 6.5%. This restriction is not in keeping with current practice.
Other international bridges have an established maximum borrowing limit. The amendment proposes a maximum borrowing limit of $125 million which would be adequate to handle its long term debt, currently totalling approximately $60 million, and its multiyear capital plan totalling an additional $55 million.
The Blue Water Bridge Authority is continually looking for ways to improve its operation and to make its crossing as efficient and as safe as possible. Its capital plan identifies major modifications to the terminal layout to improve the flow of traffic and to address the safety concerns identified by independent consultants.
Without the passage of the legislation, the authority will be unable to borrow the necessary funds to make these improvements. The proposed legislation stipulates that all borrowing transactions are subject to the approval of the Minister of Finance and the Minister of Transport. The bill also reinforces that the federal government is not liable for any borrowing by the authority.
The authority is not for profit. Its revenues come primarily from bridge tolls but it also has rental income from things like the duty free shop and from broker establishments at the crossing.
The proposed legislation to amend the Blue Water Bridge Authority Act is important for Canada's economic viability and competitiveness. With the Canada-U.S. trade growing at an average annual pace of more than 10%, we cannot afford to ignore the crucial economic role that our international border crossings play in facilitating the movement of this trade.
I hope all members will join me in giving expeditious consideration to this important initiative. The Blue Water Bridge Authority needs the legislation in order to continue to operate and to maintain this important transportation link efficiently and to make capital improvements in the most cost effective manner possible.