Mr. Speaker, first, I want to thank the hon. member for Beauport—Limoilou for bringing forward Motion M-271, on the Port of Québec.
This port is also partially located in my riding. Therefore, it is my pleasure today to support this motion to recognize the Port of Québec as a hub of international trade in opening new markets for Canadian business, creating jobs for people back home, and generating significant economic benefits.
As the member for Québec, I had the opportunity to meet with many stakeholders—along with the hon. member for Beauport—Limoilou—regarding the port and its development. I am convinced of its importance for the economic growth of Quebec City and the surrounding areas.
Modern ports are critical elements of transportation systems in Canada and around the world. In the context of global trade, Canadian ports must be competitive in several activity sectors in order to continue to hold their own against international competition.
In order to clearly understand the challenges faced by Canadian ports, one must know that Canadian port authorities were created by an act of Parliament enacted in 1998, the Canada Marine Act. This legal framework set a local governance structure for the management of port authorities. These authorities were designated by the Government of Canada as essential to domestic and international shipping. Indeed, Canadian port authorities, which include 17 ports, deal with over half of all the ocean freight in Canada, or goods evaluated at over $142 billion.
Under the Canada Marine Act, port authorities are responsible for their own funding and they must be self-sufficient. Moreover, the act closely monitors authorities by setting strict borrowing limits and, as a result, it is not always easy for a port to get a loan. Finally, the Canada Marine Act requires port authorities to give part of their gross revenues to the Government of Canada. Since Canadian port authorities operate under federal laws, it is our duty to ensure that relations between the government and these authorities are not only maintained, but also strengthened.
With global competition fiercer than ever, Canadian port authorities have to work harder to achieve the objectives of social and economic development for their regions. Canada has key marine transportation corridors on the St. Lawrence Seaway, which is one of the main corridors. Marine transportation generates $3 billion in economic activity. According to a study by the St. Lawrence Economic Development Council, shipping on the St. Lawrence is the most efficient means of transportation both financially and logistically.
The same study estimates that in 2010, Quebec's ports and marine activities sustained 27,350 jobs. Again according to the St. Lawrence Economic Development Council, Quebec's port industry's spending translates into a contribution to Quebec's gross domestic product of roughly $2.3 billion annually. In taxes, the governments of Quebec and Canada brought in $500 million and $180 million respectively in 2010.
The quality of its port services, its rail links at every terminal, and its 15 metre low tidal waters, make the Port of Québec a key element of the St. Lawrence Seaway and a gateway to the Great Lakes.
The Port of Québec is open 12 months of the year, is located roughly 1,400 km from the heart of North America and is less than 300 km from the first lock leading to the Great Lakes region. The Port of Québec has efficient links to the industrial and agricultural heart of North America. What is more, thanks to its port infrastructure, Quebec City's maritime community connects to roughly 60 countries. In 2010, the number of cruise ship passengers who set foot in Quebec City was 102,274, which is an increase of 18% compared to 2009. That has a considerable impact on Quebec City considering that those cruise ship passengers left behind some $80 million in regional spinoffs.
If the activity came to an abrupt end on Quebec City's docks, the economic shock to the region would be brutal.
Overall, some 5,000 direct and indirect jobs are associated with the Port of Québec. It generated almost $800 million in economic spinoffs and $163 million in taxes in 2010. The port also pays $900,000 per year in fees to the federal government.
Finally, since the turn of the century, the Port of Québec has increased its activity by approximately 75%. Today, the Port of Québec must invest $400 million to modernize its aging infrastructure and increase by 50% the quantity of goods shipped along the St. Lawrence River.
With limited borrowing capacity and no grant program tailored to Canadian ports, the Québec Port Authority has problems and solutions, but rather limited financial means to ensure its development and to stave off U.S. competition. This is what the CEO of the Port of Québec, Mario Girard, has said in the past.
It should be understood that, despite the popularity of the port facilities, the port itself spends a portion of its profits on activities in the cruise industry, the marina and recreation and tourism. Since 2006, these activities have cost approximately $10 million. Unfortunately, according to forecasts, these figures will continue to rise in 2011.
Mario Girard recently stated that cruises were a money-maker for the Quebec City region, but that it was the port that was footing the entire bill. Although the Port of Québec is in good shape, its infrastructure is aging. At present, the authority is looking at how it can finance $370 million in work needed to maintain facilities at the required levels. Canadian ports are not really funded by the federal government and must generate their own revenue, as I explained earlier.
Nevertheless, we hope that this government will realize that going with the status quo is no longer possible and that the Port of Québec must find funding to start its renovation projects. It is even more important because, as we have shown, the port is an important component of Quebec City's economy and geography.
Among its potential solutions, the Port of Québec is counting on private businesses to pay a good part of the bill because they are the first to profit from the facilities.
Marc Dulude, executive president of IMTT Québec, a company specializing in liquid bulk, says that business people clearly understand that and are prepared to contribute to the modernization of the port. However, he is asking the governments to do their part. He says that the lack of space, the lack of access to the piers will eventually inhibit the growth of activities and revenues that contribute to the vitality of the local economy.
The port of Quebec City hopes to see an increase in the transit of goods, from 25 million to 37 million tonnes annually, to generate new revenues. However, to achieve that objective, an initial investment is necessary to reorganize space dedicated to solid bulk, liquid bulk and grain, three local commodities supported by world demand.
In this regard, it is important to mention that a regulatory amendment would allow Canadian ports to borrow more easily. Currently, Canadian ports cannot offer their land as collateral because it still belongs to the community. Port authorities must prove to lending institutions that all their projects are self-financing. That is a problem in many cases. Moreover, ports have basically no liquidity, and again, that makes investments difficult.
So, the biggest challenge for the port of Quebec City is to find ways to generate new revenues to ensure the future of the city's port facilities, while also taking into account social and environmental considerations. It is important to point out that, while this motion primarily proposes to support the port of Quebec City and its development, these improvements must be done with the support of the public.
This is why the NDP wants to ensure that the Quebec City port authority will continue its consultation efforts with the public, because it is essential to meet with citizens and to hear their views on the renovation projects that are currently on the table.
That public consultation is necessary because in addition to the economic nature of the Quebec City port, about 20% of its facilities are used for recreation and tourism. So, a number of these facilities allow tourists and families from the area to have access to the St. Lawrence River. The port of Quebec City wants to become a model for profitable port-city relations, as well as an example for the development—