Mr. Speaker, as the member for Dartmouth and the representative of thousands of people who are employed and affected by the activities of one of Canada's most vital ports, I would like to discuss the impact on Atlantic Canada of Bill C-9, the Canada Marine Act.
First I will discuss the issue of divesting certain harbours and ports on the communities of Nova Scotia. Then I will look at some of the aspects of Bill C-9 that will have negative impacts on the port of Halifax.
The federal government announced in its national marine policy in 1995 that it planned to divest itself of all of its port facilities across the country which were under the control of Transport Canada.
Ottawa said it was spending $50 million each year to operate the country's 572 ports. The marine policy later became Bill C-44 which died in the House when the last Parliament was dissolved. Transport Canada is continuing with the divestiture scheme using other mechanisms.
The list of Nova Scotia port facilities reaches over 150. There are Amherst, Baddeck, Mulgrave, Port Hawkesbury, Canso, Liscomb, Mahone Bay, Tor Bay, over 150 communities which depend on their ports as an important pillar of their communities are in jeopardy.
Like their churches, their schools and their post offices, for those who still have the luxury of having a post office, the ports are an important part of their existence. So far Transport Canada has managed to unload three ports. The Weymouth port was sold to Irving for about $250,000. The Shelburne port was taken over by the Department of Fisheries and Oceans and the Daysprings port was purchased for $30,000 by a shipyard company.
In the near future the Country Harbour facility will go up for public auction and the Sheet Harbour and Iona ports will be available for public tender. How many other buyers are there for these little ports? I would say precious few.
Transport Canada is holding public hearings in the affected communities. An executive assistant to Transport Canada's Atlantic region divestiture team has said that the affected communities are very hostile during these meetings. I can imagine why.
So many of these communities are angry because they do not think they have the resources to maintain or take over these facilities and they do not. These communities will go to ruin. These ports will go to ruin without the infrastructure that the government provides.
How can a port with revenues of $2,000 and expenses of $20,000 be profitable? But is profitability the only criterion by which we judge things now? Over 100 small ports which are central to the maritime fabric of life will flounder and go to ruin. For what? To save a few dollars.
This is the same mentality that wiped out the Yarmouth-Bar Harbour ferry in the winter time. It is the same mentality that will force people to pay a toll on the trans Canada highway. This is the same mentality that led the government to privatize the air traffic control system for a billion dollars less than it was worth. This is privatization ideology run rampant.
It is ironic that the Prime Minister is presently meeting with the four Atlantic premiers to talk about Atlantic Canada's need to get ahead at the same time as the government is pushing through legislation which undermines the essential transportation infrastructure in Atlantic Canada. At the same time it tightens the grip of big corporations such as Irving on our communities.
The port of Halifax-Dartmouth is another community which has major concerns about Bill C-44. The bill will prevent access for the port authority to the traditional primary source of funding for major capital projects and that is the federal government.
This is the primary negative feature of the bill. Many port facilities such as Halifax are capital intensive and have to be built well in advance of user commitments. Users often do not come until the facilities are in place. In the case of Halifax, because little of its traffic is captive, when users of the facility arrive there is no guarantee they will stay.
Ships float and boats are floating assets. They will not stay if they find another port which provides cheaper access to the markets in the North American interior that they seek to serve.
No private sector lender or investor can advance the bulk of such funding against user commitment which may or may not materialize when the facilities are completed. Funding can only come from governments which have the necessary financial resources and can justify, in the interest of promoting the economy of their constituents, the assumptions of the attendant commercial risks. This is true of all Canadian ports but also ports the world over which do not have enough captive or near captive traffic for their major borrowings to be bankable.
Had the bill been in effect in the late 1960s Halifax would not have been able to build and equip even one container berth and the harbour would long ago have fallen into disuse.
The bill should be changed to delete the provisions intended to prevent the federal government from providing capital funding to the new port authorities.
Another concern that we have in Atlantic Canada is the concern of labour with regard to this legislation. Labour needs a place at the new port authorities. From labour's standpoint the Canada Marine Act does not legislatively ensure that port labour will have a place at the new port authority boards. Port labour in Halifax is asking that it be grandfathered into the new board of the port authority so as to ensure that labour has a continued voice in the direction and running of the Halifax port.
The Halifax Port Development Commission also has serious objections to the bill on the one hand denying any access whatsoever for ports to parliamentary appropriation of federal funds, while on the other hand continuing to offer access to the consolidated revenue fund for the seaway.
As clause 67(c) states, the objective is to protect the long term operation and viability of the seaway as an integral part of Canada's national transportation infrastructure. The port of Halifax and the CN gateway are at least as critical a component of Canada's national transportation infrastructure as the seaway, and given industry trends, hold considerably greater potential to expand their role in international trade for the benefit of all Canadians.
It should also be noted that in many instances the seaway competes with Halifax for traffic, making the discrepancy of treatment that much more objectionable. We therefore strongly recommend that Bill C-9 be amended to ensure that the major ports and the seaway are treated in a consistent and equitable manner with respect to access to federal funds for capital investment.
Bill C-9 in its present form will have many detrimental effects on the communities of Atlantic Canada ports both big and little. Atlantic Canada and the port of Halifax deserve to have their needs met. Bill C-9 is not acceptable in its present form and we will be examining it carefully and constructively in committee.