David Collenette

[Canada Marine Act, December 5th, 1997]

The transportation community did show us where the cloth could be cut to make a better result for all. We owe them much gratitude for all their help with the bill.

Shortly after I became minister I did meet with port managers, the seaway and port users, ship owners and with pilotage interests. The message from all of these parties was the same. They wanted us to bring back the Canada Marine Act and to proceed as quickly possible to bring it through parliament. Although no one stakeholder got everything they wanted from the bill, they all agreed the comprises made represented a good balance of interests and that it is time to get on with implementing the improvements envisioned in the national marine policy.

We all know that marine transportation is vitally important to Canada's economic health. It makes an enormous contribution to our international trade, tourism and jobs. One of our government's central goals has been to strengthen Canada's economy and create a climate that supports job creation and investment.

To meet the objective in the marine transportation area, that is to make sure our marine system is efficient, competitive and operated according sound business practices, in this bill we are making important changes to Canada's port and seaway transportation institutions. By providing new governance and organizational arrangements through the bill, we will be able to bring decisions closer to the users who, when all is said and done, are the ones who must pay for marine facilities and services. In this way we forge stronger links to the communities that are served by and linked to our marine system.

As I said a moment ago, the journey to this point has been a long one, some would say an arduous one. In 1994 at the request of my predecessor, Transport Canada began a review of the management system for the marine industry and the regulatory regime. The following year the standing committee undertook the study of the marine sector under the leadership of the member for Hamilton West. A number of important recommendations emerged. Following the report, Transport Canada held regional meetings with shippers and industry and consulted with other key players in the marine sector. The result was the national marine policy that was adopted by the government in December 1995.

The policy is designed to bring a greater commercial discipline to the marine sector and to increase efficiency, to cut costs and to give communities more control over their ports. Also, it will allow the government to focus on its top priorities, safety, security and sustainability.

The purpose of the Canada Marine Act is to implement the national marine policy. This act was first introduced in June 1996, and it clearly reflects the objectives of that policy in many ways.

It defines the role of the federal government in relation to marine transportation. It establishes a fair collaborative framework for the management of commercial ports. It provides for the transfer of local and regional facilities to interested parties. It eliminates useless costs in the operation of ports, the seaway and the pilotage authorities.

New discussions were held with all stakeholders, and the Standing Committee on Transportation held hearings across the country when it conducted its review.

Based on the full range of observations gathered from interested parties during its review, the Standing Committee on Transportation proposed about one hundred changes, most of which were incorporated in the present bill. Also included are the amendments made by the House of Commons during its review of the former bill at the report stage.

As you know, Parliament was dissolved on April 27, 1997, before third reading of the bill in the Senate.

So we reintroduced the bill. When I talked with my critics about a quick passage through the House they were quite concerned that we bring the bill back as passed last spring in the House. We did that. I know that created a bit of controversy because there was some unfinished business that we have tried to tidy up in this round in the House.

We knew the marine system needed modernization. We knew that industry indicated this great support for the bill. So we were quite confident that with some flexibility and with some debate we could come to this stage of third reading reasonably quickly.

I would like to make mention here of a few key amendments that we have made during the consideration of the bill in this session. The first is the inclusion of Hamilton and North Fraser in the list of initial port authorities. I talked about that on Wednesday of this week when we did the report stage deliberations. Part of the problem there was there was unfinished business between the city of Hamilton and the harbour commissioners, unresolved issues that now look like there on the way to resolution. Therefore it only made sense to bring the harbour commission in Hamilton into the fold and designate it as a CPA in this bill.

Similarly for North Fraser we thought about combining the two harbour commissions there into one port authority but there did not seem to be a consensus on that. Perhaps down the road under the new system there may be a move toward one port authority but for now we have included North Fraser as part of the schedule of those installations that should be designated as a CPA.

We also brought in an amendment to change board member qualifications for appointments by the three levels of government allowing for a wider breadth of experience in board composition.

On the issue of pilotage the legislation changes the completion date for a statutory review of pilotage issues to one year after the coming into force of the pilotage provisions.

A key feature of the bill which I cannot underscore too broadly is the creation of the Canada port authorities as an important new institutional model for management of our ports of national importance. From an efficiency and gains perspective we intend to free ports in the system from government bureaucracy and they are expected in return to be self-sufficient. I think that is a pretty good trade off.

A new port authority created under the auspices of this act would have the powers directly related to shipping, navigation, the transportation of goods and passengers and the handling of storage of all products. With government approval the port may also engage in other activities that support its port operations.

Port authority borrowing to support capital investments will be decided by private sector lenders base on the port authority stream of future revenues. The port authority will be able to pledge its own land and fixtures plus any fixtures on federal land that it manages as securities to support the borrowing. The authorities will be accountable through their annual reports and audits which are to be available to the public and general meetings which are to be open to the public.

Port authorities will also be subject to special examinations. These are combined performance reviews and audits and are required not less than every five years.

These are the kinds of reforms that the port communities have been asking for for many, many years and we are happy that we are now finally moving in that direction.

Human resources were a priority during development of the Canada Marine Act. We want to ensure that all employees affected by these changes are treated fairly and that all applicable requirements of the Canada Labour Code are fully complied with.

Bill C-9 reflects our position that all marine facility employees presently under federal pension and benefit plans will be covered by similar substitute plans. Employees should not be penalized financially when leaving the public service plans.

The standing committee also emphasized the need to clarify the right of these marine facility employees to transfer their accumulated benefits into the plan they are joining with their new employer.

This was a concern for committee members from all parties in the House, and I am happy to announce that this was included in an amendment at the report stage. This is a good point.

This type of amendment demonstrates very clearly the constructive role of the committee review system, through which members can have input to enhance the bills referred to them.

The result is a bill that requires that marine employees leaving the federal plan under this policy be offered comparable benefits until such time as they and the new employer agree to change it. The bill also requires a new employer to set in place contribution rates no higher than the rates employees paid immediately before the transfer and to take all reasonable steps to negotiate a pension transfer agreement with Treasury Board.

Pension transfer agreements would allow benefits to continue to grow as service time accumulates with the new employer.

As I said in the House on Wednesday, these changes give us a bill that does the right thing, not only for our ports and the seaway but also for all of their employees. Now that the House is just about finished its work, we have in Bill C-9 a balanced package, one that gives Canada the right set of policies and the right set of institutions to link Canada and Canadians to the rest of the world.

The marine community wants this bill. It is very comprehensive and we should hasten it forward to the Senate to complete the legislative process.

I look forward to going to the other place and to working with my colleagues in that chamber to assure them of the objectives of the bill, to see what ideas they have and to work with them in a collaborative fashion to effect speedy passage in the Senate.

In conclusion, let us not forget the major achievement in this bill. The legislation meets the goals of the national marine policy and strikes a balance in how we manage our marine institutions and facilities. It complements the government's other transportation initiatives and is also an important element of the overall effort to prepare our transportation system for the next century.

However, and I have said it before and I will say it again, no matter what changes are made or how many services are commercialized, Transport Canada will continue to make safety and security of Canada's transportation system its first priority. The interest of Canadians and the Government of Canada will always be present in that particular area. However, under this bill we are giving the Canadian marine industry more flexibility in managing its own affairs in a commercial, efficient and effective manner.

I ask all members present to join with us on the government side to pass this bill so that we can complete the legislative process in the Senate, proclaim it early in the new year and get down to the business of giving Canada a terrific new vehicle to discharge marine policy as we move into the 21st century.

[Canada Marine Act, December 5th, 1997]

moved that Bill C-9, an act for making the system of Canadian ports competitive, efficient and commercially oriented, providing for the establishing of port authorities and the divesting of certain harbours and ports, for the commercialization of the St. Lawrence Seaway and ferry services and other matters related to maritime trade and transport and amending the Pilotage Act and amending and repealing other acts as a consequence, be read the third time and passed.

Mr. Speaker, it is a great pleasure to be able to speak to members about Bill C-9 for this third reading debate. Before I talk about the bill I want to take a moment to acknowledge the critical role that has been played by members of the House, in particular those members of the House of Commons Standing Committee on Transport, for their work on this bill, the very thoughtful improvements they have made which I think have illustrated very constructively the role that the committee system plays in our legislative process.

I also want to thank the critics for the other parties, the members for Cypress Hills—Grasslands, Beauport—Montmorency—Orléans, Cumberland—Colchester, and Churchill because they have all worked in a very collegial fashion. They have brought forward very sensible recommendations. Some of them we have accepted, some for various reasons we have not accepted. In any event, it has been a very collegial process which I think is a testament to the way Parliament should work.

All members have displayed a great diligence in working to prepare what I consider to be a quality piece of legislation which will ensure the best marine transportation system for all Canadians.

There was also a great contribution made by the transportation community across the country. They stayed with us throughout the length of the process. They really were in for the long haul.

As you know, Mr. Speaker, this bill has been in the works for many years, in fact about three years, and we have seen it debated twice in this House. It has been shepherded through that time not just within the House but within industry by one individual who I want to pay a particular word of respect to today. That is my parliament secretary, the member for Hamilton West, who has worked diligently, was a member of the committee, the chairman of the standing committee on transport and who came forward with the recommendations. He was able to convince my predecessor that this was the route to go. He has stayed with this process and is now working very effectively as parliamentary secretary. All members of the House owe him a great vote of thanks, as I do as minister.

I hope some people will acknowledge that in the House. It is Friday, Mr. Speaker. I know it is early.

[Division No. 59, December 4th, 1997]

moved that the bill be concurred in.

[Transportation Of Toxic Materials, December 4th, 1997]

Mr. Speaker, I am aware that these types of wagons were involved in the accident that happened the other week in terms of the chemical sulphuric acid coming out of the air. We have been assured that by and large, overall most of these wagons are in good shape, although some of them have to be inspected.

I will take the hon. member's suggestion under advisement and get back to him at an early opportunity.

[Transport, December 4th, 1997]

Mr. Speaker, as I have explained to the hon. member before, this is a highway which was built, designed and operated under the auspices of and for the province of Nova Scotia. The federal government contributed $27 million toward that highway construction and that was the extent of its involvement. We feel that there have been no other problems associated with the highway from our point of view.

If he has a problem, he should address it to the government of Nova Scotia.

[Rail Transportation, December 4th, 1997]

Mr. Speaker, the government is obviously concerned about the state of Canada's highways. The federal government has been involved in assisting the provinces since 1919 in highway construction.

We have about $2.3 billion in existing commitments, some of which will have to be renewed over the next few years.

The hon. member makes a good point about the need in remote communities, but those priorities are set by provincial governments. The federal government then matches funds in any particular agreement.

[Summa Strategies, December 4th, 1997]

Mr. Speaker, I would like to assure the hon. member that Transport Canada's port divestiture program is going extremely well right across the country, including in New Brunswick where we have signed a letter of intent with a local authority and have advanced them some funds to develop their concept further.

Certainly, with respect to the individuals who he raised in his question, these people are private citizens and they are able to conduct their business in whichever way they wish.

[Canada Marine Act, December 3rd, 1997]

moved:

Motion No. 19

That Bill C-9 be amended by

(a) replacing the heading before line 1 on page 79 with the following:

“Comparable Employee Benefits”

(b) adding after line 8 on page 79 the following:

“138.2 A person who has entered into an agreement under subsection 80(5) and every port authority shall take all reasonable steps to negotiate with the President of the Treasury Board a pension transfer agreement in accordance with section 40.2 of the Public Service Superannuation Act in respect of employees referred to in paragraph 130(b), 132(b) or 135(1)(b), as the case may be.

138.3 For the purposes of sections 138.4 to 138.6, “employee benefits” includes coverage and benefits in respect of employer-sponsored pension plans and of life, income protection, health care and dental care insurance plans.

138.4 A person who has entered into an agreement under subsection 80(5) shall, in respect of an employee referred to in paragraph 130(b), provide employee benefits that

(a) begin on the day of the transfer under paragraph 80(6)(f) or, if there is transitional coverage provided in respect of the person under section 40.1 of the Public Service Superannuation Act, on the expiry of the period of transitional coverage;

(b) are comparable to the employee benefits of the employee immediately before the transfer under paragraph 80(6)(f) and at a rate of contribution by the employee not greater than the rate that was applicable in respect of the employee immediately before that transfer; and

(c) end on the day on which an agreement to the contrary comes into force between the person and the bargaining agent representing the employee or, in the case of an unrepresented employee, the person and the employee.

138.5 A port authority shall, in respect of an employee referred to in paragraph 132(b), provide employee benefits that

(a) begin on the day on which the port authority is continued under subsection 12(1) or, if there is transitional coverage provided in respect of the port authority under section 40.1 of the Public Service Superannuation Act, on the expiry of the period of transitional coverage;

(b) are comparable to the employee benefits of the employee immediately before ceasing to be an employee of the local port corporation and at a rate of contribution by the employee not greater than the rate that was applicable in respect of the employee immediately before ceasing to be an employee of the local port corporation; and

(c) end on the day on which an agreement to the contrary comes into force between the port authority and the bargaining agent representing the employee or, in the case of an unrepresented employee, the port authority and the employee.

138.6 A port authority shall, in respect of an employee referred to in paragraph 135(1)(b), provide employee benefits that

(a) begin on the day on which the port authority is deemed to be incorporated under subsection 12(1) or, if there is transitional coverage provided in respect of the port authority under section 40.1 of the Public Service Superannuation Act, on the expiry of the period of transitional coverage;

(b) are comparable to the employee benefits of the employee immediately before ceasing to be an employee of the Canada Ports Corporation and at a rate of contribution by the employee not greater than the rate that was applicable in respect of the employee immediately before ceasing to be an employee of the Canada Ports Corporation; and

(c) end on the day on which an agreement to the contrary comes into force between the port authority and the bargaining agent representing the employee or, in the case of an unrepresented employee, the port authority and the employee.”

Mr. Speaker, I am very pleased to take part in the debate on the fourth group of amendments.

In drafting the Canada Shipping Act, the government has made human resources a priority. It has made an effort to ensure that all affected employees, whether unionized or not, would be treated fairly and it made sure the Canada Labour Code would be rigorously adhered to at all stages, in both the spirit and the letter.

In Bill C-9, the government has taken the position that employees of federal organizations which will be commercialized, divested or sold will be covered under comparable replacement pension arrangements. This is thoroughly consistent with past practices.

Under Bill C-9 the government has taken the position that employees of a federal organization which will be commercialized, divested or sold will be covered under comparable replacement pension arrangements. This is thoroughly consistent with past practices.

For example, recently transport employees at major airports have been offered comparable pension plan coverage to that of the public service plan. Similar arrangements were made for employees affected by the transfer of air navigation services to NavCan. The transfer provided employees with a parallel pension plan where employees were no worse off as a result of their move out of the public service.

By adding employment related provisions to its agreements with these new employers, the government has been able to exert direct influence to ensure that employees have been treated fairly with regard to offers of employment and replacement benefit packages.

During the Standing Committee on Transportation's examination of Bill C-9, an additional amendment was adopted to guarantee that ports employees will be able to take advantage of the transitional provisions recently established in the Public Service Superannuation Act on an equal footing with the seaway employees.

When Treasury Board has given its approval to this new clause, affected employees will be able to continue to participate in the federal pension plan for a time after divesting, so as to allow the new employer time to create, register and implement a new pension plan.

There may be some discussion today about whether or not transferred employees should continue to be covered under the government's superannuation plan, but I point out that some of my colleagues may propose that, when transferring to a new retirement plan, affected employees should be able to transfer their accumulated benefits.

I am pleased to say the government has responded to many of the concerns raised to date on the issue of superannuation benefits to transferred employees. Motion No. 19 in fact proposes to amend the bill so that it covers all employees transferred to a number of different situations: the seaway, a not for profit corporation, a former local port corporation, and former non-corporate ports which are the divisional ports managed by Canada Ports Corporation.

Harbour commissions are the only group not included in this list. They are not affected by these questions because of existing coverage under their private benefit plans.

Motion No. 19 will ensure that new employers will have to offer benefits that are comparable to what the employees had immediately before the new employer took over and keep the comparable benefits in place unless the employer and the employees mutually agree to change them.

It will also set in place contribution rates that are not higher than what was paid by the employees immediately before they were taken over by the new employer. They will also begin their benefit plans when they take over the employees or immediately after any transitional coverage under federal plans. Finally they will take all reasonable steps to negotiate a pension transfer agreement with the Treasury Board.

The government has moved a long way toward meeting some of the objectives of my colleagues on the other side. We cannot, for reasons stated, move all the way to accommodate them but I think we have made our best effort in the spirit of co-operation to get the bill through.

[Canada Marine Act, December 3rd, 1997]

moved:

Motion No. 4

That Bill C-9, in Clause 31, be amended

(a) by replacing line 14 on page 22 with the following:

“(3) Subject to subsection (4), a port authority may not mortgage,”

(b) by replacing lines 18 to 26 on page 22 with the following:

“revenues of that property.

(4) A port authority may, if authorized in the letters patent, create a security interest in fixtures on federal real property to the same extent as Her Majesty could create such an interest and may, instead of Her Majesty, execute and deliver the documents required for that purpose.

(5) For the purposes of subsections (3) and (4), “security interest” means an interest in or charge on property or fixtures mentioned in those subsections to secure the discharge of an obligation or liability of the port authority.

(6) A grant under subsection (4) may be effected by any instrument by which an interest in real property may be granted by a private person under the laws in force in the province in which the federal real property or fixtures are situated.”

Motion No. 10

That Bill C-9, in Clause 45, be amended by adding after line 38 on page 28 the following:

“(3.1) The port authority may exercise the powers under subsection (3) to the same extent as Her Majesty could exercise those powers and may, instead of Her Majesty, execute and deliver the documents required for that purpose.”

Motion No. 11

That Bill C-9, in Clause 46, be amended

a) by replacing lines 3 to 7 on page 29 with the following:

“property that it manages but it may

(a) without the issuance of supplementary letters patent, grant road allowances or easements, rights of way or licences for utilities, services or access; and

(b) to the extent authorized in the letters patent,

(i) exchange federal real property for other real property of comparable market value subject to the issuance of supplementary letters patent that describe the other real property as federal real property, and

(ii) dispose of fixtures on federal real property.

(1.1) The port authority may exercise the powers under paragraph (1)(a) or (b) to the same extent as Her Majesty could exercise those powers and may, instead of Her Majesty, execute and deliver the documents required for that purpose.”

(b) by replacing, in the French version, lines 21 to 25 on page 29 with the following:

“(3) Les concessions peuvent être faites par un acte qui, en vertu des lois de la province de situation de l'immeuble fédéral, peut servir à faire des concessions entre sujets de droit privé.”

Motion No. 20

That Bill C-9 be amended by adding after line 2 on page 98 the following:

“195.1 Section 589 of the Act is replaced by the following:

1. All fines recovered under this Part shall be paid over to the Receiver General and shall form part of the Consolidated Revenue Fund.”

[Canada Marine Act, December 3rd, 1997]

Mr. Speaker, I am pleased to participate in the debate at report stage on this bill which has been so long in the making. Transport Canada has implemented a comprehensive strategy of change over the last few years, commercializing many activities, streamlining regulations, reducing or eliminating subsidies and cutting departmental overhead and expenditures.

I believe the government has demonstrated leadership in attaining national goals and in nurturing national programs and institutions within the framework of the Canada marine act. The first group of amendments before us will go a long way to achieving a number of objectives.

First, marine infrastructure and services will respond to user needs. Second, excess marine infrastructure and services will be rationalized or transferred to more efficient local management in an orderly way. Third, the operation of marine infrastructure and services will be managed on commercial principles wherever possible by commercial entities with a minimum of overhead costs and red tape and the maximum user say.

Fourth, the federal framework of legislation, regulation and administration will be simplified and streamlined while maintaining our high standards of safety. Fifth, marine infrastructure and services will continue to be provided for remote communities in a manner that will preserve a national presence in such communities. Sixth, overall levels of subsidization, direct and indirect, will be significantly reduced or eliminated.

These amendments will go a long way to ensuring that local autonomy will be increased in order to reduce costs and allow ports to better serve their customers.

The federal role in ports as a result of this bill will be more clearly focused on the ports of greatest importance to Canada's domestic and international trade and to those that provide marine service to meet the basic needs of the various remote communities.

We are providing representation on the board of directors to allow increased involvement in port management by business and local interests. The bill has provided for a majority of the new port boards to be nominated after consultation with users. We believe this acknowledges that it is the users who must pay for marine facilities and services.

At transport committee hearings, we were told that boards of directors could be strengthened by making provision for members with a more diverse combination of qualifications.

We agreed with this point and amended the bill accordingly so that the three levels of government have this latitude when appointing board members.

Changes made in committee will allow provinces and municipalities to appoint to boards of directors members with the necessary qualifications to represent a broad range of local interests, not just business interests.

This increased flexibility, along with the advice that will be supplied by port users, will make it possible to ensure that boards of directors include members with a diverse combination of knowledge and qualifications.

This new port authority will have powers relating to shipping, navigation, transportation of passengers and goods, the handling and storage of goods as well as other activities that are deemed in the letters patent to be necessary to support the port operations.

In the letters patent there will be a full description of the lands that will make up the port limits. I think that is extremely important in the whole context of land management.

The bill does require port authorities to develop a land use plan within 12 months of receiving its letters patent, and at least 60 days before the plan is to come into effect the port must advertise in the local media and obtain public input before it finalizes its plan.

Unlike the past practice at many ports, Bill C-9 makes it very clear that Canada port authorities must develop their land use plans in consultation with the local community. That is extremely important right across the country. I want to take an aside here and underscore to my friends in Toronto this is indeed the aim of this bill. It is now in the bill if it passes. I think that would go a long way to ensuring local interests in Toronto that local planning concerns will be taken into account by the new port authority.

We have also heard a concern from members of the Standing Committee on Transport that a direct provision was needed to ensure that port plans are co-ordinated with other land use regimes.

I am pleased to note that my hon. colleague, the member for Beauport—Montmorency—Orléans, moved an acceptable amendment in this regard, an amendment that members on this side of the House will be happy to support.

Accordingly, when a port's board of directors develops its land use plan, it is supposed to harmonize its decisions, in so far as possible, with users and with the restrictions applying to property adjacent to port boundaries.

The vital interests of the public at large, the users of the port, the local businesses and communities and the various interest governments are addressed at two levels in the bill. The procedure for the nomination and appointment of port authority directors offers the conventional assurance that the decisions of a port authority start with people who have professional qualifications and who enjoy the basic confidence of the many constituencies.

The second level of institutional control is of prime importance. We believe that feedback will come from the strict new disclosure requirements for a port authority. The director's actions will be reviewable in a practical way and they will be held accountable through various mechanisms such as annual reports, periodic reviews and annual public meetings.

This is the kind of reform our port authorities want, and we are very pleased to be going ahead in this direction. I strongly urge members to support this bill.

The Canada marine act will help to prepare Canada for the global competitiveness of the 21st century, to ensure a strong continued federal presence in our ports and will serve as a valuable tool in the continued strengthening of our economy and the creation of jobs and growth.

I thank the hon. members who have taken part in the debate thus far, especially the members of the standing committee who have worked in a collegial way to deal with the concerns of this bill. It is the second time round for the House within this calendar year. As people know, the earlier Bill C-44 did not pass the Senate before the election was called. We brought back in the same bill that was passed in the House last year. This was an important feature that my colleagues, especially in the opposition, insisted on.

We have made some modifications. We have made some real progress in certain areas. I mentioned Toronto a few minutes ago. We have also been able to resolve some of the matters pertaining to the Hamilton Harbour Commission and Hamilton, of course, is included in the schedule as a CPA. I think this shows how all of us working together can overcome various difficulties.

In that particular case, we had to wait until certain matters resolved themselves between the counsel in Hamilton and the Harbour Commission. They look like they are on their way to resolution. It seems only appropriate to include Hamilton in the bill.

I exhort my hon. colleagues to allow this bill to go forward. It is a good day for Canada, the Canadian marine industry and, hopefully, in the other place, we will address their concerns which they did not have an opportunity to address earlier this year.