Canada Gazette, Part I, Volume 150, Number 12: Regulations Amending the Atlantic Pilotage Tariff Regulations — Newfoundland and Labrador Non-Compulsory Areas

March 19, 2016

Statutory authority

Pilotage Act

Sponsoring agency

Atlantic Pilotage Authority

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

In accordance with recommendations from the Canadian Transportation Agency (the CTA) and its customers, the Atlantic Pilotage Authority (the Authority) strives to be financially self-sufficient on a port-by-port basis, as well as for the Authority as a whole. After analyzing projections for coming years, the Authority is adjusting tariffs in the non-compulsory areas of Newfoundland and Labrador to increase the likelihood that pilots are available to the customers when requested. The changes to the non- compulsory rates do not have a significant effect on the Authority's finances, but are meant to encourage pilots to be licensed for the areas and to be willing to do these assignments when industry requests them.

Background

The Authority is responsible for administering, in the interests of safety, an efficient pilotage service within the Canadian waters in and around the Atlantic Provinces. As required by the Pilotage Act, the Authority prescribes tariffs of pilotage charges that are fair and reasonable and consistent with providing revenues sufficient to permit the Authority to operate on a self-sustaining financial basis.

Objectives

The objective of this proposed regulatory amendment is to increase pilotage charges in certain non-compulsory areas in order to

Description

These Regulations would be amended by increasing the charges to reflect inflationary increases since the last amendment in 1999. The tariff charges will be increased by 10% in 2016, followed by a further 10% increase on January 1, 2017. There are numerous classifications of charges in the Regulations, and each would be increased by the stated percentages.

“One-for-One” Rule

The “One-for-One” Rule does not apply to this proposal, as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply to this proposal.

Consultation

The Authority conducts extensive consultation with local and national shipping interests, and committees have been formed for each of the major pilotage areas and with the Shipping Federation of Canada. At least two meetings are held with each committee annually, in which service levels, operational issues, future requirements, and financial issues are discussed. The Shipping Federation of Canada, on behalf of its members, had written to the Authority to indicate that it considered this tariff proposal to be fair and reasonable, when it was part of the 2013 tariff proposal.

Separate meetings are held with the Canadian Shipowners Association, individual companies, and key players in the industry throughout the year. The sharing of information proves valuable to the Authority in forecasting activity levels in each port.

Rationale

The Newfoundland and Labrador non-compulsory tariff has not been increased since 1999. The Authority is planning to increase this tariff in two stages to provide an inflationary increase since the last amendment. The first increase will be 10% in 2016, followed by a further 10% increase planned in 2017.

It would be important to note that the consumer price index (CPI) grew by more than 34% since 1999. This tariff is applied to non-compulsory assignments where users are not required by regulation to use pilotage service. Pilots volunteer to be licensed for these areas as such licensing is not a direct requirement of their employment. In order to have pilots available when industry desires non-compulsory pilotage service, the tariff and corresponding pilot remuneration has to be deemed reasonable.

This tariff increase would increase revenues by $14,000 in 2016, and $15,000 in 2017, 85% of which would be paid to pilots for performing these assignments. The Newfoundland and Labrador non-compulsory revenue will be approximately 1.3% of the overall revenue for the Authority in 2016.

Implementation, enforcement and service standards

Section 45 of the Pilotage Act provides an enforcement mechanism for these Regulations in that a Pilotage Authority can inform a customs officer at any port in Canada to withhold clearance from any ship for which pilotage charges are outstanding and unpaid. Section 48 of the Pilotage Act stipulates that every person who fails to comply with the Act or regulations is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000.

Contact

Captain Sean Griffiths
Chief Executive Officer
Atlantic Pilotage Authority
Cogswell Tower, Suite 910
2000 Barrington Street
Halifax, Nova Scotia
B3J 3K1
Telephone: 902-426-2550
Fax: 902-426-4004

PROPOSED REGULATORY TEXT

Notice is given, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act (see footnote b), that the Atlantic Pilotage Authority, pursuant to subsection 33(1) of that Act, proposes to make the annexed Regulations Amending the Atlantic Pilotage Tariff Regulations — Newfoundland and Labrador Non-Compulsory Areas.

Interested persons who have reason to believe that any charge in the proposed Regulations is prejudicial to the public interest, including the public interest that is consistent with the national transportation policy set out in section 5 (see footnote c) of the Canada Transportation Act (see footnote d), may file a notice of objection setting out the grounds for the objection with the Canadian Transportation Agency within 30 days after the date of publication of this notice. The notice of objection must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Canadian Transportation Agency, Ottawa, Ontario K1A 0N9. The notice of objection must also be filed with the Minister of Transport and the Atlantic Pilotage Authority in accordance with subsection 34(3) (see footnote e) of the Pilotage Act (see footnote f).

Halifax, March 9, 2016

Captain Sean Griffiths
Chief Executive Officer
Atlantic Pilotage Authority

Regulations Amending the Atlantic Pilotage Tariff Regulations — Newfoundland and Labrador Non-Compulsory Areas

Amendments

1 The long title of the French version of the Atlantic Pilotage Tariff Regulations — Newfoundland and Labrador Non-Compulsory Areas (see footnote 1) is replaced by the following:

Règlement fixant le tarif des droits de pilotage payables à l'Administration de pilotage de l'Atlantique relativement au pilotage effectué dans les zones de pilotage non obligatoire de Terre-Neuve-et-Labrador

2 Section 1 of the French version of the Regulations is replaced by the following:

1 Le présent règlement peut être cité sous le titre : Règlement sur le tarif de pilotage de l'Atlantique — Zones de pilotage non obligatoire de Terre-Neuve-et-Labrador.

3 (1) Subsection 1(1) of the Schedule to the Regulations is replaced by the following:

1 (1) A pilotage charge of $36.09 per hour or part of an hour is payable for any travel time of a pilot before and after pilotage up to a maximum of $432.88 for each 24-hour period.

(2) Subsection 1(1) of the Schedule to the Regulations is replaced by the following:

1 (1) A pilotage charge of $39.70 per hour or part of an hour is payable for any travel time of a pilot before and after pilotage up to a maximum of $476.17 for each 24-hour period.

4 (1) Subsection 2(1) of the Schedule to the Regulations is replaced by the following:

2 (1) A pilotage charge of $45.10 per hour or part of an hour is payable for pilotage time for a ship.

(2) Subsection 2(1) of the Schedule to the Regulations is replaced by the following:

2 (1) A pilotage charge of $49.61 per hour or part of an hour is payable for pilotage time for a ship.

(3) The portion of subsection 2(2) of the Schedule to the Regulations before paragraph (a) is replaced by the following:

(2) In addition to the pilotage charge payable under subsection (1) and subject to subsection (3), a charge of $297.40, or the product obtained by multiplying $3.19 by the pilotage unit, whichever is greater, is payable for each of the following categories of pilotage:

(4) The portion of subsection 2(2) of the Schedule to the Regulations before paragraph (a) is replaced by the following:

(2) In addition to the pilotage charge payable under subsection (1) and subject to subsection (3), a charge of $327.14, or the product obtained by multiplying $3.51 by the pilotage unit, whichever is greater, is payable for each of the following categories of pilotage:

(5) Subsection 2(3) of the Schedule to the Regulations is replaced by the following:

(3) The pilotage charge payable under subsection (2) for a tug and a barge is calculated by adding together the pilotage units for the tug and for each barge and by multiplying that sum by $3.19, except that, if the charge so calculated is less than $297.40, a charge of $297.40 is payable.

(6) Subsection 2(3) of the Schedule to the Regulations is replaced by the following:

(3) The pilotage charge payable under subsection (2) for a tug and a barge is calculated by adding together the pilotage units for the tug and for each barge and by multiplying that sum by $3.51, except that, if the charge so calculated is less than $327.14, a charge of $327.14 is payable.

5 (1) Subsection 3(1) of the Schedule to the Regulations is replaced by the following:

3 (1) The charge payable for the standby time of a pilot is $36.09 per hour or part of an hour.

(2) Subsection 3(1) of the Schedule to the Regulations is replaced by the following:

3 (1) The charge payable for the standby time of a pilot is $39.70 per hour or part of an hour.

6 (1) Subsection 5(1) of the Schedule to the Regulations is replaced by the following:

5 (1) If a pilot has been dispatched on an assignment and is subsequently notified that the request for the services of the pilot is cancelled, a charge of $306.15 is payable in addition to any travel or standby charges payable under this schedule and any other expenses incurred by the pilot that are directly associated with the assignment.

(2) Subsection 5(1) of the Schedule to the Regulations is replaced by the following:

5 (1) If a pilot has been dispatched on an assignment and is subsequently notified that the request for the services of the pilot is cancelled, a charge of $336.77 is payable in addition to any travel or standby charges payable under this schedule and any other expenses incurred by the pilot that are directly associated with the assignment.

7 (1) Paragraphs 6(1)(a) and (b) of the Schedule to the Regulations are replaced by the following:

(2) Paragraphs 6(1)(a) and (b) of the Schedule to the Regulations are replaced by the following:

(3) Subsection 6(2) of the Schedule to the Regulations is replaced by the following:

(2) The pilotage charge payable under subsection (1) for a tug towing a barge is calculated by adding together the pilotage units for the tug and for each barge and by multiplying that sum by $3.19, except that, if the charge so calculated is less than $297.40, a charge of $297.40 is payable.

(4) Subsection 6(2) of the Schedule to the Regulations is replaced by the following:

(2) The pilotage charge payable under subsection (1) for a tug towing a barge is calculated by adding together the pilotage units for the tug and for each barge and by multiplying that sum by $3.51, except that, if the charge so calculated is less than $327.14, a charge of $327.14 is payable.

8 (1) Paragraphs 7(1)(a) and (b) of the Schedule to the Regulations are replaced by the following:

(2) Paragraphs 7(1)(a) and (b) of the Schedule to the Regulations are replaced by the following:

9 (1) Section 8 of the Schedule to the Regulations is replaced by the following:

8 In addition to any other charges payable under this schedule, a pilotage charge of $175.09 is payable if a pilot conducts a ship into or out of a dry dock, floating dock or graving dock or on or off a cradle.

(2) Section 8 of the Schedule to the Regulations is replaced by the following:

8 In addition to any other charges payable under this schedule, a pilotage charge of $192.60 is payable if a pilot conducts a ship into or out of a dry dock, floating dock or graving dock or on or off a cradle.

10 (1) Paragraphs 10(a) and (b) of the Schedule to the Regulations are replaced by the following:

(2) Paragraphs 10(a) and (b) of the Schedule to the Regulations are replaced by the following:

Coming into Force

11 (1) Subject to subsection (2), these Regulations come into force on the day on which they are registered.

(2) Subsections 3(2), 4(2), (4) and (6), 5(2), 6(2), 7(2) and (4), 8(2), 9(2) and 10(2) come into force on January 1, 2017.

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