Vol. 147, No. 24 — November 20, 2013

Registration

SOR/2013-196 November 8, 2013

CANADA TRANSPORTATION ACT

Regulations Amending the Carriers and Transportation and Grain Handling Undertakings Information Regulations

P.C. 2013-1149 November 7, 2013

His Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to subsection 50(1) (see footnote a) of the Canada Transportation Act (see footnote b), hereby makes the annexed Regulations Amending the Carriers and Transportation and Grain Handling Undertakings Information Regulations.

REGULATIONS AMENDING THE CARRIERS AND TRANSPORTATION AND GRAIN HANDLING UNDERTAKINGS INFORMATION REGULATIONS

AMENDMENTS

1. The title of the Carriers and Transportation and Grain Handling Undertakings Information Regulations (see footnote 1) is replaced by the following:

TRANSPORTATION INFORMATION REGULATIONS

2. (1) Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:

“aerodrome” has the same meaning as in subsection 3(1) of the Aeronautics Act. (aérodrome)

“vessel” has the same meaning as in section 2 of the Canada Shipping Act, 2001. (bâtiment)

(2) Section 1 of the Regulations is amended by adding the following after subsection (2):

(3) Subsection (2) does not apply to Transport Canada forms or publications.

3. The Regulations are amended by adding the following after section 2:

2.1 Except as otherwise provided in these Regulations, the information required by these Regulations to be provided to the Minister must be provided

4. The heading “DÉFINITIONS” before section 3 of the French version of the Regulations is replaced by the following:

DÉFINITIONS ET INTERPRÉTATION

5. (1) The definitions “level V air carrier”, “level VI air carrier”, “local air carrier”, “regional air carrier” and “unit toll service” in section 3 of the Regulations are repealed.

(2) The definitions “level I air carrier”, “level II air carrier”, “level III air carrier”, “level IV air carrier” and “revenue passenger” in section 3 of the Regulations are replaced by the following:

“level I air carrier” means a Canadian air carrier that, in the calendar year before the year in which information is provided under this Part, transported at least 2,000,000 revenue passengers or at least 400 000 tonnes of cargo. (transporteur aérien de niveau I)

“level II air carrier” means a Canadian air carrier that, in the calendar year before the year in which information is provided under this Part, transported

“level III air carrier” means a Canadian air carrier that

“level IV air carrier” means a Canadian air carrier that

“revenue passenger” means a passenger who is not a non-revenue passenger and for whose transportation an air carrier receives remuneration, and includes a passenger travelling with a ticket

(3) Section 3 of the Regulations is amended by adding the following in alphabetical order:

“air carrier” means a Canadian air carrier or foreign air carrier. (transporteur aérien)

“Canadian air carrier” means the holder of an air operator certificate issued under Subpart 3, 4 or 5 of Part VII of the Canadian Aviation Regulations. (transporteur aérien canadien)

“foreign air carrier” means the holder of an air operator certificate issued under Subpart 1 of Part VII of the Canadian Aviation Regulations. (transporteur aérien étranger)

“general aviation” means the operation of an aircraft for purposes other than publicly available passenger or cargo transport for remuneration, and includes business aviation, aerial work, instructional flying and air ambulance services. (aviation générale)

“general aviation operator” means any entity that engages in general aviation, and includes a corporation, a government entity as defined in subsection 211(1) of the Excise Act, 2001 and a foreign government. (exploitant de l’aviation générale)

“non-revenue passenger” means

“scheduled service” means the transportation of passengers or cargo by an aircraft provided by an air carrier that operates the air service and that, directly or indirectly, sells some or all of its seats or part or all of its cargo space to the public on a price per seat, price per unit of mass or price per volume of cargo basis. (service régulier)

(4) Section 3 of the Regulations is renumbered as subsection 3(1) and is amended by adding the following:

(2) For the purposes of the definitions “level I air carrier”, “level II air carrier”, “level III air carrier” and “level IV air carrier” in subsection (1), a Canadian air carrier that is in its first year of operation is considered to have

6. Sections 4 to 7 of the Regulations are replaced by the following:

4. (1) A level I air carrier, level II air carrier, level III air carrier or level IV air carrier must provide to the Minister financial information, including

(2) A level I air carrier that operates scheduled services, and a level II air carrier, level III air carrier, level IV air carrier or foreign air carrier that operates a scheduled service with at least one aircraft whose maximum certificated take-off weight is more than 25 000 kg, must provide to the Minister operational information about each take-off or landing in Canada or abroad of a scheduled service flight that originates in, is destined for or makes a stopover at an aerodrome in Canada, including

(3) A level II air carrier, level III air carrier, level IV air carrier or foreign air carrier that operates a scheduled service only on aircraft whose maximum certificated take-off weight is not more than 25 000 kg must provide to the Minister information aggregated on a quarterly basis about

(4) A level I air carrier, level II air carrier, level III air carrier, level IV air carrier or foreign air carrier that operates a charter service, whether or not available to the public, on an aircraft whose maximum certificated take-off weight is 5 670 kg or more must provide to the Minister operational information about each charter flight that it operates with the aircraft and that originates in, is destined for or makes a stopover at an aerodrome in Canada, including

(5) A level I air carrier or level II air carrier that transported more than 600,000 revenue passengers by scheduled service in each of the two previous calendar years must provide to the Minister information about each revenue passenger’s complete itinerary, including

(6) A level I air carrier, level II air carrier, level III air carrier or level IV air carrier must provide to the Minister information about each aircraft in its fleet, including

(7) An air carrier that transported dangerous goods between Canada and another country must provide to the Minister the UN number assigned to the goods by the United Nations Committee of Experts on the Transport of Dangerous Goods.

(8) An air carrier referred to in subsection (2), (3) or (4) must provide the information required by that subsection electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program.

5. A level I air carrier, level II air carrier or level III air carrier that transported more than 10 000 tonnes of cargo in the previous calendar year, and a foreign air carrier that transported more than 10 000 tonnes of cargo to or from Canada in the previous calendar year, must provide to the Minister information about the supply chain, including

6. (1) A general aviation operator must provide to the Minister, in respect of the aircraft that it operates for general aviation for purposes that are not exclusively recreational,

(2) A general aviation operator must provide the information required by subsection (1) electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program.

7. (1) An air carrier or general aviation operator referred to in column I of Schedule I must provide to the Minister the details relating to the information required by sections 4 to 6 that are provided for in the form referred to in column II for the reporting period set out in column III before the end of the day set out in column IV.

(2) If the form and manner of providing the details are set out in column V of Schedule I, an air carrier or general aviation operator referred to in column I must provide the details to the Minister in the form and manner set out.

(3) If two forms are referred to in column II of Schedule I, the details provided for in either of the forms may be provided to the Minister.

7.1 An air carrier that sells the entire capacity of an aircraft for a flight to another air carrier must, in respect of that capacity, provide to the Minister the information, and the details relating to the information, that the other air carrier would have been required to provide under sections 4, 5 and 7 if the other air carrier had been operating the aircraft.

7. Subsection 9(2) of the Regulations is repealed.

8. (1) Paragraph 10(2)(b) of the Regulations is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after subparagraph (iii):

(2) Subsection 10(2) of the Regulations is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f):

9. The Regulations are amended by adding the following after section 12.1:

12.2 (1) A class I rail carrier, class II rail carrier or class III rail carrier must provide to the Minister information about each locomotive in its fleet, including

(2) A class I rail carrier or class II rail carrier that transports passengers, and that realized revenues of at least $100,000,000 from transporting passengers in the calendar year before the year in which information is provided under this subsection, must provide to the Minister information about every ticket sold to a passenger for travel between two points in Canada or between a point in Canada and a point in the United States, including

(3) A class I rail carrier or class II rail carrier that transports passengers, and that realized revenues of less than $100,000,000 from transporting passengers in the calendar year before the year in which information is provided under this subsection, must provide to the Minister information about every railway line it operates for passenger travel in Canada or between Canada and the United States, including the name of the geographical location of each end of the railway line and the number of passengers transported on it.

(4) A class I rail carrier, class II rail carrier or class III rail carrier referred to in column I of Schedule II.1 must provide to the Minister the details relating to the information required by subsections (1) to (3) that are provided for in the form referred to in column II for the reporting period set out in column III before the end of the day set out in column IV.

12.3 A class I rail carrier, class II rail carrier or class III rail carrier must provide to the Minister once a year, before the end of 90 days after the end of the calendar year, a geospatial database or timetables depicting its network, including

10. (1) The portion of section 13 of the English version of the Regulations before the definitions is replaced by the following:

13. The following definitions apply in this Part.

(2) The definition “ferry boat operator” in section 13 of the English version of the Regulations is replaced by the following:

“ferry boat operator” means a domestic marine carrier or international marine carrier that operates a ferry boat. (exploitant de traversier)

(3) Section 13 of the Regulations is amended by adding the following in alphabetical order:

“marine operator” means a Canadian domiciled marine carrier, domestic marine carrier, ferry boat operator, international marine carrier or tug boat operator. (exploitant maritime)

“mode of operation” means, in respect of a vessel, the operating profile of the vessel, such as being underway, in manœuvres, in hotelling, at anchor or in dry dock. (mode d’exploitation)

11. The Regulations are amended by adding the following after section 15:

15.1 (1) A marine operator must provide to the Minister information about

(2) A marine operator referred to in column I of Schedule III must provide to the Minister the details relating to the information required by subsection (1) that are provided for in the form referred to in column II for the reporting period set out in column III before the end of the day set out in column IV.

12. (1) The portion of section 16 of the English version of the Regulations before the definitions is replaced by the following:

16. The following definitions apply in this Part.

(2) The definitions “courier”, “level I motor carrier”, “level II motor carrier”, “level III motor carrier”, “level IV motor carrier” and “motor carrier” in section 16 of the Regulations are replaced by the following:

“courier” means a for-hire motor carrier that transports only small packages and parcels. (messager)

“level I motor carrier” means a for-hire carrier that has an annual operating revenue of at least $12,000,000. (transporteur routier de niveau I)

“level II motor carrier” means a for-hire carrier that has an annual operating revenue of at least $1,000,000 but less than $12,000,000. (transporteur routier de niveau II)

“level III motor carrier” means a for-hire carrier or an owneroperator that has an annual operating revenue of at least $30,000 but less than $1,000,000. (transporteur routier de niveau III)

“level IV motor carrier” means a motor carrier that is not a for-hire carrier and is part of a corporation that has an annual operating revenue of at least $1,000,000. (transporteur routier de niveau IV)

“motor carrier” means a carrier that transports commodities by truck between provinces, between Canada and the United States or between Canada and Mexico. (transporteur routier)

13. The Regulations are amended by adding the following after section 17:

17.1 (1) A motor carrier must provide to the Minister information about each vehicle in its fleet, including

(2) A motor carrier must provide to the Minister information about each trailer in its fleet, including

(3) A motor carrier must provide to the Minister information about its revenues, expenses and operations, including

(4) A level I motor carrier, level II motor carrier, level III motor carrier or level IV motor carrier must provide to the Minister information about its shipments, including

(5) A motor carrier referred to in column I of Schedule IV.1 must provide to the Minister the details relating to the information required by subsections (1) to (4) that are provided for in the form referred to in column II for the reporting period set out in column III before the end of the day set out in column IV.

14. (1) The portion of section 18 of the English version of the Regulations before the definitions is replaced by the following:

18. The following definitions apply in this Part.

(2) Section 18 of the Regulations is amended by adding the following in alphabetical order:

“scheduled passenger service” means a service that is offered by a passenger carrier, that operates on a regular basis according to a posted schedule and for which tickets are sold individually to passengers. (service passagers régulier)

15. The Regulations are amended by adding the following after section 19:

19.1 (1) A passenger carrier must provide to the Minister information about each vehicle in its fleet, including

(2) A passenger carrier operating a scheduled passenger service on a city-pair basis must provide to the Minister

(3) A passenger carrier must provide to the Minister operational and financial information, including

(4) A passenger carrier referred to in column I of Schedule V.1 must provide to the Minister the details relating to the information required by subsections (1) to (3) that are provided for in the form referred to in column II for the reporting period set out in column III before the end of the day set out in column IV.

16. Section 20 of the Regulations is amended by adding the following in alphabetical order:

“airport” has the same meaning as in subsection 3(1) of the Aeronautics Act. (aéroport)

17. The Regulations are amended by adding the following after section 21:

21.1 (1) The operator of an airport that is not served, either on-site or remotely or either full-time or part-time, by a NAV CANADA control tower, flight service station or community aerodrome radio station must provide to the Minister information about each aircraft movement at the airport during periods when the airport is staffed, including the following information when it is available:

(2) The operator must provide to the Minister the details relating to the information required by subsection (1) that are provided for in the form referred to in column I of Part I.1 of Schedule VI for the reporting period set out in column II before the end of the day set out in column III.

21.2 (1) The operator of an airport that is not owned by the Government of Canada must provide to the Minister information about the airport’s balance sheet and income statement, including

(2) If the operator does not produce a balance sheet for the airport, the operator must provide that information to the Minister instead of the information referred to in paragraphs (1)(a) to (d).

(3) If the operator does not produce an income statement for the airport, the operator must provide that information to the Minister instead of the information referred to in paragraphs (1)(e) to (j).

(4) An operator of multiple airports that does not keep separate accounts for each of its airports may provide the information required by subsections (1) to (3) in aggregate for all of its airports if the operator identifies the airports and indicates that separate accounts are not kept for each airport.

(5) The operator must provide to the Minister the details relating to the information required by subsections (1) to (4) that are provided for in the form referred to in column I of Part I.2 of Schedule VI for the reporting period set out in column II before the end of the day set out in column III.

18. The Regulations are amended by adding the following after section 22:

22.1 (1) An air navigation undertaking must provide to the Minister information about each flight for which a flight plan was submitted electronically to an air navigation authority, including

(2) An air navigation undertaking must provide to the Minister information about each flight that enters or exits Canadiancontrolled airspace, other than airspace delegated to Canada, and for which the air navigation undertaking has surveillance data or other monitoring data for the period during which the flight is within the Canadian Domestic Airspace. The information must include

(3) An air navigation undertaking must provide to the Minister the details relating to the information required by subsections (1) and (2) that are provided for in the form referred to in column I of Part III of Schedule VI for the reporting period set out in column II before the end of the day set out in column III.

19. Section 40 of the Regulations is renumbered as subsection 40(1) and is amended by adding the following:

(2) A port authority must provide to the Minister information about the characteristics of the port, including

(3) A port authority must provide to the Minister the details relating to the information required by subsection (2) that are provided for in the form referred to in column I of Schedule XI for the reporting period set out in column II before the end of the day set out in column III.

20. The Regulations are amended by adding the following after Part X:

PART XI

CANADA BORDER SERVICES AGENCY

INFORMATION

41. (1) The Canada Border Services Agency must provide to the Minister, before the end of 90 days after the end of the month in which it is collected,

(2) The Canada Border Services Agency must provide to the Minister the information reported under section 12 or 95 of the Customs Act before the end of 90 days after the end of the month in which the information is reported.

21. Schedule I to the Regulations is replaced by the Schedule I set out in Schedule 1 to these Regulations.

22. Schedule III to the Regulations is replaced by the Schedules II.1 and III set out in Schedule 2 to these Regulations.

23. Items 1 and 2 of Schedule IV to the Regulations are repealed.

24. The Regulations are amended by adding, after Schedule IV, the Schedule IV.1 set out in Schedule 3 to these Regulations.

25. The Regulations are amended by adding, after Schedule V, the Schedule V.1 set out in Schedule 4 to these Regulations.

26. Schedule VI to the Regulations is amended by replacing “(Sections 21 and 22)” after the heading “SCHEDULE VI” with “(Section 21, subsections 21.1(2) and 21.2(5), section 22 and subsection 22.1(3))”.

27. Schedule VI to the Regulations is amended by adding the following after Part I:

PART I.1

Item

Column I


Form

Column II

Reporting Period

Column III


Day

1.

Aircraft Movement Statistics, published by Statistics Canada

monthly

the day that is 30 days after the last day of the reporting period

PART I.2

Item

Column I

Form

Column II
Reporting Period

Column III

Day

1.

Balance Sheet, Airport, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually, based on the fiscal year of the airport

the day that is 180 days after the last day of the reporting period or, if the operator does not produce a balance sheet for the airport, the day that is January 30 in the year after the last day of the reporting period

2.

Income Statement, Airport, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually, based on the fiscal year of the airport

the day that is 180 days after the last day of the reporting period or, if the operator does not produce an income statement for the airport, the day that is January 30 in the year after the last day of the reporting period

28. Schedule VI to the Regulations is amended by adding the following after Part II:

PART III

Item

Column I

Form

Column II Reporting Period

Column III

Day

1.

Flight Plan Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

2.

Flight Tracking Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

29. Schedule X to the Regulations is amended by replacing “(Section 40)” after the heading “SCHEDULE X” with “(Subsection 40(1))”.

30. The Regulations are amended by adding, after Schedule X, the Schedule XI set out in Schedule 5 to these Regulations.

COMING INTO FORCE

31. These Regulations come into force on the day on which they are published in the Canada Gazette, Part II.

SCHEDULE 1
(Section 21)

SCHEDULE I
(Section 7)

AIR CARRIER DOCUMENTS

Item

Column I

Air Carrier or General Aviation Operator

Column II


Form

Column III

Reporting Period

Column IV


Day

Column V

Form and Manner

1.

level I air carriers, level II air carriers, level III air carriers, level IV air carriers and foreign air carriers that operate charter services on an aircraft whose maximum certificated take-off weight is 5 670 kg or more

The Enplaned / Deplaned Flight Centric Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program

2.

level I air carriers and level II air carriers that transported more than 600,000 revenue passengers by scheduled services in each of the two calendar years before the year in which the information is provided

Revenue Passenger Origin-Destination Survey — Statement 3 (I, II), published by Statistics Canada

quarterly

the day that is 30 days after the last day of the reporting period

  

3.

level II air carriers, level III air carriers, level IV air carriers and foreign air carriers that operate scheduled services only on aircraft whose maximum certificated take-off weight is not more than 25 000 kg

The Enplaned / Deplaned Coupon Centric Survey or The Enplaned / Deplaned Flight Centric Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

quarterly

the day that is 30 days after the last day of the reporting period

electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program

4.

level I air carriers

The Enplaned / Deplaned Flight Centric Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program

5.

level II air carriers, level III air carriers, level IV air carriers and foreign air carriers that operate scheduled services on at least one aircraft whose maximum certificated take-off weight is more than 25 000 kg

The Enplaned / Deplaned Flight Centric Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program

6.

level I air carriers

Fare Basis Report — Statement 8(1), published by Statistics Canada

quarterly

the day that is 60 days after the last day of the reporting period

  

7.

level I air carriers and level II air carriers

Scheduled Services, Revenue Operating Statistics, Quarterly — Statement 10 (I, II), published by Statistics Canada

quarterly

the day that is 60 days after the last day of the reporting period

  

8.

level III air carriers

Scheduled Services, Revenue Operating Statistics, Annual — Statement 10 (III), published by Statistics Canada

annually

the day that is 90 days after the last day of the reporting period

  

9.

level I air carriers and level II air carriers that operate charter services

Charter Services, Revenue Operating Statistics, Quarterly — Statement 12 (I, II), published by Statistics Canada

quarterly

the day that is 60 days after the last day of the reporting period

  

10.

level III air carriers that operate charter services

Charter Services, Revenue Operating Statistics, Annual — Statement 12 (III), published by Statistics Canada

annually

the day that is 90 days after the last day of the reporting period

  

11.

level I air carriers

Balance Sheet, Annual — Statement 20 (I), published by Statistics Canada

annually

the day that is 90 days after the last day of the reporting period

  

12.

level II air carriers and level III air carriers

Balance Sheet, Annual — Statement 20 (II, III), published by Statistics Canada

annually

the day that is 90 days after the last day of the reporting period

  

13.

level I air carriers and level II air carriers

Statement of Revenues and Expenses, Quarterly — Statement 21 (I, II), published by Statistics Canada

quarterly

the day that is 60 days after the last day of the reporting period

  

14.

level I air carriers and level II air carriers

Statement of Revenues and Expenses, Annual — Statement 21 (I, II), published by Statistics Canada

annually

the day that is 90 days after the last day of the reporting period

  

15.

level III air carriers

Statement of Revenues and Expenses, Annual — Statement 21 (III), published by Statistics Canada

annually

the day that is 90 days after the last day of the reporting period

  

16.

level IV air carriers

Statement of Revenues, Annual — Statement 21 (IV), published by Statistics Canada

annually

the day that is 90 days after the last day of the reporting period

  

17.

level I air carriers, level II air carriers, level III air carriers and level IV air carriers

Fleet Report — Statement 30 (I, II, III, V), published by Statistics Canada

October 15 of each year

the day that is 30 days after the last day of the reporting period

  

18.

level I air carriers, level II air carriers, level III air carriers and level IV air carriers

Aircraft Fleet and Fuel Consumption Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually

the day that is 90 days after the last day of the reporting period

  

19.

level I air carriers

Major Air Carriers Key Financial and Operating Statistics Monthly Survey, published by Statistics Canada

monthly

the day that is 14 days after the last day of the reporting period

  

20.

level I air carriers, level II air carriers and level III air carriers that transported more than 10 000 tonnes of cargo in the previous calendar year and foreign air carriers that transported more than 10 000 tonnes of cargo to or from Canada in the previous calendar year

Statement of Air Cargo Fluidity Indicators, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

  

21.

general aviation operators that operate at least one aircraft with a maximum certificated take-off weight of 5 670 kg or more

General Aviation Operational Survey (Detailed), included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program

22.

general aviation operators that do not operate any aircraft with a maximum certificated take-off weight of 5 670 kg or more

General Aviation Operational Survey (Summary), included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

quarterly

the day that is 30 days after the last day of the reporting period

electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program

23.

general aviation operators

General Aviation Financial Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually

the day that is 90 days after the last day of the reporting period

electronically using Transport Canada’s Electronic Collection of Air Transportation Statistics program

SCHEDULE 2
(Section 22)

SCHEDULE II.1
(Subsection 12.2(4))

RAIL CARRIER DOCUMENTS

Item

Column I


Rail Carrier

Column II


Form

Column III

Reporting Period

Column IV


Day

1.

class I rail carriers, class II rail carriers and class III rail carriers

Locomotive Fleet Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually

the day that is 90 days after the last day of the reporting period

2.

class I rail carriers and class II rail carriers that transport passengers and that realized revenues of at least $100,000,000 from transporting passengers in the calendar year before the year in which information is provided under subsection 12.2(2) of these Regulations

Passenger Rail Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

3.

class I rail carriers and class II rail carriers that transport passengers and that realized revenues of less than $100,000,000 from transporting passengers in the calendar year before the year in which information is provided under subsection 12.2(3) of these Regulations

Passenger Rail Line Traffic Report, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

monthly

the day that is 30 days after the last day of the reporting period

SCHEDULE III
(Section 15 and subsection 15.1(2))

MARINE OPERATOR DOCUMENTS

Item

Column I

Marine Operator

Column II


Form

Column III


Reporting Period

Column IV


Day

1.

Canadian domiciled marine carriers

Annual Survey of Water Carriers, published by Statistics Canada

annually

the day that is May 20 in the year after the last day of the reporting period

2.

Canadian domiciled marine carriers other than ferry boat operators or tug boat operators

S.1 Domestic Shipping Report, published by Statistics Canada

beginning on the day on which the voyage begins and ending on the day on which the voyage ends

the day that is 40 days after the last day of the reporting period

3.

ferry boat operators and tug boat operators

S.4 Shipping Report - Towboat and Ferry Operators, published by Statistics Canada

quarterly

the day that is 40 days after the last day of the reporting period

4.

international marine carriers

General Declaration, form A6, published by the Canada Border Services Agency

beginning on the day on which the voyage begins and ending on the day on which the voyage ends

the day that is 40 days after the last day of the reporting period

5.

any marine operator

Freight/Cargo Manifest, form A6A, published by the Canada Border Services Agency

beginning on the day on which the voyage begins and ending on the day on which the voyage ends

the day that is 40 days after the last day of the reporting period

6.

Canadian domiciled marine carriers and domestic marine carriers

Annual marine fleet inventory and fuel consumption survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually

the day that is 90 days after the last day of the reporting period

SCHEDULE 3
(Section 24)

SCHEDULE IV.1
(Subsection 17.1(5))

MOTOR CARRIER DOCUMENTS

Item

Column I


Motor Carrier

Column II


Form

Column III

Reporting Period

Column IV


Day

1.

level I motor carriers, level II motor carriers, level III motor carriers and level IV motor carriers

Annual Truck Fleet Inventory and Fuel Consumption Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually

the day that is 90 days after the last day of the reporting period

2.

couriers

2007 Survey of the Couriers and Local Messengers Industry, published by Statistics Canada

annually

the day that is 30 days after the day on which the courier receives the form referred to in column II sent by Statistics Canada under the Statistics Act

3.

level I motor carriers, level II motor carriers, level III motor carriers and level IV motor carriers

Quarterly Trucking Survey, published by Statistics Canada

quarterly

the day that is indicated on the survey label by Statistics Canada under the Statistics Act

4.

level I motor carriers, level II motor carriers, level III motor carriers and level IV motor carriers

Annual Trucking Survey, published by Statistics Canada

annually

the day that is 30 days after the day on which the motor carrier receives the form referred to in column II sent by Statistics Canada under the Statistics Act

5.

level I motor carriers, level II motor carriers, level III motor carriers and level IV motor carriers

Trucking Commodity Origin and Destination Survey (TCOD), record number 2741, published by Statistics Canada

annually

the day on which the details are requested by Statistics Canada under the Statistics Act

SCHEDULE 4
(Section 25)

SCHEDULE V.1
(Subsection 19.1(4))

PASSENGER CARRIER DOCUMENTS

Item

Column I

Passenger Carrier

Column II


Form

Column III

Reporting Period

Column IV


Day

1.

passenger carriers that operate a scheduled passenger service

Scheduled Intercity Bus Passenger Origin and Destination Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

quarterly

the day that is 60 days after the last day of the reporting period

2.

passenger carriers that operate a scheduled passenger service

Passenger Motor Carrier Schedules Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

quarterly

the day that is 60 days after the last day of the reporting period

3.

any passenger carrier

Annual Bus Fleet Inventory and Fuel Consumption Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually

the day that is 90 days after the last day of the reporting period

4.

passenger carriers that operate a scheduled passenger service

Scheduled Intercity Bus Freight and Parcel Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

quarterly

the day that is 60 days after the last day of the reporting period

5.

any passenger carrier

Passenger Bus & Urban Transit Survey, published by Statistics Canada

annually

the day that is 30 days after day on which the passenger carrier receives the form referred to in column II sent by Statistics Canada under the Statistics Act

6.

passenger carriers that operate in two or more provinces

Supplement to the Passenger Bus & Urban Transit Survey, published by Statistics Canada

annually

the day that is 30 days after day on which the passenger carrier receives the form referred to in column II sent by Statistics Canada under the Statistics Act

SCHEDULE 5
(Section 30)

SCHEDULE XI
(Subsection 40(3))

PORT AUTHORITY DOCUMENT

Item

Column I


Form

Column II

Reporting Period

Column III


Day

1.

Port Infrastructure Survey, included in the Compendium of Survey Data Record Layouts, TP 14930, published by Transport Canada on November 1, 2011

annually

the day that is 60 days after the last day of the reporting period

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issue: The Carriers and Transportation and Grain Handling Undertakings Information Regulations (the Regulations) were last thoroughly reviewed in 1998, as a result of a needs assessment conducted in 1996. Since then, in the field of transportation, issues like gateways and corridors, Canada’s competitiveness, the environment and security have each taken on a much larger role in Transport Canada’s agenda. Given the rapid changes in emerging priority areas of concern, this creates a situation where data currently collected by and for Transport Canada are becoming less and less sufficient for the purpose of enabling evidence-based policy making and decisions.

Description: The Regulations Amending the Carriers and Transportation and Grain Handling Undertakings Information Regulations (amendments) specify the information that transportation stakeholders are required to provide, modifications to existing surveys in the air, marine, rail and road transportation modes, and new information collection mechanisms. For example, they expand the scope of existing surveys in aviation, collect information on fuel usage and emissions for all modes of transportation and collect passenger flow data from major intercity railways and intercity bus companies.

Cost-benefit statement: The net cost to industry will be $1.2 million the first full year of implementation, should all measures be instated in the first year, and $284,000 in the subsequent years. There are no costs to any other stakeholder, including the Government of Canada. The costs of new data collection initiatives will be offset by the use of Internet-based technology, automated reporting and the suspension of selected surveys which no longer provide essential information to Transport Canada. These costs have a present value of $3.2 million over a 10-year period. These costs will be divided across 4 modes of transportation, 9 stakeholder classes and over 2 000 individual stakeholders. Transport Canada’s intention is to use new data sources set out in the amendments to complement existing data obtained through the existing Regulations, voluntary accord or commercially, to meet its future data needs. In the past, existing data has been used extensively by Transport Canada to manage crises, monitor the transportation industry, economic development, infrastructure planning and investment and for policy development and coordination. The data collected also allows the Minister to meet statutory obligations to table in Parliament an annual report on the state of transportation in Canada, as per section 52 of the Canada Transportation Act. The new data requirements will therefore help Transport Canada better address important transportation issues and fulfill its statutory obligation.

“One-for-One” Rule and small business lens: The “One-for-One” Rule applies to these regulatory amendments. The total net administrative cost increase of these Regulations is $1.2M in the first year and $284,000 in subsequent years. Over 10 years and at a 7% discount rate, this represents an annualized cost of $378,000. These costs will be divided amongst over 2 200 stakeholders representing 9 distinct stakeholder classes, ensuring that the impact to individual stakeholders remains modest. The small business lens does not apply to this proposal.

Domestic and international coordination and cooperation: Extensive consultations with industry were conducted by Transport Canada prior to proposing these amendments. In addition, further consultations will need to take place with industry prior to launching new surveys, where required, to ensure an efficient alignment of technologies and methodologies, properly define each survey field and ensure that industry clearly understands the information that these surveys are meant to collect. These additional consultations will ensure that the industry is fully aware of and understands Transport Canada’s information requirements. While some of these requirements also exist in other countries, other uniquely Canadian requirements reflect the unique needs of the Government of Canada.

Performance measurement and evaluation: The new and modified surveys will be monitored in the same fashion as existing surveys to ensure that all stakeholders covered by them are submitting information and that said information is valid, accurate and complete.

Background

In June 2007, Bill C-11, carrying amendments to the Canada Transportation Act (the Act), received Royal Assent. Amendments to the Act now allow the Minister of Transport to collect information for environmental and security purposes, in addition to safety, infrastructure, policy, planning and grain transportation monitoring. The amendments to the Act presented an opportunity for Transport Canada to review its existing regulations regarding information and data collection and management, which were last reviewed in 1996, and last amended in 1998. The Carriers and Transportation and Grain Handling Undertakings Information Regulations (the Regulations) are made under section 50 of the Canada Transportation Act.

Since 1998, both security and environmental concerns have played a greater role in the services the Government of Canada delivers to Canadians, as reflected in Transport Canada’s Program Activity Architecture. Along with innovative new strategic approaches, such as the Gateways and Corridors strategy, these new concerns have caused Transport Canada (TC) to re-examine its needs for information.

Issue

The Regulations are not often updated, as each time they are changed industry must change its reporting structure, and Transport Canada must change its data collection structure. In that context, it becomes important for regulatory reviews to address both present and anticipated issues. The risk in not makingthe regulatory changes is that Transport Canada will not have access to the type of information it requires in order to carry out its mission and mandate. There is also a risk that outdated information/reporting regulations could prevent improvements in reducing the administrative burden/cost on the sector, while at the same time maintaining an administrative burden in place for industry which does not yield great benefits to Transport Canada.

Objectives

The objectives of the Regulations Amending the Carriers and Transportation and Grain Handling Undertakings Information Regulations (amendments) are to permit the Government of Canada to obtain information for security, safety, environmental and infrastructure planning purposes. Updating the Regulations provides industry with more modern and efficient means of reporting and enables greater information sharing between departments, thus removing the burden for industry of having to report the same information twice.

Furthermore, with access to new information, Transport Canada will be able to better monitor Canada’s transportation network, which in turn will enable it to craft policies and regulations that are better aligned with the current transportation industry outlook.

In addition, as the Regulations were last thoroughly amended in 1997 following a review done in 1996, it is necessary to update certain regulatory requirements to make them better reflect the current situation. For example, 15 years ago, transportation security did not have the same level of importance as it does today. The amendments create new opportunities for Transport Canada to obtain relevant and pertinent information across all modes of transportation. This information supports evidence-based decision-making and helps the Government improve the safety, security, efficiency and sustainability of Canada’s transportation network.

The Government of Canada is called to respond to increasingly complex issues for which it finds itself in search of information. Evidence-based decision-making is based on accurate, timely and complete information. Presently, the amount of information available varies dramatically between modes of transportation and there is some reliance on anecdotal evidence, proxies and second-best options. The amendments address this gap and ensure that sufficient information exists on the Canadian transportation sector to support the development and implementation of future legislative, regulatory, and program initiatives.

Description

The Regulations define the obligations of carriers to complete a variety of surveys within a prescribed delay and with a prescribed frequency. They define which carriers must fill out which surveys and provide various definitions for the terms used in the Regulations.

The amendments specify the data elements that transportation stakeholders are required to provide and refer them to the Schedule where the appropriate surveys that need to be filled out are listed. The amendments also specify the frequency of reporting, be it monthly, quarterly or annually, and the grace period given to carriers to collect and report their data.

The amendments fall under five broad categories, namely air, marine, rail, road and trade. The following section briefly describes the changes for each group. In addition to the propositions below, for all modes of transportation, the wording of some regulatory elements is updated. This update is transparent to transportation stakeholders and only enshrines into regulation existing practices. For example, over the years some of the surveys have changed names or versions, but these changes have not been reflected in the Regulations. Making these changes therefore aligns the regulatory framework with current business practices.

Air

In light of the great number of different types of stakeholders in the air transportation industry (airlines, airports, air navigation services, flight schools, commercial general aviation operators), the air mode is likely to be the most impacted by the amendments, although great care has been taken to ensure that the impact on individual stakeholders is minimized.

Under the amendments, the following changes apply to how carriers are defined and what information they are required to report:

There are several measures that reduce administrative burden on air carriers, namely

Marine

Marine transportation is impacted in two distinct ways by the amendments. Marine operators are required to provide Transport Canada information on a vessel-by-vessel basis while Canadian Port Authorities are required to report on their infrastructure. Hence, the amendments require

Measures that reduce the administrative burden on marine operators include

Moreover, an amendment to allow the Canadian Border Services Agency (CBSA) to provide detailed marine import and export data from both the general declaration (Form A6) and the manifest (Form A6-A) directly to Transport Canada will result in fewer ad hoc requests placed on industry for data.

Road

Motor-vehicle carriers are the most prevalent form of public transportation in Canada, yet there are some important information gaps in that sector. The amendments permit Transport Canada to collect data on the motor vehicle fleet and its fuel consumption on a new survey. In addition, passenger carriers that provide scheduled intercity service are required to provide information on both demand and effective capacity on two new surveys. This bridges an important data gap and provides Transport Canada equivalent metrics across all modes of public passenger transportation.

The amendments require

Measures that reduce the administrative burden on motor carriers include

Both are administered by Statistics Canada.

Rail

Rail transportation is unique in that the carrier is also the owner of the infrastructure. For this reason, rail carriers must report on both their infrastructure and their operations. New surveys will collect information on the fleet and on passenger itinerary or volumes, depending on the size of the operations. In addition, railways will provide information on their infrastructure. Hence, the amendments require

Trade

The amendments will enable the Minister of Transport to obtain data on imports and exports from the Canada Border Services Agency (CBSA) which will allow it to participate in the CBSA Single Window Initiative.

Regulatory and non-regulatory options considered

The Government of Canada has three ways to obtain information: regulation, voluntary compliance and purchasing from third parties. Voluntary compliance has the advantage of being well received by the industry but it is not reliable in the long run. This type of data collection is better suited for one-time ad hoc studies than for continuous data gathering. Purchasing information is often easier and possibly less costly for the Crown, but there are limitations on the data available on the market and it is not always possible to customize the datasets to meet precise needs. The regulatory approach permits Transport Canada to design the dataset to ensure it provides relevant and required information to fulfill its mandate, while taking into account the impact it may have on the industry and finding ways to mitigate that impact. It guarantees a high compliance rate and consistency over time.

Benefits and costs

Summary

The changes in data requirements for each industry sector were identified and price/time/quantity compliance cost data was generated by either “representative” firms or industry associations, or both, where possible. The internationally accepted Standard Cost Methodology was adopted where possible as a framework for the estimates.

The three most costly changes, in rank order, involve (1) collecting fuel consumption data from airlines, (2) expanding operational data collection to smaller charter flights (mostly smaller air carriers), and (3) collecting movement data from smaller airports. The latter two changes place an aggregate burden on smaller entities, but there are many of them and costs per organization are not that large. In the past, Transport Canada has used the available data extensively. Four categories of past uses can be discerned, namely crisis management, monitoring industry developments and fulfilling the obligation to report annually to Parliament on the state of the Canadian transportation industry, as per section 52 of the Canada Transportation Act, economic development, and policy development and coordination.

In order to offset the costs of these changes on industry, the Government of Canada has taken significant steps that have resulted in more streamlined and efficient data collection mechanisms, namely

While it is difficult to say what specific benefits will be, when they will occur, or even in what areas they may appear, it is likely that industry and Canadians will benefit from the regulatory changes as summarized in the accounting statement below.

Accounting statement

Summary statement of costs and benefits

Base Year 2013

2014

2022

Annual Average: 2014–2022

Total Present Value

A. Quantified impacts (thousands of 2013 dollars)

Benefits

Air carriers

845

845

845

845

6,779

Airports

57

57

57

57

461

Navigation undertakings

2

2

2

2

18

Port authorities

44

44

44

44

354

Marine operators

16

16

16

16

131

Motor carriers (freight)

242

242

242

242

1,940

Costs

Air carriers

1,895

409

409

558

4,770

Commercial general aviation

21

66

66

62

486

Airports

38

325

325

296

2,322

Navigation undertakings

19

36

36

34

272

Port authorities

7

4

4

4

32

Marine operators

3

40

40

36

283

Railway carriers

3

34

34

31

243

Motor carriers (passengers)

182

178

178

179

1,434

Motor carriers (freight)

265

398

398

384

3,058
           
 

TOTAL

-1,227

-284

-284

-378

-3,217

B. Non-monetized quantified impacts

Not applicable

C. Qualitative impacts

Quantitative benefits:

Derived from surveys being discontinued (airlines, ports, navigational undertakings) and migrating from paper-based reporting to electronic reporting.

Qualitative benefits:

  • TC is expected to use the available data extensively in four areas:
    • — Crises management
    • — Monitoring industry developments and fulfilling the statutory obligations set out in section 52 of the Canada Transportation Act
    • — Economic development
    • — Policy development and coordination

There may well be other areas in which data can be put to good use by TC and other departments.

  • Canada’s transportation industry will have the knowledge that Transport Canada will have a more complete and accurate view of the infrastructure it owns or operates and a better appreciation of the economic significance of the industry as a whole and of each mode or sector of the industry.
  • It is difficult to say with any certainty what specific benefits will accrue, when, or even in what areas. It is expected, however, that most Canadians and all parts of the transportation industry will benefit:
    • — The general public can expect to benefit from better and quicker reactions to economic, health or security crises that emerge.
    • — All segments of the transportation industry and the general public can expect to benefit from improved TC economic development decisions.
    • — The travelling public and the industry can expect to benefit through TC’s ability to negotiate more effectively on behalf of Canadian interests.
Industry profile

The transportation industry sub-sectors (see footnote 2) covered by the Regulations are critical to the productivity and competitiveness of the Canadian economy because of their pervasive intermediate role in most economic transactions. For instance, most consumer goods are transported to market (even if purchased online); businesses transport inputs such as automobile parts to production lines, and the final products then need to be moved to market; and commodities have to be transported to domestic or export markets.

In 2011, Canada’s two-way trade with the United States was valued at $551B, while two-way trade for every other country reached $342B, with China, the United Kingdom and Mexico being three of Canada’s largest trading partners. Trucking accounted for 56.5% of the value of trade with the United States followed by pipeline at 15.8%, rail at 16.9%, and marine and air at 5% each.

Transportation spending is important to all levels of government. In fiscal year 2010–11, all levels of government combined spent $41.6 billion on transportation, net of federal transfers, $2.1 billion more than in 2009–10. Federal government expenditures increased by $940 million to $6.6 billion, provincial/territorial government expenditures rose by $895 million to $19.9 billion and local government expenditures increased by $267 million to $15.1 billion. Canada’s Economic Action Plan has dramatically increased the Government’s spending on transportation.

The transportation sector is responsible for 26% of Canada’s greenhouse gas (GHG) emissions, second only to stationary sources. Transportation emissions grew at an average annual rate of 0.9% between 2000 and 2006, from 180 to 190 megatonnes (Mt), compared with 2.4% from 1995 to 2000.

The following table provides a summary profile of the Canadian transportation sectors that are affected by these regulatory amendments:

Operating revenues and expenses for Canadian-domiciled transportation carriers, 2007

(Dollar values in millions of $CDN)

 
Trucking
Rail
Bus
Air
Marine

Estimated number of firms

3,776

47

1,446

116

70

Operating revenues

$29,398

$10,482

$8,262

$16,222

$4,518

Operating expenses

$28,176

$7,989

$7,867

$15,083

$4,185

Net operating income

$1,222

$2,492

$395

$1,140

$332

Net income

$878

$2,042

$2,058

$910

$332

Operating profit margin (%)

4.2

23.8

4.8

7.0

7.4
Benefits

It is difficult to say with any certainty what the specific benefits will be, when they will occur, or even in what areas they may appear. The challenge in this exercise is that data is not being collected for one specific program, but rather for many current and yet-to-be-defined policies and programs administered by the Government. While each of these policies and programs will need to define their own benefits and merits, the access to more relevant, complete, accurate and timely information should produce better-crafted and better-monitored policies and programs. Trying to quantify these improvements is impossible as that requires a deep knowledge of what future policies and programs will be put forward by the Government with the existing data set, and how they will change with the improved data sets that result from these Regulations. In light of this, no attempt will be made to quantify the benefits, but it appears very likely that all manners of Canadians will benefit. For example,

Existing transportation data is used extensively by Transport Canada on a daily basis for a variety of reasons, which would often have been impossible to predict when a survey was first launched. For example, Transport Canada can be called to act quickly or to recommend a course for action in times of crisis, where time is of the essence and any already available pertinent information or data is closely analyzed. Moreover, it is clear that a decision must be made, no matter how imperfect the information may be, and that the time is not right to start gathering data to respond to the crisis. Therefore, to ensure decision-makers are properly able to evaluate all options, it becomes crucial to have the appropriate information on hand when issues arise.

In recent years, data was used by the Government in response to several crises, to monitor industry developments, to conduct economic analysis, to coordinate policy and to defend Canada’s interests, including

In the future, one can say with some degree of confidence that there will be new economic and pandemic health scares demanding immediate attention. One can also be quite certain that in the foreseeable future new security crises will arise, safety issues will need to be addressed, international agreements and treaties will be entered into and the environmental sustainability of transportation will continue to be challenging. Changing consumer behaviours and needs, evolving transportation patterns, changes in competitive environment, changes in infrastructure, etc., may all be harbingers of needed policy responses in a context of limited fiscal expenditures brought on by a period of deficit reduction.

The amendments represent Transport Canada’s best estimate as to data that is needed, is readily available from industry, and does not entail significant costs to gather. The amendments and the character of the potential benefits are a useful example of investing small sums to reap potentially significant but uncertain gains.

Costs — Methodology

When possible, cost estimates were derived using the Standard Cost Model, as described below in the Organization for Economic Co-operation and Department (OECD) sponsored Standard Cost Model (SCM) Manual. (see footnote 3)

The SCM uses a number of cost parameters which the manual describes as

By combining these elements, the following basic SCM formula generates an overall estimate of the administrative costs associated with a regulatory proposal:

Cost of a data requirement = Price × Time × Quantity

The changes in data requirements for each industry segment were identified and, to the extent possible, price/time/quantity data was generated for industry segment firms. Note that these are always incremental costs for the additional data elements because there is no baseline on costs of collecting the current data elements. The baseline cost was therefore assumed to be zero since none of these new requirements currently exist.

Where appropriate, Transport Canada approached either selected “representative” firms or industry associations, or both. They were asked to supply either costs for purchased services (for example if buying programming services) or the number of hours anticipated to prepare for reporting and for the actual reporting.

Unfortunately, the responses from industry did not generate a large number of data points but estimates were able to be developed.

The hourly wage used in the calculation of the cost-benefit analysis was $27.61, which is the average hourly wage of administrative personnel, as most surveys in the Regulations will likely be filled out by administrative personnel. This wage value comes from estimates of Statistics Canada’s Labour Force Survey.

The calculation of costs takes into account only costs to Canadians.

Cost was calculated both for the initial set-up, always presumed to be 2012, and for nine years of subsequent reporting. The subsequent reporting costs for the period 2013–2021 were calculated at present value, using a discount rate of 8%. While implementation is planned to be staggered and phased in over several years, the lack of information on this approach makes it difficult to estimate phased-in costs. This situation likely results in a minor overestimate of costs, especially in the first years.

In the case of surveys that were discontinued, Transport Canada did have compliance cost data on some of these surveys, in terms of the time it took to complete them. When that data was available, the amount of time required to fill out a survey by one participant was multiplied by the $27.61 hourly wage and then multiplied by the number of participants in the survey. When such data was not available, or in the case of efficiency gains due to better technology, time savings were estimated in a manner consistent with how time costs were estimated for new surveys. Again, any time savings were translated into a monetary savings by multiplying it by an hourly wage of $27.61 and by the number of participating firms. Thus, the approach to calculating incremental costs brought on by these regulatory amendments was emulated when calculating incremental savings from survey suspension and efficiency gains.

Two different reporting models were used to estimate cost. The first assumed a heavy upfront investment with minimal recurring costs in subsequent years. This model is consistent with automated reporting, which is already in place with over 100 airlines and 50 trucking companies. The second assumed very little upfront investment (likely training) and repetitive costs each time a given survey must be filled out (survey frequencies vary and can be monthly, quarterly or annually). In the case of the latter scenario, there were no assumptions made regarding efficiency gains over time as a high turnover of employees and changing responsibilities with a transportation company will often negate any efficiency gain. In addition, for low frequency surveys, such as quarterly or annual surveys, one could argue that efficiency gains are negated by the fact that employees may need to re-familiarize themselves with the process. A small number of companies were questioned on this possible gain in efficiency and they indicated that once a system was in place, reporting time tended to be constant for subsequent reporting periods.

The second important issue in estimating cost was population size. Again, these surveys have two approaches: most use a census approach, meaning that every single entity within a population will be required to submit data, but a handful use a sampling approach, particularly with commercial general aviation and freight motor carriers where the population size exceeds 1 000.

In the case of census-type surveys, the number of firms will affect the cost as the model estimates costs for a sample of firms and scales up the results to the population total.

An examination of the macroeconomic outlook and the transportation outlook indicates that the next few years are going to be marked by stable, relatively low-level growth. (see footnote 4) In this kind of environment, it would be surprising to witness major structural and fundamental changes to Canada’s transportation industry. Therefore, it is reasonable to conclude that while firms will continue to enter and exit the Canadian transportation market, the net effect will be relatively insignificant on census-type surveys.

In the case of sampling surveys, the sample size was assumed constant at 100 for both trucking and commercial general aviation, independent of how the population size could change. In light of the fact that the sample would most likely be biased towards larger operators, it was presumed that some automation would be able to penetrate these surveys, although the uptake rate would likely be less high than for census surveys as companies who would only occasionally be part of the survey would not have an incentive to invest in automation.

It was also assumed that a company would not change reporting methods mid-stream. For example, it was assumed that no company would report manually for five years and then switch to an automated reporting regime, or vice versa, as no data were available for this. Transport Canada’s nine-year-old Electronic Collection of Air Transportation Statistics (ECATS) program shows that fewer than 10 carriers, out of a possibility of 282, have switched reporting methods. Of those carriers who changed their reporting methods, some migrated to a more automated reporting regime while others opted to reduce the level of automation. As these are one-off cases, they cannot be used as the basis to generalize or make assumptions on future behaviour; therefore, it was decided that the reporting regime would remain constant over time.

The cost-benefit analysis only measured the net impact of the changes to the Regulations. For example, marine carriers already report the type of goods they carry. The amendments would also have them report the United Nations code for the dangerous goods they carry. Therefore, the cost-benefit analysis only measured the incremental cost of reporting that code. In the case of surveys with an expanding scope, the reporting cost was only calculated for carriers who are not reporting presently but would be reporting under the new Regulations. Cost estimates also took into account the lower cost of reporting existing data and the higher cost of reporting data which does not presently exist, as well as compilation cost if data only exists on paper format and needs to be manually collated and entered into some electronic reporting system.

It should be noted that the costs figures estimated here vary significantly from those published in the Canada Gazette, Part I, on February 19, 2011. The reason for this is threefold:

Sensitivity analysis

Ideally, cost estimates would have been based on a random selection of firms. However, this was neither cost-effective nor feasible within the timeframe. As a result, the sensitivity analysis could not be based on internal sample variability.

The approach adopted was to assume that for the initial set-up costs, the estimates provided could vary by as much as −25% to +50%. This asymmetry was chosen because with information technology (IT) projects, the time and costs of development projects tend to be significantly underestimated.

In contrast, it was assumed that estimates for the on-going operating costs could vary by as much as −50% to +25%. This asymmetry range reflects observations made in the United States: ex post evaluations of costs and benefits averaged about 50% (see footnote 5) of the ex ante estimates of costs and benefits. Moreover, operating costs should diminish over time due to organizational learning.

Changing assumptions does not significantly impact the relative burdens on industry segment, nor does it change which statements are the most costly, as most costs are borne up front with initial set-up cost. Once set up, most of these surveys generate only modest recurrent costs, which are offset by efficiency gains and survey discontinuances.

“One-for-One” Rule

This regulatory amendment is subject to the “One-for-One” Rule and its impact is included in Transport Canada’s inventory of regulatory compliance costs. The proposal is considered a net “IN” under that rule and no “carve-outs” were applied.

The increase in administrative cost reflects the fact that transportation stakeholders will be required to provide new information to Transport Canada as explained in the “Description” section of this document. In some cases, this new information generates only modest amounts of data and requires little or no set-up and training costs and only the labour cost of filling out an electronic form as little as once a year. In other cases, such as with flight plan reporting by air navigation service providers, there exists an important upfront cost to create a reporting system, but very little if any recurring cost as the system would be expected to be automated.

To partially offset these extra costs, the Government of Canada suspended a number of surveys in the air, marine and trucking modes and has improved the efficiency of data collection through the use of technology and B2G (Business to Government) information technology (IT) solutions.

The total annualized administrative cost increase is approximately $378,000, using a 7% discount rate. This cost increase is applied to 2 293 businesses, which translates to an estimated increase in cost per business of $140.30. Note that this figure is lower than that used in the cost-benefit analysis as not all Canadian-domiciled transportation carriers are impacted by these Regulations. This represents a total present value cost of $3.3M over 10 years.

Small business lens

The small business lens does not apply to this proposal, as there are no costs to small business.

Rationale

The rationale for the amendments is to close the gap that exists between Transport Canada’s past and future data needs and refresh and adapt regulations that were last thoroughly reviewed over 15 years ago. In the last 15 years, Transport Canada has seen its role in infrastructure (gateways, corridors and borders), security and the environment increase dramatically. Furthermore, new information technology and management tools permit the collection of important quantities of data at a very low cost to both industry and government.

In addition, the amendments clearly present the main data elements currently collected in existing surveys, rather than simply referring to a survey number, as is the case in the existing Regulations. This approach is more transparent for stakeholders as it better illustrates the main data elements that Transport Canada can collect.

The cost-benefit analysis has identified both tangible costs and clear benefits that could flow from these amendments. To address the question of cost, Transport Canada intends to reduce the administrative burden of firms by using appropriate technology to simplify how firms report their data. When large amounts of data are sent on an on-going basis, Transport Canada will favour technologies that are compatible with automated processes, in order to limit recurring costs to companies.

The small relative cost increases are likely to be absorbed by the affected industry sectors. It is not believed that costs will be passed forward or backward in the market to any significant degree but absorbed within entity operating margins.

As for benefits, Transport Canada is cognizant that there is an increased risk in less than optimal policies and programs if it does not have access to all the data it requires to conduct a proper evidence-based decision-making process. The new data elements and expanded survey scopes in the amendments greatly reduce this risk for Transport Canada.

In conclusion, the amendments have a relatively low financial impact on the transportation sector and its impact will be spread over a great number of firms, thus minimizing their respective burden. However, the potential benefit can have an impact on all Canadians, whether they are purveyors of transportation services or users of these same services.

Consultation

Transport Canada has been favouring a consultative approach as it has moved forward with this project. In February 2009, internal consultations were conducted with departments and agencies that would be affected by the amendments, including Statistics Canada, the Canadian Transportation Agency, the Canadian Air Transport Security Administration and the Canada Border Services Agency.

A list of new information elements that would be required from the industry was shared with key transportation stakeholders, such as airlines, airports, ports, shipping companies, railways, trucking firms and their respective representative organizations. This process was conducted as an online survey, where participants were asked to evaluate the feasibility of reporting certain types of information.

Following the electronic consultations, separate bilateral consultative meetings took place with a few key stakeholders, including the Railways Association of Canada and some of its members, NAV CANADA, the Canadian Trucking Alliance and the Northern Air Transport Association (NATA) during the spring and summer of 2009.

In the fall of 2009, further consultations took place with Air Canada, WestJet, Air Transat, Jazz Air, the Air Transport Association of Canada, the National Airline Council of Canada, the Canadian Airports Council and its security operations committee. These consultations helped us better define the data requirements that were to be inserted into the Regulations as well as eliminate some proposals which were judged too cumbersome for industry.

In early 2010, further consultations took place with the intercity bus industry and with the marine industry. Just as with the other modes of transportation, the goals of the consultation were to inform industry about upcoming regulatory change, address any concerns they may have, give industry a chance to provide valuable input into the drafting of the amendments and re-evaluate Transport Canada’s position in light of industry’s response. Consultations with all modes formally ended in April 2010, but keeping an open line of communication with industry stakeholders remains a priority for Transport Canada.

Generally, stakeholders recognize the need for good, precise, complete and accurate information; however, there are some reservations as to the cost of the additional burden that Government would impose on them. Transport Canada recognizes these legitimate concerns. To alleviate them, it proposes to use Web services and other Web-oriented technologies that would minimize the administrative costs associated with compliance with the amendments. It should also be noted that the implementation of these surveys would likely be staggered over a period of time despite the fact that the amendments come into force immediately, so that the impact on stakeholders would be more gradual than assumed in the cost-benefit analysis.

The consultations also identified a concern amongst stakeholders on data confidentiality as the information requested is very sensitive in nature and not designed for public consumption. They were assured that Transport Canada’s responsibilities for data confidentiality, as articulated in section 51 of the Canada Transportation Act, would ensure the privacy of their data. Stakeholders were satisfied with this level of protection. According to section 51 of the Act, data collected by these surveys cannot be shared with other federal departments unless they possess the legislative or regulatory authority to collect the same data and cannot be shared with any outside stakeholders unless aggregated in such a way that an individual company’s data could not be identified. Transport Canada takes this responsibility very seriously and has put in place a suite of measures to ensure that company-specific information would not become public knowledge. At the moment, only Statistics Canada and the Canadian Transportation Agency could have access to individual company data and would be subject to the same confidentiality provisions as Transport Canada.

With respect to the surveys themselves, the data elements are clearly set out in the amendments, contrary to the previous version of the Regulations, and stakeholders were given a preview of the exact wording of the regulatory text and data elements required. In many cases, stakeholders suggested changes be made as the terms used were legally correct but were not the exact terms used by industry. In some cases, they also asked that terms be clarified as the meaning was too broad.

In light of the fact that the amendments require that data collected directly by Transport Canada be done in an electronic fashion, rather than presenting stakeholders with a paper survey, which would not exist anyway, they were presented with data record layouts naming the different fields to be collected. These record layouts can then be adapted to the most appropriate technology or technologies to actually collect the information. Stakeholders also expressed concern with the definition of some terms, which may vary from carrier to carrier. Transport Canada committed to stakeholders that any new survey would be accompanied by a lexicon that clearly defined each data element being requested.

Consultations with these various stakeholders has helped refine the information that is required by the amendmentsand minimize the burden on stakeholders.

Prepublication in the Canada Gazette, Part I

The proposed amendments were published in the Canada Gazette, Part I, on February 19, 2011, and stakeholders were given 30 days to comment. Twenty comments were received from 22 stakeholders, with the vast majority received after the closing dates for comments. As a show of goodwill and a collaborative mindset, Transport Canada accepted to consider comments that were received after the 30-day period.

Transport Canada took very seriously each of the comments received and responded back to them in writing. Additional consultations were also held with NAV CANADA, railway stakeholders and regional airport stakeholders and they were also provided with an advance copy of the amendments that affect them directly.

The following table breaks down comments received and remedial actions.

Number of Stakeholders

Stakeholder Class

Comments

Remedial Action

10

Airports

Concerned about reporting requirements for airports with partial NAV Canada service.

Wording changed to make it clear that those airports are exempted.

Concerned about financial reporting when no distinct accounting is kept.

Wording changed to permit airports to declare that no balance sheet or financial statement is produced.

Concerned about having to staff airports solely for the purpose of reporting movements.

Wording changed to allow airports to be exempt from reporting during unstaffed hours.

3

General aviation

Concerned about data confidentiality.

Explained the confidentiality protections which exist in the Canada Transportation Act.

Concerned about data collection burden.

Explained how data collection is done through the Electronic Collection of Air Transportation Statistics program, which was set up with industry to be a low-cost, innovative and efficient data collection tool.

2

Marine carriers

Concerned about some choices of words and how they could be interpreted.

Wording changed to reflect comments.

4

Railways

Concerned about having to report the United Nations code for Dangerous Goods.

Wording adjusted to allow reporting Hazardous Material Commodity Code instead, something commonly available in industry.

Concerned about intermodal movements and how they would report it.

Wording changed to the satisfaction of industry.

Concerned about a requirement to report locomotive hours per year.

Requirement dropped.

Concerned about having to report passenger fare on a segment basis.

Wording changed to require reporting on an itinerary, to the satisfaction of industry.

Concerned about double reporting of warning signals along their tracks.

Transport Canada indicated that such data would only be reported once.

1

NAV Canada

Concerned about their ability to report exact entry and exit in Canadian airspace.

Wording changed to a form that NAV Canada can now comply with.

1

Government of Quebec

Expressed several concerns on the choice of words for the French version of the proposed Regulations.

Wording was changed to accommodate.

Expressed concern about imposing electronic data collection.

This is required to make data collection low cost and efficient, in keeping with the objectives of the Red Tape Reduction Commission. Furthermore, industry demands more electronic data collection, not less, and did not indicate any concerns with that provision.

1

Trucking

Supportive of the proposed amendments but wanted to make sure that they would be enacted in a way that does not create undue burden.

A letter was sent addressing various issues raised and ensuring that Transport Canada would enact these amendments in a way that minimizes burden on industry.

In addition, a further limited consultation took place with the following stakeholders:

Mode

Comments

Remedial Action

Trucking

The Canadian Trucking Alliance (CTA) is supportive of the proposed amendments but wanted to make sure that they would be enacted in a way that does not create undue burden.

A letter was sent addressing various issues raised and ensuring that Transport Canada would enact these amendments in a way that minimizes burden on industry.

The CTA is satisfied with Transport Canada’s response and no further discussions were required.

Marine

No comments were formulated.

No remedial actions were taken.

Airlines

The Air Transport Association of Canada (ATAC) was given a further opportunity to comment.

No comments were formulated.

No remedial actions were taken.

One airline indicated concerns regarding reporting fuel consumption baggage weights.

The concerns were addressed in a manner satisfactory to the airline.

Implementation, enforcement and service standards

Implementation will be spread out over a number of years to minimize the impact on the industry and the Crown. The amendments will come into effect on the date on which they are registered.

Whether the data is collected by Statistics Canada or Transport Canada, all requirements for information would be presented to stakeholders in a clear and concise fashion. In addition, industry will be consulted to help develop the survey guides and information reporting tools which will accurately reflect the survey record layouts in these amendments to ensure that stakeholders have the capacity to properly fill out the survey and understand clearly what information the survey seeks to obtain. Enforcement of the amendments could be done through a new administrative monetary penalties (AMPs) set of regulations, which would be developed after these amendments are implemented. While always used as a last resort and after ample warning, these AMPs should provide an effective tool to ensure compliance with the Regulations. The AMPs regulations would allow for penalties of up to $25,000 for corporations and up to $5,000 for individuals found committing a violation. Violations include not reporting information, reporting information later than the prescribed date and not using the specified form and manner of reporting.

Performance measurement and evaluation

Surveys which would be created and administered under the amendments would be treated as any on-going survey and subject to regular reviews to ensure that the information collected is still of use to the Department.

While there are no formal survey performance indicators planned or currently in place, survey performance is monitored on an ongoing basis to ensure that all stakeholders who are captured by these surveys actually submit their information and also to ensure that the information being submitted is accurate and complete.

Contact

The contact person for any inquiries is

Alain Lumbroso
Manager
Senior Economist
Economic Analysis — Policy Group
Transport Canada
Telephone: 514-633-3431
Email: alain.lumbroso@tc.gc.ca