Canada Marine Act
Addressing the need for greater financing flexibility for ports

Background:

During the independent and extensive CMA Review process, completed in June 2003, it was heartening to hear from over 140 interveners that Canada’s major ports were crucial to the national economy.  It was obvious from the Panel’s report that, while commercialization was welcomed, there are a number of sections of the CMA which require substantive changes.  There was widespread recognition that CPAs were fiercely competing in an aggressive, global business environment and that, if they are to compete on a “level playing field,” key amendments to the CMA are required. 

Proposals:

1. Payments to municipalities in Lieu of Taxes ought to be paid by the Port owner (Government), not the Port managers (CPAs);

2. CPAs ought to have direct access to federal funding on the same basis as the private sector and/or other eligible organizations;

3. The ability of CPAs to borrow funds ought to be based on commercial banking tests, not set by way of bureaucratic regulation;

4. The gross revenue charge, payable by CPAs to the Federal Government, ought to be eliminated and these monies directed to port infrastructure; and

5. CPAs ought to be allowed to retain the proceeds from the sale of surplus port property; with such proceeds being directed to port infrastructure.

Conclusion:

The key theme of the independent CMA Review Panel was that the competitiveness of Canada’s ports ought to be improved in light of new business imperatives in competing international jurisdictions.  The above suggested amendments are consistent with this philosophy, as well as with the federal government’s National Marine Policy, codified as Section 4 of the CMA.  Indeed, Section 4 is one of the sections which Bill C-61 proposes to amend:  to add, as another objective of the CMA, that it is to “promote the success of ports for the purpose of contributing to the competitiveness, growth and prosperity of the Canadian economy.”

Therefore, the addition of the above five proposed amendments to the Canada Marine Act would truly fulfill the objectives of the National Marine Policy and sustain Canada’s ports well into the future.