News release

Province Calls for Clear Vision in National Transportation System

Premier's Office

PREMIER'S OFFICE--Province Calls for Clear Vision in National Transportation System

It's time for federal action to ensure that Canada has a strong and clear vision for a national transportation system, Premier John Hamm said today.

Speaking before a federal panel on transportation, the premier said growth in Canada's social and economic union depends on a strong transportation system, and he called on the federal government to continue building the national dream.

"Over 40 per cent of what we produce in Nova Scotia is sold to customers living in other places," the premier told the Canada Transportation Act review panel. "Our transportation network is the backbone of the urban and rural economy, and it ensures that we can access markets inside and outside Canada.

"In recent years, the federal government has abandoned the role of transportation as one of the instruments of nation building. By taking comprehensive policy action, Ottawa can help bring the nation together again," he said.

The review panel met Monday in Halifax. By law, a review of the Canada Transportation Act must take place every five years.

The premier also renewed the province's demand for Ottawa to provide stable and long-term funding for a national highways program. In his submission, the premier said the United States allocated $218 billion US to transportation over six years, while Ottawa will allocate $600 million, with no expenditures until 2002-03.

He also said the federal government collects an estimated $4 billion annually in road fuel taxes, meaning Ottawa will be reinvesting less than four cents out of every dollar it collects from road users.

"Manufacturers and producers in the United States reap the benefit of an improved roadway network, and their productivity gains will allow them to obtain goods and access markets more quickly, cheaply and efficiently than Canadian competitors," said the premier, noting that Canada is the only G7 country without a national highways program. "Canada and Nova Scotia will fall further behind our major trading partners without a national highways program."

The premier stressed Nova Scotia's need for the federal government to establish a permanent funding base to replace the stop-and-go five-year cycles that now occur and cause major disruptions in the province's building programs.

"As a province, we have long since identified our priorities-
with Highway 101 at the top of list," added the premier. "All we need is a real, meaningful commitment from Ottawa."

The premier also expressed concern about the financial viability of smaller airports in Sydney and Yarmouth. He said a portion of the money the federal government receives from leases on major airports should be directed to smaller airports for ongoing operating and maintenance expenditures.

The premier reiterated his longstanding call for ensuring the competitiveness of Canadian ports in comparison with operations on the eastern seaboard of the United States, through such measures as:

  • allowing major Canadian ports to issue tax-exempt bonds to raise capital for infrastructure investment;
  • eliminating federal dividend payments provided they are redirected towards capital investments; and
  • fairly distributing fees and charges for navigational aids and ice-breaking services.

"The federal government must accept a major and direct role- financial as well as policy- in reinforcing the vital contribution that transportation makes to Canada's social and economic well-being," said Premier Hamm. "I urge the review panel to embrace this vision as the basis for defining the role of the federal government."

NOTE TO EDITORS: A copy of Premier John Hamm's presentation to the Canada Transportation Act review panel is available; e-mail [email protected] . A backgrounder on the recommendations presented by the premier is available below.

BACKGROUNDER

CTA REVIEW RECOMMENDATIONS
PROPOSED BY THE PROVINCE OF NOVA SCOTIA

Role of Federal Government

  • The federal government accept a major direct role, financial as well as policy formulation, in reinforcing the vital contribution that transportation can make to our future social and economic well-being.

Highway Funding

  • The federal government commit to immediately funding a long- term National Highway Program and invest at a level that will address the significant deficiencies.

Commercial Vehicle Safety

  • Transport Canada reintroduce its proposed amendments to the Motor Vehicle Transport Act, 1987, and continue to provide leadership, with funding and other resources, in assisting provincial jurisdictions to achieve a consistent safety rating regime.

Rail

  • Shippers located on provincial railways have access to Final Offer Arbitration provisions in the CTA.

  • The Competitive Line Rate provision be reviewed with the intent to increase the competitive aspects for shippers and to provide an efficient and timely process.

  • Shippers located on newly developed provincial railways have access to the Competitive Line Rates provision in the CTA.

  • No changes be made at this time to the running rights and joint track usage provisions of the Canada Transportation Act.

  • The CTA be amended to provide a public interest remedy to address situations where carrier rates or levels of service, or other acts or omissions may prejudicially affect shippers, industries and communities.

  • The Canadian Transportation Agency issue policy statements, guidelines or interpretations that would provide a better understanding of the meaning of the terms "substantial commercial harm" and "commercially fair and reasonable."

  • The CTA be amended to give the Canadian Transportation Agency the authority to issue interim ex-parte orders.

  • The CTA be amended to give authority to the Canadian Transportation Agency to act upon situations inconsistent with the National Transportation Policy in Section 5 of the CTA.

  • The Review Panel give consideration to recommending reinstituting the effort to establish a national rail network.

  • Needed investment be placed by Via Rail in all regions in Canada, including the Atlantic region.

  • Railroads be required to give 180 days notice of rail track removal in multiple track situations, and railroads and interested municipal governments be given a further 90 days to reach arrangements for the preservation of the rail track.

Air

  • The federal government provide a modest level of on-going operating assistance to regional/local airports across the country.

  • The CTA Review Panel carefully consider the increasing regulatory burden airports are facing and urge a cautious and carefully considered approach by the federal authorities.

  • The Review Panel examine airline restructuring very carefully with a view toward bringing forward recommendations to facilitate a competitive environment and a reasonable opportunity for all interested carriers, including small domestic and foreign airlines, to develop business.

  • The CTA Review Panel strongly urge the Government of Canada to pursue open-skies agreements, similar to the 1995 Canada-U.S. agreement, with all interested countries and that our federal government give greater weight to the economic development potential for Canadian communities when considering overall benefits to this country.

  • The CTA Review Panel note the importance of preclearance to Halifax International Airport, and urge the federal government to pursue the establishment of preclearance at Halifax on a high- priority basis.

Marine

  • Major Canadian ports have the capability, as in the United States, to issue tax-exempt revenue bonds.

  • The elimination of dividend payments to the federal government by port authorities, provided such payments are used for infrastructure investment.

  • There be no legislative changes to the Shipping Conferences Exemption Act which would create a more hostile environment for the operation of liner shipping conferences serving Canadian ports in comparison with those serving American ports.

  • There should not be a sunset clause in the Shipping Conferences Exemption Act, but an automatic review after a legislated length of time.

  • The Review Panel make a finding that distortions between navigation fees and ice-breaking charges do not serve Canada's long-term interests, and that marine services fees be fair, equitable and reasonable.

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