OTTAWA – The House of Commons last week gave approval in principle to legislation to allow the private operation of the St. Lawrence Seaway and the country’s ports.
Transfer of the seaway to a coalition of users, including shippers and carriers, could happen as early as Jan. 1.
An agreement-in-principle has been signed with a coalition, which includes grain exporters and seaway elevator operators James Richardson and Sons Ltd., Cargill Ltd. and Louis Dreyfus Ltd.
The government describes the Canada Marine Act as the last best chance for a revitalization of some of the water transport system, using private money and control.
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“If we do not take steps now to put the seaway on a stronger footing, we will have a bigger problem on our hands in a few years,” said Stan Keyes, the Hamilton, Ont. Liberal MP who acts as parliamentary secretary to the transport minister.
Cost competitive
“The key to the future viability of the seaway lies in achieving efficiencies, reducing costs and making the system more competitive.”
Under the operating agreement, the federal government will continue to own the $7 billion seaway asset, but the crown corporation St. Lawrence Seaway Authority will be dissolved.
The legislation also calls for privatizing ports, turning them over to local authorities and forcing them to raise required funds through port fees or private borrowings based on revenues.
After six years, the fates of ports which have not been picked up by local interests will be decided by Ottawa.
Local views heard
Even as the Commons was debating the principles of the new Canada Marine Act, the Commons transport committee was holding hearings across the country to hear local views of the impending changes.
The legislation created divisions in most parties in the House of Commons.
It was approved easily, with most Liberals and Reformers supporting the concept of private control of public assets.
However, several Reform MPs joined Bloc QuŽbecois caucus members and the NDP in opposing the bill.
“This bill is just part of the continuing move of the ministry of transport to get out of the business and we disagree with that,” said Saskatchewan NDP MP Len Taylor in an interview. “We see the need for a continuing federal role.”
At least one Liberal – Prince Edward Island MP Wayne Easter – refused to vote for the bill.
He said later the new legislation could lead to the closing of P.E.I.’s small ports, which handle much of the island’s farm produce which is exported.
