OTTAWA – Transport minister Doug Young last week promised that as quickly as it can, the government wants to walk away from running the St. Lawrence Seaway.
That will mean “commercialization” of the waterway vital to eastern grain shipments, more say in its operations for users and increased charges for services.
“As we move out of a subsidy area everywhere else, we also are going to make sure the seaway is in cost recovery,” Young told a news conference during which he announced a new national marine policy.
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It will include turning all Canada’s ports over to local authorities. The ports must be self-sustaining.
Young said a coalition of seaway users is negotiating with the government to take over operations and he expects to know by summer whether that will be possible.
“Hopefully, we will come to an agreement with the user group and they will be able to take it over,” said Young. “However, that has not been concluded and I want to say that nothing is in the bag.”
Whatever happens, he said he wants to decide the new operating arrangement “pretty quickly” and then arrange the transfer from government to some other group over the next several years.
Users approve idea
The announcement drew favorable reviews from many who will be affected.
“The direction is right,” said Terry Harasym, director of policy and economic research for Saskat-chewan Wheat Pool.
“Anything we can do to ensure the seaway is viable long-term but does not do it on the backs of the users is good. The key is whether we can do this without increasing tolls or other costs.”
Jim Campbell, general manager of the Camber of Maritime Commerce, representing seaway users, echoed that view.
“Any movement toward focussing on the bottom line and giving the users some say in the services they receive and want to pay for is a good move,” he said. “I would say we are very pleased.”
But it was noted that some uncertainty remains about future costs for seaway users. The government, within the next few years, will decide how much to charge users in direct fees for icebreaking and Coast Guard services. It could be as much as $60 million.
“That would take care of any savings we can wring out of the seaway,” said Campbell.
