News Release Archive
TRANSPORTATION/COMMUNICATIONS--PORT OF HALIFAX-MARINE FEES ------------------------------------------------------------ The federal government has an obligation to ensure that marine fees do not shut down the Port of Halifax and other east coast ports, the provincial government said today. Cost recovery principles established by Canadian Coast Guard Services could destroy the Port of Halifax, and stifle economic development based on Nova Scotia's prime coastal location, according to Transportation and Communications Minister Richie Mann. Mr. Mann and Economic Renewal Minister Robbie Harrison will meet with port stakeholders, including shippers and the business community, to devise a strategy to promote a federal policy that assures fair allocation of user fees for navigational aids provided by the Coast Guard. "This federal plan is a crippling blow to east coast ports. We had hoped and expected that user fees would be imposed equitably and fairly across the country, yet this policy appears almost calculated to deny Halifax and other eastern ports their advantages," Mr. Mann said. "If the federal government proceeds with this plan, increased advantage is offered to the ports of New York, Baltimore or Philadelphia, our competitive edge will be diminished, the benefits of our natural advantage reduced." "Halifax's natural advantages of a deep, ice-free harbour have made this port one of the largest employers in Nova Scotia, and a keystone of the regional economy. This unbalanced plan will effectively nullify those competitive advantages over inland Canadian and all U.S. ports, while the Canadian -- and Nova Scotian -- taxpayer will continue to pay the full cost of ice-breaking in Montreal," said Mr. Mann. "We've heard concerns from the major users of the port, such as Statia Terminals, who will find it almost impossible to compete from their present Nova Scotia location," Mr. Mann said. "The advantages of our coastal ports have been critical to our economic development and promotion efforts," Mr. Harrison said. "I can't believe that the federal government would consciously strike this blow to our major natural advantage in attracting and retaining business in this region. A fair cost recovery system will ensure jobs now and in the future." Mr. Mann reaffirmed his earlier statements to former federal Fisheries Minister Brian Tobin that supported fair and equitable user-pay arrangements, based on actual services used by shipping lines. In contrast, the Coast Guard plan would see shippers paying for navigational aids such as lighthouses, day beacons, radar beacons and vessel traffic services on a per-tonne rate for commercial vessels, while further "studies" are conducted on the issue of cost recovery for ice-breaking. "Halifax can handle the largest vessels in the world, so they'll pay more, possibly for less cargo, than the smaller vessels that can be handled by other ports. Vessel size does not dictate the level of navigational aid required, distance does. Ships calling at Halifax use navigational aids for 21 nautical miles; ships calling at Montreal use them for more than 600 nautical miles, yet the larger ships that call at Halifax will pay more than a ship using more navigational aids to call at Montreal. Meanwhile, shipping lines in Montreal will continue to enjoy the advantages of taxpayer supported ice-breaking," the minister said. Mr. Mann and Mr. Harrison are seeking an early meeting with the federal minister of fisheries, responsible for the Coast Guard, to argue for a more equitable allocation of costs. "We'll certainly be looking for some justification and documentation of the costs for navigational aids, and have already requested the economic impact studies done by the Coast Guard in determining their principles," Mr. Mann said. -30- Contact: Donna McCready 902-424-8687 trp Jan. 16, 1996 - 5:25 p.m.