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Canada's Marine Services Fee: Halifax Chamber of Commerce says no

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Nigel Allen

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Jan 19, 1996, 3:00:00 AM1/19/96
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Here is a press release from the Metropolitan Halifax
Chamber of Commerce.
I found the press release on the Canada NewsWire web site
at http://www.newswire.ca/
I do not work for the Chamber of Commerce or Canada NewsWire.

CHAMBER SAYS MARINE SERVICES FEE PROPOSAL OF COAST GUARD COMPLETELY
UNACCEPTABLE AND COMPLETELY UNFAIR

DARTMOUTH, Jan. 17 /CNW/ - Metro's Voice of business -- the
Metropolitan Halifax Chamber of Commerce -- is very disturbed that
the Port of Halifax, which is among major Canadian Ports and is the
smallest user of navigational aids, is to be targeted for the most
severe impact by this proposed fee structure.
In November, 1995, the Metropolitan Halifax Chamber of Commerce
forwarded a submission to Brian Tobin, then Minister responsible for
the Coast Guard, opposing cost recovery that imposes general taxation
in favour of cost recovery based on user-pay/user-say principles and
supporting the proposed option of the service specific charging
option based on per tonne-mile of cargo handled.
The Metropolitan Halifax Chamber of Commerce is supportive of
federal government policy of financial self-sufficiency for all major
transportation infrastructure in Canada, including cost recovery for
a portion of the CCG services provided to commercial shipping. The
Chamber believes that real opportunities do exist for fair and
equitable cost recovery of CCG services to ameliorate Canada's fiscal
situation. The Chamber, however, opposes cost recovery through
general taxation, such as an ad valorem or vessel GRT based Marine
Services Fee.
The Chamber noted in its submission, as well, that the
government wants to create a ``climate for competitive business''. In
order to achieve this goal, the Chamber feels there must be a fair
and equitable imposition of user charges with mechanisms in place to
allow user input. The Port of Halifax is a naturally deep, ice-free
harbour located only 21 nautical miles off the Great Circle route.
This geographic location must translate into cost savings for the
commercial users if Halifax is to be able to compete as an
international gateway. It is unacceptable that commercial users of
the Port of Halifax could be assessed the same rate of Marine
Services Fee as commercial users that call at inland ports requiring
substantially more CCG services.
The focus on the GRT proposal targets Halifax for the most
inequitable treatment. An assessment based on GRT would be greater on
vessels of 4000 TEU's which call at the Port of Halifax than on a
vessel of 1800 TEU's that call on Montreal. In addition the charge
would be allocated in Montreal across all containers unloaded while
in Halifax the cost would have to be borne by as few as 200 because
the majority of containers move on to New York and are not unloaded
in Halifax. This could kill the Port of Halifax because our Port
would lose its top-off advantage.
Therefore, the Metro Halifax Chamber is vehemently opposed to
any cost recovery initiatives which take the form of a general charge
and which do not include a distance charge component reflective of
the service. The imposition of a Marine Services Fee assessed as a
national levy, with no correlation to the cost or use of the service,
is not in keeping with the federal government's fiscal policy of
reducing costs, eliminating subsidies, and assigning costs and
responsibility for day to day operations to the users. A national
levy is not a user charge; it is a tax and is unacceptable for the
Port of Halifax.
The Chamber is strongly urging the Province of Nova Scotia and
local Metro area MP's to champion the future of the Port of Halifax
by addressing these concerns to the Acting Federal Minister of
Fisheries for immediate consideration.
The November, 1995, submission to Brian Tobin was copied to
Metro area MP's, Doug Young, Minister of Transport and the Premier of
Nova Scotia. Chamber's submission is available by calling the Chamber
office at (902) 468-7111.

For further information: Dr. Mary Brooks, Chair,
Transportation Committee, (902) 494-1825 or Vince Marsh, President,
(902) 454-3367

17:44e 17-JAN-96
--
Nigel Allen nda...@io.org http://www.io.org/~ndallen/

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