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Vol. 133, No. 49 — December 4, 1999
Regulations Amending the Food and Drug Regulations (997 — Canadian Whisky)
Statutory Authority
Food and Drugs Act
Sponsoring Department
Department of Health
REGULATORY IMPACT ANALYSIS STATEMENT
Description
Compositional standards established for foods and beverages sold in Canada provide assurance to Canadian consumers that these products have been produced to a minimum standard set and enforced by the Canadian government. Division 2 of the Food and Drug Regulations includes compositional standards for a number of distilled alcoholic beverages but does not specify a minimum alcohol content for most of these products. Nevertheless, the standards for Scotch Whisky, Bourbon Whisky, Tennessee Whisky and Tequila reference the standards of identity for these products in the country of origin. As a result of this referencing mechanism, a minimum alcohol content of 40 percent alcohol by volume is required for Scotch, Bourbon, Tennessee Whisky and Tequila.
In addition, Division 2 of the Regulations currently provides a standard which describes the method of production and aging requirements necessary to manufacture Canadian Whisky. This standard includes a requirement that Canadian Whisky be aged for only three years in Canada to obtain the appellation. Additional aging may be undertaken outside of Canada.
As a result of a submission received, Health Canada is considering an amendment to section B.02.020 of the Food and Drug Regulations to modify the compositional standard for Canadian Whisky, Canadian Rye Whisky or Rye Whisky. The proposed amendment would add to the current standard requirements a minimum alcohol content of 40 percent by volume and that all aging of this product be conducted in Canada.
Alternatives
The alternative to the proposed amendment would be to maintain the status quo. However, this approach was not considered appropriate. With respect to alcohol content, these products are currently marketed with an alcohol content of 40 percent. The proposed regulatory amendment will, therefore, not result in a change in products available to the public. In addition, this proposed amendment would not alter the composition, flavour or aroma of Canadian Whisky as it is presently sold in the marketplace. Rather, these additional proposed requirements will ensure and protect the compositional integrity of Canadian Whisky on the world market, in the same manner as are Scotch Whisky, Bourbon Whisky, Tennessee Whisky and Tequila.
Benefits and Costs
The adoption of this proposal would provide manufacturers of Canadian Whisky with a reinforced appellation and standard requirements that would be similar to the current standards for Scotch Whisky, Bourbon Whisky, Tennessee Whisky, and Tequila of our trading partners.
This proposed amendment should not result in increased cost to most manufacturers. However, increased cost and a reduction in production flexibility may be incurred for manufacturers who currently age their product for three years only in Canada, as required by the current standard, then move the venue of any remaining aging period outside of Canada.
There is no anticipated increase in cost to the government related to the enforcement of this proposed amendment.
Consultation
This proposed amendment is the result of a request made by the Canadian industry. Additional consultations have been undertaken with provincial liquor control boards, other government departments, selected trading partners and Canada's Drug Strategy Secretariat. There was general support for the proposed amendment.
In addition, a directed consultation was conducted with provincial health authorities and alcohol interest groups, in advance of the normal consultation scheme of the Canada Gazette, Part I. All responses received expressed support for the proposed amendment since the proposal would not result in adverse health consequences for the public. This support stems from the fact that the proposed amendment does not change the alcohol content of Canadian Whisky already available in the marketplace.
Compliance and Enforcement
If this proposed amendment is adopted, compliance will be monitored by ongoing domestic and import inspection programs.
Contact
Ronald Burke, Director, Bureau of Food Regulatory, International and Interagency Affairs, Health Canada, Address Locator 0702C, Ottawa, Ontario K1A 0L2, (613) 957-1828 (Telephone), (613) 941-3537 (Facsimile), sche-ann@hc-sc.gc.ca (Electronic mail).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council proposes, pursuant to subsection 30(1) of the Food and Drugs Act, to make the annexed Regulations Amending the Food and Drug Regulations (997 — Canadian Whisky).
Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice and be addressed to Mr. Ronald Burke, Director, Bureau of Food Regulatory, International & Interagency Affairs, Department of Health, Health Protection Building, Room 200, Tunney's Pasture, Address Locator 0702C, Ottawa, Ontario, K1A 0L2 (Tel.: (613) 957-1828; fax: (613) 941-3537; E-mail: sche-ann@hc-sc.gc.ca).
The representations should stipulate those parts of the representations that should not be disclosed pursuant to the Access to Information Act and, in particular, pursuant to sections 19 and 20 of that Act, the reason why those parts should not be disclosed and the period during which they should remain undisclosed. The representations should also stipulate those parts of the representations for which there is consent to disclosure pursuant to the Access to Information Act.
Ottawa, November 25, 1999
MARC O'SULLIVAN
Assistant Clerk of the Privy Council
REGULATIONS AMENDING THE FOOD AND DRUG REGULATIONS (997 — CANADIAN WHISKY)
AMENDMENTS
1. (1) Subparagraph B.02.020(1)(a)(ii)(see footnote 1) of the Food and Drug Regulations(see footnote 2) is replaced by the following:
(2) Paragraph B.02.020(1)(a) of the Regulations is amended by striking out the word "and" at the end of subparagraphs (iii) and (iv) and by adding the following after subparagraph (iv):
(vi) contain not less than 40 per cent alcohol by volume; and
COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.
[49-1-o]
Regulations Amending the Laurentian Pilotage Tariff Regulations, 1996
Statutory Authority
Pilotage Act
Sponsoring Agency
Laurentian Pilotage Authority
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The Laurentian Pilotage Authority (the Authority) is responsible for administering, in the interests of safety, an efficient pilotage service within Canadian waters in and around the province of Quebec, north of the northern entrance to St. Lambert Lock, except the waters of Chaleur Bay, south of Cap d'Espoir in latitude 48 degrees 25 minutes 08 seconds N, longitude 64 degrees 19 minutes 06 seconds W. The Authority also prescribes tariffs of pilotage charges that are fair and reasonable and consistent with providing revenues sufficient to permit the Authority to operate on a self-sustaining financial basis.
A recently published amendment to the Laurentian Pilotage Tariff Regulations, 1996, registered as SOR/99-418, which was initiated to implement a 3 percent tariff increase effective January 1, 2000, inadvertently utilized incorrect figures in the calculation of the new tariff increase. Due to this oversight, the current pilotage charges described in Schedule 2 do not reflect the 3 percent tariff increase accepted by the major stakeholders, and the pilotage charges consequently remain at the 1999 established level.
These amending Regulations will resolve the issue and implement the agreed 3 percent tariff increase for the pilotage charges described in Schedule 2 of the Laurentian Pilotage Tariff Regulations, 1996 and will ensure that the Authority is, in the interests of safety, able to maintain and administer an efficient pilotage service, commensurate with its financial responsibilities.
Alternatives
The Authority is required to provide an efficient pilotage service while ensuring navigational safety and protection of the marine environment. Costs have been reduced where feasible and kept to the minimum consistent with maintaining a safe and effective service. Further reductions in operating costs are not an alternative since this would reduce the quality of service provided by the Authority. This would be unacceptable to both the Authority and its clients. Maintaining pilotage charges at the current 1999 level is not an alternative since the Authority and major stakeholders had already agreed to the 3 percent tariff increase which was due to come into effect on January 1, 2000. Failure to implement this tariff increase for the year 2000 would be inconsistent with the Authority's corporate plan objectives and would negatively impact upon the Authority's means of maintaining its financial self-sufficiency. This re-adjustment of the tariff charges takes into account loan repayments, the anticipated costs associated with pilotage contract negotiations and the projected rate of inflation.
Benefits and Costs
The proposed tariff increase will generate additional revenue estimated to be in the order of $1,089,000 for the year 2000. This represents an increase in the pilotage charges of approximately $150 per trip for a ship transiting the St. Lawrence River between the pilot boarding stations at Les Escoumins and Montréal.
This tariff increase is necessary to meet anticipated costs over the year. This initiative will ensure the continued efficiency of the pilotage service and the Authority's capability to operate on a self-sustaining financial basis that is both fair and reasonable.
Consultation
The Authority has discussed this tariff increase for its pilotage charges with representatives from the Shipping Federation of Canada, the Canadian Shipowners Association and the St. Lawrence Shipoperators Association Inc. These key stakeholders, who represent most of the users in these waters, have frequently expressed their concerns about increases and additional costs associated with the various marine services fees. They have indicated, however, that they will accept, albeit reluctantly, this single 3 percent tariff increase which will come into effect on the date of registration of these amending Regulations.
Compliance and Enforcement
Section 45 of the Pilotage Act provides the enforcement mechanism for these Regulations in that a Pilotage Authority can inform a customs officer at any port in Canada to withhold clearance from any ship for which pilotage charges are outstanding and unpaid.
Contact
Mr. Jean-Claude Michaud, Chairman, Laurentian Pilotage Authority, 715 Square Victoria, Montréal, Quebec H2Y 2H7, (514) 283-6320 (Telephone), (514) 496-2409 (Facsimile).
PROPOSED REGULATORY TEXT
Notice is hereby given, pursuant to subsection 34(1) (see footnote a) of the Pilotage Act, that the Laurentian Pilotage Authority proposes, pursuant to subsection 33(1) of that Act, to make the annexed Regulations Amending the Laurentian Pilotage Tariff Regulations, 1996.
Interested persons who have reason to believe that any charge in the proposed Regulations is prejudicial to the public interest, including, without limiting the generality thereof, the public interest that is consistent with the national transportation policy set out in section 5 of the Canada Transportation Act (see footnote b), may file a notice of objection setting out the grounds therefor with the Canadian Transportation Agency within 30 days after the date of publication of this notice. The notice of objection should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Canadian Transportation Agency, Ottawa, Ontario K1A 0N9.
JEAN-CLAUDE MICHAUD
Chairman
Laurentian Pilotage Authority
REGULATIONS AMENDING THE LAURENTIAN PILOTAGE TARIFF REGULATIONS, 1996
AMENDMENTS
1. Sections 1(see footnote 3) and 2(see footnote 4) of Schedule 2 to the Laurentian Pilotage Tariff Regulations, 1996(see footnote 5) are replaced by the following:
1. (1) The pilotage charge for a movage of a ship is $304.16, plus $10.01 per unit.
(2) If a ship anchors during a movage, a pilotage charge of $235.18, plus $2.52 per unit, is payable in addition to any other applicable charges.
Charges for Trips
2. (1) The pilotage charge for a one-way trip is
(a) in District No. 1, $26.55 per unit, plus $13.14 per time factor; and
(b) in District No. 2, $16.86 per unit, plus $9.75 per time factor.
(2) If a ship anchors during a trip, a pilotage charge of $235.18, plus $2.52 per unit, is payable in addition to any other applicable charges.
2. Subsection 4(1) (see footnote 6) of Schedule 2 to the Regulations is replaced by the following:
4. (1) If the owner, master or agent of a ship makes a request to the Authority for the replacement of a pilot with a pilot who holds qualifications that are superior to those required for the ordinary conduct of the ship for the docking or undocking of the ship, the pilotage charge is $304.16, plus $6.88 per unit, in addition to any other applicable charges.
3. Sections 6(see footnote 7) and 7(see footnote 8) of Schedule 2 to the Regulations are replaced by the following:
6. (1) If, after being under way, a ship is at anchor, compelled to remain stopped, unable to move on account of ice or aground within a district, a pilotage charge of $70.14 is payable, subject to subsection (2), for each hour or part of an hour that a pilot licensed for the district is detained on board the ship and continues to perform pilotage duties while it is anchored, compelled to remain stopped, unable to move or aground.
(2) The maximum charge payable under subsection (1) for any 24-hour period is $701.40.
Charges for Detention on Board Ship
7. If a pilot is detained on board a ship that is at a wharf or pier or waiting for a berth within the limits of a harbour and is thereafter moved within the limits of the harbour, pilotage charges, not exceeding a maximum charge of $701.40 per 24-hour period, are payable as follows:
(a) for 30 minutes or more of detention but not more than one hour $70.14
(b) for each additional hour of detention or part of an hour $70.14
4. Subsection 8(1) (see footnote 9) of Schedule 2 to the Regulations is replaced by the following:
8. (1) If, after the services of a pilot have been requested at Les Escoumins, the pilot reports for pilotage duty at the pilot boarding station and is detained for more than one half-hour, pilotage charges, not exceeding a maximum charge of $701.40 per 24-hour period, are payable as follows:
(a) for the first hour of detention or part of an hour $70.14
(b) for each additional hour of detention or part of an hour $70.14
5. Subsections 9(1) to (3) (see footnote 10) of Schedule 2 to the Regulations are replaced by the following:
9. (1) Subject to subsections (3) and (4), if a request for pilotage services is cancelled after a pilot reports for pilotage duty, a pilotage charge of $269.78 is payable.
(2) Subject to subsections (3) and (4), in addition to the pilotage charge specified in subsection (1), if a request for pilotage services is cancelled more than one hour after the pilot is ordered to report for pilotage duty, a pilotage charge of $70.14 is payable for each hour, or part of an hour, from the time for which the pilotage services were requested or from the time the pilot actually reported for pilotage duty, whichever is later, until the request is cancelled.
(3) The maximum pilotage charge payable under subsections (1) and (2) is $701.40 per 24-hour period.
6. Section 10 (see footnote 11) of Schedule 2 to the Regulations is replaced by the following:
10. If a pilot is carried on a ship beyond the district for which the pilot is licensed, a pilotage charge of $701.40 is payable for each 24-hour period, or part of a period, during which the pilot is carried.
COMING INTO FORCE
7. These Regulations come into force on the day on which they are registered.
[49-1-o]
SOR/93-145
C.R.C., c. 870
S.C. 1998, c. 10, s. 150
S.C. 1996, c. 10
SOR/99-418
SOR/99-418
SOR/95-523
SOR/99-418
SOR/99-418
SOR/99-418
SOR/99-418
SOR/99-418
SOR/99-418
NOTICE:
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