Decision No. 255-W-1998

May 29, 1998

File No. W9125/M20/98-1

APPLICATION

Mec-Gli Inc. has applied to the Minister of National Revenue for a licence to use the "DEVIL" to carry up to twelve passengers around Île Sainte-Hélène, departing from "La Ronde", Montréal, Quebec, on excursions where the boat makes 360 degree turns, slalom and stops on a short distance, splashing its passengers. This service would be offered 7 days a week, from 10:00 a.m. until dusk, during the period commencing June 1, 1998 and ending September 30, 1998. The matter was referred to the Canadian Transportation Agency (hereinafter the Agency) on April 9, 1998.

The Agency conducted a search of the relevant portion of the marine industry and an objection to the granting of the application was received from Expéditions sur les Rapides de Lachine Ltée/Lachine Rapids Tours Ltd. (hereinafter Lachine Rapids).

ISSUE

The issue to be determined is whether or not the service proposed by Lachine Rapids is an available identical or similar adequate marine service, using one or more Canadian ships.

OBJECTION

In its letter dated April 20, 1998, Lachine Rapids states that it objects to the granting of a licence for the use of the "DEVIL" as it offers a service on the same route, using the same type of boat, departing from the Vieux Port de Montréal, less than 2 km from "La Ronde", served by the same ferry service (Tandem), and that the proposed service would cater to the same clientele, tourists and nearby residents. Further, its excursions have been offered for more than four years, have the same duration and it uses Canadian built and Canadian registered ships. A copy of the publicity shows that these excursions are offered every half-hour, from 10:00 a.m.to 7:00 p.m., from mid-May through September.

Mec-Gli Inc. did not comment on the objection.

ANALYSIS AND FINDINGS

Where the activity described in the application entails the carriage of passengers by ship, a coasting trade licence can be issued only when the Agency has determined that no Canadian ship or non-duty paid ship is suitable and available to provide the service or perform the activity described in the application, and/or that an identical or similar adequate marine service is not available from any operator of one or more Canadian ships.

The Agency notes that the services offered by Lachine Rapids, an operator of Canadian vessels, is similar, if not identical in most aspects to the proposed service. Lachine Rapids offers similar excursions of the same duration, using the same type of boats, on the same route, with a similar schedule The departure point is different, but the distance between both points is minimal, and, considering the type of service, it caters to the same clientele. In light of the foregoing, it appears that the service offered by Lachine Rapids is similar to the one proposed by Mec-Gli Inc. in its application.

Therefore, the Agency determines, pursuant to subsection 8(1) of the Coasting Trade Act, that a similar adequate marine service is available from a person operating one or more Canadian ships.

This determination will be provided to the Minister of National Revenue for any action deemed necessary, as provided for in the Coasting Trade Act.