Decision No. 259-W-1998

June 1, 1998

Référence n^o W9125/I22/98-1

APPLICATION

Invest-Hyp Inc. has applied to the Minister of National Revenue for a licence to use a foreign unnamed catamaran to provide introduction to sailing excursions and twelve-day sail training cruises on a large catamaran, departing from Montréal and sailing on the St. Lawrence River to Tadoussac, and on the Saguenay River to La Baie, Quebec, during the period commencing on June 1, 1998 and ending on September 20, 1998. The matter was referred to the Canadian Transportation Agency (hereinafter the Agency) on March 17, 1998.

The Agency conducted a search of the relevant portion of the marine industry, and, on April 7, 1998, an offer was received from Nordest Marine Inc. proposing the use of its Canadian catamaran, the "Cata Fjord". An objection was also filed with the Agency on April 7, 1998 by École Croisière Mercator (hereinafter Mercator).

ISSUE

The issue to be addressed is whether or not the "Cata Fjord" is suitable and available to provide the service or perform the activities described in the application and/or whether or not an identical or similar adequate marine service is available from any operator of Canadian ships.

OFFER/OBJECTION

The "Cata Fjord" offered by Nordest Marine Inc. is a 64-feet long and 31-feet wide, two masted, Canadian catamaran equipped with two 50 HP diesel engines. It was recently built and offers modern comfort for twelve persons and has five double berth cabins. A leaflet from Centre marin des Blanchons shows that it was used to perform similar activities in the past.

Mercator objects to any importation of foreign vessels because a number of Canadian sailing vessels is already cruising the St. Lawrence River and Gulf, and that there is excess capacity and vessels not being used. Also, in this specific case, Mercator states that there is a similar Canadian vessel offering the same services.

APPLICANT'S REPLY

Invest-Hyp Inc. replied individually to both intervenors stating that a foreign vessel was needed to commercialize the Canadian tourism and nautical industries' potential, since the only Canadian vessel is currently subject to commercial negotiations for a commercial agreement with Centre marin des Blanchons, and that the flotilla operating on the river is mainly 28 to 40-foot keelboats that are not suitable for the proposed activities.

ANALYSIS AND FINDINGS

Where the activity described in an 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 "Cata Fjord" meets all of the requirements set out in the application, except that it has two masts instead of one. Nordwest Marine Inc. has confirmed the availability of its vessel in its reply to the notice of the application, and until proof to the contrary, it can be assumed that it will be available. Moreover, commercial negotiations are left to the parties.

CONCLUSION

In light of the foregoing, the Agency, pursuant to subsection 8(1) of the Coasting Trade Act, hereby determines that there is a suitable Canadian vessel available to provide the service or perform the activity described in the application.

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