Oceanex Inc. v. Canada (Transport)

Oceanex Inc. v. Canada (Transport)
Court (s) Database
Federal Court Decisions
Date
2018-03-07
Neutral citation
2018 FC 250
File numbers
T-348-16
Decision Content
Date: 20180307
Docket: T-348-16
Citation: 2018 FC 250
Ottawa, Ontario, March 7, 2018
PRESENT: The Honourable Madam Justice Strickland
BETWEEN:
OCEANEX INC.
Applicant
and
CANADA (MINISTER OF TRANSPORT) AND MARINE ATLANTIC INC.
Respondents
and
ATTORNEY GENERAL OF NEWFOUNDLAND AND LABRADOR
Intervener
JUDGMENT AND REASONS
Background 4
The Parties 4
Constitutional Route 7
Legislation 8
(i) Terms of Union 8
(ii) Constitution Act, 1982 9
(iii) Marine Atlantic Inc. Acquisition Authorization Act 10
(iv) Financial Administration Act 12
(v) Canada Transportation Act 22
(vi) Canada Marine Act 23
The Evidence 25
History of Setting the Rates 27
Tripartite Agreement 29
Bilateral Agreement and Subsidiary Operating Agreements 30
2007 Revitalization Strategy (Phase I) 32
2010 Revitalization Strategy (Phase II) 33
Issues and Standard of Review 36
Constitutional Question 38
Preliminary Observation – Oceanex’s application for judicial review 39
Issue 1: Who made the 2016/17 Freight Rate Decision, the Minister or MAI? If MAI made the decision, is it a federal board, commission or tribunal as defined by s 2(1) of the Federal Courts Act? 40
(a) Who made the 2016/17 Freight Rate Decision, the Minister or MAI? 40
Oceanex’s Submissions 40
MAI’s Submissions 44
Canada’s Submissions 46
Newfoundland’s Submissions 52
Analysis 52
(i) Absence of any statutory requirement that the Minister set freight rates 52
(ii) Corporate Plan 54
(iii) Control over MAI 63
(iv) Bilateral Agreement 72
(a) Effect of 1987 OIC on amendment of the Bilateral Agreement 78
(b) Was s 7(2) of the Bilateral Agreement amended by the parties such that the Minister was not required to approve MAI’s rates which do not exceed 5% 90
(b) Is MAI a federal board, commission or tribunal? 94
Oceanex’s Submissions 95
MAI’s Submissions 97
Analysis 99
(i) MAI’s power not conferred by statute 102
(ii) Crown prerogative 103
Issue 2: Does Oceanex have standing to bring the application? 117
Oceanex’s Submissions 117
MAI’s Submissions 121
Canada’s Submissions 122
Analysis 125
(i) Direct standing 125
(ii) Public standing 134
(a) Serious justiciable issue 136
(b) Real stake or genuine interest 138
(c) Reasonable and effective means of bringing the issue before the Court 140
Issue 3: Was s 5 of the CTA a relevant consideration when making the 2016/17 Freight Rate Decision? 145
Oceanex’s Submissions 145
MAI’s Submissions 147
Canada’s Submissions 148
Newfoundland’s Submissions 150
Analysis 152
Issue 4: If s 5 of the CTA is a relevant consideration, can it constrain the level of public cost Canada assumes to provide ferry services on the Constitutional Route, the provision of which services arises from the Terms of Union? 169
Oceanex’s Submissions 170
Canada’s Submission 173
MAI’s Submissions 174
Newfoundland’s Submissions 177
Analysis 181
Issue 5: Was the 2016/17 Freight Rate Decision reasonable? 195
Conclusion 196
Costs 198
[1]
This is an application for judicial review brought by Oceanex Inc. (“Oceanex”), pursuant to s 18.1 of the Federal Courts Act, RSC, 1985, c F-7 (“Federal Courts Act”), challenging a decision which approved the 2016/17 rates for the provision by Marine Atlantic Inc. (“MAI”) of commercial freight services by sea to and from Port aux Basques on the island of Newfoundland and North Sydney, Nova Scotia. As will be discussed below, the identity of the decision-maker is at issue and the challenge has given rise to a notice of a constitutional question.
[2] Oceanex asserts that the Minister of Transport (“Minister”) permitted MAI to charge freight rates that are heavily subsidized, compete unfairly with and are detrimental to Oceanex, and that the decision that effected the 2016/17 freight commercial rates (“2016/17 Freight Rate Decision”) was made without taking into account, and was inconsistent with, relevant considerations, in particular, the National Transportation Policy (“NTP”) as set out in s 5 of the Canada Transportation Act, SC 1996, c 10 (“CTA”). For the reasons that follow I have determined that Oceanex’s application cannot succeed.
Background
[3] What follows is a brief description of the parties, the relevant legislation, the evidence and factual background leading up to the making of the 2016/17 Freight Rate Decision.
The Parties
[4] Oceanex is a corporation incorporated and existing pursuant to the Canada Business Corporations Act, RSC, 1985, c C-44 (“CBCA”). It describes itself as carrying on the business of short sea shipping and intermodal freight transportation in Canada. As a freight carrier, it offers scheduled pier to pier commercial freight services by water between the ports of Halifax, Nova Scotia and Montreal, Quebec and the port of St. John’s, Newfoundland and Labrador. It states that it also offers door-to-door intermodal freight transportation service between the island of Newfoundland and destinations across North America. Oceanex was formed in 1991 and from 1998 to 2007 operated as a limited purpose trust, traded publically on the Toronto Stock Exchange. In 2007 a group of investors acquired all of the outstanding shares of Oceanex and privatized the company, one of those investors was Captain Sidney J. Hynes who has held the position of Executive Chairman of Oceanex since the privatization. Oceanex currently owns and operates three vessels and states that it transports all types of freight traffic, including general cargo, roll on/roll off equipment, containers and trailers.
[5] MAI is a corporation incorporated and existing pursuant to the CBCA. It is also a parent Crown corporation, as defined in s 83(1) of the Financial Administration Act, RSC, 1985, c F-11 (“FAA”), and is listed as such in Schedule III of the FAA. As a Crown corporation, its corporate affairs and financial administration are governed by Part X of the FAA. By way of corporate history, CN Marine Corporation was incorporated in December 1977 under the CBCA, at which time its shares were held by its parent company, the Canadian National Railway Corporation (“CNR”). In December 1978, the name of CN Marine Corporation was changed to CN Marine Inc. In 1986, pursuant to the Marine Atlantic Inc. Acquisition Authorization Act, SC 1986, c 36, (“MAIAAA”) the Minister acquired from CNR all of the common shares of CN Marine Inc., which were held in trust for Her Majesty the Queen in Right of Canada and, pursuant to s 3 of the MAIAAA, the company’s name was changed to Marine Atlantic Inc.
[6] MAI currently provides services on two routes. The first is a year round daily service between North Sydney, Nova Scotia and Port aux Basques, Newfoundland and Labrador which carries a mix of commercial and passenger traffic. The trip of 96 nautical miles takes approximately 6 hours from port to port. During off peak season, January to March, there are a minimum of 2 scheduled sailings per day from each of North Sydney and Port aux Basques, or 28 sailings per week. During the shoulder season, September to December and April to June, this increases to 34 sailings per week and, during peak season, July to August, there are 46 crossings per week. The second route is between North Sydney and Argentia, Newfoundland and Labrador. This is seasonal, June through September, primarily transports passengers, is a 280 nautical mile trip which takes approximately 14 to 16 hours port to port and is offered once per day between Monday and Saturday. MAI currently operates four vessels which have the ability to accommodate both commercial and private passenger vehicle traffic as well as passengers. It owns three of these vessels and charters a fourth.
[7] The Minister of Transport is responsible for the management and direction of the Department of Transport (“Transport Canada” or “TC”) (Department of Transport Act, RSC 1985, c T-18 (“Department of Transport Act”), s 3(2)). This includes being accountable to Parliament for Crown corporations falling within the mandate of Transport Canada, such as MAI. The Crown Corporation and Portfolio Governance group within Transport Canada supports the Minister in fulfilling these responsibilities for reporting to Parliament. Canada acknowledges that under the Terms of Union of Newfoundland with Canada (“Terms of Union”), which are incorporated by and are a schedule to the Newfoundland Act, 12-13 Geo. VI, c 22 (U.K.) (“Newfoundland Act”), as referenced in s 52(2) of the Constitution Act, 1982, being Schedule B to the Canada Act 1982 (UK), 1982, c 11 (“Constitution Act, 1982”) and thereby are a part of the Constitution of Canada, Canada is constitutionally obliged to provide a ferry service between North Sydney, Nova Scotia and Port aux Basques, Newfoundland and Labrador (“Constitutional Route”). This service is effected by MAI.
[8] By Order dated July 19, 2016, the Attorney General of Newfoundland and Labrador (“Newfoundland”) was granted intervenor status in this application. Newfoundland states that it intervenes as the application requires judicial interpretation of some of the most important provisions of the Terms of Union and because any decision that eliminates or reduces MAI’s federal subsidy will detrimentally impact the economy and the well-being of the citizens of Newfoundland and Labrador.
Constitutional Route
[9] While the distance of the Constitutional Route is not great, a mere 96 nautical miles, the route is extremely important to the residents and economy of Newfoundland and Labrador. It has been described as the economic lifeline of the province, delivering goods to stores, exports to market as well as tourists to hotels and, friends and relatives to homes; the province’s marine highway (“On Deck & Below: A Report on the Gulf Ferry Forum”, Sept 1999 report to the Federal Minister of Transport, Leamon Affidavit, Exhibit 4) and, as “an essential infrastructure component in strengthening the province’s economy” (“Our Place in Canada: Main Report of the Royal Commission on Renewing and Strengthening Our Place in Canada”, Leamon Affidavit, Exhibit 6). As to the ferry service on the Constitutional Route, a Special Examination Report of Marine Atlantic Inc. by the Auditor General of Canada (“Auditor General’s 2009 Report”) described MAI, which is the only provider of ferry services on that route, as a vital transportation link to Newfoundland and Labrador, its commercial customers transporting about 50% of the goods entering the province, including about 90% of perishable goods (Leamon Affidavit, Exhibit 8). The Canadian Industrial Relations Board ruled in 2003 that a strike or lockout affecting MAI’s ferry operations at any time of the year would impose an immediate and serious danger to Newfoundland’s public safety or health (Marine Atlantic Inc, 2004 CIRB 275 at paras 41-45, Leamon Affidavit, Exhibit 5) and, a report prepared by the Minister of Transport’s Advisory Committee on Marine Atlantic Inc. states that it is generally recognized that MAI plays an essential role in the economic and social life of the province, carrying approximately 37% of all passengers, 65% of all freight (including 95% of all perishable goods) as well as hazardous goods, and that tourists travelling by ferry contribute to the economy of the province (A Strategy for the Future of Marine Atlantic Inc., Minister of Transport’s Advisory Committee on Marine Atlantic Inc., March 31, 2005, Leamon Affidavit, Exhibit 7).
Legislation
(i) Terms of Union
[10] When Newfoundland became a province of Canada in 1949, the agreed basis for that union was set out in the Terms of Union. Relevant to this application are Terms 31, 32 and 36:
Public Services, Works and Property
31. At the date of Union, or as soon thereafter as practicable, Canada will take over the following services and will as from the date of Union relieve the Province of Newfoundland and Labrador of the public costs incurred in respect of each service taken over, namely,
(a) the Newfoundland Railway, including steamship and other marine services;
(b) the Newfoundland Hotel, if requested by the Government of the Province of Newfoundland and Labrador within six months from the date of Union;
(c) postal and publicly owned telecommunication services;
(d) civil aviation, including Gander Airport;
(e) customs and excise;
(f) defence;
(g) protection and encouragement of fisheries and operation of bait services;
(h) geological, topographical, geodetic, and hydrographic surveys;
(i) lighthouses, fog alarms, buoys, beacons, and other public works and services in aid of navigation and shipping;
(j) marine hospitals, quarantine, and the care of shipwrecked crews;
(k) the public radio broadcasting system; and
(l) other public services similar in kind to those provided at the date of Union for the people of Canada generally.
32.(1) Canada will maintain in accordance with the traffic offering a freight and passenger steamship service between North Sydney and Port aux Basques, which, on completion of a motor highway between Corner Brook and Port aux Basques, will include suitable provision for the carriage of motor vehicles.
(2) For the purpose of railway rate regulation the Island of Newfoundland will be included in the Maritime region of Canada, and through traffic moving between North Sydney and Port aux Basques will be treated as all rail traffic.
(3) All legislation of the Parliament of Canada providing for special rates on traffic moving within, into, or out of, the Maritime region will as far as appropriate, be made applicable to the Island of Newfoundland.
…
36. Without prejudice to the legislative authority of the Parliament of Canada under the British North America Acts, 1867 to 1946, any works, property, or services taken over by Canada pursuant to these Terms shall thereupon be subject to the legislative authority of the Parliament of Canada.
(ii) Constitution Act, 1982
[11] Pursuant to s 52 of the Constitution Act, 1982, the Terms of Union are part of the Constitution of Canada:
52. (1) The Constitution of Canada is the supreme law of Canada, and any law that is inconsistent with the provisions of the Constitution is, to the extent of the inconsistency, of no force or effect.
52. (1) La Constitution du Canada est la loi suprême du Canada; elle rend inopérantes les dispositions incompatibles de toute autre règle de droit.
(2) The Constitution of Canada includes
(2) La Constitution du Canada comprend :
(a) the Canada Act 1982, including this Act;
(b) the Acts and orders referred to in the schedule; and
(c) any amendment to any Act or order referred to in paragraph (a) or (b).
a) la Loi de 1982 sur le Canada, y compris la présente loi;
b) les textes législatifs et les décrets figurant à l’annexe;
c) les modifications des textes législatifs et des décrets mentionnés aux alinéas a) ou b).
(3) Amendments to the Constitution of Canada shall be made only in accordance with the authority contained in the Constitution of Canada.
(3) La Constitution du Canada ne peut être modifiée que conformément aux pouvoirs conférés par elle.
[12] Section 53 and the Schedule to the Constitution Act, 1982, Modernization of the Constitution, lists amendments to the British North America Act, 1867, as revised, now the Constitution Act, 1867, and other enactments effecting the admission of provinces and territories. The Newfoundland Act is so listed, the Terms of Union being a schedule thereof.
(iii) Marine Atlantic Inc. Acquisition Authorization Act
[13] Pursuant to s 3 (1) of the MAIAAA, on June 27, 1986, the name of CN Marine Inc., a corporation incorporated under the CBCA, was changed to Marine Atlantic Inc. and the articles of the corporation were amended accordingly. Further, the Minister was authorized to and did acquire all the common shares of MAI held by CNR to be held in trust for Her Majesty in right of Canada (s 4(2)). Sections 7 and 8 dealt with certain property and works and s 9 with the amendment of MAI’s articles of incorporation to restrict its business to marine transportation:
7 (1) On the direction of the Minister, the National Company shall transfer to Her Majesty in right of Canada the property and works listed in Part II of Schedule B to Order in Council P.C. 1979-1449 of May 9, 1979.
(2) The management, administration and control of the property and works transferred to Her Majesty pursuant to subsection (1) is hereby vested in the Minister.
7 (1) Au reçu de l’ordre du ministre, la Société nationale transfère à Sa Majesté du chef du Canada les biens et ouvrages énumérés à la partie II de l’annexe B du décret C.P. 1979-1449 du 9 mai 1979.
(2) Le ministre est chargé de la gestion et du contrôle des biens et ouvrages transférés à Sa Majesté en application du paragraphe (1).
8 The Minister, on such terms and conditions as the Governor in Council may prescribe, may sell, lease or otherwise dispose of to Marine Atlantic Inc., or by agreement in writing permit Marine Atlantic Inc. to use,
(a) any real or personal property or interest therein, or
(b) any power, right or privilege over or with respect to any real or personal property or interest therein
that is vested in or owned, controlled or occupied by Her Majesty in right of Canada and over which the Minister has the management, administration or control.
8 Le ministre peut, aux conditions que le gouverneur en conseil détermine, vendre ou donner en location à Marine Atlantique S.C.C., ou d’une façon générale aliéner au profit de la société, ou permettre à celle-ci, selon entente écrite, d’utiliser les biens suivants — dont la propriété, le contrôle ou l’occupation appartient à Sa Majesté — gérés ou contrôlés par le ministre :
a) des biens meubles ou immeubles, ou des droits sur ceux-ci;
b) tout pouvoir, droit ou privilège afférent à des biens meubles ou immeubles, ou des droits liés à tel pouvoir, droit ou privilège.
9 The Minister and Marine Atlantic Inc. are hereby authorized to take, and shall within three months after the coming into force of this section take, such steps as are necessary to amend the articles of Marine Atlantic Inc. to restrict the business that it may carry on to the acquisition, establishment, management and operation of a marine transportation service, a marine maintenance, repair and refit service, a marine construction business and any service or business related thereto.
9 Le ministre et Marine Atlantique S.C.C. sont autorisés à prendre les mesures nécessaires pour modifier les statuts de Marine Atlantique S.C.C. afin de limiter les activités de la société à l’acquisition, la mise sur pied, la gestion et l’exploitation d’un service de transport maritime, d’un service d’entretien, de réparations et de radoub, d’une entreprise de construction navale et d’une entreprise ou de services corrélatifs. La procédure de modification est entamée dans les trois mois suivant l’entrée en vigueur du présent article.
(iv) Financial Administration Act
[14] Part X of the FAA concerns Crown corporations and is binding on the Crown (s 84). Subsection 83(1) sets out the definitions for that part including a “parent crown corporation” which means a corporation that is wholly owned directly by the Crown, but does not include a departmental corporation.
[15] Pursuant to s 83(2), a corporation is wholly owned directly by the Crown if:
(a) all of the issued and outstanding shares of the corporation, other than shares necessary to qualify persons as directors, are held, otherwise than by way of security only, by, on behalf of or in trust for the Crown; or
(b) all the directors of the corporation, other than ex officio directors, are appointed by the Governor in Council or by a minister of the Crown with the approval of the Governor in Council.
a) toutes les actions en circulation de la personne morale, sauf les actions nécessaires pour conférer la qualité d’administrateur, sont détenues, autrement qu’à titre de garantie seulement, par Sa Majesté, en son nom ou en fiducie pour elle;
b) les administrateurs de la personne morale, sauf les administrateurs nommés d’office, sont nommés par le gouverneur en conseil ou par un ministre avec l’approbation du gouverneur en conseil.
[16] Corporate affairs are addressed in Division I of the FAA. Each Crown corporation is ultimately accountable, through the appropriate minister, to Parliament for the conduct of its affairs (s 88). The Governor in Council may, on the recommendation of that minister, give a directive to a parent Crown corporation, if the Governor in Council is of the opinion that it is in the public interest to do so (s 89(1)). However, before a directive is given, the minister shall consult the board of directors of the corporation with respect to the content and effect of the directive (s 89(2)). The minister must also cause a copy of any directive given to a parent Crown corporation to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the directive is given (s 89(4)). Forthwith after implementing a directive and completing any actions required to be taken in connection therewith, the parent Crown corporation shall notify the minister that the directive has been implemented (s 89(6)).
[17] Division II addresses officers and directors. An officer-director, in respect of a parent Crown corporation, is defined to mean the chairperson and the chief executive officer of the corporation, by whatever name called (s 104.1). Section 105 provides for the appointment of directors and officer-directors:
105 (1) Each director, other than an officer-director, of a parent Crown corporation shall be appointed by the appropriate Minister, with the approval of the Governor in Council, to hold office during pleasure for a term not exceeding four years that will ensure, as far as possible, the expiration in any one year of the terms of office of not more than one half of the directors of the corporation.
105 (1) À l’exception des administrateurs-dirigeants, les administrateurs d’une société d’État mère sont nommés à titre amovible par le ministre de tutelle, avec l’approbation du gouverneur en conseil, pour des mandats respectifs de quatre ans au maximum, ces mandats étant, dans la mesure du possible, échelonnés de manière que leur expiration au cours d’une même année touche au plus la moitié des administrateurs.
…
…
(5) Each officer-director of a parent Crown corporation shall be appointed by the Governor in Council to hold office during pleasure for such term as the Governor in Council considers appropriate.
(5) Les administrateurs-dirigeants d’une société d’État mère sont nommés à titre amovible par le gouverneur en conseil pour le mandat que celui-ci estime indiqué.
[18] Subject to Part X, the board of directors of a Crown corporation is responsible for the management of the businesses, activities and other affairs of the corporation (s 109).
[19] Division III deals with financial management and control:
122 (1) Each parent Crown corporation shall annually submit a corporate plan to the appropriate Minister for the approval of the Governor in Council on the recommendation of the appropriate Minister and, if required by the regulations, on the recommendation of the Minister of Finance.
122 (1) Chaque société d’État mère établit annuellement un plan d’entreprise qu’elle remet au ministre de tutelle pour que celui-ci et, si les règlements l’exigent, le ministre des Finances en recommandent l’approbation au gouverneur en conseil.
(2) The corporate plan of a parent Crown corporation shall encompass all the businesses and activities, including investments, of the corporation and its wholly-owned subsidiaries, if any.
(2) Le plan d’une société d’État mère traite de toutes les activités de la société et, le cas échéant, de ses filiales à cent pour cent, y compris leurs investissements.
(3) The corporate plan of a parent Crown corporation shall include a statement of
(a) the objects or purposes for which the corporation is incorporated, or the restrictions on the businesses or activities that it may carry on, as set out in its charter;
(b) the corporation’s objectives for the period to which the plan relates and for each year in that period and the strategy the corporation intends to employ to achieve those objectives; and
(c) the corporation’s expected performance for the year in which the plan is required by the regulations to be submitted as compared to its objectives for that year as set out in the last corporate plan or any amendment thereto approved pursuant to this section.
(3) Le plan d’une société d’État mère comporte notamment les renseignements suivants :
a) les buts pour lesquels elle a été constituée ou les restrictions quant aux activités qu’elle peut exercer, tels qu’ils figurent dans son acte constitutif;
b) ses objectifs pour la durée du plan et chaque année d’exécution de celui-ci, ainsi que les règles d’action qu’elle prévoit de mettre en oeuvre à cette fin;
c) ses prévisions de résultats pour l’année durant laquelle le plan doit, en conformité avec les règlements, être remis, par rapport aux objectifs pour cette année mentionnés au dernier plan, original ou modifié, approuvé en conformité avec le présent article.
(4) The corporate plan of a parent Crown corporation shall be prepared in a form that clearly sets out information according to the major businesses or activities of the corporation and its wholly-owned subsidiaries, if any.
(4) Le plan d’une société d’État mère doit mettre en évidence les principales activités de la société et, le cas échéant, de ses filiales à cent pour cent.
(5) No parent Crown corporation or wholly-owned subsidiary of a parent Crown corporation shall carry on any business or activity in any period in a manner that is not consistent with the last corporate plan of the parent Crown corporation or any amendment thereto approved pursuant to this section in respect of that period.
(5) Il est interdit à une société d’État mère ou à une de ses filiales à cent pour cent d’exercer pendant quelque période que ce soit des activités d’une façon incompatible avec le dernier plan, original ou modifié, qui a été approuvé en conformité avec le présent article pour cette période.
(6) Where a parent Crown corporation, or a wholly-owned subsidiary of a parent Crown corporation, proposes to carry on any business or activity in any period in a manner that is not consistent with the last corporate plan of the corporation or any amendment thereto approved pursuant to this section in respect of that period, the corporation shall, before that business or activity is so carried on, submit an amendment to the corporate plan to the appropriate Minister for approval as described in subsection (1).
(6) Dans le cas où une société d’État mère ou l’une de ses filiales à cent pour cent se propose d’exercer une activité d’une façon incompatible avec le dernier plan, original ou modifié, approuvé en conformité avec le présent article, la société, avant que cette activité ne soit commencée, soumet un projet de modification du plan au ministre de tutelle pour qu’il en recommande l’approbation dans les conditions prévues au paragraphe (1).
(6.1) The Governor in Council may specify such terms and conditions as the Governor in Council deems appropriate for the approval of a corporate plan or an amendment to a corporate plan.
(6.1) Le gouverneur en conseil peut assortir de conditions l’approbation d’un plan ou de ses modifications.
(7) The Governor in Council may make regulations prescribing, for the purposes of this section, the circumstances in which the recommendation of the Minister of Finance is required for the approval of a corporate plan or an amendment thereto.
(7) Le gouverneur en conseil peut, par règlement, indiquer, pour l’application du présent article, les circonstances qui nécessitent la recommandation du ministre des Finances pour l’approbation du plan, original ou modifié.
[20] Section 120 defines objectives, in relation to a parent Crown corporation as meaning the objectives of the corporation as set out in the corporate plan or an amendment to the corporate plan that has been approved pursuant to s 122. Sections 123 and 124 address the annual submission of operating and capital budgets, respectively:
123 (1) Each parent Crown corporation named in Part I of Schedule III shall annually submit an operating budget for the next following financial year of the corporation to the appropriate Minister for the approval of the Treasury Board on the recommendation of the appropriate Minister.
123 (1) Chaque société d’État mère mentionnée à la partie I de l’annexe III établit annuellement un budget de fonctionnement pour l’exercice suivant; elle le remet au ministre de tutelle pour qu’il en recommande l’approbation au Conseil du Trésor.
(2) The operating budget of a parent Crown corporation shall encompass all the businesses and activities, including investments, of the corporation and its wholly-owned subsidiaries, if any.
(2) Le budget de fonctionnement d’une société d’État mère traite de toutes les activités de la société et, le cas échéant, de ses filiales à cent pour cent, y compris leurs investissements.
(3) The operating budget of a parent Crown corporation shall be prepared in a form that clearly sets out information according to the major businesses or activities of the corporation and its wholly-owned subsidiaries, if any.
(3) Le budget de fonctionnement d’une société d’État mère doit mettre en évidence les principales activités de la société et, le cas échéant, de ses filiales à cent pour cent.
(4) Where a parent Crown corporation anticipates that the total amount of expenditures or commitments to make expenditures in respect of any major business or activity in a financial year will vary significantly from the total amount projected for that major business or activity in an operating budget of the corporation or any amendment thereto that is approved pursuant to this section for that year, the corporation shall submit an amendment to the budget to the appropriate Minister for the approval of the Treasury Board on the recommendation of the appropriate Minister.
(4) La société d’État mère qui prévoit que le total de ses dépenses ou de ses engagements de dépenses pour une activité principale au cours d’un exercice différera sensiblement du total prévu pour cette activité dans le budget de fonctionnement, original ou modifié, approuvé pour l’exercice en conformité avec le présent article, soumet un projet de modification du budget au ministre de tutelle pour qu’il en recommande l’approbation au Conseil du Trésor.
(5) The Treasury Board may specify such terms and conditions as it deems appropriate for the approval of an operating budget or an amendment to an operating budget.
(5) Le Conseil du Trésor peut assortir de conditions l’approbation du budget de fonctionnement ou de ses modifications.
124 (1) Each parent Crown corporation shall annually submit a capital budget for the next following financial year of the corporation to the appropriate Minister for the approval of the Treasury Board on the recommendation of the appropriate Minister.
124 (1) Chaque société d’État mère établit annuellement un budget d’investissement pour l’exercice suivant; elle le remet au ministre de tutelle pour qu’il en recommande l’approbation au Conseil du Trésor.
(2) The capital budget of a parent Crown corporation shall encompass all the businesses and activities, including investments, of the corporation and its wholly-owned subsidiaries, if any.
(2) Le budget d’investissement d’une société d’État mère traite de toutes les activités de la société et, le cas échéant, de ses filiales à cent pour cent, y compris leurs investissements.
(3) The Treasury Board may approve any item in a capital budget submitted pursuant to subsection (1) for any financial year or years after the financial year for which the budget is submitted.
(3) Le Conseil du Trésor peut approuver un poste du budget d’investissement visé au paragraphe (1) pour un ou plusieurs exercices suivant celui que vise le budget.
(4) The capital budget of a parent Crown corporation shall be prepared in a form that clearly sets out information according to the major businesses or activities of the corporation and its wholly-owned subsidiaries, if any.
(4) Le budget d’investissement d’une société d’État mère doit mettre en évidence les principales activités de la société et, le cas échéant, de ses filiales à cent pour cent.
(5) No parent Crown corporation or wholly-owned subsidiary of a parent Crown corporation shall incur, or make a commitment to incur, a capital expenditure in any financial year for which the corporation is required to submit a budget pursuant to this section, unless
(a) a budget for that year has been approved pursuant to this section; or
(b) the expenditure or commitment
(i) is included in an item for that year that has been approved pursuant to subsection (3) as part of a budget for a previous year,
(ii) has been specifically approved pursuant to this section as though it were a capital budget, or
(iii) is, in the opinion of the board of directors of the corporation or subsidiary, essential to continue a current business or activity of the corporation or subsidiary as set out in a corporate plan or budget of the corporation that has been approved pursuant to this section or section 122 or 123.
(5) Il est interdit à une société d’État mère ou à une de ses filiales à cent pour cent d’effectuer une dépense d’investissement ou de s’y engager au cours d’un exercice pour lequel la société doit présenter un budget en vertu du présent article, sauf dans les cas suivants :
a) un budget pour cet exercice a été approuvé en conformité avec le présent article;
b) la dépense ou l’engagement:
(i) figure dans un poste relatif à l’exercice et approuvé en conformité avec le paragraphe (3) pour un exercice précédent,
(ii) a été approuvé expressément en conformité avec le présent article comme s’il s’agissait d’un budget d’investissement,
(iii) est, selon le conseil d’administration de la société ou de la filiale, essentiel à la poursuite des activités courantes de l’une ou l’autre telles qu’elles figurent au plan ou au budget de la société approuvés en conformité avec le présent article ou avec les articles 122 ou 123.
(6) Where, by reason of any one or more proposed expenditures or commitments to make expenditures, a parent Crown corporation anticipates that the total amount of expenditures or commitments to make expenditures in respect of any major business or activity in a financial year will vary significantly from the total amount projected for that major business or activity in a capital budget of the corporation or any amendment thereto that is approved pursuant to this section for that year, the corporation shall submit an amendment to the budget to the appropriate Minister for the approval of the Treasury Board on the recommendation of the appropriate Minister, and the expenditure or expenditures shall not be incurred or commitments made before that approval is obtained.
(6) La société d’État mère qui prévoit que le total de ses dépenses ou de ses engagements de dépenses pour une activité principale au cours d’un exercice différera sensiblement, à cause d’un ou de plusieurs projets de dépenses ou d’engagements, du total prévu pour cette activité dans le budget d’investissement, original ou modifié, approuvé pour l’exercice en conformité avec le présent article, soumet un projet de modification du budget au ministre de tutelle pour qu’il en recommande l’approbation au Conseil du Trésor; ces dépenses et engagements ne peuvent se faire avant l’approbation.
(7) The Minister of Finance may require that his recommendation, in addition to that of the appropriate Minister, be obtained before a capital budget or an amendment to a capital budget is submitted to the Treasury Board for approval under this section.
(7) Le ministre des Finances peut exiger que sa propre recommandation, en plus de celle du ministre de tutelle, accompagne un budget d’investissement, original ou modifié, soumis au Conseil du Trésor pour approbation.
(8) The Treasury Board may specify such terms and conditions as it deems appropriate for the approval of a capital budget or an amendment to a capital budget.
(8) Le Conseil du Trésor peut assortir de conditions l’approbation du budget d’investissement ou de ses modifications.
125 (1) After a corporate plan, operating budget or capital budget, or an amendment thereto, is approved pursuant to section 122, 123 or 124, the parent Crown corporation shall submit a summary of the plan or budget, or the plan or budget as so amended, to the appropriate Minister for his approval.
125 (1) Une fois son plan, budget de fonctionnement ou budget d’investissement, originaux ou modifiés, approuvés en conformité avec les articles 122, 123 ou 124, la société d’État mère en établit un résumé qu’elle soumet au ministre de tutelle pour son approbation.
(2) A summary shall encompass all the businesses and activities, including investments, of the parent Crown corporation and its wholly-owned subsidiaries, if any, and shall set out the major business decisions taken with respect thereto.
(2) Le résumé traite de toutes les activités de la société d’État mère et, le cas échéant, de ses filiales à cent pour cent, y compris leurs investissements, et souligne les décisions importantes prises à ces fins.
(3) A summary shall be prepared in a form that clearly sets out information according to the major businesses or activities of the parent Crown corporation and its wholly-owned subsidiaries, if any.
(3) Le résumé doit mettre en évidence les principales activités de la société d’État mère et, le cas échéant, de ses filiales à cent pour cent.
(4) The appropriate Minister shall cause a copy of every summary he approves pursuant to this section to be laid before each House of Parliament.
(4) Le ministre de tutelle fait déposer devant chaque chambre du Parlement un exemplaire de chaque résumé qu’il approuve en conformité avec le présent article.
(5) A summary laid before Parliament pursuant to subsection (4) stands permanently referred to such committee of Parliament as may be designated or established to review matters relating to the businesses and activities of the corporation submitting the summary.
(5) Le résumé déposé devant le Parlement en conformité avec le paragraphe (4) est automatiquement renvoyé devant le comité parlementaire chargé des questions qui touchent aux activités de la société qui a établi le résumé.
(v) Canada Transportation Act
[21] The CTA is binding on Her Majesty in right of Canada or a province (s 2) and applies in respect of transportation matters under the legislative authority of Parliament (s 3). Subject to s 4(3), which is not relevant to this application, nothing in or done under the authority of the CTA, other than Division IV of Part III, affects the operation of the Competition Act, RSC, 1985, c C-34 (“Competition Act”) (s 4(2)).
[22] The CTA sets out in s 5, by way of declaration, the National Transportation Policy:
5 It is declared that a competitive, economic and efficient national transportation system that meets the highest practicable safety and security standards and contributes to a sustainable environment and makes the best use of all modes of transportation at the lowest total cost is essential to serve the needs of its users, advance the well-being of Canadians and enable competitiveness and economic growth in both urban and rural areas throughout Canada. Those objectives are most likely to be achieved when
(a) competition and market forces, both within and among the various modes of transportation, are the prime agents in providing viable and effective transportation services;
(b) regulation and strategic public intervention are used to achieve economic, safety, security,