Lloyd's Maritime and Commercial Law Quarterly
CANADIAN MARITIME LEGISLATION AND DECISIONS 1991–1992
William Tetley*
LEGISLATION
For the past year, the Canadian Government has been active in adopting maritime legislation and in preparing laws for future adoption (although we have not been as successful in changing our Constitution). The main provisions are as follows.
1. The Coasting Trade Act1 was adopted on 23 June 1992 and came into force on 1 December 1992. The Act provides new rules for cabotage (i.e., carriage between Canadian ports and on the Canadian Continental Shelf). In general, the law permits only Canadian ships to transport passengers and goods in the coasting trade, although it continues the present system of waivers, under which foreign non-duty paid ships are temporarily permitted to enter and trade in Canadian waters.
For those who question whether certain governmental rights really rank ahead of traditional maritime liens (I call them “special legislative rights”2), a new such right has been created by the Act. Violators of the Coasting Trade Act may not only have their ship seized, detained and sold, but the proceeds will be used to pay the fine, costs and governmental expenses before the mortgage holder and the traditional maritime lien holders (and their lawyers) receive any share whatsoever.
2. Amendments to the Canada Shipping Act3 are in the making to implement the 1989 Salvage Convention and the 1990 Oil Pollution Preparedness, Response and Cooperation Convention (OPRC). It is hoped, in respect to the OPRC, to increase the maximum fine for pollution offences and to give the courts greater discretion in fixing of fines, prison terms, penalties and other sanctions against offenders.
3. The National Transportation Act4 is under review by a committee chaired by Gilles Rivard of Quebec City.
4. The Shipping Conferences Exemption Act5 is also under review by the Rivard Committee. (There is no longer a periodic review of the Act.)
5. A draft Marine Insurance Act for Canada, based on the U.K. Marine Insur-
* Q.C., Professor of Law, McGill University. The author acknowledges the assistance of Robert C. Wilkins in the preparation and correction of the text.
1. S.C. 1992, c. 31
2. See W. Tetley, Maritime Liens & Claims, Blais, Montreal (1985), 42–45. Special legislative rights which exist today include rights by governments for dock dues, for claims against polluters, for claims against drug offenders, and St Lawrence Seaway dues and fines (in both Canada and the U.S.).
3. R.S.C. 1985, c. S–9.
4. S.C. 1987, c. 34.
5. R.S.C. 1985 (3rd Supp.) c. 17, S.C. 1987, c. 22.
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