TRAN Committee Report

SUPPLEMENTARY REPORT
OF THE
NEW DEMOCRATIC PARTY OF CANADA 

Addressing Port Infrastructure Expansion in Canada

The New Democratic Party supports the findings and recommendations of the majority of the Standing Committee on Transportation, Infrastructure and Communities’ report Addressing Port Infrastructure Expansion in Canada. This includes the report’s call for a thorough strategic review of port capacity, requiring climate plans and emissions targets for ports, inclusion of labour representation on port authority boards of directors, and facilitating cooperation between port authorities.

This supplementary report highlights additional solutions brought forward by witnesses but not included in the committee’s final report. These include emergency federal funding to address the Prince Rupert infrastructure crisis; reallocation of federal port stipends to small host municipalities; expanding the mandate of ports to allow for investment in housing; and respecting regulatory oversight and safety for port infrastructure expansion projects.

Emergency Funding for the Prince Rupert Infrastructure Crisis

In Prince Rupert Mayor Herbert Pond’s testimony before the Committee, he described the ongoing infrastructure crisis in his city, which in December 2022 experienced 14 watermain breaks in a two-week period and has an infrastructure backlog of $650 million.

“The trade corridor through Prince Rupert supports billions of dollars of economic activity across Canada and generates millions of dollars of revenue for the provincial and federal governments, yet it was all put at risk this past winter. The City of Prince Rupert declared a state of emergency when it battled 14 water main breaks in the space of two weeks. Much larger urban municipalities won't deal with that many in a year. Our little municipality needs help if we're to play our part in hosting this strategically necessary corridor.”- Mayor Herbert Pond, TRAN 60, March 28, 2023

Despite having a population of only 12,300, Prince Rupert is the third-largest port in Canada and is rapidly growing. In 2022, 29.9 million tons of cargo passed through the port. The port’s success has put pressure on civic infrastructure and housing, however constraints on municipal revenue streams have meant the city has struggled to address these pressures and accommodate port-related growth.

The NDP recommends that the federal government joins the government of British Columbia in providing emergency funding to address Prince Rupert’s water infrastructure crisis, and in doing so maintain the effectiveness of this vital part of Canada’s supply chain.

Reallocation of Federal Stipend to Host Municipalities

In smaller port municipalities, port activity contributes disproportionately to the local economy. Although structures vary by province, constraints on port authorities’ contribution to municipal governments often make it difficult for communities to invest in vital civic infrastructure and services.

“Another thing that might be considered for communities under a certain size is a return of the federal stipend that comes from port revenues, each year, which is returned to the federal government as a small profit. Those are probably fairly meaningless in the grand scheme of things to Ottawa, but they would be indispensable in a small community.”- Mayor Herbert Pond, TRAN 60, March 28, 2023

In his testimony, Mayor Pond advocated for the federal government to re-allocate the annual stipend paid port authorities currently pay to federal government. This stipend, he proposed, could be redirected to host municipalities, particularly those in which the port accounts for a large portion of the local economy. He articulated that this stipend is relatively insignificant in the context of total federal revenues but could make a huge positive impact for municipalities like Prince Rupert, where it would amount to approximately $3 million per year. 

Municipalities require predictable revenue to maintain and advance services and infrastructure. Port authorities do contribute to their surrounding communities, just as they rely on their services and infrastructure to accommodate their workforce. However, a more significant, structured contribution would better allow municipalities to plan and invest for the future. Therefore, the NDP recommends that for situations in which small communities support large ports, the federal government re-allocate the annual port stipend to the municipal government for investment in infrastructure.

Expanding Port Mandates to Include Housing

The committee’s Recommendation 9 (Authorized Activities) recommends “That the Government of Canada, in consultation with port authorities and affected stakeholders, consider simplifying the process for changing the activities authorized through letters patent in order to provide more flexibility in addressing the specific needs of each port.” This is an important recommendation that several witnesses called for in their testimony before the Committee. The NDP recommends expanding this recommendation to specifically allow ports to invest in workforce housing.

“For small municipalities that host large ports, there should be consideration for expanding the ports' mandates to include housing in small communities. Large urban ports invest heavily in decongesting travel corridors in their host communities, to the great benefit of those host communities. Rupert doesn't need decongesting, but we desperately need housing to accommodate the next workers for the next project.”

- Mayor Herbert Pond, TRAN 60, March 28, 2023

The current federal mandate for ports already allows investment to alleviate community pressures related to port activity. For example, ports are permitted to invest in decongestion efforts in local municipalities to alleviate traffic issue caused by port operations. However, not all port municipalities experience the same issues or require the same investments. For example, Prince Rupert struggles less with congestion issues than ports in larger metropolitan areas, but the rapid expansion of the Port of Prince Rupert has strained local housing supply.

The government must acknowledge that port municipalities are diverse and require different policy approaches depending on their unique context. As such, the government should evaluate expanding the mandates of port authorities to allow for investment in housing related to the supply chain workforce.

Respecting Regulatory Oversight

With regard to the Committee’s Recommendation 2 (Ensuring Effective Regulatory Environment), the NDP notes that port authorities and users indeed deserve efficient, timely, and properly resourced approval processes and regulations. At the same time, it is important that the federal government’s regulatory approach for ports properly involves local stakeholders, protects the environment, and respects Indigenous title and rights.

An example of the necessity of a thorough review process was outlined in testimony by International Longshore and Warehouse Union President Robert Ashton regarding the Port of Vancouver’s proposed Roberts Bank Terminal Two expansion in the Fraser River estuary. In his testimony, Mr. Ashton described his union’s serious environmental and labour concerns regarding the project, which are shared by environmental groups and some area First Nations. While the port authority shared its frustration with the Committee regarding the time required for the federal review process, the seriousness of important stakeholders’ concerns underlines the need for a thorough, comprehensive review process, along with rigorous regulations.

Conclusion

While the NDP agrees with the majority of the committee’s report and recommendations regarding port infrastructure expansion in Canada, there were several missed opportunities to provide solutions to problems described in witness testimony. The NDP urges the federal government to address opportunities and challenges related to Canada’s marine ports using the recommendations in both the Committee’s report, and this supplementary report.

NDP Recommendation 1- Reallocation of fees to host municipalities

That, in cases in which a port municipality is small in relation to its port, the Government of Canada re-redirect the stipend the port authority pays the federal government to the municipality, to be invested in municipal infrastructure necessary to support port activities.

NDP Recommendation 2- Federal funding for the Prince Rupert Infrastructure Crisis

That the Government of Canada provide emergency funding to the City of Prince Rupert to address its ongoing water infrastructure crisis, and in doing so safeguard the functioning of an important, growing Canadian port community.

NDP Recommendation 3- Including Housing in Port Mandates

That the Government of Canada, in consultation with port authorities, municipalities and other stakeholders, consider expanding the mandates of port authorities to allow for investment in housing related to the supply chain workforce.