Block Transfers

Deemed transfer of employees

37.3 (1) Nothing in an order made under the Public Service Rearrangement and Transfer of Duties Act shall be construed as affecting the status of an employee who, immediately before the coming into force of the order, occupied a position in a portion of the Public Service the control or supervision of which has been transferred from one department or portion of the Public Service to another, or in a department that has been amalgamated and combined, except that the employee shall, on the coming into force of the order, occupy that position in the department or portion of the Public Service to which the control or supervision has been transferred or in the department as amalgamated and combined.

Transfer of other staff

(2) Where an order is made under the Public Service Rearrangement and Transfer of Duties Act, the Governor in Council may, by order made on the recommendation of the Treasury Board and where the Governor in Council is of the opinion that an employee or class of employees is carrying out powers, duties or functions that are in whole or in part in support of or related to the powers, duties and functions of employees referred to in subsection (1) and that it is in the best interests of the Public Service to do so, declare that the employee or class of employees shall, on the coming into force of the order, occupy their positions in the department or portion of the Public Service where the employees referred to in subsection (1) are currently occupying their positions.

Definition of ``Public Service''

(3) In this section, ``Public Service'' means the departments and other portions of the public service of Canada specified in Part I of Schedule I to the Public Service Staff Relations Act.

Retroactive application

(4) This section applies to any order made under the Public Service Rearrangement and Transfer of Duties Act on or after March 20, 1995 and before or after the coming into force of this section.

PART III

TRANSPORTATION MATTERS

R.S., c. 28 (3rd Supp.)

National Transportation Act, 1987

11. Section 4 of the National Transportation Act, 1987 is amended by adding the following in alphabetical order:

``grain-depen dent branch line''
« embranche ment tributaire du transport du grain »

``grain-dependent branch line'' means a railway line set out in Schedule I;

12. Paragraph 47(b) of the Act is replaced by the following:

    (b) the carriage of goods by railways to which the Railway Act applies, other than their carriage in trailers or containers on flat cars, unless the containers arrive by water at a port in Canada, served by only one railway company, for further movement by rail or arrive by rail at such a port in Canada for further movement by water.

13. Paragraph 58(b) of the Act is replaced by the following:

    (b) the carriage of goods by railways to which the Railway Act applies;

14. Section 111 of the Act is replaced by the following:

Powers respecting tariffs not affected by other Acts

111. The powers given by this Division to a railway company with respect to tariffs, confidential contracts and agreed charges are not limited or in any manner affected by any Act of Parliament, other than this Act, or by any agreement made or entered into pursuant to any Act of Parliament other than this Act, whether general in application or special and relating only to any specific railway, except Term 32 of the Terms of Union of Newfoundland with Canada set out in the schedule to the Newfoundland Act.

15. Section 118 of the Act is repealed.

16. Section 160 of the Act is amended by adding the following after subsection (7):

Exception

(8) Subsections (1) to (3) do not apply to an application for abandonment of a grain-dependent branch line, or a segment of it, that is designated by the Governor in Council.

17. Subsection 173(3) of the Act is replaced by the following:

Recommendat ions to Minister

(3) In performing its duties under sections 163 to 172, the Agency may recommend to the Minister that the Minister enter into an agreement under subsection 175(1) if, in the opinion of the Agency, it would be more cost-effective to improve alternative transportation facilities in the area served by a branch line or a segment of it, other than a line or segment that is a grain-dependent branch line, than to continue to make payments under section 178 to the railway company that operates the line or segment.

18. The portion of subsection 174(1) of the Act before paragraph (a) is replaced by the following:

Offer to purchase

174. (1) An offer to purchase a branch line or a segment of it, other than a line or segment that is a grain-dependent branch line designated by the Governor in Council, for a price, which shall not be less than the net salvage value of the line or segment, may be made to the railway company that operates the line or segment by any other railway company that is authorized to operate the line or segment, in order to continue to operate it, during either of the following periods:

19. (1) The portion of subsection 175(1) of the Act before paragraph (a) is replaced by the following:

Assistance for alternative transportation facilities

175. (1) The Minister may enter into an agreement with the government of a province or municipality or with any shipper, or association or other body representative of shippers, on a branch line to provide, out of money appropriated by Parliament for that purpose, for the payment of contributions to improve alternative transportation facilities for shippers served by the line or a segment of it, other than a line or segment that is a grain-dependent branch line, if in the opinion of the Minister it would be more cost-effective to improve alternative transportation facilities in the area served by the line or segment or in the area to or from which is shipped the rail traffic that would be affected by the abandonment of the operation of the line or segment than for payments to continue to be made under section 178 to the railway company that operates the line or segment and

(2) Subsection 175(6) of the Act is replaced by the following:

Agreement where operation to be abandoned

(6) Where the Agency has ordered under section 165 or 166 that the operation of a branch line or segment, other than a line or segment that is a grain-dependent branch line, be abandoned, the Minister may enter into an agreement with the government of a province or municipality, with any persons who are or were regular shippers by rail on the date, or during the two years preceding the date, that the order is made or with any association or other body representative of those shippers to provide, out of money appropriated by Parliament for that purpose, for the payment of contributions to assist in the transition to improved transportation facilities in the area served by the line or segment or in the area to or from which is shipped the rail traffic that will be affected by the abandonment of the operation of the line or segment, if in the opinion of the Minister it has been demonstrated that one or more shippers would suffer significant economic harm as a result of the abandonment of the operation of the line or segment.

20. (1) The portion of subsection 178(1) of the Act after subparagraph (b)(iii) is repealed.

(2) Section 178 of the Act is amended by adding the following after subsection (1):

Section not applicable to grain-depende nt branch lines

(1.1) This section does not apply to a grain-dependent branch line.

(3) Paragraph 178(2)(b) of the Act is replaced by the following:

    (b) a branch line during the period in which the operation of the branch line cannot be ordered to be abandoned by reason of an order continued under subsection 177(1),

21. The Act is amended by adding the following after section 181:

DIVISION II.1

TRANSPORTATION OF WESTERN GRAIN

Interpretation

181.1 In this Division,

``crop year''
« campagne agricole »

``crop year'' means the period beginning on August 1 in any year and ending on July 31 in the next year;

``export''
« exportation »

``export'', in respect of grain, means shipment by a vessel, as defined in section 2 of the Canada Shipping Act, to any destination outside Canada and shipment by any other mode of transport to the United States for use of the grain in that country and not for shipment out of that country;

``grain''
« grain »

``grain'' means any grain or crop included in Schedule II that is grown in the Western Division, or any product of it included in Schedule II that is processed in the Western Division;

``joint line movement''
« mouvement sur ligne conjointe »

``joint line movement'' means any rail traffic that passes over any continuous route in Canada operated by two or more railway companies;

``maximum rate scale''
« barème »

``maximum rate scale'' means a scale of maximum rates per tonne that may be charged for the movement of grain over specified ranges of distance;

``movement''
« mouvement du grain »

``movement'', in respect of grain, means the carriage of grain by a railway company over a line of railway from a point on any line west of Thunder Bay or Armstrong, Ontario to

      (a) Thunder Bay or Armstrong, Ontario, or

      (b) Churchill, Manitoba or a port in British Columbia for export,

    but does not include the carriage of grain to a port in British Columbia for export to the United States for consumption in that country;

``port in British Columbia''
« port de la Colombie-Brit annique »

``port in British Columbia'' means Vancouver, North Vancouver, New Westminster, Roberts Bank, Prince Rupert, Ridley Island, Burnaby, Fraser Mills, Fraser Surrey, Fraser Wharves, Lake City, Lulu Island Junction, Port Coquitlam, Port Moody, Stevenston, Tilbury and Woodwards Landing;

``railway company''
« compagnie de chemin de fer »

``railway company'' means the Canadian National Railway Company, Canadian Pacific Limited and any company prescribed pursuant to section 181.17 that operates a railway;

``tariff''
« tarif »

``tariff'' means a tariff of rates, rules and regulations for the movement of grain published pursuant to section 116;

``Western Division''
« région de l'Ouest »

``Western Division'' means all that part of Canada lying west of the meridian passing through the eastern boundary of the City of Thunder Bay, including the whole of the Province of Manitoba.

Application of Division I

Application to tariffs and rates

181.11 The provisions of Division I, except subsection 112(2) and section 113, apply, with such modifications as the circumstances require, to tariffs and rates under this Division to the extent that those provisions are not inconsistent with this Division.

Maximum rate scale

Maximum rate scale for the 1995-96 crop year

181.12 (1) The maximum rate scale for the 1995-96 crop year is set out in Schedule III.

Agency to determine maximum rate scale

(2) The maximum rate scale for each subsequent crop year shall be determined by the Agency in accordance with section 181.13 on or before April 30 of the previous crop year.

Determination of maximum rate scale

181.13 (1) The maximum rate scale shall be determined by multiplying the amount per tonne for the movement of grain over each range of distance set out in the maximum rate scale for the 1995-96 crop year by the freight rate multiplier.

Freight rate multiplier

(2) The freight rate multiplier is the product obtained by applying the following formula:

(1 + A - B ) x (1 - C x $10,000 ) ( B $1,052,800,000)

where

A is the volume-related composite price index, as determined by the Agency, for the crop year for which the Agency is determining the maximum rate scale,

B is the volume-related composite price index for the 1994-95 crop year, and

C is the number of miles of grain-dependent branch line abandoned from April 1, 1994 to April 1 before the crop year for which the Agency is determining the maximum rate scale.

Tariff of Rates

Rates to conform with this Division

181.14 (1) The rates of a railway company for the movement of grain in a crop year shall not exceed the rates contained in the maximum rate scale for that crop year.

How rates derived

(2) Each rate shall be derived from the rate applicable to the appropriate range of distance in the maximum rate scale for that crop year.

Demurrage, storage costs and benefits excluded from rates

(3) The following are excluded from the rates for the movement of grain:

    (a) demurrage;

    (b) rates for the storage of railway cars loaded with grain; and

    (c) benefits for loading or unloading grain before the expiration of the period agreed on for loading or unloading grain.

Higher rates in respect of joint line movements

181.15 (1) A railway company may include in its tariff a rate in respect of a joint line movement that is higher than that provided by section 181.14 if the higher rate is authorized pursuant to subsection (2).

Rates applicable to joint line movements

(2) The Agency may determine an amount by which a rate applicable to a joint line movement may exceed the level provided by section 181.14, but that amount shall not exceed the level that, in the opinion of the Agency, is necessary to defray the additional costs directly attributable to the joint line movement, other than costs that, in the opinion of the Agency, are incurred by a railway company for the movement of grain in the vicinity of a port for unloading purposes.

Higher rates in respect of certain railway cars

181.16 (1) A railway company may include in its tariff a rate in respect of the movement of grain by means of railway cars, other than box cars, hopper cars or shipper supplied tank cars, that is higher than that provided by section 181.14 if the rate is authorized pursuant to subsection (2).

Rates applicable to movement by certain railway cars

(2) The Agency may determine an amount by which a rate applicable to a movement of grain by means of railway cars, other than box cars, hopper cars or shipper supplied tank cars, may exceed the rate provided by section 181.14, but the amount shall not exceed the level that, in the opinion of the Agency, is necessary to reflect the difference in costs.

Regulations

Regulations of the Governor in Council

181.17 The Governor in Council may make regulations designating a company that operates a railway subject to the jurisdiction of Parliament as a railway company for the purposes of this Division.

Review

Review

181.18 (1) During 1999, the Minister shall, in consultation with shippers, railway companies and such other persons as the Minister considers appropriate, conduct and complete a review of the effect of this Act, and in particular this Division, on the efficiency of the grain transportation and handling system and on the sharing of efficiency gains as between shippers and railway companies.

Determination whether to repeal

(2) The Minister shall, as part of this review, determine

    (a) whether the repeal of this Division and Schedules I, II and III will have a significant adverse impact on shippers; and

    (b) whether this Division and Schedules I, II and III should be repealed.

Repeal of Division and Schedules

181.19 If the Minister determines, pursuant to paragraph 181.18(2)(b), that this Division and Schedules I, II and III should be repealed, then this Division and those Schedules shall be repealed on a day to be fixed by order of the Governor in Council.

22. The Act is amended by adding the schedules set out in Schedule I.