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This enactment provides authority for the disposition of all or
substantially all of the assets of the Cape Breton Development
Corporation (the ``Corporation'') and provides for the dissolution and
winding up of the affairs of the Corporation. The purpose is to enable
a private sector operator to acquire the mining assets of the Corporation
so that the federal government can exit the coal mining business in Cape
Breton and to provide for the continuation of the existing jurisdictional
regimes for labour relations, occupational safety and health, and labour
standards. Consequential amendments are proposed to the existing
legislation to remove provisions that are no longer applicable, to
provide for a reduced board of directors in the future, and to permit legal
actions to be brought against the Crown.
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Clause 6: (1) The definitions ``Coal Division'' and
``companies'' in section 2 read as follows:
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``Coal Division'' means the Coal Division of the Corporation,
established by section 8;
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``companies'' means all or any of Dominion Coal Company, Limited,
Nova Scotia Steel and Coal Company, Limited, The Dominion
Rolling Stock Company Limited, Sydney and Louisburg Railway
Company, The Scotia Rolling Stock Company Limited and The
Cumberland Railway Company;
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(2) The definition ``Chairman'' in section 2 reads as
follows:
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``Chairman'' means the Chairman of the Board;
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(3) New.
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Clause 7: Section 3 reads as follows:
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3. A corporation is hereby established to be called the Cape Breton
Development Corporation, consisting of a Board of Directors
comprised of a Chairman, a President and five other directors to be
appointed in the manner provided in section 4.
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Clause 8: Section 4 reads as follows:
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4. (1) The Chairman and the President shall each be appointed by the
Governor in Council, after consultation with the Lieutenant Governor
in Council of Nova Scotia, to hold office during pleasure for such term
as the Governor in Council considers appropriate.
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(2) Each director, other than the Chairman and the President, shall be
appointed by the Minister, with the approval of the Governor in
Council, to hold office during pleasure for such term, not exceeding
three years, as 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.
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(3) Two directors other than the Chairman and the President shall be
appointed on the recommendation of the Lieutenant Governor in
Council of Nova Scotia.
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(4) Subject to subsection (5), the President is eligible for
re-appointment on the expiration of his term of office, but any other
director who has served two consecutive terms is not, during the twelve
months following the completion of that director's second term, eligible
for appointment except as President.
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(5) A director ceases to be a director of the Corporation on attaining
the age of seventy years.
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(6) A vacancy on the Board does not impair the right of the remaining
directors to act but where any such vacancy occurs it shall be filled as
soon as practicable by appointment in the manner provided in this
section.
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Clause 9: Section 5 reads as follows:
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5. The Chairman shall preside at meetings of the Board but in the
event of the absence or incapacity of the Chairman, or if the office of
Chairman is vacant, the President shall preside at those meetings.
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Clause 10: Subsection 7(1) reads as follows:
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7. (1) The President shall be paid by the Corporation a salary to be
fixed by the Governor in Council and the Chairman and the other
directors other than the President shall be paid by the Corporation such
fees for attendances at meetings of the Board or any committee thereof
as are fixed by the Governor in Council.
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Clause 11: Sections 8 to 14 read as follows:
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8. (1) There shall be established within the Corporation for the more
efficient management and conduct of the activities thereof, a division
of the Corporation to be known as the Coal Division, which shall be
under the management of a vice-president of the Corporation to be
appointed in the manner provided in subsection (2) and such other
divisions, if any, as the Board deems appropriate.
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(2) The Board, on the recommendation of the President, shall
appoint a vice-president of the Corporation who shall be responsible to
the President for the management of the Coal Division.
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(3) The Corporation may employ such other officers and such
employees and technical and professional advisers as it considers
necessary for the proper conduct of its activities.
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(4) The vice-president of the Corporation appointed pursuant to
subsection (2) and the persons employed pursuant to subsection (3)
shall be paid by the Corporation such remuneration as is fixed or
provided for by the Board and shall be employed on such terms and
conditions as are fixed or provided for by by-law of the Corporation.
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(5) The vice-president appointed pursuant to subsection (2) may
attend any meetings of the Board or of a committee thereof.
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9. (1) For the purpose of enabling the Corporation to carry out its
objects under this Act, the Corporation is empowered to acquire
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(a) all or any part of the lands and personal property located on the
Island of Cape Breton in the Province of Nova Scotia, other than the
line of railway operated by the companies between Broughton
Junction and Louisburg, and
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(b) all interests of the companies in lands and all personal property
located under waters adjacent to the Island of Cape Breton,
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that constituted or formed part of the works and undertakings operated
or carried on by the companies on or after June 15, 1967.
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(2) The acquisitions referred to in subsection (1) may be made
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(a) by purchase for such consideration and on such terms as the
Corporation and the owner thereof may agree on, but no agreement
entered into under this paragraph has any force or effect unless
approved by the Governor in Council;
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(b) by purchase for a consideration and on terms to be established in
such manner, other than by agreement, as the Corporation and the
owner thereof may agree on; or
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(c) by expropriation in the manner provided in section 10.
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10. (1) The Corporation may, for the purpose of exercising the power
conferred on it by paragraph 9(2)(c),
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(a) deposit in the office of the Registrar of Deeds for the registration
district of the County of Cape Breton in the Province of Nova Scotia
a plan of the lands or any part thereof that the Corporation is
empowered to acquire pursuant to section 9; and
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(b) register with the Registrar General of Canada an inventory of the
personal property or any part thereof that the Corporation is
empowered to acquire pursuant to that section.
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(2) On publication in the Canada Gazette of a notice that the plan
described in paragraph (1)(a) and the inventory described in paragraph
(1)(b) have been respectively deposited and registered in the manner
provided in those paragraphs,
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(a) all interests, other than of Her Majesty in right of Nova Scotia, in
the lands on the Island of Cape Breton in the Province of Nova Scotia
depicted on the plan as being taken by the Corporation,
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(b) all interests of the companies in lands located under waters
adjacent to the Island of Cape Breton depicted on the plan as being
taken by the Corporation, and
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(c) all rights, other than those of Her Majesty in right of Nova Scotia,
in the personal property described in the inventory,
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shall vest in the Corporation, free from any and all encumbrances, by
virtue of this Act and without further assurance.
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(3) A plan deposited in accordance with paragraph (1)(a) and an
inventory registered in accordance with paragraph (1)(b) shall be
signed by the President and a copy of the plan and the inventory shall,
not later than the day of publication in accordance with subsection (2)
of notice of the deposit and registration, be sent by registered mail
addressed to Dominion Steel and Coal Corporation, Limited at its head
office address as then known to the Corporation.
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11. (1) For the purposes of this Act, the definition ``land'' in the
Expropriation Act shall be deemed to include personal property as
though personal property were an interest in land and, except as
otherwise provided in this Act, all the provisions of the Expropriation
Act are, with such modifications as the circumstances require,
applicable to the taking or abandonment by the Corporation of any
property taken in the manner provided in section 10.
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(2) All claims against the Corporation for compensation for property
taken in the manner provided in section 10 shall be heard and
determined in the Federal Court.
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(3) The compensation money, if any, payable for property taken in
the manner provided in section 10 shall be allocated in the first instance
among the persons, other than the companies and any corporations
associated with the companies within the meaning of the Income Tax
Act, having a claim to that money by virtue of section 25 of the
Expropriation Act, and in the second instance and to the extent of the
balance, if any then remaining, among the companies and any
associated corporations having such a claim, and subject to subsection
12(3) any payment of that money pursuant to paragraph 19(1)(b) shall
be made accordingly.
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12. (1) The amount of the consideration or compensation payable for
property, other than stocks of coal, acquired pursuant to section 9,
whether in the manner provided in section 10 or otherwise, shall be
established or determined as the fair market value, if any, of that
property without any allowances in addition thereto whatever, and in
determining that value,
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(a) it shall be assumed that all subsidies, subventions and other
financial assistance provided under the authority of Parliament
directly or indirectly to or for the benefit of the companies or for
which under that authority the companies were eligible prior to the
day the property was so acquired, were terminated on June 15, 1967
and thereafter remained terminated absolutely; and
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(b) any enhancement in value of the property that is attributable in
whole or in part to the use of machinery or equipment leased to the
companies by the Dominion Coal Board after April 1, 1967 shall not
be taken into consideration.
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(2) Stocks of coal, if any, acquired by the Corporation shall be valued
at the cost thereof to the companies.
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(3) There shall be deducted from the amount of the consideration or
compensation, if any, payable to the companies and any corporations
associated with the companies within the meaning of the Income Tax
Act for property acquired pursuant to section 9, whether in the manner
provided in section 10 or otherwise, the outstanding balance of
principal moneys, together with accrued interest thereon, owing to Her
Majesty pursuant to an agreement dated March 14, 1950 made between
Dominion Coal Company, Limited and His Majesty the King in right of
Canada, as amended.
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13. No consideration or compensation is payable for any tangible
personal property acquired pursuant to section 9, whether in the manner
provided in section 10 or otherwise, unless the person claiming to be
entitled thereto establishes that actual physical possession of the
property has been delivered to the Corporation.
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14. Any person or persons designated in writing by the President
shall have free and unimpeded access at all times to each and every part
of the works and undertakings of the companies and, without limiting
the generality of the foregoing, may survey and take levels of the
property of the companies and inspect all books, minutes, reports,
documents, records, inventories, chattels, papers, things and properties
of the companies, and all reasonable aid and assistance shall, on request,
be rendered to any such person or persons by the boards of directors,
officers and employees of the companies, including aid and assistance
in the making and giving of extracts, copies and statements.
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Clause 12: The headings before section 15 and
sections 15 to 17 read as follows:
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15. The objects of the Corporation in relation to the Coal Division are
to reorganize and rehabilitate the coal mining and related works and
undertakings that were operated or carried on by the companies on Cape
Breton Island prior to the acquisition of property by the Corporation
pursuant to section 9 and to conduct coal mining and related operations
in the Sydney coal-field on a basis that is consistent with efficient
mining practice and good mine safety and with the overall plan, or any
modification thereof, submitted by the Corporation pursuant to section
17.
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16. In carrying out its objects in relation to the Coal Division, the
Corporation may
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(a) by agreement with any party to a contract for the sale or delivery
of coal by or on behalf of Dominion Coal Company, Limited that was
in force at the time of acquisition of property by the Corporation
pursuant to section 9, assume all rights and obligations of Dominion
Coal Company, Limited under the contract;
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(b) rehabilitate, improve, open, operate and maintain any coal mines
or related fixtures, machinery, equipment or property of any other
nature acquired by the Corporation;
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(c) enter into contracts with any person or persons within or outside
Canada or with Her Majesty in right of Canada or any province or
any agent of Her Majesty in right of Canada or any province relating
to the production of coal by the Corporation or to the marketing and
shipping of coal acquired by or produced by the Corporation; and
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(d) do all such other things as the Corporation deems incidental or
conducive to the attainment of its objects in relation to the Coal
Division.
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17. (1) The Corporation shall, not later than October 1, 1968, submit
to the Minister for the approval of the Governor in Council an overall
plan for the conduct of coal mining and related operations by the
Corporation in an efficient manner and for the progressive reduction of
coal production by the Corporation and discontinuation of coal
production from mines that are not economically viable, and the plan
shall take into account progress in providing employment outside the
coal producing industry and in broadening the base of the economy of
Cape Breton Island.
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(2) Any material modification of the plan referred to in subsection
(1) that the Corporation considers desirable or expedient shall be
submitted to the Minister for the approval of the Governor in Council.
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(3) A copy of the plan and of any material modification thereof
prepared by the Corporation pursuant to this section shall be presented
by the Corporation to the Lieutenant Governor in Council of Nova
Scotia.
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(4) Before closing or substantially reducing the production of coal
from any coal mine operated by it, the Corporation shall ensure that
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(a) the closing or substantial reduction in production is in accor
dance with and at a time provided for in the overall plan or any
modification thereof submitted pursuant to this section; and
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(b) all reasonable measures have been adopted by the Corporation,
either alone or in conjunction with the Government of Canada or of
Nova Scotia or any agency of either of those governments, to reduce
as far as possible any unemployment or economic hardship that can
be expected to result from the closing or reduction in production.
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Clause 13: Sections 18 to 21 read as follows:
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18. (1) The Corporation shall by by-law provide
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(a) for the establishment, management and administration of
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(i) pension arrangements for the benefit of persons, and
dependants of persons, employed by the Corporation in
connection with the coal mining and related works and
undertakings operated or carried on by the Corporation, and
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(ii) pension arrangements for the benefit of persons, and
dependants of persons, formerly employed by the companies in
connection with the coal mining and related works and
undertakings formerly operated or carried on by the companies,
if those persons were, prior to the acquisition of property by the
Corporation pursuant to section 9, in receipt of a periodic
payment from the companies or Her Majesty in right of Nova
Scotia in recognition of their former employment in connection
with those works and undertakings;
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(b) for the contributions thereto to be made by the Corporation out
of moneys administered by the Corporation for the operation of the
Coal Division; and
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(c) for the investment of any pension fund moneys thereof.
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(2) A by-law made pursuant to subsection (1) shall provide for the
payment of an immediate lump sum or other benefit to a person
described in that subsection who is or was laid off or retired at an age
that is earlier than the normal retirement age provided for by the by-law
if the lay-off or retirement resulted from the reorganization and
rehabilitation by the Corporation of the coal mining and related works
and undertakings referred to in section 15 or from the conduct of coal
mining and related operations by the Corporation on a basis that is
consistent with the overall plan, or any modification thereof, submitted
by the Corporation pursuant to section 17.
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(3) No by-law made under this section has any effect unless it has
been approved by the Treasury Board.
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19. (1) The Minister of Finance shall out of the Consolidated
Revenue Fund, on the requisition of the Corporation and the Minister,
cause to be paid to any person entitled thereto
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(a) the amount of any consideration for land or personal property
acquired by the Corporation that is agreed to be payable under any
agreement entered into pursuant to paragraph 9(2)(a) or that is
established to be payable in a manner agreed on by the Corporation
and the owner of the land or personal property pursuant to paragraph
9(2)(b); or
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(b) the amount of any compensation for land or personal property
taken in the manner provided in section 10, and where the amount
of the compensation is fixed by a judgment pursuant to this Act, the
amount of any costs awarded to that person.
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(2) The Minister of Finance shall out of the Consolidated Revenue
Fund, on the requisition of the Corporation and the Minister, in
accordance with approved budgets of the Corporation, cause to be paid
to the Corporation from time to time as required by it amounts not
exceeding in the aggregate twenty-five million dollars for the purposes
of reorganizing and rehabilitating the coal mining and related works and
undertakings referred to in section 15 and for preparatory work in
connection with the conduct by the Corporation of coal mining and
related operations.
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(3) The Minister of Finance may, out of the Consolidated Revenue
Fund, on the requisition of the Corporation and the Minister, authorize
advances from time to time to the Corporation, on such terms as may be
agreed on, for working capital for the Coal Division, but the total
amount of advances outstanding at any time under this subsection shall
not exceed fifty million dollars or such other amount as may be
established by an appropriation Act or other Act of Parliament.
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20. (1) The Corporation shall maintain in the name of Cape Breton
Development Corporation, Coal Division, one or more accounts in the
Bank of Canada or in one or more banks designated by the Minister of
Finance.
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(2) All moneys received by the Corporation through the conduct of
the operations of the Coal Division or otherwise on behalf of or to the
credit of the Coal Division shall be deposited to the credit of the
accounts established pursuant to subsection (1) and shall be
administered and expended by the Corporation exclusively in the
exercise of the powers and performance of the duties and functions of
the Corporation in relation to the Coal Division.
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(3) The Corporation may invest any moneys administered by it
pursuant to this section in obligations of or guaranteed by the
Government of Canada.
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(4) The Corporation shall, in relation to the operations of the Coal
Division, keep proper books of account and records related thereto.
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(5) The Corporation shall prepare separate financial statements in
relation to the operations of the Coal Division.
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21. If the Corporation is required to submit an operating budget or
capital budget pursuant to section 123 or 124 of the Financial
Administration Act, it shall prepare that budget separately in relation to
the Coal Division.
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Clause 14: Sections 26 and 27 read as follows:
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26. (1) If the Corporation is required to submit an operating budget
or capital budget pursuant to section 123 or 124 of the Financial
Administration Act, it shall prepare that budget separately in relation to
the Industrial Development Division.
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(2) [Repealed]
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27. The head office of the Corporation shall be at Sydney, Nova
Scotia, but meetings of the Board may be held in such other places in
Canada as the directors may decide.
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Clause 15: The relevant portion of section 28 reads as
follows:
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28. The Board may make by-laws
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(e) respecting the establishment, management and administration of
a pension fund for the President, the officers and employees of the
Corporation and dependants of those persons, other than those for
whom provision is made by any by-law made pursuant to section 18,
the contributions thereto to be made by the Corporation and the
investment of the pension fund moneys thereof; and
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Clause 16: Subsection 30(1) reads as follows:
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30. (1) Persons employed by the Corporation pursuant to subsection
8(3) are not officers or servants of Her Majesty.
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Clause 17: Sections 33 to 35 read as follows:
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33. (1) The Corporation shall submit a copy of each annual report of
the Corporation prepared in accordance with section 150 of the
Financial Administration Act to the Lieutenant Governor in Council of
Nova Scotia.
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(2) [Repealed]
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34. The Corporation shall wind up its affairs and dispose of its assets
and liabilities within such time after the discontinuation of coal
production by the Corporation from mines that are not economically
viable in accordance with the overall plan or any modification thereof
submitted pursuant to section 17 and in such manner and subject to such
conditions as the Governor in Council, after consultation with the
Lieutenant Governor in Council of Nova Scotia, may prescribe.
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35. The works and undertakings operated or carried on by the
companies on or after June 15, 1967, located on the Island of Cape
Breton in the Province of Nova Scotia or under waters adjacent to the
Island, other than the line of railway operated by the companies
between Broughton Junction and Louisburg, are hereby declared to be
works for the general advantage of Canada.
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