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Bill S-2

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SUMMARY

This enactment consolidates certain rules of Canadian maritime law governing the civil liability of shipowners for loss of life, personal injuries and damage to property.

Part 1 modernizes and extends the scope of the fatal accidents regime formerly in the Canada Shipping Act. Part 2 settles the rules for the apportionment of liability among parties at fault.

Part 3 continues in force in Canada an international convention governing the limitation of liablity for maritime claims together with certain statutory provisions. Part 4 implements the regime of shipown ers' liability to passengers set out in another international convention.

Part 5 re-enacts and revises the provisions of the Carriage of Goods by Water Act respecting the application of the Hague-Visby Rules in Canada and the eventual implementation of the Hamburg Rules. Part 6 continues the existing regime governing liability and compensation for maritime oil pollution.

Part 7 validates certain by-laws relating to harbour dues tariffs and certain regulations relating to pilotage tariffs.

EXPLANATORY NOTES

Arctic Waters Pollution Prevention Act

Clause 109: Section 2.1 reads as follows:

2.1 Where there is an inconsistency between the provisions of this Act, or any regulation made under this Act, and Part XVI of the Canada Shipping Act, the provisions of Part XVI of the Canada Shipping Act prevail to the extent of the inconsistency.

Canada-Newfoundland Atlantic Accord Implementation Act

Clause 110: Subsection 160(1) reads as follows:

160. (1) In sections 161 to 165, ``spill'' means a discharge, emission or escape of petroleum, other than one that is authorized pursuant to the regulations or any other federal law or that constitutes a discharge from a ship to which Part XV or XVI of the Canada Shipping Act applies.

Canada-Nova Scotia Offshore Petroleum Resources Accord Imple mentation Act

Clause 111: Subsection 165(1) reads as follows:

165. (1) In sections 166 to 170, ``spill'' means a discharge, emission or escape of petroleum, other than one that is authorized pursuant to the regulations or any other federal law or that constitutes a discharge from a ship to which Part XV or XVI of the Canada Shipping Act applies.

Canadian Environmental Protection Act, 1999

Clause 112: Subsection 42(3) reads as follows:

(3) No claim for damage caused by a ship may be made under this Act to the extent that a claim for that damage may be made under the Canada Shipping Act or the Arctic Waters Pollution Prevention Act.

Crown Liability and Proceedings Act

Clause 113: Section 6 reads as follows:

6. (1) Subject to subsection (2), sections 572 and 574 to 582 of the Canada Shipping Act apply for the purpose of limiting the liability of, and certain time periods respecting proceedings against, the Crown in respect of Crown ships.

(2) Where, for the purposes of any proceedings under this Act, it is necessary to ascertain the tonnage of a ship that has no register tonnage within the meaning of the Canada Shipping Act, the tonnage of the ship shall be ascertained in accordance with section 94 of that Act.

Clause 114: Subsection 7(2) reads as follows:

(2) Sections 565 to 567 of the Canada Shipping Act apply in respect of Crown ships as they apply in the case of other ships.

Federal Court Act

Clause 115: The definition ``ship'' in subsection 2(1) reads as follows:

``ship'' means a ship as defined in section 673 of the Canada Shipping Act;

Merchant Seamen Compensation Act

Clause 116: Subsection 42(3) reads as follows:

(3) Any sum payable by way of compensation by the owner of a ship under this Act shall be paid in full notwithstanding anything in sections 574 and 575 of the Canada Shipping Act.

Canada Oil and Gas Operations Act

Clause 117: Subsection 24(1) reads as follows:

24. (1) In sections 25 to 28, ``spill'' means a discharge, emission or escape of oil or gas, other than one that is authorized pursuant to the regulations or any other federal law or that constitutes a discharge from a ship to which Part XV or XVI of the Canada Shipping Act applies.

Canada Shipping Act

Clause 118: Sections 565 to 567 read as follows:

565. (1) Where, by the fault of two or more vessels, damage or loss is caused to one or more of those vessels, to their cargoes or freight or to any property on board, the liability to make good the damage or loss shall be in proportion to the degree in which each vessel was at fault.

(2) Where, having regard to all the circumstances of the case, it is not possible to establish different degrees of fault, the liability shall be apportioned equally.

(3) Nothing in this section operates to render any vessel liable for any loss or damage to which its fault has not contributed.

(4) [Repealed, 1998, c. 6, s. 1]

(5) For the purpose of this Act, the expression ``freight'' includes passage money and hire, and a reference to damage or loss caused by the fault of a vessel shall be construed as including references to any salvage or other expenses, consequent on that fault, recoverable at law by way of damages.

566. (1) Where loss of life or personal injuries are suffered by any person on board a vessel owing to the fault of that vessel and of any other vessel or vessels, the liability of the owners of the vessels is joint and several.

(2) Nothing in this section shall be construed as depriving any person of any right of defence on which, independently of this section, he might have relied in an action brought against him by the person injured or by any person or persons entitled to sue in respect of any loss of life, or to affect the right of any person to limit his liability, in cases to which this section relates, in the manner provided by law.

567. (1) Where loss of life or personal injuries are suffered by any person on board a vessel owing to the fault of that vessel and any other vessel or vessels, and a proportion of the damages is recovered against the owners of one of the vessels that exceeds the proportion in which the vessel was at fault, those owners may recover by way of contribution the amount of the excess from the owners of the other vessel or vessels to the extent to which those vessels were respectively at fault, but no amount shall be so recovered that could not, by reason of any statutory or contractual limitation of, or exemption from, liability, or could not for any other reason have been recovered in the first instance as damages by the persons entitled to sue therefor.

(2) In addition to any other remedy provided by law, the person entitled to any contribution under subsection (1) has, for the purpose of recovering it, subject to this Act, the same rights and powers as the persons entitled to sue for damages in the first instance.

Clause 119: Sections 571 and 572 read as follows:

571. Any enactment that confers Admiralty jurisdiction on any court in respect of damage has effect as though references to the damage included references to damages for loss of life or personal injury, and accordingly proceedings in respect of those damages may be brought in rem or in personam.

572. (1) No action is maintainable to enforce any claim or lien against a vessel or its owners in respect of any damage or loss to another vessel, its cargo or freight, or any property on board that vessel, or for damages for loss of life or personal injuries suffered by any person on board that vessel, caused by the fault of the former vessel, whether that vessel is wholly or partly at fault, unless proceedings therein are commenced within two years from the date when the damage or loss or injury was caused.

(2) An action is not maintainable under this Part to enforce any contribution in respect of an overpaid proportion of any damages for loss of life or personal injuries unless proceedings therein are commenced within one year from the date of payment.

(3) Any court having jurisdiction to deal with an action to which this section relates may, in accordance with the rules of court, extend any period described in subsection (1) or (2) to such extent and on such conditions as it thinks fit, and shall, if satisfied that there has not during such period been any reasonable opportunity of arresting the defendant vessel within the jurisdiction of the court, or within the territorial waters of the country to which the plaintiff's ship belongs or in which the plaintiff resides or has his principal place of business, extend any period to an extent sufficient to give that reasonable opportunity.

Clause 120: Section 573 reads as follows:

573. Sections 565 to 572 apply in respect of a vessel to any persons other than the owners responsible for the fault of the vessel as though the expression ``owners'' included those persons, and in any case where, by virtue of any charter or demise, or for any other reason, the owners are not responsible for the navigation and management of the vessel, those sections shall be read as though for references to the owners there were substituted references to the charterers or other persons for the time being so responsible.

Clause 121: The heading before section 574 and sections 574 to 577 read as follows:

Limitation of Liability for Maritime Claims

574. The definitions in this section apply in this section and in sections 575 to 583.

``Convention'' means the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at London on November 19, 1976, as amended by the Protocol. Articles 1 to 15 of the Convention are set out in Part I of Schedule VI and Article 18 of the Convention is set out in Part II of that Schedule.

``Protocol'' means the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976, concluded at Lon don on May 2, 1996. Articles 8 and 9 of the Protocol are set out in Part II of Schedule VI.

575. (1) Articles 1 to 6 and 8 to 15 of the Convention have the force of law in Canada.

(2) Article 7 of the Convention has the force of law in Canada on the coming into force of section 578.

(3) In the event of any inconsistency between sections 576 to 583 and Articles 1 to 15 of the Convention, those sections prevail to the extent of the inconsistency.

576. (1) For the purposes of this section and sections 574, 575 and 577 to 583, the expression ``carriage by sea'' in paragraph 1(b) of Article 2 of the Convention means ``carriage by water''.

(2) For the purposes of Part I of Schedule VI, Canada is a State Party to the Convention.

(3) The definitions in this subsection apply in this section, sections 577 to 583 and Schedule VI.

``ship'' means any vessel or craft designed, used or capable of being used solely or partly for navigation, without regard to method or lack of propulsion, and includes

      (a) a ship in the process of construction from the time that it is capable of floating; and

      (b) a ship that has been stranded, wrecked or sunk and any part of a ship that has broken up.

    It does not include an air cushion vehicle or a floating platform constructed for the purpose of exploring or exploiting the natural resources or the subsoil of the sea-bed.

``shipowner'' means an owner, charterer, manager or operator of a ship, whether seagoing or not, and includes any other person having an in terest in or possession of a ship from and including the launching of it.

577. (1) The maximum liability of a shipowner for claims arising on any distinct occasion involving a ship with a tonnage of less than 300 tons, other than claims mentioned in section 578, is

    (a) in respect of claims for loss of life or personal injury, $1,000,000; and

    (b) in respect of any other claims, $500,000.

(2) For the purposes of subsection (1), a ship's tonnage is the gross tonnage calculated in accordance with the tonnage measurement rules contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969, concluded at London on June 23, 1969, including any amendments, whenever made, to the Annexes or Appendix to that Convention.

(3) Until the coming into force of section 578,

    (a) subsection (1) shall be read without reference to the expression ``other than claims mentioned in section 578''; and

    (b) Article 6 of the Convention shall be read without reference to the expression ``other than those mentioned in article 7''.

Clause 122: Section 578 reads as follows:

578. (1) The maximum liability of a shipowner for claims arising on any distinct occasion for loss of life or personal injury to passengers of a ship for which no certificate is required under Part V is the greater of

    (a) two million units of account, and

    (b) the number of units of account calculated by multiplying 175,000 units of account by the number of passengers on board the ship.

(2) Notwithstanding Article 6 of the Convention, the maximum liability of a shipowner for claims arising on any distinct occasion for loss of life or personal injury to persons on a ship for which a certificate is required under Part V, where those persons are not carried under a contract of passenger carriage, is 175,000 units of account multiplied by the number of passengers the ship is authorized to carry according to the ship's certificate.

(3) Subsection (2) does not apply in respect of liablity to a person who is the master of the ship, a member of the crew of the ship or any other person employed or engaged in any capacity on board the ship on the business of the ship.

(4) In subsection (1), ``passenger'' means a person carried on a ship in the circumstances set out in paragraphs 2(a) and (b) of Article 7 of the Convention.

(5) In subsections (1) and (2), ``unit of account'' means a special drawing right issued by the International Monetary Fund.

(6) For the purposes of subsections (1) and (2), the conversion of units of account into the national currency is made in accordance with paragraph 1 of Article 8 of the Convention.

Clause 123: Sections 579 to 583 read as follows:

579. (1) On the recommendation of the Minister, the Governor in Council may, by order, declare that any amendments to the limits specified in paragraph 1 of Article 6 or 7 of the Convention made in accordance with Article 8 of the Protocol have the force of law in Canada.

(2) On the recommendation of the Minister, the Governor in Council may, by order, amend the limits of liability set out in sections 577, 578 and 583.

580. (1) The Admiralty Court has exclusive jurisdiction with respect to any matter in relation to the constitution and distribution of a limitation fund pursuant to Articles 11 to 13 of the Convention.

(2) Any person against whom any liability that is limited by section 577, 578 or 583 or paragraph 1 of Article 6 or 7 of the Convention is alleged or apprehended may assert their right to limitation of liability in a defence filed, or by way of action or counterclaim for declaratory relief, in any court of competent jurisdiction in Canada.

581. (1) Where a claim is made or apprehended against a person in respect of a liability that is limited by section 577 or 578 or paragraph 1 of Article 6 or 7 of the Convention, the Admiralty Court, on application by that person or any other interested person, including a person who is a party to proceedings in relation to the same subject-matter in any other court, tribunal or other authority, may take any steps it considers appropriate, including, without limiting the generality of the foregoing,

    (a) determining the amount of the liability and providing for the constitution and distribution of a fund pursuant to Articles 11 and 12, respectively, of the Convention, in relation to the liability;

    (b) proceeding in such manner as to make interested persons parties to the proceedings, excluding any claimants who do not make a claim within a certain time and requiring security from the person claiming limitation of liability or other interested person and the payment of any costs, as the court considers appropriate; and

    (c) enjoining any person from commencing or continuing proceed ings before any court, tribunal or other authority other than the Admiralty Court in relation to the same subject-matter.

(2) In providing for the distribution of a fund under paragraph (1)(a) in relation to a liability, the Admiralty Court, having regard to any claim that may subsequently be established before a court, tribunal or other authority outside Canada in respect of that liability, may postpone the distribution of any part of the fund that it considers appropriate.

(3) No lien or other right in respect of a ship or other property affects the proportions in which a fund is distributed by the Admiralty Court.

(4) The Admiralty Court may

    (a) make any rule of procedure it considers appropriate with respect to proceedings before it under this section; and

    (b) determine what form of guarantee it considers to be adequate for the purposes of paragraph 2 of Article 11 of the Convention.

(5) For the purposes of Article 11 of the Convention, interest is payable at the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpay ments of tax under that Act in effect from time to time.

582. (1) Where a ship or other property is released pursuant to paragraph 2 of Article 13 of the Convention, the person who applies for the release is deemed, in any case other than a case in which a fund has been constituted in a place described in paragraphs 2(a) to (d) of that Article, to have submitted to the jurisdiction of the court that ordered the release for the purpose of determining the claim.

(2) In considering whether to release a ship or other property referred to in subsection (1), the court shall not have regard to a limitation fund that is constituted in a country other than Canada unless the court is satisfied that the country is a state that is a party to the Convention.

583. (1) The maximum liability of an owner of a dock, canal or port for a claim arising on any distinct occasion for any loss or damage caused to a ship or ships, or to any goods, merchandise or other things whatsoever on board a ship or ships is the greater of

    (a) $2,000,000, and

    (b) the amount calculated by multiplying $1,000 by the number of tons of the tonnage of the largest ship that, at the time of the loss or damage, is, or, within a period of five years before that time, had been, within the area of that dock, canal or port over which the owner had control or management.

(2) For the purposes of subsection (1), a ship's tonnage is the gross tonnage calculated in the manner set out in subsection 577(2).

(3) This section does not apply if it is proved that the loss or damage resulted from the personal act or omission of the owner committed with intent to cause the loss or damage or recklessly and with knowledge that the loss or damage would probably result.

(4) This section applies to any person for whose act or omission the owner is responsible.

(5) For the purposes of this section,

    (a) ``dock'' includes wet docks and basins, tidal-docks and basins, locks, cuts, entrances, dry docks, graving docks, gridirons, slips, quays, wharfs, piers, stages, landing places, jetties and synchrolifts; and

    (b) ``owner of a dock, canal or port'' includes any person or authority having the control or management of any dock, canal or port, and any ship repairer using the dock, canal or port, as the case may be.

Clause 124: Section 586 reads as follows:

586. Subject to the Carriage of Goods by Water Act, carriers by water are responsible not only for goods received on board their vessels but also for goods delivered to them for conveyance by their vessels, and are bound to use due care and diligence in the safe-keeping and punctual conveyance of those goods.

Clause 125: Part XIV reads as follows:

PART XIV

FATAL ACCIDENTS

645. In this Part,

``child'' includes a son, daughter, grandson, grand-daughter, stepson, stepdaughter, adopted child and a person to whom a deceased person stood in loco parentis;

``dependants'' means the wife, husband, parents and children of a de ceased person;

``parent'' includes a father, mother, grandfather, grandmother, stepfa ther, stepmother, a person who adopted a child, and a person who stood in loco parentis to a deceased person.

646. Where the death of a person has been caused by a wrongful act, neglect or default that, if death had not ensued, would have entitled the person injured to maintain an action in the Admiralty Court and recover damages in respect thereof, the dependants of the deceased may, notwithstanding his death, and although the death was caused under circumstances amounting in law to culpable homicide, maintain an action for damages in the Admiralty Court against the same defendants against whom the deceased would have been entitled to maintain an action in the Admiralty Court in respect of the wrongful act, neglect or default if death had not ensued.

647. (1) Every action under this Part shall be for the benefit of the dependants of a deceased person, and except as provided in this Part shall be brought by and in the name of the executor or administrator of the deceased.

(2) In every action described in subsection (1), damages may be awarded as are proportioned to the injury resulting from the death to the dependants respectively for whom and for whose benefit the action is brought, and the amount so recovered, after deducting the costs not recovered from the defendant, shall be divided among the dependants in such shares as may be determined at the trial.

(3) In assessing the damages in any action there shall not be taken into account any sum paid or payable on the death of the deceased or any future premiums payable under any contract of assurance or insurance.

648. A defendant may pay into Court one sum of money as compensation for the wrongful act, neglect or default, to all persons entitled to compensation without specifying the shares into which it is to be divided.

649. Not more than one action lies for and in respect of the same subject-matter of complaint, and every action must be commenced not later than two years after the death of a deceased.

650. (1) A plaintiff in an action shall, in his statement of claim, set forth the persons for whom and on whose behalf the action is brought.

(2) There shall be filed with the statement of claim an affidavit by the plaintiff in which he shall state that to the best of his knowledge, information and belief the persons on whose behalf the action is brought as set forth in the statement of claim are the only persons entitled or who claim to be entitled to the benefit thereof.

(3) The Admiralty Court or a judge thereof, if of opinion that there is a sufficient reason for doing so, may dispense with the filing of the affidavit.

651. (1) When there is no executor or administrator of a deceased person, or there being an executor or administrator, no action referred to in section 650 is, within six months after the death of the deceased, brought by the executor or administrator, the action may be brought by all or any of the persons for whose benefit the action would have been if it had been brought by the executor or administrator.

(2) Every action brought shall be for the benefit of the same persons, and shall be subject to the same regulations and procedure, as nearly as may be, as if it were brought by an executor or administrator.

652. (1) Where compensation has not been otherwise apportioned, the Court may apportion it among the persons entitled.

(2) The Court may in its discretion postpone the distribution of money to which infants are entitled and may direct the payment from the undivided fund.

653. Where actions are brought by or for the benefit of two or more persons claiming to be entitled, as wife, husband, parent or child of a deceased person, the Court may make such order as it may deem just for the determination not only of the question of the liability of the defendant but of all questions respecting the persons entitled under this Act to the damages, if any, that may be recovered.

Clause 126: The heading before section 677 and sections 677 and 677.1 read as follows:

Civil Liability for Pollution

677. (1) Subject to this Part, the owner of a ship is liable

    (a) for oil pollution damage from the ship;

    (b) for costs and expenses incurred by

      (i) the Minister of Fisheries and Oceans,

      (ii) a response organization to whom a certificate of designation has been issued pursuant to subsection 660.4(1),

      (iii) any other person in Canada, or

      (iv) any person in a state, other than Canada, that is a party to the Civil Liability Convention,

    in respect of measures taken to prevent, repair, remedy or minimize oil pollution damage from the ship, including measures taken in anticipation of a discharge of oil from the ship, to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by such measures; and

    (c) for costs and expenses incurred

      (i) by the Minister of Fisheries and Oceans in respect of measures taken pursuant to paragraph 678(1)(a), in respect of any monitoring pursuant to paragraph 678(1)(b), or in relation to the direction of the taking of measures or their prohibition pursuant to paragraph 678(1)(c), or

      (ii) by any other person in respect of measures the person was directed to take or prohibited from taking pursuant to paragraph 678(1)(c),

    to the extent that the measures taken and the costs and expenses are reasonable, and for any loss or damage caused by such measures.

(2) Where oil pollution damage from a ship results in impairment to the environment, the owner of the ship is liable for the costs of reasonable measures of reinstatement actually undertaken or to be undertaken.

(3) The owner's liability under subsection (1) does not depend on proof of fault or negligence, but the owner is not liable under that subsection if he establishes that the occurrence

    (a) resulted from an act of war, hostilities, civil war or insurrection or from a natural phenomenon of an exceptional, inevitable and irresistible character;

    (b) was wholly caused by an act or omission of a third party with intent to cause damage; or

    (c) was wholly caused by the negligence or other wrongful act of any government or other authority responsible for the maintenance of lights or other navigational aids, in the exercise of that function.

(4) Where the owner of a ship who is liable under subsection (1) establishes that the occurrence resulted wholly or partially

    (a) from an act or omission done by the person who suffered the damage with intent to cause damage, or

    (b) from the negligence of that person,

(5) Nothing in this Part shall be construed as limiting or restricting any right of recourse that the owner of a ship who is liable under subsection (1) may have against any other person.

(6) Costs and expenses incurred by the owner of a ship in respect of measures voluntarily taken by him to prevent, repair, remedy or minimize oil pollution damage from the ship, including measures taken in anticipation of a discharge of oil from the ship, to the extent that the measures taken and the costs and expenses are reasonable, rank equally with other claims against any security given by that ship owner in respect of his liability under this section.

(7) Subject to sections 679 and 683, all claims pursuant to this Part may be sued for and recovered in the Admiralty Court.

(8) Subject to subsection (9), the jurisdiction conferred on the Admiralty Court by subsection (7) may be exercised in rem against the ship that is the subject of the claim, or against any proceeds of sale thereof that have been paid into court.

(9) No action in rem may be commenced in Canada against

    (a) any warship, coast guard ship or police vessel;

    (b) any ship owned or operated by Canada or a province, or any cargo carried thereon, where such ship is engaged on government service; or

    (c) any ship owned or operated by a state other than Canada, or any cargo carried thereon, with respect to any claim where, at the time the claim arose or the action is commenced, such ship was being used exclusively for non-commercial governmental purposes.

(10) No action in respect of a matter referred to in subsection (1) lies unless it is commenced

    (a) where pollution damage occurred, before the earlier of

      (i) three years after the day on which the pollution damage occurred, and

      (ii) six years after the occurrence that caused the pollution damage or, where the pollution damage was caused by more than one occurrence having the same origin, within six years after the first of the occurrences; or

    (b) where no pollution damage occurred, within six years after the occurrence.

(11) Where there is an occurrence that gives rise to liability of an owner of a ship under subsection (1), the Administrator may, either before or after receiving a claim pursuant to section 710, commence an action in rem against the ship that is the subject of the claim, or against any proceeds of sale thereof that have been paid into court, and in any such action the Administrator is, subject to subsection (13), entitled to claim security in an amount not less than the owner's maximum aggregate liability under section 679 or 679.1.

(12) The Administrator may only continue the action referred to in subsection (11) if the Administrator has become subrogated to the rights of the claimant under subsection 711(3).

(13) The Administrator is not entitled to claim security under subsection (11) where

    (a) in the case of a Convention ship, a Convention ship owner's fund has been constituted under section 682; and

    (b) in the case of any other ship, a fund has been constituted under Article 11 of the Limitation of Liability Convention.

677.1 Where there is an occurrence that gives rise to liability of an owner of a ship under subsection 677(1), the owner may claim and recover contribution or indemnity from any other person who in an action is or would be found liable otherwise than by virtue of that subsection for the costs, expenses, loss or damage resulting from the occurrence that gives rise to that liability.

Clause 127: Sections 679 to 723 read as follows:

679. (1) The maximum liability of an owner of a Convention ship under section 677 in respect of an occurrence is

    (a) where the ship has a tonnage that does not exceed 5,000 tons, three million units of account; and

    (b) where the ship has a tonnage that exceeds 5,000 tons, the lesser of

      (i) the aggregate of three million units of account for the first 5,000 tons and 420 units of account for each additional ton, and

      (ii) 59.7 million units of account.

(2) An owner is not entitled to limitation of liability under subsection (1) if it is proved that the actual or anticipated oil pollution damage resulted from the personal act or omission of the owner committed with the intent to cause the oil pollution damage or recklessly and with knowledge that the oil pollution damage would probably result.

(3) For the purposes of subsection (1), a ship's tonnage is the gross tonnage calculated in the manner set out in subsection 577(2).

(4) In paragraphs (1)(a) and (b), ``unit of account'' means a special drawing right issued by the International Monetary Fund.

(5) Where amendments to the limits of liability set out in Article V, paragraph 1, of the Civil Liability Convention have been made in accordance with Article 15 of the Protocol of 1992 concluded at London on November 27, 1992, the Governor in Council may, by order, on the recommendation of the Minister, amend the limits of liability set out in subsection (1) by the same amounts.

679.1 (1) The maximum liability of an owner of a ship other than a Convention ship under section 677 in respect of an occurrence is

    (a) in the case of a ship with a tonnage not exceeding 300 tons, an amount determined in accordance with section 577; and

    (b) in the case of a ship with a tonnage exceeding 300 tons, an amount determined in accordance with Article 6 of the Limitation of Liability Convention.

(2) Sections 574, 575 and 577 to 582 apply for the purposes of subsection (1).

Special Rules for Ships Covered by Civil Liability Convention

680. No action may be commenced in any court in Canada in relation to an occurrence that gives rise to liability of an owner of a Convention ship in respect of matters referred to in subsection 677(1) where

    (a) the occurrence does not result in any oil pollution damage

      (i) on the territory of Canada or in Canadian waters, or

      (ii) in the exclusive economic zone of Canada; and

    (b) no costs, expenses, loss or damage described in paragraph 677(1)(b) or (c) are incurred in respect of actual or anticipated oil pollution damage in either of the areas described in subparagraph (a)(i) or (ii).

681. (1) The owner of a Convention ship is not liable for the matters referred to in subsection 677(1) otherwise than as provided by this Part.

(2) Subject to subsection 677(5) and section 677.1, unless the actual or anticipated oil pollution damage referred to in subsection 677(1) resulted from the personal act or omission of any of the following persons, committed with intent to cause the damage or recklessly and with knowledge that the damage would probably result, that person is not liable for the matters referred to in subsection 677(1):

    (a) any servant or agent of the owner of the Convention ship or any member of the crew of the Convention ship;

    (b) the pilot of the Convention ship or any other person who, without being a member of the crew, performs services for the Convention ship;

    (c) any charterer, manager or operator of the Convention ship;

    (d) any person using the Convention ship to perform salvage operations with the consent of the owner or on the instructions of a competent public authority;

    (e) any person taking measures to prevent oil pollution damage from the Convention ship; or

    (f) any servant or agent of a person referred to in any of paragraphs (c) to (e).

(3) Where two or more owners of Convention ships are liable for costs, expenses, loss or damage referred to in subsection 677(1), the owners of all of those ships are jointly and severally liable, to the extent that the costs, expenses, loss or damage are not reasonably separable.

682. (1) The owner of a Convention ship is not entitled to limit his liability under subsection 679(1) unless he constitutes a fund, in this section referred to as the ``Convention ship owner's fund'', in an amount equal to the limit of his liability under that subsection.

(2) A Convention ship owner's fund may be constituted by

    (a) making a payment into court of the amount described in subsection (1); or

    (b) filing with the court a guarantee or other security satisfactory to the court.

(3) A Convention ship owner's fund shall be distributed among claimants in proportion to the amount of their established claims as determined by the court.

(4) If, prior to the distribution of a Convention ship owner's fund pursuant to subsection (3), the owner of the Convention ship or anyone on his behalf has paid compensation in respect of any matters referred to in subsection 677(1) as a result of the occurrence in question, the person who paid that compensation is subrogated to the rights that the person so compensated would have had under this Part.

(5) Where the owner of a Convention ship or a person who pays compensation on his behalf satisfies the court that, because of a claim that might later be established before a court of a state other than Canada that is not a party to the Civil Liability Convention,

    (a) he may be compelled to pay compensation mentioned in subsection (4) after the distribution of the Convention ship owner's fund, and

    (b) he would enjoy a right of subrogation under subsection (4) if the compensation were paid prior to the distribution of the Convention ship owner's fund,

the court may, if it thinks fit, postpone the distribution of such portion of the Convention ship owner's fund as it deems appropriate, having re gard to the possibility that such a claim might be established.

683. Where the owner of a Convention ship has constituted his Convention ship owner's fund with a court of a state other than Canada that is a party to the Civil Liability Convention, no action may be commenced or continued in any court in Canada in relation to the same occurrence in respect of matters referred to in subsection 677(1).

684. (1) A Convention ship carrying, in bulk as cargo, more than 2,040 tonnes of crude oil, fuel oil, heavy diesel oil, lubricating oil or any other persistent hydrocarbon mineral oil shall not

    (a) enter or leave a port in Canadian waters or in the exclusive economic zone of Canada or arrive at or leave an offshore terminal in Canadian waters or in the exclusive economic zone of Canada, or

    (b) if the Convention ship is registered in Canada, enter or leave a port in any other state, whether or not that state is a party to the Civil Liability Convention, or arrive at or leave an offshore terminal

      (i) in the territorial sea or internal waters of any such state, or

      (ii) in the exclusive economic zone of any such state or, if the state has not established an exclusive economic zone, in an area beyond and adjacent to the territorial sea of that state, and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured

unless a certificate described in Article VII of the Civil Liability Con vention and subsection 685(1), showing that there is in force in respect of that ship a contract of insurance or other security that satisfies the re quirements of that Article, has been issued in respect of that ship.

(2) In relation to a ship owned by a state that is a party to the Civil Liability Convention and being used for commercial purposes, it is a sufficient compliance with subsection (1) if there is in force a certificate issued by the government of that state showing that the ship is owned by that state and that any liability for pollution damage as defined in Article I of that Convention will be met up to the limit stipulated in Article V thereof.

(3) The certificate referred to in subsection (1) or (2) shall be carried on board the Convention ship to which it relates and the master or any other person on board shall forthwith produce it or give details of it at the request of any duly authorized officer of the Government of Canada.

685. (1) The certificate referred to in subsection 684(1)

    (a) must be a certificate issued by the Minister, if the Convention ship is registered in Canada;

    (b) must be a certificate issued by or under the authority of the government of the state of registration, where the Convention ship is registered in a state other than Canada that is a party to the Civil Liability Convention; or

    (c) must be a certificate issued or recognized by the Minister, where the Convention ship is registered in a state other than Canada that is not a party to the Civil Liability Convention.

(2) On an application to the Minister for a certificate referred to in subsection 684(1) in respect of a Convention ship registered in Canada or registered in a state other than Canada that is not a party to the Civil Liability Convention, if the Minister is satisfied that there will be in force in respect of that Convention ship, throughout the period for which the certificate is to be issued, a contract of insurance or other security satisfying the requirements of Article VII of the Civil Liability Convention, the Minister shall, subject to subsection (3) and on payment of a fee fixed by him, issue such a certificate to the owner of that Convention ship.

(3) If the Minister is of the opinion that there is a doubt whether the guarantor will be able to meet his obligations under the contract of insurance or other security referred to in subsection 684(1), or whether the insurance or other security will cover the owner's liability under section 677, the Minister may refuse to issue the certificate referred to in subsection 684(1).

686. A claimant may take action against a guarantor of the owner of a Convention ship in respect of a matter referred to in subsection 677(1) and, in that event,

    (a) the guarantor is entitled to establish the defences affecting the owner's liability set out in subsections 677(3) and (4) and, in addition, may establish as a defence that the occurrence resulted from the wilful misconduct of the owner;

    (b) the guarantor is not entitled to plead as a defence the bankruptcy or winding-up of the owner;

    (c) irrespective of whether the owner is entitled to limitation of liability, the guarantor is entitled to limitation of liability in respect of claims made by virtue of this section to the same amount and in like manner as an owner is entitled to limitation of liability under this Part; and

    (d) where the owner of a Convention ship and his guarantor each applies to the Admiralty Court in accordance with subsection 682(2) to limit his liability, any amount paid into court or filed as a guarantee in pursuance of either application shall be treated as paid or filed also in pursuance of the other application.

Registration of Foreign Judgments

687. In this section and sections 688 to 695,

``foreign judgment'' means a judgment of a court of a state other than Canada that is a party to the Civil Liability Convention in respect of a liability described in Article III of that Convention, resulting from an occurrence after the entry into force of that Convention for Cana da;

``judgment creditor'' means a person in whose favour a foreign judg ment was rendered, and includes that person's executors, adminis trators, successors and assigns;

``judgment debtor'' means a person against whom a foreign judgment was rendered, and includes any person against whom the foreign judgment is enforceable under the law of the state in which it was rendered;

``Rules'' means the rules of the Admiralty Court made under the Feder al Court Act.

688. (1) Where a foreign judgment has been rendered, the judgment creditor may, at any time during which the foreign judgment is enforceable in the state in which it was rendered, apply to the Admiralty Court in accordance with the Rules to have the foreign judgment registered in the Admiralty Court.

(2) On an application made under subsection (1), the Admiralty Court may, subject to subsections (3) and (4) and section 691, order the registration of the foreign judgment if it is satisfied

    (a) that a case for registration has been made; and

    (b) that the foreign judgment is not under appeal and is no longer subject to appeal in the foreign state.

(3) If, pursuant to the Rules, the judgment debtor appears at the hearing of an application made under subsection (1), the Admiralty Court shall not order the registration of the foreign judgment if it is satisfied that

    (a) the foreign judgment has been fully satisfied;

    (b) the foreign court acted without jurisdiction;

    (c) the foreign judgment was obtained by fraud; or

    (d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present his case.

(4) On any application made under subsection (1), if the Admiralty Court is satisfied that the foreign judgment has been partly satisfied, the foreign judgment shall be ordered to be registered only in respect of the balance remaining payable.

689. For the purposes of section 688, a foreign judgment includes any interest, up to the day of registration, that has accrued on the foreign judgment under the law of the state in which that foreign judgment was rendered.

690. Reasonable costs incurred by the judgment creditor related to the registration of the foreign judgment, including the cost of obtaining an exemplification or certified copy thereof from the foreign court, are recoverable in like manner as if they were amounts payable under the foreign judgment, and such costs shall be taxed by a taxing officer of the Admiralty Court and his certificate of taxation endorsed on the order for registration.

691. (1) A foreign judgment expressed in a currency other than Canadian currency cannot be registered pursuant to section 688 until the Admiralty Court has determined the equivalent amount in Canadian currency on the basis of the rate of exchange prevailing on the day on which the foreign judgment was rendered, as ascertained from any bank in Canada, and, for the purpose of making such determination, the Admiralty Court may require the judgment creditor to provide such evidence of the applicable rate of exchange as the Admiralty Court deems necessary.

(2) Where the equivalent amount in Canadian currency has been determined in accordance with subsection (1), the Admiralty Court shall certify on the order for registration the amount so determined, and the foreign judgment, when registered, shall be deemed to be a judgment for payment of the amount so certified.

692. Where a foreign judgment is registered pursuant to section 688, the registered judgment has, as of the date of registration, subject to section 693, the same force and effect as a judgment of the Admiralty Court rendered on that date.

693. Where a foreign judgment is registered pursuant to section 688 after an ex parte hearing, execution of the registered judgment shall not issue until the expiration of thirty days after the judgment debtor has been served with a notice of registration of the foreign judgment, in the form set out in the Rules, in the manner set out in the Rules for the service of originating documents.

694. (1) At any time after a foreign judgment has been registered pursuant to section 688, the judgment debtor may apply to the Admiralty Court, in accordance with the Rules, to have the registration of the judgment set aside on any of the grounds set out in subsection (2).

(2) On an application by a judgment debtor under subsection (1), the Admiralty Court shall set aside the registration of the foreign judgment if it is satisfied that

    (a) the foreign judgment had been fully or partly satisfied;

    (b) the foreign court acted without jurisdiction;

    (c) the foreign judgment was obtained by fraud;

    (d) the defendant in the foreign action was not given reasonable notice and a fair opportunity to present his case;

    (e) the registration of the foreign judgment was obtained by fraud;

    (f) an error was made in the conversion of the foreign judgment to Canadian currency under section 691;

    (g) the registered judgment included interest on the foreign judgment to which the judgment creditor was not entitled; or

    (h) for any other reason the Admiralty Court erred in registering the foreign judgment.

(3) Where the Admiralty Court sets aside the registration of a foreign judgment on the ground that it had been partly satisfied, or on a ground referred to in paragraph (2)(f) or (g), it shall thereupon order the foreign judgment to be registered in the reduced amount.

695. (1) At any time after a foreign judgment has been registered pursuant to section 688, the judgement debtor may apply to the Admiralty Court, in accordance with the Rules, to have the execution of the registered judgment stayed on the grounds that an application to set aside the registration has been made under subsection 694(1), and, where the Admiralty Court is satisfied such an application has been made, it may stay the execution of the judgment either absolutely or for such period and on such terms and conditions as it thinks fit, and may, on further evidence, vary or terminate any such stay of execution.

(2) Execution of a registered judgment shall not be stayed except on the grounds that an application to set aside the registration has been made under subsection 694(1).

International Oil Pollution Compensation Fund

696. For the purposes of the rights and obligations described in this Part, the International Fund has the capacity, rights and obligations of a natural person, and the Director of the International Fund is the legal representative of the International Fund.

697. Where a claimant commences court proceedings against the owner of a Convention ship or his guarantor in respect of a matter referred to in subsection 677(1),

    (a) the document commencing the proceedings shall be served on the International Fund and the International Fund is thereupon a party to the proceedings and has all the rights and obligations of a party to the proceedings; and

    (b) the International Fund may appear and take such action as its Director considers appropriate for the proper administration of the International Fund.

698. In addition to any method of service permitted by the law of the province in which a proceeding referred to in section 697 is com menced, service of documents on the International Fund under paragraph 697(a) may be effected by registered mail.

699. Where there is an occurrence involving a Convention ship, to the extent that a claimant has been unable to obtain full compensation under this Part from the ship owner or his guarantor, the International Fund is, subject to the provisions of the Fund Convention, liable in accordance with Article 4 of that Convention.

700. [Repealed, 1998, c. 6, s. 16]

701. (1) The Administrator shall direct payments to be made out of the Ship-source Oil Pollution Fund to the International Fund in accordance with Articles 10 and 12 of the Fund Convention.

(1.1) The Administrator shall communicate to the Director of the International Fund the information referred to in Article 15 of the Fund Convention in accordance with that Article and is liable for any financial loss to the International Fund as a result of the failure to so communicate.

(1.2) The Administrator may, for the purposes of subsection (1.1), at any reasonable time, enter any premises where the Administrator believes on reasonable grounds that there are any records, books, accounts, vouchers or other documents relating to information referred to in Article 15 of the Fund Convention and

    (a) examine anything on the premises and copy or take away for further examination or copying any record, book, account, voucher or other document that the Administrator believes, on reasonable grounds, contains any such information; and

    (b) require the owner, occupier or person in charge of the premises to give all reasonable assistance in connection with the examination and to answer all proper questions relating to the examination and, for that purpose, require the owner, occupier or person in charge to attend at the premises with the Administrator.

(1.3) No person shall obstruct or hinder the Administrator in the exercise of any powers under subsection (1.2) or knowingly make a false or misleading statement, either orally or in writing, to the Administrator while the Administrator is exercising those powers.

(1.4) Where any premises referred to in subsection (1) is a dwelling-house, the Administrator may not enter that dwelling-house except with the consent of the occupant of the dwelling-house or under the authority of a warrant issued under subsection (1.5).

(1.5) Where on ex parte application a justice of the peace is satisfied by information on oath that

    (a) the conditions for entry described in subsection (1.2) exist in relation to a dwelling-house,

    (b) entry to the dwelling-house is necessary for the purposes of subsection (1.1), and

    (c) entry to the dwelling-house has been refused or there are reasonable grounds to believe that entry will be refused,

the justice of the peace may at any time sign and issue a warrant autho rizing the Administrator to enter the dwelling-house, subject to any con ditions that may be specified in the warrant.

(2) Where two bodies are affiliated with each other within the meaning of section 2 of the Canada Business Corporations Act, they shall be deemed to be ``associated persons'' for the purposes of the definition ``Associated person'' in subparagraph 2(b) of Article 10 of the Fund Convention.

Ship-source Oil Pollution Fund

702. There shall be established in the accounts of Canada an account to be known as the Ship-source Oil Pollution Fund, to which shall be credited

    (a) all payments received under sections 716 and 721,

    (b) interest computed in accordance with section 703, and

    (c) any amounts recovered by the Administrator pursuant to paragraph 711(3)(c),

and to which shall be charged

    (d) all amounts that are directed by the Administrator to be paid pursuant to section 701, paragraph 711(3)(a), paragraph 712(5)(a), subsection 712(9) or pursuant to any settlement,

    (d.1) all amounts for which the Administrator is liable under subsection 701(1.1),

    (e) all interest paid pursuant to section 723,

    (f) all costs and expenses that are directed to be paid pursuant to section 707,

    (g) the remuneration and expenses of assessors that are directed to be paid pursuant to subsection 712(6), and

    (h) the amount of any judgment and any costs awarded against the Ship-source Oil Pollution Fund in any litigation.

703. The Minister of Finance shall, at such times as the Governor in Council directs, credit to the Ship-source Oil Pollution Fund interest at a rate fixed by the Governor in Council on the balance from time to time to the credit of the Ship-source Oil Pollution Fund.

Administrator and Deputy Administrator

704. (1) The Governor in Council shall appoint an Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for such term, not exceeding five years, as is fixed by the Governor in Council.

(2) The Administrator is eligible for re-appointment on the expira tion of his term of office.

705. (1) The Administrator shall not, during his term of office, accept or hold any office, commission or employment or hold, enjoy, undertake or execute any contract or agreement, the effect of which would, under the Parliament of Canada Act, be to make him ineligible as a member of the House of Commons.

(2) Where the Administrator contravenes subsection (1), his appointment as Administrator shall be terminated on a date fixed by the Governor in Council that is not later than thirty days after notice of such contravention is received by the Minister, but no such contravention affects the validity of any act performed by the Administrator on behalf of the Ship-source Oil Pollution Fund between the date of such contravention and the date that his appointment is terminated pursuant to this subsection.

706. The Administrator may, for the purpose of carrying out his duties under this Part, obtain such professional, technical and other advice and assistance as he deems necessary.

707. (1) All costs and expenses incurred by the Administrator in carrying out his duties and functions under this Part and fees for services rendered by him, calculated in accordance with the prescribed tariff, shall, on the direction of the Minister of Finance, be paid out of the Consolidated Revenue Fund and charged to the Ship-source Oil Pollution Fund.

(2) Officers of the Admiralty Court may, at the request of the Minister of Justice, tax any account for costs, expenses or fees submitted by the Administrator to the Minister of Finance as if the Administrator were acting for the Crown in proceedings in the Court, but on any such taxation, no fee may be allowed in excess of that set out in the tariff prescribed pursuant to subsection (1).

708. (1) The Governor in Council may appoint a Deputy Administra tor of the Ship-source Oil Pollution Fund to hold office during good behaviour for such term, not exceeding five years, as is fixed by the Governor in Council.

(2) The Deputy Administrator is eligible for re-appointment on the expiration of his term of office.

(3) In the event that the Administrator is absent or incapacitated or if the office of Administrator is vacant, the Deputy Administrator has all the powers and duties of the Administrator.

(4) Sections 705 and 707 apply to the Deputy Administrator.

Liability of Ship-source Oil Pollution Fund

709. The Ship-source Oil Pollution Fund is, subject to this Part, liable for the matters referred to in subsection 677(1) in relation to oil, where

    (a) all reasonable steps have been taken to recover payment of compensation from the ship owner and, in the case of a Convention ship, from the International Fund and have been unsuccessful;

    (b) the ship owner is not liable by reason of any of the defences described in subsection 677(3) and the International Fund is not liable either;

    (c) the claim exceeds

      (i) in the case of a Convention ship, the owner's maximum liability under this Part to the extent that any such excess is not recoverable from the International Fund, and

      (ii) in the case of any ship other than a Convention ship, the owner's maximum liability under sections 574 to 582;

    (d) the ship owner is financially incapable of meeting his legal obligations under subsection 677(1), to the extent that any such obligation is not recoverable from the International Fund;

    (e) [Repealed, 1998, c. 6, s. 19]

    (f) the cause of the oil pollution damage is unknown and the Administrator has been unable to establish that the occurrence that gave rise to the damage was not caused by a ship; or

    (g) the Administrator is a party to a settlement pursuant to section 713.

Claims under Section 677

710. (1) In addition to any right against the Ship-source Oil Pollution Fund under section 709, a person, other than one described in subparagraphs 677(1)(b)(ii) and (iv), who has suffered loss or damage or incurred costs or expenses referred to in subsection 677(1) in respect of actual or anticipated oil pollution damage may file a claim with the Administrator for the loss, damage, costs or expenses

    (a) where oil pollution damage occurred, within two years after the day on which that damage occurred and five years after the occurrence that caused that damage, or

    (b) where no oil pollution damage occurred, within five years after the occurrence,

subject to the fixing of a shorter period by the Admiralty Court under paragraph 715(a).

(2) On receipt of a claim under subsection (1), the Administrator shall forthwith

    (a) investigate and assess the claim; and

    (b) make an offer of compensation to the claimant for whatever portion of the claim the Administrator finds to be established.

(3) For the purpose of investigating and assessing a claim pursuant to subsection (2), the Administrator has all the powers of a commission er under Part I of the Inquiries Act.

(4) In investigating and assessing a claim pursuant to subsection (2), the Administrator shall concern himself only with

    (a) whether the claim is for matters covered by subsection (1); and

    (b) whether the claim resulted wholly or partially

      (i) from an act or omission done by the claimant with intent to cause damage, or

      (ii) from the negligence of the claimant.

(5) A claimant is not required to satisfy the Administrator that the occurrence was caused by a ship, but the Administrator shall dismiss a claim under subsection (1) if satisfied on the evidence that the occurrence was not caused by a ship.

(6) Where the Administrator is satisfied that a claim under subsection (1) resulted wholly or partially

    (a) from an act or omission done by the claimant with intent to cause damage, or

    (b) from the negligence of the claimant,

the Administrator shall nullify or reduce any amount that he would have otherwise assessed under subsection (2), in proportion to the degree to which he finds that the claim resulted from the factors mentioned in paragraphs (a) and (b).

711. (1) Where the Administrator makes an offer of compensation to a claimant pursuant to subsection 710(2), the claimant shall, within sixty days after receiving the offer, notify the Administrator whether he accepts or refuses it, and, where no notification has been received by the Administrator at the end of that period, the claimant shall be deemed to have refused the Administrator's offer.

(2) A claimant may, within sixty days after

    (a) receiving an offer of compensation from the Administrator pursuant to subsection 710(2), or

    (b) receiving a notification from the Administrator that the Adminis trator has disallowed the claim,

appeal to the Admiralty Court the adequacy of the offer of compensa tion or the disallowance of the claim, as the case may be, and, in the case of an appeal from the disallowance of a claim, the Admiralty Court shall concern itself only with the matters described in paragraphs 710(4)(a) and (b).

(3) Where a claimant accepts an offer of compensation from the Administrator pursuant to subsection 710(2),

    (a) the Administrator shall forthwith direct payment to the claimant, out of the Ship-source Oil Pollution Fund, of the amount of the offer;

    (b) the claimant is thereupon precluded from pursuing any rights that he may have had against any person in respect of matters referred to in subsection 677(1) in relation to the occurrence to which the offer of compensation related; and

    (c) the Administrator is, to the extent of the payment to the claimant, subrogated to any rights of the claimant mentioned in paragraph (b), and the Administrator shall take all reasonable measures to recover the amount of the payment to the claimant from the owner of the ship, the International Fund or any other person liable, and, for that purpose, the Administrator may maintain an action in the name of the Administrator or of the claimant and may enforce any security provided to or enforceable by the claimant, including claims against the Convention ship owner's fund established pursuant to subsec tion 682(1).

Claims for Loss of Income

712. (1) Subject to this section,

    (a) an individual who derives income from

      (i) fishing,

      (ii) the production, breeding, holding or rearing of fish, or

      (iii) the culture or harvesting of marine plants,

    (b) the owner of a fishing vessel who derives income from the rental of fishing vessels to holders of commercial fishing licences issued in Canada,

    (c) an individual who derives income from the handling of fish on shore in Canada directly after the landing thereof from fishing vessels,

    (d) a person who fishes or hunts for food or animal skins for his own consumption or use,

    (e) a person who rents or charters boats in Canada for sport fishing, or

    (f) a worker in a fish plant in Canada, excluding, except in the case of a family-type co-operative operation having a total annual throughput of under 1,400 tonnes or an annual average number of employees of under 50, a person engaged exclusively in supervisory or managerial functions,

who has suffered a loss or will suffer a future loss of income, or of a source of food or animal skins in the case of a person described in para graph (d), resulting from a discharge of oil from a ship and not recover able otherwise under this Part, may, subject to subsection (4), within three years after the time when the discharge of the oil occurred or first occurred, as the case may be, or could reasonably be expected to have become known to the claimant, and within six years after the occurrence that caused the discharge, file a claim with the Administrator for that loss or future loss.

(2) In subsection (1), ``fish'', ``fishing'' and ``fishing vessel'' have the same meaning as in the Fisheries Act.

(3) The right to file a claim under this section is limited to persons who

    (a) were carrying on the activity in question lawfully; and

    (b) except in the case of paragraph (1)(d),

      (i) are Canadian citizens or permanent residents of Canada within the meaning of the Immigration Act, in the case of an individual, or

      (ii) are incorporated by or under the laws of Canada or a province, in the case of a corporation.

(3.1) A claimant is not required to satisfy the Administrator that the occurrence was caused by a ship, but the Administrator shall dismiss a claim if satisfied on the evidence that the occurrence was not caused by a ship.

(4) The period mentioned in subsection (1) for filing a claim under that subsection may be shortened by order of the Admiralty Court under paragraph 715(a).

(5) On receipt of a claim referred to in subsection (1), the Administrator shall

    (a) where he considers such action appropriate for the proper administration of the Ship-source Oil Pollution Fund, direct payment of the amount of the loss alleged in the claim or otherwise agreed on between the Administrator and the claimant; or

    (b) in any other case, transmit the claim to the Minister.

(6) On receipt of a claim from the Administrator pursuant to paragraph (5)(b), the Minister

    (a) shall, after consulting with the Minister of Fisheries and Oceans, the Minister of the Environment and the Administrator, appoint as assessors one or more persons who are not employed in the Public Service as defined in subsection 3(1) of the Public Service Superannuation Act; and

    (b) shall fix the remuneration and expenses to be paid to such person or persons for any period while he or they are so acting, and shall authorize the Administrator to direct payment of the remuneration and expenses.

(7) For the purpose of assessing a loss alleged by a claimant under this section, an assessor or assessors, in this section referred to as the ``assessor'',

    (a) shall, after giving reasonable notice to the Administrator and the claimant, meet with the Administrator and the claimant or their authorized representatives, and

    (b) may receive and consider any written or oral evidence submitted to the assessor by or on behalf of the Administrator or the claimant, whether or not such evidence would be admissible before a court,

and, for the purposes of this subsection, the assessor has all the powers of a commissioner under Part I of the Inquiries Act.

(8) The assessor shall, within sixty days after the date of his appointment or within such longer period as is agreed to by the Minister, report to the Minister whether, in the assessor's opinion, the loss alleged by the claimant

    (a) has been established,

    (b) resulted from the discharge of oil from a ship, and

    (c) is not recoverable otherwise under this Part,

and where the assessor reports that such a loss has been established, that it resulted from the discharge of oil from a ship and that it is not recover able otherwise under this Part, the report shall set out the amount of that loss as assessed by the assessor.

(9) On receipt of a report under subsection (8), the Minister shall forthwith forward a copy thereof to the claimant concerned and to the Administrator, and the Administrator shall thereupon direct payment to the claimant of an amount equal to the amount, if any, of the assessed loss set out in the report.

Where Party Suffering Damage Sues Owner of Ship

713. (1) Where a claimant commences proceedings against the owner of a ship or their guarantor in respect of a matter referred to in subsection 677(1), except in the case of proceedings commenced by the Minister of Fisheries and Oceans under paragraph 677(1)(c) in respect of a pollutant other than oil,

    (a) the document commencing the proceedings shall be served on the Administrator and the Administrator is thereupon a party to the proceedings and has all the rights and obligations of a party to the proceedings; and

    (b) the Administrator shall appear and take such action, including being a party to a settlement either before or after judgment, as he considers appropriate for the proper administration of the Ship- source Oil Pollution Fund.

(2) Where the Administrator is a party to a settlement pursuant to paragraph (1)(b), he shall direct payment to the claimant of the amount that the Administrator has agreed to pay under the settlement.

Limit of Liability of Ship-source Oil Pollution Fund

714. (1) The maximum aggregate liability of the Ship-source Oil Pollution Fund under sections 709, 710 and 712 and under any settlement, in respect of any particular occurrence,

    (a) is one hundred million dollars, where the occurrence takes place in the fiscal year in which this Part comes into force; or

    (b) where the occurrence takes place in any following fiscal year, is an amount calculated in accordance with subsection (2).

(2) The one hundred million dollar limit of liability referred to in paragraph (1)(a) shall be adjusted annually in prescribed manner, so that the limit of liability arising out of any given occurrence that takes place in any following fiscal year is an amount equal to the product obtained by multiplying

    (a) the limit of liability that would have been applicable for that following fiscal year if no adjustment had been made under this section with respect to that following fiscal year

by

    (b) the ratio that the Consumer Price Index, excluding the food and energy components, for the twelve month period ending on December 31 next before that following fiscal year bears to the Consumer Price Index, excluding the food and energy components, for the twelve month period next before that twelve month period.

(3) For the purposes of this section,

    (a) a reference to the ``Consumer Price Index, excluding the food and energy components,'' for any twelve month period means the average of the Consumer Price Index for Canada, excluding the food and energy components, as published by Statistics Canada under the authority of the Statistics Act, for each month in that twelve month period;

    (b) the Governor in Council may make regulations prescribing the manner in which the average of the Consumer Price Index, excluding the food and energy components, for any twelve month period shall be determined and the manner in which any such average that is determined to be a fraction of a whole number shall be expressed;

    (c) where at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis, a corresponding adjustment shall be made in the Consumer Price Index, excluding the food and energy components, for any twelve month period that is used for the purpose of calculating the limit of liability of the Ship-source Oil Pollution Fund under this section; and

    (d) where at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is modified to reflect a new content basis, that modification does not affect the operation of this section.

(4) The Minister shall cause the limit of liability referred to in subsection (1), adjusted in accordance with this section, to be published in the Canada Gazette each year as soon as it is available, and the limit of liability so published is admissible in any proceeding under this Part as conclusive proof of that limit of liability for the fiscal year in question.

Application to Court for Directions

715. Where the Admiralty Court, on the application of the Administrator and on such notice to other interested parties as the Court deems just in the circumstances, is satisfied that, in respect of a particular occurrence, the aggregate liability of the Ship-source Oil Pollution Fund under sections 709, 710 and 712 and subsection 713(2) may exceed its limit of liability under section 714, the Court

    (a) may order the exclusion of any claimants who do not file their claims with the Administrator within such time as the Court directs; and

    (b) may order that payment out of the Ship-source Oil Pollution Fund of established claims be prorated or postponed, or any combination of pro-rating and postponement.

Payments into the Ship-source Oil Pollution Fund

716. (1) If imposed or re-imposed by the Minister under subsection 718(1), there shall be paid to the Receiver General,

    (a) in respect of each tonne of oil in excess of 300 tonnes imported by ship into Canada in bulk as cargo, and

    (b) in respect of each tonne of oil in excess of 300 tonnes shipped from any place in Canada in bulk as cargo,

a levy determined in accordance with section 717, and, for the purposes of this section and sections 717 to 721, ``oil'' means ``Contributing Oil'' as defined in Article 1 paragraph 3 of the Fund Convention.

(2) Amounts payable under subsection (1) shall be paid, or security for payment thereof in an amount and form satisfactory to the Minister shall be given,

    (a) in the case of oil imported by ship into Canada in bulk as a cargo, before the oil is unloaded from the ship; and

    (b) in the case of oil shipped from a place in Canada in bulk as a cargo of a ship, before the ship leaves the facility at which the oil is loaded on board the ship.

(3) All amounts payable under subsection (1) and any interest payable thereon are debts due to Her Majesty and recoverable as such in any court of competent jurisdiction from,

    (a) in the case of oil imported by ship into Canada in bulk as a cargo, the owner, consignee or shipper of the oil; and

    (b) in the case of oil shipped from a place in Canada in bulk as a cargo of a ship, the owner, consignor or shipper of the oil.

717. (1) The levy referred to in subsection 716(1) shall be thirty cents in the fiscal year in which this Part comes into force.

(2) The levy of thirty cents referred to in subsection (1) shall be adjusted annually in prescribed manner, so that the levy in any following fiscal year is an amount equal to the product obtained by multiplying

    (a) the levy that would have been payable in that following fiscal year if no adjustment had been made under this section with respect to that following fiscal year

by

    (b) the ratio that the Consumer Price Index, excluding the food and energy components, for the twelve month period ending on December 31 next before that following fiscal year bears to the Consumer Price Index, excluding the food and energy components, for the twelve month period next before that twelve month period.

(3) For the purposes of this section,

    (a) a reference to the ``Consumer Price Index, excluding the food and energy components,'' for any twelve month period means the average of the Consumer Price Index for Canada, excluding the food and energy components, as published by Statistics Canada under the authority of the Statistics Act, for each month in that twelve month period;

    (b) the Governor in Council may make regulations prescribing the manner in which the average of the Consumer Price Index, excluding the food and energy components, for any twelve month period shall be determined and the manner in which any such average that is determined to be a fraction of a whole number shall be expressed;

    (c) where at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is adjusted to reflect a new time basis, a corresponding adjustment shall be made in the Consumer Price Index, excluding the food and energy components, for any twelve month period that is used for the purpose of calculating the levy under this section; and

    (d) where at any time the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, is modified to reflect a new content basis, that modification does not affect the operation of this section.

(4) The Minister shall cause the levy referred to in subsection 716(1), adjusted in accordance with this section, to be published in the Canada Gazette each year as soon as it is available, and the levy so published is admissible in any proceeding under this Part as conclusive proof of the levy for the fiscal year in question.

718. (1) The Minister, after consultation with the Minister of Fisheries and Oceans and the Minister of the Environment, may from time to time, by order, impose, discontinue or re-impose the levy provided for in section 716.

(2) The non-imposition, discontinuation or re-imposition of the levy pursuant to subsection (1) does not affect the operation of section 717.

719. The Governor in Council may make regulations

    (a) prescribing the manner in which the levy payable under section 716 shall be paid;

    (b) providing for the filing with the Minister of information returns by any of the persons referred to in subsection 716(3) from whom the levy payable under section 716 may be recovered; and

    (c) providing for the filing with the Minister of information returns necessary to enable the Administrator to discharge his obligations under section 701.

720. (1) Every person referred to in subsection 716(3) from whom amounts payable under subsection 716(1) may be recovered shall keep records and books of account at his place of business in Canada, or at such other place in Canada as may be designated by the Minister, indicating

    (a) the amounts that are payable by that person under subsection 716(1);

    (b) the type and quantity of the oil in respect of which the amounts referred to in paragraph (a) are payable;

    (c) the time when and place where the amounts referred to in paragraph (a) were paid or security for payment thereof was given in accordance with subsection 716(2); and

    (d) such other information as the Minister may require to determine the amounts referred to in paragraph (a) and the time when those amounts become payable.

(2) Every person who is required by this section to keep records and books of account shall, unless otherwise authorized by the Minister, retain every such record and book of account and every account or voucher necessary to verify the information contained therein until the expiration of six years from the end of the year to which the record or book of account relates.

(3) Every person who is required by this section to keep records and books of account shall, at all reasonable times, make the records and books of account and every account or voucher necessary to verify the information contained therein available to any person designated in writing by the Minister and give such person every facility necessary to inspect the records, books, accounts and vouchers.

(4) Any person designated in writing by the Minister for the purpose may, at any reasonable time, enter any premises where he believes on reasonable grounds that there are any records, books, accounts, vouchers or other documents relating to payments under subsection 716(1) and

    (a) examine anything on the premises and copy or take away for further examination or copying any record, book, account, voucher or other document that he believes, on reasonable grounds, contains any information relevant to the enforcement of this Part; and

    (b) require the owner, occupier or person in charge of the premises to give him all reasonable assistance in connection with the examination under paragraph (a) and to answer all proper questions relating to the examination and, for that purpose, require the owner, occupier or person in charge of the premises to attend at such premises with him.

(5) Every person designated by the Minister under subsection (4) shall be furnished with a certificate of his designation and, on entering any premises referred to in that subsection, shall, if so requested, produce the certificate to the owner, occupier or person in charge of the premises.

(6) On the conclusion of an examination under this section, the person conducting the examination shall transmit a full report of his findings to the Minister.

(7) The original or a copy of any record, book, account, voucher or other document taken away under paragraph (4)(a) shall be returned to the person from whose custody it was taken within twenty-one days after it was taken or within such longer period as is directed by a judge of a superior court for cause or agreed to by a person who is entitled to its return.

(8) An application to a judge mentioned in subsection (7) for a direction under that subsection shall be made on notice to the person from whose custody the record, book, account, voucher or other document was taken.

(9) A document purporting to be certified by the Minister to be a copy of a record, book, account, voucher or other document made pursuant to paragraph (4)(a) is admissible in evidence in any prosecu tion for an offence under this Act and is, in the absence of evidence to the contrary, proof of the contents thereof.

(10) No person shall obstruct or hinder a person engaged in carrying out his duties and functions under this section, or knowingly make a false or misleading statement, either orally or in writing, to any person so engaged.

721. Where all or any portion of a levy payable under section 716 is not paid as provided in subsection 716(2), interest may be charged on the amount from time to time outstanding, at a rate fixed by the Governor in Council on the recommendation of the Minister of Finance, calculated from the time when the oil on which the levy is payable is unloaded from the ship or from the time when the ship on which the oil was loaded leaves the facility at which it was loaded, as the case may be.

Annual Report

722. (1) The Administrator shall, as soon as possible after the end of each fiscal year, submit to the Minister a report, in such form as the Minister may direct, of his operations as Administrator under this Part for that fiscal year, and the Minister shall cause the report to be laid before Parliament not later than the tenth sitting day of Parliament after he receives it.

(2) For the purposes of subsection (1), ``sitting day of Parliament'' means a day on which either House of Parliament sits.

Interest on Claims

723. (1) Interest accrues on any claim under this Part against a ship owner, the guarantor of a ship owner, the Ship-source Oil Pollution Fund or the International Fund at the rate prescribed under the Income Tax Act for amounts payable by the Minister of National Revenue as refunds of overpayments of tax under that Act in effect from time to time.

(2) Interest referred to in subsection (1) accrues

    (a) where the claim is based on paragraph 677(1)(a), from the day on which the oil pollution damage occurred;

    (b) where the claim is based on paragraph 677(1)(b) or (c),

      (i) in the case of costs and expenses, from the day on which they were incurred, or

      (ii) in the case of loss or damage referred to in either such paragraph, from the day on which the loss or damage occurred; or

    (c) where the claim is for loss of income under section 712, from the time when the loss of income occurred.

Clause 128: Sections 724 to 727 read as follows:

724. (1) Any person who fails to provide evidence of financial responsibility as and when required under subsection 684(3) is guilty of an offence and liable on summary conviction to a fine not exceeding one hundred thousand dollars.

(2) Where a pollution prevention officer, as defined in section 654, has reasonable grounds for believing that an offence under subsection (1) has been committed in respect of a ship, he may make a detention order in respect of that ship, and section 672 applies to such a detention order, with such modifications as the circumstances require.

725. (1) Every person who wilfully, in any manner, evades or attempts to evade payment of any amount payable under section 716 is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

(2) Any person who fails to file an information return, as and when required by any regulation made under paragraph 719(b) or (c), containing substantially the information required to be included therein is guilty of an offence and liable on summary conviction to a fine not exceeding one hundred dollars for each day of default.

(3) Any person who

    (a) fails to keep proper records and books of account in accordance with subsection 720(1), or

    (b) fails to retain any record, book of account, account or voucher required to be retained under subsection 720(2)

is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

(4) Any person who

    (a) knowingly makes any false entry or statement in any record, book of account or other document required to be kept under section 720, or

    (b) knowingly destroys, mutilates or falsifies any record, book of account or other document required to be kept under section 720

is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

(5) Any person who contravenes subsection 720(10) is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

726. Where any person is charged with having committed an offence under this Part, any court in Canada that would have had cognizance of the offence if it had been committed by a person within the limits of its ordinary jurisdiction has jurisdiction to try the offence as if it had been so committed.

Regulations

727. The Governor in Council may make regulations

    (a) prescribing anything that by this Part is to be prescribed; and

    (b) generally for carrying out the purposes and provisions of this Part.

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