Vol. 140, No. 24 — June 17, 2006

Regulations Amending the Safety Management Regulations

Statutory authority

Canada Shipping Act, 2001

Sponsoring department

Department of Transport

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

The proposed Regulations Amending the Safety Management Regulations amend the wording of the Safety Management Regulations (the Regulations), as made under the Canada Shipping Act (CSA), in order to make the wording of the Regulations consistent with the provisions of the new Canada Shipping Act, 2001 (CSA 2001) when it comes into force in early 2007.

The Regulations were promulgated in 1998 under the CSA to ensure that Canada met its international obligations with respect to the certification of Canadian Convention ships under the International Convention for the Safety of Life at Sea, 1974 (SOLAS). Chapter IX of SOLAS introduced the International Safety Management Code (ISM Code), which provides an international standard for the safe management and operation of ships and pollution prevention. The ISM Code does this by addressing the need for commitment at all levels of a company or organization, including management, masters and crews, to a safety culture built around a safety management system subject to external audit and certification. The safety management system is a structured and documented system enabling company personnel to implement effectively the company safety and environmental protection policies.

The Regulations were amended in 2002 to match the expansion in scope of the ISM Code to apply in respect of Safety Convention ships that are passenger ships and cargo ships that are over 500 tons gross tonnage that are subject to SOLAS. At the present time, there are approximately 20 Canadian companies and 60 Canadian-flag vessels certified under the ISM Code on a statutory basis.

The CSA is the principal piece of legislation dealing with the commercial and recreational vessel use of Canadian waters. It is one of Canada's oldest pieces of legislation and, as such, was in need of reform. As a result, the CSA 2001 was developed and received Royal Assent on November 1, 2001. This new Act streamlines and modernizes the old one and, apart from certain sections specified in subsection 334(1) of that Act, will come into force on a day or days to be fixed by order of the Governor in Council. The Department intends to bring the majority of the CSA 2001 into force in early 2007, when it is expected that the regulations needed in support of it will have been developed. The proposed amendments to the Regulations, to be made under section 35 of Part 1 of the CSA 2001, are one of several regulations included in Phase I of the CSA 2001 Regulatory Reform Project.

The proposed Regulations Amending the Safety Management Regulations, under the CSA 2001, would vary only slightly from the current Regulations. The most significant of these minor changes would clarify that it is the Minister of Transport who has the authority to issue Documents of Compliance or Safety Management Certificates and not steamship inspectors.

Other minor amendments would

• change the title of the French version of the existing Regulations from Règlement sur la gestion pour la sécurité de l'exploration des navires to Règlement sur la gestion pour la sécurité de l'exploration des bâtiments to be consistent with the terminology of the CSA 2001.
• change the heading before section 1 of the existing French version of the Regulations from "Interprétation" to "Définitions et interprétation", in accordance with modern drafting convention.
• add a definition of the word "Minister" to mean "Minister of Transport", since, under Part 1 of the CSA 2001, that term could be used to refer to either the Minister of Transport or the Minister of Fisheries and Oceans.
• add a definition of the acronym "SOLAS" to mean "International Convention for the Safety of Life at Sea, 1974, and the Protocol of 1988 relating to the Convention, as amended from time to time", since that term is not defined in the CSA 2001.
• clarify that for the purpose of these Regulations, the word "Administration" as referred to in Chapter IX of SOLAS means the Minister.
• clarify that the amended Regulations would apply to Canadian vessels to which Chapter IX of SOLAS applies.
• replace the words "ships/navires" with the words "vessels/ bâtiments" throughout the amended Regulations to make them consistent with the CSA 2001.

Alternatives

There are no viable alternatives to amending the Regulations. Firstly, these Regulations are required to enable Canada to meet its international obligations with respect to the certification of Canadian ships under SOLAS. Secondly, the Regulations need to be amended to render them compliant with the CSA 2001 when it comes into force in early 2007 (for example, the Regulations provide that steamship inspectors may issue Documents of Compliance and Safety Management Certificates whereas the CSA 2001 clearly states that this must be done by the Minister of Transport).

Benefits and costs

There are no benefit or cost implications resulting from the proposed Regulations Amending the Safety Management Regulations. The proposed amendments to the Regulations maintain the status quo insofar as stakeholders are concerned, and their sole purpose is to render the Regulations consistent with the provisions of the CSA 2001.

Environmental considerations

A preliminary scan for environmental impacts has been undertaken in accordance with the criteria of Transport Canada's Strategic Environmental Assessment Policy Statement – March 2001. The preliminary scan has led to the conclusion that a detailed analysis is not necessary. Further assessments or studies regarding environmental effects of this initiative are not likely to yield a different determination.

Consultation

There were no specific consultations undertaken with respect to the proposed amendments to the Regulations, since the amendments are intended to maintain the status quo of the existing Safety Management Regulations. The purpose of the proposed amendments is to ensure that the Regulations are consistent with the relevant provisions of the CSA 2001 and to clarify certain provisions contained in the Regulations.

Compliance and enforcement

Since the status quo is being maintained in regard to stakeholder obligations under the proposed amendments to the Regulations, the compliance and enforcement regime will remain unchanged. Transport Canada (TC) signed formal agreements in 1999 with five of the major international ship classification societies active in Canada, giving the societies the authority to conduct the necessary verification audits and issue certification to shipping companies and vessels under the ISM Code on behalf of the Canadian government. These agreements will remain in effect with the transition to the CSA 2001. The Marine Safety Directorate of TC will continue to oversee the activities carried out by the ship classification societies under these agreements.

Contact

Keith Bell, AMSX, Team Leader, CSA 2001 Regulatory Reform, Marine Safety, Transport Canada, Place de Ville, Tower C, 11th Floor, 330 Sparks Street, Ottawa, Ontario K1A 0N5, (613) 949-3819 (telephone), (613) 991-5670 (fax), bellk@tc.gc.ca (email).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to paragraph 35(1)(d) of the Canada Shipping Act, 2001 (see footnote a), proposes to make the annexed Regulations Amending the Safety Management Regulations.

Interested persons may make representations to the Minister of Transport with respect to the proposed Regulations within 30 days after the publication of this notice. All such representations must be in writing and cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Keith Bell, Team Leader, CSA 2001 Regulatory Reform, Regulatory Services and Quality Assurance, Marine Safety, Department of Transport, Place de Ville, Tower C, 11th Floor, 330 Sparks Street, Ottawa, Ontario K1A 0N5 (tel.: (613) 949-3819; fax: (613) 991-5670; e-mail: bellk@tc.gc.ca).

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

Ottawa, June 8, 2006

DIANE LABELLE
Acting Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE SAFETY MANAGEMENT REGULATIONS

AMENDMENTS

1. The title of the French version of the Safety Management Regulations (see footnote 1) is replaced by the following:

RÈGLEMENT SUR LA GESTION POUR LA SÉCURITÉ DE L'EXPLOITATION DES BÂTIMENTS

2. The heading before section 1 of the French version of the Regulations is replaced by the following:

DÉFINITIONS ET INTERPRÉTATION

3. Sections 1 to 4 of the Regulations are replaced by the following:

1. (1) The following definitions apply in these Regulations.

"Minister" means the Minister of Transport. (ministre)

"SOLAS" means the International Convention for the Safety of Life at Sea, 1974, and the Protocol of 1988 relating to the Convention, as amended from time to time. (SOLAS)

(2) In these Regulations, the expression "company" has the same meaning as in Regulation 1 of Chapter IX of SOLAS.

(3) For the purpose of these Regulations, every reference to "Administration" in Chapter IX of SOLAS means the Minister.

APPLICATION

2. These Regulations apply in respect of Canadian vessels to which Chapter IX of SOLAS applies.

COMPANY RESPONSIBILITIES

3. Every company shall comply with, and ensure that its vessels comply with, Regulations 3, 4.2 and 5 of Chapter IX of SOLAS.

ISSUANCE OF DOCUMENTS

4. On application, the Minister shall issue

(a) a Document of Compliance to a company if it meets the requirements of Regulation 4.1 of Chapter IX of SOLAS; and

(b) a Safety Management Certificate to a vessel if the requirements of Regulation 4.3 of Chapter IX of SOLAS are met.

COMING INTO FORCE

4. These Regulations come into force on the day on which section 2 of the Canada Shipping Act, 2001, chapter 26 of the Statutes of Canada, 2001, comes into force.

[24-1-o]

Footnote a

S.C. 2001, c. 26

Footnote 1

SOR/98-348

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