Commercial Boat Fees

[Rockfish]

http://www.vancouversun.com/news/na...+icebreaking+fees+services/9319137/story.html

If commercial boat navigation fees go up I assume it will apply to guide boats.

 

[Fish Assassin]

OTTAWA — For the first time in 15 years, Canada’s coast guard is reviewing the amount it charges transport ships, ferries and other commercial vessels for navigational and icebreaking services.


The move comes as the coast guard works to manage a combination of mounting costs, budget cuts and growing demand for its services.


Canadian Coast Guard deputy commissioner Jody Thomas said the fee review is part of a larger examination of what services Canada’s commercial maritime industry need from the coast guard — and what might be phased out or reduced.


“Our stakeholders want to ensure that they get good value for money,” she said in an interview.


“So it becomes a discussion of the fee base and the fee structure and what the range of services we offer are, and how we should work with them going forward.”


A working group that also involves industry representatives has been established to review the marine navigation services fee and icebreaking services fee, neither of which has changed since being introduced in 1996 and 1998, respectively.


The coast guard expects any proposed changes to be tabled in Parliament in the next year or two — though some officials would likely prefer sooner rather than later.


A secret briefing paper prepared in December 2012 for the Department of Fisheries’ and Oceans top bureaucrat, Matthew King, says the fees are an important source of revenue for the coast guard.


But while they generate about $33 million each year, the paper notes that is significantly less than the coast guard’s $41-million “revenue target.”


“While the Marine Navigation Services Fee generally meets or exceeds its annual revenue target,” the briefing paper reads, “the revenue target shortfall associated with the Icebreaking Services Fee is approximately $8 (million) annually.”


That is even more significant given $56.8 million in spending reductions ordered by the federal Conservative government over the past three years, combined with growing demand for coast guard services.


“Rising marine traffic, technological changes, climate change impacts (such as fluctuating water levels), and extended shipping seasons are among the factors expected to place increased demands on coast guard services,” reads the briefing paper, which was obtained through access to information laws.


“(The) coast guard is trying to address these demands to the extent possible within its budget.”


Thomas described the coast guard’s financial situation as “tight,” but she said it is managing as best it can without compromising service to Canadians.


“There’s not a government department in town that wouldn’t say, ‘Sure I could use more money,’ and given the choice we’d rather have more than less,” she said.


“But we’re very confident that our level of service is consistent with what we’ve offered in the past and that we’re not putting mariners at risk by the decisions we’ve made.”


Canadian Shipowners’ Association president Robert Lewis-Manning said the review provides an ideal opportunity to get a handle on what services industry needs from the Canadian Coast Guard and what can be reduced.


“When you’re talking about Canadian domestic shipping, ships that are registered and operate in Canadian waters or North American waters, we don’t see a big need for a lot of the physical navigational aids like buoys and markers,” he said.


But Lewis-Manning said any change — particularly an increase in fees — must strike a balance to ensure it doesn’t hurt Canada’s maritime industry.


“It’s not the marine industry that is the sole user of the coast guard’s services,” he said. “So we’ll try to work with the coast guard to figure out what that balance is. But no, it’s not a case of the industry can just absorb it. Or our customers.”


The marine navigation services fee was introduced in 1996 to help recover part of the cost of providing navigational buoys, lighthouses, maritime traffic information and other aids to commercial ships operating in Canadian waters.


The amount varies by vessel, and there are exceptions for ships travelling to and from the Arctic Circle.


The icebreaking services fee was created in 1998 costs $3,100 per vessel and applies to those ships travelling to or from ports along the northeast coast of Newfoundland and Labrador, the Great Lakes, St. Lawrence River and Gulf of St. Lawrence during certain times of the year.

 

[searun]

http://www.vancouversun.com/news/na...+icebreaking+fees+services/9319137/story.html

If commercial boat navigation fees go up I assume it will apply to guide boats.

At the moment the only fee is your C license renewal, currently $50 for 5 years which is reasonable. Let's hope they don't get some dumb ideas.

 

[profisher]

Searun, there is an annual $25 fee to commercial charter boats to offset Coast Guard costs. However it is poorly administered and only a few operators are being invoiced. I have at least 2 dozen invoices which I have ignored as only a handful of us are on the list. If they invoice everyone then I will pay it.

 

[coastalmarinesafety]

These fees are charged by the Coast Guard, but collected by a third party: "Thunder Bay Airport Services Inc." They seem to get guide contact info via the C# registry database. Not just guides get the invoice, can be anyone with a C#. According to the CCG: the fees "help the CCG recover a portion of the costs associated with providing these services. The fees are based on the premise that those who benefit directly from publicly-funded services should contribute to the cost of those services."

I'm not debating their intent of the fees, and not the intent of my post. Having an Airport Authority back east collect fees from Western Canada boat owners is a bit wierd though.

Anyway,what I've noticed, and of interest to fishing guides, is that the fees are exempt for
"fishing vessels". Here is what they say: "Commercial ships operating in Canadian waters (excluding fishing vessels, government ships and pleasure craft) must pay fees to the Canadian Coast Guard (CCG) for certain marine navigation and icebreaking services it provides."

While Transport Canada defines fishing vessels as those generally engaged in commercial fishing activities (seiners, gillnetters, etc.), the CCG definition seems to be much broader:

According to the CCG Marine Fees regulations: "fishing vessel means a vessel, boat or craft that is employed in catching fish, processing fish or transporting fish back to shore."

Some of the invoices folks are getting are for $25.00 (which is the CCG fee for a "rental fleet vessel") and others get a $200 invoice, the general fee for a commercial vessel under 15GT. http://www.ccg-gcc.gc.ca/e0008993

If you operate only seasonally, I've heard of others arguing that and only paying a fraction of the yearly cost. Other guides operating only on lakes, have argued they don't use aids to navigation and have been exempted.

Just some info to help you make sense of an invoice and give you options, should you get one and not agree with it.

 

[beemer]

Searun, there is an annual $25 fee to commercial charter boats to offset Coast Guard costs. However it is poorly administered and only a few operators are being invoiced. I have at least 2 dozen invoices which I have ignored as only a handful of us are on the list. If they invoice everyone then I will pay it.

Commercial fishing boats are exempt yet sportfishing guides pay? a stupid tax grab.

beemer

 

[coastalmarinesafety]

Commercial fishing boats are exempt yet sportfishing guides pay? a stupid tax grab.

beemer

The way they define "fishing vessels" for the CCG fees, I would argue that any vessel employed in the catching of fish would be exempt. Not just seiners, trawlers and the like.

 

[beemer]

The way they define "fishing vessels" for the CCG fees, I would argue that any vessel employed in the catching of fish would be exempt. Not just seiners, trawlers and the like.

That argument has already been voiced many times. Fishing guides pay, commercial fisherman do not. The whole fee system needs to be revisited.

beemer