Rail Rate Freeze Compensatory Payments Order (SI/76-31)

Short Title

1 This Order may be cited as the Rail Rate Freeze Compensatory Payments Order.

Interpretation

2 In this Order,

Commission

Commission means the Canadian Transport Commission; (Commission)

claim

claim means a claim for compensation filed with the Commission pursuant to subsection 3(1); (réclamation)

company

company means

• (a) a for-hire highway transportation company, or

• (b) a non-federally regulated railway company or a water transportation company whose tariffs are differentially related to railway tariffs of federally regulated companies; (compagnie)

revenue foregone

revenue foregone means the actual revenues lost by a company on traffic actually carried and as a direct result of the rail rate freeze. (perte subie)

Claims for Compensation

• 3 (1) Subject to subsection (2), a company may file with the Commission a claim for compensation,

  • (a) within thirty days of the publication of this Order in the Canada Gazette, in respect of revenue foregone as a result of the rail rate freeze during the 1973 calendar year; and

  • (b) within ninety days of the publication of this Order in the Canada Gazette, in respect of revenue foregone as a result of the rail rate freeze during the 1974 calendar year.

• (2) Every claim shall set out separately in respect of each movement of goods the following information:

  • (a) the date of shipment of the goods;

  • (b) the name and address of the shipper and consignee;

  • (c) the origin and destination of the goods;

  • (d) a description of the goods;

  • (e) the tolls, rates, charges or allowances in respect of the carriers’ freight-bill;

  • (f) the total freight charge or revenue;

  • (g) the amount of the claim for compensation;

  • (h) the carrier’s tariff items covering the movement and the corresponding tariff items for federally regulated railways containing rates that were subject to the rail rate freeze;

  • (i) a statement of the percentage or specific increases in highway transport rates that would have been applied but for the rail rate freeze and the dates on which such increases would have been applied; and

  • (j) a statement of the percentage of specific increases in highway transport rates and the effective dates of such increases for the 1971 and 1972 calendar years.

• (3) Every company shall provide with its claims a written undertaking by the company that its records will be made available for inspection by the Commission at a time and place convenient to the company.

• (4) Every company shall provide with its claim a declaration in the form set out in section 38 of the Canada Evidence Act declaring that no compensation is being claimed in respect of movements of manufacturer’s goods in cases where the company is directly integrated with the manufacturer or owner of such goods.

• (5) Where the Commission is of the opinion that a claim is accompanied by information that is insufficient for the determination of the amount that may be paid to the company under section 5, the Commission may require the company to submit such further information as the Commission deems necessary.

• (6) Subject to subsection (7), where, within the period set out in paragraph (1)(a) or (b), whichever is applicable, a company cannot provide the information required by subsection (2), the company may submit that information in respect of the first full week in each of the months of February, May, August and November of the 1973 or 1974 calendar year, as the case may be, in order that the total amount of the claim may be estimated.

• (7) The Commission may require a company that has submitted information pursuant to subsection (6) to submit information in respect of such other weeks or months of the 1973 or 1974 calendar year as the Commission may deem necessary.

Advance Payments

4 Upon receipt of a claim and any information filed by a company pursuant to section 3, the Commission may recommend to the Minister that advance payments of not more than twenty per cent of the total amount claimed by the company be made to the company subject to

• (a) adjustment pursuant to audit as required by the Commission; and

• (b) the posting by the company of a security bond payable to Her Majesty in an amount equal to the advance payments.

Payment of Claims

• 5 (1) Subject to section 6, the Commission shall, on the basis of the claims and all information filed, determine the total amount that may be paid to a company in respect of its claims and recommend to the Minister that payment be made accordingly.

• (2) Upon receipt of a recommendation under subsection (1), the Minister may pay to a company the amounts determined by the Commission.

• (3) The Commission may, at any time, adjust the total amount determined pursuant to subsection (1) and any amount paid to a company in excess of the adjusted amount shall be repayable forthwith to Her Majesty.

• 6 (1) Subject to subsections (2) to (4), the audited claims of each company shall be calculated by the Commission as a percentage of the total audited claims of all companies and that percentage shall determine the total amount to be paid to a company.

• (2) Subject to subsection (3) or (4), the total payment to a company shall not exceed 115/183rds of its total audited claims.

• (3) The total payments to all for-hire highway transportation companies shall not exceed $10,000,000.

• (4) The total payments to all non-federally regulated railway companies and water transportation companies whose tariffs are differentially related to railway tariffs of federally regulated companies shall not exceed $3,000,000.