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| What's "Canadian" control? |
| Written by Drew McCarthy | ||||||
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The HAC is worried that a decision by the Canadian Transportation Agency
(CTA) from November 2006 regarding Ascent Helicopters Ltd.'s application for a licence "to operate a domestic service, small aircraft" could have some very negative repercussions for the Canadian helicopter industry. Here's an excerpt from the CTA's November 2006 decision: "With respect to the requirement that the applicant be controlled in fact by Canadians, the Agency notes that the applicant has a substantial and close relationship with a non-Canadian who is also a shareholder of the applicant. The Agency is of the opinion that the relationship that exists between the applicant and the non-Canadian shareholder results in this person being able to exert great influence over the affairs of the applicant. In addition, the evidence demonstrates that the influence is dominant or determining and results in this person exerting control in fact over the affairs of the applicant. In light of the above, the Agency finds that the applicant has not satisfied the Agency that it is Canadian as defined in subsection 55(1) of the CTA in that it has not satisfied the Agency that it is controlled in fact by Canadians." How curious. And, in the immortal words of Lewis Carroll, it gets "curiouser and curiouser!" The CTA decision ends with the sentence, "Due to the confidentiality of the documents filed by the applicant, a separate letter will be sent to the applicant, in confidence, setting out the detailed reasons for the Decision." So fine, Ascent Helicopters has received more detailed reasons for the decision, but where does that leave the rest of us? What determines "exerting great influence" and why does this undermine the idea of Canadian control? How much influence is too much influence? One of the key elements of the rule of law is predictability. This decision leaves us wondering. We don't know what to expect or what we're supposed to do. Ascent has now applied to the Minister of Transport for an exemption from the requirements, under the CARs and section 62 of the CTA, to be "Canadian," in order to operate a domestic air service. To read the HAC's reasons for concern, go to HAC's letter to the Minister of Transport regarding an exemption from the requirements, under the CARs and section 62 of the CTA, to be "Canadian." To take part in our HELICOPTERS Poll on the topic, you can go to our home page to register your vote.
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