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Ministry of Transportation Privatization
 

 
Analysis Of Effects Of The New Road User Customer Service Improvement Act, 2000

A) The Current Situation:

Under the Highway Traffic Act, R.S.O. 1990, H.8, the Minister of Transportation has the duty and responsibility to take the following steps in the interests of public safety:

  • Issue vehicle permits and revoke them;
  • Maintain permit records;
  • Issue license plates;
  • Issue Commercial Vehicle Operator Registration Certificates;
  • Issue drivers licenses and test persons to see if they are fit to drive:
  1. The purpose of this [Driver License] Part is to protect the public by ensuring that,
  1. the privilege of driving on a highway is granted to, and retained by, only those persons who demonstrate that they are likely to drive safely; and
  • Enforce equipment standards for vehicles (including lights, brakes, safe tires, and roadworthiness);
  • Enforce maintenance requirements;
  • Enforce load, dimensions and total weight limits;
  • Enforce the rules of the road (including driving offenses such as illegal turn, failure to stop, yielding right of way, stopping for pedestrians at crosswalks, etc., etc.)

The Minister is to carry out these functions through delegation to Ministry staff. The Minister can use "officers appointed for the purpose of carrying out provisions of this act." Such enforcement officers have to be persons on staff with the Ministry. In addition, police can enforce various provisions.

Under the Public Vehicles Act and the Truck Transportation Act, bus companies and truckers are regulated through operating licensing requirements and enforcement of standards. The enforcement is to be done by the Ministry, "an officer of the Ministry…", or, in certain cases, the police.

In sum, the Minister of Transportation and his staff (or the police) are to regulate road user safety.

B) Under the New Act:

The new Act allows the Minister of Transportation to transfer all these functions to the private sector. Specifically, the Act permits the Minister to enter into an agreement with private sector companies to delegate to that company "any of the powers or duties of the Minister, the Ministry or an officer or employee of the Ministry under an Act or regulation relating to road user safety". The Act further permits the private sector company to establish the fees to be charged to the public and to collect and retain all of those fees.

The Act does allow the Minister to set conditions on the private sector transfer "as the Minister considers advisable in the public interest". The Act also makes it an offense for the private sector company to fail to comply with the conditions which are set. But, the Act does not contain any guidelines or criteria for establishing when such transfers to the private sector shall take place. There is no requirement that road user safety be maintained.

Under the Act, Cabinet may make regulations further specifying which road user safety functions can be transferred, to whom, and on what conditions. Those matters will only be spelled out after the Act is passed through the Legislature.

In sum, this Act permits the government to arrange private sector licensing of motor vehicles and drivers, private sector monitoring of vehicles and drivers and private sector inspection and enforcement of standards and rules of the road. The Act itself does not contain any limitations on when, how and to whom and under what conditions the transfer to the private sector will take place.

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