Canada Gazette, Part I, Volume 146, Number 16: GOVERNMENT NOTICES

April 21, 2012

BANK OF CANADA

FINANCIAL STATEMENTS (YEAR ENDED DECEMBER 31, 2011)
FINANCIAL REPORTING RESPONSIBILITY

The accompanying financial statements of the Bank of Canada have been prepared by management in accordance with International Financial Reporting Standards and contain certain items that reflect the best estimates and judgments of management. The integrity and reliability of the data in these financial statements are management’s responsibility. Management is responsible for ensuring that all information in the Annual Report is consistent with the financial statements.

In support of its responsibility for the integrity and reliability of these financial statements and for the accounting system from which they are derived, management has developed and maintains a system of internal controls to provide reasonable assurance that transactions are properly authorized and recorded, that financial information is reliable, that the assets are safeguarded and liabilities recognized, and that the operations are carried out effectively. The Bank has an internal Audit Department whose functions include reviewing internal controls, including accounting and financial controls and their application.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal controls and exercises this responsibility through the Audit and Finance Committee of the Board. The Audit and Finance Committee is composed of members who are neither officers nor employees of the Bank and who are financially literate. The Audit and Finance Committee is therefore qualified to review the Bank’s annual financial statements and to recommend their approval by the Board of Directors. The Audit and Finance Committee meets with management, the Chief Internal Auditor, and the Bank’s external auditors who are appointed by Order-in-Council. The Audit and Finance Committee has established processes to evaluate the independence of the Bank’s external auditors and reviews all services provided by them. The Audit and Finance Committee has a duty to review the adoption of, and changes in, accounting principles and procedures that have a material effect on the financial statements, and to review and assess key management judgments and estimates material to the reported financial information.

These financial statements have been audited by the Bank’s external auditors, KPMG LLP and Deloitte and Touche LLP, and their report is presented herein. The external auditors have full and unrestricted access to the Audit and Finance Committee to discuss their audit and related findings.

Ottawa, Canada, February 16, 2012

M. CARNEY
Governor

S. VOKEY, CA
Chief Accountant

INDEPENDENT AUDITORS’ REPORT

To the Minister of Finance, registered shareholder of the Bank of Canada (the “Bank”)

We have audited the accompanying financial statements of the Bank, which comprise the statements of financial position as at December 31, 2011, December 31, 2010, and January 1, 2010, and the statements of comprehensive income, changes in equity, and cash flows for the years ended December 31, 2011, and 2010, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Bank as at December 31, 2011, December 31, 2010, and January 1, 2010, and its financial performance and its cash flows for the years ended December 31, 2011, and December 31, 2010, in accordance with International Financial Reporting Standards.

Ottawa, Canada, February 16, 2012

KPMG LLP
Chartered Accountants
Licensed Public Accountants

DELOITTE & TOUCHE LLP
Chartered Accountants
Licensed Public Accountants

BANK OF CANADA

Statement of financial position
(Millions of dollars)
December 31, 2011 As at
December 31, 2010
January 1, 2010
ASSETS
Cash and foreign deposits (note 4) 11.7 4.7 20.4
Loans and receivables
Securities purchased under resale agreements (note 5a) 1,447.7 2,062.4 25,374.8
Advances to members of the Canadian Payments Association (note 5b) 81.5 22.5 -
Other receivables 1.6 2.1 2.2
1,530.8 2,087.0 25,377.0
Investments (notes 6, 7)
Government of Canada treasury bills 18,545.6 24,906.1 13,684.0
Government of Canada bonds 43,553.3 33,550.6 31,986.2
Other investments 325.3 310.7 318.7
62,424.2 58,767.4 45,988.9
Property and equipment (note 8) 176.6 153.0 155.2
Intangible assets (note 9) 44.6 25.9 23.7
Other assets (note 10) 59.3 178.1 211.6
Total assets 64,247.2 61,216.1 71,776.8
LIABILITIES AND EQUITY
Bank notes in circulation (note 11) 61,028.8 57,874.2 55,467.9
Deposits (note 12)
Government of Canada 1,512.5 1,869.4 11,847.6
Members of the Canadian Payments Association 106.7 47.5 2,999.6
Other deposits 861.8 639.9 703.0
2,481.0 2,556.8 15,550.2
Other liabilities (note 13) 312.8 368.3 189.8
63,822.6 60,799.3 71,207.9
Equity (note 15) 424.6 416.8 568.9
Total liabilities and equity 64,247.2 61,216.1 71,776.8

Commitments, contingencies and guarantees (note 18)

M. CARNEY
Governor

S. VOKEY, CA
Chief Accountant

DAVID H. LAIDLEY, FCA
Chair, Audit and Finance Committee

W. A. BLACK
Lead Director

On behalf of the Board

(See accompanying notes to the financial statements.)

BANK OF CANADA

Statement of comprehensive income
(Millions of dollars)

For the year ended December 31,
2011 2010

INCOME

Net interest income

Interest revenue

Interest earned on investments 1,614.7 1,525.3
Dividend revenue 4.3 10.1
Interest earned on securities purchased under resale agreements 1.9 38.4
Other interest revenue 0.2 0.1
1,621.1 1,573.9
Interest expense
Interest expense on deposits (23.4) (42.0)
1,597.7 1,531.9
Other revenue 9.1 11.4
Total income 1,606.8 1,543.3
EXPENSES
Staff costs 153.8 170.8
Bank note research, production and processing 53.5 53.7
Premises maintenance 24.4 28.7
Technology and telecommunications 27.0 34.3
Depreciation and amortization 17.4 15.2
Other operating expenses 77.0 78.1
Total expenses 353.1 380.8
NET INCOME 1,253.7 1,162.5
OTHER COMPREHENSIVE INCOME
Change in fair value of available-for-sale financial assets 23.6 (16.5)
Actuarial losses (202.5) (105.6)
Other comprehensive income (178.9) (122.1)
COMPREHENSIVE INCOME 1,074.8 1,040.4

(See accompanying notes to the financial statements.)

BANK OF CANADA

Statement of changes in equity
(Millions of dollars)

For the year ended December 31
Share capital Statutory reserve Special reserve Available-for-sale reserve Actuarial gains reserve Retained earnings Total
Balance, January 1, 2011 5.0 25.0 100.0 271.0 14.1 1.7 416.8
Comprehensive income for the year
Net income - - - - - 1,253.7 1,253.7
Change in fair value of available-for-sale financial assets - - - 23.6 - - 23.6
Actuarial losses - - - - (14.1) (188.4) (202.5)
- - - 23.6 (14.1) 1,065.3 1,074.8
Transfer to Receiver General for Canada - - - - - (1,067.0) (1,067.0)
Balance, December 31, 2011 5.0 25.0 100.0 294.6 - - 424.6
Balance, January 1, 2010 5.0 25.0 100.0 287.5 119.7 31.7 568.9
Comprehensive income for the year
Net income - - - - - 1,162.5 1,162.5
Change in fair value of available-for-sale financial assets - - - (16.5) - - (16.5)
Actuarial losses - - - - (105.6) - (105.6)
- - - (16.5) (105.6) 1,162.5 1,040.4
Transfer to Receiver General for Canada - - - - - (1,192.5) (1,192.5)
Balance, December 31, 2010 5.0 25.0 100.0 271.0 14.1 1.7 416.8

(See accompanying notes to the financial statements.)

BANK OF CANADA

Statement of cash flows
(Millions of dollars)

For the year ended December 31,
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received 1,641.6 1,606.0
Dividends received 4.3 10.1
Other revenue received 9.9 11.8
Interest paid (23.4) (42.0)
Payments to or on behalf of employees and to suppliers (385.8) (403.3)
Net decrease in advances to members of the Canadian Payments Association (59.0) (22.5)
Net decrease in deposits (76.4) (12,993.4)
Proceeds from maturity of securities purchased under resale agreements 17,052.7 60,784.5
Acquisition of securities purchased under resale agreements (16,438.6) (37,506.3)
Repayments of securities sold under repurchase agreements (764.8) (470.0)
Proceeds from securities sold under repurchase agreements 764.8 470.0
Net cash provided by operating activities 1,725.3 11,444.9
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in Government of Canada treasury bills 6,362.5 (11,180.9)
Purchases of Government of Canada bonds (15,422.9) (5,924.2)
Proceeds from maturity of Government of Canada bonds 5,403.1 4,302.2
Additions of property and equipment (36.2) (10.7)
Additions of intangible assets (23.5) (4.4)
Net cash used in investing activities (3,717.0) (12,818.0)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in bank notes in circulation 3,154.6 2,406.3
Remittance of ascertained surplus to the Receiver General for Canada (1,156.1) (1,048.6)
Net cash provided by financing activities 1,998.5 1,357.7
EFFECT OF EXCHANGE RATE CHANGES ON FOREIGN CURRENCY 0.2 (0.3)
INCREASE (DECREASE) IN CASH AND FOREIGN DEPOSITS 7.0 (15.7)
CASH AND FOREIGN DEPOSITS, BEGINNING OF YEAR 4.7 20.4
CASH AND FOREIGN DEPOSITS, END OF YEAR 11.7 4.7

(See accompanying notes to the financial statements.)

BANK OF CANADA

Notes to the financial statements For the year ended December 31, 2011

(Amounts in the notes to the financial statements of the Bank of Canada are in millions of Canadian dollars, unless otherwise stated.)

1. The business of the Bank of Canada

The Bank of Canada (the Bank) is the central bank of Canada. The Bank is a corporation under the Bank of Canada Act and is wholly owned by the Government of Canada and is exempt from income taxes. The Bank is a government business enterprise, as defined by the Public Sector Accounting Board Handbook and, as such, adheres to the standards applicable to publicly accountable enterprises as outlined by the Canadian Institute of Chartered Accountants (CICA).

The responsibilities of the Bank focus on the goals of low and stable inflation, financial system stability, a safe and secure currency, and the efficient management of government funds and public debt. These responsibilities are carried out as part of the broad functions described below.

Monetary policy

Contributes to solid economic performance and rising living standards for Canadians by keeping inflation low, stable and predictable.

Financial system

Promotes a safe, sound and efficient financial system, both within Canada and internationally.

Currency

Designs, produces and distributes Canada’s bank notes, focusing on deterrence of counterfeiting through research on security features, public education and partnership with law enforcement; replaces and destroys worn notes.

Funds management

Provides high-quality, effective and efficient funds-management services: for the Government of Canada, as its fiscal agent; for the Bank; and for other clients.

2. Basis of preparation

Compliance with International Financial Reporting Standards (IFRS)

These financial statements have been prepared in accordance with IFRS accounting policies and conform to the disclosure and accounting requirements of the Bank of Canada Act and the Bank’s bylaws.

These are the Bank’s first annual IFRS financial statements. The Bank has elected January 1, 2010, as the date of transition to IFRS (the “transition date”). IFRS 1 First-time Adoption of IFRS (IFRS 1) has been applied. An explanation of how the transition to IFRS has affected the financial statements is included in note 20.

The Board of Directors approved the financial statements on February 16, 2012.

Measurement base

The financial statements have been prepared on the historical cost basis, except for the available-for-sale financial assets, which are measured at fair value, and the defined-benefit assets and obligations, which are recognized as the net of the plan assets, plus unrecognized past service costs, and the present value of the defined-benefit obligation.

Significant accounting estimates and judgments in applying accounting policies

The preparation of the financial statements requires management to make judgments, estimates and assumptions based on information available at the statement date that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results could differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. These estimates are primarily in the area of employee benefit plans (note 14) and the fair values of certain financial instruments and collateral taken (note 7).

Functional and presentation currency

The Bank’s functional and presentation currency is the Canadian dollar.

Fiscal agent and custodial activities

Responsibility for the operational management of the Government of Canada’s financial assets and liabilities is jointly borne by both the Bank (as fiscal agent for the Government) and the Department of Finance. In this fiscal agent role, the Bank provides transactional and administrative support to the Government of Canada in certain areas. Assets, liabilities, expenditures and revenues to which this support relates are those of the Government of Canada and are not included in the financial statements of the Bank.

Securities safekeeping and gold custodial activities are provided to foreign central banks and international organizations. The assets, and income arising thereon, are excluded from these financial statements, as they are not assets or income of the Bank.

3. Significant accounting policies

The significant accounting policies of the Bank are summarized below. These policies have been consistently applied to all years presented, unless otherwise stated.

(a) Translation of foreign currencies

Investment income and expenses denominated in foreign currencies are translated at the exchange rate in effect at the date of the transaction. Fair value items denominated in foreign currencies are translated at the exchange rate in effect at the date of the fair value measurement. Monetary assets and liabilities denominated in foreign currencies are translated to Canadian dollars at the rates of exchange prevailing at the end of the reporting years. The resulting gains and losses are included in Other revenue. Gains or losses on equity investments classified as available-for-sale (AFS), along with any exchange-related gains or losses, are recognized in the available-for-sale reserve within Other Comprehensive Income.

(b) Financial instruments

The Bank accounts for all financial instruments using settlement date accounting. Financial instruments are measured at fair value on initial recognition, plus transaction costs, if any, for all financial assets not carried at fair value through net income. Subsequent to initial recognition, they are accounted for based on their classification.

Subsequent to initial recognition, financial assets classified as AFS are measured at fair value using quoted market prices, with the exception of the Bank for International Settlements (BIS) shares, which are measured using significant non-observable inputs. Unrealized changes in values of AFS financial assets measured at fair value are recognized in Other Comprehensive Income and accumulated in the available-for-sale reserve in equity until the financial asset is derecognized or becomes impaired. At that time, the cumulative unrealized gain or loss previously recognized in Other Comprehensive Income is reclassified from equity to net income. The Bank’s financial assets designated as AFS consist of Government of Canada treasury bills and other investments, which comprise BIS shares.

Financial assets that the Bank has the intent and ability to hold to maturity are classified as held-to-maturity (HTM). Subsequent to initial recognition, financial assets classified as HTM are measured at amortized cost using the effective interest method less any impairment losses. The effective interest method uses the rate inherent in a financial instrument that discounts the estimated future cash flows over the expected life of the financial instrument so as to recognize interest on a constant yield basis. Government of Canada bonds are classified as HTM.

The Bank has not classified any of its financial assets as fair value through net income, other than cash and foreign deposits.

All other financial assets are classified as loans and receivables. Subsequent to initial recognition, these are measured at amortized cost less any impairment losses using the effective interest method of amortization.

The Bank derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire. On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in net income.

The Bank has classified its financial liabilities as other liabilities. These liabilities are initially recognized at fair value. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method, with the exception of bank notes in circulation, which are measured at face value. The Bank has not classified any of its financial liabilities as fair value through net income.

The Bank derecognizes financial liabilities when, and only when, the Bank’s obligations are discharged, cancelled or expire. The difference between the carrying amount of the financial liability derecognized and the sum of the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in net income.

(c) Securities purchased under resale agreements

Securities purchased under resale agreements are reverse repo-type transactions in which the Bank purchases securities from designated counterparties with an agreement to sell them back at a predetermined price on an agreed transaction date. For accounting purposes, these agreements are treated as collateralized lending transactions and are recorded on the Statement of financial position at the amounts at which the securities were originally acquired plus accrued interest.

(d) Securities sold under repurchase agreements

Securities sold under repurchase agreements are repo-type transactions in which the Bank sells Government of Canada securities to designated counterparties with an agreement to buy them back at a predetermined price on an agreed transaction date. For accounting purposes, these agreements are treated as collateralized borrowing transactions and are recorded on the Statement of financial position at the amounts at which the securities were originally sold plus accrued interest.

(e) Securities Lending Program

The Bank operates a Securities Lending Program to support the liquidity of Government of Canada securities by providing a secondary and temporary source of these securities to the market. These securities-lending transactions are fully collateralized by securities and are generally one business day in duration. The securities loaned continue to be accounted for as investment assets. Lending fees charged by the Bank on these transactions are included in Other revenue at the maturity date of the transaction.

(f) Property and equipment

Property and equipment consists of land, buildings, computer hardware, other equipment and related projects in progress. Property and equipment is recorded at cost less accumulated depreciation, except for land which is not depreciated, and is net of any related impairment loss. Projects in progress are recorded at cost but not depreciated until the asset is available for use. Cost includes expenditures that are directly attributable to the acquisition of the asset.

When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Upon replacing a significant part of an item of property and equipment, the carrying amount of the replaced part is derecognized.

Depreciation is calculated using the straight-line method and is applied over the estimated useful lives of the assets, as shown below. The estimated useful life and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Buildings 25 to 65 years
Computer hardware 3 to 7 years
Other equipment 5 to 15 years

(g) Intangible assets

Intangible assets are identified non-monetary assets without physical substance. The Bank’s intangible assets consist of computer software internally developed or externally acquired.

Costs that are directly associated with the internal development of identifiable software are recognized as intangible assets if, in management’s best estimate, the asset can technically be completed and will provide a future economic benefit to the Bank. Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates.

Computer software assets that are acquired by the Bank and have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses.

Amortization is calculated using the straight-line method and is applied over the estimated useful lives of the assets, which may vary from 3 to 15 years. The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

(h) Leases

Where the Bank is a lessee

Leases of equipment where the Bank has assumed substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s inception at the lower of the fair value of the leased asset or the present value of the minimum lease payments. The corresponding lease obligations, net of finance charges, are included in Other liabilities. Each lease payment is allocated between the liability and finance charges to achieve a constant rate of return on the finance lease obligation outstanding. Equipment acquired under finance leases is depreciated over the shorter of the asset’s useful life and the lease term.

Other leases are classified as operating leases. Payments made under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the period of the lease.

Where the Bank is a lessor

Leases granted on the Bank’s property were assessed and classified as operating leases because the risks and rewards of ownership are not transferred to the lessees. Operating lease income is recognized on a straight-line basis over the period of the lease.

(i) Impairment

Impairment of financial assets

For financial assets that are not classified as fair value through net income, the Bank assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of assets is impaired. Once impaired, financial assets carried at amortized cost are remeasured at net recoverable amount with the amount of impairment recognized in net income. Unrealized losses on impaired AFS financial assets are recognized in net income at the time of impairment.

Impairment of non-financial assets

Non-financial assets, including property and equipment, intangible assets and inventories, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount exceeds its recoverable amount.

Intangible assets under development are assessed for impairment on an annual basis.

(j) Employee benefits

Short-term employee benefits

Short-term employee benefits include cash salary, bonus, annual leave, health benefits, dental care and statutory benefits and are measured on an undiscounted basis.

Long-term employee benefits

The Bank sponsors a long-term disability program.

The liability recognized in respect of this plan amounts to the present value of the defined-benefit obligation. The present value of the defined-benefit obligation is calculated by discounting estimated future cash flows using interest rates of high quality corporate bonds with terms to maturity approximating the duration of the obligation. The expense recognized for the fiscal year consists of current service costs, interest costs, actuarial gains and losses, and past service costs.

The current service costs and the benefit obligations of the plan are actuarially determined on an event-driven accounting basis. Actuarial gains or losses are recognized immediately in net income in the period in which they occur. Past service costs arising from plan amendments are recognized immediately in Staff costs in the period in which they occur.

Post-employment defined-benefit plans

The Bank sponsors a funded defined-benefit pension plan (the Bank of Canada Registered Pension Plan) and a funded defined-benefit supplementary pension arrangement (the Bank of Canada Supplementary Pension Arrangement), which are designed to provide retirement income benefits to eligible employees. Benefits provided under these plans are calculated based on years of service and average full-time salary for the best five consecutive years and are indexed to reflect changes in the consumer price index on the date payments begin and each January 1, thereafter.

The Bank also sponsors other unfunded post-employment defined-benefit plans, which include life insurance and eligible health and dental benefits, as well as a long-service benefit program for employees hired before January 1, 2003.

The asset or liability recognized at fiscal year-end in respect of these plans is composed of the present value of the defined-benefit obligation less the fair value of plan assets, where applicable. The present value of the defined-benefit obligation is calculated by discounting estimated future cash flows using interest rates of high-quality corporate bonds with terms to maturity approximating the duration of the obligation. The expense recognized for the fiscal year consists of current service costs, interest costs, expected return on plan assets and past service costs.

The current service costs and the benefit obligations of the plans are actuarially determined using the projected unit credit method. Actuarial gains or losses arise from the difference between the actual rate of return and the expected rate of return on plan assets for that period and from changes in actuarial assumptions used to determine the accrued benefit obligation. Actuarial gains or losses are recognized immediately in the period in which they occur in Other Comprehensive Income. Past service costs arising from plan amendments that have vested are immediately recognized as an expense. Non-vested past service costs are amortized over the period until the related benefits become vested. Plan assets of funded obligations are determined according to their fair value at the end of the fiscal year.

(k) Provisions

A provision is recognized if, as a result of a past event, the Bank has a present legal or constructive obligation that can be estimated reliably as at the statement of financial position date, and it is probable that an outflow of economic benefits will be required to settle the obligation.

(l) Revenue recognition

Interest revenue earned on Government of Canada treasury bills and bonds is recorded using the effective interest method. Dividend revenue on the BIS shares is recorded as dividends are declared.

Realized gains (losses) on the sale of Government of Canada treasury bills are recorded at the time of sale as a reclassification from Other Comprehensive Income and are calculated as the excess of proceeds over the amortized cost at the transaction date.

Interest earned on securities purchased under resale agreements is recorded using the effective interest method.

Other revenue is composed mostly of interest earned on advances to members of the Canadian Payments Association (CPA) and is recorded using the effective interest method.

(m) Bank notes expenses

The cost to produce finished bank notes is expensed as incurred.

(n) Future changes in accounting policies

IFRS 9

IFRS 9 Financial Instruments (IFRS 9), as issued in November 2009 and revised in October 2010, and the related consequential amendments will replace International Accounting Standard 39 Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9 relates to the recognition and derecognition and measurement of financial assets and financial liabilities.

IFRS 9 eliminates the existing financial asset categories and requires all financial assets to be classified on initial recognition either at amortized cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Gains and losses on financial assets measured at fair value will be recognized through net income, with the exception of equity investments not held for trading, for which gains or losses will be recognized directly in equity.

The new standard also requires the use of a single impairment method for financial assets based on expected losses and incurred losses, replacing the multiple impairment methods in IAS 39.

IFRS 9 requires all financial liabilities not designated at fair value through net income to be subsequently measured at amortized cost using the effective interest method.

IFRS 9 is effective for annual periods beginning on or after January 1, 2015, although early adoption is permitted. The Bank is currently evaluating the impact of IFRS 9 on its financial statements, and will continue to do so as the remaining stages of this project, relating to hedge accounting and financial asset and liability offsetting, are finalized.

IFRS 7

IFRS 7 Financial Instruments: Disclosures (IFRS 7) was amended in October 2010 to provide additional disclosure on the transfer of financial assets, including the possible effects of any residual risks that the transferring entity retains. These amendments are effective for annual periods beginning on or after July 1, 2011. The Bank is currently evaluating the impact of these amendments to IFRS 7 on its financial statements.

IFRS 11

On May 12, 2011, the International Accounting Standards Board (IASB) issued IFRS 11 Joint Arrangements (IFRS 11). IFRS 11 provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form (as is currently the case). The standard addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities. IFRS 11 is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted. The Bank is currently evaluating the impact, if any, of this new standard on its financial statements.

IFRS 12

On May 12, 2011, the IASB issued IFRS 12 Disclosure of Interests in Other Entities (IFRS 12). IFRS 12 is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates and unconsolidated structured entities.

IFRS 12 is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted. The Bank is currently evaluating the impact, if any, of this new standard on its financial statements.

IFRS 13

On May 12, 2011, the IASB issued IFRS 13 Fair Value Measurement (IFRS 13). IFRS 13, which is effective from January 1, 2013, defines fair value, sets out in a single IFRS a framework for measuring fair value and requires disclosures about fair value measurements. IFRS 13 does not determine when an asset, a liability or an entity’s own equity instrument is measured at fair value. Rather, the measurement and disclosure requirements of IFRS 13 apply when another IFRS requires or permits the item to be measured at fair value (with limited exceptions). The Bank is currently evaluating the impact, if any, of this new standard on its financial statements.

IAS 19

IAS 19 Employee Benefits (IAS 19) was amended on June 16, 2011, to eliminate the use of the “corridor” approach and mandates that all remeasurement impacts be recognized immediately, and also affects aspects of measurement and disclosure. These amendments are effective as of January 1, 2013. The Bank will not be impacted by the elimination of the corridor approach since the policy to immediately recognize all actuarial gains and losses was adopted at the time of the Bank’s transition to IFRS. The Bank is currently evaluating the impact on its financial statements of other amendments to IAS 19.

4. Cash and foreign deposits

Cash and foreign deposits is composed of cash on hand as well as highly liquid demand deposits in foreign currencies with other central banks or international financial institutions. Included in this balance is CAN$5.6 million (CAN$1.2 million at December 31, 2010, and CAN$3.3 million at January 1, 2010) of U.S. dollars.

5. Loans and receivables

Loans and receivables are composed primarily of securities purchased under resale agreements and, if any, advances to members of the Canadian Payments Association. These transactions are fully collateralized in accordance with publicly disclosed collateral eligibility and margin requirements. Financial risks related to these instruments are discussed in note 7.

(a) Securities purchased under resale agreements

Securities purchased under resale agreements for terms of one business day are acquired through buyback transactions with primary dealers in Government of Canada securities to reinforce the target overnight interest rate.

Securities purchased under resale agreements for terms of longer than one business day are acquired through an auction process for the purposes of providing liquidity in support of the efficient functioning of financial markets. Details of these auctions are announced by the Bank in advance. Bids are submitted on a yield basis, and funds are allocated in descending order of bid yields.

Balances outstanding at December 31, 2011, consist of an agreement with an original term to maturity of 14 days. (Balances outstanding at December 31, 2010, consist of agreements with original terms to maturity ranging from 20 to 34 days. Balances outstanding at January 1, 2010, consist of agreements with original terms to maturity ranging from 84 to 363 days.)

(b) Advances to members of the Canadian Payments Association

Advances to members of the CPA are typically composed of liquidity loans made under the Bank’s Standing Liquidity Facility. These advances mature the next business day. Interest on overnight advances is calculated at the Bank Rate. The Bank Rate is the rate of interest that the Bank charges on one-day loans to major financial institutions.

6. Investments

There were no securities loaned under the Securities Lending Program at December 31, 2011, ($Nil at December 31, 2010, and $Nil at January 1, 2010).

In Other investments, the Bank holds 9 441 BIS shares in order to participate in the BIS. Ownership of the BIS shares is limited to central banks, and new shares can only be acquired following an invitation to subscribe extended by the BIS Board of Directors. The shares are non-transferable unless prior written consent is obtained from the BIS.

7. Financial instruments and risk management

The Bank’s financial instruments consist of cash and foreign deposits, securities purchased under resale agreements, advances to members of the Canadian Payments Association, other receivables, investments (consisting of Government of Canada treasury bills, Government of Canada bonds and shares in the BIS), bank notes in circulation, deposits and other liabilities (excluding post-employment and long-term employee benefit obligations).

Cash and foreign deposits, Government of Canada treasury bills and BIS shares are measured at fair value. All other financial instruments are measured at amortized cost using the effective interest method, with the exception of bank notes in circulation, which are measured at face value.

(a) Fair value of financial instruments

(i) Carrying amount and fair value of financial instruments

The carrying amount and fair values of financial assets and liabilities are presented in the following table:
December 31, 2011 December 31, 2011 December 31,
2011
Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value
Financial assets
Cash and foreign deposits 11.7 11.7 4.7 4.7 20.4 20.4
Securities purchased under resale agreements 1,447.7 1,447.7 2,062.4 2,062.4 25,374.8 25,377.5
Advances to members of the Canadian Payments Association 81.5 81.5 22.5 22.5 - -
Other receivables 1.6 1.6 2.1 2.1 2.2 2.2
Government of Canada treasury bills 18,545.6 18,545.6 24,906.1 24,906.1 13,684.0 13,684.0
Government of Canada bonds 43,553.3 48,511.0 33,550.6 36,296.4 31,986.2 34,128.0
Other investments 325.3 325.3 310.7 310.7 318.7 318.7
Total financial assets 63,966.7 68,924.4 60,859.1 63,604.9 71,386.3 73,530.8
Financial liabilities
Bank notes in circulation 61,028.8 61,028.8 57,874.2 57,874.2 55,467.9 55,467.9
Deposits 2,481.0 2,481.0 2,556.8 2,556.8 15,550.2 15,550.2
Other financial liabilities 132.1 132.1 216.9 216.9 61.7 61.7
Total financial liabilities 63,641.9 63,641.9 60,647.9 60,647.9 71,079.8 71,079.8

(ii) Financial instruments measured at fair value

Financial instruments recorded at fair value are classified using a fair-value hierarchy that reflects the significance of the inputs used in making the measurements:

Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 — inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 — inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair-value hierarchy requires the use of observable market inputs wherever such inputs exist. A financial instrument is classified at the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.

Level 1 Level 2 Level 3 Total
Financial assets at fair value as at December 31, 2011
Cash and foreign deposits 11.7 - - 11.7
Government of Canada treasury bills 18,545.6 - - 18,545.6
BIS shares - - 325.3 325.3
total 18,557.3 - 325.3 18,882.6
Financial assets at fair value as at December 31, 2010
Cash and foreign deposits 4.7 - - 4.7
Government of Canada treasury bills 24,906.1 - - 24,906.1
BIS shares - - 310.7 310.7
total 24,910.8 - 310.7 25,221.5
Financial assets at fair value as at January 1, 2010
Cash and foreign deposits 20.4 - - 20.4
Government of Canada treasury bills 13,684.0 - - 13,684.0
BIS shares - - 318.7 318.7
total 13,704.4 - 318.7 14,023.1

There were no transfers of amounts between Level 1 and Level 2 in 2011.

The fair value of the BIS shares is estimated as being 70% of the Bank’s interest in the BIS’s net asset value (NAV) at the reporting date. This 30% discount to the NAV is based on a decision by the International Court at The Hague relating to a share repurchase by the BIS in 2001 and has been used by the BIS to determine the pricing of any new shares issued since that time. While the Bank considers that the 30% discount against the BIS’s net asset value continues to be the appropriate basis for valuation, the valuation inputs are not considered to be observable.

The following table reconciles the estimated fair value of the BIS shares determined using Level 3 fair value measurements for the period from January 1 to December 31:
December 31, 2011 December 31, 2010
Opening balance at beginning of year 310.7 318.7
Estimated fair-value (gain)/loss for the year recorded through OCI 14.6 (8.0)
Closing balance at end of year 325.3 310.7

(iii) Financial instruments not measured at fair value

Fair values of securities purchased under resale agreements are determined using market yields to maturity for similar instruments available at the statement of financial position date.

Fair values of Government of Canada bonds are determined based on unadjusted quoted market prices in an active market.

The carrying amount of cash and foreign deposits, advances to members of the Canadian Payments Association, other receivables, deposits and other financial liabilities (which is composed of other liabilities, excluding the portion representing accrued benefits liabilities as described in note 14) approximates fair value, given their short-term nature. The face value of bank notes in circulation is equal to their fair value.

(b) Financial risk

The Bank has a well-established framework for identifying, managing and monitoring pertinent areas of risk. This framework is supported by the Board of Directors, which ensures that the Bank has a robust risk-management process in place. The Bank is exposed to financial risk (credit risk, market risk, and liquidity risk) associated with the management of the Bank’s assets and liabilities. The Financial Risk Office, which is independent of operations, monitors and reports on the financial risks relating to the Bank’s balance sheet. The following is a description of those risks and how the Bank manages its exposure to them.

(i) Credit risk

Credit risk is the risk that a counterparty to a financial contract will fail to discharge its obligations in accordance with agreed-upon terms.

The Bank is exposed to credit risk through its cash and foreign deposits, investment portfolio, advances to members of the Canadian Payments Association, and through market transactions conducted in the form of securities purchased under resale agreements and loans of securities. The maximum exposure to credit risk is estimated to be the carrying value of the items listed above. There are no past due or impaired amounts.

Advances to members of the CPA and securities purchased under resale agreements are fully collateralized loans. Collateral is taken in accordance with the Bank’s publicly disclosed eligibility criteria and margin requirements accessible on its Web site. Strict eligibility criteria are set for all collateral, and the Bank requires excess collateral relative to the size of the loan provided.

In the unlikely event of a counterparty default, collateral can be liquidated to offset credit exposure. The credit quality of collateral is managed through a set of restrictions based on asset type, term to maturity, and the credit ratings of the securities pledged.

Concentration of credit risk

Credit risk of the Bank’s investment portfolio, representing 97% of the carrying value of its total assets (97% in 2010), is low because the securities held are primarily direct obligations of the Government of Canada, which holds a credit rating of AAA. The Bank’s advances to members of the CPA and securities purchased under resale agreements, representing 2% of the carrying value of its total assets (3% in 2010), are collateralized obligations of various Canadian-based financial institutions.

The fair value of collateral held against securities purchased under resale agreements at the end of the reporting period is $1,481.0 million, representing 102% of the amortized cost of $1,447.7 million.

Collateral is concentrated in the following major categories:
December 31, 2011 December 31, 2010 January 1, 2010
$ % $ % $ %
Securities issued or guaranteed by the Government of Canada 1,481.0 100.0 2,126.9 100.0 15,517.3 58.3
Securities issued or guaranteed by a provincial government - - - - 8,621.4 32.3
Securities issued by a municipality - - - - 239.6 0.9
Corporate securities - - - - 1,918.5 7.2
Asset-backed commercial paper - - - - 359.0 1.3
Total fair value of collateral pledged 1,481.0 100.0 2,126.9 100.0 26,655.8 100.0
As a percentage of amortized cost   102%   103%   105%

Large Value Transfer System (LVTS) Guarantee

The Bank is exposed to credit risk through its guarantee of the LVTS. The maximum exposure under this guarantee is described in note 18, Commitments, contingencies and guarantees.

(ii) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk, and other price risk.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Bank’s investment in Government of Canada treasury bills and bonds counteracts the non-interest-bearing bank notes in circulation liability, and supports the Bank’s operational independence to conduct monetary policy. These assets are acquired in proportions that broadly resemble the structure of the Government of Canada’s domestic debt outstanding to reduce interest rate risk from the perspective of the Government of Canada.

The Bank’s exposure to fair-value interest rate risk arises principally through its investment in Government of Canada treasury bills, which are short term in duration, and Government of Canada bonds. The fair value of the treasury bills of Canada portfolio held by the Bank is exposed to fluctuations owing to changes in market interest rates since these securities are classified as AFS and are measured at fair value. Unrealized gains and losses on the treasury bills of Canada portfolio are recognized in the Available-for-sale reserve in the Equity section of the Statement of financial position until they mature or are sold. Government of Canada bonds are carried at amortized cost and are acquired with the intention of holding them to maturity. All other financial assets or liabilities with an interest rate component are carried at amortized cost or at face value.

The Bank’s revenue will vary over time in response to future movements in interest rates. These variations would not affect the ability of the Bank to fulfill its obligations since its revenues greatly exceed its expenses.

The figures below show the effect, at December 31, of an (increase)/decrease of 25 basis points in interest rates on the fair value of the Government of Canada treasury bill portfolio and other comprehensive income.

December 31, 2011 December 31, 2010
Government of Canada treasury bills $(15.9) / 15.4 $(21.3) / 20.0

The Bank’s exposure to interest rate risk in the form of fluctuations in future cash flows of existing financial instruments is limited to Government of Canada deposits and cash and foreign deposits, since these instruments are subject to variable interest rates. The remainder of the Bank’s financial assets and liabilities have either fixed interest rates or are non-interest-bearing.

The figures below show the effect, at December 31, of an increase/(decrease) of 25 basis points in interest rates on the interest expenses paid on Government of Canada deposits.

December 31, 2011 December 31, 2010
Interest expense on Government of Canada deposits $5.0 / (5.0) $17.8 / (17.8)

For all financial instruments, except bank notes in circulation, the future cash flows of the Bank are dependent on the prevailing market rate of interest at the time of renewal.

The following table illustrates interest rate risk relative to future cash flows by considering the expected maturity or repricing dates of existing financial assets and liabilities.

As at December 31, 2011
Weighted-average interest rate % Total Noninterest-sensitive 1 business day to 1 month
FINANCIAL ASSETS
Cash and foreign deposits 0.03 11.7 - 11.7
Loans and receivables
Advances to members of the CPA 1.25 81.5 - 81.5
Securities purchased under resale agreements 1.06 1,447.7 - 1,447.7
Other receivables   1.6 1.6 -
Investments
Government of Canada treasury bills 1.01 2,999.3 - 2,999.3
0.97 6,666.1 - -
1.07 8,880.2 - -
  1.03 18,545.6    
Government of Canada bonds
(see footnote 1)
1.47 452.2 - -
3.47 4,573.2 - -
2.56 23,129.2 - -
4.24 15,398.7 - -
  3.23 43,553.3    
Shares in the BIS   325.3 325.3 -
  63,966.7 326.9 4,540.2
FINANCIAL LIABILITIES
Bank notes in circulation   61,028.8 61,028.8 -
Deposits
Government of Canada 0.86 1,512.5 - 1,512.5
Members of the CPA 0.75 106.7 - 106.7
Other deposits        
Unclaimed balances   466.6 466.6 -
Other 0.85 395.2 - 395.2
Other financial liabilities   132.1 132.1 -
63,641.9 61,627.5 2,014.4
Interest rate sensitivity gap 324.8 (61,300.6) 2,525.8
1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS
Cash and foreign deposits - - - -
Loans and receivables
Advances to members of the CPA - - - -
Securities purchased under resale agreements - - - -
Other receivables - - - -
Investments
Government of Canada treasury bills - - - -
6,666.1 - - -
- 8,880.2 - -
Government of Canada bonds
(see footnote 2)
452.2 - - -
- 4,573.2 - -
- - 23,129.2 -
- - - 15,398.7
Shares in the BIS - - - -
7,118.3 13,453.4 23,129.2 15,398.7
FINANCIAL LIABILITIES
Bank notes in circulation - - - -
Deposits
Government of Canada - - - -
Members of the CPA - - - -
Other deposits
Unclaimed balances - - - -
Other - - - -
Other financial liabilities - - - -
- - - -
Interest rate sensitivity gap 7,118.3 13,453.4 23,129.2 15,398.7
As at December 31, 2010
Weighted-average interest rate % Total Non- interest-sensitive 1 business day to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS
Cash and foreign deposits 0.13 4.7 - 4.7 - - - -
Loans and receivables
Advances to members of the CPA 1.25 22.5 - 22.5 - - - -
Securities purchased under resale agreements 1.02 2,062.4 - 2,062.4 - - - -
Other receivables   2.1 2.1 - - - - -
Investments
Government of Canada treasury bills 0.85 4,498.8 - 4,498.8 - - - -
0.94 8,835.7 - - 8,835.7 - - -
1.17 11,571.6 - - - 11,571.6 - -
1.03 24,906.1            
Government of Canada bonds
(see footnote 3)
9.40 212.7 - - 212.7 - - -
4.08 5,226.8 - - - 5,226.8 - -
3.41 14,683.7 - - - - 14,683.7 -
4.74 13,427.4 - - - - - 13,427.4
  4.08 33,550.6            
Shares in the BIS   310.7 310.7 - - - - -
  60,859.1 312.8 6,588.4 9,048.4 16,798.4 14,683.7 13,427.4
FINANCIAL LIABILITIES
Bank notes in circulation   57,874.2 57,874.2 - - - - -
Deposits
Government of Canada 1.13 1,869.4 - 1,869.4 - - - -
Members of the CPA 0.75 47.5 - 47.5 - - - -
Other deposits
Unclaimed balances   433.5 433.5 - - - - -
Other 0.81 206.4 - 206.4 - - - -
Other financial liabilities   216.9 216.9 - - - - -
  60,647.9 58,524.6 2,123.3 - - - -
Interest rate sensitivity gap   211.2 (58,211.8) 4,465.1 9,048.4 16,798.4 14,683.7 13,427.4

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Bank is exposed to currency risk primarily by holding shares in the BIS. These shares are denominated in Special Drawing Rights (SDR). The SDR serves as the unit of account for the International Monetary Fund (IMF) and its value is based on a “basket” of four major currencies: the euro, the U.S. dollar, the pound sterling and the Japanese yen. Since SDRs are translated into Canadian-dollar equivalents at rates prevailing at the date when the fair value is determined, the carrying value approximates fair value on the reporting date.

Consistent with 2010, at December 31, 2011, the Bank did not hold a significant amount of U.S. dollars.

Given the small size of the net foreign currency exposure relative to the total assets of the Bank, currency risk is not considered significant.

Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from changes in interest and exchange rates), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

The Bank is exposed to other price risk through its investment in BIS. For accounting purposes, the Bank treats BIS shares as AFS and the fair value of these shares is estimated on the basis of the BIS’s net asset value, less a discount of 30%. Accordingly, these shares are revalued to reflect movements in the net asset value of the BIS and in the Canadian dollar. The price risk faced on BIS shares is incidental to the general reasons for holding them and is immaterial compared with other market risks faced by the Bank.

(iii) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. As shown in the following table, the Bank’s largest liability is Bank notes in circulation. As a counterpart to this non-interest-bearing liability with no fixed maturity, the Bank holds a portfolio of highly liquid, interest-bearing securities. In the event of an unexpected redemption of bank notes, the Bank has the ability to settle the obligation by selling its assets.

As the nation’s central bank, the Bank is the ultimate source of liquid funds to the Canadian financial system, and has the power and operational ability to create Canadian-dollar liquidity in unlimited amounts at any time. This power is exercised within the Bank’s commitment to keep inflation low, stable, and predictable.

Large Value Transfer System (LVTS) Guarantee

The Bank is exposed to liquidity risk through its guarantee of the LVTS. The maximum exposure under this guarantee is described in note 18, Commitments, contingencies and guarantees.

The following table presents a maturity analysis of the Bank’s financial assets and liabilities. The balances in this table do not correspond to the balances in the Statement of financial position, since the table presents all cash flows on an undiscounted basis.

As at December 31, 2011
Total No fixed maturity 1 business day 1 business day to 1 month
FINANCIAL ASSETS
Cash and foreign deposits 11.7 11.7 - -
Loans and receivables
Advances to members of the CPA 81.5 - 81.5 -
Securities purchased under resale agreements 1,447.7 - - 1,447.7
Other receivables 1.6 - - 1.6
Investments
Government of Canada treasury bills 18,600.0 - - 3,000.0
Government of Canada bonds
(see footnote 4)
42,994.6 - - -
Shares in the BIS 325.3 325.3 - -
63,462.4 337.0 81.5 4,449.3
FINANCIAL LIABILITIES
Bank notes in circulation 61,028.8 61,028.8 - -
Deposits
Government of Canada 1,512.5 1,512.5 - -
Members of the CPA 106.7 - 106.7 -
Other deposits Unclaimed balances 466.6 466.6 - -
Other 395.2 395.2 - -
Other liabilities 132.1 - - 132.1
63,641.9 63,403.1 106.7 132.1
Net maturity difference (179.5) (63,066.1) (25.2) 4,317.2
1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS
Cash and foreign deposits - - - -
Loans and receivables
Advances to members of the CPA - - - -
Securities purchased under resale agreements - - - -
Other receivables - - - -
Investments
Government of Canada treasury bills 6,675.0 8,925.0 - -
Government of Canada bonds
(see footnote 5)
450.0 4,560.0 22,990.8 14,993.8
Shares in the BIS - - - -
7,125.0 13,485.0 22,990.8 14,993.8
FINANCIAL LIABILITIES
Bank notes in circulation - - - -
Deposits
Government of Canada - - - -
Members of the CPA - - - -
Other deposits Unclaimed balances - - - -
Other - - - -
Other liabilities - - - -
- - - -
Net maturity difference 7,125.0 13,485.0 22,990.8 14,993.8

In cases where counterparties to securities purchased under resale agreements substitute collateral after the outset of an agreement, portions of the carrying values presented may mature earlier than as presented, where the amount maturing early is dependent on the value of the collateral being substituted. Where collateral has been substituted, agreements are typically re-established under the same terms and conditions. The information presented in the above table is prepared according to agreements in place as at December 31, 2011.

Liabilities with no fixed maturity include Bank notes in circulation and Government of Canada Deposits. Historical experience has shown that bank notes in circulation provide a stable source of long-term funding for the Bank. Government of Canada Deposits are deposits held in the Bank’s capacity as the Government of Canada’s fiscal agent.

As at December 31, 2010
Total No fixed maturity 1 business day 1 business day to 1 month
FINANCIAL ASSETS
Cash and foreign deposits 4.7 4.7 - -
Loans and receivables
Advances to members of the CPA 22.5 - 22.5 -
Securities purchased under resale agreements 2,062.4 - - 2,062.4
Other receivables 2.1 - - 2.1
Investments
Government of Canada treasury bills 25,000.0 - - 4,500.0
Government of Canada bonds (see footnote 6) 33,072.1 - - -
Shares in the BIS 310.7 310.7 - -
60,474.5 315.4 22.5 6,564.5
FINANCIAL LIABILITIES
Bank notes in circulation 57,874.2 57,874.2 - -
Deposits
Government of Canada 1,869.4 1,869.4 - -
Members of the CPA 47.5 - 47.5 -
Other deposits
Unclaimed balances 433.5 433.5 - -
Other 206.4 206.4 - -
Other liabilities 216.9 - - 216.9
60,647.9 60,383.5 47.5 216.9
Net maturity difference (173.4) (60,068.1) (25.0) 6,347.6
1 to 3 months 3 to 12 months 1 to 5 years Over 5 years
FINANCIAL ASSETS
Cash and foreign deposits - - - -
Loans and receivables
Advances to members of the CPA - - - -
Securities purchased under resale agreements - - - -
Other receivables - - - -
Investments
Government of Canada treasury bills 8,850.0 11,650.0 - -
Government of Canada bonds (see footnote 7) 206.6 5,200.9 14,585.8 13,078.8
Shares in the BIS - - - -
9,056.6 16,850.9 14,585.8 13,078.8
FINANCIAL LIABILITIES
Bank notes in circulation - - - -
Deposits
Government of Canada - - - -
Members of the CPA - - - -
Other deposits
Unclaimed balances - - - -
Other - - - -
Other liabilities - - - -
- - - -
Net maturity difference 9,056.6 16,850.9 14,585.8 13,078.8
8. Property and equipment
Land and Buildings Computer Equipment Other Equipment Total

2011

Cost

Balances, January 1, 2011 197.3 25.8 122.2 345.3
Additions 21.1 10.2 4.9 36.2
Disposals (0.2) (5.2) (27.6) (33.0)
Transfers to other asset categories - - - -
Balances, December 31, 2011 218.2 30.8 99.5 348.5
Depreciation
Balances, January 1, 2011 (80.1) (13.9) (98.3) (192.3)
Depreciation expense (5.0) (3.5) (4.0) (12.5)
Disposals - 5.2 27.6 32.8
Transfers to other asset categories - - - -
Balances, December 31, 2011 (85.1) (12.2) (74.7) (171.9)
Carrying amounts
At January 1, 2011 117.2 11.9 23.9 153.0
At December 31, 2011 133.1 18.6 24.8 176.6
Projects in progress 2011
Included in Net book value 25.1 12.3 4.6 42.0
Additions during 2011 20.5 10.2 4.4 35.1
Commitments at December 31, 2011 0.6 0.3 - 0.9

Projects in progress consist primarily of $26.2 million related to the Enhanced Business Continuity initiative (December 31, 2010 — $3.0 million; January 1, 2010 — $0.1 million), $4.9 million related to the Head Office Renewal Program (December 31, 2010 — $1.6 million; January 1, 2010 — $0.1 million), $1.2 million related to the Currency Systems Evolution Program (December 31, 2010 — $1.2 million; January 1, 2010 — $Nil) and $1.0 million related to the BPS adaptation (December 31, 2010 — $Nil; January 1, 2010 — $Nil). The completed streams of the Analytic Environment Program (December 31, 2010 — $3.1 million; January 1, 2010 — $3.1 million) were put in service in 2011 and removed from Projects in progress.

Land and Buildings Computer Equipment Other Equipment Total

2010

Cost

Balances, January 1, 2010 185.8 29.2 130.0 345.0
Additions 5.6 2.2 2.9 10.7
Disposals - (5.8) (4.8) (10.6)
Transfers to other asset categories 5.9 0.2 (5.9) 0.2
Balances, December 31, 2010 197.3 25.8 122.2 345.3
Depreciation
Balances, January 1, 2010 (74.1) (16.1) (99.6) (189.8)
Depreciation expense (5.2) (3.6) (3.8) (12.6)
Disposals - 5.8 4.3 10.1
Transfers to other asset categories (0.8) - 0.8 -
Balances, December 31, 2010 (80.1) (13.9) (98.3) (192.3)
Carrying amounts
At January 1, 2010 111.7 13.1 30.4 155.2
At December 31, 2010 117.2 11.9 23.9 153.0
Projects in progress 2010
Included in Net book value 5.9 5.2 1.1 12.2
Additions during 2010 5.3 2.1 1.1 8.5
Commitments at December 31, 2010 1.5 0.1 1.1 2.7
9. Intangible assets
Internally generated software Other software Total

2011

Cost

Balances, January 1, 2011 42.8 16.8 59.6
Additions - 23.5 23.5
Disposals - - -
Transfers to other asset categories - (0.1) (0.1)
Balances, December 31, 2011 42.8 40.2 83.0
Amortization
Balances, January 1, 2011 (21.9) (11.8) (33.7)
Amortization expense (3.9) (0.8) (4.7)
Disposals - - -
Transfers to other asset categories - - -
Balances, December 31, 2011 (25.8) (12.6) (38.4)
Carrying amounts
At January 1, 2011 20.9 5.0 25.9
At December 31, 2011 17.0 27.6 44.6
Projects in progress 2011
Included in Net book value - 25.6 25.6
Additions during 2011 - 23.5 23.5
Commitments at December 31, 2011 0.9 - 0.9

Projects in progress consist primarily of $11.2 million related to the Auctions and Market Applications Program (December 31, 2010 — $1.0 million; January 1, 2010 — $Nil), $7.8 million related to the Currency Systems Evolution Program (December 31, 2010 — $0.6 million; January 1, 2010 — $Nil), $1.5 million related to the BPS adaptation (December 31, 2010 — $Nil; January 1, 2010 — $Nil) and $4.0 million related to the data management stream of the Analytic Environment Program. The completed streams of the Analytic Environment Program (December 31, 2010 — $13.4 million; January 1, 2010 — $11.2 million) were put in service in 2011 and removed from Projects in progress.

Internally generated software Other software Total

2010

Cost

Balances, January 1, 2010 48.0 13.0 61.0
Additions 2.2 2.2 4.4
Disposals (5.6) - (5.6)
Transfers to other asset categories (1.8) 1.6 (0.2)
Balances, December 31, 2010 42.8 16.8 59.6
Amortization
Balances, January 1, 2010 (26.0) (11.3) (37.3)
Amortization expense (1.5) (0.5) (2.0)
Disposals 5.6 - 5.6
Transfers to other asset categories - - -
Balances, December 31, 2010 (21.9) (11.8) (33.7)
Carrying amounts
At January 1, 2010 22.0 1.7 23.7
At December 31, 2010 20.9 5.0 25.9
Projects in progress 2010
Included in Net book value 11.7 4.0 15.7
Additions during 2010 2.2 2.2 4.4
Commitments at December 31, 2010 - - -
10. Other assets
December 31, 2011 December 31, 2010 January 1, 2010
Accrued pension benefit asset (note 14) 31.4 166.6 196.3
All other assets 27.9 11.5 15.3
Total other assets 59.3 178.1 211.6

11. Bank notes in circulation

In accordance with the Bank of Canada Act, the Bank has the sole authority to issue bank notes for circulation in Canada. A breakdown by denomination is presented below.

December 31, 2011 December 31, 2010 January 1, 2010
$5 1,138.0 1,038.4 1,054.8
$10 1,197.3 1,159.8 1,125.7
$20 16,894.1 16,808.2 16,643.0
$50 9,447.7 8,443.7 7,773.0
$100 31,027.1 28,964.9 27,535.6
Other bank notes 1,324.6 1,459.2 1,515.8
Bank notes in circulation 61,028.8 57,874.2 55,647.9

Other bank notes include denominations that are no longer issued but remain as legal tender. Bank notes in circulation are non-interest-bearing liabilities and are due on demand.

12. Deposits

The liabilities within this category consist of $2,481.0 million in Canadian-dollar demand deposits (CAN$2,556.8 million at December 31, 2010, and CAN$15,550.2 million at January 1, 2010). The Bank pays interest on the deposits for the Government of Canada, banks and other financial institutions at market-related rates, and interest expense on deposits is included in the Statement of Comprehensive Income. Further information on the rates of interest is presented in the interest rate risk table in note 7.

13. Other liabilities
December 31, 2011 December 31 2010 January 1, 2010
Post-employment defined-benefit obligations (note 14) 180.7 151.4 128.1
Accrued transfer payment to the Receiver General for Canada 78.4 167.5 23.6
All other liabilities 53.7 49.4 38.1
Total other liabilities 312.8 368.3 189.8

The accrued transfer payment to the Receiver General for Canada is included in the $1,067 million transfer to the Receiver General for the year presented in the Statement of changes in equity (December 31, 2010 — $1,192.5 million).

For the year ended December 31, 2011, an amount of $126.1 million related to 2010 net income and $1,030 million related to 2011 net income was remitted to the Receiver General for Canada ($23.6 million in 2010 related to 2009 net income). Unpaid net income of $78.4 million (December 31, 2010 — $167.5 million) is included under Other liabilities on the Statement of financial position.

In 2010, the Bank recognized employee severance expenses in connection with two restructuring initiatives: a program to achieve greater operational efficiency and effectiveness which resulted in a reduction in the number of corporate administration employees in 2011, and the sale of its Optical Security Material operations in 2011. In relation to the two restructurings, an expense of $11 million for employee severance costs was recognized in 2010 in Staff costs and accrued in Other liabilities. Payments made in 2011 in relation to the two restructuring initiatives are $4.1 million and the remaining accrued liability amounts to $6.9 million.

14. Employee benefit plans

The Bank measures its accrued benefits obligations and fair value of plan assets for accounting purposes as at December 31 of each year. The most recent actuarial valuation for funding purposes of the Registered Pension Plan was done as of January 1, 2011, and the next required valuation will be as of January 1, 2012.

The total cash payment for employee future benefits for 2011 was $52.2 million ($72.7 million in 2010), consisting of $43.1 million ($64.1 million in 2010) in cash contributed by the Bank to its pension plans and $9.1 million ($8.6 million in 2010) in cash payments directly to beneficiaries for its other post-employment benefit plans. The total cash payments expected for 2012 are $65.5 million, consisting of $57.7 million in cash contributed to its pension plans and $7.8 million in cash payments to its other post-employment benefit plans.

Benefit obligations and plan assets of post-employment defined-benefit and long-term benefit plans were composed of the following components during the year:
Pension benefit plans (see footnote 8) Other benefit plans
December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010
Plan assets
Fair value of plan assets at beginning of year 1,081.8 934.8 - -
Actual return on plan assets
Expected return on plan assets 68.8 60.3 - -
Actuarial gains (losses) (18.1) 53.0 - -
50.7 113.3 - -
Bank contributions 43.1 64.1 - -
Employee contributions 11.0 9.2 - -
Benefit payments and transfers (43.5) (39.6) - -
Fair value of plan assets at end of year (see footnote 9) 1,143.1 1,081.8 - -
Benefit obligation
Benefit obligation at beginning of year 916.7 738.5 149.9 128.1
Current service cost 17.3 14.4 6.0 5.0
Interest cost 52.3 51.3 8.3 8.5
Employee contributions 11.0 9.2 - -
Past service costs 1.4 - - -
Actuarial losses 172.5 142.9 9.6 16.9
Benefit payments and transfers (43.5) (39.6) (9.1) (8.6)
Benefit obligation at end of year 1,127.7 916.7 164.7 149.9
Employee benefit asset/ (liability) 15.4 165.1 (164.7) (149.9)
Accrued pension benefit asset 31.4 166.6 - -
Post-employment definedbenefit obligations (16.0) (1.5) (164.7) (149.9)
Employee benefit asset/ (liability) 15.4 165.1 (164.7) (149.9)
Benefit plan expenses recognized in the Statement of Comprehensive Income are composed of the following components:
Pension benefit plans Other benefit plans
December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010
Current service cost, net of employee contributions 17.3 14.4 6.0 5.0
Interest cost 52.3 51.3 8.3 8.5
Actuarial (gain)/loss - - (2.3) 1.0
Expected return on plan assets (68.8) (60.3) - -
Past services costs 1.4 - - -
Benefit plan expense recognized 2.2 5.4 12.0 14.5

Actuarial gains and losses pertaining to post-employment benefit plans are recognized in Other Comprehensive Income and cumulated in Equity in the Actuarial gains reserve.

Cumulative actuarial losses recognized in Other Comprehensive Income
  Pension benefit plans Other benefit plans
December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010
Cumulative actuarial losses recognized, beginning of year (89.9) - (15.9) -
Actuarial losses recognized in current year (190.5) (89.9) (11.9) (15.9)
Cumulative actuarial losses recognized, end of year (280.4) (89.9) (27.8) (15.9)
The significant assumptions used are as follows (on a weighted-average basis):
  Pension benefit plans Other benefit plans
December 31, 2011 December 31, 2010 December 31, 2011 December 31, 2010
Accrued benefit obligation as at December 31
Discount rate 4.60% 5.75% 4.44% 5.50%
Rate of compensation increase 3.30% 3.50% 3.30% 3.50%
+ merit + merit + merit + merit
Benefit plan expense for year ended December 31
Discount rate 5.75% 7.00% 5.50% 6.60%
Expected rate of return on assets 6.50% 6.50% 0% 0%
Rate of compensation increase 3.30% 3.50% 3.50% 3.50%
+ merit + merit + merit + merit
Assumed medical cost trend
Initial medical cost trend rate     6.75% 7.00%
Medical cost trend rate declines to     4.50% 4.50%
Year that the rate reaches the ultimate trend rate     2029 2029

The discount rate is determined by reference to Canadian AA-corporate bonds with terms to maturity approximating the duration of the obligation.

The expected rate of return on assets that is determined by management relates to the entire plan asset portfolio on a weighted-average basis, and is based on market expectations, at the beginning of the period, for returns over the entire life of the obligation. As such, the expected rate of return may not be indicative of short-term performance of Plan assets or of market conditions generally.

The assumption for life expectancy for the scheme valuations assumes that a male member reaching 60 in 2011 will live another 25 years (2010: 25 years) and a female member 27 years (2010: 27 years). The mortality assumptions used in the scheme valuations are based on standard tables published by the Society of Actuaries, which were adjusted in line with both current industry and the actual experience of the relevant scheme.

Sensitivity analysis Change in obligation Change in expense
Impact of 0.50 percentage point increase/decrease in assumptions
Pension benefit plans
Change in discount rate 96.4 / (84.9) 2.6 / (2.3)
Change in long-term return on plan assets n.a. / n.a. 5.3 / (5.3)
Other benefit plans
Change in discount rate 13.6 / (12.3) 0.4 / (0.3)
Impact of 1.00 percentage point increase/decrease in assumptions
Change in medical cost trend rates 25.1 / (19.5) 2.2 / (1.5)
Summary of historical adjustments December 31, 2011 December 31, 2010 January 1, 2010
Fair value of assets 1,143.1 1,081.8 934.8
Defined-benefit obligation (1,292.4) (1,066.6) (866.6)
Surplus (deficit) (149.3) 15.2 68.2
Experience adjustments on plan assets 18.1 (53.0) -
Experience adjustments on plan benefits 182.1 159.8 -

15. Equity

The Bank’s objectives in managing its capital, the elements of which are outlined in the table below, are in compliance with the Bank of Canada Act. The Bank is not in violation of any externally imposed capital requirements at the end of the reporting year. The Bank’s objectives in managing its capital have not changed from the previous year.

December 31, 2011 December 31, 2010 January 1, 2010
Share capital 5.0 5.0 5.0
Statutory reserve 25.0 25.0 25.0
Special reserve 100.0 100.0 100.0
Available-for-sale reserve 294.6 271.0 287.5
Actuarial gains reserve - 14.1 119.7
Retained earnings - 1.7 31.7
424.6 416.8 568.9

Share capital

The authorized capital of the Bank is $5.0 million divided into 100 000 shares with a par value of $50 each. The shares are fully paid and have been issued to the Minister of Finance, who is holding them on behalf of the Government of Canada.

Statutory reserve

The statutory reserve was accumulated out of net income until it reached the stipulated maximum amount of $25.0 million in 1955.

Special reserve

The special reserve was created in 2007 further to an amendment to the Bank of Canada Act to offset potential unrealized valuation losses due to changes in fair value of the Bank’s available-for-sale portfolio. The amount held in the special reserve is reviewed regularly for appropriateness using value-at-risk analysis and scenario-based stress tests and may be amended, pursuant to a resolution passed by the Board of Directors. The value-at-risk analysis uses historical data to estimate the maximum possible extent of unrealized valuation losses of the Bank’s treasury bill portfolio. The scenario-based stress tests assess the impact of a rapid increase in interest rates on the value of the Bank’s treasury bill portfolio. This reserve is subject to a ceiling of $400 million; an initial amount of $100 million was established in September 2007.

Available-for-sale reserve

The available-for-sale reserve represents cumulative movements in the fair value of the Bank’s available-for-sale portfolios, as shown below.

December 31, 2011 December 31, 2010 January 1, 2010
Government of Canada treasury bills 7.4 (1.7) 6.8
BIS shares 287.2 272.7 280.7
Available-for-sale reserve 294.6 271.0 287.5

Actuarial gains reserve

The actuarial gains reserve was established upon the Bank’s transition to IFRS at an initial amount of $119.7 million and accumulates the net actuarial gains and losses recognized on the Bank’s post-employment defined-benefit plans subsequent to transition.

December 31, 2011 December 31, 2010 January 1, 2010
Actuarial gains reserve created on transition to IFRS 119.7 119.7 119.7
Accumulated actuarial loss (119.7) (105.6) -
Actuarial gains reserve - 14.1 119.7

Retained Earnings

The net income of the Bank, less any allocation to reserves, is considered to be ascertained surplus and is transferred to the Receiver General for Canada, consistent with the requirement of section 27 of the Bank of Canada Act. Prior to 2010, the Bank did not hold Retained earnings.

Effective January 1, 2010, based on an agreement signed with the Minister of Finance, the Bank will deduct from its remittances to the Receiver General and hold within Retained earnings an amount equal to unrealized losses on AFS financial assets, unrealized actuarial losses on post-employment benefit plans and other unrealized or non-cash losses that would expose the Bank to the risk of negative capital arising as a result of changes in accounting standards or legislation. As at December 31, 2011, the Bank had withheld $188.4 million from its remittances ($1.7 million in 2010).

16. Operating expenses by function

Expenses are reported below on the basis of the four functions of the Bank described in note 1.

December 31, 2011 December 31, 2010
Monetary policy 68.3 72.8
Financial system 51.0 52.6
Currency 137.1 145.5
Funds management 96.7 109.9
Total expenses 353.1 380.8

17. Leases

(a) Operating leases commitments

The Bank occupies leased premises in Halifax, Montréal, Toronto, Calgary, and Vancouver. The minimum payments are determined at the beginning of the lease and may vary during the term of the lease. Contingent rent on premises leases is based on building operating costs; contingent rent is based on usage for office equipment leases.

At December 31, 2011, the future minimum payments are $10.7 million for rent, real estate taxes and building operations. The expiry dates vary for each lease, from October 2012 to October 2020.

Premises leases
December 31, 2011 December 31, 2010 January 1, 2010
Commitments
Due within one year 1.6 1.4 1.6
Due within one to five years 4.5 3.9 3.7
Due later than five years 4.6 2.3 1.8
Total premises lease commitments 10.7 7.6 7.1

(b) Lease payments receivable

The Bank owns buildings in Ottawa, Montréal and Toronto and leases space to Government of Canada departments and agencies under operating leases. Under the current non-cancellable lease agreements, the total minimum lease payments receivable and contingent rent included in income are as follows:

Lease payments receivable
December 31, 2011 December 31, 2010 January 1, 2010
Receivable within one year 4.1 3.8 2.9
Receivable within one to three years 2.7 2.0 5.8
Total lease payments receivable 6.8 5.8 8.7

18. Commitments, contingencies and guarantees

(a) Long-term contracts other than leases

The Bank has a long-term contract with an outside service provider for retail debt services that expires in 2021. At December 31, 2011, fixed payments totalling $193.2 million remained, plus a variable component based on the volume of transactions.

In 2010, the Bank entered into a long-term agreement with an outside service provider for data centre services that commences in 2013 and expires in 2022. Fixed payments over the term of the agreement totalling $17.6 million will begin on January 1, 2013.

Minimum annual payments for long-term contracts other than lease
Outsourced services
Due within one year 20.3
Due within one to three years 44.2
Due within three to five years 44.2
Thereafter 102.1
Total minimum annual payments 210.8

(b) Foreign currency contracts

The Bank is a counterparty to several foreign currency swap facilities as follows:
Maximum available
Bilateral liquidity swap facilities with central banks
Bank of Japan (denominated in Japanese yen) Unlimited
Swiss National Bank (denominated in Swiss francs) Unlimited
Bank of England (denominated in British pounds) Unlimited
European Central Bank (denominated in euros) Unlimited
Federal Reserve Bank of New York (denominated in U.S. dollars) 30,000.0
Other swap facilities
Exchange Fund Account of Canada (denominated in Canadian dollars) Unlimited
Federal Reserve Bank of New York (denominated in U.S. dollars) 2,000.0
Banco de México (denominated in Canadian dollars) 1,000.0

Bilateral liquidity swap facilities with central banks

The temporary bilateral liquidity swap facilities were established to provide liquidity in each jurisdiction in any of their currencies, should market conditions warrant.

The existing US$30 billion facility with the Federal Reserve Bank of New York expires on February 1, 2013. The swap facilities with the Bank of Japan, the Swiss National Bank, the Bank of England and the European Central Bank were established in December 2011 for an initial term expiring on February 1, 2013.

These facilities can be structured as either Canadian dollar liquidity or foreign currency liquidity swap arrangement and can be initiated by either party. The exchange rate applicable to the swap facilities is based on the prevailing market spot exchange rate as mutually agreed upon by the parties.

Other swap facilities

The other swap facilities established with the Federal Reserve Bank of New York and with the Banco de México have indefinite terms and are subject to annual renewal.

The Bank is also party to a standing foreign currency swap facility with the Exchange Fund Account of Canada. There is no stated maximum amount under this agreement.

None of the liquidity or other swaps were accessed, by either party, in 2011 or 2010. No related commitments exist at December 31, 2011 ($Nil at December 31, 2010, and $Nil at January 1, 2010).

(c) Contingency

The 9 441 shares in the BIS have a nominal value of 5 000 special drawing rights (SDRs) per share, of which 25%, i.e. SDR1,250, is paid up. The balance of SDR3,750 is callable at three months’ notice by decision of the BIS Board of Directors. The Canadian equivalent of this contingent liability was $55.3 million at December 31, 2011 ($54.6 million at December 31, 2010, and $58.1 million at January 1, 2010), based on prevailing exchange rates.

(d) Guarantees

In the normal course of operations, the Bank enters into certain guarantees, which are described below.

Large Value Transfer System (LVTS) Guarantee

The LVTS is a large-value payment system, owned and operated by the CPA. Any deposit-taking financial institution that is a member of the CPA can participate in the LVTS, provided that it maintains a settlement account at the Bank, has the facilities to pledge collateral for LVTS purposes, and meets certain technical requirements. The system’s risk-control features, which include caps on net debit positions and collateral to secure the use of overdraft credit, are sufficient to permit the system to obtain the necessary liquidity to settle in the event of the failure of the single LVTS participant having the largest possible net amount owing. The Bank guarantees to provide this liquidity, and in the event of the single participant failure, the liquidity loan will be fully collateralized. In the extremely unlikely event that there were defaults by more than one participant during the LVTS operating day, in an aggregate amount in excess of the largest possible net amount owing by a single participant, there would not likely be enough collateral to secure the amount of liquidity that the Bank would need to provide to settle the system. This might result in the Bank having unsecured claims on the defaulting participants in excess of the amount of collateral pledged to the Bank to cover the liquidity loans. The Bank would have the right, as an unsecured creditor, to recover any amount of its liquidity loan that was unpaid. The amount potentially at risk under this guarantee is not determinable, since the guarantee would be called upon only if a series of extremely low-probability events were to occur. No amount has ever been provided for in the liabilities of the Bank, and no amount has ever been paid under this guarantee.

Other indemnification agreements

In the normal course of operations, the Bank provides indemnification agreements with various counterparties in transactions such as service agreements, software licences, leases and purchases of goods. Under these agreements, the Bank agrees to indemnify the counterparty against loss or liability arising from acts or omissions of the Bank in relation to the agreement. The nature of the indemnification agreements prevents the Bank from making a reasonable estimate of the maximum potential amount that the Bank would be required to pay such counterparties.

(e) Insurance

The Bank does not insure against direct risks of loss to the Bank, except for potential liabilities to third parties and where there are legal or contractual obligations to carry insurance. Any costs arising from risks not insured are recorded in the accounts at the time they can be reasonably estimated.

19. Related parties

The Bank is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. To achieve its monetary policy objectives, the Bank maintains a position of structural and functional independence from the Government of Canada through its ability to fund its own operations without external assistance and through its management and governance.

In the normal course of its operations, the Bank enters into transactions with related parties, and material transactions and balances are presented in these financial statements. Not all transactions between the Bank and government-related entities have been disclosed as permitted by the partial exemption available to wholly owned government entities in International Accounting Standard 24 Related Party Disclosures (IAS 24).

The Bank provides funds management, fiscal agent and banking services to the Government of Canada, as mandated by the Bank of Canada Act, and does not recover the costs of these services.

Bank of Canada pension plans

The Bank provides management, investment and administrative support to the Bank of Canada registered Pension Plan. Services in the amount of $0.6 million ($0.5 million in 2010) were fully recovered from the Plan in 2011.

Key management personnel and compensation

The key management personnel, responsible for planning, directing and controlling the activities of the Bank, include the members of the Governing Council, the Management Council and the Board of Directors. The number of key management personnel as at December 31, 2011, was 23 (23 in 2010).

The compensation of key management personnel is presented in the following table:
December 31, 2011 December 31, 2010
Short-term employee benefits
(see footnote 10)
3.1 3.0
Post-employment benefits 0.7 0.5
Directors’ fees 0.3 0.3
Total compensation 4.1 3.8

Short-term employee benefits and post-employment benefits apply to Bank of Canada employees only.

There were no other long-term employee benefit costs or termination benefits related to key management personnel in 2011.

20. Explanation of transition to IFRS

As stated in note 2, these are the Bank’s first annual IFRS financial statements. The accounting policies set out in note 3 have been applied in preparing the financial statements for the year ended December 31, 2011, the comparative information presented in these IFRS financial statements for the year ended December 31, 2010, and in preparation of an opening IFRS Statement of financial position at January 1, 2010 (the Bank’s date of transition to IFRS).

In preparing its opening IFRS Statement of financial position, the Bank has adjusted amounts reported previously in financial statements prepared in accordance with former Canadian GAAP. An explanation of how the transition from previous Canadian GAAP to IFRS has affected the Bank’s financial position and comprehensive income is set out in the following tables and the notes that accompany the tables.

Reconciliation of cash flows

There were no differences in reported cash flows under IFRS as compared to Canadian GAAP.

BANK OF CANADA

Reconciliation of financial position and equity as at January 1, 2010
(Millions of dollars)
Note Canadian GAAP Effect of transition to IFRS Opening IFRS
ASSETS
Cash and foreign deposits   20.4 - 20.4
Loans and receivables
Securities purchased under resale agreements   25,374.8 - 25,374.8
Other receivables   2.2 - 2.2
  25,377.0 - 25,377.0
Investments
Government of Canada treasury bills   13,684.0 - 13,684.0
Government of Canada bonds   31,986.2 - 31,986.2
Other investments (a) 38.0 280.7 318.7
  45,708.2 280.7 45,988.9
Property and equipment (b, g) 126.8 28.4 155.2
Intangible assets (g) 23.7 - 23.7
Other assets (c) 98.6 113.0 211.6
Total assets   71,354.7 422.1 71,776.8
LIABILITIES AND EQUITY
Bank notes in circulation   55,467.9 - 55,467.9
Deposits
Government of Canada   11,847.6 - 11,847.6
Members of the Canadian Payments Association   2,999.6 - 2,999.6
Other deposits   703.0 - 703.0
  15,550.2 - 15,550.2
Other liabilities (c, d, e) 199.8 (10.0) 189.8
  71,217.9 (10.0) 71,207.9
Equity (a, b, c, d, e) 136.8 432.1 568.9
Total liabilities and equity   71,354.7 422.1 71,776.8

(See the notes to the reconciliations of Financial Position
and Equity, and Comprehensive Income.)

BANK OF CANADA

Reconciliation of financial position and equity as at December 31, 2010
(Millions of dollars)
Note Canadian GAAP Effect of transition to IFRS IFRS
ASSETS
Cash and foreign deposits   4.7 - 4.7
Loans and receivables
Securities purchased under resale agreements   2,062.4 - 2,062.4
Advances to members of the Canadian Payments Association   22.5 - 22.5
Other receivables   2.1 - 2.1
  2,087.0 - 2,087.0
Investments
Government of Canada treasury bills   24,906.1 - 24,906.1
Government of Canada bonds   33,550.6 - 33,550.6
Other investments (a) 38.0 272.7 310.7
  58,494.7 272.7 58,767.4
Property and equipment (b, g) 123.4 29.6 153.0
Intangible assets (g) 25.9 - 25.9
Other assets (c) 149.1 29.0 178.1
Total assets   60,884.8 331.3 61,216.1
LIABILITIES AND EQUITY
Bank notes in circulation   57,874.2 - 57,874.2
Deposits
Government of Canada   1,869.4 - 1,869.4
Members of the Canadian Payments Association   47.5 - 47.5
Other deposits   639.9 - 639.9
  2,556.8 - 2,556.8
Other liabilities (c, d, e) 323.8 44.5 368.3
    60,754.8 44.5 60,799.3
Equity (a, b, c, d, e) 130.0 286.8 416.8
Total liabilities and equity   60,884.8 331.3 61,216.1

(See the notes to the reconciliations of Financial Position
and Equity, and Comprehensive Income.)

BANK OF CANADA

Reconciliation of comprehensive income for the year ended December 31, 2010 (Millions of dollars)
Note Canadian GAAP Effect of transition to IFRS IFRS

INCOME

Net interest income

Interest revenue

Interest earned on investments   1,525.3 - 1,525.3
Interest earned on securities purchased under resale agreements   38.4 - 38.4
Other interest revenue (g) 0.1 - 0.1
  1,563.8 - 1,563.8
Interest expense
Interest expense on deposits   (42.0) - (42.0)
  1,521.8 - 1,521.8
Dividend revenue   10.1 - 10.1
Other revenue (g) 11.4 - 11.4
Total income   1,543.3 - 1,543.3
EXPENSES
Staff costs (c, d) 179.3 (8.5) 170.8
Bank note research, production and processing   53.7 - 53.7
Premises maintenance   28.7 - 28.7
Technology and telecommunications (g) 34.3 - 34.3
Depreciation and amortization (b) 16.4 (1.2) 15.2
Other operating expenses   78.1 - 78.1
Total expenses 390.5 (9.7) 380.8
NET INCOME 1,152.8 9.7 1,162.5
OTHER COMPREHENSIVE INCOME
Change in fair value of available-for-sale financial assets (a) (8.5) (8.0) (16.5)
Actuarial losses (c) - (105.6) (105.6)
Other comprehensive income (8.5) (113.6) (122.1)
COMPREHENSIVE INCOME 1,144.3 (103.9) 1,040.4

(See the notes to the reconciliations of Financial Position a
nd Equity, and Comprehensive Income.)

Notes to the reconciliations of Financial Position and Equity, and Comprehensive Income

Measurement changes

(a) In accordance with IAS 39, investments in equity instruments classified as AFS that do not have a quoted market price in an active market but for which a market value can be reasonably estimated have been recognized at fair value. The Bank’s investments in BIS shares are classified as AFS and were carried at cost under previous Canadian GAAP.

The impact of the change is summarized as follows:
Statement of Comprehensive Income Year ended December 31, 2010
Decrease in Other Comprehensive Income 8.0  
Statement of Financial Position December 31, 2010 January 1, 2010
Increase in Other investments 272.7 280.7
Change in Equity    
Increase in Available-for-sale reserve (272.7) (280.7)

(b) In accordance with International Accounting Standard 16 (IAS 16), each component of an item of property and equipment with a cost that is significant in relation to the total cost of an item is depreciated separately. At the date of transition, the only items of Property and equipment impacted were the buildings owned by the Bank. The effect of the componentization resulted in changes to the useful lives over which these assets are depreciated.

The impact of the change is summarized as follows:
Statement of Comprehensive Income Year ended December 31, 2010
Decrease in Depreciation expense 1.2  
Statement of Financial Position December 31, 2010 January 1, 2010
 Increase in Property and equipment 29.6 28.4
Change in Equity    
Increase in Retained earnings (29.6) (28.4)

(c) In accordance with International Accounting Standard 19 (IAS 19), the Bank has adopted the policy to recognize all actuarial gains and losses on post-employment defined benefits immediately in Other Comprehensive Income. At the date of transition, all previously unamortized transitional obligations and assets, vested past service costs and credits, and net actuarial losses were recognized in Retained earnings.

Also recognized in Retained earnings were the changes relating to the adoption of IAS 19, which include using discount rates determined by reference to market yields of AA-corporate bonds.

Subsequent to the recording of IFRS transition adjustments, the net impact of the transition related to post-employment defined benefits was transferred to establish the actuarial gains reserve.

The net impact of the changes is summarized as follows:
Statement of Comprehensive Income Year ended December 31, 2010
Decrease in benefit expenses 9.3  
Actuarial losses taken to Actuarial gains reserve (105.6)  
Statement of Financial Position December 31, 2010 January 1, 2010
Increase in Other assets 29.0 113.0
Decrease (increase) in Other liabilities (5.6) 6.7
Change in Equity    
Increase in Actuarial gains reserve (14.1) (119.7)
Increase in Retained earnings (9.3) -

(d) In accordance with IAS 19, the Bank’s IFRS accounting policy for other long-term employee benefits is to recognize all actuarial gains and losses immediately in net income. At the date of transition, all previously unamortized actuarial gains and losses and changes relating to the adoption of IAS 19 were recognized in Retained earnings.

The net impact of the changes is summarized as follows:
Statement of Comprehensive Income Year ended December 31, 2010
Increase in benefit expenses 0.8  
Statement of Financial Position December 31, 2010 January 1, 2010
Decrease in Other liabilities 2.5 3.3
Change in Equity    
Increase in Retained earnings (2.5) (3.3)

(e) In accordance with the requirement of section 27 of the Bank of Canada Act, the increase in Retained earnings from the transition to IFRS will be payable to the Receiver General for Canada. The amount that will be payable upon completion of the Bank’s transition has been accrued in Other liabilities.

Statement of Financial Position December 31, 2010 January 1, 2010
Increase in Other liabilities (41.4) -
Change in Equity    
Decrease in Retained earnings 41.4 -

(f) Principal exemptions elected on transition to IFRS

IFRS 1 sets out the requirements that the Bank must follow when it adopts IFRS for the first time as the basis for preparing its financial statements. The Bank is required to establish its IFRS accounting policies for the year ended December 31, 2011, and apply these retrospectively to determine the IFRS opening Statement of financial position at the date of transition of January 1, 2010. To assist entities in the transition process, the standard permits a number of specified exemptions from the general principle of retrospective restatement. The Bank has elected to disclose the Summary of historical adjustments in note 14 on a prospective basis following the transition to IFRS. Except for the above-mentioned disclosure, the Bank has not elected to use any of the optional exemptions from certain IFRSs or any of the exemptions to retrospective application of certain IFRSs that are available under IFRS 1 in the preparation of these financial statements.

(g) Reclassification for IFRS presentation

Certain balances have been reclassified to conform with the presentation adopted by the Bank in its transition to IFRS.

The net impact of the changes is summarized as follows:
Statement of Comprehensive Income Year ended December 31, 2010
Decrease in Other revenue (0.1)  
Increase in Other interest revenue 0.1  
Decrease in Other operating expenses 34.3  
Increase in Technology and telecommunications
(34.3)
 
Statement of Financial Position December 31, 2010 January 1, 2010
Decrease in Property and equipment (25.9) (23.7)
Increase in Intangible assets 25.9 23.7

The presentation of the Statement of Comprehensive Income changed from reporting by function under previous Canadian GAAP to a presentation by nature under IFRS. The expenses are reported in note 16 on the basis of the four functions of the Bank described in note 1.

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-03545 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Fraser River Pile & Dredge (GP) Inc., New Westminster, British Columbia.

 2. Waste or other matter to be disposed of: Dredged material.

2.1. Nature of waste or other matter: Dredged material consisting of rock, gravel, sand, silt, clay or material typical to the approved loading site.

 3. Duration of permit: Permit is valid from May 21, 2012, to May 20, 2013.

 4. Loading site(s): Westshore Terminals, Delta, British Columbia, at approximately 49°00.87′ N, 123°09.36′ W (NAD83), as submitted in support of the permit application.

 5. Disposal site(s): Point Grey Disposal Site, within a one nautical mile radius of 49°15.40′ N, 123°21.90′ W (NAD83).

 6. Method of loading: Loading will be carried out using cutter suction dredge, barge-mounted excavator or clamshell dredge.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site via pipeline, hopper scow, towed scow or hopper dredge.

 8. Method of disposal: Disposal will be carried out by pipeline, bottom dumping, end dumping or cutter suction dredge.

 9. Total quantity to be disposed of: Not to exceed 17 000 m3 place measure.

10. Fees: The fee prescribed by the Disposal at Sea Permit Fee Regulations shall be paid by the Permittee in accordance with those Regulations.

11. Inspection:

11.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11.2. The Permittee shall ensure that records of all loading and disposal activities are kept on site for the duration of the permit and are available for inspection by any enforcement officer or analyst for two years following the expiry of the permit.

11.3. Ships operating under the authority of this permit shall carry and display a radar-reflecting device at all times mounted on the highest practical location.

12. Contractors:

12.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

12.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

13. Reporting and notification:

13.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to Environment Canada’s Environmental Enforcement Division, Pacific and Yukon Region, 604-666-9059 (fax) or das.pyr@ec.gc.ca (email).

13.2. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Pacific and Yukon Region, 201–401 Burrard Street, Vancouver, British Columbia V6C 3S5, 604-666-5928 (fax) or das.pyr@ec.gc.ca (email), within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: a list of all work completed pursuant to the permit, including the location of the loading and disposal sites used, the quantity of matter disposed of at the disposal site(s), and the dates on which disposal activities occurred.

13.3. At all times, a copy of this permit and of documents and drawings referenced in this permit shall be available at the loading site and on all powered ships directly engaged in the loading and disposal operations.

14. Special precautions:

14.1. The Permittee shall submit a written dredged material disposal plan to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Pacific and Yukon Region, identified in paragraph 13.2, for approval by Environment Canada prior to commencement of the first dredging operation authorized by this permit. The plan shall address procedures to accurately measure or estimate quantities of dredged material disposed of at the disposal site(s), vessel tracking, and a schedule for use of the disposal site. Modifications to the plan shall be made only with the written approval of Environment Canada.

14.2. The loading and disposal at sea referred to under this permit shall be carried out in accordance with the mitigation measures summarized in the report titled “Environmental Assessment Report — Loading and subsequent disposal at sea of material dredged from Westshore Terminals, Delta, BC — 4543-2-03545” (March 2012).

DANIEL WOLFISH
Regional Director
Environmental Protection Operations Directorate
Pacific and Yukon Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-03546 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Fraser River Pile & Dredge (GP) Inc., New Westminster, British Columbia.

 2. Waste or other matter to be disposed of: Dredged material.

2.1. Nature of waste or other matter: Dredged material consisting of rock, gravel, sand, silt, clay, wood waste or material typical to the approved loading site, except logs and usable wood. The Permittee shall ensure that every effort is made to prevent the deposition of log bundling strand into waste or other matter approved for loading and disposal at sea and/or remove log bundling strand from waste or other matter approved for loading and disposal at sea.

 3. Duration of permit: Permit is valid from June 19, 2012, to June 18, 2013.

 4. Loading site(s): Delta Cedar Products, Delta, British Columbia, bound by 49°09.44′ N, 122°56.56′ W; 49°09.41′ N, 122°56.54′ W; 49°09.33′ N, 122°56.67′ W; 49°09.34′ N, 122°56.68′ W; 49°09.33′ N, 122°56.71′ W; 49°09.34′ N, 122°56.72′ W (NAD83), as submitted in support of the permit application.

 5. Disposal site(s): Point Grey Disposal Site, within a one nautical mile radius of 49°15.40′ N, 123°21.90′ W (NAD83).

 6. Method of loading: Loading will be carried out using clamshell dredge.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site(s) to the disposal site via hopper scow or towed scow.

 8. Method of disposal: Disposal will be carried out by bottom dumping or end dumping.

 9. Total quantity to be disposed of: Not to exceed 12 000 m3 place measure.

10. Fees: The fee prescribed by the Disposal at Sea Permit Fee Regulations shall be paid by the Permittee in accordance with those Regulations.

11. Inspection:

11.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11.2. The Permittee shall ensure that records of all loading and disposal activities are kept on site for the duration of the permit and are available for inspection by any enforcement officer or analyst for two years following the expiry of the permit.

11.3. Ships operating under the authority of this permit shall carry and display a radar-reflecting device at all times mounted on the highest practical location.

12. Contractors:

12.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

12.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

13. Reporting and notification:

13.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to Environment Canada’s Environmental Enforcement Division, Pacific and Yukon Region, 604-666-9059 (fax) or das.pyr@ec.gc.ca (email).

13.2. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Pacific and Yukon Region, 201–401 Burrard Street, Vancouver, British Columbia V6C 3S5, 604-666-5928 (fax) or das.pyr@ec.gc.ca (email), within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: a list of all work completed pursuant to the permit, including the location of the loading and disposal sites used, the quantity of matter disposed of at the disposal site(s), and the dates on which disposal activities occurred.

13.3. At all times, a copy of this permit and of documents and drawings referenced in this permit shall be available at the loading site and on all powered ships directly engaged in the loading and disposal operations.

14. Special precautions:

14.1. The Permittee shall submit a written dredged material disposal plan to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Pacific and Yukon Region, identified in paragraph 13.2, for approval by Environment Canada prior to commencement of the first dredging operation authorized by this permit. The plan shall address procedures to accurately measure or estimate quantities of dredged material disposed of at the disposal site, vessel tracking, and a schedule for use of the disposal site. Modifications to the plan shall be made only with the written approval of Environment Canada.

14.2. The loading and disposal at sea referred to under this permit shall be carried out in accordance with the mitigation measures summarized in the report titled “Environmental Assessment Report — Maintenance dredging at Delta Cedar Products, 10104 River Road, Delta, BC, and subsequent disposal at sea — 4543-2-03546” (March 2012).

DANIEL WOLFISH
Regional Director
Environmental Protection Operations Directorate
Pacific and Yukon Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-03547 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: BD Hall Constructors Corp., Surrey, British Columbia.

 2. Waste or other matter to be disposed of: Inert, inorganic geological matter.

2.1. Nature of waste or other matter: Inert, inorganic geological matter; all wood, topsoil, asphalt and other debris must be segregated for disposal by methods other than disposal at sea.

 3. Duration of permit: Permit is valid from May 20, 2012, to May 19, 2013.

 4. Loading site(s):

  1. (a) Various approved excavation sites in British Columbia, at approximately 4916.35 N, 12306.70 W (NAD83);
  2. (b) Out-loading facility in Vancouver, British Columbia, at approximately 4917.24 N, 12304.83 W (NAD83); and
  3. (c) Out-loading facility in Delta, British Columbia, at approximately 4908.95 N, 12259.95 W (NAD83).

 5. Disposal site(s): Point Grey Disposal Site, within a one nautical mile radius of 49°15.40′ N, 123°21.90′ W (NAD83).

 6. Method of loading: Loading will be carried out using land-based heavy equipment, trucks or conveyor belts.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site via hopper scow or towed scow.

 8. Method of disposal: Disposal will be carried out by bottom dumping or end dumping.

 9. Total quantity to be disposed of: Not to exceed 60 000 m3 place measure.

10. Approvals: The Permittee shall obtain from the permit-issuing office a letter of approval for each loading and disposal activity prior to undertaking the work, and conduct these activities in accordance with the relevant letter of approval. The Permittee shall follow the procedures outlined in the document titled: “Multi-Site Excavation Projects Involving Disposal at Sea: Requests for Letters of Approval — Standard Procedures” (February 2011).

11. Fees: The fee prescribed by the Disposal at Sea Permit Fee Regulations shall be paid by the Permittee in accordance with those Regulations.

12. Inspection:

12.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

12.2. The Permittee shall ensure that records of all loading and disposal activities are kept on site for the duration of the permit and are available for inspection by any enforcement officer or analyst for two years following the expiry of the permit.

12.3. Ships operating under the authority of this permit shall carry and display a radar-reflecting device at all times mounted on the highest practical location.

13. Contractors:

13.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

13.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

14. Reporting and notification:

14.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to Environment Canada’s Environmental Enforcement Division, Pacific and Yukon Region, 604-666-9059 (fax) or das.pyr@ec.gc.ca (email).

14.2. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Pacific and Yukon Region, 201–401 Burrard Street, Vancouver, British Columbia V6C 3S5, 604-666-5928 (fax) or das.pyr@ec.gc.ca (email) within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: a list of all work completed pursuant to the permit, including the location of the loading and disposal sites used, the quantity of matter disposed of at the disposal site(s) and the dates on which disposal activities occurred.

14.3. At all times, a copy of this permit and of documents and drawings referenced in this permit shall be available at the loading site and on all powered ships directly engaged in the loading and disposal operations.

15. Special precautions:

15.1. The Permittee shall submit a written material disposal plan to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Pacific and Yukon Region, identified in paragraph 14.2, for approval by Environment Canada prior to commencement of the first excavation operation authorized by this permit. The plan shall address procedures to accurately measure or estimate quantities of material disposed of at the disposal site(s), vessel tracking, and a schedule for use of the disposal site. Modifications to the plan shall be made only with the written approval of Environment Canada.

15.2. The loading and disposal at sea referred to under this permit shall be carried out in accordance with the mitigation measures summarized in the report titled “BD Hall Constructors Corp. — Loading and Disposal at Sea of Excavated Material — 4543-2-03547” (April 2012).

DANIEL WOLFISH
Regional Director
Environmental Protection Operations Directorate
Pacific and Yukon Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-06693 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Department of Fisheries and Oceans, Small Craft Harbours Branch, Charlottetown, Prince Edward Island.

 2. Waste or other matter to be disposed of: Dredged material.

2.1. Nature of waste or other matter: Dredged material consisting of gravel, sand, silt and clay.

 3. Duration of permit: Permit is valid from May 21, 2012, to May 20, 2013.

 4. Loading site(s): North Rustico Entrance Channel, Prince Edward Island, at approximately 46°27.41′ N, 63°17.21′ W (NAD83), as described in Figure 1 of the document titled “Canadian Environmental Assessment Screening Report: Dredging and Disposal at Sea of Dredged Sediments at North Rustico Entrance Channel, North Rustico, Prince Edward Island” (April 2012), submitted in support of the permit application.

 5. Disposal site(s): North Rustico, Prince Edward Island, at approximately 46°27.30′ N, 63°17.22′ W (NAD83), as described in Figure 1 of the document titled “Canadian Environmental Assessment Screening Report: Dredging and Disposal at Sea of Dredged Sediments at North Rustico Entrance Channel, North Rustico, Prince Edward Island” (April 2012), submitted in support of the permit application.

 6. Method of loading: Dredging will be carried out using a cutter suction dredge.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site via pipeline.

 8. Method of disposal: Disposal will be carried out by pipeline.

 9. Total quantity to be disposed of: Not to exceed 15 000 m3 place measure.

9.1. The Permittee shall submit the procedures to measure or estimate quantities of dredged material disposed of at the disposal site(s) to Ms. Jayne Roma, identified in paragraph 13.1. The Department of the Environment shall approve the procedures prior to the commencement of the first dredging operation to be conducted under this permit.

10. Fees: The fee prescribed by the Disposal at Sea Permit Fee Regulations shall be paid by the Permittee in accordance with those Regulations.

11. Inspection:

11.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11.2. Ships operating under the authority of this permit shall be marked in accordance with the Collision Regulations of the Canada Shipping Act when located on or in the waterway.

12. Contractors:

12.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

12.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

13. Reporting and notification:

13.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to

  1. (a) Ms. Jayne Roma, Environmental Protection Operations Directorate, Environment Canada, Atlantic Region, Queen Square, 16th Floor, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-426-8373 (fax), jayne.roma@ec.gc.ca (email);
  2. (b) Ms. Anne Benoit, Canadian Wildlife Service, Environment Canada, 17 Waterfowl Lane, Sackville, New Brunswick E4L 1G6, 506-364-5062 (fax), anne.benoit@ec.gc.ca (email);
  3. (c) Mr. Mark Dalton, Environmental Enforcement Directorate, Environment Canada, Atlantic Region, Queen Square, 16th Floor, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-490-0775 (fax), mark.dalton@ec.gc.ca (email); and
  4. (d) Ms. Delephina Keen, Fisheries and Oceans Canada, P.O. Box 1236, Charlottetown, Prince Edward Island C1A 7M8, 902-566-7848 (fax), Delephina.Keen@dfo-mpo.gc.ca (email).

13.2. The Canadian Coast Guard, Marine Communication and Traffic Services (MCTS) Sydney (notshipssyd@dfo-mpo.gc.ca) is to be notified in advance of the commencement of work so that appropriate Notices to Shipping/Mariners may be issued.

13.3. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, c/o Ms. Jayne Roma, as identified in paragraph 13.1, within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: a list of all work completed pursuant to the permit, including the location of the loading and disposal sites used, the quantity of matter disposed of at the disposal site(s) and the dates on which disposal activities occurred.

14. Special precautions:

14.1. The loading and disposal at sea activities referred to under this permit shall be carried out in accordance with the mitigation measures summarized in section 3.6 of the document titled “Canadian Environmental Assessment Screening Report: Dredging and Disposal at Sea of Dredged Sediments at North Rustico Entrance Channel, North Rustico, Prince Edward Island” (April 2012), submitted in support of the permit application.

I. R. GEOFFREY MERCER
Regional Director
Environmental Protection Operations Directorate
Atlantic Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-06705 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Department of Public Works and Government Services, Charlottetown, Prince Edward Island.

2. Waste or other matter to be disposed of: Dredged material.

2.1. Nature of waste or other matter: Dredged material consisting of gravel, sand, silt and clay.

 3. Duration of permit: Permit is valid from June 1, 2012, to May 31, 2013.

3.1. The loading and disposal at sea activities are restricted to the following period: from November 1, 2012, to March 31, 2013.

 4. Loading site(s): Naufrage Harbour Basin, Prince Edward Island, 46°37.10′ N, 62°22.29′ W (NAD83), as described in Figure 3 of the document titled “Canadian Environmental Assessment Screening Report: Harbour Basin Dredging and Disposal at Sea of Dredged Sediments at Naufrage Harbour, Kings County, Prince Edward Island” (March 2012), submitted in support of the permit application.

 5. Disposal site(s): Naufrage Harbour, Prince Edward Island, 46°28.11′ N, 62°24.85′ W (NAD83), as described in Figure 3 of the document titled “Canadian Environmental Assessment Screening Report: Harbour Basin Dredging and Disposal at Sea of Dredged Sediments at Naufrage Harbour, Kings County, Prince Edward Island” (March 2012), submitted in support of the permit application.

 6. Method of loading: Dredging will be carried out using a suction dredge.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site via pipeline.

 8. Method of disposal: Disposal will be carried out by pipeline.

 9. Total quantity to be disposed of: Not to exceed 10 000 m3 place measure.

9.1. The Permittee shall submit the procedures to measure or estimate quantities of dredged material disposed of at each disposal site to Ms. Jayne Roma, identified in paragraph 13.1. The Department of the Environment shall approve the procedures prior to the commencement of the first dredging operation to be conducted under this permit.

10. Fees: The fee prescribed by the Disposal at Sea Permit Fee Regulations shall be paid by the Permittee in accordance with those Regulations.

11. Inspection:

11.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11.2. Ships operating under the authority of this permit shall be marked in accordance with the Collision Regulations of the Canada Shipping Act when located on or in the waterway.

12. Contractors:

12.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

12.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

13. Reporting and notification:

13.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to

  1. (a) Ms. Jayne Roma, Environmental Protection Operations Directorate, Environment Canada, Atlantic Region, Queen Square, 16th Floor, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-490-0716 (fax), jayne.roma@ec.gc.ca (email);
  2. (b) Mr. Mark Dalton, Environmental Enforcement Directorate, Environment Canada, Atlantic Region, Queen Square, 16th Floor, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-490-0775 (fax), mark.dalton@ec.gc.ca (email);
  3. (c) Ms. Rachel Gautreau, Canadian Wildlife Service, Environment Canada, 17 Waterfowl Lane, Sackville, New Brunswick E4L 1G6, 506-364-5062 (fax), rachel.gautreau@ec.gc.ca (email); and
  4. (d) Ms. Delephina Keen, Fisheries and Oceans Canada, P.O. Box 1236, Charlottetown, Prince Edward Island C1A 7M8, 902-566-7848 (fax), delephina.keen@dfo-mpo.gc.ca (email).

13.2. The Canadian Coast Guard, Marine Communication and Traffic Services (MCTS) Sydney (1-800-686-8676) is to be notified in advance of the commencement of work so that appropriate Notices to Shipping/Mariners may be issued.

13.3. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, c/o Ms. Jayne Roma, as identified in paragraph 13.1, within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: the quantity of matter disposed of at the disposal site(s) and the dates on which disposal activities occurred.

14. Special precautions:

14.1. The loading and disposal at sea activities referred to under this permit shall be carried out in accordance with the mitigation measures summarized in section 3.6 of the document titled “Canadian Environmental Assessment Screening Report: Harbour Basin Dredging and Disposal at Sea of Dredged Sediments at Naufrage Harbour, Kings County, Prince Edward Island” (March 2012), submitted in support of the permit application.

I. R. GEOFFREY MERCER
Regional Director
Environmental Protection Operations Directorate
Atlantic Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-06721 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Barry Group Inc., Witless Bay, Newfoundland and Labrador.

 2. Waste or other matter to be disposed of: Fish waste and other organic matter resulting from industrial fish processing operations.

2.1. Nature of waste or other matter: Fish waste and other organic matter consisting of fish and shellfish waste.

 3. Duration of permit: Permit is valid from June 3, 2012, to June 2, 2013.

 4. Loading site(s): Witless Bay, Newfoundland and Labrador, at approximately 47°16.74′ N, 52°49.42′ W (NAD83).

 5. Disposal site(s): Witless Bay, within a 250 m radius of 47°16.34′ N, 52°47.54′ W (NAD83), at an approximate depth of 50 m.

 6. Method of loading:

6.1. The Permittee shall ensure that the material is loaded onto floating equipment complying with all applicable rules regarding safety and navigation and capable of containing all waste cargo during loading and transit to the approved disposal site.

6.2. The Permittee shall ensure that the waste to be disposed of is covered by netting or other material to prevent access by gulls and other marine birds, except during direct loading or disposal of the waste.

6.3. Material loaded for the purpose of disposal at sea may not be held aboard any ship for more than 96 hours from the commencement of loading without the written consent of an enforcement officer designated pursuant to subsection 217(1) of the Canadian Environmental Protection Act, 1999.

6.4. The loading and transit shall be completed in a manner that ensures that no material contaminates the marine environment, notably the harbour and adjacent beaches. The Permittee shall also ensure that the loading sites are cleaned up and, if necessary, that spilled wastes are recovered.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site.

 8. Method of disposal:

8.1. The Permittee shall ensure that the waste to be disposed of is discharged from the equipment or ship while steaming within the disposal site boundaries and in a manner which will promote dispersion.

 9. Total quantity to be disposed of: Not to exceed 1 500 tonnes.

10. Inspection:

10.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11. Contractors:

11.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

11.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

12. Reporting and notification:

12.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to Ms. Jayne Roma, Environmental Protection Operations Directorate, Environment Canada, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-490-0716 (fax), jayne. roma@ec.gc.ca (email).

12.2. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Atlantic Region, c/o Ms. Jayne Roma, as identified in paragraph 12.1, within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: the quantity of matter disposed of at the disposal site(s) and the dates on which disposal activities occurred.

12.3. This permit shall be displayed in an area of the plant accessible to the public.

I. R. GEOFFREY MERCER
Regional Director
Environmental Protection Operations Directorate
Atlantic Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-06725 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Hickey & Sons Fisheries Ltd., St. John’s, Newfoundland and Labrador.

 2. Waste or other matter to be disposed of: Fish waste and other organic matter resulting from industrial fish processing operations.

2.1. Nature of waste or other matter: Fish waste and other organic matter consisting of fish and shellfish waste.

 3. Duration of permit: Permit is valid from May 25, 2012, to May 24, 2013.

 4. Loading site(s): O’Donnell’s, Newfoundland and Labrador, at approximately 47°04.10′ N, 53°34.30′ W (NAD83).

 5. Disposal site(s): O’Donnell’s, within a 250 m radius of 47°04.00′ N, 53°38.00′ W (NAD83), at an approximate depth of 50 m.

 6. Method of loading:

6.1. The Permittee shall ensure that the material is loaded onto floating equipment complying with all applicable rules regarding safety and navigation and capable of containing all waste cargo during loading and transit to the approved disposal site.

6.2. The Permittee shall ensure that the waste to be disposed of is covered by netting or other material to prevent access by gulls and other marine birds, except during direct loading or disposal of the waste.

6.3. Material loaded for the purpose of disposal at sea may not be held aboard any ship for more than 96 hours from the commencement of loading without the written consent of an enforcement officer designated pursuant to subsection 217(1) of the Canadian Environmental Protection Act, 1999.

6.4. The loading and transit shall be completed in a manner that ensures that no material contaminates the marine environment, notably the harbour and adjacent beaches. The Permittee shall also ensure that the loading sites are cleaned up and, if necessary, that spilled wastes are recovered.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site.

 8. Method of disposal:

8.1. The Permittee shall ensure that the waste to be disposed of is discharged from the equipment or ship while steaming within the disposal site boundaries and in a manner which will promote dispersion.

 9. Total quantity to be disposed of: Not to exceed 1 000 tonnes.

10. Inspection:

10.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11. Contractors:

11.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

11.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

12. Reporting and notification:

12.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to Ms. Jayne Roma, Environmental Protection Operations Directorate, Environment Canada, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-490-0716 (fax), jayne.roma@ec.gc.ca (email).

12.2. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Atlantic Region, c/o Ms. Jayne Roma, as identified in paragraph 12.1, within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: the quantity of matter disposed of at the disposal site(s) and the dates on which disposal activities occurred.

12.3. This permit shall be displayed in an area of the plant accessible to the public.

I. R. GEOFFREY MERCER
Regional Director
Environmental Protection Operations Directorate
Atlantic Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-06726 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Barry Group Inc., Port de Grave, Newfoundland and Labrador.

 2. Waste or other matter to be disposed of: Fish waste and other organic matter resulting from industrial fish processing operations.

2.1. Nature of waste or other matter: Fish waste and other organic matter consisting of fish and shellfish waste.

 3. Duration of permit: Permit is valid from May 25, 2012, to May 24, 2013.

 4. Loading site(s): Ship Cove, Newfoundland and Labrador, at approximately 47°35.48′ N, 53°12.06′ W (NAD83); Port de Grave, Newfoundland and Labrador, at approximately 47°35.29′ N, 53°12.55′ W (NAD83).

 5. Disposal site(s): Ship Cove, within a 250 m radius of 47°35.00′ N, 53°11.00′ W (NAD83), at an approximate depth of 124 m.

 6. Method of loading:

6.1. The Permittee shall ensure that the material is loaded onto floating equipment complying with all applicable rules regarding safety and navigation and capable of containing all waste cargo during loading and transit to the approved disposal site.

6.2. The Permittee shall ensure that the waste to be disposed of is covered by netting or other material to prevent access by gulls and other marine birds, except during direct loading or disposal of the waste.

6.3. Material loaded for the purpose of disposal at sea may not be held aboard any ship for more than 96 hours from the commencement of loading without the written consent of an enforcement officer designated pursuant to subsection 217(1) of the Canadian Environmental Protection Act, 1999.

6.4. The loading and transit shall be completed in a manner that ensures that no material contaminates the marine environment, notably the harbour and adjacent beaches. The Permittee shall also ensure that the loading sites are cleaned up and, if necessary, that spilled wastes are recovered.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site.

 8. Method of disposal:

8.1. The Permittee shall ensure that the waste to be disposed of is discharged from the equipment or ship while steaming within the disposal site boundaries and in a manner which will promote dispersion.

 9. Total quantity to be disposed of: Not to exceed 1 400 tonnes.

10. Inspection:

10.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11. Contractors:

11.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

11.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

12. Reporting and notification:

12.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to Ms. Jayne Roma, Environmental Protection Operations Directorate, Environment Canada, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-490-0716 (fax), jayne. roma@ec.gc.ca (email).

12.2. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Atlantic Region, c/o Ms. Jayne Roma, as identified in paragraph 12.1, within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: the quantity of matter disposed of at the disposal site(s) and the dates on which disposal activities occurred.

12.3. This permit shall be displayed in an area of the plant accessible to the public.

I. R. GEOFFREY MERCER
Regional Director
Environmental Protection Operations Directorate
Atlantic Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Notice is hereby given that, pursuant to section 127 of the Canadian Environmental Protection Act, 1999, Disposal at Sea Permit No. 4543-2-06730 authorizing the loading for disposal and the disposal of waste or other matter at sea is approved.

 1. Permittee: Barry Group Inc., Cox’s Cove, Newfoundland and Labrador.

 2. Waste or other matter to be disposed of: Fish waste and other organic matter resulting from industrial fish processing operations.

2.1. Nature of waste or other matter: Fish waste and other organic matter consisting of fish and shellfish waste.

 3. Duration of permit: Permit is valid from May 28, 2012, to May 27, 2013.

 4. Loading site(s): Cox’s Cove, Newfoundland and Labrador, at approximately 49°07.10′ N, 58°04.20′ W (NAD83).

 5. Disposal site(s): Cox’s Cove, within a 250 m radius of 49°08.00′ N, 58°04.00′ W (NAD83), at an approximate depth of 190 m.

 6. Method of loading:

6.1. The Permittee shall ensure that the material is loaded onto floating equipment complying with all applicable rules regarding safety and navigation and capable of containing all waste cargo during loading and transit to the approved disposal site.

6.2. The Permittee shall ensure that the waste to be disposed of is covered by netting or other material to prevent access by gulls and other marine birds, except during direct loading or disposal of the waste.

6.3. Material loaded for the purpose of disposal at sea may not be held aboard any ship for more than 96 hours from the commencement of loading without the written consent of an enforcement officer designated pursuant to subsection 217(1) of the Canadian Environmental Protection Act, 1999.

6.4. The loading and transit shall be completed in a manner that ensures that no material contaminates the marine environment, notably the harbour and adjacent beaches. The Permittee shall also ensure that the loading sites are cleaned up and, if necessary, that spilled wastes are recovered.

 7. Route to disposal site(s) and method of transport: Most direct navigational route from the loading site to the disposal site.

 8. Method of disposal:

8.1. The Permittee shall ensure that the waste to be disposed of is discharged from the equipment or ship while steaming within the disposal site boundaries and in a manner which will promote dispersion.

 9. Total quantity to be disposed of: Not to exceed 2 000 tonnes.

10. Inspection:

10.1. By accepting this permit, the Permittee and their contractors accept that they are subject to inspection pursuant to Part 10 of the Canadian Environmental Protection Act, 1999.

11. Contractors:

11.1. The loading or disposal at sea referred to under this permit shall not be carried out by any person without written authorization from the Permittee.

11.2. The Permittee shall ensure that all persons involved in the loading, transport or disposal activities authorized by this permit conduct these activities in accordance with the relevant permit conditions.

12. Reporting and notification:

12.1. The Permittee shall provide the following information at least 48 hours before loading and disposal activities commence: name or number of ship, platform or structure used to carry out the loading and/or disposal, name of the contractor including corporate and on-site contact information, and expected period of loading and disposal activities. The above-noted information shall be submitted to Ms. Jayne Roma, Environmental Protection Operations Directorate, Environment Canada, 45 Alderney Drive, Dartmouth, Nova Scotia B2Y 2N6, 902-490-0716 (fax), jayne. roma@ec.gc.ca (email).

12.2. The Permittee shall submit a written report to the Minister, as represented by the Regional Director of the Environmental Protection Operations Directorate, Atlantic Region, c/o Ms. Jayne Roma, as identified in paragraph 12.1, within 30 days of either the completion of the work or the expiry of the permit, whichever comes first. This report shall contain the following information: the quantity of matter disposed of at the disposal site(s) and the dates on which disposal activities occurred.

12.3. This permit shall be displayed in an area of the plant accessible to the public.

I. R. GEOFFREY MERCER
Regional Director
Environmental Protection Operations Directorate
Atlantic Region
On behalf of the Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

RescindingMinisterial Condition No. 14769

Whereas the Minister of the Environment has previously imposed Ministerial Condition No. 14769 with respect to the substance Poly(oxy-1,2-ethanediyl), α-[3-[1,3,3,3-tetramethyl-1-[(trimethylsilyl)oxy]disiloxanyl]propyl]-ω-hydroxy-, Chemical Abstracts Service Registry No. 67674-67-3, on June 10, 2007;

Whereas the Minister of the Environment and the Minister of Health have assessed additional information in respect of the substance;

And whereas the ministers no longer suspect that the substance is toxic or capable of becoming toxic;

Therefore, the Minister of the Environment hereby rescinds Ministerial Condition No. 14769 pursuant to subsection 84(3) of the Canadian Environmental Protection Act, 1999.

PETER KENT
Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Rescinding Ministerial Condition No. 15350

Whereas the Minister of the Environment has previously imposed Ministerial Condition No. 15350 with respect to the substance Poly(oxy-1,2-ethanediyl), α-[3-[1,3,3,3-tetramethyl-1-[(trimethylsilyl)oxy]disiloxanyl]propyl]-ω-hydroxy-, Chemical Abstracts Service Registry No. 67674-67-3, on October 18, 2008;

Whereas the Minister of the Environment and the Minister of Health have assessed additional information in respect of the substance;

And whereas the ministers no longer suspect that the substance is toxic or capable of becoming toxic;

Therefore, the Minister of the Environment hereby rescinds Ministerial Condition No. 15350 pursuant to subsection 84(3) of the Canadian Environmental Protection Act, 1999.

PETER KENT
Minister of the Environment

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT

DEPARTMENT OF HEALTH

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Publication after screening assessment of five heavy fuel oil substances specified on the Domestic Substances List (subsection 77(1) of the Canadian Environmental Protection Act, 1999)

Whereas the five heavy fuel oils (the “substances”) annexed hereby are substances on the Domestic Substances List identified under subsection 73(1) of the Canadian Environmental Protection Act, 1999;

Whereas a summary of the draft Screening Assessment conducted on the substances pursuant to section 74 of the Act is annexed hereby; and

Whereas it is proposed to conclude that the substances do not meet any of the criteria set out in section 64 of the Act,

Notice therefore is hereby given that the Ministers of the Environment and of Health propose to take no further action on these substances at this time under section 77 of the Act.

Public comment period

As specified under subsection 77(5) of the Canadian Environmental Protection Act, 1999, any person may, within 60 days after publication of this notice, file with the Minister of the Environment written comments on the measure the Ministers propose to take and on the scientific considerations on the basis of which the measure is proposed. More information regarding the scientific considerations may be obtained from the Government of Canada’s Chemical Substances Web site (www. chemicalsubstances.gc.ca). All comments must cite the Canada Gazette, Part Ⅰ, and the date of publication of this notice and be sent to the Executive Director, Program Development and Engagement Division, Gatineau, Quebec K1A 0H3, 819-953-7155 (fax), or by email to substances@ec.gc.ca.

In accordance with section 313 of the Canadian Environmental Protection Act, 1999, any person who provides information in response to this notice may submit with the information a request that it be treated as confidential.

DAVID MORIN
Acting Director General
Science and Risk Assessment Directorate
On behalf of the Minister of the Environment

MARGARET KENNY
Director General
Chemicals Sector Directorate
On behalf of the Minister of the Environment

STEVE MCCAULEY
Director General
Energy and Transportation Directorate
On behalf of the Minister of the Environment

KAREN LLOYD
Director General
Safe Environments Directorate
On behalf of the Minister of Health

ANNEX

Summary of the Screening Assessment of the Five Heavy Fuel Oils Listed Below

The Ministers of the Environment and of Health have conducted a screening assessment of the following industry-restricted heavy fuel oils (HFOs):
CAS RN (see footnote 11) Domestic Substances List name
64741-75-9 Residues (petroleum), hydrocracked
68783-08-4 Gas oils (petroleum), heavy atmospheric
70592-76-6 Distillates (petroleum), intermediate vacuum
70592-77-7 Distillates (petroleum), light vacuum
70592-78-8 Distillates (petroleum), vacuum

These substances were identified as a high priority for action during the categorization of the Domestic Substances List (DSL), as they were determined to present the greatest potential or intermediate potential for exposure of individuals in Canada and were considered to present a high hazard to human health. All of these substances met the ecological categorization criteria for persistence or bioaccumulation potential and inherent toxicity to aquatic organisms. These substances were included in the Petroleum Sector Stream Approach because they are related to the petroleum sector and are all complex mixtures.

Heavy fuel oils are a group of complex petroleum mixtures that serve as blending stocks in final heavy fuel products or as intermediate products of distillation or residue derived from refinery distillation or cracking units. The final fuel products usually consist of a mixture of HFOs as well as higher-quality hydrocarbons as diluents. HFOs are composed of aromatic, aliphatic and cycloalkane hydrocarbons, primarily in the carbon range of C14– C50 (C7 is the smallest hydrocarbon found in the group), and have a typical boiling point range from 121°C to 600°C. As such, HFOs are considered to be of Unknown or Variable Composition, Complex Reaction Products or Biological Materials (UVCBs). In order to predict the overall behaviour of these complex substances for the purposes of assessing the potential for ecological effects, representative structures have been selected from each chemical class in the mixtures.

The HFOs considered in this screening assessment have been identified as industry-restricted (i.e. they are a subset of HFOs that may leave a petroleum sector facility and be transported to other industrial facilities). According to information submitted under section 71 of the Canadian Environmental Protection Act, 1999 (CEPA 1999), these HFOs are transported in large volumes from refinery or upgrader facilities to other industrial facilities by pipelines, ships, trains and trucks; therefore, exposure of the environment is expected.

Based on the available information, all HFOs assessed in this report likely contain significant amounts of components (C10–C50) that meet the criteria for persistence in soil, water and sediment as defined in the Persistence and Bioaccumulation Regulations of CEPA 1999. Based on the combined evidence of empirical and modelled bioaccumulation potential data, all HFOs assessed in this report likely contain large proportions of C14–C20 components that meet the criteria for bioaccumulation potential as defined in the Persistence and Bioaccumulation Regulations. Some of the components of these HFOs (C15 dicycloalkanes, C14 and C22 polycycloalkanes, C15–C20 cycloalkane monoaromatics, C20 cycloalkane diaromatics and C20 three-ring aromatics) were found to meet the criteria for both persistence and bioaccumulation potential as defined in the Regulations.

Based on results of comparison of levels expected to cause harm to organisms with estimated exposure levels and the relatively low expected frequency of spills to water and soil during loading/unloading and transport operations, these five HFOs are not expected to cause harm to aquatic or soil organisms. The estimated releases to marine waters are also not expected to endanger seabirds. Intentional releases to Canadian marine waters have been regulated to reduce the exposure of and hazard to seabirds through direct and indirect effects. The National Aerial Surveillance Program of Transport Canada was designed to monitor and deter such releases.

Based on the information presented in this screening assessment, it is proposed to conclude that the industry-restricted HFOs (CAS RNs 64741-75-9, 68783-08-4, 70592-76-6, 70592-77-7 and 70592-78-8) are not entering the environment in a quantity or concentration or under conditions that have or may have an immediate or long-term harmful effect on the environment or its biological diversity or that constitute or may constitute a danger to the environment on which life depends.

A critical effect for the initial categorization of industry-restricted HFO substances was carcinogenicity, based primarily on classifications by international agencies. Several cancer studies conducted on laboratory animals resulted in the development of skin tumours following repeated dermal application of HFO substances. It is unknown whether HFOs are carcinogenic via the inhalation route. HFOs demonstrated genotoxicity in in vivo and in vitro assays and may also adversely affect reproduction and development in laboratory animals.

General population exposure to industry-restricted HFOs results primarily from inhalation of ambient air containing HFO vapours due to evaporative losses during transportation. Due to the relatively low volatility of the HFO substances, as defined by their physical-chemical properties, losses into the air are expected to be minimal. The margins between the upper-bounding estimate of exposure, the maximum air concentration of HFOs (1.28 µg/m3), and the critical inhalation effect levels are considered to be highly conservative and adequately protective to account for data gaps and uncertainties in the human health assessment for both cancer and non-cancer effects. In general, the likelihood of inhalation exposure of the general population is considered to be low; thus, the risk to human health is likewise considered to be low.

General population exposure to industry-restricted HFOs via the oral and dermal routes is not expected; therefore, risk to human health from the industry-restricted HFOs via these routes is not expected.

Based on the information presented in this screening assessment, it is proposed to conclude that the industry-restricted HFOs (CAS RNs 64741-75-9, 68783-08-4, 70592-76-6, 70592-77-7 and 70592-78-8) are not entering the environment in a quantity or concentration or under conditions that constitute or may constitute a danger in Canada to human life or health.

Proposed conclusion

It is proposed to conclude that the five industry-restricted heavy fuel oils listed under CAS RNs 64741-75-9, 68783-08-4, 70592-76-6, 70592-77-7 and 70592-78-8 do not meet any of the criteria set out in section 64 of CEPA 1999.

As substances listed on the DSL, their import and manufacture in Canada are not subject to notification under subsection 81(1) of CEPA 1999. Given the potentially hazardous properties of these substances, there is concern that new activities that have not been identified or assessed could lead to these substances meeting the criteria set out in section 64 of the Act. Therefore, application of the significant new activity provisions of the Act to these substances is being considered. This would require that any proposed new manufacture, import, use or transport be subject to further assessment, to determine if the new activity requires further risk management consideration.

The draft Screening Assessment for these substances is available on the Government of Canada’s Chemical Substances Web site (www.chemicalsubstances.gc.ca).

[16-1-o]

DEPARTMENT OF THE ENVIRONMENT
DEPARTMENT OF HEALTH

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Publication after screening assessment of three low boiling point naphtha substances specified on the Domestic Substances List (subsection 77(1) of the Canadian Environmental Protection Act, 1999)

Whereas the three low boiling point naphthas (the “substances”) annexed hereby are substances on the Domestic Substances List identified under subsection 73(1) of the Canadian Environmental Protection Act, 1999;

Whereas a summary of the draft Screening Assessment conducted on the substances pursuant to section 74 of the Act is annexed hereby; and

Whereas it is proposed to conclude that the substances do not meet any of the criteria set out in section 64 of the Act,

Notice therefore is hereby given that the Ministers of the Environment and of Health propose to take no further action on these substances at this time under section 77 of the Act.

Public comment period

As specified under subsection 77(5) of the Canadian Environmental Protection Act, 1999, any person may, within 60 days after publication of this notice, file with the Minister of the Environment written comments on the measure the Ministers propose to take and on the scientific considerations on the basis of which the measure is proposed. More information regarding the scientific considerations may be obtained from the Government of Canada’s Chemical Substances Web site (www.chemicalsubstances.gc.ca). All comments must cite the Canada Gazette, Part Ⅰ, and the date of publication of this notice and be sent to the Executive Director, Program Development and Engagement Division, Gatineau, Quebec K1A 0H3, 819-953-7155 (fax), or by email to substances@ec.gc.ca.

In accordance with section 313 of the Canadian Environmental Protection Act, 1999, any person who provides information in response to this notice may submit with the information a request that it be treated as confidential.

DAVID MORIN
Acting Director General
Science and Risk Assessment Directorate
On behalf of the Minister of the Environment

MARGARET KENNY
Director General
Chemicals Sector Directorate
On behalf of the Minister of the Environment

STEVE MCCAULEY
Director General
Energy and Transportation Directorate
On behalf of the Minister of the Environment

KAREN LLOYD
Director General
Safe Environments Directorate
On behalf of the Minister of Health

ANNEX

Summary of the Screening Assessment of the Three
Low Boiling Point Naphthas Listed Below

The Ministers of the Environment and of Health have conducted a screening assessment of the following industry-restricted low boiling point naphthas (LBPNs):
CAS RN (see footnote 12) Domestic Substances List name
64741-42-0 Naphtha (petroleum), full-range straight-run
64741-69-1 Naphtha (petroleum), light hydrocracked
64741-78-2 Naphtha (petroleum), heavy hydrocracked

These substances were identified as a high priority for action during the categorization of the Domestic Substances List (DSL), as they were determined to present the greatest potential or intermediate potential for exposure of individuals in Canada and were considered to present a high hazard to human health. All of these substances met the ecological categorization criteria for persistence or bioaccumulation potential and inherent toxicity to aquatic organisms. These substances were included in the Petroleum Sector Stream Approach (PSSA) because they are related to the petroleum sector and are all complex mixtures.

Low boiling point naphthas are a group of complex petroleum mixtures that serve as blending constituents in final gasoline products, as intermediate products of distillation or as residues derived from distillation or extraction units. The final fuel products usually consist of a mixture of LBPNs as well as high-quality hydrocarbons that have been produced from the refinery or upgrader facilities. LBPNs are considered to be of Unknown or Variable Composition, Complex Reaction Products or Biological Materials (UVCBs). In order to predict the overall behaviour of these complex substances, for purposes of assessing the potential for ecological effects, representative structures have been selected from each chemical class in the mixture.

The LBPNs considered in this screening assessment (CAS RNs 64741-42-0, 64741-69-1 and 64741-78-2) have been identified as industry-restricted (i.e. they are a subset of LBPNs that may leave a petroleum sector facility and be transported to other industrial facilities). According to information submitted under section 71 of the Canadian Environmental Protection Act, 1999 (CEPA 1999) and voluntary submissions of information from industry, these LBPNs are transported from petroleum sector facilities to other industrial facilities by ship and truck.

Based on the available information, these industry-restricted LBPNs (CAS RNs 64741-42-0, 64741-69-1 and 64741-78-2) likely contain components that are persistent in air, as defined in the Persistence and Bioaccumulation Regulations of CEPA 1999. Based on modelling data, LBPNs may contain some components that meet the criteria for bioaccumulation potential as defined in the Persistence and Bioaccumulation Regulations. No components of these industry-restricted LBPNs (CAS RNs 6474142-0, 64741-69-1 and 64741-78-2) were found to meet the criteria for both persistence and bioaccumulation potential as defined in the Persistence and Bioaccumulation Regulations.

Based on comparison of threshold effects levels for organisms with conservatively estimated exposure levels, LBPNs may have marginal potential to cause harm to aquatic life due to spills during ship loading and unloading. The estimated frequency of exposure of the environment from unintentional spills is low, on average less than once per year; however, there are no recorded actual spills to marine waters.

Based on information presented in this screening assessment, it is proposed to conclude that the three industry-restricted LBPNs (CAS RNs 64741-42-0, 64741-69-1 and 64741-78-2) are not entering the environment in a quantity or concentration or under conditions that have or may have an immediate or long-term harmful effect on the environment or its biological diversity or that constitute or may constitute a danger to the environment on which life depends.

A critical effect for the initial categorization of industry-restricted LBPN substances was carcinogenicity, based primarily on classifications by international agencies. Furthermore, benzene, a genotoxic carcinogen, is known to be a constituent of LBPN substances. Several studies also confirmed skin tumour development in mice following repeated dermal application of LBPN substances. However, LBPNs demonstrated limited evidence of genotoxicity in in vivo and in vitro assays, as well as limited potential to adversely affect reproduction and development. Information on additional LBPN substances in the PSSA that are similar from a processing and a physical-chemical perspective was considered for characterization of human health effects.

The physical-chemical properties of LBPNs indicate that these substances contain highly volatile constituents. Potential exposure to the industry-restricted LBPNs for individuals in proximity to shipping and trucking corridors results primarily from inhalation of vapours in ambient air due to evaporative losses during transportation. The margins between the upper-bounding estimates of exposure to maximum air concentrations of total volatile organic compounds (VOCs) or benzene, based on the aromatic fraction of the LBPN substances, and the critical inhalation effect levels are considered to be conservative and adequately protective to account for data gaps and uncertainties in the human health assessment for both cancer and non-cancer effects. Exposure of the general population to these substances via the dermal and oral routes is not expected.

Based on information presented in this screening assessment, it is proposed to conclude that the industry-restricted LBPNs (CAS RNs 64741-42-0, 64741-69-1 and 64741-78-2) are not entering the environment in a quantity or concentration or under conditions that constitute or may constitute a danger in Canada to human life or health.

Proposed conclusion

It is proposed to conclude that the three industry-restricted low boiling point naphthas listed under CAS RNs 64741-42-0, 64741-69-1 and 64741-78-2 do not meet any of the criteria set out in section 64 of CEPA 1999.

As substances listed on the DSL, their import and manufacture in Canada are not subject to notification under subsection 81(1) of CEPA 1999. Given the potentially hazardous properties of these substances, there is concern that new activities that have not been identified or assessed could lead to these substances meeting the criteria set out in section 64 of the Act. Therefore, application of the significant new activity provisions of the Act to these substances is being considered. This would require that any proposed new manufacture, import, use or transport be subject to further assessment, to determine if the new activity requires further risk management consideration.

The draft Screening Assessment for these substances is available on the Government of Canada’s Chemical Substances Web site (www.chemicalsubstances.gc.ca).

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DEPARTMENT OF INDUSTRY

OFFICE OF THE REGISTRAR GENERAL

Appointments
Name and position Order in Council
Allan, J. Stephens 2012-337
Canadian Tourism Commission  
Chairperson  
Government of Newfoundland and Labrador 2012-368
Administrators  
Mercer, The Hon. Keith  
April 15, 16 and 21, 2012  
Orsborn, The Hon. David B.  
April 22 to 30, 2012  
Rowe, The Hon. Malcolm  
April 17 to 20, 2012  
Government of Ontario 2012-416
Administrators  
Rosenberg, The Hon. Marc  
April 15 to April 20, 2012  
Smith, The Hon. Heather J.  
April 10 to April 13, 2012  
Matheson, The Hon. Jacqueline 2012-367
Government of Prince Edward Island  
Administrator  
March 29 and 30, 2012  
Oland, The Hon. Linda Lee 2012-417
Government of Nova Scotia  
Administrator  
April 12, 2012  

April 13, 2012

DIANE BÉLANGER
Official Documents Registrar

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DEPARTMENT OF PUBLIC SAFETY AND EMERGENCY PREPAREDNESS

CRIMINAL CODE

Designation as fingerprint examiner

Pursuant to subsection 667(5) of the Criminal Code, I hereby designate the following person of the Lethbridge Regional Police Service as a fingerprint examiner:

Dwayne Smith

Ottawa, April 3, 2012

RICHARD WEX
Assistant Deputy Minister
Law Enforcement and Policing Branch

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DEPARTMENT OF PUBLIC SAFETY AND EMERGENCY PREPAREDNESS

CRIMINAL CODE

Designation as fingerprint examiner

Pursuant to subsection 667(5) of the Criminal Code, I hereby designate the following person of the Royal Canadian Mounted Police as a fingerprint examiner:

Albert Graham Boswall

Ottawa, April 3, 2012

RICHARD WEX
Assistant Deputy Minister
Law Enforcement and Policing Branch

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DEPARTMENT OF TRANSPORT

CANADA MARINE ACT

Vancouver Fraser Port Authority — Supplementary letters patent

BY THE MINISTER OF TRANSPORT

WHEREAS, pursuant to Part 5.1 of the Port Authorities Management Regulations, the Governor in Council issued a Certificate to Amalgamate containing Letters Patent to amalgamate the port authorities of Vancouver, Fraser River and North Fraser to continue as the Vancouver Fraser Port Authority (“Authority”), effective January 1, 2008;

WHEREAS Schedule B of the Letters Patent describes the federal real property managed by the Authority;

WHEREAS the Authority, pursuant to subparagraph 46(1)(b)(i) of the Canada Marine Act (“Act”), wishes to exchange property with the British Columbia Ministry of Transportation and Infrastructure;

WHEREAS the board of directors of the Authority has requested that the Minister of Transport issue Supplementary Letters Patent to amend Schedule B of its Letters Patent to reflect this exchange of property;

AND WHEREAS the Minister of Transport is satisfied that the amendments to the Letters Patent of the Authority are consistent with the Act;

NOW THEREFORE under the authority of section 9 of the Canada Marine Act, the Letters Patent of the Authority are amended as follows:

1. The descriptions corresponding with PID numbers “011-929-472”, “006-667-813”, “011-826-622”, “011-239-590”, “001-460-684”, “007-789-548”, “008-042-349”, “006-126-073”, “006-126-031”, “006-126-111”, “024-045-063”, “009-650-521”, “009-650-555”, “009-650-679”, “023-171-588”, and “026-044-188” in Schedule B of the Letters Patent are replaced by the following:
PID Number Description
011-929-472 Lot 26 Except:
Firstly: Parcel “A” (Reference Plan 10807)
Secondly: Part on Plan 22258
Thirdly: Part shown as road on Plan EPP 371
District Lot 133, Group 2, New Westminster District Plan 852
006-667-813 Lot 9, District Lot 119, Group 2, New Westminster District Plan 31910
Except: Part shown as road on Plan EPP 371
011-826-622 Parcel “H” (Reference Plan 5503) Lot 8 Except:
Firstly: Lot “B”, Plan 22258
Secondly: Part subdivided by Plan 31910
Thirdly: Part shown as road on Plan EPP 371
District Lot 119, Group 2, New Westminster District Plan 843
011-239-590 Lot “A” Except:
Firstly: Part on Expropriation Plan 22258
Secondly: Part shown as road on Plan EPP 371
District Lot 119, Group 2, New Westminster District Plan 6890
001-460-684 Lot 1 Except:
Firstly: Part on Expropriation Plan 22258
Secondly: Part shown as road on Plan EPP 371
District Lot 119, Group 2, New Westminster District Plan 4205
007-789-548 Parcel “B” (P106206E) Lot 4 Except:
Firstly: Part on Plan 22258
Secondly: Part shown as Arterial Highway on Plan EPP 8934
District Lot 119, Group 2, New Westminster District Plan 4205
008-042-349 Lot “B” Except:
Firstly: Part on Plan 22258
Secondly: Part shown as Arterial Highway on Plan EPP 8934
District Lot 119, Group 2, New Westminster District Plan 6892
006-126-073 Lot 2 Except:
Firstly: Lot “B”, Plan 22258
Secondly: Part lying south of and adjacent to Lot “B”, Plan 22258
Thirdly: Parts shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan 843
006-126-031 Lot 1 Except:
Firstly: Lot “B”, Plan 22258
Secondly: Part lying south of and adjacent to Lot “B”, Plan 22258
Thirdly: Parts shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan 843
006-126-111 Lot 1 Except: Part shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan 7566
024-045-063 Lot “D” Except: Part shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan LMP36384
009-650-521 Lot “A” Except:
Firstly: Part subdivided by Plan 22258
Secondly: Part subdivided by Plan 51693
Thirdly: Part dedicated road on Plan LMP24531
Fourthly: Part shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan 12046
009-650-555 Lot “B” Except:
Firstly: Part subdivided by Plan 22258
Secondly: Part subdivided by Plan 51693
Thirdly: Part dedicated road on Plan LMP24531
Fourthly: Part shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan 12046
009-650-679 Lot “D”
Except: Part shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan 12046
023-171-588 Lot 1
Except: Part shown as Arterial Highway on Plan EPP 8939
District Lot 119, Group 2, New Westminster District Plan LMP24531
026-044-188 Lot 1 Except:
Firstly: Plan BCP31356
Secondly: Part shown as Arterial Highway on Plan EPP 8023
District Lots 7 and 8, Group 2, New Westminster District Plan BCP13196

Note: This amendment to the descriptions of federal real property in Schedule B of the Letters Patent is to allow for disposal of federal real property in favour of the British Columbia Ministry of Transportation and Infrastructure as part of the exchange.

2. Schedule B of the Letters Patent is amended by adding the following after PID number 026-044-188:
PID Number Description
011-085-762 Lot 2 Except:
Firstly: Parcel “A” (Explanatory Plan 9835)
Secondly: Part on Plan 22258
Thirdly: Part outlined in red on statutory right of way plan 51895 lying north of River Road
Fourthly: Part shown as road on Plan EPP 110
District Lot 119, Group 2, New Westminster District Plan 4205
002-253-429 Parcel “A” (Explanatory Plan 9835) Lot 2 Except:
Firstly: Part on Plan 22258
Secondly: Part outlined in red lying north of River Road shown onstatutory right of way plan 51895
Thirdly: Part shown as road on Plan EPP 110
Fourthly: Part shown as Arterial Highway on Plan EPP 12246
District Lot 119, Group 2, New Westminster District Plan 4205
003-412-351 Lot 12, District Lot 119, New Westminster District Plan 63777
009-361-081 Lot 3 Except:
Firstly: Part on Plan 22258
Secondly: Part subdivided by Plan 63777
Thirdly: Part shown as road on Plan EPP 110
Fourthly: Part shown as Arterial Highway on Plan EPP 12246
District Lot 119, Group 2, New Westminster District Plan 4205
011-239-638 Lot “A”, District Lot 119, Group 2, New Westminster District Plan 6892
011-239-662 Lot “D” Except:
Firstly: Part on Expropriation Plan 22258
Secondly: Part dedicated road on Plan LMP49803
Thirdly: Parts shown as Arterial Highway on Plan EPP 12246
District Lot 119, Group 2, New Westminster District Plan 6892
011-239-697 Parcel “One” (Explanatory Plan 12582) Lot “F” Except:
Firstly: Part on Expropriation Plan 22258
Secondly: Part dedicated road on Plan LMP49692
Thirdly: Parts shown as Arterial Highway on Plan EPP 12246
District Lot 119, Group 2, New Westminster District Plan 6892
011-239-701 Lot “F”, Except:
(1) Parcel “One” (Explanatory Plan 12582)
(2) Part shown on Expropriation Plan 22258
(3) Part dedicated road on Plan LMP52610
(4) Part shown as Arterial Highway on Plan EPP 12246
(5) Part shown as road on Plan EPP 374
District Lot 119, Group 2, New Westminster District Plan 6892

Note: This amendment to the descriptions of federal real property reflects the acquisition of real property from the British Columbia Ministry of Transportation and Infrastructure, as part of the exchange.

3. These Supplementary Letters Patent are to be effective on the date of registration in the New Westminster Land Title Office of the document evidencing the exchange of the real property between the British Columbia Ministry of Transportation and Infrastructure and Her Majesty the Queen in right of Canada.

Issued under my hand this 2nd day of April 2012.

____________________________
Denis Lebel, P.C., M.P.
Minister of Transport

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DEPARTMENT OF TRANSPORT

CANADA MARINE ACT

Vancouver Fraser Port Authority — Supplementary letters patent

BY THE MINISTER OF TRANSPORT

WHEREAS pursuant to Part 5.1 of the Port Authorities Management Regulations, the Governor in Council issued a Certificate to Amalgamate containing Letters Patent to amalgamate the port authorities of Vancouver, Fraser River and North Fraser to continue as the Vancouver Fraser Port Authority (“Port Authority”), effective January 1, 2008;

WHEREAS Schedule C of the Letters Patent describes the real property, other than federal real property, held or occupied by the Port Authority;

WHEREAS pursuant to subsection 46(2.1) of the Canada Marine Act (“Act”), the Port Authority wishes to acquire the real property described below from the British Columbia Hydro and Power Authority;

WHEREAS the board of directors of the Port Authority has requested that the Minister issue Supplementary Letters Patent to add to Schedule C of the Letters Patent the real property described below;

AND WHEREAS the Minister of Transport is satisfied that the amendments to the Letters Patent of the Authority are consistent with the Act;

NOW THEREFORE, pursuant to section 9 and subsection 46(2.1) of the Canada Marine Act, I authorize the Port Authority to acquire the said real property and I amend the Letters Patent as follows:

1. Schedule C is amended by adding the following after PID number 018-502-199:
PID Number Description
011-947-802 Block 9 Except:
Firstly: Part subdivided by Plan 15008
Secondly: Part subdivided by Plan 23496
Thirdly: Part subdivided by Reference Plan 79322
Fourthly: Part on Plan LMP51123
Fifthly: Part dedicated Road on Plan BCP4181
District Lot 757, Group 1, New Westminster District Plan 2620

2. These Supplementary Letters Patent are to be effective on the date of registration in the New Westminster Land Title Office of the transfer documents evidencing the transfer of real property described above, from the British Columbia Hydro and Power Authority to the Port Authority.

Issued under my hand this 2nd day of April, 2012.

_____________________________
Denis Lebel, P.C., M.P.
Minister of Transport

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DEPARTMENT OF TRANSPORT

CANADA MARINE ACT

Vancouver Fraser Port Authority — Supplementary letters patent

BY THE MINISTER OF TRANSPORT

WHEREAS, pursuant to Part 5.1 of the Port Authorities Management Regulations, the Governor in Council issued a Certificate to Amalgamate containing Letters Patent to amalgamate the port authorities of Vancouver, Fraser River and North Fraser to continue as the Vancouver Fraser Port Authority, effective January 1, 2008;

WHEREAS Schedule B of the Letters Patent describes the federal real property managed by the Vancouver Fraser Port Authority;

WHEREAS prior to the amalgamation of the Port Authorities mentioned above, the Fraser River Port Authority consolidated four legal parcels of federal real property described in Schedule B of their Letters Patent;

WHEREAS the Letters Patent of Fraser River Port Authority were not amended to reflect the said consolidation of federal real property. Consequently, the said consolidation is not reflected in Schedule B of the Letters Patent of the Vancouver Fraser Port Authority;

WHEREAS the board of directors of the Vancouver Fraser Port Authority has requested that the Minister of Transport issue Supplementary Letters Patent to amend Schedule B of its Letters Patent to reflect the said consolidation of federal real property;

AND WHEREAS the Minister of Transport is satisfied that the amendments to the Letters Patent of the Authority are consistent with the Canada Marine Act;

NOW THEREFORE under the authority of section 9 of the Canada Marine Act, the Letters Patent of the Vancouver Fraser Port Authority are amended as follows:

1. PID number 023-160-080 and its corresponding description are removed from Schedule B of the Letters Patent.

2. PID number 002-222-281 and its corresponding description are removed from Schedule B of the Letters Patent.

3. PID number 002-781-603 and its corresponding description are removed from Schedule B of the Letters Patent.

4. The federal real property described below is removed from Schedule B of the Letters Patent:

In addition to the above lands, All and singular that certain part, parcel or tract of land and premises, situate, lying and being a portion of Pine Road in District Lot 8, Group 2, dedicated on Plan 546, New Westminster District, which said portion may be more particularly described as follows:

commencing at the westernmost corner of Lot 3 of District Lots 7 and 8, Group 2, New Westminster District, Plan LMP23985:

thence a bearing of 128°42′00″, in a southeasterly direction and along the boundary of said Lot 3, and the production of said boundary for a distance of 130.835 metres, more or less, to a point on the boundary of said Lot 3;

thence a bearing of 218°41′25″, for a distance of 10.010 metres, more or less, to a point on the boundary of part of Lot 2, District Lot 8, Group 2, Plan LMP23985;

thence a bearing of 308°42′38″, and along the boundary of said Lot 2, for a distance of 130.837 metres, more or less, to the northernmost corner of said Lot 2;

thence a bearing of 38°42′15″, and along the boundary of Timberland Road, for a distance of 9.986 metres, more or less, to the point of commencement, and containing by admeasurement 0.131 hectares;

save and except from the lands described in paragraph 2:

  1. (a) All and singular that certain part, parcel or tract of land and premises, situate, lying and being a portion of Lot 3, District Lots 7 and 8, Group 2, New Westminster District, Plan LMP23985, which said portion may be more particularly described as follows:

commencing at the northernmost corner of said Lot 3;

thence a bearing of 128°41′52″, and along the boundary between said Lot 3 and Tannery Road, in a southeasterly direction, for a distance of 3.00 metres;

thence a bearing of 263°41′51″, for a distance of 4.243 metres, more or less, to a point on the boundary between said Lot 3 and Timberland Road;

thence a bearing of 38°42′15″, and along the boundary of said Lot 3, for a distance of 3.00 metres, more or less, to the point of commencement, and containing by admeasurement 4 square metres; and

5. Paragraph (b) in Schedule B of the Letters Patent, located under PID number 012-732-664, is replaced by the following:

save and except from the lands described in paragraph 2, the federal real property listed above under the administration of a member of the Queen’s Privy Council for Canada other than the Minister of Transport or any successor thereto, if that member has not given consent to the Minister in accordance with paragraph 44(2)(b) of the Act.

6. Schedule B of the Letters Patent is amended by adding the following after PID number 012-732-664:
PID Number Description
026-044-188 Lot 1, District Lots 7 and 8, Group 2, New Westminster District, Plan BCP13196 Except Plan BCP31356

7. These Supplementary Letters Patent are to be effective on the date of issuance.

Issued under my hand this 2nd day of April 2012.

___________________________
Denis Lebel, P.C., M.P.
Minister of Transport

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NOTICE OF VACANCY

CANADIAN TRANSPORTATION AGENCY

Vice-Chairperson and Member (full-time position)

The Canadian Transportation Agency is an independent, quasi-judicial tribunal that makes decisions on a wide range of economic matters involving federally regulated modes of transportation (air, rail and marine), and has the powers, rights and privileges of a superior court to exercise its authority. Along with its roles as an economic regulator and an aeronautical authority, the Agency works to facilitate accessible transportation, and serves as a dispute resolution authority over certain transportation rate and service complaints.

The Vice-Chairperson, as Member of the Agency, assists and provides advice to the Chairperson in the oversight and provision of fair quasi-judicial decisions, regulatory interventions, and mediation of disputes relating to the federal transportation system. The Vice-Chairperson exercises and performs all the powers, duties and functions of the Chairperson in his/her absence or incapacity, or if the office is vacant. When requested by the Chairperson, the Vice-Chairperson represents the Canadian Transportation Agency and fulfills functions assigned by the Chairperson.

The successful candidate must have a degree from a recognized university in the field of transportation, economics, law, public administration, business administration, commerce or political science, or a combination of relevant education, job-related training and/or experience. Experience managing at the senior executive level in large, complex private or public sector organizations is required. Experience in dealing with government, preferably with senior government officials, is required. In addition, experience working in a regulated industry, in the field of transportation, in administrative law or with quasi-judicial tribunals would be considered an asset.

The qualified candidate will possess knowledge of the mandate of the Canadian Transportation Agency, its role and its quasi-judicial, dispute resolution and regulatory functions. Knowledge of the operations of government, including management practices and policies is a requisite. Knowledge of the federally regulated transportation industry, its structure, performance characteristics and economic impact, as well as trends, issues and developments related to the industry is required. The chosen candidate will be knowledgeable of economic, financial and management concepts and how they pertain to regulatory activities and to the analysis of transportation issues. The preferred candidate will be knowledgeable in the interpretation and application of legislation, regulations and policies in a decision-making environment.

The selected candidate will possess sound judgment and integrity, high ethical standards and fairness, superior interpersonal skills, tact and diplomacy. The ability to be impartial and analyze differing opinions and complex situations with a view to making decisions that are fair and equitable is required. Excellent managerial and leadership skills, including the ability to manage conflicting priorities, are essential. The successful candidate must possess superior communication skills, both written and oral, and the ability to act as a spokesperson in dealing with stakeholders, media, public institutions, governments and other organizations. In addition, the qualified candidate must possess the ability to foster debate and discussion among members and facilitate consensus, as well as manage conflicts, should they arise.

Proficiency in both official languages would be preferred.

The Vice-Chairperson and Member must reside in or relocate to the National Capital Region or to a location within a reasonable commuting distance. They must also be willing to travel to hearings and for meetings with stakeholders.

The Vice-Chairperson and Member shall not be engaged or have an interest in a transportation business or in the manufacture or distribution of transportation equipment.

A member must be a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection Act.

The Government is committed to ensuring that its appointments are representative of Canada’s regions and official languages, as well as of women, Aboriginal peoples, disabled persons and visible minorities.

The selected candidate must comply with the Ethical and Political Activity Guidelines for Public Office Holders. The guidelines are available on the Governor in Council Appointments Web site, under “Reference Material,” at www.appointments-nominations.gc.ca.

The selected candidate will be subject to the Conflict of Interest Act. Public office holders appointed on a full-time basis must submit to the Office of the Conflict of Interest and Ethics Commissioner, within 60 days of appointment, a confidential report in which they disclose all of their assets, liabilities and outside activities. For more information, please visit the Office of the Conflict of Interest and Ethics Commissioner’s Web site at http://ciec-ccie.gc.ca.

This notice has been placed in the Canada Gazette to assist the Governor in Council in identifying qualified candidates for this position. It is not, however, intended to be the sole means of recruitment.

Further details about the organization and its activities can be found on its Web site at www.otc-cta.gc.ca.

Interested candidates should forward their curriculum vitae by May 11, 2012, to the Assistant Secretary to the Cabinet (Senior Personnel), Privy Council Office, 59 Sparks Street, 1st Floor, Ottawa, Ontario K1A 0A3, 613-957-5006 (fax), GICA-NGEC@bnet.pco-bcp.gc.ca (email).

English and French notices of vacancies will be produced in an alternative format (audio cassette, diskette, Braille, large print, etc.) upon request. For further information, please contact Publishing and Depository Services, Public Works and Government Services Canada, Ottawa, Ontario K1A 0S5, 613-941-5995 or 1-800-635-7943.

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NOTICE OF VACANCY

NATIONAL BATTLEFIELDS COMMISSION

Commissioner and Chairperson (part-time position)

The National Battlefields Commission (the Commission) was established in 1908 under the National Battlefields at Quebec Act to acquire and preserve the great historic battlefields in Québec City, and turn them into a national park. The grounds, which group together the Plains of Abraham and the Des Braves Park, constitute one of the most important historic sites in Canada. Commonly called the Plains of Abraham, the site is the largest urban park in Québec and ranks among the prestigious parks in the world. The Commission must reconcile the Plains of Abraham’s historic significance with its mission as an urban park. As a federal government agency within the Canadian Heritage Portfolio, the Commission is responsible for preserving this historic Canadian legacy for future generations through the administration, management, conservation and promotion of National Battlefields Park, as well as for managing the funds allocated for this purpose. The Commission offers a wide range of educational and interpretation activities, allowing Canadians to discover or broaden their knowledge about a significant period in the history of the country, and to raise awareness about the richness of this prestigious patrimonial site.

The Board of Directors has overall stewardship of the organization and is expected to provide strategic guidance to management and to oversee the activities of the Commission. It has a duty to act in the best interests of the Commission and to exercise care and due diligence. The chairperson is responsible for the proper conduct of the Board meetings in such a way that the Commission carries out its mandate and objectives effectively, ensures good value for the funding provided by taxpayers, remains viable and holds management accountable for its performance.

The successful candidate must possess a degree from a recognized university or an acceptable combination of relevant education, job-related training and/or experience. Experience on a board of directors, preferably as chairperson, is essential, as well as experience at the senior management level within the private or public sector. The ideal candidate possesses experience in dealing with different levels of government, including senior officials, and has experience in maintaining effective relationships with multiple stakeholders who hold divergent views. Experience in the development of strategies, objectives, plans, best business practices and in corporate governance would be considered an asset.

The ideal candidate must possess knowledge of the legislative framework, mandate and activities of the Commission, as well as knowledge of the principal stakeholders and of the groups affected by the activities of the Commission. Knowledge of the role and responsibilities of the chairperson, the board and the head of a similar organization is essential. The position requires knowledge of sound governance principles, strategic planning, monitoring and evaluation of performance. The preferred candidate must be financially literate and possess knowledge of the government’s expectations with regard to accountability and reporting. Knowledge of the cultural, patrimonial and/or recreational tourism sectors is also essential. Knowledge of issues specific to Québec City would be an asset.

The position requires superior leadership and management skills to enable the Board to accomplish its work effectively. The selected candidate should be able to lead discussions, foster debate among Board members, facilitate consensus and manage conflicts, should they arise. The ability to anticipate emerging issues and to develop strategies to enable the Board to seize opportunities and to solve problems is essential. The qualified candidate must have the ability to develop and maintain effective relationships with the Commission’s management, the Minister of Canadian Heritage, his office, the Deputy Minister of Canadian Heritage, the Commission’s key stakeholders and partners, and with the three levels of government. Superior communication skills, both written and oral, are necessary, as well as the ability to act as the Commission’s spokesperson in dealing with the Government, the media, the Commission’s stakeholders and partners, and other organizations.

The selected candidate must possess leadership and be a person of sound judgment and integrity. The chosen candidate must adhere to high ethical standards and have superior interpersonal skills, tact and diplomacy.

Proficiency in both official languages is preferred.

The Commission’s board of directors meets approximately six to eight times per year in Québec City. The average annual time commitment is four to six weeks.

No member of the Commission shall have any contract with the Commission, or be pecuniarily interested, directly or indirectly, in any contract or work with regard to which any portion of the moneys at the credit of the Commission is being or is to be expended.

The Government is committed to ensuring that its appointments are representative of Canada’s regions and official languages, as well as of women, Aboriginal peoples, disabled persons and visible minorities.

The preferred candidate must comply with the Ethical and Political Activity Guidelines for Public Office Holders. The guidelines are available on the Governor in Council Appointments Web site, under “Reference Material,” at www.appointments-nominations.gc.ca.

The selected candidate will be subject to the Conflict of Interest Act. For more information, please visit the Office of the Conflict of Interest and Ethics Commissioner’s Web site at http://ciec-ccie.gc.ca.

This notice has been placed in the Canada Gazette to assist the Governor in Council in identifying qualified candidates for this position. It is not, however, intended to be the sole means of recruitment.

Further details about the organization and its activities can be found on its Web site at www.ccbn-nbc.gc.ca.

Interested candidates should forward their curriculum vitae by May 11, 2012, to the Assistant Secretary to the Cabinet (Senior Personnel), Privy Council Office, 59 Sparks Street, 1st Floor, Ottawa, Ontario K1A 0A3, 613-957-5006 (fax), GICA-NGEC@bnet.pco-bcp.gc.ca (email).

English and French notices of vacancies will be produced in an alternative format (audio cassette, diskette, Braille, large print, etc.) upon request. For further information, please contact Publishing and Depository Services, Public Works and Government Services Canada, Ottawa, Ontario K1A 0S5, 613-941-5995 or 1-800-635-7943.

[16-1-o]