A-117-00
2001 FCA 236
Barrie Public Utilities, Essex Public Utilities
Commission, Guelph Hydro, Innisil Hydro, Leamington Public
Utilities Commission, Markham Hydro Electric Commission,
Mississauga Hydro Electric Commission, Niagara-On-The-Lake
Hydro Electric Commission, The Hydro Electric Commission of
North Bay, Oakville Hydro, Orillia Water, Light and Power,
Perth Public Utilities Commission, Richmond Hill Hydro
Electric Commission, Shelburne Hydro, Stoney Creek
Hydro-Electric Commission, Stratford Public Utility
Commission, Toronto Hydro-Electric Commission (Formerly Hydro
Electric Commission of the City of North York and the Public
Utilities Commission of the City of Scarborough), Waterloo
North Hydro and Kitchener-Wilmot Hydro
(Appellants)
v.
Canadian Cable Television Association
(Respondent)
and
Canadian Radio-television and Telecommunications
Commission, Saskatchewan Power Corporation and
Attorney General of New Brunswick (Interveners)
Indexed as: Barrie Public
Utilitiesv. Canadian Cable
Television Assn. (C.A.)
Court of Appeal, Desjardins, Rothstein and Sharlow
JJ.A.--Toronto, June 13 and 14; Ottawa, July 13, 2001.
Construction of Statutes
-- Telecommunications Act, s. 43(5) permitting person who
provides services to public and who cannot gain access to
supporting structure of transmission line constructed on
highway or other public place to apply to CRTC for right of
access to supporting structure -- Appeal from CRTC order
granting cable television companies access to poles owned by
provincially regulated power utilities -- Interpretation of
"transmission line" must be justified in terms of
plausibility, efficacy, acceptability -- "Transmission line"
capable of general meaning, including transmission lines used
to distribute electrical power, and technical meaning (high
voltage lines carrying electricity over long distances with
minor losses) -- Generally presumption non-technical meaning
intended unless context requiring otherwise -- S. 43(5)
requiring reading down -- CRTC reading down either "person
who provides services to public" or "transmission line",
depending on which necessary to ensure compliance with
constitutional, jurisdictional limits -- CRTC not having read
down words consistently -- Parliament held not to intend
flexible reading down when not so expressly stating --
"Person who provides services to the public" necessarily
applicant for access, not subject of CRTC's regulatory
jurisdiction -- Since Parliament must have intended such term
be unrestricted, "transmission line" must refer to
transmission line constructed by undertakings subject to CRTC
jurisdiction, i.e. Canadian carriers, distribution
undertakings -- S. 43 as whole supporting this construction
-- Similarity in wording with other subsections strong
indicator Parliament intended same transmission lines i.e.
those of Canadian carrier, distribution undertaking --
Presumption against redundancy not persuasive -- Argument by
using different words in s. 43(5) from those used elsewhere
dealing with transmission lines, Parliament intending
different thing, overlooking relationship between s. 43(5),
balance of s. 43 -- Implicit, unless context requiring
contrary interpretation, transmission lines in subsequent
subsection of same section similarly qualified (presumption
of consistency of expression) -- Presumption not rebutted --
S. 43(5) should not inject whole new meaning into term --
Scheme of s. 43(5), sequence after s. 43(4) make it unlikely
Parliament intended access to support structures of existing
transmission lines would be consideration resulting in CRTC
refusing permission for construction -- Policy objectives not
conferring powers not bestowed by enabling statutes --
Legislative history supporting interpretation.
Telecommunications
-- Appeal from CRTC decision under Telecommunications Act,
s. 43(5) granting cable companies access to poles owned by
provincially regulated electric power utilities at fixed
annual price per pole -- S. 43(5) permitting person who
provides services to public and who cannot gain access to
supporting structure of transmission line constructed on
highway or other public place to apply to CRTC for right of
access to supporting structure -- In context of s. 43(5), s.
43 as whole, and having regard to legislative history,
"transmission line" in s. 43(5) referring to transmission
lines of Canadian carriers and distribution undertakings only
-- Policy objectives in Telecommunications Act, Broadcasting
Act implemented only in accordance with powers conferred by
Acts -- Policies themselves not conferring jurisdiction --
Efficiency, avoidance of duplication of infrastructures could
be attained through agreement or by regulation by provincial
utility boards -- S. 43(5) not conferring on CRTC
jurisdiction to regulate access, terms of access to support
structures of transmission lines owned by appellants.
Administrative Law
--
Statutory Appeals
-- Appeal from CRTC decision under Telecommunications Act,
s. 43(5) granting cable companies access to poles owned by
provincially regulated electric power utilities at fixed
annual price per pole -- Pragmatic, functional approach to
determination of standard of review -- Whether "transmission
lines" in s. 43(5) referring only to transmission lines of
Canadian carriers and distribution undertakings as in s.
43(2), (3), (4) or including all transmission lines, question
of statutory interpretation, question of law -- Involves
scope of CRTC's regulatory authority -- Determination of
question having precedential importance -- Parliament not
intending to leave determination of such question to
exclusive decision of CRTC -- Other factors supporting
finding: statutory right of appeal on question of law with
leave, nature of question not involving CRTC's expertise --
Appropriate standard of review correctness.
This was an appeal from an order made by the CRTC under
Telecommunications Act, subsection 43(5) granting
television cable companies access to poles owned by the
appellants at a fixed annual rate per pole. The appellants
are provincially regulated electric power utilities that
distribute electricity in various Ontario municipalities. As
part of that business, they erect and maintain support
structures, mainly poles, which provide support for
above-ground electric wires. The members of the respondent
Association provide cable television service to more than 7
million households. Subsection 43(5) permits a person who
provides services to the public and who cannot gain access to
the supporting structure of a transmission line constructed
on a highway or other public place to apply to the CRTC for a
right of access to the supporting structure. CRTC held that
according to the ordinary dictionary meaning, "transmission
line" includes lines used to distribute electricity. The term
was not narrowed as it was in other subsections of section
43, as being a transmission line of a Canadian carrier (by
definition a telecommunications carrier such as a telephone
company) or distribution undertaking (in this case, the
undertaking of a cable company). In the CRTC's opinion, the
legislative history leading to the enactment of subsection
43(5) supported the view that it should be construed broadly
to include the support structures of all utilities including
the appellants and other power utilities. According to the
CRTC, this view was supported by the telecommunications
policy objectives in Telecommunications Act, section 7
and the broadcasting policy objectives in Broadcasting
Act, section 3 and the broader public interest such as
environmental impact and aesthetic consequences of avoidable
duplicate infrastructures.
The issue was whether subsection 43(5) confers on the CRTC
the authority to grant cable television companies access to
the poles owned by provincially regulated power
utilities.
Held, the appeal should be allowed.
Subsection 43(5) did not authorize the CRTC to make
Telecom Decision CRTC 99-13.
A determination of the appropriate standard of review of a
decision of an administrative tribunal calls for the
application of the pragmatic and functional approach,
according to which the central question is whether the
legislators intended the question raised by the provision to
be left to the exclusive decision of the administrative
tribunal. Whether "transmission lines" in subsection 43(5)
refers only to transmission lines of Canadian carriers and
distribution undertakings, or to all transmission lines,
irrespective of ownership, is a question of statutory
interpretation and therefore a question of law. If
"transmission line" is held to apply to all transmission
lines regardless of ownership, that would empower the CRTC to
order access to support structures owned by utilities not
otherwise within the Commission's jurisdiction. Since the
decision herein involves the scope of the CRTC's regulatory
authority and will stand as a precedent, it could not be
thought that Parliament intended to leave the determination
of such a question to the exclusive decision of the CRTC.
Having regard to the question of statutory interpretation
under consideration, the fact that there is a statutory right
of appeal on a question of law upon leave being granted, and
the fact that the nature of the question is not one that
involves the expertise of the CRTC, the appropriate standard
of review is that of correctness.
The words of subsection 43(5) must be read in their
statutory context to arrive at an interpretation of
"transmission line" that is justified in terms of
plausibility, efficacy and acceptability. According to the
appellants, power utilities recognize a distinction between
transmission lines, which are high voltage lines carrying
electricity over long distances with minor losses, and
distribution lines, which carry electricity relatively
inefficiently over short distances. The support structures in
issue are the poles supporting what the power utilities refer
to as "distribution lines", not "transmission lines".
"Transmission line", read literally and in isolation, is
capable of bearing either meaning. Generally, where words may
bear either a technical or non-technical meaning, the Court
will presume that the non-technical meaning was intended
unless the context requires otherwise.
Neither the term "person who provides services to the
public" nor the term "transmission line" in subsection 43(5)
is qualified. Because it is obvious that subsection 43(5)
does not confer on the CRTC the authority to grant access to
any poles supporting transmission lines whenever any person
applies for access (thus exceeding federal and CRTC
jurisdiction), subsection 43(5) must be read down. The CRTC
read down either the term "person who provides services to
the public" or the term "transmission line" in subsection
43(5) on a case-by-case basis, depending on which is
necessary to ensure compliance with its constitutional and
jurisdictional limits. While reading down legislation to
comply with jurisdictional limits is an acceptable strategy,
the CRTC has not read down the words consistently. It could
not be held that Parliament intended this flexible reading
down, depending upon the facts of individual cases, when this
was not expressly stated.
Also, the term "person who provides services to the
public" in subsection 43(5) refers to the applicant for
access and not to the person that is subject to the
regulatory jurisdiction of the CRTC, i.e. the person against
whom the access order is made. In this context, there is no
reason to apply jurisdictional or constitutional constraints
to the term. It is reasonable to conclude that the term
"person who provides services to the public" was intended by
Parliament to be unrestricted. Therefore "transmission line"
must be a transmission line constructed by undertakings
subject to CRTC jurisdiction, namely Canadian carriers or
distribution undertakings and cannot include the transmission
lines of the appellants.
This construction is supported by the context of section
43 as a whole. In subsections 43(2), (3) and (4), the
transmission lines at issue are clearly those to be
constructed, maintained or operated by a Canadian carrier or
distribution undertaking on a highway or other public place.
Subsection 43(5) is not concerned with granting Canadian
carriers or distribution undertakings permission to construct
transmission lines, but with access by persons who provide
services to the public to support structures of transmission
lines already constructed on a highway or other public place.
However, the word formula "transmission line constructed on a
highway or other public place" in subsection 43(5) bears a
remarkable similarity to the words describing the
transmission lines contemplated in subsections 43(2), (3) and
(4). This similarity in wording is a strong indicator that
Parliament had in mind the same transmission lines, i.e. the
transmission lines of a Canadian carrier or distribution
undertaking in all subsections.
The argument that access to transmission lines of Canadian
carriers and distribution undertakings is already provided
for and Parliament should not be presumed to enact a
redundancy, was not accepted. First, subsection 43(5)
authorizes the CRTC to grant access to the support structures
of distribution undertakings, something the CRTC did
not have jurisdiction to do without subsection 43(5). Second,
subsection 43(5) makes the CRTC's jurisdiction to grant
access to the support structures of Canadian carriers
explicit. It was not clear that, in the absence of subsection
43(5) the CRTC would have such authority.
The respondent stated that by using different words in
subsection 43(5) from those used elsewhere dealing with
transmission lines, Parliament must have intended a different
thing. This argument overlooked the relationship between
subsection 43(5) and the balance of section 43. Where, in
prior subsections, transmission lines are those of Canadian
carriers or distribution undertakings, it is implicit, unless
the context requires a contrary interpretation, that the
transmission lines in a subsequent subsection of the same
section would be similarly qualified. This is the presumption
of consistency of expression. As subsections 43(2), (3) and
(4) each deal with transmission lines constructed by Canadian
carriers or distribution undertakings on highways or other
public places, the reference in subsection 43(5) to a
transmission line constructed on a highway or other public
place, is intended to mean the same transmission line. The
presumption of consistency of expression was not rebutted.
Finally, had Parliament intended that the CRTC be authorized
to grant access to all kinds of transmission lines, including
those of power utilities, it is more likely that it would
have framed a free-standing section of the Act to that
effect. It would not have drafted a subsection as the final
element of a section which deals exclusively with
transmission lines of Canadian carriers and distribution
undertakings.
The scheme of subsection 43(5) and its sequence after
subsection 43(4) makes it unlikely that Parliament intended
that access to support structures of existing transmission
lines would be a consideration that could result in the CRTC
refusing permission for construction under subsection 43(4).
If such were the case, subsection 43(5) would not require an
access application to engage the CRTC's jurisdiction. The
legislation would provide that the CRTC, in considering a
construction application by a Canadian carrier or
distribution undertaking under subsection 43(4), could either
make an order permitting construction or having regard to the
use and enjoyment of the highway or other public place by
others, order that the Canadian carrier or distribution
undertaking be given access to support structures of existing
transmission lines.
It is not the Court's function to approve or disapprove of
policy objectives. But the CRTC does not have plenary power
to implement policies. Its power is established under the
Acts and other relevant legislation, and the policy
objectives of those Acts may be implemented by the CRTC only
in accordance with the powers and duties conferred on it
under those Acts. The policies themselves do not confer
jurisdiction on the CRTC and they cannot be used as a basis
for exercising a power that the CRTC has not been granted by
the statutes. Subsection 43(5) does not confer on the CRTC
the power to grant access to support structures of all
transmission lines. The policies of the Telecommunications
Act and Broadcasting Act must therefore be
implemented by the CRTC having regard to that constraint.
Efficiency and avoidance of duplication of infrastructures
may be attained without the CRTC having jurisdiction to make
access orders to the transmission lines of power utilities,
either by entering into agreements with power utilities or by
access regulated by provincial utility boards. If a power
utility has capacity on its support structures to accommodate
the transmission lines of Canadian carriers and there are no
technical reasons for not doing so, it is logical that the
utility would grant access as rates acceptable to it and that
carriers would find this preferable to constructing their own
support structures.
Finally, the legislative history supported the view that,
in response to submissions of the provinces regarding the
proliferation of undertakings to "dig up highways", and in
order to regulate access to support structures of
transmission lines as between Canadian carriers and
distribution undertakings, subsection 43(5) was enacted to
grant access to support structures of the transmission lines
of Canadian carriers and distribution undertakings by each
other and by other persons who provide services to the
public.
statutes and regulations
judicially considered |
Broadcasting
Act, S.C. 1991, c. 11, ss. 2(1) "distribution
undertaking", 3, 5(1). |
Canadian
Radio-television and Telecommunications Commission
Act, R.S.C., 1985, c. C-22. |
Constitution
Act, 1867, 30 & 31 Vict., c. 3 (U.K.) (as am.
by Canada Act, 1982, 1982, c. 11 (U.K.),
Schedule to the Constitution Act, 1982, Item 1)
[R.S.C., 1985, Appendix II, No. 5]. |
National
Transportation Act, R.S.C. 1970, c. N-17, s.
51. |
Ontario
Energy Board Act, 1998, being Sch. B of the
Energy Competition Act, 1998, S.O. 1998, c. 15,
s. 70. |
Public
Utilities Act, R.S.N. 1990, c. P-47, s. 53. |
Public
Utilities Board Act, R.S.A. 1980, c. P-37, s.
88. |
Railway
Act, R.S.C. 1970, c. R-2, s. 317. |
Telecommunications
Act, S.C. 1993, c. 38, ss. 7, 25, 27, 42,
43(1),(2),(3),(4),(5), 44, 47(a), 52(1),
64(1). |
Utilities
Commission Act, R.S.B.C. 1996, c. 473, s. 27. |
cases judicially
considered |
U.E.S.,
Local 298 v. Bibeault, [1988] 2 S.C.R. 1048;
(1988), 35 Admin. L.R. 153; 95 N.R. 161; Pezim v.
British Columbia (Superintendent of Brokers),
[1994] 2 S.C.R. 557; (1994), 114 D.L.R. (4th) 385;
[1994] 7 W.W.R. 1; 92 B.C.L.R. (2d) 145; 22 Admin. L.R.
(2d) 1; 14 B.L.R. (2d) 217; 4 C.C.L.S. 117; Canada
(Director of Investigation and Research) v. Southam
Inc., [1997] 1 S.C.R. 748; (1997), 144 D.L.R. (4th)
1; 50 Admin. L.R. (2d) 199; 71 C.P.R. (3d) 417; 209
N.R. 20; Pushpanathan v. Canada (Minister of
Citizenship and Immigration), [1998] 1 S.C.R. 982;
(1998), 160 D.L.R. (4th) 193; 11 Admin. L.R. (3d) 1; 43
Imm. L.R. (2d) 117; 226 N.R. 201; amended reasons
[1998] 1 S.C.R. 1222; (1998), 11 Admin. L.R. (3d) 130;
Thomson v. Canada (Deputy Minister of
Agriculture), [1992] 1 S.C.R. 385; (1992), 89
D.L.R. (4th) 218; 3 Admin. L.R. (2d) 242; 133 N.R.
345. |
Committee
for Equal Treatment of Asbestos Minority Shareholders
v. Ontario (Securities Commission) (2001), 199
D.L.R. (4th) 577 (S.C.C.); Canada (Deputy Minister
of National Revenue -- M.N.R.) v. Mattel Canada
Inc. (2001), 199 D.L.R. (4th) 598 (S.C.C.);
British Columbia Telephone Co. v. Shaw Cable Systems
(B.C.) Ltd., [1995] 2 S.C.R. 739; (1995), 125
D.L.R. (4th) 443; 31 Admin. L.R. (2d) 169; 183 N.R.
184; Transvision (Magog) Inc. v. Bell Canada,
[1975] C.T.C. 463. |
Canada
House of Commons. Sub-Committee on Bill C-62
(Telecommunications). Minutes of Proceedings and
Evidence of the Sub-Committee on Bill C-62 of the
Standing Committee on Communications and Culture.
Ottawa. The Sub-Committee, 1993. |
Canada.
Local Networks Convergence Committee. Convergence:
Competition and Cooperation. Policy and Regulation
Affecting Local Telephone and Cable Networks. Reports
of the Co-chairs of the Local Networks Convergence
Committee, Ottawa: Minister of Supply and Services
Canada, 1992. |
Sullivan,
Ruth. Driedger on the Construction of Statutes,
3rd ed. Toronto: Butterworths, 1994. |
APPEAL from a CRTC order made under Telecommunications
Act, s. 43(5) granting television cable companies access
to poles owned by provincially regulated power utilities at a
fixed annual rate per pole (CCTA v. MEA et al.,
Telecom Decision CRTC 99-13). Appeal allowed on the ground
that the CRTC exceeded the jurisdiction conferred by
subsection 43(5).
Alan H. Mark and
Peter D. Ruby for appellants. |
Thomas G. Heintzman,
Susan L. Gratton and Sally P. Bryant for
respondent. |
C. Gabriel Bourgeois
and Gaétan Migneault for intervener
Attorney General of New Brunswick. |
Robert G. Richards,
Q.C. for intervener Saskatchewan Power
Corporation. |
William A. Howard
and C. Pinsky for intervener Canadian
Radio-television and Telecommunications
Commission. |
Peter M. Southey for
Attorney General of Canada. |
Goodman Phillips &
Vineberg, Toronto, for appellants. |
McCarthy
Tétrault, Toronto, for respondent. |
Attorney General of New
Brunswick, Fredericton, for intervener Attorney
General of New Brunswick. |
MacPherson Leslie &
Tyerman, Regina, for intervener Saskatchewan Power
Corporation. |
Canadian
Radio-television and Telecommunications Commission,
Hull, Quebec, for intervener Canadian Radio-television
and Telecommunications Commission. |
The following are the reasons for judgment rendered in
English by
Rothstein J.A.:
INTRODUCTION
[1]The appellants are provincially regulated electric
power utilities in Ontario. They are appealing Telecom
Decision CRTC 99-13 [CCTA v. MEA et al.], a September
28, 1999 order of the Canadian Radio-television and
Telecommunications Commission (CRTC) made under subsection
43(5) of the Telecommunications Act, S.C. 1993, c. 38.
The order grants television cable companies access to poles
owned by the appellants at a rate of $15.89 per pole per
year. Leave to appeal was granted by this Court under
subsection 64(1) of the Telecommunications Act.
ISSUES
[2]The issues raised by the appellants on appeal are:
1. Does subsection 43(5) of the Telecommunications
Act confer on the CRTC the authority to grant cable
television companies access to the poles owned by
provincially regulated power utilities?
2. If so, is subsection 43(5) constitutionally valid as
being within the legislative jurisdiction of the Parliament
of Canada?
3. If so, was there evidence before the CRTC to support
the rate of $15.89?
[3]As I have concluded that subsection 43(5) does not
authorize the CRTC to make Telecom Decision CRTC 99-13, it
will not be necessary to address the second and third
issues.
FACTS
[4]At all relevant times, the appellants were power
utilities that distributed electricity in certain Ontario
municipalities. For the purpose of their business, the
appellants erect and maintain support structures, mainly
poles, which provide support for above-ground electric wires.
There is no dispute that the appellants are subject to the
legislative jurisdiction of the Province of Ontario.
[5]The members of the Canadian Cable Television
Association provide cable television service to more than 7
million households in Canada. Before the CRTC, the
Association represented Cablenet (a division of Cogeco Cable
Inc.), Pierre Juneau (as trustee for 3305911 Canada Inc. in
respect of certain cable distribution undertakings that were
to be sold by Rogers Cable Systems Ltd.), Rogers Cable
Systems Limited and its subsidiaries, and Shaw Cable Systems
Ltd. and its subsidiaries.
[6]For many years, cable companies and power utilities
entered into agreements which provided the cable companies
with access to the utilities' poles for the purpose of
supporting cable television transmission lines. Such access
allowed cable companies to provide their services without
installing their own support structures.
[7]The most recent agreements expired on or before
December 31, 1996. Negotiations did not result in new
agreements and as a result, the Canadian Cable Television
Association applied to the CRTC for an order for access to
the appellants' poles at rates to be fixed by the CRTC.
[8]The application resulted in Telecom Decision CRTC
99-13, granting the cable companies access to the appellants'
poles at the rate of $15.89 per year. That decision is the
subject of this appeal.
SECTION 43 OF THE TELECOMMUNICATIONS ACT
[9]Section 43 of the Telecommunications Act
provides:
43. (1) In this section and section 44,
"distribution undertaking" has the same meaning as in
subsection 2(1) of the Broadcasting Act.
(2) Subject to subsections (3) and (4) and section 44, a
Canadian carrier or distribution undertaking may enter on and
break up any highway or other public place for the purpose of
constructing, maintaining or operating its transmission lines
and may remain there for as long as is necessary for that
purpose, but shall not unduly interfere with the public use
and enjoyment of the highway or other public place.
(3) No Canadian carrier or distribution undertaking shall
construct a transmission line on, over, under or along a
highway or other public place without the consent of the
municipality or other public authority having jurisdiction
over the highway or other public place.
(4) Where a Canadian carrier or distribution undertaking
cannot, on terms acceptable to it, obtain the consent of the
municipality or other public authority to construct a
transmission line, the carrier or distribution undertaking
may apply to the Commission for permission to construct it
and the Commission may, having due regard to the use and
enjoyment of the highway or other public place by others,
grant the permission subject to any conditions that the
Commission determines.
(5) Where a person who provides services to the public
cannot, on terms acceptable to that person, gain access to
the supporting structure of a transmission line constructed
on a highway or other public place, that person may apply to
the Commission for a right of access to the supporting
structure for the purpose of providing such services and the
Commission may grant the permission subject to any conditions
that the Commission determines.
THE CRTC DECISION
[10]In making Telecom Decision CRTC 99-13, the CRTC relied
on subsection 43(5) of the Telecommunications Act. In
interpreting subsection 43(5), the CRTC considered that terms
and phrases must be interpreted based on their ordinary
meanings as well as the context of the Act. The CRTC found
that "transmission line", as defined in ordinary
dictionaries, would include lines used to distribute
electricity. The term was not narrowed, as it was in other
subsections of section 43, as being a transmission line of a
Canadian carrier (by definition a telecommunications carrier
such as a telephone company) or distribution undertaking (in
this case, the undertaking of a cable company).
[11]In the opinion of the CRTC, the legislative history
leading to the enactment of subsection 43(5) supports the
view that the subsection should be construed broadly to
include the support structures of all utilities including the
appellants and other power utilities. According to the CRTC,
this interpretation of subsection 43(5) is further supported
by the telecommunications policy objectives in section 7 of
the Telecommunications Act and the broadcasting policy
objectives in section 3 of the Broadcasting Act, S.C.
1991, c. 11 and the broader public interest, such as
detrimental environmental and aesthetic consequences of
avoidable duplicate infrastructures.
ANALYSIS
Standard of Review
[12]A determination of the appropriate standard of review
in respect of a decision of an administrative tribunal calls
for the application of the pragmatic and functional approach
first adopted by the Supreme Court of Canada in U.E.S.,
Local 298 v. Bibeault, [1988] 2 S.C.R. 1048 and as
further developed in Pezim v. British Columbia
(Superintendent of Brokers), [1994] 2 S.C.R. 557; and
Canada (Director of Investigation and Research) v. Southam
Inc., [1997] 1 S.C.R. 748. The recent jurisprudence of
the Supreme Court was summarized by Bastarache J. in
Pushpanathan v. Canada (Minister of Citizenship and
Immigration), [1998] 1 S.C.R. 982. The focus of the
inquiry is on the particular provision being interpreted by
the tribunal and the central question is: is the question
that the provision raises one that was intended by the
legislators to be left to the exclusive decision of the
administrative tribunal? (See Committee for Equal
Treatment of Asbestos Minority Shareholders v. Ontario
(Securities Commission) (2001), 199 D.L.R. (4th) 577
(S.C.C.), at paragraph 47; and Canada (Deputy Minister of
National Revenue--M.N.R.) v. Mattel Canada Inc. (2001),
199 D.L.R. (4th) 598 (S.C.C.), at paragraph 24.)
[13]Based on these authorities, it is necessary to
consider the appropriate standard of review in relation to
the CRTC's interpretation of subsection 43(5), which, as I
have said, is the only issue that requires consideration in
this appeal. Whether the term "transmission line" in
subsection 43(5) refers only to transmission lines of
Canadian carriers and distribution undertakings or to all
transmission lines, irrespective of ownership, is one of
statutory interpretation and is therefore a question of law.
It involves the scope of the CRTC's regulatory authority. If
the term "transmission line" is found to include all
transmission lines, irrespective of ownership, the regulatory
authority of the CRTC to make an access order will, according
to the statute, not be limited to ordering access to the
support structures of Canadian carriers and distribution
undertakings, but will extend to transmission lines of power
utilities and others not otherwise subject to the
jurisdiction of the CRTC. The determination of this question
will have precedential importance; its impact will not be
limited to the appellants only. In light of this
consideration, I do not think that Parliament intended to
leave the determination of such a question to the exclusive
decision of the CRTC.
[14]However, since no individual factor in the pragmatic
and functional analysis is alone dispositive of the question
of standard of review (see Mattel, supra, at
paragraph 24), it is necessary to consider others that are
relevant. While findings of fact by the CRTC are subject to a
privative clause (subsection 52(1) of the
Telecommunications Act), there is a statutory right of
appeal, upon leave being granted, on questions of law or
jurisdiction (subsection 64(1) of the Telecommunications
Act). However, even where there is a statutory right of
appeal, deference will be shown where the legal question at
issue is one squarely within the expertise of the tribunal
(see Mattel, supra, at paragraph 27).
[15]I accept that the CRTC has expertise with respect to
telecommunications and broadcasting and that with respect to
technical matters within that expertise, the CRTC may be
better suited than the Court to interpret technical laws.
However, there is no indication that the expertise of the
CRTC is involved in the determination of the question at
issue in this case.
[16]It is not necessary to go further. Having regard to
the question of statutory interpretation under consideration,
the statutory right of appeal on a question of law with
leave, and the nature of the question which is not one that
involves the expertise of the CRTC, the appropriate standard
of review is one of correctness.
The Approach to Interpreting Subsection 43(5)
[17]The statutory interpretation question arises because
subsection 43(5) is not explicit as to whether the term
"transmission line" refers only to the lines of Canadian
carriers or distribution undertakings or, as the CRTC found,
includes the transmission lines of the appellants.
[18]To answer the question, the analysis must focus on the
words of subsection 43(5) read in their statutory context.
The objective of the analysis is to arrive at an
interpretation of the term "transmission line" that is
justified in terms of plausibility, efficacy and
acceptability (see Ruth Sullivan, ed., Driedger on the
Construction of Statutes, 3rd ed. (Toronto: Butterworths,
1994), at page 131).
The Literal Meaning of the Words
[19]There was considerable debate before the CRTC and in
this appeal as to the meaning of the term "transmission line"
in subsection 43(5). According to the appellants, power
utilities recognize a distinction between transmission lines,
which are high voltage lines carrying electricity over long
distances with minor losses, and distribution lines, which
carry electricity relatively inefficiently over short
distances. The support structures in issue in this case are
the poles supporting what the power utilities refer to as
"distribution lines", not "transmission lines". The
appellants argue, on that basis, that subsection 43(5) cannot
be read as applying to their distribution lines. The CRTC,
having regard to dictionary definitions, found that the
ordinary meaning of the term "transmission line" includes
transmission lines used to distribute electrical power.
[20]I agree that the term "transmission line", read
literally and in isolation, is capable of bearing either the
general meaning adopted by the CRTC or the technical meaning
propounded by the appellants. Generally, where words may bear
either a technical or a non-technical meaning, the Court will
presume that the non-technical meaning was intended unless
the context requires otherwise (Driedger,
supra, at page 17). For the reasons explained below,
my analysis of the statutory context leads me to conclude
that Parliament, in using the words "transmission lines" in
subsection 43(5), did not intend to refer to any lines that
carry electricity, including the lines that the power
utilities in this case would refer to as "distribution
lines".
The Term "Transmission Line" in the Context of
Subsection 43(5)
[21]Subsection 43(5) authorizes the CRTC to grant access,
on conditions that it determines, to the support structures
of transmission lines constructed on a highway or other
public place to a person who provides services to the public
and who cannot gain access to the support structures on terms
acceptable to that person. Neither the term "person who
provides services to the public" nor the term "transmission
line" is qualified. Read literally, subsection 43(5) might be
interpreted as conferring on the CRTC, the jurisdiction to
grant to all persons who provide services to the public,
access to support structures of all transmission lines,
whether they are part of an undertaking that falls under
federal jurisdiction or provincial jurisdiction. Such an
interpretation would imply that Parliament was purporting to
confer jurisdiction on the CRTC, not only outside
Parliament's legislative jurisdiction under the
Constitution Act, 1867 [30 & 31 Vict., c. 3 (U.K.)
(as am. by Canada Act, 1982, 1982, c. 11 (U.K.),
Schedule to the Constitution Act, 1982, Item 1)
[R.S.C., 1985, Appendix II, No. 5]] but also, well beyond the
mandate of the CRTC to regulate telecommunications and
broadcasting under the Canadian Radio-television and
Telecommunications Commission Act, R.S.C., 1985, c. C-22.
That obviously could not have been the intention of
Parliament.
[22]Recognizing this problem, the CRTC interpreted
subsection 43(5) so that it would apply only to circumstances
within federal and CRTC jurisdiction. At paragraph 92 of its
reasons, the CRTC found that subsection 43(5) "applies when
the applicant or, the respondent or both are federal
undertakings contemplated by either the Telecommunications
Act or the Broadcasting Act". The "federal
undertakings" being referred to are Canadian carriers (such
as telephone companies) and distribution undertakings (such
as cable television companies). Therefore, according to the
CRTC, subsection 43(5) applies when a telephone company or a
television cable company seeks access to poles erected by a
telephone company or cable company. It would also apply when
a telephone company or a cable company seeks access to poles
erected by a provincially regulated power utility, or when a
power utility seeks access to poles erected by a telephone
company or a cable company. It would not apply when a power
utility seeks access to poles erected by another power
utility, or in any other case where neither the applicant nor
the respondent is a telephone company or a cable company.
[23]With respect, I think the CRTC's construction presents
some difficulties. I do not say that words in a statute
cannot have different meanings depending upon the context in
which they are used. However, it seems unlikely that
Parliament intended that a term in a single subsection should
have different meanings depending upon different factual
circumstances.
[24]Because it is obvious that subsection 43(5) does not
confer on the CRTC the authority to grant access to any poles
supporting transmission lines whenever any person applies for
access, subsection 43(5) must be read down. The CRTC's
approach (at paragraph 92) was to read down either the term
"person who provides services to the public" or the term
"transmission line" in subsection 43(5), on a case-by-case
basis, depending upon which is necessary to ensure compliance
with its constitutional and jurisdictional limits.
[25]I accept that reading down legislation to comply with
jurisdictional limits is an acceptable interpretive strategy.
However, the CRTC has not read down the words consistently
for all purposes. Under the CRTC's approach, reading down the
scope of one of the terms is dependent on the scope
attributed to the other term. Thus, if a transmission line is
outside the CRTC's jurisdiction, the term "person who
provides services to the public" is read down to mean a
distribution undertaking or Canadian carrier. However, if the
transmission line in question is one of a distribution
undertaking or Canadian carrier, the term "person who
provides services to the public" is not necessarily read down
but may apply to any person without restriction. I find it
difficult to think that this flexible reading down, depending
upon the facts of individual cases, is what Parliament
intended in enacting subsection 43(5). The complexity of such
an interpretation leads me to conclude that had that been
Parliament's intention, it would have been expressed more
explicitly.
[26]There is another reason for this conclusion. The word
"person" is, by its nature, a term of wide application. It is
limited only in that the person contemplated in subsection
43(5) is one who provides services to the public. As the term
"person who provides services to the public" is used in
subsection 43(5), that person is not the person that is to be
the subject of the regulatory jurisdiction of the CRTC.
Rather, "person" must refer to the applicant for access and
not the person against whom the access order is made. In this
context, there is no reason to apply jurisdictional or
constitutional constraints to the term "person who provides
services to the public". I think it is reasonable to conclude
that the term "person who provides services to the public"
was intended by Parliament to be unrestricted. Therefore the
term "transmission line" must be a transmission line
constructed by undertakings subject to CRTC jurisdiction,
namely, Canadian carriers or distribution undertakings and
cannot include the transmission lines of the appellants.
Context of Section 43
[27]I think the conclusion I have reached construing the
term "transmission line" in the context of subsection 43(5)
is supported by the context of section 43 as a whole.
[28]The term "distribution undertaking" is used in section
43. It is not defined in the Telecommunications Act
itself, but subsection 43(1) provides that in sections 43 and
44, the term has the same meaning as in subsection 2(1) of
the Broadcasting Act. Distribution undertaking is
defined in subsection 2(1) of the Broadcasting Act as
follows:
2. (1) . . .
"distribution undertaking" means an undertaking for
the reception of broadcasting and the retransmission
thereof by radio waves or other means of
telecommunication to more than one permanent or
temporary residence or dwelling unit or to another such
undertaking; |
[29]Subject to subsections 43(3) and (4), subsection 43(2)
permits a Canadian carrier, or a distribution undertaking, to
enter and break up any highway or other public place for the
purpose of constructing, maintaining or operating its
transmission lines.
[30]Subsection 43(3) provides that no Canadian carrier or
distribution undertaking shall construct a transmission line
on, over, under or along a highway or other public place
without the consent of the municipality or other public
authority having jurisdiction over the highway or other
public place.
[31]In subsection 43(4), Parliament provides for those
circumstances in which the Canadian carrier or distribution
undertaking cannot, on terms acceptable to it, obtain the
consent of the municipality or other public authority to
construct its transmission line. In such a case, the Canadian
carrier or distribution undertaking may apply to the CRTC for
permission to construct the transmission line. Subsection
43(4) confers on the CRTC the authority to grant permission
to the Canadian carrier or distribution undertaking to
construct the transmission line on a highway or other public
place and to determine the conditions under which the
construction may take place. In subsections 43(2), (3) and
(4), the transmission lines at issue are clearly those to be
constructed, maintained or operated by a Canadian carrier or
distribution undertaking on a highway or other public
place.
[32]Subsection 43(5) is not concerned with granting
Canadian carriers or distribution undertakings permission to
construct transmission lines. Rather, it is concerned with
access by persons who provide services to the public to
support structures of transmission lines already constructed
on a highway or other public place. However, the word formula
"transmission line constructed on a highway or other public
place" in subsection 43(5) bears a remarkable similarity to
the words describing the transmission lines contemplated in
subsections 43(2), (3) and (4), which are transmission lines
of Canadian carriers or distribution undertakings. The
similarity in the description of the transmission lines
between subsections 43(2), (3) and (4) on the one hand, and
subsection 43(5) on the other, is a strong indicator that
Parliament had in mind the same transmission lines, that is,
the transmission lines of a Canadian carrier or distribution
undertaking in all subsections.
[33]Despite this strong indicator, the respondent makes a
number of arguments supporting the contrary conclusion, i.e.
that the term "transmission line" in subsection 43(5) cannot
mean only transmission lines of Canadian carriers and
distribution undertakings but must include all transmission
lines.
[34]First, the respondent says that, prior to the
enactment of subsection 43(5), the CRTC had exercised powers
under predecessors to sections 25 and 27 of the
Telecommunications Act to grant access to support
structures of telecommunication transmission lines. The
argument is that if the term "transmission line" in
subsection 43(5) only refers to those of Canadian carriers
and distribution undertakings, it is unnecessary, as access
to such transmission lines is already provided for and
Parliament should not be presumed to enact a redundancy.
[35]I cannot accept this argument, for two reasons. First,
subsection 43(5) authorizes the CRTC to grant access to the
support structures of distribution undertakings,
something the CRTC did not have jurisdiction to do without
subsection 43(5).
[36]Second, it makes the jurisdiction of the CRTC to grant
access to the support structures of Canadian carriers
explicit. This is significant because it is not at all
certain that the CRTC would have that jurisdiction without
subsection 43(5). Contrary to the respondent's argument, the
predecessors of sections 25 and 27 of the
Telecommunications Act did not confer on the CRTC the
authority to grant access to the support structures of
telephone lines. Sections 25 and 27 and their predecessors
are rate-setting provisions. The predecessors had been held
to confer jurisdiction on the CRTC to regulate the terms of
support structure agreements, but not access (see British
Columbia Telephone Co. v. Shaw Cable Systems (B.C.) Ltd.,
[1995] 2 S.C.R. 739, at paragraph 36). Access had been found
to be regulated under section 317 of the Railway Act,
R.S.C. 1970, c. R-2 and section 51 of the National
Transportation Act, R.S.C. 1970 c. N-17 (see
Transvision (Magog) Inc. v. Bell Canada, [1975] C.T.C.
463).
[37]Section 42 of the Telecommunications Act
appears to incorporate some aspects of section 317 of the
Railway Act and section 51 of the National
Transportation Act. However, section 42 is sufficiently
different that it is not certain that the interpretation of
section 317 of the Railway Act and section 51 of the
National Transportation Act would apply to section 42.
In other words, it is by no means clear that, in the absence
of subsection 43(5) of the Telecommunications Act, the
CRTC would have authority to grant access to the support
structures of transmission lines of Canadian carriers. For
these reasons I do not find the redundancy argument of the
respondent to be persuasive.
[38]Second, the respondent says that throughout the Act,
the term "transmission line" is expressly qualified as being
a transmission line of a Canadian carrier or distribution
undertaking. If the unqualified reference to "transmission
line" in subsection 43(5) is intended to mean only the
transmission line of a Canadian carrier or distribution
undertaking, then the reference to Canadian carrier and
distribution undertaking as qualifying the term "transmission
line" elsewhere in the Act is surplusage. Put another way,
the respondent says that by using different words in
subsection 43(5) from those used elsewhere dealing with
transmission lines, Parliament must have intended a different
thing.
[39]With respect, this argument overlooks the relationship
between subsection 43(5) and the balance of section 43. The
terms "transmission line" or "transmission lines" are found
in subsections 43(2), (3), (4) and (5). Where, in prior
subsections, transmission lines are those of Canadian
carriers or distribution undertakings, I would think it
implicit, unless the context requires a contrary
interpretation, that the transmission lines in a subsequent
subsection of the same section would be similarly qualified.
This is known as the presumption of consistency of
expression. As subsections 43(2), (3) and (4) each deal with
transmission lines constructed by Canadian carriers or
distribution undertakings on highways or other public places,
the reference in subsection 43(5) to a transmission line
constructed on a highway or other public place, is intended
to mean the same transmission line, that is, a transmission
line of a Canadian carrier or distribution undertaking.
[40]In dealing with the presumption of consistency of
expression, Cory J. in Thomson v. Canada (Deputy Minister
of Agriculture), [1992] 1 S.C.R. 385, stated at pages 400
and 401:
The word is used in other provisions of the Act. Unless
the contrary is clearly indicated by the context, a word
should be given the same interpretation or meaning whenever
it appears in an act . . . .
Parliament could not have intended the word
"recommendations" in the subsequent subsection of the same
section to receive a different interpretation. The word must
have the same meaning in both subsections.
In Driedger on the Construction of Statutes,
supra, at page 164, Ruth Sullivan summarizes the
approach of Cory J. in Thomson in the following
words:
The reasoning of Cory J. is exemplary. He first notes that
elsewhere in the legislation the word or expression to be
interpreted has a single clear meaning; he then invokes the
presumption of consistent expression to justify his
conclusion that this meaning must prevail throughout.
Finally, he points out that the presumption applies with
particular force where the provisions in which the repeated
words appear are close together or otherwise related. This
way of resolving ambiguity is often relied on in the
cases.
I adopt the approach of Cory J. in Thomson in my
analysis.
[41]Of course, consistency of expression is a presumption
and it may be rebutted by the context in which an expression
is used. That is not the case here. As I have already
explained, in the context of subsection 43(5), for the term
"transmission line" to apply to all lines, the term "person"
must be read down in circumstances in which the transmission
lines in question are not those of undertakings otherwise
subject to the regulatory jurisdiction of the CRTC;
alternatively when the person applying for access is not
otherwise subject to the regulatory jurisdiction of the CRTC,
the term "transmission line" must be read down to be a
transmission line of a Canadian carrier or distribution
undertaking. For the reasons I have given, I do not accept
this flexible interpretation of the term "transmission line"
in subsection 43(5) and would conclude that the presumption
of consistent expression has not been rebutted.
[42]Finally, on this point, the absence of express
reference to a Canadian carrier or distribution undertaking
in subsection 43(5) should not be seen as injecting a wholly
new meaning of the term "transmission line" in that
subsection. I agree with the submission of counsel for the
intervener Saskatchewan Power Corporation that if it had been
Parliament's intention that the CRTC be authorized to grant
access to all kinds of transmission lines, including those of
power utilities, it is more likely it would have framed a
free-standing section of the Act to that effect. It would not
have drafted a subsection as the final element of a section
which deals exclusively with transmission lines of Canadian
carriers and distribution undertakings.
[43]A third argument of the respondent was made orally at
the hearing of the appeal and derives from the reasons of the
CRTC. The argument is that interpreting subsection 43(5) to
include all transmission lines, and not just those of
Canadian carriers and distribution undertakings, complements
the CRTC's jurisdiction under subsection 43(4). Under
subsection 43(4), the CRTC decides whether to permit a
Canadian carrier or distribution undertaking to construct a
transmission line, having regard to the use and enjoyment of
the affected highway or other public place by others. In
making this assessment, it is argued that the CRTC should
have regard to whether, as an alternative to entering and
breaking up the highway or other public place, the Canadian
carrier or distribution undertaking may access the support
structures of other existing transmission lines, including
the transmission lines of power utilities. If that
alternative is preferable to the construction of a
transmission line by the Canadian carrier or distribution
undertaking, subsection 43(5) confers on the CRTC the power
to order access to the support structures of a transmission
line that is already in place, even if the transmission line
is one belonging to an electric utility.
[44]While this interpretation has some appeal, the scheme
of subsection 43(5) and its sequence after subsection 43(4),
makes it unlikely that this was Parliament's intention.
Subsection 43(5) requires an application by a person who
provides services to the public before the CRTC may grant an
access order. If access to support structures of existing
transmission lines was a consideration that could result in
the CRTC refusing permission for construction under
subsection 43(4), subsection 43(5) would not require an
access application to engage the CRTC's jurisdiction. In
other words, the legislation would provide that the CRTC, in
considering a construction application by a Canadian carrier
or distribution undertaking under subsection 43(4), could
either make an order permitting construction or, having
regard to the use and enjoyment of the highway or other
public place by others, order that the Canadian carrier or
distribution undertaking be given access to support
structures of existing transmission lines. That is not the
scheme of the legislation.
[45]I conclude that in the context of section 43 as a
whole, the term "transmission line" in subsection 43(5)
refers to a transmission line of a Canadian carrier or
distribution undertaking and not to all transmission
lines.
The Policies in Section 7 of the
Telecommunications Act and Subsection 3(1)
of the Broadcasting Act
[46]In interpreting subsection 43(5) as including all
transmission lines, the CRTC relied heavily on the
telecommunications policies in paragraphs 7(a),
(b), (c) and (f) of the
Telecommunications Act and the broadcasting policy in
subparagraph 3(1)(t)(ii) of the Broadcasting
Act. (See Telecom Decision CRTC 99-13, paragraphs
125-132.)
[47]Under paragraph 47(a) of the
Telecommunications Act, the CRTC is required to:
47. . . . perform its duties under this
Act and any special Act
(a) with a view to
implementing the Canadian telecommunications policy
objectives . . .; |
[48]Under subsection 5(1) of the Broadcasting
Act:
5. (1) Subject to this Act . . ., the
Commission shall regulate and supervise all aspects of the
Canadian broadcasting system with a view to implementing the
broadcasting policy set out in subsection 3(1)
. . . .
[49]The telecommunications policies to which the CRTC
referred in its reasons were:
7. It is hereby affirmed that telecommunications
performs an essential role in the maintenance of Canada's
identity and sovereignty and that the Canadian
telecommunications policy has as its objectives
(a) to facilitate
the orderly development throughout Canada of a
telecommunications system that serves to safeguard,
enrich and strengthen the social and economic fabric of
Canada and its regions; |
(b) to render
reliable and affordable telecommunications services of
high quality accessible to Canadians in both urban and
rural areas in all regions of Canada; |
(c) to enhance the
efficiency and competitiveness, at the national and
international levels, of Canadian
telecommunications; |
. . .
(f) to foster
increased reliance on market forces for the provision
of telecommunications services and to ensure that
regulation, where required, is efficient and
effective; |
The CRTC found that duplicate infrastructures were a cost
that had to be borne by subscribers and could act as a
barrier to entry and a disincentive to the development of
networks, contrary to the telecommunications policies in
paragraphs 7(a), (b), (c) and
(f). It therefore interpreted subsection 43(5) so as
to avoid the construction of duplicate infrastructures.
[50]The broadcasting policy objective to which the CRTC
referred was:
3. (1) It is hereby declared as the broadcasting
policy for Canada that
(t) distribution
undertakings, |
. . .
(ii)
should provide efficient delivery of programming at
affordable rates, using the most effective technologies
available at reasonable cost, |
The CRTC determined that the use of support structures of
existing transmission lines by distribution undertakings was
consistent with this policy.
[51]The CRTC also had regard for environmental and
aesthetic consequences linked to the construction of
avoidable duplicate infrastructures.
[52]The respondent adopted these arguments in its
submissions on appeal.
[53]It is not for the Court to approve or disapprove of
policy objectives expressed in legislation. They must be
accepted as being the objectives Parliament had in mind in
enacting the Telecommunications Act and
Broadcasting Act. However, the CRTC does not have
plenary power to implement these policies. The CRTC's power
is established under the Acts (and other relevant
legislation) and the policy objectives of those Acts may be
implemented by the CRTC only in accordance with the powers
and duties conferred on it under those Acts. The policies
themselves do not confer jurisdiction on the CRTC and they
cannot be used as a basis for exercising a power that the
CRTC has not been granted by the power conferring provisions
of the statutes.
[54]For the reasons I have given, I am of the opinion that
subsection 43(5) does not confer on the CRTC the power to
grant access to support structures of all transmission lines.
The policies of the Telecommunications Act and
Broadcasting Act must therefore be implemented by the
CRTC having regard to that constraint.
[55]I acknowledge that from the point of view of the
respondent and CRTC, efficiency and the avoidance of
duplication of infrastructures for Canadian carriers and
distribution undertakings might be more effectively achieved
if the CRTC had jurisdiction to make access orders to the
support structures of the transmission lines of the power
utilities and others. However these objectives may still be
attainable without such CRTC jurisdiction. As the evidence
before the CRTC has demonstrated, up to 1996, Canadian
carriers and distribution undertakings obtained access to
support structures of the transmission lines of the power
utilities by agreement. If the power utilities have capacity
on their support structures to accommodate the transmission
lines of Canadian carriers and distribution undertakings, and
if there are no technical reasons for not doing so, it would
seem logical for the utilities to grant such access at rates
acceptable to them and that the Canadian carriers and
distribution undertakings would find preferable to the
alternative of constructing their own support structures.
[56]In addition, the appellants point out that in a number
of provinces, the provincial public utility boards appear to
have jurisdiction to regulate access to the support
structures of transmission lines of the utilities they
regulate. See for example, Public Utilities Board Act,
R.S.A. 1980, c. P-37, s. 88; Utilities Commission Act,
R.S.B.C. 1996, c. 473, s. 27; Public Utilities Act,
R.S.N. 1990, c. P-47, s. 53. Indeed, by its decision 2000-86
dated December 27, 2000, in Transalta Utilities
Corporation, the Alberta Energy and Utilities Board fixed
a rate of $18.35 per pole per year for the use by
communications or cable companies who attach equipment to
Transalta poles. I would also note that in its decision, the
Board disagreed with the reasons and conclusion of CRTC
decision 99-13.
[57]The appellants represented that the Ontario Energy
Board has such authority under section 70 of the Ontario
Energy Board Act, 1998, being Schedule B of the Energy
Competition Act, 1998, S.O. 1998, c. 15 in connection
with its power to impose conditions on licenses granted to
owners or operators of electric transmission or distribution
systems.
[58]In any event, where agreement cannot be reached with
the utilities or the access and conditions established by
provincial utility boards are not consonant with Canadian
telecommunications policy or broadcasting policy, or there is
no applicable provincial regulatory jurisdiction with respect
to access, Canadian carriers or distribution undertakings may
resort to subsections 42(2) and (3) and, if necessary, to the
regulatory jurisdiction of the CRTC under subsection 43(4) of
the Telecommunications Act to enable them to construct
their own transmission lines.
Legislative History
[59]I turn, finally, to the legislative history of
subsection 43(5). The CRTC found that relevant legislative
history supported the view that it was appropriate to
construe subsection 43(5) broadly to include the transmission
lines of all utilities including those of the appellants. It
first referred to the Report of the Co-chairs of the Local
Networks Convergence Committee, entitled, Convergence:
Competition and Co-operation. Policy and Regulation Affecting
Local Telephone and Cable Networks (Ottawa: Minister of
Supply and Services Canada, 1992) appointed under the
authority of the Minister of Communications in 1991. The
Committee developed recommendations for changes to government
policy and regulation to govern the future evolution of the
local telecommunications markets infrastructure and the
increasing convergence of the services and markets of
telephone companies and cable operators.
[60]The report of the Committee referred to the historic
sharing of infrastructures. Its recommendations refer to
regulation, when necessary, to ensure such sharing.
Recommendations 7, 8 and 9 provide [at page 128]:
7. Canadian policy and
regulation should continue to promote the sharing of
support structures by telephone companies, cable
operators and other support structure providers. In
this regard, the concept of support structures should
be defined more broadly in the future, taking into
account new technologies such as fibre optic cables,
for which sharing arrangements can improve the
efficiency of the local network infrastructure. |
8. Government policy and
regulation should not prevent the development of joint
ventures between telephone companies and cable
operators that are aimed at achieving more effective
and efficient sharing of support structures. |
9. Telephone companies and
cable operators should, in conjunction with electrical
power utilities, and other providers of support
structures, establish better cooperative mechanisms to
plan the shared construction and use of support
structures. Where necessary, regulators should
intervene to ensure that such cooperative mechanisms
are developed and implemented and that they function
effectively. |
[61]I do not read these recommendations or anything in the
report of the Convergence Committee to which the respondent
referred, as indicating that such regulation should
necessarily be under the authority of the CRTC. On the
contrary, the report appears circumspect about the identity
of the regulators to which the Committee was referring. There
is no express reference to any particular regulator. Nor is
there any suggestion that Parliament should enact legislation
to confer regulatory power on the CRTC over infrastructures
of utilities not otherwise subject to CRTC jurisdiction when
Canadian carriers' or distribution undertakings' access is at
issue.
[62]By contrast, the Committee appears to have recognized
the necessity, if distribution undertakings could not
negotiate access to support structures of existing
transmission lines owned by others, that they be given the
same right of access to public rights-of-way to construct
their own transmission lines as Canadian carriers. Express
reference to recognizing the requirements of distribution
undertakings to such rights in federal legislation was made
by the Committee and cited by the CRTC at paragraph 115 of
its decision:
In order to prevent
unnecessary duplication of support structures, as well
as potential environmental disruption and aesthetic
problems, government policy and regulation should
continue to require cable operators to negotiate with
other potential suppliers of support structures to
obtain suitable facilities. However, where these
negotiations are unsuccessful, it would be reasonable
to grant cable operators similar rights to access to
public rights of way as telephone companies. At the
federal level, these rights, which are currently set
out in the Railway Act, are proposed to be simplified
and updated by means of clauses 48 and 49 of Bill
C-62. |
Incorporating distribution undertakings in section 43
would appear to be the legislative response to the
observations and recommendations of the Convergence
Committee.
[63]The CRTC also made reference to submissions before the
House of Commons Sub-Committee on Bill C-62 (leading to the
Telecommunications Act) of the Standing Committee on
Communications and Culture. Submissions by the cable
companies seem to have been focussed on granting them the
same rights as telephone companies to obtain an order of the
Commission granting them authority to construct their own
transmission lines on public highways and other public
places. The Sub-Committee also noted that the provinces had
raised concerns about a proliferation of undertakings trying
to "dig up highways". The Minister of Industry responded to
the Sub-Committee as follows at page 8:7 of Canada, House of
Commons, Sub-Committee on Bill C-62, Minutes of
Proceedings and Evidence of the Sub-Committee on Bill C-62 of
the Standing Committee on Communications and Culture, (11
May 1993):
If the subcommittee agrees, clauses 48 and 49 [now
sections 43 and 44 of the Act], will be amended so that they
apply equally to broadcasting distribution undertakings as
defined under the Broadcasting Act. In addition, we will
propose an amendment to clause 48 of the bill that will
provide for efficient use, by those serving the public, of
support structures constructed on public rights of way and
require the CRTC to take account of all uses of the
right-of-way or other public place prior to issuing any
orders under this clause.
The CRTC concluded at paragraphs 121 and 122 of its
decision 99-13:
Accordingly, the section was amended to include reference
to distribution undertakings in subsections 43(1) to (4), and
subsection 43(5) was added in its entirety. The amendments
were adopted on Third Reading without any further
discussion.
Based on the concerns expressed and the comments and
recommendations made prior to the addition of subsection
43(5), the Commission is of the view that the underlying
intent in adding that provision was to ensure that the
granting of construction rights to Canadian carriers and
distribution undertakings to build their own infrastructure
did not represent the only alternative available to these
undertakings where a more efficient use of existing support
structures could be made available.
The respondent adopted the CRTC's interpretation of
Parliament's reason for subsection 43(5), that construction
of their own transmission lines was not to be the only
alternative available to distribution undertakings and
Canadian carriers.
[64]I am unable to draw the same inference as have the
CRTC and the respondent from the Minister's statement. On the
point at issue here, I am of the respectful view that the
comments are ambiguous. It is not obvious to whom the
Minister was referring when he used the words "those serving
the public" or "support structures". I do not think the
Minister's statement assists in determining whether
subsection 43(5) was intended to confer jurisdiction on the
CRTC over access to support structures of transmission lines
of power utilities or others that are not undertakings
subject to the regulatory jurisdiction of the CRTC.
[65]Of relevance to the issue in this appeal, there seems
to be one glaring omission in the legislative history. It is
the absence of any submissions by the utilities not under the
jurisdiction of Parliament or the CRTC to the Parliamentary
Sub-Committee on the application of subsection 43(5). I find
it hard to believe that if it had been the Government's
intention that subsection 43(5) should confer jurisdiction on
the CRTC over access by Canadian carriers or distribution
undertakings to the support structures of the transmission
lines of utilities subject to provincial jurisdiction, that
such intent would not have been expressly made known and
submissions invited. I do not say that Parliament could not
enact such a provision; nor need I make any determination as
to whether such a provision would be within the
constitutional jurisdiction of Parliament. However, I would
not attribute to the federal government or to Parliament an
intention to confer such jurisdiction on a federal regulatory
tribunal through the guise of an ambiguous provision that was
enacted without express notice to the provinces or their
utilities of such an intention. There is nothing in the
legislative history before the Court that indicates it did
so.
[66]The legislative history supports the view that, in
response to submissions of the provinces regarding the
proliferation of undertakings to "dig up highways", and in
order to regulate access to support structures of
transmission lines as between Canadian carriers and
distribution undertakings, subsection 43(5) was enacted to
grant access to support structures of the transmission lines
of Canadian carriers and distribution undertakings by each
other and by other persons who provide services to the
public.
CONCLUSION
[67]The term "transmission line" in subsection 43(5) is
unqualified and in the abstract might apply to transmission
lines of the appellants. However, when read in the context of
subsection 43(5) and section 43 as a whole, and having regard
to the legislative history, I am satisfied that the term, as
used in subsection 43(5), refers to the transmission lines of
Canadian carriers and distribution undertakings only. I
conclude that the CRTC erred in interpreting subsection 43(5)
as conferring on it the jurisdiction to regulate access and
terms of access to support structures of transmission lines
owned by the appellants. I would allow this appeal with
costs, I would set aside Telecom Decision CRTC 99-13 and I
would dismiss the respondent Canadian Cable Television
Association's application before the CRTC.
Desjardins J.A.: I concur.
Sharlow J.A.: I concur.