2024 Special Examination—Pacific Pilotage AuthorityPilotage Authority’s ineffective administration of waivers process for smaller ships raised navigation safety risk in the Pacific region

Ottawa, 23 September 2024—The Pacific Pilotage Authority made public the report of a special examination completed by the Office of the Auditor General of Canada. The corporation provides a marine pilot service that certain ships are required to use when navigating the coastal waters of British Columbia, including the Fraser River.

The audit found a significant deficiency with the pilotage waiver process. Pilotage waivers are issued to smaller ships operating on the coast that allow them to navigate without a corporation’s pilot on board. The corporation granted waivers to some of these ships with people who did not have the required navigation experience in the Pacific region. Instead, the corporation considered other navigation experience and requested that companies provide specific risk mitigation measures, such as training. The audit also found that the corporation did not perform ongoing monitoring to ensure that ships that had previously received waivers continued to comply with the related conditions, such as having the required persons onboard and in charge when navigating through compulsory pilotage areas. This monitoring would have reduced the navigation safety risk in the Pacific region. The audit also found other gaps in the corporation’s management of pilotage services, including weaknesses with respect to monitoring pilot training and conducting performance assessments of launch crews.

In examining corporate management practices, the audit found that the corporation was well managed overall, with improvements needed in systems and practices related to the Boards’ independence and oversight, and to risk mitigation. The audit examined how the Pacific Pilotage Authority implemented its corporate management practices and managed its pilotage services between 1 October 2022 and 30 September 2023.

A special examination is an audit of a federal Crown corporation conducted by the Auditor General of Canada. Under the Financial Administration Act, most federal Crown corporations are subject to a special examination by the Auditor General at least once every 10 years. These audits examine the systems and practices of a Crown corporation that are key to providing it with reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively. Special examination reports are therefore a source of important information that parliamentarians can use to hold Crown corporations to account.

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The Report of the Auditor General of Canada to the Board of Directors of the Pacific Pilotage Authority is available on the Office of the Auditor General of Canada website.

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