DECISION 2015 NSUARB 230 M06840 and M06841 NOVA SCOTIA UTILITY AND REVIEW BOARD IN THE MATTER OF THE MOTOR CARRIER ACT. - and -

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1 DECISION 2015 NSUARB 230 M06840 and M06841 NOVA SCOTIA UTILITY AND REVIEW BOARD IN THE MATTER OF THE MOTOR CARRIER ACT - and - IN THE MATTER OF THE MOTOR VEHICLE TRANSPORT ACT and IN THE MATTER OF THE APPLICATIONS of SUNSHINE ATLANTIC HOLDINGS LTD. to amend Motor Carrier License No. P03017 and Extra-Provincial Operating License No. XP03018 BEFORE: Dawna J. Ring, Q.C., Member APPLICANT: SUNSHINE ATLANTIC HOLDINGS LTD. YanXU HEARING DATE: May 8, 2015 ORDERS ISSUED: May 8, 2015 REASONS ISSUED: October 6, 2015 DECISION: Applications granted.

2 -2- I SUMMARY [1] Sunshine Atlantic Holdings Ltd. ( Sunshine ) of Halifax, Nova Scotia, made Applications to the Board to amend its Motor Carrier License No. P03017 and Extra Provincial Operating License No. XP03018 ( Licenses ) to add one additional 15 passenger vehicle using its existing charter rates. [2] The Applications were made pursuant to the Motor Carrier Act, R.S.N.S. 1989, c. 292, as amended ( MC Act') and Motor Vehicle Transport Act, R.S. 1985, c. 29 (3rd Supp.) ( MVTAct). The Applications advanced unopposed. [3] After considering the matters of s. 13 of the MC Act, the Board granted the Applications with written reasons to follow. These are those reasons. II ISSUES [4] The issue is: 1. After taking into consideration the provisions of the MC Act, should the Board exercise its discretion and grant the proposed amendments? III LAW [5] Pursuant to the MC Act, and the Board s delegated authority under the MVT Act, the Board regulates motor carriers to ensure there is a quality, safe, sustainable motor carrier Industry operating throughout the Province of Nova Scotia. [6] Under the legislation, a person must have a license issued by the Board to transport people on the highways of Nova Scotia (s.7(1)(a)). The Board may grant an application, in whole or in part (s.14), attach terms or conditions (s.16), set rates, fares,

3 -3- or charges, or minimum and/or maximum charges (s.27(1)(c)) and specify routes or geographical areas for the services (s.27(1 )(a)). If a carrier is granted a license, it is only permitted to operate in accordance with all of the terms and specifications of its license (s.7(1)(b) and (2), and s.22). [7] In determining any amendment or license application, the Board may consider any issue relevant or material, including the following matters outlined in s.13: Factors Considered 13 Upon an application for a license for the operation of a public passenger vehicle or for approval of the sale, assignment, lease or transfer of such a license, the Board may take into consideration (a) any objection to the application made by any person already providing transport facilities whether by highway, water, air or rail, on the routes or between the places which the applicant intends to serve, on the ground that suitable facilities are, or, if the license were issued, would be in excess of requirements, or on the ground that any of the conditions of any other license held by the applicant have not been complied with; (b) the general effect on other transport service, and any public interest that may be affected by the issue of the license or the granting of the approval; (c) the quality and permanence of the service to be offered by the applicant and the fitness, willingness and ability of the applicant to provide proper service; (ca) the impact the issue of the license or the granting of the approval would have on regular route public passenger service; (d) any other matter that, in the opinion of the Board, is relevant or material to the application. [8] Sunshine, has the burden to prove the Board should grant the Applications. IV EVIDENCE [9] Sunshine has been operating in Nova Scotia since June 2014 with a focus of providing charter services to people traveling from Asia and, in particular, China. It has grown its business from one 12 passenger Mercedes-Benz vehicle to adding two 15 passenger vehicles.

4 -4- [10] In these Applications, Sunshine stated the reasons for making the amendments were as follows: The tour business increasing fast in 2015, more Chinese travellers planning to visit Atlantic Canada in this summer. We got some transportation contract from the SMU&DAL Chinese Student Union. We have new tour package "Cape Breton & Newfoundland", Need the Extra Provincial Operating License [Exhibit S-2, p. 1] [11] There is a reference to contract services for the Chinese Student Union at both Dalhousie and St. Mary s University. Contract service is a separate type of service from the charter service Sunshine is licensed to operate. To seek contract service a different type of application would be required. [12] The Applications were received by the Motor Carrier Division of the Department of Transportation and Infrastructure Renewal ( MCD ) on April 13, On April 23, 2015, the MCD sought clarification of the Applications. In its response on the same day, Sunshine stated as follows:... There is no contract with DAL or SMU. All the prices provided to DAL or SMU in the future are the same with previous published rates. And service will meet the restrictions on our licenses. [13] The Applications were received by the Clerk of the Board on April 27, The Notice of Amendment Applications was published in the Royal Gazette on April 29, 2015, posted on the Board s website, and forwarded to licensed carriers by , fax or letter. No objections to the granting of the Amendment Applications were received by the Board by the stated date of May 6, The Board considered the Amendment Applications and filed information by way of a paper hearing on May 8, 2015.

5 -5- V FINDINGS [14] The Decision, 2014 NSUARB 179, outlined the Board s reasons for granting Sunshine its initial licenses which was to assist it in the development of a niche tourism business in Nova Scotia by attracting people from Asia, in particular China, for which they had knowledge and experience as a full service travel agency. The development of this market was and is important to the people of Nova Scotia, considering one of the goals stated in The Report of the Nova Scotia Commission on Building Our New Economy, February 2014 ( Ivany Report ) to assist in improving Nova Scotia s economy is a doubling of the Province s tourism revenue by China, having the largest population in the world, the most number of tourists traveling the globe, and spending the most tourism dollars, was and is an important market to bring to the Province of Nova Scotia. As Sunshine agreed to restrict their Licenses to this primary target market, the opposition to the granting of their Licenses was withdrawn. [15] The further extension and expansion of the Licenses to include this fourth vehicle remains important for the development of this niche market, important to increasing tourism in Nova Scotia, and consequently important to the public s interest in this Industry in Nova Scotia. [16] Upon the clarification that the references to contracts in the Applications was not a reference to contract services at lower rates, which would have required different applications, the Board granted the Amendment Applications and the Orders were issued on May 8, 2015.

6 -6- VI CONCLUSION [17] The Amendment Applications were not for contract services as initially referenced in Sunshine s reasons for requesting the changes. Rather the Applications were solely to add a fourth vehicle to support Sunshine s growing market of providing full travel agency services, including transportation, to travellers mainly from Asia, and in particular, China. This market is important to increasing tourism in Nova Scotia and, consequently, important to the public s interest in this Industry. Accordingly, the Board granted the Applications by Orders dated May 8, 2015, and these are the reasons for the Orders. DATED at Halifax, Nova Scotia, this 6th day of October, Dawna J. Ring Document;