BILL NO. 70

1st Session, 58th General Assembly
Nova Scotia
49 Elizabeth II, 2000

Government Bill

Sydney Steel Corporation Sale Act

The Honourable Gordon D. Balser
Minister responsible for the Sydney Steel Corporation Act

First Reading: October 31, 2000

Second Reading: November 7, 2000

Third Reading: November 30, 2000 (WITH COMMITTEE AMENDMENTS)

Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Sydney Steel Corporation Sale Act.

2 In this Act,

(a) "Agreement" means the Agreement dated June 21, 2000, between the Company, Her Majesty in right of the Province, the Purchaser and Duferco Participations Holding Limited in respect of the sale of certain assets of the Company;

(b) "Company" mean Sydney Steel Corporation;

(c) "Designated Date" means such date as is designated by the Governor in Council;

(d) "Effective Date" means such date as is designated by the Governor in Council;

(e) "Fund" means the Sydney Steel Corporation Superannuation Fund;

(f) "Minister" means the Minister of Finance;

(g) "Plans" means the Pension Plan for Salaried Employees of Sydney Steel Corporation, the Sydney Steel Corporation Non-Contributory Union Pension Plan 1968 (For Members of Locals 1064, 6537 and 6516 of the United Steelworkers of America and Local 2 of the Bricklayers and Allied Craftworkers), and the Sydney Steel Corporation Non-Contributory Union Pension Plan 1974 for Members of Local 1675 of the Canadian Union of Public Employees, as they were in force on the date of Closing, as that term is defined in the Agreement;

(h) "Purchaser" means Duferco Steel (Nova Scotia) Corporation.

3 (1) Where there is a conflict between this Act and any other Act, this Act prevails.

(2) Where there is a conflict between the Agreement and any other Act, the Agreement prevails.

4 The Governor in Council may continue the Company under the Companies Act as the Sydney Steel Corporation or such other name as the Governor in Council determines.

5 The Assessment Act does not apply to any machinery or equipment owned by the Company immediately before the date of Closing, as that term is defined in the Agreement.

6 (1) Any action against the Company, pursuant to a statute or otherwise, with respect to any act or omission occurring prior to the Designated Date, and any action, pursuant to any statute or otherwise, against the Purchaser by any person other than the Company or Her Majesty in right of the Province with respect to any act or omission occurring prior to the Designated Date and relating to the operations of the Company or to the assets the Purchaser has acquired from the Company, shall be commenced within and not after one year following the Designated Date.

(2) Section 3 of the Limitation of Actions Act does not apply to the actions referred to in subsection (1).

7 (1) There is hereby established a fund under the supervision of the Minister to be known as the Sydney Steel Corporation Superannuation Fund.

(2) The expenses related to the administration of this Section are payable from the Fund.

(3) This Section shall be administered by the Minister.

(4) The Minister is authorized to enter into an agreement or agreements providing for the transfer to the Fund from the Plans of all liabilities of the Plans accrued to and including the Effective Date and of all of the assets of or maintained with respect to the Plans on the Effective Date, any consents necessary to such transfers of assets and liabilities are and are deemed to be given and, upon such transfer having been effected, the assets and liabilities transferred are assets and liabilities of the Fund and are no longer assets and liabilities of the Plans.

(5) Any notices or consents required for the transfers referred to in subsection (4), including, for greater certainty, the consent of the Superintendent of Pensions pursuant to the Pension Benefits Act, and any default or breach of covenant that occurs by reason of such transfer, are waived.

(6) The Fund shall provide to the persons entitled under the Plans, with respect to the period to and including the Effective Date, the same benefits to which such persons would have been eligible under the Plans.

(7) The Minister may invest the moneys in the Fund in the manner authorized for investment of pension funds under the Provincial Finance Act, but may retain investments transferred pursuant to subsection (4) if such investments were, when acquired by the Plan in respect of which they were held, permitted investments under the Pension Benefits Act.

(8) The Minister may sell any stocks, bonds, debentures or other securities of the Fund and the proceeds of any sale shall be dealt with in the same manner as if such moneys had not been invested.

(9) Where at any time the Fund is insufficient to make all payments by this Section required to be made, the Minister shall pay into the Fund an amount out of the Consolidated Fund of the Province sufficient to enable such payment to be made.

(10) The Pension Benefits Act does not apply to the Fund.

(11) The fiscal year of the Fund is the same as the fiscal year of the Province.

(12) The Minister shall, on or before April 30th in each year, make to the Governor in Council an annual report of all proceedings with respect to the Fund during the preceding fiscal year of the Fund and a statement showing the condition of the Fund.

8 (1) The Governor in Council may make regulations

(a) designating the dates referred to in clauses 2(c) and (d);

(b) prescribing rules for any matter to be determined or carried out by the Minister;

(c) providing for the operation of, and the resolution of any questions which may arise with respect to, the Fund;

(d) defining any word or expression used but not defined in this Act;

(e) deemed necessary or advisable to carry out effectively the intent and purpose of this Act.

(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.

9 Section 23 of Chapter 456 of the Revised Statutes, 1989, the Sydney Steel Corporation Act, is amended by striking out "shall have all the powers of a Company incorporated pursuant to the Companies Act" in the second and third lines and substituting "has the capacity, rights, powers and privileges of a natural person".

10 Chapter 456 is repealed.

11 (1) Sections 6, 7 and 10 come into force on such day as the Governor in Council orders and declares by proclamation.

(2) No proclamation shall be issued pursuant to subsection (1) respecting Section 10 before the Company is continued pursuant to Section 4.