Minister comments on performance contract and loan guarantee for Marystown Shipyard

Minister of Development and Rural Renewal, Judy Foote, today expressed her pleasure regarding government's decision to provide a performance contract and loan guarantee to support the Marystown Shipyard.

"I am delighted that the employees of the Marystown Shipyard, the board of directors and government have been able to work together to achieve our common goal of keeping the shipyard operational," said the minister. "Government's financial commitment on behalf of the shipyard demonstrates the priority which government has given economic development in this province. The Marystown Shipyard is a major employer in rural Newfoundland and it is in the interests of all concerned for the yard to be able to continue to bid for and win contracts."

Premier Brian Tobin announced today the providing of a performance guarantee to the federal government in support of the contract for the CFAV "QUEST." Without this performance guarantee from the province, the yard would not have been able to proceed with the contract. Government also agreed to increase the loan guarantee support for Marystown Shipyard's operating line of credit to provide the yard with the necessary working capital to proceed with this contract.

This announcement would not have been possible without the full cooperation of the unionized employees, staff and management at Marystown Shipyard Limited who have agreed to make major productivity improvements and overhead reductions at the yard. The resulting increase in productivity and competitive wage rates will substantially benefit the company in its efforts to secure contracts and will work towards transforming the yard into a commercially viable, profitable operation.

"I commend the entire workforce of the shipyard for recognizing the measures that needed to be taken to ensure the long-term viability of the facility," said Ms. Foote. "In so doing they have ensured as well, the continued operation of spinoff industries associated with the yard.

"The agreement we have achieved with the unionized employees, staff and management of the Marystown Shipyard shows the interest and commitment the people of Newfoundland have in keeping rural Newfoundland alive," continued the minister. "It gives me great faith in our province to witness the hard work and dedication demonstrated by the employees of the shipyard. I look forward to continuing to see this renewed sense of optimism throughout all of Newfoundland and Labrador as government continues to strive toward economic prosperity for our province."

Contact: Susan Laite, Director of Public Relations, (709) 729-4570.