May 6, 1996
(Works, Services and Transportation)

The following is being distributed at the request of Marine Atlantic:

Marine Atlantic - Reports record traffic, declining subsidy

Marine Atlantic ships carried a record 2.7 million passengers and 1.2 million vehicles in 1995, while its operating subsidy of $89.6 million was the lowest since the company became a federal Crown corporation in 1985.

The corporation's 1995 annual report, tabled Friday in the House of Commons, reports that the operating subsidy used was $7.2 million less than the $96.8 million the federal government had approved.

The company underwent a number of changes during the year, all of which had an impact on its bottom line. Among them were the transfer of the Newfoundland south coast service to the provincial government; the closure of the Halifax corporate office; and the move to better match vessel utilization and demand.

The change to a seasonal service between Yarmouth, Nova Scotia and Bar Harbor, Maine, as well as voluntary separation incentives offered to shore-based management and non-union employees, will both generate savings which will be felt in years to come.

Company president and CEO Rod Morrison says he feels Marine Atlantic is well positioned for the future. "We have an excellent fleet; we have technology on board our vessels that is second to none; and we have competent and dedicated people who take pride in offering the best ferry and hospitality services available."

Marine Atlantic is a federal Crown corporation with a mission to provide quality, safe and efficient marine transportation and hospitality services. The company provides ferry and marine freight services throughout Atlantic Canada and into the State of Maine.

Contact: Doug Burgess, Public Relations Officer, (709) 772-5731.

1996 05 06 3:35 p.m.