April 3, 1997
(Works, Services and Transportation)

Minister comments on marine services agreement

The federal and provincial governments announced an agreement in Labrador this morning that hands responsibility for marine services in that region over to the province. Works, Services and Transportation Minister Julie Bettney, however, advises that services to Labrador will not change this year, and public consultation will come before any changes are made.

In exchange for assuming responsibility for marine services, the province received a $340 million cash settlement, and two ships valued at $25 million. A portion of that cash will be used to start construction on the Trans Labrador Highway. As the highway progresses, the need for marine services will lessen.

There will be no changes made to schedules or fees for the 1997 shipping season, and the province will contract the service to Marine Atlantic for that period. In the next few months, government will be making decisions about the future of the service. "We will be travelling to affected communities to talk with stakeholders about what kinds of services are required, and how to best provide them," said the minister. "No decisions will be made until we talk with the people involved."

There is approximately $17 million in a federal fund to take care of severance and benefits for the Marine Atlantic employees who may be impacted by changes to the service.

"These employees will be given the same consideration as other Marine Atlantic employees who have required severance in similar situations," said Ms. Bettney.

The minister will be meeting with the town council in Lewisporte on Friday morning to discuss marine services, and will be in Port aux Basques to do the same on Tuesday.

Contact: Barbara Harris, Communications, (709) 729-3678.