The following statement was issued today by Lloyd Matthews, Minister of Works, Services and Transportation, regarding the St. Barbe - Blanc Sablon Ferry Service:

The Department of Works, Services and Transportation assumed responsibility for the St. Barbe - Blanc Sablon Ferry Service from the federal government effective April 1 as part of the recently announced Marine Service agreement. As part of that agreement, Northern Cruiser Limited was to operate the M/V Northern Princess in the St. Barbe - Blanc Sablon ferry service beginning on May 1 or as soon as ice conditions would permit.

On May 20, the department was advised by Northern Cruiser Limited that due to a mechanical problem, the Princess was not expected to start operation on the St. Barbe - Blanc Sablon Ferry Service until early June.

On May 23, the department issued a public advisory to this effect. It also advised that the company had dispatched the M/V Northern Cruiser from St. John's on May 22 to serve as a temporary replacement. The company said the Cruiser would provide extra crossings as deemed necessary to alleviate any traffic backlogs. The Cruiser, however, was limited to 12 passengers.

The department continued to monitor the situation on a daily, sometimes hourly basis.

On May 27, the department decided that the level of service provided by the Cruiser was not sufficient and ordered officials to dispatch the M/V Sound of Islay to St. Barbe to supplement the service. A public advisory was issued to this effect. The Sound of Islay can carry 49 passengers.

On May 28, then deputy minister John Abbott wrote the company and advised that the department was investigating cost recovery measures.

On June 10, the company ran into further difficulties with the Princess. It said the vessel departed Marystown on June 9 enroute to the Strait of Belle Isle but that the engine developed a heating problem in its number nine cylinder after being at sea for about five hours. The vessel went to Grand Bank for repairs. Repairs commenced on June 10 and engineers discovered a cracked liner and piston and some overheating on the crankshaft pin. The crankshaft pin has to be machined and a new bearing fitted. The vessel is now expected to be repaired by June 20. Engine room staff are also doing complete checks on other systems.

Northern Cruiser Ltd. has apologized to the general public and to the Department of Works, Services and Transportation for the inconvenience caused by their delays.

The department fully appreciates the public frustration that has been expressed concerning this matter. While the company's position is that this is a very unusual occurrence, the department believes that many of the company's problems could have been avoided had the vessel been put it for an earlier refit.

Because the department assumed this contract, the most it can do, at this point, is to direct its officials to do everything in their power to correct a totally unacceptable series of events. I have publicly given my assurance that there will not be a recurrence of these problems next year.

Departmental officials are currently holding discussions with a ferry operator outside the province to provide a single ferry which would more than adequately serve the area until the arrival of the Princess.

Contact: Rick Callahan, Director of Communications, (709) 729-4860.