September 29, 1997
(Works, Services and Transportation)
 

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

Ferry subsidy requirement down by over $25 million

Marine Atlantic ferry services last year cost the taxpayers of Canada $25.3 million less than in 1995. The Crown corporation's 1996 annual report shows a total operating and capital subsidy requirement of $71.7 million, down from $97 million in the previous year.

The information comes from the company's 1996 annual report that was tabled in Parliament on Friday.

The $71 million subsidy requirement was for operation of the major ferry routes in Atlantic Canada, including North Sydney - Port aux Basques, North Sydney - Argentia, Lewisporte - Goose Bay, Borden - Cape Tormentine, Saint John - Digby, Yarmouth - Bar Harbor, and for operations on the coast of Labrador.

The company's traffic levels were the highest in its history and the subsidy requirement the lowest. Its 11 ships carried nearly 2.8 million passengers, 964,000 passenger vehicles and 292,000 commercial units.

The reduced subsidies resulted from very effective efforts both to increase revenues and to decrease costs.

Rod Morrison, president and CEO, noted that while operationally and financially it was the most successful year in the company's history, he is particularly proud of the dedication, talent and skill demonstrated by its employees. An example of the results of their efforts was an international achievement by the company's two largest ships. MV Caribou and MV Joseph and Clara Smallwood were awarded International Safety Management (ISM) certificates by Lloyd's Registry of Shipping, certifying that they meet the highest standards for both safety and environmental management.

Improvements were also made in customer service, for example, by introducing 1-800 service and a deposit system for reservations and by adding sleeping accommodations to the Smallwood.

Preparations were made in 1996 for changes that would come in 1997 as a result of construction of the Confederation Bridge and sale of the company's operations on the Bay of Fundy. Extensive plans were also made in anticipation of a very exciting year in 1997 because of the Cabot 500 Celebrations in Newfoundland and Labrador.

Contact: Ted Bartlett, Director Public Relations, (506) 851-3611.

1997 09 29 4:20 p.m.

SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement