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.
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