October 16, 1997
(Works, Services and Transportation)

The following is a list of current issues discussed by Lloyd Matthews, Minister of Works, Services, and Transportation at a news conference held this morning at Confederation Building:

- Acceleration of Cash Flows for Transportation Agreements: Newfoundland Transportation Initiative and Atlantic Region Freight Assistance Program

The department intends to make every effort to seek agreement from federal Transport Minister David Collenette to accelerate the cash flow for the agreements which fund highway construction. Federal funding is allocated annually in the Transport Canada budget and can be changed.

- Relocation of Marine Atlantic Headquarters and Transfer of Administrative Functions

The department intends to seek a commitment from federal Transport Minister David Collenette to move Marine Atlantic headquarters to Newfoundland and to move management personnel for the Gulf Service from North Sydney to Port aux Basques.

- Purchase of MV Prince Edward

See separate release which follows.

- Repairs To St. Barbe Ferry Terminal

The contractor (Old Mokami) has completed the crib work. Old Mokami is currently awaiting the arrival of geotextile which must be placed on the ramp area prior to placement of granular material. Delivery of the geotextile is expected by October 17.

Application of granular material will begin immediately upon receipt and application of the geotextile. The new temporary ramp access will then be ready for use.

The contract to rebuild the wharf will be announced within the next few days.

- Avalon Region Report

In May, Works, Services and Transportation and the Newfoundland Association of Public Employees (NAPE) set a new direction with respect to provision of highway maintenance and snow clearing operations on the Avalon Peninsula. Both agreed to a proposal in which government agreed to cease any further work on privatizing its highways operations in favour of an alternate pilot project.

As a result, an employer/bargaining unit committee was struck to work together to identify substantive savings.

That committee has now completed its analysis and submitted its final report yesterday, October 15. The department will review the report over the next week and will then be in a position to respond to questions.

This initiative, the first of its kind used to review government operations, is recognized as a success by both the department and the bargaining unit. Both parties view this as a progressive step toward improving employer-employee relations.

- Operational Requirements for the Labrador Coastal Marine Service

On August 15, the SGE Group was awarded a contract to study the operational requirements for the Labrador coastal marine service.

In addition, it was announced that Doane Raymond would conduct an organizational and management study of the Marine Services Division of the department to determine the structure which can best deliver a safe, efficient and affordable marine service for the entire province.

In April 1997, the Government of Newfoundland and Labrador concluded an agreement with the federal government in which the province accepted responsibility for operation of the marine services to coastal Labrador.

Both reports are expected next week. Following review by the department, the minister will submit a paper to Cabinet for

consideration by his colleagues.

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Province Purchases M/V Prince Edward

The Department of Works, Services and Transportation has purchased the M/V Prince Edward from the federal government and is currently reviewing options for use of the vessel.

The M/V Prince Edward was operated by Northumberland Ferries Limited in the Cape Tormentine, New Brunswick, to Borden, Prince Edward Island, Ferry Service until completion of the fixed link in June 1997. With completion of the fixed link, the vessel was no longer required and was offered for sale by the federal government. The province purchased the vessel for $300,000.

The M/V Prince Edward is currently docked at Pictou, Nova Scotia and arrangements are being made to transport the vessel to St. John's in the next few weeks.

The M/V Prince Edward, built in 1972, is 75 metres in length and can carry approximately 55 automobiles. The twin engine vessel has 3200 horsepower but is not ice-classed.

Specifications for refit of the vessel will be finalized by the end of the month. The retrofit is expected to cost between $1 million and $2 million.

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