December 9, 1997
(Works, Services and Transportation)

The following statement was issued today by Lloyd Matthews, Minister of Works, Services and Transportation. It was also read in the House of Assembly:

I wish to follow-up on a December 4 question from the Leader of the Opposition on government's future provision of passenger and freight service to coastal Labrador.

As Honourable Members are aware, responsibility for this operation was transferred to the province through a comprehensive federal-provincial agreement last spring. Given the timing of the transaction, Marine Atlantic continued to operate the service under contract to the province for the past season.

On December 15, title to Marine Atlantic's coastal assets will be transferred to the Government of Newfoundland and Labrador. This significant array of infrastructure includes the car ferry Sir Robert Bond, the coastal passenger freighter Northern Ranger, and all freight handling components and office equipment at the company's facilities in Lewisporte and Goose Bay.

We are at a pivotal point in our province's transportation history. In addition to the infrastructure noted above, the comprehensive $340 million transfer agreement signed with the Government of Canada last spring puts us in good stead to provide a quality marine service to coastal Labrador residents, while also achieving a greatly enhanced Labrador road network.

Already we are seeing the positive results of our Labrador initiatives and this $340 million fund, as evidenced by my announcement last week of a further $28 million in tenders for Labrador

road construction and upgrading. As mentioned at that time, this will bring our 1998-99 Labrador road expenditures to $36 million.

However, government's road initiatives in Labrador will not be carried out at the expense of coastal Labrador residents, and their marine requirements.

This past summer, the consultants SGE Group carried out extensive consultations with coastal Labrador stakeholders on our behalf, seeking their input into our service plans for 1998 and beyond.

Government will continue to provide a quality level of service to coastal residents as our road projects evolve, and Labrador's road network grows. There will be no trade-off of Labrador transportation services, but a balanced endeavour achieving road progress while ensuring coastal freight and passenger needs are met.

An in-depth business plan for the 1998 season has been developed by my department, and will be presented very shortly to my Cabinet colleagues for their consideration.

A great deal of effort and prudent assessment has gone into our 1998 business plan, and it is our intention that it be finalized before the end of the calendar year.

At that time, details will be provided to all Honourable Members, the public, and in particular, the key stakeholders in the new provincial coastal Labrador service.