March 24, 1998
(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:

Labrador Marine Service

I am pleased to announce today that my department has identified a successful bidder to provide marine services to Labrador. Burry's Marine Division Limited submitted the lowest bid, along with a sound business plan, in a competitive bidding process carried out in accordance with the Public Tender Act.

The contract is for a two year period with an option to extend a third year. Burry's Marine Division Limited will manage and operate the vessels, The Sir Robert Bond and The Northern Ranger as well as the terminal in Lewisporte, where the new operator will be headquartered, and the terminal in Happy Valley-Goose Bay. The contractor will also be responsible for having a representative in each of the wharf ports along the Labrador Coast.

We anticipate a significant cost savings by contracting the service to a private operator. The service will cost approximately $4 million less than has traditionally been the costs of operating the service in previous years. These savings will enable government to continue our efforts to complete the Trans Labrador Highway.

Not only will the marine service be more cost efficient, but there will also be significant improvements in service delivery. Among them, are:

- No rate increases for the first time in five years.

- The minimum shipment rate will be broken down into two categories, such that shipments less than 50 kg will cost $20 while shipments over 50 kg will remain at $35.

- The jockey charge for vehicles using the Sir Robert Bond will be reduced by $10.

- For the first time, residents of Labrador will be able to make reservations on the Northern Ranger by calling a 1-800 number.

- A 50 per cent discount for community councils moving heavy equipment for use exclusively by the councils.

- Consistency in shipping schedules whereby a freighter will be departing Lewisporte at least every 10 days.

The service will begin on schedule with The Sir Robert Bond making her first run from Lewisporte on June 9, ice permitting. The Northern Ranger will depart from St. Anthony on July 1, calling all ports to Nain, again ice permitting.

I am very pleased to make this announcement today. Our next step will be to join with our new operator in visiting all ports of call to hear the views and concerns of Labradorians and to ensure the schedule sufficiently meets the needs of area residents.