May 19, 1998
(Works, Services and Transportation)

Lloyd Matthews, Minister of Works, Services and Transportation, today expressed the views of the Government of Newfoundland and Labrador on the recent announcement by federal Minister of Fisheries and Oceans David Anderson, that the Canada Coast Guard will collect $13.3 million annually in ice breaking fees.

"While I am generally disappointed that the commercial shipping industry serving the island of Newfoundland will be required to contribute to the new fee structure," said Matthews, "I appreciate the recognition of Mr. Anderson in not applying these fees to vessels serving Labrador and remote parts of the province."

Mr. Matthews noted that the details of the fee structure had been the subject of considerable consultation between the Commissioner of the Coast Guard and companies in Newfoundland and Labrador who are reliant on water transport. The use of a transit fee will also allow marine shippers to better budget ice breaking costs than would have been an hourly fee.

"Many of the points raised by the shippers appear to have been included in the manner in which the fees will be structured. For example, there will be a cap put in place for frequent users, which in turn, will limit the additional cost for goods brought into the province by this carrier."

Mr. Matthews noted that vessels operated by and for the Government of Newfoundland and Labrador will be exempt under the Terms of Union as negotiated in 1949 between the Province and Canada.

"Other aspects of the marine service fees which were addressed in the recent federal statement are elements which Newfoundland and Labrador sought from the federal minister, the Commissioner and their staff to ensure the least possible negative impact on our province."

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

1998 05 19 5:30 p.m.