Final consultant�s report received on
impacts of planned reconfiguration of Labrador Coastal Marine Service

Industry, Trade and Rural Development Minister Kelvin Parsons released today the final report from an independent consultant on the impact of government�s planned reconfiguration of the Labrador coastal marine service on residents of the north coast of Labrador, the Town of Lewisporte and surrounding area, and the province in general.

"The province committed to carry out a study on the impacts of the planned reconfiguration. The terms of reference for the study and a preliminary report received approximately two weeks ago were shared with key stakeholders, reflecting this government�s commitment to openness and transparency. The final report has been received and is being released to the public. I thank all the stakeholders for their time, effort and input into this important process," said Minister Parsons.

The key conclusions as stated in the impact assessment study undertaken by the consultant are as follows:

(a) on balance, the planned changes favour the opportunities over the risks in both the short and longer terms, and

(b) the impacts are disproportionate in their effects - Cartwright and the south coast of Labrador, along with the provincial treasury, are the primary beneficiaries; the north coast of Labrador and Lewisporte area, along with the island business community, could incur the risks but these will be limited in their impact.

These are not new findings but the realization of the impacts becomes more acute with the coastal service changes going into effect next shipping season.

"The results of this independent impact study are consistent with government�s earlier conclusions which were factored into its decision in March 2002 to reconfigure the Labrador coastal marine service. My colleague, Percy Barrett, Minister of Works, Services and Transportation, now has the benefit of this independent analysis to assist him in making final plans for the reconfigured service that will commence next year," said Minister Parsons.

On March 22, 2002, the province announced that with the completion of the Trans Labrador Highway from Red Bay to Cartwright in the fall of 2002, and to reflect government�s policy of providing marine services only to communities that are not connected by road, the Labrador coastal marine service would be reconfigured beginning in the 2003 season by moving the transhipment point from Lewisporte to Cartwright. In July 2002 the province committed to undertake an independent study in order to further review the impact on residents of the north coast of Labrador, the Town of Lewisporte and surrounding area, and the province as a whole, with respect to this planned reconfiguration. The province engaged The Institute for the Advancement of Public Policy, an independent consulting firm, to carry out the study.

Consultant�s report

Media contact:

Industry, Trade and Rural Development, Clifford Grinling, (709)729-7066
Works, Services and Transportation, Lynn Evans, (709) 729-3015

2002 11 08                                        4:25 p.m.