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.
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