Ministers lobby against proposed Marine Atlantic fee hike

Tourism, Culture and Recreation Minister Paul Shelley and Works, Services and Transportation Minister Tom Rideout today expressed their concern over proposed increases in the rates charged in the Gulf ferry service operated by Marine Atlantic. Minister Shelley has written federal Industry Minister Lucienne Robillard, in her capacity as federal minister responsible for tourism, in an effort to put an end to these continuing increases which threaten the province�s tourism industry.

"Despite the fact that the province�s 1999 report on the Gulf ferry service, On Deck and Below, recommended that ferry rates be frozen for five years until the service has been rebuilt and is operating in a modern and efficient manner, this has not been done," said Minister Shelley. "Instead, ferry service rates have continued to increase even though the service has not improved."

Works, Services and Transportation Minister Tom Rideout shares his colleague�s concern. "I�ve written federal Transport Minister Tony Valeri on this issue," said Minister Rideout. "The Gulf ferry service is Newfoundland and Labrador�s highway to the rest of Canada. Approximately 55 per cent of goods transported to the island portion of the province are shipped via Marine Atlantic and are consequently subject to these rate increases. The proposed hike will place an additional financial burden on local businesses which, in an effort to remain viable, will be forced to pass increased costs on to consumers. This will have a significant impact on the people and the economy of our province."

Should the proposed rates be implemented, costs could increase as much as 30 per cent. For the tourism industry, for example, in 2000, the rate for a car and two passengers traveling from North Sydney to Port aux Basques was $102. The rate for the same car and two passengers in 2004 will be $130.50, an increase of 28 per cent. If the same two passengers chose to cross with their car on the Argentia service in 2000, the cost would have been $234. In 2004 the trip will cost $308, an increase of 31.6 per cent.

Research conducted by the Government of Newfoundland and Labrador concludes that cost and accessibility are major factors which influence a traveler�s decision to visit a destination and how often they visit. Over one-third of respondents surveyed in the 1997 Newfoundland Auto Exit Survey indicated that the overall cost of the Gulf ferry service needs improvement. Overall cost was rated as the greatest weakness in the service and cost was the most important factor cited by visitors.

"The Gulf ferry service is an essential part of our transportation system, as recently declared by the Canada Industrial Relations Board," said Minister Shelley. "Without an accessible, affordable ferry system, auto travellers who represent an estimated 40 per cent of our 439,400 non-resident visitors would be unable and unwilling to travel to Newfoundland and Labrador."

"This service is a vital economic and transportation link," said Minister Rideout. "I am urging Transport Canada to examine its financial commitment to Marine Atlantic in order to prevent continuous increases."

Minister Shelley and Minister Rideout have requested a timely response on this issue.

Media contact:
          Tansy Mundon, TCR (709) 729-0928
          Deanne Hayward, WST (709) 729-3015

2004 01 02                                       3:05 p.m.