Minister welcomes Marine Atlantic rate freeze

Tourism, Culture and Recreation Minister Paul Shelley today welcomed the decision by Transport Canada to place a two-year freeze on Marine Atlantic ferry rates. The freeze will be in effect from January 1, 2005 to December 31, 2006.

"The Minister of Transportation and Works, Tom Rideout, and I have lobbied the federal government over the last year to implement a freeze on Marine Atlantic ferry rates," said Minister Shelley. "Our government has sent a strong and consistent message to the federal government that it has a constitutional obligation to Newfoundland and Labrador to provide this ferry service. Clearly, a constitutionally required service cannot be offered at rates which are economically prohibitive to its users."

The province�s 1999 report on the Gulf ferry service, On Deck and Below, recommended that "ferry rates be frozen for five years until such time as the service has been rebuilt and is operating in a modern and efficient manner." However, ferry rates have continued to increase. With the most recent increase in January, ferry rates have increased by as much as 31 per cent since 2000.

"The Gulf ferry service, operated by Marine Atlantic on behalf of the Government of Canada, is an essential part of our transportation system, as declared by the Canada Industrial Relations Board," said Minister Shelley. "The province�s research clearly shows that cost and accessibility are major factors which influence a traveller�s decision to visit a destination and how often they visit. Auto travellers make up about 40 per cent of our non-resident visitors. Without an accessible, affordable ferry system, some of these travellers will be unwilling to travel to Newfoundland and Labrador."

Minister Shelley added: "Statistics up to the end of October indicate that passengers and passenger-related vehicle traffic on Marine Atlantic was down by eight per cent and nine per cent respectively, compared to traffic levels in 2003. While a number of variables contribute to this decline, increased rates are also a factor. I welcome the decision by Transport Canada to freeze rates. We trust this is the first step towards the long-term stabilization of rates for the ferry service."

Media Contact: Tansy Mundon, Communications, (709) 729-0928 or (709) 685-1741.

2004 12 22                             4:45 p.m.