The following was issued today by Tom Rideout, Minister of Transportation and Works. It was also read in the House of Assembly:

Labrador Coastal Marine Service

I rise today to advise honourable members of government�s decision on the Labrador Coastal Marine Service.

My Cabinet colleagues and I have carefully reviewed the report on Labrador Marine Transportation presented by Memorial University�s Public Policy Research Centre (PPRC) and have chosen to adopt a modified version of the second of its eight service configuration options. The PPRC study concluded that the freight service from Lewisporte should be continued.

The Labrador Coastal Marine Service configuration beginning in 2004 will be as follows:

• The Sir Robert Bond will provide freight and passenger service on a weekly basis; its route will be Lewisporte, Cartwright, Happy Valley � Goose Bay, Cartwright, Happy Valley � Goose Bay, Cartwright, Lewisporte, until September 10, after which time, its configuration and routing will change to accommodate increased freight traffic demand anticipated out of Lewisporte.
• The Northern Ranger will provide freight and passenger service between Cartwright, Happy Valley-Goose Bay and points north, including Black Tickle.
• The Trans Gulf will provide freight service between Cartwright and points north, including Black Tickle.
• The Challenge One will service south coast ports (that is, Norman Bay and Williams Harbour from Charlottetown and Port Hope Simpson).

This decision will bring much-needed stability and certainty to the coastal marine service. Cartwright will see the same level of activity as last year and more than in previous years, established supplier relationships will be maintained (which was a concern expressed by Central and Western Labrador businesses) and the residents and businesses of the isolated north coast will be reliably and well served. Our objective is to put an end to the upheaval and confusion that afflicted it in 2003, and make good, long-term, evidence-based decisions.

Government has closely examined the evidence provided in the Public Policy Research Centre report, which looks at eight service options in terms of cost to the provincial treasury, cost to Labrador�s isolated coastal communities and the potential broader economic effects associated with each. We chose the option that achieves the best balance of economic considerations and consistent, reliable service to the people who depend on it.

The gross cost of this service configuration is estimated at $21.6 million; the net cost to government after revenue will be $16.4 million � approximately $600,000 more than last year. Government considers that a good investment, in order to achieve the greatest benefit for the greatest numbers of Newfoundlanders and Labradorians � especially those who most depend on the Labrador Coastal Marine Service.

Government does not agree with everything in this report, particularly where it goes beyond the scope of work requested. However, today we are releasing it, as promised. It has played a very important part in our decision-making, particularly the stakeholder input outlined in Chapter Two.

We have been mindful that behind the math and the macroeconomic models, are the people of Labrador�s isolated coastal communities � and the service exists for them.

News Release - Minister announces Labrador Coastal Marine Service configuration

2004 04 12                                         2:05 p.m.