NLIS 2
June 3, 2004
(Transportation and Works)

 

Minister of Transportation and Works clarifies funding of Labrador marine service

Tom Rideout, Minister of Transportation and Works, today clarified a number of issues in relation to the funding of the Labrador marine service.

Minister Rideout stated: "All port and terminal management for the Labrador marine service is funded through the Labrador Transportation Fund. It has been this way for many years. The service is paid for through this fund because it exists for the people of Labrador who use it to move passengers and goods into and out of Labrador and along the coast, to and from isolated communities."

The Department of Transportation and Works will spend approximately $1.8 million in 2004 to fund port and terminal management for the Labrador marine service on both the Labrador and island side of the service. This includes facilities at Cartwright, Happy Valley-Goose Bay, Rigolet, Makovik, Postville, Sango Bay, Hopedale, Nain, Black Tickle and Lewisporte.

"In January 2003, the government of the day chose to remove Lewisporte from the Labrador marine service configuration, making Cartwright the southernmost freight terminal. Less than six months later, it was clear that the new configuration was not working, as serious concerns were being expressed by the people on the North Coast about the cost of trucking freight into Cartwright. The freight service had to be re-established mid-way through the season with the placement of the MV Trans Gulf at Lewisporte," said the minister.

This was taken one step further this year with the return of the MV Sir Robert Bond to Lewisporte once a week. The Bond was returned to Lewisporte only after reviewing a report completed by an independent consultant which had engaged in extensive consultation with Labrador Marine Service stakeholders.

In a separate initiative, announced on September 19, 2003, a grant of $150,000 was provided to the Town of Lewisporte and the Lewisporte and Area Chamber of Commerce. Its purpose was to fund routine maintenance and upkeep, as well as carry out minor renovations at the Lewisporte ferry terminal. As a general transportation improvement project, this was funded not through the Labrador Transportation Fund but through the ferry terminal maintenance portion of the 2003-04 budget of the Department of Works, Services and Transportation.

Minister Rideout stated: "Forty-thousand dollars of this money was spent last year for its intended purpose of further developing the province�s marine services. A further $4,300 will be spent this year on renovations currently taking place at the Department of Transportation and Works building opposite the ferry terminal building in Lewisporte".

This building will be used as a ticket office and passenger waiting area for the marine operation. It will also house the office of the Manager of Marine Operations for Central Newfoundland.

"A news release issued by the previous government on September 19, 2003, clearly stated that the purpose of the funding was for �further repairs to provincial marine facilities in the area,�and �ensure that Lewisporte remains the Gateway to the North�,"said Minister Rideout . "The grant was never intended as compensation, as has been suggested by the member for Cartwright � L�Anse Au Clair � it was provided after the northern freight service out of Lewisporte had been restored. Therefore, it would be irrational and unjust to take back this money from Lewisporte and transfer it to the businesses of the South Coast of Labrador."

Minister Rideout reaffirmed government�s commitment to providing high-quality transportation infrastructure to the people of Labrador. "The needs and aspirations of Labradorians are very present in our minds as we develop a comprehensive infrastructure strategy for this province. In the context of the plan, this government will make the most strategic possible use of the Labrador Transportation Fund to help Labradorians meet their social needs and achieve their economic potential".

Media contact: Lori Lee Oates, Communications, (709) 729-3015

2004 06 03                                       10:00 a.m.


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