Minister says government will meet its commitments regarding vessel replacement

Tom Rideout, Minister of Transportation and Works, today said that government will meet is commitments regarding vessel replacement. Minister Rideout said, �Our government made a commitment upon coming to office that vessel replacement would be a priority, and that continues to be the case.�

Government�s Blueprint commitment regarding ferries states that; Our vessel replacement policy will be guided by the net economic benefits to the province rather than net acquisition costs. Using this principle, we will be able to replace some or all of the provincial ferry fleet with new vessels built in the province.

Minister Rideout said, �In order to develop the most strategic approach to vessel replacement, government has subsequently begun planning a vessel replacement strategy. The selection of a consultant was the first phase in addressing the problems with the provincial ferry fleet and assessing the best approach to vessel replacement is our main priority.�

BMT Fleet Technologies Limited has been selected as part of an Expressions of Interest (EOI) process. They have an office in St. John�s. Part of the team hired to work on this strategy works in that particular office. This particular marine consultant has experience with B.C. ferries, the Coast Guard and in the Newfoundland offshore. Minister Rideout said, �We were very impressed with the quality of their submission and they demonstrated an excellent understanding of the scope of the work.�

�Our government is working diligently to ensure that taxpayers� dollars are spent as strategically as possible,� said the minister. �This government�s commitment stated that some or all of the ferry fleet would be replaced with vessels built in Newfoundland and Labrador. This has in no way been ruled out. However, we do need to ensure that we proceed without violating any trade or procurement agreements. The consultant�s report will help us do that.

�It is obvious that the MHA for Bay of Islands District has no understanding of the importance of being both strategic and responsible in the spending of taxpayers dollars.�

The minister stated that the previous administration had every opportunity to act upon the problems outlined in the 2000 Auditor General�s Report where the provincial ferries are concerned.

�The previous administration was in government for two years after the report was released,� said Minister Rideout. �They had every opportunity to begin to implement a vessel replacement program. Our government has been in power for less than two years and we have acted to have issues with our ferry fleet addressed in a strategic and responsible manner. The Bay of Islands MHA should explain why the previous administration was so irresponsible with the provincial ferry fleet.

�The only attempt the previous administration put forth to improve the provincial ferry operation was the purchase of the MV Nonia, a vessel that is obviously too large to dock at a number of marine facilities throughout the province and is highly expensive to operate. Rather than spend $930,000 on a vessel that eventually ended up costing over $10 million, it might have been more cost-effective over the long term to purchase or build a newer vessel. We will ensure that a similar mistake is not repeated.�

Minister Rideout said that transportation infrastructure in the province deteriorated significantly under the previous administration.

�The previous administration spent years ignoring the needs of the province�s roads and ferry infrastructure,� said the minister. �Unfortunately, the issues resulting from years of neglect, combined with poor management of public monies, cannot be addressed overnight.

�The MHA for Bay of Islands District obviously doesn�t understand this government�s commitments as far as the provincial ferry fleet is concerned. Our government is pleased with the progress we�ve made and we are not even halfway through our mandate.�

Media contact: Lori Lee Oates, ABC, Communications, (709) 729-3015, 685-3415

2005 09 26                         4:10 p.m.