NLIS 4
January 13, 2005
(Transportation and Works)

 


Government participates in Marine Atlantic�s Advisory Committee Roundtable

Tom Rideout, Minister of Transportation and Works, today participated in Marine Atlantic�s Advisory Committee Roundtable. Minister Rideout reiterated government�s position and made several recommendations with regard to the gulf ferry service. 

The minister spoke about the constitutional obligation that the federal government has toward this service, the need to have legislation in place to ensure there are no interruptions in the service and the importance of the service to the people of our province. 

Minister Rideout said, "The Government of Newfoundland and Labrador has sent a strong and consistent message to the federal government that the federal government has an enduring constitutional obligation to provide service on the gulf, in accordance with the Terms of Union. The federal government must fulfill its constitutional obligation to provide the gulf ferry service, either directly or by ensuring a service provider, such as Marine Atlantic Incorporated, has the mandate and resources to do so. 

"The gulf ferry service is Newfoundland and Labrador�s highway to mainland Canada and the rest of North America. It delivers goods to our stores, exports to our markets, tourists to our hotels and loved ones to our homes." 

"The gulf ferry service is a significant economic enabler that directly impacts the economy and the lives of the people of Newfoundland and Labrador," said Minister Rideout. 

The minister also spoke about the importance of the gulf ferry service to the tourism industry, as well as the issue of rates for the gulf ferry service. 

Government recognizes the significant potential of the tourism industry in Newfoundland and Labrador as an area of strategic economic growth. The province�s research demonstrates that cost and accessibility are major factors which influence a traveler�s decision to visit a destination and how often they visit. Auto travelers make up about 40 per cent of our non-resident visitors. An accessible, affordable ferry system is an important factor in the continued growth of Newfoundland and Labrador�s tourism industry. 

Minister Rideout said, "Our government was very pleased to hear that the federal government decided to freeze Marine Atlantic�s rates from January 1, 2005 - December 31, 2006, following my November request, and that of others, to the federal Minister of Transport, Jean-C. Lapierre, to freeze rates. This rate freeze was the responsible and appropriate action for the federal government to take, in light of the ongoing review. 

"Rates should be at an acceptable level and not escalated in an attempt to have the consumer meet costs that are the responsibility of the federal government. The federal government must ensure the continuation of a service that is accessible, affordable and meets the needs of Newfoundland and Labrador. 

"The subsidy provided by the federal government to Marine Atlantic for the gulf ferry service is far lower than the subsidy our government provides to our own intra-provincial ferry system. 

"Our government announced in the 2004-05 provincial budget that we were increasing our ferry rates by 25 per cent over a four-year period. However, even with this increase, my department will continue to be subsidizing ferry rates by some 88 per cent, in recognition of the essential transportation links these ferries provide to our citizens." 

"Federal funding support for the gulf ferry service has been more or less frozen since 1998, while Marine Atlantic�s annual costs have continued to climb. This is an unsustainable policy, which must be changed. The current subsidy support, which we understand to be 41 per cent, must be increased to sustain our lifeline to the rest of Canada," said Minister Rideout. 

The minister also expressed a willingness to work with the federal government on long-term solutions for the gulf ferry service. 

"Given the importance of this service to our province, our people and our economy, we need to work together with the federal government on a long-term strategy to sustain the gulf ferry service for future generations," said the minister. "This includes the creation of legislation to ensure there are no interruptions to the gulf ferry service. 

"Now is the time for a collaborative, comprehensive study that would lay the groundwork for building the optimal ferry service of the future, based on a better understanding of the right mix of factors, components and timing needed to support and guide sustained economic growth." 

Minister Rideout said, "The advisory committee should take into full account the recommendations made in the 1999 report, entitled On Deck and Below, which was forwarded to the Government of Canada for review and response. 

"I also asked Minister Lapierre to meet with me after the gathering of data by the advisory committee is complete and before any action is taken toward implementation. This collaborative approach may facilitate a mutually satisfactory outcome and resolution to the outstanding issues that face the gulf ferry service, with the view to achieving a sustainable long-term strategy for future generations." 

A copy of the minister�s presentation to the advisory committee is available here.

Media contact: Lori Lee Oates, ABC, Communications, (709) 729-3015, 690-8403 

2005 01 13                            12:25 p.m.


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