Minister clarifies provincial vessel replacement strategy

Tom Rideout, Minister of Transportation and Works, today clarified the nature and intent of a vessel replacement strategy that is currently being developed by the Government of Newfoundland and Labrador.

In Budget 2005, $500,000 was allocated to begin planning work toward fulfilling government�s commitment to address the aging provincial ferry fleet.

�The vessel replacement strategy will provide advice for the most effective means by which the vessels that currently constitute our provincial ferry fleet can be replaced,� said Minister Rideout. �It is by no means just a study.

�Our government recognizes the problems with our ferry fleet that were created by the previous administration. We feel these problems need to be addressed, and they will be addressed as soon as it is reasonably possible to do so.

�The $500,000 will be used to hire a consultant to provide advice on how to best accomplish our goals of developing an effective ferry fleet while spending taxpayer�s dollars in a responsible manner. It is prudent to gather the necessary information on how to most effectively use our resources before we commit to such large investments.�

The minister said the poor decisions made by the previous administration are the reason for the current state of the ferry system in the province, in relation to the vessel fleet.

�The MV Nonia, purchased by the previous administration, ended up costing the taxpayers of this province an additional $10 million, over and above the $930,000 purchase price, and it couldn�t be put into service until six years later due to the amount of work it required.

�Furthermore, the Nonia is expensive to operate. It might have been more cost-effective over the long-term to purchase or build a newer vessel.�

Minister Rideout said the mismanagement of the province�s ferry fleet by our predecessors warrants proper research into how to best proceed with revitalizing our aged ferry fleet in a strategic manner, that represents the best use of our limited resources.

�We need to take precautionary measures before we begin purchasing or building new vessels,� said the minister. �With a consultant, our department will be able to avoid issues such as those experienced with the Nonia. It is obvious that the approach used in obtaining this vessel involved very little planning and thought.�

�Our experience with the MV Nonia shows that by investing money strategically up front, we may be able to avoid spending a lot of money later and get better vessels for the long-term,� the minister continued.

�We can�t be penny-wise and pound-foolish when making such a large investment of taxpayer dollars.�

Minister Rideout says the Department of Transportation and Works is also taking action to revitalize the existing ferry fleet.

�Our government has allocated $2.97 million for refits to the MV Sir Robert Bond and MV Northern Ranger, and an additional $4 million for annual and mid-life vessel refits for ferries that serve the island,� said the minister. �The MV Inch Arran is currently undergoing a regular refit.

�In addition, our department has recently retired the MV Greenbay Transport, so we are indeed taking action toward addressing the issues that face our current fleet.�

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

2005 07 19                        3:55 p.m.