NLIS 2
September 19, 2005
(Transportation and Works)
 

Minister announces that ferry rates will be made consistent for the transport of fuel

Tom Rideout, Minister of Transportation and Works, announced today that he has given direction in his department for any anomalies in ferry rates for the transportation of fuel to be corrected immediately.

Minister Rideout said: �In the future, ferry rates for the transport of fuel will be similar throughout the island and Labrador portions of the province. This issue was very recently brought to the attention of my department and I directed my officials to act upon it immediately.�

The current freight rate structure for Labrador Marine ferries has been in place for more than 30 years, dating back to Marine Atlantic�s running of the service. For this reason, the Labrador and island rate structures have been developed completely independent of each other. �Under this government and my direction, those inequities will be addressed,� said the minister.

The only change in ferry rates that has taken place under the current government has been an across-the-board increase that was announced as part of Budget 2004. Any inequities in the rate structure would have existed under the previous administration.

Minister Rideout went on to point out that there was ample opportunity for the previous administration to address these inequities in the ferry rate structure and they did not do so. �The MHA who is now demanding a probe of freight and passenger rates was previously a Parliamentary Secretary to the Minister of Works, Services and Transportation. The same rate structure was in place during that time and it is surprising that she did not address the matter herself when she was clearly in the position to do so.�

Government is in the process of reviewing ferry rate structures. �Government has commissioned a study on freight rates for Labrador. While any inequities in the cost of transporting fuel will be dealt with immediately, government will implement a fair and reasonable ferry rate structure over the long term,� said the minister. �I look forward to implementing a ferry rate structure throughout the province that is based on solid information and research.�

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

2005 09 19                                   1:30 p.m.


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