Transportation and
Works
Tourism,
Culture and Recreation
Business
June 12, 2008
Province Expresses
Disappointment Over Latest Marine Atlantic Cost Increase
The Provincial
Government today responded to the latest announcement of yet another
major increase in the fuel surcharge being imposed by Transport Canada
on the Marine Atlantic ferry service � an essential link between the
island portion of this province and the rest of Canada.
The Honourable
Dianne Whalen, Minister of Transportation and Works, said the ongoing
increased costs expected to be absorbed by Marine Atlantic passengers
are simply intolerable.
�This latest fuel
surcharge is outrageous and is an affront to the expectations the people
of this province have of the Trans Gulf ferry service as laid out in the
Terms of Union,� said Minister Whalen. �We have continuously brought to
the attention of the Federal Government our concerns about the ferry
service, and in particular over the past year on the cost of the fuel
surcharges being levelled against Newfoundlanders and Labradorians who
use this vital link with the rest of Canada. Yet, we continue to see
little action by the Federal Government to address our concerns. Of
significant concern is the fact we have witnessed no action on the part
of our federal MPs who should be intervening on behalf of the people of
this province. We can�t help but ask � how can they allow this to
happen?�
The new fuel
surcharge for Marine Atlantic will be set at 27.7 per cent as of July 1,
2008, and is applied to the base rates. Currently, the surcharge is set
at 9.9 per cent. In February 2007, Marine Atlantic rates for
passengers, passenger vehicles and commercial vehicles increased by
approximately two per cent, based on the Consumer Price Index. On April
1, 2007, Marine Atlantic also announced it was imposing a two per cent
fuel charge on passengers and vehicles, effective July 1, 2007. This
rate has increased every quarter since October 2007.
Minister Whalen said
the continual and significant cost increases are an unreasonable burden
to Newfoundlanders and Labradorians.
�The people of
Newfoundland and Labrador are reliant on this service that connects us
to the rest of the country but the Federal Government seems intent on
pricing travel by sea, to and from our province, out of reach for just
about all of us,� said Minister Whalen. �The Government of Newfoundland
and Labrador faces the same fuel price pressure on our intra-provincial
ferry service as Marine Atlantic but has chosen not to impose
surcharges, but has in fact substantially reduced rates in the past two
years.�
As a result of this
latest surcharge, Marine Atlantic rates for the Port aux Basques service
(one way) will rise by $7.56 for adult passengers and by $21.46 for
vehicles compared to rates for July 2007. Rates on the Argentia service
(one way) will increase by $21.20 for adult passengers and by $44.07 for
vehicles, compared to July 2007. Buses will have to pay an additional
$56.49 on the Port aux Basques service (one way) and $115.56 on the
Argentia service (one way), compared to July 2007.
Minister Whalen said
the ongoing increased costs also hamper the province�s efforts to
partake in the concept of an Atlantic Gateway.
�Unfortunately, the Marine Atlantic connection between Newfoundland and
Labrador and Nova Scotia is weakened by the rising cost to travel on
these ferries,� said Minister Whalen. �If the Atlantic Gateway is to be
advanced, the connection between mainland Canada and our province needs
to be strengthened. Not only does it play a key role in delivery of
products to the market, it also plays a central role in accommodating
the transportation of people. The Marine Atlantic service needs to be
cost-efficient in order to make our province an attractive place to do
business and competitive with the other Atlantic provinces who don�t
rely on ferry travel.�
Minister Whalen also questioned the methodology Marine Atlantic is using
to calculate these fuel surcharges.
The Honourable Clyde
Jackman, Minister of Tourism, Culture and Recreation, said this latest
increase underscores the need for the federally-operated Marine Atlantic
ferry service to be considered an extension to the transportation
networks which link all of our provinces and territories, from coast to
coast.
�Our tourism
industry relies, in large part, on our ability to attract visitors from
our key markets in Atlantic Canada, Ontario, and the eastern United
States,� Minister Jackman said. �While we are encouraged by early
indicators which show more visitors are arriving by air in 2008, the
Marine Atlantic ferry service remains a crucial means by which more than
25 per cent of tourists arrive in this province. It is high time the
Federal Government provide the resources necessary to operate this
essential service and stop downloading exorbitant increases onto the
travelling public.�
The Honourable Paul
Oram, Minister of Business, said the timing of the announcement is
particularly troubling.
"There has never
been a more opportune time to do business in Newfoundland and Labrador;
however, rising transportation costs to and from the island are a
deterrent and prevent us from reaching our full potential,� said
Minister Oram. �As a province, we continue to enhance and promote our
business and investment environment and take advantage of our growing
economic opportunities, but decisions to increase fuel surcharges for
this federally-run service are certainly not helping any.�
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Media contacts:
David Salter
Director of Communications
Department of Transportation and Works
709-729-3015, 691-3577
davidsalter@gov.nl.ca |
Heather May
Director of Communications
Department of Tourism, Culture and Recreation
709-729-0928, 697-5061
heathermay@gov.nl.ca |
Mark King
Director of Communications
Department of Business
709-729-7628, 699-3454
markking@gov.nl.ca |
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2008 06
12 5:10 p.m.
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