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Tourism, Culture and Recreation
Transportation and Works
November 19, 2009

Federal Auditor General�s Report Confirms
Province�s Position on Marine Atlantic Fleet Renewal

The pressing need to address issues with Marine Atlantic�s aging ferry fleet and shore-based assets, to implement improved maintenance practices, and to review the company�s governance structure are among the key recommendations in the Auditor General of Canada�s Special Examination Report of Marine Atlantic Inc.

The Honourable Clyde Jackman, Minister of Tourism, Culture and Recreation, said the report, which was released today, confirms what the Provincial Government has been telling the Federal Government for some time, most recently during September meetings of federal, provincial and territorial (FPT) ministers responsible for tourism, and during a meeting with Rob Merrifield, the Federal Minister of State (Transport), last month.

�We have taken every opportunity to impress upon federal authorities � through phone calls, letters and during meetings � the critical need to adequately fund Marine Atlantic and implement a fleet renewal strategy that will ensure a safe, affordable, reliable Gulf ferry service which will serve the needs of visitors, residents and commercial traffic,� said Minister Jackman. �We have been encouraged by the response from Marine Atlantic officials to our concerns about service issues and, more recently, by indications that the Federal Government is taking this issue seriously. The Auditor General�s recommendations are important, in that they represent an independent assessment of the situation and reinforce this province�s contention that Marine Atlantic and the Federal Government must work together to resolve any related funding issues.�

Minister Jackman noted the province�s growing tourism industry is particularly reliant on a high-quality Gulf ferry service, as approximately 25 per cent of non-residents arrive in the province via Marine Atlantic.

�Newfoundland and Labrador has made enormous headway in marketing this province as a tourist destination,� said Minister Jackman. �People want to come here � and that is evidenced in the increase in tourism traffic over the past several years. But the experience they have with the Marine Atlantic ferry service is critical to ensuring this growth can continue, and that we can maximize the economic potential of the tourism industry in the years to come.�

The Honourable Tom Marshall, Acting Minister of Transportation and Works, said the Auditor General�s report reiterated the province�s assertion that Marine Atlantic is a vital transportation link to Newfoundland and Labrador and that the Government of Canada is obligated to providing a Gulf ferry service under the Terms of Union governing Newfoundland and Labrador�s confederation with Canada.

�A high-quality Gulf ferry service is critical not only to Newfoundland and Labrador, but to the entire country as well,� said Minister Marshall. �It is an economic enabler and, as the Auditor General�s report notes, Marine Atlantic�s commercial customers transport about 50 per cent of goods entering Newfoundland and Labrador, including 90 per cent of perishable goods. It is our link to Canada and North America, and a reliable ferry service to this province is essential to ensuring the success of provincial and national economic interests.�

Both Ministers Jackman and Marshall said they expect the Federal Government will heed the recommendations made in the Auditor General�s report and provide the necessary financial resources to improve the Marine Atlantic service.

The Office of the Auditor General of Canada�s report can be viewed at: Marine Atlantic Inc. - Special Examination Report.

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Media contacts:

Heather May
Director of Communications
Department of Tourism, Culture and Recreation
709-729-0928, 697-5061
heathermay@gov.nl.ca
Roger Scaplen
Director of Communications
Department of Transportation and Works
709-729-3015, 697-5267
rogerscaplen@gov.nl.ca


2009 11 19                     2:45 p.m.
 


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