No. H097/05
For release - May 6, 2005
OTTAWA — Transport Minister Jean-C. Lapierre, along with the Honourable R. John Efford, Minister of Natural Resources and Regional Minister for Newfoundland and Labrador, today announced the release of the report of the advisory committee examining the future of Marine Atlantic Inc.
"I commend the committee for their excellent work in preparing this detailed report and thank the provinces and all involved stakeholders for their active contribution," said Mr. Lapierre. "The Government of Canada remains committed to stabilizing Marine Atlantic and ensuring that the important transportation services it provides remain safe, reliable, efficient and affordable."
"A modern and efficient Marine Atlantic is vital to the people of Newfoundland and Labrador," said Minister Efford. "Residents, tourists and businesses will be encouraged by continued support for cost-effective and reliable transportation."
The report includes 41 recommendations with the goal of improving ferry service. The main recommendations propose:
recognizing the essential nature of Marine Atlantic's services;
renewing Marine Atlantic's governance structure;
investing in Marine Atlantic's fleet and phasing in three larger vessels between 2006 and 2011;
improving Marine Atlantic's efficiency by eliminating the drop-trailer service;
improving the quality, timeliness, and cost-effectiveness of the service;
improving relations with users and stakeholders through partnerships;
passing savings and efficiencies on to users with a 15 per cent rate reduction;
stabilizing and predicting future rates based on inflation;
stabilizing Marine Atlantic's annual subsidy; and
relocating Marine Atlantic's head office to Port aux Basques.
The recommendations will be reviewed by Transport Canada, in consultation with the provinces and stakeholders, before the Government of Canada makes any decision on the implementation of a long-term strategy.
Marine Atlantic Inc. is a Crown corporation mandated to operate the constitutionally required ferry service between North Sydney, Nova Scotia and Port aux Basques, Newfoundland and Labrador, as well as the seasonal alternative service between North Sydney and Argentia, Newfoundland and Labrador, on behalf of the Government of Canada.
The committee, which was formed by the Minister of Transport in November 2004, studied a wide range of issues to identify long-term strategies for stabilizing the company's ferry service operations. It consulted extensively with stakeholders, including the Provinces of Newfoundland and Labrador and Nova Scotia, tourism groups, the trucking industry, labour unions and municipalities. It also worked closely with Marine Atlantic Inc.
The committee focused on the following issues:
the economic importance of Marine Atlantic and its services;
the quality and level of service required;
fleet configuration and renewal;
future capital requirements;
efficiencies in Marine Atlantic's operations;
alternative service delivery;
ongoing partnership opportunities; and
long-term funding solutions and pricing strategies.
To view the committee's report, please visit www.tc.gc.ca/pol/en/report/tp14369/menu.htm.
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Contacts:
Irène MarcheterreDirector of CommunicationsOffice of the Minister of Transport, Ottawa(613) 991-0700
Anne-Marie BouchardCommunicationsTransport Canada, Ottawa(613) 993-0055
Tom OrmsbyDirector of CommunicationsOffice of the MinisterNatural Resources Canada, Ottawa(613) 996-2007
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