Minister of Transport announces the elimination of Marine Atlantic Inc.'s cost-recovery policy

OTTAWA, ON, July 5, 2024 /CNW/ - The communities we're building should be places where Canadians and young families can put down roots and build their futures. Connected communities grow our economy, help entrepreneurs set up shop, and give everyone a fair chance to succeed. Marine Atlantic Inc. is the federal Crown corporation that maintains daily, year-round freight and passenger ferry service between North Sydney, Nova Scotia, and Channel-Port aux Basques, Newfoundland and Labrador (NL). This ferry service is essential for Newfoundlanders and Labradorians, Atlantic Canadians, and their communities, and it's a critical component of Canada's transportation network.

Today, the Minister of Transport, Pablo Rodriguez, announced that the government is eliminating the policy that required Marine Atlantic Inc. to recover, through revenue, 65% percent of most of its operating expenses. By eliminating this cost-recovery policy, the government is keeping services affordable for residents, tourists, and businesses. Without the formal cost-recovery policy, Marine Atlantic Inc. is better able to respond to passenger needs, and ensure continued, safe, and reliable ferry services.

Quote

"Marine Atlantic is a vital service for Newfoundlanders and Labradorians, and Atlantic Canadians. Our government is eliminating the overall cost-recovery policy, because that's the fair thing to do"

The Honourable Pablo Rodriguez
Minister of Transport

"People are feeling the pinch right now. More money for Marine Atlantic means keeping rates affordable and the cost of goods down."

The Honourable Seamus O'Regan
Minister of Labour and Minister for Seniors

"Marine Atlantic is lifeline for Newfoundlanders and Labradorians so helping keep their costs down, keeps costs down for everyone."

The Honourable Gudie Hutchings
Minister of Rural Economic Development of Canada

Quick facts

• Marine Atlantic Inc.'s services are integral to the regional economy as it provides for the transportation of perishable food, medical supplies, dangerous goods, as well as transports residents and tourists to and from the Island of Newfoundland.
• The ferry service between North Sydney, NS, and Channel-Port aux Basques, NL, is a critical component of Canada's transportation network.
• Marine Atlantic Inc. also operates a seasonal ferry service between North Sydney, NS, and Argentia, NL.
• In 2023-24, Marine Atlantic Inc. transported 367,786 passengers, 145,257 passenger vehicles, and 91,088 commercial vehicles, and employed over 1,300 people. 
• In the interest of keeping the service affordable, Marine Atlantic Inc. has not increased the fares for passengers on the Channel-Port aux Basques route since 2017, and commercial fares on the same route have been stable since 2020.
• Since 2015, Marine Atlantic Inc. has received over $1.8 billion in federal funding to enable its operations.

Associated link

Marine Atlantic website  

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SOURCE Transport Canada - Ottawa

Contacts: Laurent de Casanove, Press Secretary, Office of the Honourable Pablo Rodriguez, Minister of Transport, Ottawa, [email protected]; Media relations, Transport Canada, Ottawa, [email protected], 613-993-0055