Government Of Canada Funds New Vessel For Marine Atlantic Inc.

April 25, 2008

PORT AUX BASQUES, NL — The Honourable Loyola Hearn, Minister of Fisheries and Oceans, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today announced the Government of Canada is providing $101 million over five years, to enable Marine Atlantic Inc. (MAI) to acquire a charter vessel that will address increasing traffic to and from Newfoundland and Labrador.

“The ferry connection between Newfoundland and Labrador and the mainland is an important issue for people clear across our province,” said Loyola Hearn, Minister of Fisheries and Oceans. “Our government is making a much-needed investment to ensure that we have the capacity to deal with increasing both passenger and freight traffic on this main transportation link. It will have a tremendous positive impact on the local and regional economy.”

“The Government of Canada recognizes that Marine Atlantic provides an economic and social lifeline for Newfoundland and Labrador and we are pleased that this initiative will help to secure a safe and reliable transportation option,” said Minister Cannon. “We are taking immediate action to help Marine Atlantic improve the overall efficiency of their fleet, through the acquisition of a more state-of-the-art vessel.”

The federal government is working with MAI on detailed requirements and costs, to develop a fleet renewal program that meets the needs and demands of Canadians in the region who rely on ferry transportation.

“This new charter vessel for MAI should result in positive environmental effects: reduction of CO2, improved wastewater handling and increased overall fuel efficiency,” added Peter MacKay, Minister of National Defence and Minister of the Atlantic Canada Opportunities Agency. “It is a win for the people of this region and a win for the environment as a whole.”

Marine Atlantic Inc., a federal Crown corporation, provides ferry services between Newfoundland and Labrador and Nova Scotia. These services form a virtual extension of the Trans-Canada Highway and provide an important transportation link to Newfoundland and Labrador for many travellers and goods.

MAI was already operating at capacity in peak periods during 2007. Acquiring a charter vessel will enable the corporation to increase passenger/freight capacity, beginning with the 2008 season. This initiative builds on a strategy, announced in February 2007, to revitalize MAI's ferry services.