Minister Garneau’s appearance before the Standing Committee on Transport, Infrastructure and Communities (TRAN) on Main Estimates 2020-21 and Supplementary Estimates (B), 2020-21 held on November 5, 2020

26. MARINE ATLANTIC INC.

MARINE ATLANTIC INC.

Requesting $55,675,667 for the 2020-2021 Main Estimates

Marine Atlantic Inc. is seeking access to $55,675,667 in planned spending authorities.

Key Messages:

  • This funding is from the corporation’s base appropriation and Budget 2019 decisions.
  • Marine Atlantic provides the constitutionally mandated ferry service between the Island of Newfoundland and Canada’s mainland.
  • The funds will serve to cover the operating shortfall and capital requirements of Marine Atlantic ferry services including the procurement of a new vessel.
  • Canadians will benefit from a safe, effective and efficient ferry service to and from Newfoundland.

Background

Marine Atlantic Inc. (MAI) is a non-agent Crown corporation incorporated under the Canada Business Corporation Act.  MAI does not have its own enabling legislation.

MAI is responsible for operating the ferry service between the Island of Newfoundland and Nova Scotia.  Its vessels carry people, vehicles, and commercial units that deliver goods and products to and from the Province of Newfoundland and Labrador (NL).  MAI fulfills Canada’s constitutional obligation to provide a year-round ferry service between North Sydney, Nova Scotia (NS) and Port aux Basques, NL.  It also provides a seasonal service between North Sydney and Argentia, NL.

MAI owns three ferry terminals and operates a fleet of four ice-class RoPax vessels, which have the ability to accommodate both commercial freight and travellers at the same time.  Budget 2019 provided MAI with authority and funding for the procurement of a new ferry vessel.

In Budget 2019, the Government provided multi-year funding to MAI to support the modernization of its fleet through the procurement of a new ferry vessel.