MARINE ATLANTIC INC.
Requesting $40,755,438 for the 2022-2023 Main Estimates
Marine Atlantic Inc. is seeking access to $40,755,438 in planned spending authorities.
KEY MESSAGES:
- The funding is from the corporation’s base appropriation, Budget 2019 decisions and additional funding approved in 2020.
- Marine Atlantic provides the constitutionally mandated ferry service between the Island of Newfoundland and Canada’s mainland.
- The funds will serve to cover a portion of the operating shortfall and capital requirements of Marine Atlantic ferry services.
- Canadians will continue to benefit from a safe, efficient, and modern 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 vessels, which can accommodate both commercial freight and travellers at the same time.
In Budget 2019, the Government provided multi-year funding to MAI to support the modernization of its fleet through the procurement of a new purpose-built charter-to-own ferry vessel. This procurement process is complete, detailed designs are almost finalized and construction is slated to begin in May 2022 for delivery in early 2024.
The additional 2020 funding provided multi-year funding to MAI for the construction of a new administration building in Port aux Basques.
MAI has requested additional funding through a 2022 funding proposal to cover the remainder of its operating and capital shortfall. Any top-up funding the Minister of Finance will allocate to Marine Atlantic will be drawn down through later estimate exercises.