
Newfoundland shipper challenges federal ferry subsidies: ‘That’s not fair’
ST. JOHN’S, N.L. — A marine shipping dispute is challenging the country’s constitutional obligation to its youngest province, as a newly released report finds federal subsidies for Marine Atlantic ferries are pricing private carriers out of the market.
Marine Atlantic, a Crown corporation operating ferries between Newfoundland and Nova Scotia, uses federal tax dollars to provide shipping at less than half its true cost, according to a Transport Canada report prepared by CPCS Transcom.
The subsidies create a “market distortion and entry barrier” for private-sector players, the report said, noting that Marine Atlantic would have to double its prices or cut its operating costs in half to level the playing field.
“In dollar terms the government of Canada provides live loads (driver-accompanied trucks) and drop trailers travelling on the Port Aux Basques routes with a subsidy of roughly $800 per direction,” the CPCS report said.