NEWS RELEASE

                                                                                       Office of the Official Opposition

July 2, 2009
For Immediate Release

Ferry tenders breach of Bluebook commitment charges Opposition

Opposition Leader Yvonne Jones says the tenders issued earlier this year to build six coastal vessels fail to safeguard the interests of Newfoundlanders and Labradorians, including the workforce at the Glovertown Shipyard.

Ferry tenders were called this summer for services at Francois-Grey River-Burgeo; Lapoile-Grand Bruit-Rose Blance-Burgeo; Gaultois-McCullum-Hermitage; Recontre East-Bay Largent-Pool Cove; South East-BightPetite Forte and Norman Bay - Williams Harbour in Southern Labrdaor.

“These vessel tenders do not stipulate that they have to be built in Newfoundland and Labrador and this is very troubling”, says Jones. “Why would the provincial government choose to forfeit a significant tool of economic development during a recession, when shipyards in particular are hurting and we need to boost every job opportunity we can in this province?”

“I call upon Government to immediately commit to placing this provision in the tenders so that companies are mandated to keep work within the province, rather than having it sub-let to other national or international shipyards. Companies like the Glovertown Shipyard here in the District of Terra Nova would greatly benefit from such a revision in policy. There are over 200 workers and their families that would like to have a share of this significant chunk of money. $2.5 million would be paid out in payroll alone to an area of rural Newfoundland and Labrador that would desperately need it right now. “

Jones emphasizes that having ferry work done in this province and accruing the net benefit of this economic stimulus is not something new. “In fact, it is also something that this government committed to in their 2003 election blueprint when they stated, Our vessel replacement policy will be guided by net economic benefits to the Province rather than acquisition cost. Using this principle, we will be able to replace some or all of the provincial ferry fleet with new vessels built in the Province. Vessels built in our own yards would be up-to-date, and operate safely without needing major repairs or replacement for 30 years. Skilled Newfoundlanders and Labradorians will be employed in shipbuilding and work in supply, service and support industries; and the Province will benefit from higher tax revenues.

“It is time for government to do the right thing and sail this policy decision in the right direction for the benefit of all Newfoundlanders and Labradorians, including the shipyard workers at Glovertown.”

 

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Media Contact: 
Kim Ploughman | Communications
Office of the Official Opposition
Tel: (709) 729-6151 or (709) 687-0477