Question Period Note: Eastern Canada ferry services

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About

Reference number:
TC-2021-QP-00009
Date received:
Nov 30, 2021
Organization:
Transport Canada
Name of Minister:
Alghabra, Omar (Hon.)
Title of Minister:
Minister of Transport

Issue/Question:

Eastern Canada ferry services

Suggested Response:

  • The Government of Canada supports three inter-provincial ferry services in Eastern Canada, including service between: Saint John, New Brunswick and Digby, Nova Scotia; Wood Islands, Prince Edward Island and Caribou, Nova Scotia; and Îles-de-la-Madeleine, Quebec and Souris, Prince Edward Island.
  • In August 2021, the Government announced that the Ferry Services Contribution would be extended for another five years, until March 31, 2027.
  • This extension will ensure safe and reliable service while supporting the marine sector, creating well-paying jobs, growing the middle class, and building a strong foundation for a sustainable economic future in Canada.

If pressed

  • Canada continues to work with Chantier Davie to advance design work for the MV Jean Lapierre and the replacement for the MV Holiday Island. The new vessels are expected to come into service in 2026/2027 and will use hybrid propulsion technologies to reduce emissions and support the Government’s Climate Action Plan.

Background:

  • Through the Ferry Services Contribution Program, contribution funding is provided to ferry operators to cover operating deficits (revenues minus operating costs)and expenditures made to maintain and repair Transport Canada’s assets (vessels and terminals) for the safe operation of the ferry services.
  • Budget 2019 announced that the Government would procure two new vessels from a Canadian shipyard to replace the MV Madeleine and the MV Holiday Island as both ferries are at the end of their useful lives. The new vessels are expected to be in service by 2026/2027. Funding has not been publicly announced due to ongoing commercial negotiations.
  • In September 2020, the Government announced that it would acquire the MV Villa de Teror as an interim replacement for the MV Madeleine until the permanent replacement, the MV Jean Lapierre, is ready for service in 2026/2027. The MV Villa de Teror (renamed MV Madeleine II) entered into service on June 1, 2021.

Additional Information:

None