Hospitality NL says the rate increases at Marine Atlantic will only hurt an industry that is still recovering from pandemic loss.
Chair Deborah Borden says the new fuel surcharge—raising the current rate from 13 per cent to 17 per cent— set to take effect in June is only making the province less accessible at a time where transportation options are limited.
With many people being cost conscious nowadays, Borden says rate increases may dissuade potential visitors.
(Tourism Minister Steve Crocker and Chair of Hospitality NL Deborah Bourden)
She says with fewer flights coming to the province in recent years, Marine Atlantic has been vital in getting tourists to and from the province. She says its disappointing to see prices go up when in reality they should be on the decline.
Borden is calling on Ottawa to decrease the required 65 per cent cost recovery rate for corporations. She says the province has a right to have access to the mainland and vice versa. Currently, Borden says, that access is being “squeezed from every which way.”
Darrell Mercer with Marine Atlantic says the move was necessary as their previous fuel hedging program no longer made sense due to the volatility of the fuel market.
He says the new model will have the surcharge set as the average price of fuel they pay during the previous six months, meaning it may be greater or lesser depending on the price of fuel at that time.
Minister of Industry, Energy and Technology Andrew Parsons
The provincial government is looking at what recourse they might have in challenging rate increases at Marine Atlantic.
Minister Andrew Parsons says the rate increase hits home harder now than perhaps it ever has.
Therefore, Parsons says government will be looking at its options on how to proceed, which may include the legal route. He says when he was Attorney General, they referenced past cases involving Marine Atlantic, so they have to look at those instances now.
PC Leader David Brazil
Meanwhile, PC Leader David Brazil says it’s all well and good for government to say they disagree with the decision, but he questions what they have been doing recently to prevent such an increase from happening.
Brazil references politicians in PEI and how they worked to ensure costs related to the Confederation Bridge didn’t increase.
