N.L. government wades into Oceanex, Marine Atlantic fight
The provincial government says it intends to wade into a legal battle between Oceanex and Marine Atlantic, in an attempt to prevent any possible increase in the ferry service's commercial freight rates.
Oceanex applied this year to the federal court to lower the subsidy Marine Atlantic receives from Ottawa, which allows the ferry service to offer lower rates for commercial shipping.
Oceanex, a private shipping company, doesn't think that subsidy is fair, while the Crown corporation Marine Atlantic and retailers fear losing the federal subsidy would mean higher costs for consumers on the island.
In a statement released Thursday, Justice Minister Andrew Parsons said the province will apply to intervene in that case, opposing Oceanex.
Parsons said if successful, Oceanex's move "will have direct and negative impact on the cost of goods in Newfoundland and Labrador."
"We will take whatever legal steps that are necessary to protect the constitutional right of Newfoundlanders and Labradorians to a modern and affordable ferry service," he said.
Marine Atlantic hiked its commercial ferry rates 2.6 per cent as of April 1.