The Frontier Centre for Public Policy has just released No Easy Way to Pay the Ferryman: A Valuation of Marine Atlantic by Ian Madsen, a senior policy analyst with the Frontier Centre for Public Policy. The paper conducts an in depth valuation of the alternative choices for Canadian taxpayers if Marine Atlantic were divested.
Marine Atlantic Corp. is a Crown corporation owned by the Government of Canada. Marine Atlantic holds a monopoly position by being the only provider of ferry services between Nova Scotia and Newfoundland and Labrador. Due to the federal subsidies the corporation receives, other private ferry companies cannot compete with the prices Marine Atlantic offers its customers. Any operation that is dependent on subsidies is vulnerable to the subsidies being reduced or ended entirely. Taxpayers don’t need to be on the hook for this corporation.
To read this inspiring research paper, click here: VS14_MA-Valuation_OC0218_F1