Nova Scotia Opposed to Tariff Removal

Premier John Hamm today reiterated his government's opposition to a proposal from the European Free Trade Association (EFTA) to remove tariffs on Norwegian supply vessels.

"If the tariff is removed, the impact would be devastating to the shipbuilding and marine fabrication industries in this area and the people who rely on them for their livelihoods," said Premier Hamm.

The EFTA proposal would see a 25 per cent tariff on Norwegian supply vessels and offshore supply services removed. The shipbuilding and marine fabrication industries would then be exposed to unfair Norwegian competition. Norway continues to benefit from a variety of subsidies and tax incentives, giving it an ability to undercut emerging Nova Scotia offshore industries.

Economic Development Minister Gordon Balser said the government will continue to pressure Ottawa on this issue.

"It has been and will continue to be a top priority until the industry gets a satisfactory resolution," he said.

Andrew McArthur of Irving Shipbuilding and Don MacLeod of Secunda Marine Services both expressed their gratitude for the province's support on this issue.

"Premier Hamm and Minister Balser have been extremely helpful concerning this issue," said Mr. McArthur.

"The vessel operators, shipyards and the whole offshore support sector in Nova Scotia will be devastated," said Mr. MacLeod. "Thousands of jobs in these industries will be lost with this proposal."