The SIU along with the AFL-CIO Maritime Trades Department and other labor organizations are calling upon government officials in the U.S. and Canada to remove the Bahamian flag from a new fast ferry that has been heavily subsidized by American and Canadian taxpayer dollars.The Spirit of Ontario last month was scheduled to begin offering service between Rochester, N.Y. and Toronto. Built by Austal Ships of Australia, the ferry is owned by Canadian American Transportation Systems, which maintains offices in New York and Ontario.
According to news reports, the state of New York provided $14 million to help build the $42.5 million boat. Another $25 million in federal funds have been awarded in recent years to redevelop the Rochester harbor to enable the ferry project’s launch. More than $6 million in City of Rochester funds have been given for the project. Additionally, the U.S. Department of Homeland Security granted $1.1 million to the owner and the ferry. Canadian funds also were awarded.
In a letter to U.S. Senator Charles Schumer (D-N.Y.), SIU and MTD President Michael Sacco said that the ferry itself and the harbor improvements are good ideas, but registering the Spirit of Ontario under the Bahamian flag instead of the U.S. or Canadian flag “is particularly disturbing. By registering the ferry under the Bahamian flag, Canadian American Transport Systems’ fast ferry operation will enjoy the success of the public investment while at the same time avoid meeting U.S. tax obligations on the income generated once the ferry begins service,” Sacco wrote. “I am certain that the public officials who backed this project and who have worked diligently to ensure its launching had no clue that the company would be in a position to skirt U.S. tax payments. It must be disheartening to those New Yorkers to know that their tax dollars have advanced the fast ferry project but the U.S. Treasury will not see a truly just return on the investment.”
The SIU of Canada, the New York State AFL-CIO, some of the state’s central labor councils, the MTD and its port maritime councils also have spread the word about the runaway-flag ferry. In a resolution adopted by its executive board earlier this year, the MTD said it “urges officials in both nations to call on Canadian American Transportation Systems to do the right thing by sailing under the American or Canadian flag and hire American or Canadian mariners.” Currently, the ferry reportedly employs a mix of Australian and U.S. mariners.
The ferry was supposed to enter service May 1, but a docking accident and engine trouble delayed its opening. The boat can carry 774 passengers and 238 cars.
###
Printer Friendly Page