Repairs to problem-plagued MV Veteran may not be covered by warranty

A dispute is brewing over who is going to pay for crucial repairs to the troublesome ferry MV Veteran.

The two-year-old vessel, which services Fogo Island and Change Islands, is out of service for the third time.

According to Newfoundland and Labrador's minister of transportation, Steve Crocker, there's an issue with the ferry's thruster, the second time the boat has had that kind of problem.

"We purchased $50-million vessels with a one-year warranty," Crocker said.

"The previous administration … I'm not exactly sure what they were thinking when they did that, but it's quite unfortunate to see the situation that we're in today."

Damen Shipyards in Romania manufactured both the Veteran and its sister ship, Legionnaire, which is meant to service Bell Island.

According to Crocker, the provincial government demanded Damen extend the one-year warranty to two years in 2016 after the Veteran's inaugural year was plagued by mechanical issues.

"Right now, we're having discussions with the company [to determine] where that second year of the warranty ended," Crocker said.

The province says the warranty should stand until the end of November, and if Damen agrees, the Veteran's thruster problem will be fully covered.

If it's not, the government will have to "explore other options" in order to get the ferry back in service, said Crocker.

"The reality is, yes, we would obviously want to recover everything we can, but we'll have to see where this leads," he said.

"It's extremely frustrating and disappointing. I wouldn't buy a vehicle with a one-year warranty, let alone a $50-million vessel."

Whether the repairs are covered by the extended warranty or not, the Veteran will be out of service until at least January 2018.