A dispute over the fate of a former provincial ferry that’s been deemed a wreck by the Canadian Coast Guard and tied up for years in Springdale is now before the Federal Court of Canada.
The legal standoff is stalling plans by the government to seize the MV Capt. Earl W. Winsor and have it cut up for scrap.
In mid-October, the coast guard issued a notice of disposal for the Earl Winsor under the Wrecked, Abandoned or Hazardous Vessels Act, and described the vessel as “hazardous to the marine environment.”
The local town council has also raised concerns, and frustrated residents have described the vessel as a disgrace to the community
In a statement to CBC News late last year, the Coast Guard said the owner, Springdale businessman George Yates, had failed to comply with directions to address potential hazards and the “risks of pollution” from the Earl Winsor.
Yates was also hit with a $75,000 fine by the coast guard for allegedly failing to comply with directives following an incident in late 2024, when water leaked into the ship after a heavily corroded valve failed.
Environmental crews removed thousands of litres of water from the vessel, at taxpayers’ expense, and the leaking valve was repaired.
But in mid-November, the coast guard issued a call for proposals for companies who can cut up and dispose of the 1,600 gross tonne ship in an environmentally responsible manner. When the job is done, Yates will get the bill, under what’s known as the polluter pay system.
Federal government not commenting
The call for proposals deadline was extended to Dec. 16, but no contracts have been signed, the vessel still looms large over the Springdale waterfront, and the federal government has gone quiet.
“As there is ongoing litigation in this case, we are unable to provide further comment” spokesman Craig Macartney wrote in an email to CBC News.
Yates is fighting back against the government in a bid to keep possession of the Earl Winsor, and through his St. John’s based lawyer, Wayne White, has petitioned the court to throw out the notice of disposal and the hefty fine.
No hearing date has been set, according to a court official.
Springdale businessman George Yates said he will take all legal steps necessary to prevent the Canadian Coast Guard from taking his vessel, the Captain Earl W. Winsor. (Curtis Hicks/CBC)
But in a letter to the court from the federal Justice Department, senior counsel Corinne Bedford writes that “The Attorney General of Canada opposes the subject motion.”
The Act defines a wreck as a vessel or part of a vessel that is “sunk, partially sunk, adrift, stranded or grounded, including on the shore.”
Yates argues the Earl Winsor is not a wreck and could potentially be sold for more than $1 million.
Yates has declined interview requests, but in court documents accused the coast guard of unfairly targeting him because of complaints about the Earl Winsor made by the Town of Springdale.
“I am always mindful of environmental issues and the well-being of the town and its members and I do my very best to avoid harming our environment in any way,” Yates wrote in a Dec. 16 affidavit to the Federal Court.
White wrote the notice of disposal “provides no details on how or why the vessel was deemed a wreck.”
‘This vessel will certainly sell’
White said Yates made the necessary repairs to the ship, and has been actively trying to sell the Earl Winsor.
The court documents includes three separate inspection reports that Yates says proves the Earl Winsor is not a wreck
Tony Thompson of Nova Scotia-based E.Y.E. Marine Consultants inspected the Earl Winsor in late November, and concluded that the vessel is “not abandoned nor should it be considered a wreck.”
Thompson said the vessel is securely moored to Yates’ private wharf, both anchors are dropped to the seabed, and the vessel has “positive stability.”
Thompson added that the wharf is gated to prevent unauthorized access, and the vessel is “attended daily.”
The risk of pollution is also mitigated because the coast guard emptied the vessel of all hydrocarbons, said Thompson.
Glenn Burry of Aqua Nova Inc., who’s been working with Yates to market the vessel, described the Winsor as “sailable,” with a likely market in the Caribbean.
“This vessel will certainly sell in the Caribbean and be in service for many years after they are retired here in Canada,” Burry wrote.
Burry described the vessel as “staunch and tight, upright and light on drafts due to the removal of all liquids on board.”
“I find no reason for this vessel to be considered a wreck,” added Burry.
Yates paid $20K for the Earl Winsor
Yates argues he has not been “afforded procedural fairness,” and that having the vessel seized and disposed of by the coast guard is “not warranted.”
The Earl Winsor is a 75-metre long steel hulled vessel that was once part of the intra-provincial ferry fleet in Newfoundland and Labrador until 2018.
According to a statement from the Department of Transportation and Infrastructure, two attempts to sell the vessel through the public tendering process were unsuccessful. The first tender did not yield any compliant bidders, while the second tender did not receive any bidders at all.
The vessel was eventually sold to Yates for $20,000 on an “as is, where is” basis, and Yates towed the vessel to his private wharf in Springdale in early 2019.
Yates initially listed the vessel’s sale price at $2.5 million, but said he had to lower his asking price because of the Covid-19 pandemic, and what he called “negative publicity” by the coast guard.
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