Merchant Navy Veterans Keep Federal Payment

Premier Pat Binns says the Merchant Navy veterans had to struggle for many years to receive federal compensation, and the provincial government has no intention of interfering with the lump-sum payments.

He says the lump-sum payment will not be factored into contributions toward the costs of long-term care services for such Veterans on Prince Edward Island. "Given their service and the struggle for recognition, that is the only fair approach; we don't want to see that recognition diminished," stated the Premier.

New Brunswick and Nova Scotia have taken similar positions on the payments, recently awarded by the federal government to Merchant Navy veterans.

Revenue Canada classified the award as non-taxable/non-declarable income with the intention the long overdue payments would remain with the veterans. The province supports that position.