The province has released a new version of the government's official website. It pretty much follows the Tourism PEI website's design and the liberal parties website design.

While the rotating top header is a hit and I like it, the bottom part where the actual content is, could use some work!

Not sure why most of their images do not have alt tags. This has been required by web accessibility guidelines for many years to enable the visually impaired who use screen readers to know what the graphic represents.
http://www.w3.org/TR/WCAG10/
1.1 Provide a text equivalent for every non-text element (e.g., via "alt", "longdesc", or in element content). This includes: images, graphical representations of text (including symbols), image map regions, animations (e.g., animated GIFs), applets and programmatic objects, ascii art, frames, scripts, images used as list bullets, spacers, graphical buttons, sounds (played with or without user interaction), stand-alone audio files, audio tracks of video, and video. [Priority 1]
For example, in HTML:
Use "alt" for the IMG, INPUT, and APPLET elements, or provide a text equivalent in the content of the OBJECT and APPLET elements.
For complex content (e.g., a chart) where the "alt" text does not provide a complete text equivalent, provide an additional description using, for example, "longdesc" with IMG or FRAME, a link inside an OBJECT element, or a description link.
For image maps, either use the "alt" attribute with AREA, or use the MAP element with A elements (and other text) as content.

I am also surprised that their News Releases section still does not support RSS feeds!

Well, I used to work on the gov site (the outgoing design was done by me). The site used to be managed under a different department and accessibility was something that was preached to us daily. Then the Gov decided to merge all the IT under one department and now as far as I know there is only one person working on the site. Most of the content is managed by each department and for the most part, the people have very basic html skills. I don't want to say anything bad about the dev team because I know their capable but, given the amount of traffic the site gets and the impact it has for many islanders, there should be at least 10 people dedicated to it!

@Derek: As of now I am seeing alt tags on their main page however I did find some basic coding errors like where they called the style type tag the second time, they forgot to close their comment tag.

Nor does the site validate (http://validator.w3.org.

@TJ: I understand the design was outsourced to Revolution Media? Apparently at a hefty sum however more improvements are coming.