Caribou-Wood Islands Ferry Service Future Secured
PREMIER'S OFFICE--Caribou-Wood Islands Ferry Service Future Secured
A new agreement will allow Northumberland Ferries to maintain a two-ship operation and its traditional level of service between Caribou, N.S., and Wood Islands, P.E.I.
Premier John Hamm said he is pleased with the announcement made today, March 23, by the federal government. Through an agreement in principle, ferry service subsidies will be maintained and, in fact, increased through to 2010 at the province's second-busiest point of entry for vehicles.
"This is good news for our tourism and economic development efforts in the Pictou County area and in our province as a whole," Premier Hamm said. "I am glad the federal government realizes the current level of service provided through Northumberland Ferries is not something that can be reduced without seriously harming our province and Prince Edward Island economically."
The funding will cover operational and maintenance costs, and discussions will be held on ways to minimize and control operating losses. As well, Transport Canada will continue to be responsible for undertaking major repairs and capital investments, such as dry-docking, dredging and major terminal repairs.
The premier thanked officials at Transport Canada and others involved for responding positively to the concerns of both Nova Scotia and Prince Edward Island so swiftly. He also credited a strong lobby from residents, the business community, and the local tourism industries in both Nova Scotia and Prince Edward Island, along with pleas from representatives at all levels of government, with bringing a quick end to Transport Canada's suggestions for severe cuts to the service.
"It's a nice way to kick off spring. Transport Canada's plans for reductions in subsidies to the service had sent a chill through both our business and tourism communities," said the premier.
The current subsidy for the service is due to expire at the end of March. Reports had suggested that the reduction in funding would result in a service cut of almost two months and perhaps lead eventually to the loss of one of the two ferries.
"Such an uncompetitive service would surely have led to a complete abandonment of this historic ferry service by both users and our federal government," the premier said.
In a letter sent to the Prime Minister Paul Martin earlier in March, Premier Hamm noted that the Nova Scotia-Prince Edward Island service has proven that it remains a popular alternative for a variety of reasons since the fixed link opened in 1999. He added that the Confederation Bridge was constructed to replace the former service between the Island and New Brunswick, not the Nova Scotia to P.E.I. link.