Nova Scotia Committed to Help Keep Ferry Service

Working in co-operation with the governments of Canada and New Brunswick, the government of Nova Scotia is prepared to help keep the Digby-Saint John Ferry service in operation.

On June 30, Bay Ferries Ltd. announced it would end its service on Oct. 31 because of high fuel prices and a decrease in ferry traffic.

Nova Scotia has been working with the federal government, the province of New Brunswick and with the various municipalities most directly affected by a closure, to try and understand the significance of the impacts of this ferry service on the regional economies in eastern Canada. A working group has been analyzing recommendations and potential options contained in a consultant's report. That report estimates a net annual economic impact of more than $20 million if the service was discontinued.

"The government of Nova Scotia is prepared to make an investment of up to $2 million over the next two years to help keep the service in operation," said Premier Rodney MacDonald. "This will be Nova Scotia's contribution to the multi-government effort to improve the assets of the service and enhance its business case."

The Nova Scotia government recognizes the importance of this ferry as an essential passenger and commercial link. More than 100 employees work for the ferry service while others provide services to the ferry. Fishery, forestry and general freight make up the bulk of commercial traffic.

"There will still be a need to work toward a long-term solution," said Richard Hurlburt, Minister of Economic Development. "We are hopeful the federal government will continue to work with all those involved to try and ensure this critical inter-provincial service is maintained."

If current discussions with Bay Ferries Ltd. are successful, an announcement is expected soon on the federal-provincial investment that will be provided.