• The Vanguard News Local Opposition questions government on its plan for a sustainable Yarmouth-Maine ferry service Tina Comeau Nova Star docked in Yarmouth. TINA COMEAU PHOTO HALIFAX - It’s not surprising that questions during question period in the Nova Scotia Legislature on Oct. 16 were centred on the Nova Star service. What opposition parties want to know from the provincial government is what plan does it have for a sustainable ferry service between New England and Nova Scotia? “The minister responsible has all but admitted that there will be more subsidies to come in the future, including, possibly, for winter storage and for start up again next season,” said Progressive Conservative leader Jamie Baillie in the Nova Scotia Legislature Oct. 16. “Tourist operators, small business owners along the south shore and across our province, Nova Scotia taxpayers, they all deserve to know that the government is handling this important service responsibly.” He asked if Premier Stephen McNeil would produce a plan “to show Nova Scotians that there is a plan for a sustainable ferry service from Yarmouth to Portland.” The questions came two days after Economic and Rural Development and Tourism Minister Michel Samson announced the province would be giving the ferry operator that runs the service another $5 million because the company doesn’t have the money to cover all of its expenses from the season. This comes in addition to the $21 million to province had already advanced to Nova Star Cruises this year. That money was supposed to be spread over seven years. Meanwhile, on Thursday the company released details pertaining to a pay package for four members of its executive team. As part of the ferry agreement, the four executives agreed to only draw 50 per cent of their salaries until the ferry service turns a profit. At the deferred rate the pay package for the four people totals $425,000. The company didn’t provide any breakdown. Nova Star ended its season having carried 59,018 passengers. The season started out slow but the month of August, in particular, and September were strong. Prior to the launch of the service the company said it was aiming to transport 100,000 passengers. Responding to questions by Baillie in the Legislature, Premier McNeil said it is premature to judge the long-term outlook of the service based on one season. He noted the province is having the ferry’s costs audited with the goal of finding savings. “We’re going to continue to work with that operator so that service is not only there for next year, but for the long run for all Nova Scotians,” the premier said. Responded Baillie, “We all want the ferry to succeed, that is not the issue. The issue before Nova Scotians today is . . . whether the government is doing a competent job of actually managing that service or not.” He noted the province is banking on the governor of Maine introducing legislation to allow the state to put up a $5 million line of credit. But Baillie pointed out Governor Paul LePage is in the midst of an election. There is no guarantee he’ll win. And there is no guarantee if he loses that the next governor would introduce similar legislation. “What is Plan B?” he asked. Plan B is already an issue given that Nova Star hasn’t yet secured a winter route to pull in income, seeing whereas there are costs associated with having it lay over for the winter. The province has asked the ferry operator to exhaust all possibilities in finding a winter route. The company says it is working on this. In speaking with the media two days earlier, Samson had noted that no ferry service is able to operate without a subsidy. But he also said the province expects that others who benefit from the service would step up financially. In August 2012 an expert panel studying the issue of a ferry connection between New England and Nova Scotia predicted that operating losses in the early years of a service would be in the $20-million range. It recommended a cruise ferry service as being best suited for the route, so that the voyage itself is also part of the travel experience. The panel had suggested the federal and provincial governments would have to provide roughly $30 to $35 million in support. Still, the opposition has concerns with the taxpayer money that is being handed over. “I know the minister can understand the concern people have, and they want to make sure it’s going to be viable here and into the future,” said Argyle-Barrington MLA Chris d’Entremont. “But when we see the government reacting and cutting other cheques and committing up to $5 million one week and another week something else might come along, we’re just asking whether there is an opportunity for a plan to be drafted so that people can be comfortable that this ferry service will be here into the future.”
Posted on: Fri, 17 Oct 2014 15:37:56 +0000
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