While the Nova Scotia government is applauding city council in Portland for approving a two-year lease with Bay Ferries, the opposition says it’s proof the agreement is floating on the backs of Nova Scotia taxpayers.
“We're underwriting all the losses, that's the deal they made,” said Nova Scotia Opposition Leader Jamie Baillie. “It's such a bad deal that now they have days they can't sail. That means tickets that won't get sold, it means tourists that won't come to Nova Scotia.”
The agreement settles earlier concerns that the City of Portland may reject the agreed-upon schedule, which has The Cat docking overnight in Yarmouth.
“This is about room nights in Yarmouth, both from passengers going out in the morning and those coming in at night. This is about restaurants in Yarmouth and southwestern Nova Scotia,” said Nova Scotia Premier Stephen McNeil.
Officials in Portland believe the service will pump about $150,000 a year into the local economy and there is no upfront cost for American taxpayers.
On the Nova Scotia side of the border, taxpayers will shell out more than $30 million over the next two years to keep the service running.
However, Nova Scotia Transportation Minister Geoff MacLellan is celebrating the deal.
“We've been working on this agreement for a number of months so the fact that we're here now, we've got this agreement, voted on unanimously by the City of Portland means that we're ready to get to business,” said Minister MacLellan.
The agreement also includes nine blackout dates – one day in August and eight days in September. The City of Portland wants those dates set aside due to an anticipated high number of cruise ships in the harbour.
In a statement to CTV News, Bay Ferries says it's working on getting that down to four or five days this year.
“This could have been a whole lot of days that were subject to blackout. That's not the case and we've really pared it down,” said Minister MacLellan.
According to the agreement, Bay Ferries will pay a little more than $15,000 a month between June and September, and another $4,000 a month in the off-season, to use the facilities in Portland.
The company has also agreed to pay the City of Portland set fees for every passenger and vehicle that use the service. The first 60,000 passengers cost $2 per person, but that price will increase to $3.50 afterwards.
Bay Ferries has agreed to provide service seven days a week, but the berthing fees will remain the same if the ferry doesn’t run all week. If the ferry doesn’t run for more than 10 consecutive days for any reason other than a major mechanical failure, the landlord can terminate the lease.
Under the agreement, Bay Ferries is responsible for repairs and maintenance of the ramp in Portland.
The decision comes after the previous operator of the ferry, Nova Star Cruises, filed for bankruptcy after running the ferry for just two seasons.
The ferry will run between Yarmouth and Portland from June 15 to Sept. 30.
With files from CTV Atlantic’s Sarah Ritchie.
