Minister of Economic Development says area will rebound from ferry cancellation

By Michael Gorman

THE VANGUARD

NovaNewsNow.com

Nova Scotia’s minister of economic development admits that the cancellation of The Cat ferry between Yarmouth and Maine is bad news for the area, but Percy Paris says it doesn’t mean the area won’t rebound. “We are not abandoning the South West region,” Paris said by phone from Halifax. “(But) for us to spend $12 million for a part-time service that maybe attracts overall to the province of Nova Scotia less than one per cent of the tourist traffic that we see in this province, I think that merited deep consideration by this government and I think that’s what we’ve done.”

For the record, numbers from the province and Bay Ferries show that tourist traffic generated by The Cat for the year is closer to four per cent of the province’s total.

Bay Ferries announced Friday morning that it would be cancelling the upcoming sailing season between Yarmouth and Bar Habour and Portland, Maine due to a number of financial challenges facing the service and in light of a decision by the provincial government earlier this week not to subsidize the service.

It’s been suggested the company was looking for $6-7 million, although Paris said there wasn’t a hard figure discussed and he noted that the fluctuating cost of fuel could make that number even higher.

The reality of the situation is, said Paris, Bay Ferries decided a number of years ago the service was no longer financially viable for the company without help from the government. Although the province has sent millions of dollars to the company in the past few years, Paris said the government simply isn’t in a position to continue the practice. “We have to live within our means,” he said. “In light of the situation that the province is currently in, we know that we have to make some tough decisions.”

Local Tory MLAs Richard Hurlburt of Yarmouth and Chris d’Entremont of Argyle question the timing of the decision given that the results of an ACOA-funded transportation survey of the area are expected by early March. But Paris said to wait that long before making a decision would effectively bind the province to making a financial commitment for the upcoming season. Doing it now, when there is still plenty of time before the traditional start of the season, seemed to make the most sense, he said. “We’re in between (sailing) seasons right now so this seemed to be as appropriate a time for those kind of decisions to be made.”

Paris said the decision was made following a number of cabinet meetings and all members of government were aware of the decision. “Certainly all ministers were in the know when it came to Bay Ferries and the situation,” he said.

D’Entremont and Hurlburt charge that the money spent on Bay Ferries isn’t a subsidy of the company but rather an investment in the province. A number of areas around the province benefit from the ferry, they say, and the province should recognize that. Paris said the province felt they just couldn’t justify the cost. “This without a doubt is going to have an impact on the province of Nova Scotia,” he said. “The reverse of that is that a decision to stay involved would have an impact on all of Nova Scotia . . . Private sector business, the people that were running the ferry services, said to the province of Nova Scotia years ago that it wasn’t a viable operation.”

The cancellation of the ferry means 120 people who worked for Bay Ferries are now without jobs. Beyond that, area business operators are already expressing concerns that the loss of the ship will lead to a reduction of staff at restaurants, the loss of customs-related jobs and perhaps even the closure of certain businesses. The most chilling news related to jobs comes from Karen MacKay of the Grand Hotel and Rodd’s Colony Harbour Inn, who said that without ferry service in the town both hotels would be forced to close. At present they employee about 175 people.

Paris said that although he recognizes that the decision will cause hardship, he isn’t sold on the view that it will mean an end to businesses in the area. “I’m not convince that (that) will happen,” he said when informed of the response from area businesspeople to news of the ferry’s cancellation. “Unfortunately it will have an impact on the area, but one of the things that we have tried to do is we are looking at other options for the area,” he said, without elaborating. “We will continue on those efforts.”

Paris said the province’s biggest selling point when it comes to economic development is its people, their willingness to work hard and their education levels and that ultimately the province has alternative plans to help in the future. “The work that we’re doing in the region will attest to (our commitment to the region),” he said. “Our goal is not only for the Yarmouth area but all of Nova Scotia to make this a place for people to live, thrive and raise their families.”

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