HALIFAX (CP) - A tentative deal has been reached to maintain ferry service between Nova Scotia and New Brunswick, says the minister responsible for the Atlantic Canada Opportunities Agency.
Peter MacKay said Friday that details of the agreement won't be released until Monday. "The reason for the announcement today is to set to rest any fears the workers and communities have because we are coming up against a deadline," MacKay told The Canadian Press in Ottawa.
The service between Digby, N.S., and Saint John, N.B., was to end at the end of the month.
The operator, Bay Ferries Ltd. of Charlottetown, blamed declining passenger numbers and high fuel costs for its decision to stop.
Nova Scotia and New Brunswick each offered $2 million to keep the service running for the next two years. Ottawa will provide $4 million over the same period.
MacKay said the federal government's contribution will largely be aimed at improving infrastructure.
But he said there has to be a concerted effort to increase passenger and commercial traffic on the route.
The ferry-saving deal comes as the Conservatives are facing problems in most of Atlantic Canada.
The party was turfed from power in a Sept. 18 election in New Brunswick, where the potential loss of ferry service was a major headache for former premier Bernard Lord.
In Nova Scotia, the Tories are clinging to a tenuous minority government. And in Newfoundland, Tory Premier Danny Williams is openly feuding with Prime Minister Stephen Harper over equalization and offshore legislation.
MacKay denied that politics had anything to do with pushing the federal contribution for the ferry service through cabinet.
"I think it mostly had to do with people and the impact it was going to have on the community of Digby and the community of Saint John," he said.
Mark MacDonald, president and CEO of Bay Ferries, said he is "delighted" by the development.
"The last several days have seen positive, constructive discussions between Bay Ferries and the federal government to resolve outstanding issues related to federal funding for continuation of the ferry service," he said in a release.
"We are looking forward to Monday's official announcement."
