Cancelled ferry service could cost N.S. taxpayers if boat not sold before Sept.

The Canadian Press ~ The News
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HALIFAX - A cancelled ferry service between southwestern Nova Scotia and Maine could cost provincial taxpayers millions of dollars if the vessel is not sold before September.
Bay Ferries Ltd.'s agreement with the former Tory government included $3 million in transition payments to help the company meet its debts and maintain the high-speed vessel if the service was shut down.
Six monthly payouts of $500,000 will begin April 1.
A spokeswoman for the Economic Development Department, which is overseeing the contract, says if Bay Ferries' costs prove to be less the balance will be returned to the province.
However, Heather Spidell says once the payments are complete the province would recoup nothing, even if the ferry is eventually sold.
Bay Ferries announced in December the high-speed service between Yarmouth, N.S., and Bar Harbour, Maine, would be discontinued after the Nova Scotia government said it would no longer provide subsidies.

Organizations: Bay Ferries Ltd., Tory, Economic Development Department

Geographic location: Nova Scotia, Maine, HALIFAX Yarmouth Bar Harbour

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