Nova Scotia and Prince Edward Island Encourage Federal Government to Support Northumberland Ferries Long Term

PREMIER'S OFFICE--Nova Scotia and Prince Edward Island Encourage Federal Government to Support Northumberland Ferries Long Term

• ---------------------------------------------------------------The ferry service between Nova Scotia and Prince Edward Island is vital to the economic success of the region said Premier Darrell Dexter and Prince Edward Island Premier Robert Ghiz, today, Nov. 29, in Pictou.

Both premiers urged the government of Canada to move forward with signing a long-term funding agreement with Northumberland Ferries.

"The ferry is an important gateway to Nova Scotia," said Premier Dexter. "Maintaining marine links between provinces is an important federal responsibility and I encourage the government of Canada to support the Nova Scotia-Prince Edward Island ferry service."

"The ferry service has been without stable funding for far too long," said Premier Ghiz. "That's why today Premier Dexter and I are calling on Ottawa to restore long-term funding and preserve this vital transportation link between our two provinces well into the future."

The premiers made their comments at the Council of Atlantic Premiers meeting. Together they called on the federal government to sign a new 15-year funding agreement with Northumberland Ferries with no reduction in service levels.

The ferry service has been in operation since 1941 and is the most direct link between Nova Scotia and Prince Edward Island. Prior to 1994, the federal government signed ten- and twenty-year contribution agreements for the service. The agreements enabled economic development in the region.

Since 1994, contribution agreements have only covered one to five years. Short agreements hinder regional business investment and tourism development, create economic uncertainty, and erode confidence in the service's future. The last five-year agreement expired in March of this year. A federal operational review of the service began in 2009.

"We all have an opportunity to ensure this ferry services remains a sustainable service on a long-term basis and I look forward to working with P.E.I. and the government of Canada to make that happen," said Premier Dexter.

"Businesses, tourism operators, agricultural producers and transport companies are all anxious to know whether this service is going to be operational in the coming years," said Premier Ghiz. "The lack of long-term funding for the ferry gives these businesses no way to plan for future growth, or for future decline. There's too much uncertainty."

A recent study showed the ferry service provides close to $21-million annually to the Prince Edward Island economy and close to $12 million to Nova Scotia's economy. The service also provides almost two hundred jobs between the two provinces.

In addition to the long-term agreement sought by the provinces, Premier Dexter and Premier Ghiz are calling on Ottawa to assist Northumberland Ferries with an asset replacement plan to allow the company to refurbish or replace the MV Holiday Island ferry, which is 39 years old.