Premiers want long-term ferry commitment

Prince Edward Island Premier Robert Ghiz and Nova Scotia Premier Darrell Dexter are calling on Ottawa to put a long-term funding agreement in place for Northumberland Ferries.

The service, which travels between Wood Islands, P.E.I. and Caribou, N.S., is under review by Transport Canada, and there are fears it could be severely cut back.

According to federal figures, 70 per cent of trips are less than half full.

Last March, when Northumberland Ferries' five-year contract was up, Ottawa extended it for a year and ordered the review.

At a meeting of the Council of Atlantic Premiers in Pictou, N.S. on Monday, Ghiz said any reduction to the current federal subsidy, about $6 million annually,would be unacceptable.

"We're looking for a 15-year deal," Ghiz said. "Both Premier Dexter and I agree that it's challenging for businesses that depend on the ferry system between Wood Islands and Caribou to be able to make long range plans. Not knowing whether or not the ferry is going to continue year to year.

"We know now that there was a five-year agreement in place, but before that there used to be 15- to 20-year agreements. So we both are pushing on the federal government now to come up with a 15 year agreement."

Ghiz said in addition to a long-term funding agreement, the premiers are calling on Ottawa to help with the refurbishment or replacement of the MV Holiday Island, which is 39 years old.

He said the ferry service is worth $22 million annually to P.E.I.'s economy and upwards of 100 direct jobs.

Thom MacMillan, the president of the Tourism Industry Association of P.E.I, met with federal Transport Minister Chuck Strahl three weeks ago.

Hebelieves Ottawa is considering streamlining the service and thinking about reducing the number of ferries to just one.

"I have no idea if that's what will happen," said MacMillan. "He did not share a lot with us when we met with him. He said they're looking at different scenarios and we're assuming this is probably one of those scenarios."

The review of the service is expected to be made public in December.