(file photo-CJLS News)
The Nova Scotia government is giving more money to ‘the CAT’ this year.
Bay Ferries will receive an additional $1.5 million for the Yarmouth to Portland, Maine service, for a total subsidy of $10.9 million.
Transportation Minister Lloyd Hines says an increase in fuel prices is the reason.
Hines says this link is very important to Nova Scotia.
“The impact of 40 thousand-plus visitors coming into the province from that area, they just don’t stay in the Yarmouth area, they travel across the province.’
He says Bay Ferries had a significant hedge last year that worked in the province’s favour.
“It kept the subsidy down to $9.4 million. But it’s forecast to catch up with us this year, but that’s the way it is. You can run a catamaran ferry on anything but fuel.”
In the first two years of service, the province has given Bay Ferries $32.7 million.
Despite engine problems last year, Hines says ‘the CAT’ carried 20 percent more passengers than the previous year.
Hines says they are optimistic passenger numbers will continue to increase.
The ferry service resumed last week and is scheduled to run until October 8.
