$19M lifeline keeps Digby-Saint John ferry afloat

DIGBY, N.S. — The struggling Digby-Saint John ferry service will continue to run until at least 2011, after Ottawa kicked in $11.1 million to keep the service from going under.

In total, the Princess of Acadia ferry and harbor will get $19.1 million from Transport Canada and the provinces of Nova Scotia and New Brunswick — which are investing $2 million each.

"We recognize the importance of the ferry to the economy. We have listened to community and business leaders who rely on these important assets and delivered results for them and the people of Nova Scotia and New Brunswick," said Minister MacKay, Minister of the Atlantic Canada Opportunities Agency.

The package ensures the Bay of Fundy service will continue to run until January 31, 2011.

The Government of Canada will also invest $3 million for the Digby Harbour Port Association (DHPA) to fund operationally necessary repairs to the wharf and the port.

"By providing financial assistance to extend the ferry service, we are promoting a more productive economy, encouraging long-term competitiveness and sustainability, and improving the quality of life for our communities," said Transport Minister Lawrence Cannon. "Our government is also committed to ensuring the safe and effective operation of our ports."

The service has been getting small cash infusions for several years to keep it running.

The operator Bay Ferries has been threatening to anchor the service permanently because of skyrocketing fuel costs, as well as a drop in tourism and forestry exports.