Concern over ferry loss mounts

Tourism operators from Queens Co. came to council on Dec. 21, hoping the Region would add is support to restore the CAT ferry Service.

On Dec. 18, it was announced Bay Ferries would shut down the high-speed link between Yarmouth and Maine, in part because the provincial government would no longer give financial support to the private company.

Danny Morton gave a few statistics about tourism as a whole for council to mull over during the presentation. In Nova Scotia, tourism is a $1.3 billion industry. Of that, the South Shore takes about $103 million, with $15 million going to taxes and $40 million in payrolls.

In 2009, 76,000 passengers took the Cat Ferry. If half of those stayed in Nova Scotia, according to the average spending of American’s on vacation that represents $23 million dollars.

He says losing the ferry will seriously lessen the competitiveness of Nova Scotia in the tourism market.

Morton’s request was to get accountability from province, and find out just how this is for the good of all Nova Scotian’s. Tourism Minister Percy Paris had previously stated the decision for the provincial NDP to not support the CAT was in Nova Scotian’s best interest.

Doug Fawthrop, who recently retired from White Point Beach Resort but still remains involved with tourism, says they have to look at ferry as infrastructure, like Highway 103, and not a business “It’s 76,000 customers that aren’t coming. It’s about ease of access. This isn’t about helping Bay Ferries. It’s about helping the people that make a living (as a result of the CAT).”

The jobs that are lost as a result of this, he adds, will quickly spiral outwards. Already, the president of Rodd Hotels in Yarmouth is considering closing the hotels there.

Once the CAT is gone, says Fawthrop, that segment of the American market won’t return even if the service is restored. He said the market is tough to begin with, and there are too many other options for them.

Ron Lane from Lane’s Privateer Inn spoke at the presentation as well. Lane’s is the oldest year round accommodation in Queens Co., operating since 1962. He says this part of Nova Scotia is especially tied to the American Market. Things have changed over the years however. Lane says they used to spend most summer evenings calling around trying to find a room for people when everything is full. “We’ve gone from that, to the position we are in now to… quite frankly I don’t know if we can last another year.”

Lane was dismayed there was no discussion, no presentation of studies or anything beforehand to let anyone know something was in the works before the decision was made. “You just opened the paper Friday morning and it’s gone.”

He acknowledged that we are in an economic downturn, but said like all downturns it will go back up. However losing the CAT is not the right direction. “It is a downturn, but it’ll be a roll over and die the way were are going.”

Councillors had the opportunity to ask questions and make comments during the presentation as well. Counc. Owen Hamlin compared not spending money on the ferry to those that call for a new Bluenose ship to be built, over the more expensive retrofitting of the existing one. “I have a message for them: I’m a Nova Scotian and this is not in my best interest”

Mayor John Leefe said if we loose this American market, even if it does come back in the future, it will be very difficult to ever return the ferry service to a viable operation.

Mayor Leefe added on south Shore, Fisheries are in Turmoil, Forestry facing huge challenges and agriculture is negligible. “The one industry that comes close to holding its own is tourism.”

The CAT may not be the right ferry, he said, but having one is better than nothing.

MLA Vicki Conrad faced a few tough questions during the presentation, which she addressed the best she could. She says while the announcement was surprising, it isn’t as surprising as it might seem. For example, she said, between 2001-2008, ridership decreased by 72 per cent.

Conrad was not part of decision to stop subsidizing the CAT, but knows the decision was not made lightly.

It was questioned why the government made this decision before an extensive transportation study was finished in Nova Scotia. Conrad said Bay Ferries pressured them for decision now for 2009-2010 season, and based on the information they had it had to be no.

Counc. Darlene Norman then asked how Conrad would take what she’s heard today back to the government “Are you going to side with your governments decision, or are you going to represent those people and the industries that are tied to that link? Are you going to stand up and bat for us as our MLA”

Conrad said it is a difficult question, because this is a private company. “The company has to take ownership of the running of Bay Ferries over the past few years”

She added the company has made it clear that even with injection of funds, they are still in serious trouble in the upcoming years.

Conrad said she would bring these concerns to the discussion to a meeting held on Dec. 23 on the issue, but still supports government rationales for this decision.

Not all councillors were on side with supporting the government bailing out the Bay Ferries though. Counc. John Croft said Bay Ferries is private company, and the government has put in approximately $20 million into ferry service in past four years already. “Their bottom line is like all tourist operators: Profit. If you don’t make the expected profit, you are going to lay off people and decided whether to provide the service at all.”

He still believes it is a critical service, but asked why Bay Ferries should beat door of the province and taxpayers when they get into trouble. “You’re calling upon the taxpayers to do some work to try and recover this and reinstate the ferry service as an investment.”

He wanted to find out more information about why Bay Ferries couldn’t make it work and how they handled the situation, before lending his support.

Afterwards, council made a motion to make strong representation to the government of Nova Scotia on how the CAT ferry is an essential service, and to restore funding to Bay Ferries.

The motion passed 7-2.

nmoase@theadvance.ca