Above watch: The province is sending a strong message to Nova Star Cruises: shape up or we will find another operator to run a ferry between Yarmouth and Maine. Julia Wong reports.
HALIFAX – The province has delivered an ultimatum to Nova Star Cruises: hit your financial targets this year or a new operator will be used.
Transportation Minister Geoff MacLellan said the government is using an alternate procurement process to seek out other operators, from across the province and around the world, to run the route from Yarmouth to Maine.
“Look, it’s time to get this service right once and for all,” he said.
MacLellan said the government favours the process over a request for proposals because it is quicker and provides greater flexibility, should a replacement operator be needed for 2016.
He said alternate procurement allows the government to go directly to ferry operators and ask them how they would deliver the service, a process he said is a good fit given past experiences with requests for proposals for the ferry service.
“For us, this is about getting the right service, understanding the model, what’s required for operations, vessel marketing and all those pieces. We’ve got to get this right and we’ve got to figure it out in a hurry,” he said.
“At the end of the day, we need stability.”
MacLellan said the alternate procurement would begin immediately because the government is committed to having a ferry service in place in 2016.
In February, the Liberal government said it was planning to issue a request for proposals for next year, regardless of the outcome of this year’s sailing season.
The province spent $28.5 million to subsidize the inaugural season last year, which included a $21 million loan that was supposed to last seven years. The loan was spent in the first two months of operation.
MacLellan also said Thursday that the government has given Nova Star $6.1 million of the $13 million allotted for the upcoming sailing season, which begins June 1.
“We’re committed to the service. We’re committed to the taxpayers of Nova Scotia that we identify the best possible structure,” he said.
Opposition Progressive Conservative Leader Jamie Baillie said the move to switch procurement methods shows the government hasn’t learned from past concerns about the lack of transparency over public funding for the ferry service.
“I think it’s time the Liberals acted in a more open and transparent manner about what it is they have planned for the long-term service of the Yarmouth ferry,” said Baillie.
Mark Amundsen, the president of Nova Star Cruises, tells Global News said that bookings are up from last year and the company is optimistic about this sailing season.
“[The Nova Scotia government] wants to see performance and we expect to perform well. I think we offer a first-class service. We have the best package in the long-term,” he said.
Amundsen has said repeatedly in previous interviews that a disruption in service for five years is the reason ridership is down. He continues to plead for patience and brushed aside questions about nervousness over the ultimatum as well as specific inquiries as to how it will be competitive and viable.
“We’re very grateful to the people of Nova Scotia and the government for supporting this. It’s an important program. We expect to perform well this year.”
The government has promised more oversight for the service and now requires monthly reporting of passenger numbers and full access to the ferry’s books. Funding is being provided to Nova Star each month and only after the company submits its expenses for review.
Nova Star Cruises has set a goal of 80,000 passengers for this year. There is no timeline on the alternate procurement process.
– with files from Canadian Press
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