Nova Star Cruises to run ferry for rest of season, 2016 decision delayed

Nova Star Cruises will continue to operate the ferry service between Yarmouth and Maine until the end of the 2015 season, but the province has delayed its decision about who will run the service next year.

In late April, Transportation Minister Geoff MacLellan said the government was considering other operators for the 2016 season.

He later said a decision about the 2016 season would be made this week.

"Nova Star will finish out the about eight weeks left in the season. At the same time, we are considering our options for 2016. We've had expressions of interest from three potential service providers. Discussions with them, along with Nova Star, are ongoing," said MacLellan in a release.

"I had hoped to announce an operator for 2016 this week, however, I've decided to take more time to make sure we get this right for Nova Scotians for the long term."

Nova Star not ruled out

MacLellan said there are a number of things to consider.

"We've allocated a significant amount of investment in Nova Star. They are in the conversation," he said.

"At this point we couldn't rule [Nova Star] out and say they're not a part of that conversation but look, we've been very open with respect to our feelings about their processes, their reporting and their overall performance based on the expectations that were set by Nova Star with the 80,000 passengers and the financial stability that was supposed to come.

"So we'll certainly give them their opportunity to make a presentation about what they see for the future. But we certainly haven't made a decision and we are engaged in specific conversations with those other operators."

MacLellan said a decision about which company will operate the service likely won't take place until Nova Star's season ends Oct. 14.

On Aug. 6, MacLellan said Nova Star Cruises would need to submit supporting financial documentation to get more payments of public money.

"Nova Star Cruises submitted 2014 financial information as requested. I continue to be disheartened with how difficult it is to get information from the operators to support disbursing public money. This is unacceptable," he wrote.

"The operator has to be fully accountable when using public funds. Until we review the remaining financial data we just received for the 2015 season, we will not be issuing any further money."

MacLellan said Nova Star has now submitted all the required financial documents. 

The Nova Scotia government is providing $13 million in funding this year to subsidize the ferry. It spent $28.5 million last season.