Nova Star financials must justify Nova Scotia subsidies, says minister
Expected financial documents must be 'updated and audited' says transportation minister
Nova Scotia's transportation minister says the province is waiting on financial documents from Nova Star officials that must prove the ferry's business plan is working.
Geoff MacLellan said the ferry's disappointing numbers at the height of the tourism season are causing the government to hold back subsidy payments until financial statements are released.
The government remains cautiously optimistic, he said.
"We're still waiting on very important financial documentation to be received, that's updated and audited," MacLellan told CBC's Information Morning.
"But I think that there's a viable market there. I think the growth is going to happen, and I think we've seen that."
MacLellan echoed the Premier's stance about supporting a link between Nova Scotia and Maine. But he said Nova Star officials must provide financial records soon.
"It's still the vessel that operates the Nova Scotia ferry service, and they're in play at this point. They're going to have a busy couple of weeks pulling all this information together."
One year and counting
So far this year Nova Star has received $8.1 million of a possible $13 million subsidy.
By mid-August 2016, MacLellan said the Nova Star must prove financial viability or a decision to switch ferry operators will be made.
"At this point, one of the many things I've learned about this industry is that you really need almost a 12-month lead time in the marketing and the preparation," he said.
"So if there's going to be a change in direction, or if it's the Nova Star staying in place, we have to give a signal to that potential operator so that they can begin to put the bones together."
For now, MacLellan said stability is the priority. The financial statements must prove to the government that enough Nova Scotians — and Americans — are using the service to justify continued subsidies.
"But at the end of the day, if we're stagnant year over year, then we're just not doing enough to provide that revenue that covers the Nova Star costs."