P.E.I. ferry funding partly restored

Northumberland Ferries and Transport Canada signed a new subsidy agreement Tuesday that will allow the company to maintain the existing level of ferry service between Caribou, N.S., and Wood Islands, P.E.I.

Earlier in March, Transport Canada announced it would cut funding from $6 million a year to $4.7 million, effectively ending the season in October, and scaling back service from two boats to one in 2008.

Under the new agreement, Transport Canada will provide Northumberland Ferries with $5 million this year, $5.1 million in 2006-2007, and $5.2 million in each subsequent year.

Lawrence MacAulay, Liberal MP for the federal riding of Cardigan, said service is now expected to remain the same, with two ferries and a May to December season.

While there is less cash in this agreement, it includes services not included in the last one. For the next five years, Transport Canada will pay for wharf repairs, dry-docking and dredging.

"I am pleased that after some tough negotiations, this new financial agreement could be reached," said MacAulay in a news release.

"The Government of Canada recognizes the distinct and important role the Wood Islands-Caribou ferry service provides to the communities it serves and to tourism in both Nova Scotia and Prince Edward Island."

Transport Canada officials and Northumberland Ferries representatives will finalize the details of this five-year agreement by the end of the month.

Northumberland Ferries has been operating the ferry service between Wood Islands, P.E.I. and Caribou, N.S., since 1941.