Ottawa gives Confederation Bridge operator $2.87M to cover COVID-19 losses

The federal government is investing $2.87 million to help the current operator of the Confederation Bridge recoup some of the losses it absorbed due to the COVID-19 pandemic.

While the flow of vehicles crossing the bridge has recently jumped after provincial travel restrictions were eased, the numbers are still far from pre-pandemic levels. Two-axle traffic in July was still down 45 per cent from the same period in 2019.

"This was a completely unforeseen circumstance in terms of loss in revenue, where governments themselves asked people not to travel and that's what this payment is for," Malpeque MP Wayne Easter said at the deal's announcement Thursday.

Commercial traffic has proved to be very resilient, however. July numbers for trucks were actually up one per cent compared to two years ago.

No toll increases

Strait Crossing Bridge Limited has an agreement to operate the bridge, which is federally owned, until 2032. 

Under the deal, the company is only allowed to increase its tolls once a year on Jan. 1. The raise can't be over 75 per cent of inflation.

But the company can raise these levies further in the event of a massive shortfall, such as the one the bridge incurred due to the pandemic. 

Ottawa said that as a result of this funding, Strait Crossing won't seek to increase tolls. The money the government is providing fully covers the bridge's revenue loss for last year.

"The government of Canada is taking the position of the user of the bridge and actually paying the toll shortfall as opposed to users every day taking the bridge paying for it," Strait Crossing general manager Michel Le Chasseur said. "So this is great news for all users of the Confederation Bridge."

Le Chasseur said he expects it will take three to four years before traffic fully recovers, but that things are headed "in the right direction."

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