PORTLAND, Maine — Nova Scotia’s top tourism official expects a decision this week on whether to continue offering some form of subsidy to the Maine-based operator of a ferry between Portland and Yarmouth, Nova Scotia.
Geoff MacLellan, the province’s tourism minister, said earlier this month that provincial officials planned to announce a decision this week on continuing government assistance for Nova Star Cruises, after the regularly scheduled reporting of passenger totals for July.
The decision comes as at least three other companies have approached the province with proposals for operating the ferry service with some form of subsidy, according to MacLellan.
The service has so far received $8.1 million (Canadian) of a $13 million subsidy from the province to operate this season, on the condition that it provides detailed monthly financial statements.
MacLellan said the company has not provided those statements since May 31 but has since requested $2.5 million more from the province, which has been denied. The province provided the company $28.5 million in subsidies last year, its first season.
The company on Monday issued a monthly report of its spending in the province, stating that this year, through July 31, it had spent more than $1.7 million with Nova Scotia suppliers.
This season, Nova Star Cruises said it had 28 percent more passengers from the United States and 27 percent fewer passengers from Canada.
The province has not yet solicited proposals but said that if it did seek to switch operators, it would pick the firms to pitch their plans, rather than issuing a general request for proposals, according to MacLellan.
He told The Canadian Press on Sunday that the province would provide an update this week. The news service reported the province recently conducted a survey of sentiment about the subsidies to restart the ferry service, finding respondents split about 50-50 on whether they favored using government funds for the restart.
Bookings for the Nova Star have been higher in the ship’s second sailing season, but MacLellan said they are not on track to meet goals set out at the start of the season, which were the basis for this season’s budget for the luxury ferry service.