Nova Star spent $30.2M in first year
A government audit has found that Nova Scotia’s provincial government paid for about 70% of Nova Star Cruises’ operational costs from its launch through Sept. 30, 2014.
The Bangor Daily News reported that the ferry service, which provides trips between Portland and Yarmouth, Nova Scotia, spent about $30.2 million (Canadian) in its first season, with about $21 million of that coming from government subsidies. The audit did not include an additional $7.5 million in subsidies that had been received, $2.5 million of which was used to fund the ferry’s birthing in South Carolina.
The audit, which was conducted to determine if Nova Star had used the subsidies for their intended purposes, found that there were $79,265 in transactions that had no supporting documentation out of the $25.4 million in reviewed transactions. However, Nova Scotia Economic Development Minister Michel Samson said the results are not cause for concern.
The Canadian province said it is still negotiating a contract with Nova Star for the 2015 season and that no other ferry provider would be considered.
Nova Star’s $21 million in Canadian subsidies was originally supposed to be spent over a seven-year period. A Nova Scotia official previously blamed the ferry’s lower-than-expected passenger revenues for the accelerated spending.
Maine has yet to commit any funding to Nova Star, but Gov. Paul LePage has previously said that he was crafting legislation to provide the ferry service a $5 million line of credit.
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