Province agrees to subsidize some operational costs to maintain Cape Breton rail
By Nancy King | Cape Breton Post | 1 September 2017
SYDNEY, N.S. — The province has reached an agreement with the Cape Breton and Central Nova Scotia Railway Ltd. that will see the Cape Breton portion of the railway preserved for a period in exchange for the province reimbursing operational expenses.But while the year-long agreement was announced Friday, it was back-dated to March, Minister of Business Geoff MacLellan said in an interview. The deal may be renewed with the approval of Treasury Board.“It’s incumbent on me, and we’ve asked for this, that I go back to Treasury Board to explain the relationship, to explain the details of the investment, to explain the total expenditures that have been made,” MacLellan said, adding they didn’t want to start with a two- or three-year dealUnder the preservation agreement, the existing rail line between St. Peter's Junction, near Port Hawkesbury, and Sydney will be maintained. The company agreed to not apply to abandon the line and the province will reimburse what it described in a news release as valid expenses up to $60,000 a month.
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