Tension rises as deadline looms

A rally is being held in support of passenger rail service to Hearst as the deadline to save it approaches.

“As we get closer to the March 31 deadline, the tension rises,” said Tom Dodds, CEO of Sault Ste. Marie Economic Development Corporation and member of the working group.

An event will be hosted by the Coalition for Algoma Passenger Trains (CAPT) at the Machine Shop at Mill Square on Friday night.

Part rally and part expo, organizers hope the event will be one more push to the government to accept a draft agreement between CN and a third-party operator who seeks to take over passenger service.

“There will be a real opportunity for people to see all of the businesses (who depend on the rail service), this is a good opportunity for people to find out about that,” said Linda Savory-Gordon, co-chair of CAPT.

"Time is running out, but I'm pushing very hard, and this has been elevated to the level of the prime minister,” MP Bryan Hayes said Wednesday, while at an event with the Sault Ste. Marie Chamber of Commerce.

“I haven’t had a direct conversation with the prime minister on this. I have had direct conversations with members of the Prime Minister’s Office (PMO), who report to the prime minister.”

The federal government had been subsidizing the Algoma Central Railway’s Sault Ste. Marie to Hearst passenger service to the tune of $2.2 million per year.

With an estimated 5,500 passengers a year, the subsidy currently costs taxpayers $400 per person.

“The subsidy per passenger that the taxpayers are paying is extremely high,” said Hayes.

Although the subsidy was cancelled late in 2013, Transportation Minister Lisa Raitt announced a one-time extension which expires later this month.

Hayes said the Minister of Transportation was not interested in extending the subsidy past one year when she visited the Sault last spring.

“Our hope as the federal government was the private sector, working with CN would have come up with a solution that would not require federal money,” said Hayes.

In December, the ACR Passenger Service Stakeholders Working Group presented a proposal to Transport Canada for a $7-million subsidy over five years, as well as asking for approval of a draft agreement between CN and a third-party operator who is interested in operating the passenger service.

The identity of the third-party operator remains shrouded in non-disclosure agreements between the working group and CN.

Hayes said he recognizes there is a significant economic benefit to maintaining the service.

“This is a balancing act. I believe a $7-million request over five years is reasonable, and I say that not having seen the agreement that has been worked out between CN and the third-party operator,” he said.

He said this is a decision that can’t be rushed.

“I understand the position of the economics and those that are directly affected. I think they understand the government in terms of their respect for taxpayers,” he said.

Dodds said Transport Canada officials have been in contact to ask followup questions to the working group.

“I think it’s a good thing they (Transport Canada) are asking us questions, as opposed to not asking at all. But I don’t know what the outcome will be,” said Dodds.

Hayes said Transport Canada is doing their due diligence in asking questions to ensure taxpayer concerns are represented.