The CBC is reporting that the subsidies for the CB&CNS are due to end next March. The company is urging that the province renew their agreement to supply up to $2 million per year to cover operations and maintenance costs on the line between Port Hawkesbury and Sydney (the former CN Sydney subdivision).
Obviously as a railfan I am in favour of this subsidy. But hear me out. All across Canada, communities are kicking themselves for allowing rail lines to be removed. With high fuel costs, congested roads, and the advent of the green movement, we need every inch of rail we have now. Allowing the CB&CNS to fail will lead to the removal of the rail line and any future potential for Sydney.
You can argue that government should not subsidize private industry. It's nothing new. Look at, oh, the Irving tax deal the City of Saint John negotiated with Irving Oil. They gave a 25 year tax break to the new LNG terminal. If that isn't a subsidy, I don't know what is.
Bottom line, the government of Nova Scotia must continue the subsidy to the Cape Breton & Central Nova Scotia Railway to preserve the future of Cape Breton's industries.