A deal has been struck to keep the Saint John, New Brunswick-Digby, Nova Scotia, ferry operating — at least for the next two years. Bay Ferries Ltd. of Charlottetown, P.E.I., announced in late summer that it would halt service on Oct. 31. President and CEO Mark MacDonald said at the time that “increased costs and declining traffic” had brought about the closing.

The deal includes a commitment of $4 million from the federal government and $2 million each from the governments of New Brunswick and Nova Scotia.

Federal Foreign Minister Peter MacKay, who also has the Atlantic Canada Opportunity Agency portfolio and whose riding (parliamentary district) is in Nova Scotia, said on Nov. 1, “Canada’s new government has reached an agreement in principle with Bay Ferries Limited to keep the Digby-Saint John ferry operating for the next two years. We are investing $4 million to help the company make repairs and upgrades to the ferry and to the terminals in both Digby and Saint John.”

MacKay continued, “This investment is a key component in ensuring that the communities and businesses in Southwestern New Brunswick and Nova Scotia will continue to benefit from this vital transportation link over the next two years. During these two years, stakeholders, including all three levels of government, will focus their energies and skills on identifying a viable long-term solution for this service.”

He added, “Today’s announcement reflects the commitment of all of the stakeholders, and of the affected communities. Furthermore, this announcement reflects the efforts of all three levels of government working together to understand, promote and secure community interests. And it reflects the strong leadership of the company that will continue to operate this service in an efficient manner, Bay Ferries Limited.”

MacKay concluded, “Together, we have reached a short-term solution which provides us all with a window to the future. This two-year period is critical to charting our success and today we are making a very positive start.”

The year-round service employs 100 workers and has provided transportation for Nova Scotia businesses for more than 50 years, chief among them the fish packing industry. It also provides transportation for American tourists who don’t want to the expense of taking The Cat to Nova Scotia, either from Bar Harbor or Portland.