HALIFAX — Nova Scotia's transportation minister says the province does not owe $2 million to the former operator of the ferry between Yarmouth and Portland, Maine.
Geoff MacLellan was responding to Nova Star Cruises president Mark Amundsen who says the company is contractually owed the money, which was used to post a bond to satisfy U.S. regulations requiring a guarantee to refund ticket sales if necessary.
MacLellan says the $2 million, which was part of the initial $21 million fund used by the ferry in its inaugural 2014 sailing season, was returned to the province in July.
He says it was only meant to help the company get to the point where it could set up its own escrow account to cover the U.S. requirement.
MacLellan says the province has no legal obligation to give the company the money and it won't be returning the funds.
In a statement, Amundsen says the company owes about $200,000 to vendors and suppliers in Nova Scotia, and the outstanding amount could be used to pay those bills and others in the U.S.
The Canadian Press