N.S. Tories fear Cape Breton rail line could vanish

Nova Scotias Progressive Conservatives say they're worried about the future of Cape Bretons railway.

Cape Breton North MLA Cecil Clarke questionsthe NDP government's commitmentand hes calling on itto maintain a subsidy that helps keep the railway in operation.

The rail line, which links Port Hawkesbury to Sydney, is owned by Jacksonville, Fla.-based RailAmerica Inc.

The company receives $2 million a year to keep the line afloat, but that subsidy agreement expires in the new year.

The subsidy was negotiated after the company said it was prepared to shut down the stretch of rail line, citing a lack of business.

To help save the line, the former Tory government negotiated the subsidy. RailAmerica has said it will be looking to extend the arrangement.

In jeopardy?

But Clarke says the government's recent decision to cut funding to the Yarmouth ferry has him worried the railway subsidy could also be in jeopardy.

"Its not just a Cape Breton issue, it's about building the strength of our transportation infrastructure and our economic corridors in the province," he said.

"And because of what we've seen with regard to transportation investments by the government, we are very concerned they may be just getting out of this business which would be very detrimental."

Clarke says his party wants to make the rail issue a priority as the government deals with its budget challenges this spring.

Deputy Premier Frank Corbett says the government understands the importance of the rail link to Cape Bretons economy. He said the government will judge the railway subsidy on its economic merits.

Corbett said the province has yet to meet with railway officials. A spokesman for RailAmerica could not be reached.