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Money is still there for train service

Sault MP Bryan Hayes has responded to a news release from Algoma-Manitoulin-Kapuskasing MP Carol Hughes which blames the latest Sault to Hearst passenger rail woes on the Conservative government's original decision (announced in early 2014) to en

Sault MP Bryan Hayes has responded to a news release from Algoma-Manitoulin-Kapuskasing MP Carol Hughes which blames the latest Sault to Hearst passenger rail woes on the Conservative government's original decision (announced in early 2014) to end annual subsidy money to CN to operate the service.

It was announced Thursday by CN and the ACR regional stakeholder passenger service working group the train will stop running July 15 because of rail operator Railmark's failure to secure a line of credit for its operations.

"Opposition parties, especially the NDP, do a wonderful job of doing the blame game," Hayes said Friday, speaking to SooToday.

"It was CN that chose to stop the service (in 2014), not the government."

After that, Hayes said, Transport Canada officials cut the funding ($2.2 million in annual government funding for the passenger service).

"When funding was cut, it was me who lobbied the government and said 'you don't understand the implications'…a recommendation was made by the bureaucracy, which tends to happen, and the government accepted the recommendations without understanding the full implications and that's when I stepped in and started lobbying."

"We extended the funding for one year and on top of that, we extended it, through  my efforts, for another three years ($5.3 million) so we could find an operator."

"Even with the service stopping next Wednesday, that doesn't mean that it's stopped permanently, the funding is still there." 

"The government is still very much at the table and we'll work with the stakeholder group and CN to find another third party operator."

Hayes also shot back at Hughes for stating, in her press release, the Conservatives "spend billions on tax breaks for wealthy Canadians" at the expense of items such as passenger rail service subsidies.

"Since we formed government there have been 160 tax breaks resulting in the personal tax rate for Canadians being at its lowest rate in 50 years," Hayes said.

"The average family of four has over $6,000 more in their pockets now than they had before we formed government, and we're not talking wealthy Canadians, we're talking about the average Canadian family of four."

Meanwhile, Sault EDC CEO Tom Dodds, who also serves as ACR regional stakeholder passenger service working group interim chair, told SooToday he is discouraged Railmark was not able to meet its financial requirements, but is also encouraged federal funding is still in place for another third party rail operator wishing to run the Sault to Hearst service. 

"Because the money is in place, other companies that did not come forward before are coming forward and expressing interest to us about running the railway."

The companies are from both Canada and the U.S., Dodds said.

"One of the things we're going to be very careful of, having had this experience recently (with Railmark), is that the due diligence process will be very thorough."

Dodds said the process will have to be both very thorough and quick, as the service ends July 15.

Part of the process, Dodds said, will be to ask CN if it would be willing to operate the service on a short-term, interim basis.

"We have been told verbally by CN they will not do that but we will be writing to them and asking them publicly if they would be willing to do that on an interim, short-term basis until we find an operator."

"We will move as fast as we can," Dodds said.

"All of us, and I'm including CN, Transport Canada and ourselves, were led to believe the financing was in place or was going to be in place at the time he (Railmark president and CEO B. Allen Brown) was going to proceed with the Agawa Canyon Tour Train and the passenger train," Dodds said, commenting on Railmark's financial situation.

"He provided references to individuals to that effect but in April or May CN advised us they had not been able to conclude their negotiations on the Tour Train and in this time frame Mr. Brown wasn't able to demonstrate he had the line of credit but we were under the impression he had that money available."

"The government was responsible for ensuring that he (Brown) was qualified to run a railway and based on his qualifications he was given a certificate of operation by the government, and we based the funding on his business case, but ultimately it was CN that chose Railmark," Hayes said.

When contacted by SooToday Friday, Brown would not comment on the situation.

Meanwhile, Dodds said "I don't want people to get the passenger train and the Agawa Canyon Tour Train confused."

"The Tour Train is operating full blast and is continuing with the daily service." 

CN will continue to operate the Agawa Canyon Tour Train daily for the season ending Oct. 12, 2015.

The tour train takes passengers on a one-day wilderness excursion 114 miles north of Sault Ste. Marie. 


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Darren Taylor

About the Author: Darren Taylor

Darren Taylor is a news reporter and photographer in Sault Ste Marie. He regularly covers community events, political announcements and numerous board meetings. With a background in broadcast journalism, Darren has worked in the media since 1996.
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