KPMG Ferry Reports Released

Government has released financial details today, Jan. 18, contained in KPMG reports on start-up and operating costs for the Yarmouth ferry.

Government hired KPMG to review Nova Star’s start-up and operating costs up to Sept. 30, 2014. The reports confirmed the $21 million provided by taxpayers was spent as intended.

Details of the expenditures were not included in hard copies of the reports released Jan. 15. Because of a technical error, one media outlet was able to find and report the financial details from electronic versions. Nova Star has agreed the financial details can be released to ensure they are properly understood.

In summary, the reports show:
— all startup costs, and 99.7 per cent of the operating costs reviewed, were supported by appropriate documentation
— the reports list $10,564,801 in start-up costs and $30,157,953 in operating costs. Operational costs also included the $10.5 million in start-up costs, for total of just over $30 million in expenditures to Sept. 30, 2014
— government, as of Sept. 30, contributed $21 million toward those costs

The report can be found at www.novascotia.ca/econ/yarmouth-ferry-update.asp .

Since Sept. 30, government provided an additional $5 million to Nova Star in October. As negotiations continue for the 2015 plan and funding agreement, government has provided $2.5 million to Nova Star to cover costs, including berthing fees, fuel, staffing and moving the ship to South Carolina. This brings government’s total investment in the Yarmouth ferry to $28.5 million.

Discussions continue with Nova Star and STM on a plan and agreement that will reduce costs for the 2015 season.

Source: Release