Greyhound stays on road

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Nahum Mann (left) and Raylee Hiscock-Shaw are relieved Greyhound has backed down from its threat to halt Manitoba travel on Oct. 2. (BORIS.MINKEVICH@FREEPRESS.MB.CA)

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Greyhound officials David Leach (left) and Stuart Kendrick speak to reporters. (MIKE.DEAL@FREEPRESS.MB.CA)

Greyhound buses will continue to roll in Manitoba -- for now -- after the firm reversed its plan to issue layoff notices to 200 Manitoba employees this week.

Upbeat talks between the company and the provincial government on Wednesday ended with an apparent breakthrough that had Greyhound abandon the threat to halt service in Manitoba on Oct. 2.

Stuart Kendrick, senior vice-president of Greyhound Canada, said he and Transportation Minister Ron Lemieux had "very positive discussions on short-term solutions."

But Kendrick warned that if a solution to the bus company's money-losing woes is not found by the end of October, it may yet withdraw its services.

"We'll have to make a tough business decision," he told reporters, adding the company has not set a formal deadline.

"There are a number of different options, which I'd like to share with you, but we've got a lot of meetings to do," he said.

Folks at the Greyhound bus depot Wednesday evening were relieved, to say the least.

"I'm extremely glad. I think it's a vital service," said Metro Danyluk, who was waiting for his brother to arrive from Dauphin.

Raylee Hiscock-Shaw, fresh off a 40-hour bus ride from Toronto and waiting for the next fare to Thompson, said today's news means she won't have to worry about making alternate travel plans for her thrice-annual family visits.

"This is good because otherwise I'd have to take Via Rail or maybe Calm Air," said the 19-year-old university student, adding she has Manitoba relatives who would suffer from a Greyhound pullout. "My stepdad's mom, who's from a northern reserve near Wabowden, has to go to Thompson twice a month and she's really old and really sick."

Kenora resident Joanne Loessin takes the Greyhound into Winnipeg three times a month for medical treatment.

"I take the 5 a.m. bus in and have to stay all day and go home on the 10 p.m. bus, all for a half-hour appointment," she said. "It's a long day, but I'm really glad to hear the bus will still be running. Otherwise, I don't know how I'd get here unless I could find a ride."

Kendrick recently met with provincial officials in Alberta and British Columbia, and he said he believes the problems his industry face require a national solution.

"We provided the Manitoba government here with a lot of detail on our finances. They've looked at it and I think they understand now, on a bigger scope, just exactly what this means, what it means to rural Canada and what it means to Manitoba," he said.

Lemieux said the two sides agreed to keep working on short-term and long-term solutions. He said the province made no financial commitments to Greyhound.

"We didn't promise anything," he said. "Our discussions were very frank and open with each other but there were no promises other than a promise to work diligently with, certainly, other provinces and the federal government to look at some real solutions...."

Both the company and the province said an Oct. 22 meeting of federal-provincial transport ministers will be crucial to arriving at any future deal.

Earlier Thursday, David Leach, Dallas-based president of Greyhound, said the company is still after a $15-million subsidy to cover its losses in Manitoba but it's flexible in how it might be made up.

"It's not just cash, it's about sustainability. It could also include reduced miles and frequency (of less popular routes) and lower fuel and capital taxes," he said.

"Manitoba is the only place where we've received no support. The other provinces (Saskatchewan, Alberta and British Columbia) have agreed to work with us on finding a solution."

The Highway Traffic Act dictates that Greyhound must provide service to far-off outposts in order to operate in more densely populated areas. Leach said Greyhound's shareholders have grown tired of the freight side of its business continually subsidizing the passenger side, a situation that has worsened over the last 15 years.

Its best year was 2006 when it posted a $15.9-million profit. But the company had to spend $25 million -- as it does every year -- to buy 50 new buses, part of an annual replacement of roughly 10 per cent of its fleet.

Leach said Greyhound is only asking for is a level playing field with competitors such as Via Rail. He said Via receives operating and capital subsidies every year.

-- with files from Bruce Owen, Carolin Vesely

larry.kusch@freepress.mb.ca

Republished from the Winnipeg Free Press print edition September 17, 2009 A4