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Yesterday, the Canadian government extended a $2.5 million funding agreement with the Ontario Northland Transportation Commission (ONTC) to continue passenger-rail service between Ontario and North Bay. The agreement expires March 31, 2006.

For the past nine years, Transport Canada has provided funding for ONTC passenger-rail operations. Until 1996, the former National Transportation Agency (now the Canadian Transportation Agency) subsidized the Toronto-to-North Bay service. Transport Canada began providing funds when the Canada Transportation Act precluded the agency from subsidizing the system.