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The Canadian government recently extended its $2.5 million funding agreement with the Ontario Northland Transportation Commission (ONTC) another year. Expiring March 31, 2007, the pact enables ONTC to provide passenger-rail service between Toronto and North Bay.

For the past decade, Transport Canada has provided funding for ONTC’s 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.