THREE local authorities have rejected a plea to pump more money into the Hythe Ferry to help keep the "much-needed" transport link afloat.
But the current owner of the popular Hythe to Southampton passenger service, Blue Funnel, says talks aimed at saving it are "going well".
As reported in the Daily Echo, the service was due to stop running on New Year's Eve after becoming financially unviable.
However, the proposed shutdown was suspended after Blue Funnel was approached by a potential new operator.
Hythe councillor Malcolm Wade urged Southampton City Council, Hampshire County Council and New Forest District Council to think again over their refusal to give the service extra bail-outs.
He said the possibility of more grant aid could increase the chances of the talks succeeding - but his plea has fallen on deaf ears.
READ MORE: Hythe Ferry to continue operating as talks with potential new owner get under way
The leader of the county council, Cllr Rob Humby, has replied to Cllr Wade on behalf of all three authorities.
His letter says: "We are not unmoved by the plight of the ferry. However, we are simply not in a financial position to support this commercial service going forward.
"Our understanding is that it would be a significant sum on an ongoing basis.
"The harsh reality is that the pressures have been made much worse by changes in travel following the pandemic and a rapid rise in operating costs.
"This has fundamentally changed the nature of commercial operations and means the service, as was, is no longer viable.
"Given the challenging financial climate, the increasing demands on our statutory services, and the lack of substantial Government intervention to assist, our ability to support requests such as this is extremely limited.
"We are all willing to work with any incoming operator or new innovator and do what we can to make any future operation a success."
Posting on social media Cllr Wade's son, Cllr Alex Wade, welcomed the interest shown by a potential new operator.
He said: "The response to the ferry's recent announcement suggest there is much love and support out there for our ferry.
"We don't want to lose this much-needed and important part of our heritage."
READ MORE: Hythe Ferry: Councils urged to offer more bail-outs
Speaking after the earlier announcement the ferry would close on New Year's Eve he said: "This was a difficult decision for (the team) but they have kept the ferry running in very challenging circumstances.
"It's heartbreaking to hear the news."
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