I get what you are saying but I agree with the 'fantasy' comments of the others. In this context, there are actual fantasy threads on this site, where members draw lines on maps on what they would like to see or, according to them, should happen. I think Paul's "empty promise" angle is apt. One wonders why we believe anything a politician says, particularly during an election, but in the Northlander case, at least there has been follow through - so far.
It's all about 'votes'. Whether the north is a bigger target I don't know. There are more votes to buy in the south, but it is not immune.
The government department I retired from had about $50Mn pulled from its roughly 1Bn allocation and, according to the Minister of the day, could easily be absorbed but going a couple of fleet oil changes longer. Who knew it would be that simple!
NorOntair was a wonderful service; planes to every small community across all of the north. And an astonishing money pit. Subsidizing passenger rail can't hold a candle to what it cost the government to run that service. An aircraft and all of its operating and capital costs to fly into places like Manitouwadge on a regular basis to pick up maybe on passenger wasn't sustainable.
With Ontera, they originally wanted to sell the entire ONTC program. They had to save face and sell something rather than completely back down. I don't argue that perhaps the government shouldn't be running a public telecom service. My main beef was they essentially gave it away and demanded no performance conditions from the buyer. Service has been retracted from several areas since the sale.