Greyhound Canada's plan to suspend service to Manitoba and northwestern Ontario unless it gets government aid has drawn anger and suspicion from legislators in the affected regions.

On Thursday, Greyhound threatened to withdraw service for large areas of Canada unless it gets government subsidies to prop up unprofitable routes. (Nam Y. Huh/Associated Press)

On Thursday, the Canadian division of Texas-based Greyhound Lines Inc. announced passenger service in Manitoba will end Oct. 2 and routes in northwestern Ontario will stop operating Dec. 2 unless the company is granted a $15 million subsidy so it can break even on its unprofitable routes.

In Ottawa on Thursday, Federal Transport Minister John Baird was quick to rebuff the idea, calling the actions "heavy-handed" and a clear attempt to bully taxpayers. Regulatory issues for coach transport are a provincial issue, he noted.

A Greyhound senior vice-president expressed dismay at Baird's characterization of the company.

"It's a little disappointing with respect to being categorized as bullying, heavy-handed and (engaged) in a shakedown," Stuart Kendrick said Friday.

"It was disappointing because we met with the federal government [and] Minister [John] Baird several months ago. We were quite up front and open about our situation, about the regulatory structure — that it's broken and needs to be fixed. And we had some short-term solutions."

Manitoba government officials took a slightly more conciliatory tone than Baird.

Greyhound hasn't approached the government of Manitoba asking for help, acting Transportation Minister Stan Struthers said. But the province is willing to talk to the company, he said — even if those talks include money.

Calling the matter "an evolving issue," he said he thinks there can be a positive outcome.

Angry local reaction

Local legislators also reacted angrily to the ultimatum on Friday.

"[Nobody] has had access to their financial records," Mayor Tom Therien of Flin Flon, Man., told CBC News. "To me, this is just a cry to get federal funding, and they're using the citizens of Manitoba as pawns."

Just last month, the carrier was musing about shuttering an unprofitable route between Flin Flon and Thompson, Therien said. The company offered no hints of any widespread problems then, he suggested.

'This upsets the hell out of me'—Snow Lake Mayor Garry Zamzow

"Now they're cutting the whole service to Manitoba. It doesn't make any sense to me."

Manitoba NDP MP Niki Ashton also questioned the suddenness of the move.

Greyhound recently signed a 40-year lease on a brand new bus terminal by Winnipeg International Airport. Those aren't the actions of a company that had long-term reservations about doing business in the province, she suggested to CBC News.

"There's a number of factors that cause us to question [this decision.]"

When Greyhound recently talked about cancelling certain routes, "we had hearings, and it was evident that Greyhound was making no attempt to present a proposal that would work in the area," she said.

"We hear that they've gone to government, but I'm not sure what proposals they've brought forward."

She also questioned the thinking that lines running below full capacity somehow signal there is no use for them.

"The big buses don't get filled, but that doesn't mean that people don't need that bus line," she said.

"I need it for my own work. I represent one of the largest constituencies in Canada."

Snow Lake Mayor Garry Zamzow was furious with the company's decision.

"This upsets the hell out me, and I'm sure most of the Snow Lakers and a lot of northern Manitobans," he said.

With files from The Canadian Press