A dredged Sydney harbour would allow giant cargo ships too big for most other North American ports.

Nova Scotia's premier is putting pressure on the federal government to decide whether it will provide funding to dredge Sydney harbour.

The Cape Breton Regional Municipality has already agreed to contribute $2 million, but the Nova Scotia government has not yet committed any funds.

Premier Darrell Dexter has repeatedly said he is waiting to hear from Ottawa, since Sydney harbour is a federal responsibility.

Transport Canada told CBC News the federal government is in discussions with the province, but Dexter denies that.

"We continue to say and are ready to be part of any project with respect to dredging if they decide to lead, but that is a federal project and we've heard nothing more from them on it," Dexter said.

The proposed dredging project would deepen Sydney's harbour and allow it to accept giant cargo ships, allowing the city to position itself as a world-class shipping depot.

Over the last few weeks, several deadlines for coming up with the $38 million needed for the project have come and gone. The latest deadline was Friday.

Sydney Marine Group, which is in charge of the proposed project, said the deadlines are necessary because the dredging company needs to know whether the work will proceed this season.

In the House of Commons on Friday, a local member of Parliament joined the call for the federal government to fund the project.

"Will the prime minister commit his government to funding the dredging of Sydney harbour so the community has an opportunity to grow and prosper," said Mark Eyking, MP for Sydney-Victoria.

Eyking pointed a finger at Peter MacKay, the senior federal minister for the Atlantic Region,

"This minister who is responsible for Nova Scotia doesn't come across the causeway enough," Eyking said. "He should be there today announcing this much-needed money."

MacKay responded by saying the government has invested millions of dollars in Cape Breton.

Representatives from Sydney Marine Group said the dredging contractor will soon let them know how much longer it can wait.