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Fair federal subsidy could ‘fix’ ferry link

Editorial

 

While the provincial government is marking time with its fixed link study pre-consultations, there is a boatload of money for BC Ferries that is just waiting to be hauled in. And doing so could mean significantly reduced ferry fares, if the political will exists.

The federal subsidy for BC Ferries is perhaps the most glaring example of inequity in Canada’s transportation system. As reported last year, a Union of British Columbia Municipalities study found that federal funding for East Coast ferries worked out to $493 per passenger compared to $1.41 per passenger for BC Ferries. That’s 350 times more support from Ottawa for Atlantic versus Pacific ferries. Previous federal governments have fallen back on the shallow excuse that Atlantic subsidies are a constitutional requirement, but it appears the Trudeau government is rethinking that position.

In an interview this week, MP Pamela Goldsmith-Jones called the funding difference a “gross disparity” and said the agreements it was based on were “ancient history.” Goldsmith-Jones said the Pacific caucus (B.C. MPs) worked hard to ensure this year’s federal budget included provisions to waive the 25 per cent tariff on ferries imported after Oct. 1, 2015 and to include passenger ferry infrastructure as eligible for the Build Canada Fund. At the same time, she said, “It is important to address the disparity in operating cost contributions by the federal government, between Atlantic Canada and British Columbia, which I raise often.”

The B.C. government, contacted last month by email, told us it was pleased with Ottawa’s two budget announcements, noting the removal of import duties will reduce BC Ferries’ cost for the three new Salish-Class vessels by $46 million.

The province said it has been “actively engaging” the federal government to secure additional funding for B.C.’s coastal ferry service. “This has been a priority for the Minister of Transportation and Infrastructure, who has raised several strategies for increased funding support with his federal colleagues.” One of those strategies, the province said, is for the federal government to increase the annual subsidy to bring it more in line with our Atlantic counterparts.

Which all sounds good, but there were two questions the province did not answer.

One, it did not provide comparative data of its own to make B.C.’s case for increased federal contributions, though we asked for those numbers twice. That suggests the province is not exactly fired up over the issue – otherwise, it would be shouting those numbers from the rooftops.

Two, and even more unsettling, the province did not answer the question: “Would increased federal funding for BC Ferries be used to lower fares?”

Informed of this omission, Goldsmith-Jones responded: “If the federal government were to put more money in, they would want to have a say in how the money is being spent.” So we can perhaps take some comfort in that.

Goldsmith-Jones said she “would be thrilled to collaborate with the province on this,” and cited the fixed link study as a good opportunity to get started.

Are you listening, Victoria?