B.C. Ferries needs a shift in focus and a change in funding to make the service viable again, according to review of the Coastal Ferry Act by B.C. Ferry Commissioner Gordon Macatee.
The review, released on Tuesday, shows declining ridership and financial losses for B.C. Ferries in the current year coupled with a planned $2.5 billion investment in capital projects over the next 12 years, calling into question how the ferry operator will be able to keep afloat.
"We've tried to consider every reasonable possibility to address the size of that gap, and we think we've assembled a balanced set of recommendations, which are going to require the participation and contribution of all principal users of the ferry system," Macatee said at a press conference on Jan. 24, shortly after the report was made public.
The report calls for price cap increases to be held to the rate of inflation, better utilization of the fleet, more authority for the commissioner to conduct performance audits on B.C. Ferries, more oversight on capital plans and acquisitions, an increase in financial support from the province, a cushioning of at least a portion of the fuel price volatility, more input by municipal and regional governments on the ferry service, a switch to a free reservation system, and a change to the definition of ferry user to include the communities and businesses that depend on the service.
The issue of cost came to the forefront of the report with statistics that show the cost to ride B.C. Ferries has risen astronomically in the past nine years.
"Over the last nine years, fares have gone up by 47 per cent on the major routes and 80 per cent on the minor routes," Macatee said. "During that time, inflation has risen by about 15 per cent. So the message we heard was that there's a tipping point that's been reached on further large fare increases. Some people are asking for a freeze or rollbacks, which, given our economic situation in the province, we realize are unlikely to be realistic."
More funding by the government is a possibility, said Minister of Transportation and Infrastructure Blair Lekstrom.
"I think everything is on the table right now, but again I want to be very clear. Having received the report that is over 90 pages long just an hour ago, I'm not prepared at this moment to make a determination on any of those recommendations until I've had a chance to go through the report in detail, to speak to the commissioner and to speak to my colleagues," said Lekstrom during a press conference when asked if government would be willing to subsidize B.C. Ferries.
Powell River-Sunshine Coast MLA Nicholas Simons said he wants government to have something in place sooner rather than later.
"I think the question now is will government respond? They've waited until the patient was long into the emergency room and now we hope that appropriate attention can be paid to the issue itself. I don't think we should have to wait for some immediate relief, however they can manage it," Simons said. "Our fares are still exorbitantly high and people are being impacted on a daily basis, obviously. So I'm hoping government doesn't decide to just put their feet up and think things through. I hope that they take active steps toward addressing the recommendations that the commissioner has made."
While many are praising the report and its recommendations, the Sunshine Coast Southern Ferry Advisory Committee (SCSFAC) is a bit disappointed that it didn't go farther.
"I don't think they go far enough. There are many of us who believe this is our highway and that we should be treated in a reasonable way compared to other users of the provincial transportation system," said SCSFAC acting chair David Dick, also mentioning the lack of attention in the report to creating a fair student and sports team rate for ferry users, which has been a priority locally.
He did, however, applaud the commissioner for taking into consideration many of the Coast's concerns and believes, if acted upon, the recommendations will improve the ferry service.
"I think that it's moved the ball a long ways. Did it move it where we wanted it to go? Probably not, but it was a very positive move," he said.
Ferries' President and CEO Mike Corrigan welcomed the findings of Macatee's report.
"The commissioner's report clearly articulates the challenges ahead if we continue to operate the same level of service with the same level of funding. I am also encouraged that the commissioner has recognized that soaring fuel prices and regulatory changes are beyond the direct control of the company," Corrigan said. "We will continue to work with the commissioner, the provincial government and our customers to keep fares as affordable as possible, while continuing to operate a safe and reliable ferry service."
To find a copy of the 90-page report, go to www.bcferrycommission.com and click on What's New.
