VICTORIA (NEWS1130) - A
BC Ferries report recommends all future fare caps be limited to the rate of inflation and that more financial support is needed from the provincial government.
BC Ferry Commissioner Gordon Macatee's report makes
24 recommendations; including asking the province to consider improved funding to the ferry corporation.
It found the crown corporation has made significant improvements, but faces declining ridership and financial losses which are crippling the system and are expected to get larger in the years ahead.
Macatee says fares have ballooned 47 per cent over the past decade. He notes affordability was the loudest message delivered during recent public hearings examining ferry service. He also believes there should be more oversight when it comes to capital projects like buying new vessels.
Transportation Minister
Blair Lekstrom is not responding to any of the recommendations. He says the government needs some time to look over the report.
"I think most British Columbians would like to pay less for their services that is human nature, but the reality is that there is a cost. We have to find that balance. I will go through this report. Obviously we have heard loud and clear that there is a concern from British Columbians on the sustainability and affordability of this system."
BC Ferries President
Mike Corrigan says help is needed to keep costs down in the long-term.
"The commissioner has said that he wanted to keep fare increases at a moderate level going forward. We certainly support that in principal, as long as we can recover the cost if he's going to do that, and if we have a pretty fixed cost structure then we're going to have to have the ability to adjust our service levels."
He says unless the government helps, fares will continue to increase substantially.
Sechelt Mayor John Henderson admits there are only two options to balancing costs at BC Ferries.
"You either pay a lot more money for the service, or you find ways to reduce the overall costs. Some of the minor routes will undoubtedly incur some service cuts, but hopefully with using technology they'll be able to still meet the needs of the residents"
He calls the commissioner's report comprehensive.
Report recommendation highlights
-Future price cap increases should be held to the rate of inflation
-Capacity utilization of the ferry fleet should be improved
-Commissioner should have more authority to hold operator accountable
-The province should consider an increase in financial support; should cushion at least a portion of fuel price volatility as it does for northern routes
-Municipal and regional governments should have the ability to play a role in keeping fares affordable
-BC Ferries should upgrade its reservation and point-of-sales systems