Ferry act review makes affordability pitch

The BC Ferry Commission’s review of the Coastal Ferry Act has cited affordability as the key issue affecting the ferry system and calls for changes that will put less burden on riders in the future.

The results of a public consultation and review process that was initiated by Ferry Commissioner Gordon Macatee last spring were delivered to Transportation Minister Blair Lekstrom Tuesday morning and include measures that could give riders priority over profitability.

“The key point seems to be that instead of the commission office making sure the corporation is financially sustainable, their suggestion is that the Coastal Ferry Act put its users first,” said Harold Swierenga, chair of Salt Spring’s Ferry Advisory Committee.

“That, to me, is going to require a complete change of philosophy from the provincial government.”

Swierenga said there are both surprises and expected points in the review. At the heart of the findings is the recommendation to keep fare increases in line with inflation based on the Consumer Price Index, rather than requiring revenue from riders to cover capital expenditures, rising fuel costs and vessel replacements.

“In truth, we think a CPI limit on price caps is necessary to the sustainability of the ferry system itself,” Macatee stated at a news conference early Tuesday, noting that a one per cent drop in ridership equals $5 million in lost revenue.

“There’s a tipping point [in fare increases] that’s been reached.”

Two recommendations that have been called for by the Ferry Advisory Committee Chairs and the Islands Trust are to re-allow the cross-subsidization of minor routes by the profitable major routes, and to remove the goal of “greater reliance on a user-pay system” from the act.

Projecting funding shortfalls that start at $58 million for fiscal year 2012/13 and rise as high as $143 million by Performance Term Five, the commissioner identified “seven moving parts” that would help make up the difference if the CPI limit is put in place. Increased government subsidies, as expected, was one part of the proposed solution. Switching fuel to natural gas, moving to a reservations-based system and new marketing initiatives are also among the recommendations.

The review further suggests that ferry use capacity could be improved and that users who want affordable fares will have to compromise with a reduction in service levels through the elimination of underused sailings.

That’s not an unreasonable request, Swierenga said, noting some sailings go ahead with more crew members than passengers on board. While some people will complain, “it’s the question of doing the greater good for the whole ferry system.”

Mouat’s Trading president Kevin Bell has publicly voiced the opinion that BC Ferries should be funded in line with other transit systems, stating declining ridership over the past few years has meant significant losses to coastal communities like Salt Spring.

“I think it’s a terrific report and its recommendations are very good,” Bell said after reading the review on Tuesday. He added the idea that the ferry system should be run as a public service rather than a business is a “180 degree turn” from the official viewpoint held since 2003.

“I really hope the communities and these ferry-dependent islands get behind the report and ask the government to implement as many of the recommendations as possible.”

Swierenga said there’s no telling how long it might take for Lekstrom to speak to the review’s recommendations, but the FAC chairs hope to schedule a meeting with the minister in the next few weeks.

“Our next job is to make sure we get the benefit of the recommendations,” he said.

“Where it goes from here is the question, because the commissioner does not get to make the decisions.”

The commissioner’s entire report can be accessed online at www.bcferrycommission.com.