Policy & Positions Manual
Provincial Issues - Transportation and Infrastructure
North Coast Ferry Operations Critical to British Columbia Economy and Infrastructure (2009)
As a coastal province, BC is reliant upon ferry transportation services to supplement transportation options, and in some cases provide essential service to island and remote communities in Northern and Southern BC. The Chamber considers ferries to be an extension of the public highway system, enhancing tourism opportunities, providing critical transportation links, and providing reliable commercial transport for all manner of goods to communities and vital transportation of commercial products to market.
The Chamber recognizes the efficiencies generated by the governance and operations model of the BC Ferry Services Corporation Inc., as governed by the Coastal Ferries Act, supports the idea of efficient taxpayer support of the ferry system to ensure critical services are maintained. This includes the concept of the system being largely supported through user fees, but recognizing this is not a realistic expectation in all areas of operations at all times.
The present financing levels of BC Ferries undermines the ability of the organization to fully meet community needs and develop business opportunities. It is imperative to consider the overall economic impacts and opportunities provided outside the present business model to achieve a net gain to the economy of BC in consideration of service levels and rate structures.
In order to compensate for a historical shortfall of capital investments for fleet development, BC Ferries has embarked on a much‐needed rebuild program. When combined with the capping of transfers from the Ministry of Transportation and Infrastructure in 2003, the result has been significantly higher user fares over the second performance term (PT2), constraints to sailing frequencies and scheduling inflexibility. This has been particularly evident on the lower capacity northern routes.
The Chamber understands that not all routes and systems will produce line profit and that some services, while critical to the sectors they serve, will not support complete user pay structures the northern strategy, specifically the northern rural routes.
Fixed annual schedules for the northern routes must be ensured in order to negate negative economic impacts realized when changes are made. The changed schedules cause delays to the shipment of goods and the provision of services, and the economic impacts are far reaching.
THE BC CHAMBER RECOMMENDS
That the Provincial Government:
- ensure that the BC Ferries governance and financing model continues to promote operational effectiveness and efficiency, while recognizing the Corporation as an extension of the BC public highway system, thus enhancing the Corporations mandate as a key driver of coastal community economic development, from a net gain viewpoint; and
- make amendments to the coastal ferries act to allow for enhanced transfers which:
- result in average fares that are comparable with those established in the first performance term (PT1) plus inflation and that are firmly set 18-24 months in advance;
- provide the Corporation with resources to continue with fleet development plans without adding the full burden of rebuild costs on the user rate structure; and
- maintain an annual schedule fixed date of September 1 for the coming 12 months.
