Ferry users could be looking at doubled fares on smaller routes unless the province can spare a few million in the next five years, according to the CEO of BC Ferries.
Specifically, government would need to top up its yearly $150 million by $25 million, David Hahn said last week.
The 2003 ̨MM Ferry Act included regulation of fare hikes, subject to a cap set every four years by an independent B.C. Ferry Commission. The cap was renewed in 2008 and is set to expire in March 2012.
Hahn has submitted a request to the commission to raise rates between 2012 and 2016 by up to 26 per cent a year on northern routes, 14 per cent on minor routes and five per cent on major routes.
The ferry advisory committee chairs, who represent coastal communities, say fare increases are a realistic assessment of what will happen in the absence of additional government support or service reductions.
“We certainly knew that this challenge was coming up,” FAC Hornby-Denman chair Tony Law said. “We’ve let the minister (Transportation Minister Shirley Bond) and her predecessor Kevin Falcon know over the last few years that this crunch was coming.”
Along with fuel and other expenses, replacing aging vessels and terminals will be a costly venture. Cutting administrative costs, including Hahn’s million-dollar salary, will not make a significant difference to the overall picture, Law said, noting annual costs to run the ferry system are about $660 million.
Law foresees a squeeze on northern routes and smaller routes such as those serving destinations near the Comox Valley.
“Pre-paid fares have gone up 100 per cent since 2003. That’s 10 times the rate of inflation,” Law said. “It’s a huge hit for our communities.”
A Hornby resident, Law said his community has lost “a lot of day trippers” who perhaps visit only once a year. “It affects every aspect of life on the islands,” he said.
While ferry ridership is generally down, Law said Hornby has maintained a number of “loyal visitors,” though they tend to spend less money these days.
“As fares have gone up, ridership has gone down, and of course that’s not a sustainable pattern,” he said.
The FACC has “looked at efficiencies and innovations” in a meeting with BC Ferries, the Transportation Ministry and Ferry commissioner Martin Crilly of Comox. Law said BC Ferries is, for instance, proposing to cut the Mill Bay/Brentwood route.
“You’re kind of stuck with the geography,” Law said. “We’ve certainly been banging our heads looking at solutions.”
Crilly will make a preliminary ruling on the proposed hikes by the end of March. The government will review the proposal by June, then Crilly will make a final decision by September.
reporter@comoxvalleyrecord.com