Office of the Premier
A public consultation and engagement process on the future of coastal ferry service in British Columbia will start today and run until Dec. 21. Transportation and Infrastructure Minister Mary Polak announced the consultation process today as part of the B.C. government's commitment to open government and in response to a recent review by the independent BC ferry commissioner.
The Review of the Coastal Ferry Act indicated that ferry users, the ferry operator and the B.C. government all need to be part of the solution to address the challenges facing the coastal ferry system in British Columbia.
Faced with declining ridership and rising costs, the B.C. government is asking for public input to inform decisions about service adjustments that will ensure coastal ferry services are sustainable and able to meet the unique needs of coastal communities. The Ministry of Transportation and Infrastructure, working with BC Ferries, is seeking public input on the principles that should guide decisions about service adjustments, as well as comments and suggestions on a long-term vision for an affordable and sustainable coastal ferry service.
The ministry is providing several opportunities for public consultation and engagement. All consultation and engagement meetings will be open to the public, and a series of small group meetings and open houses will take place in several communities. In addition, a discussion guide and feedback form will be available at the meetings and online. Information about how to participate can be found at: www.coastalferriesengagement.ca
Quotes:
Mary Polak, Minister of Transportation and Infrastructure -
"We have a world-class ferry system in British Columbia and taxpayer contributions to our coastal ferry service are at an all-time high of $180 million this year. This open public consultation process will ensure that coastal communities, ferry users and taxpayers all have the opportunity to inform decisions about service adjustments that will ensure we have a sustainable, affordable and efficient ferry service."
Gord Macatee, BC ferry commissioner -
"I'm really pleased to see this consultation get underway so the public can provide input into a long-term vision for BC Ferries. This is what our report recommended, and I commend the government for taking this on in such a transparent fashion. I look forward to hearing the results."
Mike Corrigan, BC Ferries president and CEO -
"We at BC Ferries believe that the consultation and engagement process is an essential step in ensuring that the coastal ferry system remains viable in the long term, with the necessary flexibility to meet the changing needs of our customers."
More information:
BC Ferries Consultation: www.coastalferriesengagement.ca
GovTogetherBC: http://www2.gov.bc.ca/govtogetherbc/
Subscribe to GovTogetherBC newsletter: http://www2.gov.bc.ca/govtogetherbc/subscribe/
A backgrounder follows.
Media Contact:
Kate Trotter
Public Affairs Officer
Ministry of Transportation and Infrastructure
250 356-8241
BACKGROUNDER
The challenge facing coastal ferry service
Declining ridership and increasing costs
- The two largest operating expenses are fuel and labour.
- Between 2004 and 2012, BC Ferries cut annual fuel consumption by 3.7 million litres (three per cent of total annual fuel consumption), but annual fuel costs increased 140 per cent, from $50 million to $121 million.
- Between 2004 and 2012, labour costs rose 24 per cent from $245 to $305 million, partly due to increased staff levels mandated by federal safety regulations.
- The total amount of government funding is currently more than $180 million - $150 million from the Province and $30 million from the federal government. To address the current fiscal challenges facing the ferry system, the Province is providing an additional $79.5 million in funding over the next four years.
- Like ferry operators worldwide, there has been a decline in the numbers of vehicles and passengers carried.
- Most coastal ferry routes are operating well below 50 per cent capacity, with some carrying more crew than passengers.
- Recent reductions in the service between Vancouver Island and the mainland have generated $4 million in savings, and we are anticipating an additional $5 million in savings on the major routes. The remaining $21 million in efficiencies is expected from the other routes.
BC ferry commissioner
- Is independent of both the government of B.C. and BC Ferries.
- Is responsible for regulating ferry fares by fare caps, while balancing the interests of ferry users, B.C. taxpayers and the ferry operator.
- Monitors the service agreement between the B.C. government and BC Ferries.
BC coastal ferry facts
- BC Ferries carries more than 21 million passengers per year with a satisfaction rating of 89 per cent and a reliability index of 99.5 per cent.
- Declining ridership and rising costs resulted in a loss of more than $16 million dollars in the year ending March 31, 2012.
- Increasing operational costs and the need to replace aging vessels and infrastructure could drive the funding shortfall to $114 million per year within five years.
- The BC Ferry commissioner recently set the price caps for the next three years based on there being $30 million in operational savings by April 2016.
Based on the decline in revenue and rising expenses threatening the coastal ferry service, the B.C. Ferry commissioner recommended the B.C. government work with BC Ferries to develop a long-term vision for the delivery of a sustainable coastal ferry service and to include a public consultation and engagement process.
Media Contact:
Kate Trotter
Public Affairs Officer
Ministry of Transportation and Infrastructure
250 356-8241
