The B.C. government is committed to a second consecutive balanced budget, as well as making the difficult decisions now to help ensure the long-term affordability and sustainability of our coastal ferry service.

• B.C. taxpayers have provided an additional $86.6 million to 2016 to help reduce the pressure on ferry fares.
• That brings taxpayer funding through the provincial and federal governments to more than $200 million this year to support coastal ferry services.
• Over the last 10 years, these taxpayer contributions total $1.7 billion.
• In addition, the Province challenged BC Ferries to find $15 million in efficiencies through to 2016. This is in addition to the $39.2 million required by the BC Ferry commissioner, for a total of over $54 million in efficiencies by 2016. BC Ferries is on track to meet this challenge.
• In the medium term, the Government of B.C. is protecting taxpayers' significant investment and addressing the pressure for higher fares by implementing a combination of service adjustments, reducing the senior's discount, and pursuing the feasibility of a gaming pilot project on one of BC Ferries' major routes.
• $18.9 million in net savings are necessary over the next two years to meet the requirements under the current price cap. To accomplish that, BC Ferries will undertake service reductions.
• The first phase is the implementation of $14 million in net savings through service reductions on the minor and northern routes. These service adjustments will be implemented beginning April 28, 2014.
• BC Ferries will also implement further changes to the major routes prior to April 2016 to achieve $4.9 million in savings. Minor and northern routes will not be affected by these changes.
• With $4 million in service reductions already implemented on the major routes, and the additional $18.9 million in net savings to be achieved by 2016, total service reduction savings will be $22.9 million to 2016.
• The BC Ferry commissioner has set fare increases of 4% and 3.9% for the next two years based on these savings.
• The Province and BC Ferries will continue to explore strategies to create an affordable and sustainable system beyond 2016. Many of these strategies were included for consideration or were raised in the 2012 engagement and include:
• Standardize vessels and use more "no frills vessels" on smaller routes.
• Move to liquefied natural gas (LNG) fuel propulsion.
• Consider alternative ferry technologies, like the new cable ferry to serve the Buckley Bay - Denman Island route.
• Modify the reservation and point-of-sale system to improve utilization and improve customer service.
• Seek additional operational efficiencies.
• Seek new revenue sources (e.g., gaming).
• Seek federal infrastructure funding to renew the fleet and terminals.
• Review service needs when making significant capital expenditures for terminals and vessels.

Media Contact:

Robert Adam
Government Communications and Public Engagement
Ministry of Transportation and Infrastructure
250 256-8241