The BC ferry commissioner’s preliminary ruling on coastal ferry fare price caps confirms the actions by government and BC Ferries to control costs and find efficiencies in the delivery of the ferry service are working to keep fare increases lower.

Government has said consistently that tough decisions are required to ensure fares are affordable for families in the future. As a result of this work, the BC ferry commissioner is proposing price cap increases of 1.9% in each of the four years of Performance Term 4 (PT4) from 2016 to 2019, bringing fare increases in line with inflation.

As outlined in the Province’s coastal ferries vision, government undertook a broad set of initiatives including:

• Adding an additional $86.6 million in taxpayer funding to 2016, bringing the provincial investment in BC Ferries last year to $180 million,
• Identifying service reductions to generate $18 million in savings to 2016,
• Reducing the seniors discount from 100% to 50% of the passenger fare from Monday to Thursday and redirecting the savings to BC Ferries to help reduce pressure on fares for all users; and,
• Launching a study to assess the feasibility of a fixed link between Vancouver Island and Gabriola Island.

For its part, BC Ferries was challenged to find $54 million in efficiencies to 2016 and is on track to exceed this target. Other initiatives include a new Denman Island cable ferry, a new IT and reservation system, building three new vessels capable of operating with LNG or diesel, and conversion of the Spirit-class vessels to LNG during their mid-life refits.

Following a review of the ruling, government will work with BC Ferries on a renewed Coastal Ferry Service Contract, which will be provided to the commissioner by June 30, 2015, as per the Coastal Ferry Act. The commissioner’s final PT4 price cap ruling is due by Sept. 30, 2015.

The Government of B.C. will continue to work with BC Ferries to explore strategies to lower the pressure on fares, including pursuing a greater level of support for coastal ferries from the federal government.

Quote:

Minister of Transportation and Infrastructure Todd Stone -

“The B.C. ferry commissioner’s preliminary price cap ruling is good news for British Columbians, in particular those living in coastal communities. It is evidence that the Province’s and BC Ferries’ efforts to find savings and efficiencies are moving price caps in the right direction. Affordability was one of the key objectives of our vision, and we're arguably four years ahead of schedule in getting price caps in line with long-term inflation.”

Media Contacts:

Media Relations
Government Communications and Public Engagement
Ministry of Transportation and Infrastructure
250 356-8241