The disastrous April drop in B.C. Ferries traffic shows the urgent need to address deep problems with the service. Passenger numbers on the Swartz Bay-Tsawwassen route fell 10 per cent from the previous year. Vehicle traffic was down 6.9 per cent.聽
One bad month could be an aberration. But the last decade has been marked by two related factors 鈥� rising fares and falling traffic.聽
The result has damaged the economy of the capital region and all ferry-dependent communities.聽
The situation is unsustainable. The government鈥檚 mandate for B.C. Ferries requires rate increases well above the rate of inflation. Higher fares means fewer riders, and less revenue. So the corporation then raises rates again, and the process continues.
The government has rejected calls for a fundamental review of the B.C. Ferries model established in 2003, despite evidence of serious problems.
But perhaps Premier Christy Clark will reconsider in light of a recent critique from newfound ally Gordon Wilson, who endorsed the Liberals during the election campaign.聽
Wilson was a former Liberal leader until he was ousted. He switched to the New Democrats and served as minister responsible for B.C. Ferries.聽
Earlier this year, Wilson wrote a report concluding the current model for B.C. Ferries doesn鈥檛 work. The 2003 decision to create a quasi-private corporation and shift more costs on to users has resulted in soaring fares that have hurt communities economically and socially, he found.
The government鈥檚 approach violates a basic principle of fiscal fairness, Wilson argued. Citizens are entitled to comparable government services. But ferry policies discriminate against the 20 per cent of British Columbians who live in coastal communities.
Wilson notes one example, the inland ferry fleet that provides comparable services to 2.4 million passengers a year and charges no fares.
But the principle is broader. A Lower Mainland family of four considering a short vacation might look at Whistler or Victoria. The trip to Whistler would be on a free highway, recently upgraded by government at a cost of $895 million. The trip to Victoria would require about $240 in ferry fares and reservation fees.聽
Tourism businesses in both Whistler and Victoria both pay taxes, but one group receives much greater benefits.
The government response to these problems has been inadequate. A consultation process looked at cutting some services to save money, a useful initiative, but not one that will address the core problems.聽
Clark says B.C. Ferries will get a share of LNG revenues if they begin to flow in 2017. Again, useful, but too uncertain and far in the future to provide real comfort.
Wilson argues the 2003 B.C. Ferries restructuring has not worked. After 10 years, the evidence shows the business is losing customers, and communities are being harmed. The current business model is not sustainable.
Ferry service should be under the British Columbia Transportation Financing Authority, Wilson found. The ferry service should be treated as the floating equivalent of toll bridges, he maintains, and should be a direct government responsibility.
It鈥檚 a difficult time for government to address issues like increasing funding to reduce ferry fares. Any action might have to wait for a few years.
But the government should acknowledge the problems and launch a fundamental review of the role and future of B.C. Ferries.
