FERRY fare increases would be held to the rate of inflation and passenger reservations could be made free of charge if new recommendations from the B.C. Ferries watchdog are adopted by the province.
Gord Macatee, the independent ferry commissioner, released his review of the Coastal Ferry Act this week, along with 24 recommendations that include a bigger subsidy from the province for the ferry system.
Macatee said greater consideration should be given to ferry users, many of whom are unable to pay sharply rising ferry fares.
"Current ferry fares and the proposed increases have reached the tipping point of affordability and are imposing significant hardship on ferry dependent communities. . . ." wrote Macatee.
Since the ferry corporation went from a Crown corporation to a quasi-private company in 2003, ferry fares have increased up to 80 per cent on minor routes and 47 per cent on major routes.
Rising ferry fares along with a downturn in the economy have resulted in a decline in ferry ridership and reduced tourism in ferry-dependent communities, he said.
Macatee recommended the province boost its support for the ferry system. He said money made on larger profitable routes should also be able to help subsidize losses on small routes - a practice currently not allowed under the Coastal Ferry Act.
But Macatee also pointed out that the ferry system faces serious challenges.
Among them, the corporation faces significant and rising costs of servicing its capital debt because of the need to replace an aging ferry fleet. Salary and wages, the largest costs for ferry operations, also add up to 60 per cent of direct operating expenses, Macatee noted.
The nine-year agreement with the ferries union expires in October of this year.
The ferry corporation is faced with huge variability in how well ferries are used. In 2011, ferries ran at an average capacity of 53 per cent, with some minor routes running at 30 per cent capacity.
To deal with that, and help the ferry corporation plan, Macatee has recommended "turning the current reservation model upside down" and running it more like an airline, allowing free reservations up to a day in advance. "The ferry operator would know how many vehicles to plan for, and how many crew to schedule," he wrote.
He suggested under that system, some sailings could be designated "optional" and would only go ahead if reservations reached a predetermined target.
The commissioner has also recommended greater oversight of the ferry corporation's capital plans.
Macatee wrote the ferry system also needs a clear vision of where it is headed "so we don't saddle our future with a fleet designed to serve the needs of the past."
The ferry corporation is currently geared to move cars from one terminal to another, he noted. But in the future, "the ferry business could be more about moving people rather than vehicles, and delivering them to communities where they work and shop. . . ." he wrote.
"If fuel prices continue to rise and demographics change, we may want to think in terms of different business models."
