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 a review of the Coastal Ferry Act this week which included 24 recommendations aimed at addressing financial challenges faced by both B.C. Ferries and its customers. Caps on fare increases and a fundamental change to the booking system were among them.
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.
The sharply rising fares, combined with a downturn in the economy, have driven down ridership and reduced tourism in ferry-dependent communities, he wrote.
Meanwhile, the corporation is facing other financial headwinds. The need to replace aging vessels has created rising costs to service its debt, according to the commissioner, and hefty salaries and wages, which add up to 60 per cent of direct operating expenses, create another considerable burden. The nine-year agreement with the ferries union expires in October of this year.
To help compensate, the province should consider boosting its subsidy to the system, wrote Macatee. Money made on larger profitable routes should also be used to help subsidize losses on small routes a practice currently not allowed under the act, he wrote.
The commissioner said an overhaul of the reservation system would further alleviate costs. Right now, the corporation faces huge, unpredictable variations in ridership that make it extremely difficult for it to use vessels and crews efficiently, he wrote. 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 corporation plan, Macatee recommended turning the current reservation model upside down allowing free reservation up to a day in advance and requiring passengers who show up at the terminal unannounced to pay an additional fee.
The ferry operator would know how many vehicles to plan for, and how many crew to schedule, he wrote.
The commissioner has also recommended greater oversight of the ferry corporations long-range capital plans.
Check back here for more.
Follow us on Twitter: @NorthShoreNews
