The Province has committed nearly $80 million in additional funding to BC Ferries to help offset costs and to keep fares down to an affordable increase, Transportation and Infrastructure Minister Blair Lekstrom announced Wednesday. A total of $79.5 million will be spread over the next four years with $46.5 million on “the front end,” $10.5 million next year, $11 million in 2014, and $11.5 million in 2015 and 2016. “I think this is a very favourable day for British Columbians,” said Lekstrom, who praised ferries commissioner Gordon Macatee’s report that contained recommendations — based on feedback from nearly 2,000 British Columbians — to better balance the interests of ferry users, taxpayers and the ferry operator. “Today, in our legislation that was put forward, we addressed 18 of the key recommendations that deal with the legislative changes that were put forward. All of us have to come together to ensure that we have a long-term financially sustainable and affordable system.”A key recommendation is to link fare increases to the rate of inflation.”I fully support that but it will take some time to get there,” Lekstrom said, adding BC Ferries will need to find an additional $15 million in “efficiencies within their corporation.”Through a public engagement process, government will also look to communities for $30 million in “service adjustment and tradeoffs” to ensure, for instance, that routes do not run at less than 30 per cent capacity, he said.Last year, BC Ferries asked the province to consider some major route reductions, primarily late-night sailings. The ministry is considering the proposal favorably.While $80 million sounds like a significant sum, Macatee has noted the province has saved $100 million by “freezing its contribution over recent years and not increasing it with CPI (consumer price index),” says Tony Law, Hornby-Denman representative on the Ferry Advisory Committee Chairs.  Law also notes ferry rates have increased several times the rate of inflation.”The commissioner reckoned it would take an extra $50 million a year to keep fare increases in line with the rate of inflation,” Law said, adding a 10-per-cent cut in service would save just $7.5 million. “Unless there are really, really drastic cuts it’s hard to see how cutting sailings here and there is going to make a lot of difference because the main costs are labour and capital…Just tying the boat up for a few sailings is not going to generate a lot of money.”There’s no sort of silver bullet that’s going to really make a difference, unless you do something drastic like cutting the Mill Bay to Brentwood route, which the province has not supported,” Law added.reporter@comoxvalleyrecord.com

Comox Valley Record