Transportation minister Kevin Falcon said there will be no extra money for B.C. Ferries, despite second quarter results showing the government-owned company is bleeding riders and money.
In the sixth months ended September 30, passenger traffic was down 5.3 percent from the same period last year and vehicle traffic was down 6.1 percent. Net earnings for the six-month period were $62.1 million, down $13.3 million from 2007.
“Not too surprising,” said Falcon, reacting to the numbers. B.C. Ferries is caught in the general economic slowdown, he said.
In October Premier Gordon Campbell announced a $20 million subsidy to B.C. Ferries to reduce fares and restore service levels for two months.
“It's one of the reasons we want to provide that 33 percent discount for December and January, give a shot in the arm to the island communities and hopefully encourage families to link up over the holiday period while we wait for the balance of the fuel surcharge to come off.”
A chart on the B.C. Ferry Commission's website shows the subsidy will briefly bring fares down to 2003 levels before they shoot up again.
Ferry riders should not expect further subsidies, Falcon said. “There's not any intention to be able to keep that going, especially given the economic circumstances,” he said. “I honestly think there's an affordability issue. We already . . . provide $150 million a year to keep B.C. Ferries fares affordable.”
With decreased earnings, a drop in traffic and interest costs rising, B.C. Ferries is in serious trouble, said NDP ferries critic Gary Coons. “It's a pretty grim tale out there,” he said. “It's looking like a perfect storm for the government.”
The public needs to see the government doing more to protect the service, he said. “Ever since the privatization model came in, the Premier has had no accountability for the file. They've had no scrutiny at all and the public deserves answers.”
Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.
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G West
3 years ago
How big a bucket does $20 million require?
And how, Kevin, do you define bailing?
The province is the shareholder of record as I understand the current governance structure...I think the suggestion that the Province is going to push BC Ferries into receivership is nonsense.
Their debt, whether we like it or not, is OUR debt...although we could probably save a bit on David Hahn's salary and bonuses if the corporation went belly up.
The ferries would still have to sail, at a loss or otherwise - the suggestion that Falcon and Campbell won't wear this is absurd.
Grumpy
3 years ago
This what Falco & Gordo want
Bankrupt BC Ferries and sell the remains off to the highest bidder. The 3 Deutch Zitrones are the coup de grace!
Van Isle
3 years ago
David Hahn was hired on by
David Hahn was hired on by Gordon Campbell to do only one thing; and that was to run BC Ferries into the ground (pun intended). He did it to Ogden Aviation too.
Baxman
3 years ago
NeoCon Propaganda
I am beginning to believe this global financial crisis has been created intentionally by the NeoCon money movers of the world. It’s the Pearl Harbour or the 911 event they need to justify the dismantling of our society as we know it and transform it into their “Corporate playground”.
Skywalker
3 years ago
Turf them all.
Imagine what would happen if they found ou that the Coquihalla Highway was using too much of the maintenance dollars or was no longer "cost effective". You think they would be refusing a bailout.
It's part of the highway system you clods, and if it needs more money you need to provide it or raise fees. No wait, you did that already and that is why no nobody can afford to ride thereby creating this problem. Those who live on the Islands, remember all the development that made money for your friends, have no other choice and access.
Fire the clods, Campbell, Falcon and Hahn!
guystone
3 years ago
Ferries
If were weren't still paying off the fast ferries that Glen Clark tried to build maybe our ferries today would be fine
400 million down the drain. How can anyone possibly suggest that the NDP ran BC ferries better than the Liberals are now?
The ferries we paid for under the Liberal government worked. The high fares are because of the boats we are paying for that we don't have
G West
3 years ago
guystone
The ferries we paid for under the Liberal government worked
This (apart from the incorrect verb tense) from you, seems to be drawing a conclusion on the basis of evidence that's not yet available.
Perhaps you missed this article:
http://thetyee.ca/News/2008/11/18/Ferries/
I hope you'll take the time to read it.