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Transportation minister slows fare hike on some ferry routes, not majors

Transportation minister Blair Lekstrom has reduced an upcoming fare increase on BC Ferries minor and northern routes, but approved increases on the major routes between Vancouver Island and the Lower Mainland.

NDP ferries critic Gary Coons said Lekstrom should have frozen fares until BC Ferry Commissioner Gord Macatee can finish a review he announced last week.

The commissioner in March released a preliminary price cap decision that allowed increases starting on April 1, 2012 of 4.15 percent on the major routes and 8.23 percent on the minor and northern routes.

"What we've done is level off the cap at 4.15 percent," said Lekstrom, speaking with reporters after introducing the legislation that will allow for Macatee's review. "It was a way that we could still allow revenue to flow to BC Ferries . . . but at the same time allow the commissioner to do his work and offset the increase from 8.23 down to 4.15."

Lekstrom said the government will pay BC Ferries between $4 million and $5 million to make up the shortfall from the canceled increase.

In 2003 the B.C. government passed legislation requring BC Ferries to move towards having each route become financially self-sufficient. While the major routes cover their costs, the minor and northern routes do not.

"We've called for a freeze until the review is done," said the NDP's Coons. "We still believe that."

He dismissed the reduced increase on the minor and northern routes, saying fares have risen sharply since 2003. "The damage has been done," he said.

The review delays the government having to act and will likely allow fares to skyrocket after an expected fall election, he said.

Andrew MacLeod is The Tyee’s Legislative Bureau Chief in Victoria. Reach him here.

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