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B.C. Ferries gets OK for fuel surcharges up to 17.6 per cent beginning Aug .1 |
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Written by Scott Sutherland, THE CANADIAN PRESS
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Wednesday, 23 July 2008 |
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Victoria - B.C. Ferries will hike fares on most of its coastal routes in August, a few months ahead of schedule, due to skyrocketing fuel costs.
Fares will increase between 9.2 and 17.6 per cent on 22 of the company's 25 coastal routes.
"We certainly don't like to have to implement these fuel surcharges," corporation spokeswoman Deborah Marshall said Wednesday.
But like airlines, trucking companies and railways, the privately managed, publicly owned corporation is dealing with huge increases in fuel costs.
In fact, fuel costs have increased so dramatically that B.C. Transportation Minister Kevin Falcon said the province may have to reduce service, particularly off peak periods.
"I'm not talking in the summer time, but in the non-peak periods in the fall and winter we may have to look at frequency of service," he said. "That may be one way we could sort of tackle this issue, without obviously eliminating service for people."
Falcon said there's no question that fare increases "hurt" ferry users.
But he said the province already provides a $115 million annual subsidy for northern and minor routes, a level of support not seen in any other region or area of the province.
"We just have to figure out how we try and deal with this in a manner that is sensitive to the fact that there's not unlimited dollars available to shield communities entirely from this rather extraordinary situation in world oil prices," he said.
Marshall said B.C. Ferries has seen its fuel bill triple over the last five years.
"Back in 2003 our fuel cost was approximately $45 million, this fiscal year we expect it to be $140 million . . . and unfortunately, we do have to pass some of that on to our customers," she said. "We burn about 120 million litres a year and unfortunately the price has just kept escalating."
Effective Aug. 1, fares on the three major routes between the mainland and Vancouver Island will increase by 10.3 per cent. The current vehicle charge of $43.00 will rise to $47.15 and the passenger fare will jump from $13 to $14.25 one way.
On an additional 18 minor routes, such as those servicing the popular Gulf Islands, the increase will be substantially higher at 17.6 per cent. It currently costs $28.60 for a vehicle and $7.25 per person on the southern Gulf Islands route.
On the main route servicing the Sunshine Coast north west of Vancouver, the hike is being limited to 9.2 per cent, so passengers will pay $12.30 for a round-trip ticket. A vehicle will cost $43.00 for a round-trip.
Marshall said only the company's northern routes have been spared the rising fares because the province has agreed to pay for the fuel on those three routes.
The provincial New Democrats called the hikes "horrendous."
"What I see is an arrogant government, both (Transportation) Minister Kevin Falcon and (Premier Gordon Campbell), refusing to listen to coastal communities," said North Coast MLA Gary Coons in a telephone interview from Halifax.
He said members of a ferry advisory committee warned more than a year ago that fare increases would result in lower ridership, and negative affects on tourism and coastal businesses.
"We called for the government to put a moratorium on any fare increases until there is a strategy or a plan," he complained. "The minister needs to sit down and discuss what's going to be happening in ferry-dependent communities. It's horrendous."
Last year, B.C. Ferries carried nearly four million vehicles and more than 11 million passengers on its 38 vessels.
It is not the only Canadian ferry service hit by rising fuel costs.
Marine Atlantic, the federal Crown corporation responsible for the ferry connecting southern Newfoundland with Nova Scotia, hiked its fuel surcharge from 9.7 to 27.7 per cent on July 1.
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Last Updated ( Sunday, 07 September 2008 )
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