Background:
In 2003, the Provincial Government decided to restructure BC Ferries Corporation. The goal was to create a strong, sustainable, customer focused transportation provider that would meet the needs of the growing coastal communities without being a burden on taxpayers. Prior to the creation of BC Ferry Services Inc., the government studied multiple options, from the status quo to the complete privatization of the system. The government decided to choose a middle of the road option, which allows them to concentrate on setting public policy, and leaves BC Ferries Services on its own to build a successful marine transportation business.
BC Ferries is an integral part of British Columbia’s transportation system and facilitates growth and development. Fixed link alternatives are enormous technical and financial undertakings, while ferries are a more economical alternative for the distances they cover.
Without a safe, reliable and efficient ferry system in place, Coastal British Columbia will experience limited growth and development that will eventually impact the provincial economy as a whole.
Now that adequate time has passed, it has become apparent that, while BC Ferries are doing the best they can under the circumstances, the business model and structure under which they currently operate has not been successful, and is not serving the needs or requirements of governments or citizens who rely on ferry transportation. The Authority Model which BC Ferries opperates under as directed by the Coastal Ferry Act has been a poor public policy decision and is now starting to impact the economy of Coastal Communities and the Province itself.
Impacted sectors include:
1. The Authority Model that BC Ferry operates under is no longer working in the best interest of British Columbians:
2. British Columbia needs a safe, reliable and efficient ferry service to promote economic growth and sustainability for coastal communities.
- Safety will continue to be BC Ferries’ number one priority.
- Ferry schedules that work for and meet the needs of Coastal Communities.
- Fare structure that makes sense and is consistent.
- Accountable and transparent, following good business practices to ensure economic growth of coastal British Columbia.
3. It is time to review and change the business model and the Coastal Ferry Act to better align BC Ferries with the needs of coastal communities and the Province of British Columbia.
- Identify that BC Ferries is part of the Provincial highway system.
- Recognize its importance to not only the economies of coastal communities but the Province as a whole.
- Renew public confidence that BC Ferries is the safest ferry system in the world.
- Establish a logically planned vessel/marine structure renewal and investment program that will bring economic opportunities and investment to British Columbia.
- BC Government will create legislation for an operating mandate for BC Ferries that will create sustainable economic viability for Coastal Communities.
4. British Columbians deserve to again feel proud of and feel ownership of their ferry system.
What we at Save Our Ferries are proposing is to meld the Crown Corporation and the Authority Models to create an operating model with legislative direction and a mandate that makes sense for British Columbia’s ferry system. Our goal is to create opportunity, to protect the economy and remove uncertainty for coastal communities about the future of their ferry service. We want to see that the Government create, in consultation with stakeholder groups, a ferry system that the people of British Columbia can be proud of—one that is the best ferry service in the world.
5. Course Correction – Putting BC Ferries Back on Track
Safe – strive to exceed Transport Canada/ISM regulated standards.
- Exceed Transport Canada regulations - BC Ferries should work with the Federal Government and the Canadian Ferry Operators Association to ensure changes to the Canada Shipping Act are implemented expeditiously, without delay, and with the addition of mandatory compliance with the ISM Code for all Canadian Passenger vessels carrying more than 15 passengers.
- ISM compliant - BC Ferries must continue the work started with the SailSafe program, a continuous improvement process towards world class safety excellence.
- Transportation Safety Board - Increase potential for safety success by working more closely with the Transportation Safety Board. BC Ferries has a huge opportunity to accomplish world class status for safety by embracing and implementing recommendations from the various TSB Final Reports.
- Worksafe BC - BC Ferries must completely review its relationship with Worksafe BC. Worksafe BC and Transport Canada must be given direction from the Provincial as well as Federal level to more effectively regulate the ferry system through a renewed process of auditing and enforcement with real penalties for non-compliance.
- Judicial Reviews – For any loss of life incident that occurs, there will be an immediate Judicial Review called.
Efficient & reliable – build a ferry service that British Columbians can rely on, with a stakeholder consultation process with timelines for expeditious completion.
- Ferries are finally recognized as part of the Provincial Highway system.
- Create realistic operating schedules that accommodate tides, traffic levels, fuel consumption and other impacting factors.
- Review all service levels and operations establishing agreed outcomes with Stakeholders.
Cost Effective –BC Ferries will be legislated to follow good operating and business practices, to ensure that the taxpayers of British Columbia are getting value for their tax dollars invested.
- Business structure built around vessel operation.
- Investment will be made in the sustainability of the ferry operation and in work force development.
- Integrated vessel/marine structures and systems. Integrated vessel designs and systems for minor, intermediate and major ferries. This allows purchasing using economies of scale.
- Training positions and apprenticeship programs will develop the next generation of British Columbia’s seafarers and ship trades personal. Work in partnership with First Nations to develop the potential of that growing workforce.
- Work in partnership with the Federal Governments infrastructure spending program. Renegotiate the existing Federal Subsidy to better reflect the reality of the economics and responsibilities of operating the BC Ferry system into the next two decades.
- Establishment of whistle blower policy protection to provide transparency opportunities.
- Establishment of internal audit function of BC Ferry Operations as a whole that would ensure the best protection of stakeholders and supply a report to the Legislature on an annual basis.
Economic and Social Development – BC Ferries is an integral part of Coastal British Columbia’s economic and social development and of the Province as a whole. BC Ferries, the Provincial Government and these communities will develop a long term vessel and service strategy in consultation with stakeholders.
- Long term planning allows the Provincial Governments’ to budget and fund vessel and terminal expansion/construction.
- Communities will have certainty in knowing the service that they will be receiving well into the future and can plan accordingly.
- Business can build services based on a stable ferry system with a fare structure that is predictable.
The tax payers of British Columbia require a Safe, Efficient and Cost Effective Ferry System that meets their needs and that also creates and facilitates economic opportunities within the Province. Ownership would be retained by the citizens and taxpayers of British Columbia and Canada.
- Fares will be set to rise with inflation rate based on the Vancouver Price index.
- The Government will continue to allocate the current Provincial motor fuel tax to BC Ferries operations only.
- BC Ferries will be mandated to meet its operating costs. This will give the Corporation the incentive to find cost saving initiatives, to be more creative and efficient. None of these initiatives are allowed to impact safety or service levels.
- BC Ferries will be viewed as a single entity during each fiscal year, when it comes to meeting operating costs, and allocation of funds.
- The Federal Subsidy will be used to offset operating costs for the system as a single entity.
- Amalgamate all routes and subsidiaries into one entity.
- The Provincial Government will cover extraordinary costs that are beyond BC Ferries ability to control. This is an added buffer to offset extraordinary fuel prices, or impacts on Tourism.
- Fares will be balanced out on all routes and rationalized.
- Stable fares will help develop Commercial, Business, and Tourism opportunities and allow for long term planning for Coastal British Columbia.
- Review capital funding model to see if a contribution towards capital acquisition is appropriate for the Province to ensure Ferry organization long term viability.
BC Ferries will become the model for other Provincial Transportation Systems in cost recovery and efficiency.
- Vessel and Marine structure upgrade and replacement costs will be covered by the Province, since they are part of Provincial Transportation infrastructure.
- BC Ferries working with stakeholders, including local government, FAC, Chamber of Commerce, trucking, First Nations and the Union will develop long term route plans within two years of commencement of the new operating model.
- BC Ferries will have a buy in Canada preference, and will take advantage of the Federal Governments infrastructure and Canadian Navy investment in Canadian Shipyards.
BC Ferries’ long term vessel and marine structure replacement strategies allows the Province of British Columbia to budget accordingly and facilitates economic growth in the Marine industry and other business sectors within Province.
Route/Vessel Plan:
- Each Route will develop short term and long term strategic plans.
- These plans will outline the economic life span of assets that is developed with the Stakeholders.
- The Route Plans will also review service levels, schedules, vessel lift off capacity required and community expansion.
- The Route Plans will allow for tourism and business development. Communities will know with certainty the service level they will have for a minimum of 20 years in advance.
- The Route Plans will improve labour relations between BC Ferries and its unionized workforce. It will allow employees to develop long term career paths and goals.
- Stability of a long term route plan will create economic opportunities and bring investment to Coastal British Columbia.
Coastal British Columbia and Ferry Dependent Communities will finally share the certainty that those communities served by a highway presently enjoy.
Workforce Sustainability in the Marine Industry:
- Develop an apprenticeship program for Marine Engineers and Deck Officers. Create sea time accrual positions, assist in schooling, and foster a dedicated workforce.
The world wide Marine industry is being faced with a shortage of an estimated 89,000 seafarers over the next decade. BC Ferries will be competing worldwide for licensed officers; but by assisting and developing a motivated, and loyal workforce, BC Ferries can mitigate the impact the shortage will have on its operation.
In summary:
The Save Our Ferries team have drafted Course Correction in the hopes of opening up dialog that will facilitate constructive changes both to the Coastal Ferry Act and to the business model under which BC Ferries operates.
Thank you,
Save Our Ferries |
