How the Federal Subsidy works for ferry service in British Columbia

 

“The people of the north believe that $27-million subsidy belongs to them. The company has been playing a shuffle board game with that revenue. It should be put to northern routes. It’s a shell game they have been playing with us for 25 years.”

September 2, 2011 – The Queen Charlotte Observer, “Ferry Commissioner gets an earful from islanders”

 

Here are the documents and some history around the Federal Subsidy for ferry service in British Columbia.

 

Hansard: Morning sitting; February 18,1977

HON. MR. BENNETT: I would hope the economy would be better by then, but that’s a good 31/2 years from now, I suppose. When is it – the fall or December of 1980? A lot can happen between then and now.

The member mentioned the ferry system. I want to make it clear that money was discussed with the federal government and with the minister, Otto Lang. Options were discussed – in fact specifically when I was there the proposal that British Columbia has set forward to Ottawa in regard to the B.C. Ferry system. I have no way of knowing whether we have reached accord or not. We reiterated our position in a very forceful way and in what I think is a very fair way. We haven’t asked for the same type of indiscriminate spending that has been going on with the Atlantic coast by the federal government for the ferry systems there – over $100 million. We haven’t asked for that type of money.

I think they put too much money into the ferry systems there, even though there, as here, they have a commitment under the terms of which some of those areas, like Prince Edward Island, joined Confederation to provide transportation. The federal government also, in the terms by which British Columbia joined Confederation, promised a ferry transport system to the mainland. Now it just so happens that the main point of joining the mainland then by a transportation system was to Olympia, Washington. But the commitment was there to move people to the most advantageous point of the day. That most advantageous point of the day now is an extension of the Trans-Canada Highway from Victoria to Vancouver and Nanaimo to Vancouver, the two main routes. That is a commitment we intend to press. We pressed it most forcefully.

They’ve also had a commitment to help service isolated areas in water transport, as they’ve done on the Atlantic and Pacific coasts. We’ve asked them to consider that.

As I say, they spend over $100 million on the Atlantic coast. We’ve asked for a rationalization of the total service on the Pacific coast. We’ve suggested a single authority – the B.C. Ferry Corporation -would be the ideal vehicle to award new routes and investigate the need for new routes or the upgrading of old or when routes should be taken off as new roads are built in to service remote areas, as the government is doing now into Port Hardy. The road to Port Hardy will eventually remove a ferry system that costs them money.

We sent that proposal in 1976 to the government of Canada and the Prime Minister, and we reiterated it at our meeting with the Hon. Otto Lang. That formula calls for the federal and provincial governments, on a formula, to pick up the deficits of the B.C. ferry system and allow it to develop these routes. Right now we’ve had the federal government withdrawing some service from the northern part of B.C. and leaving people abandoned. Obviously they’re not able to determine the priorities. We have the ideal vehicle and that’s why we’ve suggested the B.C. ferry system to cover all the coast. And we do have available within that B.C. Ferry Corporation additional directorships where we could give area representation on the directorship for the central and north coast, so that they have a voice on that board in directing the Ferry Corporation and directing new routes or directly responding to the needs of the people in those areas.

We’ve received a lot of support for this proposal. The support has come not just from people serviced in those areas but has crossed party lines. I have a letter here signed by T.C. Douglas supporting the British Columbia proposal.

MS. BROWN: You’ll have to investigate that.

HON. MR. BENNETT: He’s very much a spokesman for the Canadian people whom I’ve admired over the years. I haven’t agreed with anything they say but I think I agree more with what he said and what he intended than the actions of the party that pretends to represent them in British Columbia. Anyhow, his letter gives unqualified support for the British Columbia proposal for using the British Columbia ferry system to rationalize the service and the sharing 50-50 of the cost. He said: “I want to assure you that this proposal will have my wholehearted support, as well as that of my colleagues.”

I don’t know how far he extends that circle of his “colleagues” – whether it extends to this provincial House or whether he just means the federal House -but I would certainly welcome that support for the B.C. proposal. He also suggests he would appreciate being kept informed regarding the nature of the Prime Minister’s response. I’ll have to get back to him and give him the additional information we’re sharing with this Legislature, particularly regarding the ferry system.

I’m hopeful that we can resolve that between British Columbia and the government of Canada very quickly, because the people demanding and needing service can’t wait while these delays go on. But British Columbia has, I think, effectively pressed its case at a most opportune time and hopefully the users of the ferry system – and that’s who we’re all concerned about – will be the beneficiaries from

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what has been a transportation tragedy for those who have lost the service because of the actions of the department in doing one action of withdrawing a service before alternate services could have been provided. That was unfortunate. But perhaps this new agreement will be a long-term benefit and a benefit of what was a bad way of federal government handling, withdrawing the moneys that provided transportation in that northern part of our province.

The member for Oak Bay was worried about information and he questioned the system by which the Legislature works. I’m certain we all think it can be improved. I do believe that the British parliamentary system is the best system of a democratic nature available, and it’s only when abuses creep into the system that it starts to fail. That’ll be the responsibility of each one of us. However, one of the luxuries that member has, being by himself, is that he’s free to accept no responsibility. As such, there are some luxuries to being the only one elected from his party. He can get up and talk on every issue without being accountable to colleagues or what-have-you.

 

 

 

 

SUBSIDY AGREEMENT Between THE GOVERNMENT OF CANADA

And

THE GOVERNMENT OF THE PROVINCE OF BRITISH COLUMBIA

B) Canada is desirous of providing financial assistance to the Province
in respect of the provision of ferry and coastal freight and passenger
services in the waters of British Columbia; and

C) The Province agrees to assume sole responsibility for deciding which
services should receive financial assistance and to provide all such
future assistance.

 SubsidyAgreement

 

Evaluation of Transport Canada’s Grant to the

Province of British Columbia for the

Provision of Ferry Services

Departmental Evaluation Services
Transport Canada
June 2005

 Transport Canada Evaluation of Federal Subsidy 2005