BC Ferries has reached a "tipping point" of rising fares and declining ridership, and should cut costs or add more subsidy to keep future fare increases to the rate of inflation, BC Ferry Commissioner Gord Macatee says.
Macatee began his term last year with a full-scale review of the ferry system, and delivered a report with 24 recommendations to the B.C. government on Tuesday. He says the government should consider increasing subsidies, reducing sailings on low-ridership routes and making reservations free so BC Ferries can plan its sailing capacity more accurately.
Macatee proposes that BC Ferries reverse its reservation system so people without a reserved spot would pay an extra fee. That, along with varying rates to induce people to travel during off-peak times, could reduce the empty seats and car deck spaces, the report says.
BC Ferries has a lower resident fare for northern routes and discount "experience cards" on minor routes.
"A true yield management system will consist of a range of fares, reflecting demand levels, and therefore the ferry user has a choice between fare level and service convenience," the report says.
Transportation minister Blair Lekstrom said Tuesday it's too early to comment on whether the government can increase the $150 million subsidy that B.C. taxpayers put into BC Ferries annually.
NDP ferries critic Gary Coons also wouldn't say how much more non-ferry users should pay, but he repeated his position that BC Ferries should be treated as part of the highway system, with new ships and terminals financed by taxpayers like highways and bridges.
Fares have increased 47 per cent on major routes and 80 per cent on minor routes since the Coastal Ferry Act set up the current system in 2003.
Macatee estimated that BC Ferries could save as much as $28 million annually by converting its ferries from diesel to liquefied natural gas.
