The B.C. government is giving BC Ferries an extra $79.5 million over the next four years, and will look for another $45 million in operational savings to bring rate increases down to the rate of inflation over that time.
Transportation Minister Blair Lekstrom said the inflation goal will not be met immediately, even with most of the extra money up front.
The government's price cap of 4.15 per cent increases for all routes remains in place for this year, and B.C. Ferry Commissioner Gord Macatee will set increases for the next three years after consultation with coastal communities.
BC Ferries CEO Mike Corrigan said the corporation expects to cut at least 100 sailings on its major Vancouver Island routes, with low-ridership sailings late in the evening the most likely target.
Corrigan said he is confident service reductions can save $30 million over the next four years, and another $15 million in efficiencies can be found within the corporation's $750 million budget.
Premier Christy Clark said the legislative changes and extra subsidy are designed to meet her commitment to keep fare increases under control, despite declining ridership that is also being seen in Washington state ferries.
"People are just not spending the kind of money traveling that they used to," Clark said.
Lekstrom said the legislative changes will be passed by the end of the spring session May 31. They offer new authority to the ferry commissioner to approve service level changes, and also allow BC Ferries to use revenues from its busy major routes to subsidize lower-volume runs.
NDP ferry critic Gary Coons described the changes as "incremental steps in the right direction." Coons said the ban on cross-subsidization of routes was a mistake that drove steep increases on the smaller routes, and has hurt small communities that depend on ferry service.
Lekstrom said the consultation on changes will begin as quickly as possible, to find out what trade-offs people are prepared to make, such as paying more to retain sailings that are not sustainable now.
Corrigan said longer-term strategies may include modifying ferry docks so they can accommodate more kinds of vessels, and making ferry reservations free so the corporation has a better idea of its passenger and vehicle loads and can plan sailings accordingly.
