The British Columbia government will eliminate free ferry rides for seniors, introduce gambling on some sailings and reduce a host of minor routes as part of cutbacks announced today.
The changes will see free ferry rides for seniors eliminated, with the elderly now paying 50% of regular fares on major and minor routes, said Transportation Minister Todd Stone. Previously, seniors sailed for free Monday to Thursday. The move will save $6 million a year.
"All savings would be redirected to the ferry transportation fee…thereby reducing the pressure for fare increases beginning in 2016," said Stone.
The government is also "considering" a pilot project to introduce slot machines on sailings between Swartz Bay and Tsawwassen.
"Gaming revenue would also be used to help reduce the pressure on fares," said Stone.
BC Ferries is also slashing minor coastal routes, with the Skidegate-Alliford Bay, Port Hardy-Prince Rupert, Skidegate-Prince Rupert, Texada Island-Powell River and Gabriola Island-Nanaimo Harbour routes hardest hit, with as much as 35% cuts to sailings.
"These are tough decisions and there will be impacts," said Stone.
The Port-Hardy to mid-coast to Bella Coola route will be cancelled entirely during summer months, the government said.
The changes come into effect in April 2014.
The major routes between Nanaimo, Victoria and the Lower Mainland will also be changed to save $4.9 million by 2016, the government said, though few details were released.
Additional savings will also be found on major routes, particularly Departure Bay to Horseshoe Bay and Duke Point to Tsawwassen, where the government will re-evaluate how to connect mid-Vancouver Island ferries to the mainland.
The cutbacks come as part of $18.9 million in savings the government has ordered BC Ferries to find during the next three years. The amount was originally higher, but the Liberal government forgave an additional $7.1 million in proposed cuts shortly before the May provincial election.
The route reductions are necessary because the quasi-private ferry company – which receives more than $180 million a year in government subsidies – is facing historically low ridership and billions in debt, the government has said.
BC Ferries has spent the last several years being urged by government to cut internal costs as it tries to limit millions in annual losses.
The ferry company posted what it called a "modest profit" of $15 million in the last fiscal year, though critics noted it was only possible because of an extra $21.5 million in government subsides, as part of an $80 million four-year bail-out package.
Service adjustments to specific coastal ferry routes
B.C. has set an objective of $18.9 million in total net savings to be achieved through service reductions by 2016. The prime focus is on lower-use round trip sailings on the minor routes, and on the higher-cost northern routes, accounting for $14 million in net savings. These service adjustments will be implemented in 2014.
BC Ferries will also be implementing further changes to the major routes prior to April 2016 (Departure Bay to Horseshoe Bay, Tsawwassen to Swartz Bay, Tsawwassen to Duke Point) to achieve $4.9 million in savings by 2016. Minor and northern routes will not be affected by these changes.
In addition, analysis will continue on opportunities to achieve additional savings and efficiencies, beyond the initial $4.9 million in reductions announced today, on the major routes, particularly Route 2 (Departure Bay to Horseshoe Bay) and Route 30 (Duke Point to Tsawwassen). Analysis will continue of opportunities to achieve additional savings and efficiencies on Southern Gulf Island routes.
Routes affected:
Langdale - Horseshoe Bay
Annual utilization rate: 54.5 per cent
Annual contracted round trips: 2,985
Annual round trip reductions: 40 (1.3 per cent)
Estimated net savings to 2016: $200,000
Vesuvius Harbour - Crofton
Annual utilization rate: 35.5 per cent
Annual contracted round trips: 5,046
Annual round trip reductions: 605 (12 per cent)
Estimated net savings to 2016: $210,000
Earls Cove - Saltery Bay
Annual utilization rate: 26.3 per cent
Annual contracted round trips: 2,878
Annual round trip reduction: 365 (12.7 per cent)
Estimated net savings to 2016: $750,000
Horseshoe Bay - Bowen Island
Annual utilization rate: 50.7 per cent
Annual contracted round trips: 5,569
Annual round trip reductions: 234 (4.2 per cent)
Estimated net savings to 2016: $270,000
Tsawwassen - Southern Gulf Islands
Annual utilization rate: 42.2 per cent
Annual contracted round trips: 830
Annual round trip reductions: schedule change only; no round trip reductions
Estimated net savings to 2016: $180,000
Port Hardy - Prince Rupert
Annual utilization rate: 39 per cent
Annual contracted round trips: 122
Annual round trip reductions: 39 (32 per cent)
Estimated net savings to 2016: $3,820,000
Skidegate - Prince Rupert
Annual utilization rate: 42.5 per cent
Annual contracted round trips: 191
Annual round trip reductions: 52 (27.2 per cent)
Estimated net savings to 2016: $1,900,000
Comox - Powell River
Annual utilization rate: 29.6 per cent
Annual contracted round trips: 1,460
Annual round trip reductions: 94 (6.4 per cent)
Estimated net savings to 2016: $720,000
Texada Island - Powell River
Annual utilization rate: 25.6 per cent
Annual contracted round trips: 3,648
Annual round trip reductions: 834 (22.9 per cent)
Estimated net savings to 2016: $950,000
Gabriola Island - Nanaimo Harbour
Annual utilization rate: 45.5 per cent
Annual contracted round trips: 5,732
Annual round trip reductions: 834 (14.5 per cent) Estimated net savings to 2016: $800,000
Chemainus - Thetis - Penelakut
Annual utilization rate: 29.1 per cent
Annual contracted round trips: 4,380
Annual round trip reductions: 417 (9.5 per cent)
Estimated net savings to 2016: $160,000
Buckley Bay - Denman Island
Annual utilization rate: 41.2 per cent
Annual contracted round trips: 6,149
Annual round trip reductions: 888 (14.4 per cent)
Estimated net savings to 2016: $660,000
Hornby Island - Denman Island
Annual utilization rate: 38.1 per cent
Annual contracted round trips: 4,482
Annual round trip reductions: 422 (9.4 per cent)
Estimated net savings to 2016: $360,000
Quadra Island - Campbell River
Annual utilization rate: 41.9 per cent
Annual contracted round trips: 6,253
Annual round trip reductions: 468 (7.5 per cent)
Estimated net savings to 2016: $370,000
Skidegate - Alliford Bay
Annual utilization rate: 20.2 per cent
Annual contracted round trips: 4,482
Annual round trip reductions: 1,564 (34.9 per cent)
Estimated net savings to 2016: $1,200,000
Port Hardy - Mid Coast - Bella Coola (summer only)
Annual utilization rate: 29.5 per cent
Annual contracted round trips: 39
Annual round trip reductions: route to be cancelled
Estimated net savings to 2016: $1,450,000
*The current winter connector service by the Nimpkish will be extended year- round, connecting Ocean Falls, Shearwater and Bella Coola to Bella Bella and the north-south Prince Rupert to Port Hardy service.
