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Old Posted Aug 11, 2020, 2:05 AM
Sheba Sheba is offline
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Feds to bail out B.C. Ferries

...but Greens still want it returned to government

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B.C. Ferries will receive federal financial assistance from Ottawa, but the corporation’s long-term stability will only be secure once it is brought back into government, says the interim leader of the B.C. Greens.

Federal Environment Minister Jonathan Wilkinson and B.C. Transportation Minister Claire Trevena will announce Tuesday morning that B.C. Ferries is eligible for the same matching federal and provincial financial assistance already earmarked for B.C. Transit and TransLink.

The money is designed to help public transit agencies recover some of the operating revenue lost by COVID-19.

The funding would end weeks of private appeals to Ottawa by Premier John Horgan and top B.C. officials that B.C. Ferries be given federal transit bailout funds under Ottawa’s Safe Restart program with provinces. The two governments have set aside $1.2 billion in matching funds for transit aid.

B.C. Ferries has lost $130 million in expected revenue since the pandemic started in March due to a sharp decline in ridership, the elimination of numerous sailings and recommended travel restrictions by health officials. The corporation has said its financial situation is dire and it is only continuing to operate by increasing its debt and deferring plans to upgrade terminals and ships.

Even if Ottawa offers financial aid, there needs to be a better long-term solution for B.C. Ferries to give coastal residents confidence the system can survive emergencies like the pandemic, said Adam Olsen, the interim Green leader and MLA for Saanich North and the Islands, whose riding includes numerous ferry-dependent Gulf Islands.

Olsen said the government should bring ferries back into the Ministry of Transportation and fund it as a core marine highway system — something Transportation Minister Claire Trevena proposed while in Opposition but has not done since becoming minister.

“It would be part of the government operations, so rather than saying those guys (at B.C. Ferries) over there have to figure it out, the onus would be on the government to ensure that that system is provided the services it needs now, but also has the resources in place to be able to improve the service,” said Olsen.

“I think it would be the responsibility of the government to deliver the transportation network that our province and economy requires.”

Olsen said it was bad news that Ferries has put off upgrades.

“Those capital investment programs are very important to ensure the longevity and the future of the ferry system,” he said. “We might be saving ourselves an expense now but it is going to come back to haunt us. This situation is going to create a long-term problem.”

If government won’t return ferries to the ministry, it could consider making it a full-fledged Crown corporation, said Olsen.

The province provides $200 million annually to B.C. Ferries. It added $180,000 in COVID-19 financial relief during the pandemic to temporarily stave off cuts to 11 smaller coastal routes.

B.C. Ferries used to be inside government but was spun off in 2003 as a private corporation with a single share, owned by the province. It meant B.C. Ferries’ debt, $1.4 billion, is not counted on the B.C. government’s books.

Trevena was not available for an interview Monday but said in a statement that while there have been some complications as a result of the pseudo-private structure of BC Ferries, the province has still managed to reduce fares by 15 per cent and resume discounts for seniors.

One-third of B.C.’s economy is connected by the ferry service and COVID-19 has exposed how fragile that system is, said Olsen.

“I think the core of what I’m saying here is, it is our responsibility,” said Olsen. “To just brush it off as something that a semi-corporate entity is going to take care of, or the federal government is going to step in and bail out … a point that is at the core of my constituents is that people want to feel that we are taking responsibility for this.”

I foresee the Greens making a big deal of this about a year from now, just before the next provincial election.
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Old Posted Aug 11, 2020, 4:33 AM
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chowhou chowhou is offline
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Now I understand the arguments for privatization of certain services, but it feels to me that core infrastructure (and BC ferries is; Departure Bay - Horseshoe Bay is considered part of the Trans-Canada Highway and all routes are critical for the economic wellbeing of the communities connected) should be provided and maintained by the government for the social and economic benefit of the communities involved. I could easily see the current admin re-nationalising (provincialising?) BC Ferries.
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Old Posted Aug 11, 2020, 5:19 AM
jollyburger jollyburger is offline
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Originally Posted by chowhou View Post
Now I understand the arguments for privatization of certain services, but it feels to me that core infrastructure (and BC ferries is; Departure Bay - Horseshoe Bay is considered part of the Trans-Canada Highway and all routes are critical for the economic wellbeing of the communities connected) should be provided and maintained by the government for the social and economic benefit of the communities involved. I could easily see the current admin re-nationalising (provincialising?) BC Ferries.
I don't know what the arguments were for privatizing BC Ferries, but I doubt making it a crown corporation will change how they plan on making money and funding upgrades.
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Old Posted Aug 11, 2020, 6:52 AM
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chowhou chowhou is offline
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Originally Posted by jollyburger View Post
I don't know what the arguments were for privatizing BC Ferries, but I doubt making it a crown corporation will change how they plan on making money and funding upgrades.
BC Ferries was privatized so the BC Liberals could pass off government debt, not really any other reason.

The thing about core infrastructure (roads, power generation and transmission, port authorities, and some would say rail and telecommunications) is that it doesn't have to necessarily turn a profit to facilitate and amplify economic activity. No one complains that the Ministry of Transportation isn't making money off of Highway 1, but we'd be damned as a province if we didn't have some way to move people and products across province.
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Old Posted Aug 11, 2020, 3:03 PM
WarrenC12 WarrenC12 is offline
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Does it really matter if it's a Crown Corp or a private corp with the province as the only shareholder? Apart from where the debt number sits?

Seems like a silly distinction to me. It's still beholden to a big union, Transport Canada safety rules, and it's a piece of critical infrastructure with minimum levels of service.

Do the Greens feel the same way about BC Hydro? If so, why?
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Old Posted Aug 11, 2020, 6:20 PM
whatnext whatnext is online now
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Originally Posted by jollyburger View Post
I don't know what the arguments were for privatizing BC Ferries, but I doubt making it a crown corporation will change how they plan on making money and funding upgrades.
It was just typical BC Liberals' smoke and mirrors to give the illusion they were more fiscally responsible. That and tricks like raiding ICBC for "dividends".
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Old Posted Aug 11, 2020, 6:24 PM
teriyaki teriyaki is offline
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Well weren't there a large contingent of people that believe anything the government touches turns into a rock, and anything that is privatized is suddenly efficient and profit-making? I recall the calls to blindly "privatize this, privatize that".
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Old Posted Aug 12, 2020, 12:13 AM
jollyburger jollyburger is offline
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Originally Posted by teriyaki View Post
Well weren't there a large contingent of people that believe anything the government touches turns into a rock, and anything that is privatized is suddenly efficient and profit-making? I recall the calls to blindly "privatize this, privatize that".
BC Ferries still seems to be more "crown corporation" than anything resembling a privatized company.
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