Re: My Latest Complaint To Keep BC Ferries Prices Down

M. Shawn DeWolfe — Mon, 21 Feb 2011 14:58:16 -0000

Here is the response received from BC Ferries Commission. Personally, I don't see much distinction from the BC Ferries Commission and BC Ferries:

I am responding to your recent email regarding the threat of higher fares
on BC Ferries.

You have questioned the need for an increase in fares based on low rates
of inflation and the current economic climate. While inflation is one
factor in considering a possible fare increase, by far the driving force
in potential fare increases in the future is the fact that BC Ferries has
invested heavily ($1.5 billion)over the past seven years in new
replacement vessels and terminal upgrades. This investment in
infrastructure has raised BC Ferries' interest and amortization costs
significantly and under the Coastal Ferry Act BC Ferries is entitled to
recover these higher costs under price cap regulation.

The Ferry Commission's role is to determine the reasonableness of BC
Ferries costs and the allocation of those costs to the various route
groups. We are presently reviewing all of the information submitted by BC
Ferries in connection with our price cap review for the third performance
term which commences April 1, 2012. Our preliminary decision on the price
caps for the third performance term is due on March 31, 2011. This is
followed by a 90 day period to allow BC Ferries and the government to
consider any amendments to their contract regarding subsidy or service
levels. This is also the period in which the Commission will invite
comments and consider public feedback that we receive.

On the matter of cancelling the current service agreement I assume you are
referring to the Coastal Ferry Contract between the provincial government
and BC Ferries. Please be advised that the Ferry Commission has no
authority to cancel any such agreement or contract.

I wish to thank you for contacting the Commission and encourage you to
provide any further comments once our preliminary price cap decision is
released.

Regards,
Sheldon Stoilen
Deputy Commissioner

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Re: My Latest Complaint To Keep BC Ferries Prices Down