asks for ferries audit

Michael Becker

News Editor
michael@nsnews.com

BOWEN Island resi-
dents angered by ferry
fare increases are asking
the provincial auditor
general to audit B.C.
Ferries.

Chartered accountant
Elbert Paul, a member of the
Bowen Island Ferry Fares
Strategy Committce, applied
for an audit to Auditor General
George Morfitt Tuesday.

Bowen residents are con-
cemed over:
tariff increases;

& reductions in provincial gov-
ernment funding support for
the B.C. Ferry Corporation,

@ management of the $222-
million fast ferries capital pro-
gram;

Boervice levels.

Paul questioned whether
users of the ferry system were
being unreasonably expected
to bear the brunt of the “pub-
lic policy” costs to develop

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shipbuilding infrastructure in
§.C. through the ferry corpo-
ration’s 10-year capital plan.

Paul said the “decision to
create a fast-ferry shipbuilding
industry ... has helped increase
B.C. Ferry" s public debt by
nearly 5,000%, to nearly $700
millior. in the past six years.”

B.C. Ferries financial state-
ments show the corporation’s
long-term debt has increased
from a 1996 figure of $463.6
million to $647.2 million in
1997. Paul would like Morfit
to determine if the corporation
is “managing its human
resources in an efficient and
effective manner.”

Salaries, wages and bencfits
cost the corporation $186.2
million in 1993. In 1997 that
figure had risen to $220.8 mil-
lion.

A key point of contention
for the Bowen group is the
issue of how the ferry corpora-
tion is handling stakeholder
input.

Bowen, Quadra, Galiano,
Denman and Hornby island

residents recently demonstrat-

ed against nwo fare increases
implemented this vear without
the consultation of islanders.

Bowen Islanders — were
socked with a 13% fare hike in
May. On Nov. 14, more rate
increases were announced.

Said Paul in his letter to
Morfitt: “The corporation has
recently gone through an
extensive and expensive consul-
tation process. Has it given rea-
sonable consideration to this
input in its decision-making
pracess? Was this nothing, more
than smoke and mirrors?”

In 1993 the terry corpora-
tion recorded a small net oper-
ating surplus of $142,000. By
fiscal year 1997 that had turned
toa net operating loss of $28.5
million. Victoria subsidized
B.C. Ferries to the tune of $4.7
million in 1997 and $9.4 mil-
lion in 1996. The feds" subsidy
for "97 was $21.8 million and
in °96, $21.3 million.

The Bowen route cost $6.3
million to operate in °97 and
brought in revenue of S44
million, leaving a loss of nearly
$2 million.

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