BC Ferries surcharge hike ‘a bit suspicious,’ NDP says

Published: November 28, 2011 5:55 a.m.

Last modified: November 28, 2011 10:20 a.m.

Fuel-surcharge increases announced by BC Ferries on Friday could be illegal, the B.C. NDP says.The price hike, which the Crown corporation blames on the rising cost of marine diesel, will raise the existing surcharge to five per cent from 2.5 per cent on the three major routes connecting Vancouver Island to the mainland. It will also introduce a new 2.5 per cent surcharge on the Horseshoe Bay-Langdale route.

NDP ferries critic Gary Coons said that under legislation passed last year, “in my mind, (it’s) illegal to put in any fuel surcharges until October 2012.”

The legislation in question suspended BC Ferries’ power to make “extraordinary price cap increases” to account for costs such as fuel.

“A lot of people are seeing this as a last-minute cash grab by BC Ferries to try and do something with their $20-million deficit,” Coons added.

A BC Ferries press release notes that its annual fuel costs have ballooned to a projected total of more than $120 million this year, up from $45.9 million in 2003. That’s despite the corporation having reduced fuel consumption by five per cent over that time.

Coons also questioned the timing of the hike, which takes effect on Dec. 12.

“It’s just before Christmas, when people are trying to deal with travel and the cost of the December Christmas season,” he said. “I think it’s a bit suspicious that this is happening now.”