Dear Minister Lekstrom,
I’m writing in regards to the B.C. Ferries extraordinary price cap increase (fuel surcharge) that will take effect today on several routes.
The cost of boarding B.C. Ferries has risen too much, too quickly. More and more people are deciding to stay home because the amount British Columbians have to pay at the ticket booth has been priced out of their family’s budget.
When the B.C. Liberals privatized our ferries in 2003, section 42 of the Coastal Ferries Act said an extraordinary price cap increase must not be authorized except in situations such as “an extraordinary increase in the price of any non-controllable input such as fuel.”
Therefore, for this extraordinary price cap increase to be allowed, B.C. Ferries must be claiming that it is due to an extraordinary increase in the price of fuel.
However, Deputy Commissioner Sheldon Stoilen said in defence of the price cap increase that “because of the frequent fluctuations in the price of fuel, these should no longer be considered to be extraordinary.”
If the increase in the cost of fuel is not extraordinary, then it would seem the price cap increase should not be allowed under the Coastal Ferries Act at all.
Further, the Coastal Ferry Amendment Act, 2011 says “The Coastal Ferry Act, S.B.C. 2003, c. 14, is amended by adding the following section:…(4) Sections 42 and 44 (2) to (11) do not apply until October 1, 2012.”
So it seems clear that whether the increase to the cost of fuel is extraordinary or not, a price cap increase should not be allowed until October 1, 2012.
As the minister of transportation responsible for recent legislation claiming to put a stop to extraordinary price cap increases, is it your position that the surcharge or price cap increase implemented today is allowed under current legislation?
If so, could you please clearly point out which piece of legislation allows for this price cap increase, and specifically which section?
Finally, since 2003 there have been two kinds of increases to the cost of boarding B.C. Ferries: the cost of the regular fare that increases every April, and extraordinary increases to the price cap (surcharges) due to extraordinary increase to the cost of fuel.
Seeing as both are expected to increase before Oct. 1, 2012, exactly what type of increase was your legislation (the Coastal Ferry Amendment Act, 2011) expected to stop?
Since the price cap increase was announced, there has not been a clear explanation from your office on this matter, and because the charge is taking effect as of today, we are hoping for a timely response to this matter.
Sincerely,
Gary Coons, MLA
North Coast
Official Opposition Critic for BC Ferries and Coastal Communities