The Coastal Inspiration pulls into BC Ferries' Tsawwassen terminal.

Province floats gas tax shift to ferries

Transportation Minister Todd Stone's idea for BC Ferries funding called 'red herring'

Transportation Minister Todd Stone is proposing coastal communities turn over federal gas tax transfers they receive to shore up ferry service and help keep a lid on fares.

The idea is getting a cool reception from mayors and councillors in ferry-dependent areas because it would mean the sacrifice of the federal gasoline tax money they now use to fund local infrastructure.

But Stone argued it would not be unlike the decision of Metro Vancouver cities to dedicate all of their federal gas tax transfers to TransLink for public transit.

“Let’s think outside the box,” Stone said Thursday outside the Union of B.C. Municipalities convention.

“(Let’s) have a discussion around gas tax as a potential source of revenue for BC Ferries service, which would have the effect of applying downward pressure on fares.”

Stone said coastal communities get nearly $30 million a year in gas tax transfers, an amount that represents about a sixth of the $180 million a year the province spends to subsidize BC Ferries operations.

He suggested the redeployment of “some if not all” of that $30 million would help meet local demands for basic levels of ferry service.

The proposal would need the support of local communities or else it’s dead in the water, and even then it’s unclear how it might work.

Gas tax transfers are subject to federal rules that allow the money to go only to eligible local capital projects, not to operating expenses or to provincial services.

B.C. cities are lobbying Ottawa to loosen the restrictions on how the money can be spent and Premier Christy Clark said Friday the federal government should “step up” and enable gas taxes as a potential source for the ferry system.

Campbell River Coun. Claire Moglove, co-chair of a UBCM committee on ferry issues, said she doubts Vancouver Island cities would agree to give up gas tax money they rely on for costly local projects such as water systems and sewage treatment plants.

“This gas tax issue is a bit of a red herring,” she said. “This is a provincial transportation system that requires proper funding from the province.”

Moglove said Stone’s reference to the use of the gas tax for transit in Metro Vancouver is “comparing apples and oranges” because taxpayers in all other regions of B.C. pay hospital capital taxes that do not apply in Metro Vancouver, leaving more local taxation room there to fund TransLink.

She said the ferry system has 92 per cent operating cost recovery from fares.

The remaining eight per cent that’s funded by the province – $180 million – is about one third of the $550-million operating budget for the highways system, which Moglove said is generally untolled with no expectation of cost recovery.

“Why do ferry users have to pay 92 per cent of the operating cost of BC Ferries?” she demanded. “Why is it different for the coastal highway – ferries – as opposed to highways in the North, the Okanagan or the Kootenays?”

Stone has been firm that the province won’t raise taxes to fund BC Ferries and that relief from high fares must come through efficiencies.

The transportation minister has been sparring with Island mayors and councillors since the Sept. 10 release of a UBCM study that concluded rapidly rising ferry fares have driven down ridership and damaged the provincial economy.

Just Posted

Man rescued from sinking boat off the coast of Sidney

Mayday call came into Coast Guard saying vessel had taken on water, BC Ferries dispatched to scene

Sailors reunited with family for Christmas in Victoria

HMCS Nanaimo and HMCS Edmonton return following a two-month deployment

Victoria mother concerned by city’s potential straw ban

Carmell Nesbitt’s son has cerebral palsy and can only drink with plastic straws

Victoria breakfast icon is shutting its doors

Floyd’s Diner is closing its Quadra and Yates streets location

Our Place to serve 1,000 plates of Christmas lunch

Volunteers and staff have been working for days to prepare turkey, stuffing and fixings

Victoria Canadian Tire replaces toys stolen from Salvation Army

Children won’t have to go without toys this Christmas

Man rescued from sinking boat off the coast of Vancouver Island

Mayday call came into Coast Guard saying vessel had taken on water, BC Ferries dispatched to scene

Publication ban on name of girl killed in Abbotsford school lifted

Reimer’s family had supported an application by Black Press to lift ban

B.C. securities regulator probes ‘most expansive’ alleged trading scheme in its history

Liht Cannabis Corp states it’s doing internal investigation, welcomes BC Securities Commission probe

Air passenger rights: 6 things about what the Liberals are offering

For 3- to 6-hour delays, compensation is $400. Between 6 and 9 hours, $700. Over 9 hours is $1,000

Descoteau’s mother, girlfriend reflect on tribulations of murder trial in Island city

Friends a strong support system in getting through testimony details

RCMP, civilian vehicles rammed in North Okanagan incident

Police attempt to stop truck near Enderby, thought to be tied to alleged Salmon Arm armed robbery

New biker gang with ties to Hells Angels crops up in Lower Mainland

The Street Reapers were formed late last year and have been seen in Fort Langley.

10-lane George Massey bridge too big, B.C. study says

Consultants say replacement tunnel cost similar to new bridge

Most Read