Ferry prices affect economy
Powell River and Texada Island’s ferry ridership has dropped during the past decade, with fare increases being credited as the culprit.
This series of ferry fare increases has resulted in a $2.3-billion reduction in British Columbia’s GDP (gross domestic product) over a 10-year period, according to a new report that examines the socioeconomic impact of BC Ferries’ fare increases from 2003 to 2013. Over the whole BC Ferries system, during that 10-year span, there has been a drop in ridership of 1,448,432 passengers.
The report, Boatswains to the Bollards: A socioeconomic impact analysis of BC Ferries, was commissioned by the Union of BC Municipalities (UBCM) and the Association of Vancouver Island and Coastal Communities (AVICC). To the knowledge of both organizations, this is the first analysis of the socioeconomic impact of BC Ferries that has been made available to the public.
The report found that BC Ferries stimulates a total of $1.8 billion in expenditures each year, which in turn produces $1.5 billion in total value-added GDP for BC.
The report estimates that if fare increases from 2003 to 2013 had been limited to the rate of inflation, passenger volumes would have grown by 19 per cent, adding $2.3 billion to provincial GDP over that 10-year period. Instead, overall ridership over the same period declined by 11 per cent. This resulted in an estimated total loss of $609 million in tax revenues from 2003 to 2013 at the federal, provincial and local levels of government.
“The release of this report provides an opportunity to re-think the policies that direct the funding of BC Ferries,” said Rhona Martin, UBCM president. “This study demonstrates a clear link between fare increases and declining ridership, and the cost of those fare increases to the provincial economy. As a first step toward reversing the trend in ridership, we are asking the province to restore fares and service to 2013 levels.”
“The findings of the study show that we already have an efficient system in terms of cost recovery,” said Larry Cross, mayor of Sidney and AVICC president. “What is missing is recognition by the province that ferry service is an extension of the highway system and needs to be funded accordingly.”
The report will be considered by the membership at UBCM’s annual convention in Whistler next week, September 22 to 26.
Powell River Regional District Chair Colin Palmer was a member of the UBCM / AVICC special committee on BC Ferries but was not available for comment before press time.
Wakeup call for sustainability
An event to explore community ideas and input around the future of Powell River is open to the public.
City of Powell River will host a community open house to discuss the integrated community sustainability plan (ICSP). Representatives from Whistler Centre for Sustainability will facilitate the open house and lead attendees through individual reflection to prioritize goals and share Powell River’s greatest assets.
“This is an opportunity to learn about an ICSP and to review goals for Powell River,” said Dan Wilson, sustainability planner and tourism specialist with the Whistler centre. “The goals came from the sustainability charter and sustainable official community plan.”
The highest principles and goals from those two documents are merged together into an overarching policy framework to be applied to other municipal and partner plans, he said.
“There are lots of ideas out there on how Powell River can be a more thriving community and this is partially about clarifying priority goals,” said Wilson.
The open house takes place from 5 to 7 pm Tuesday, September 16, at Dwight Hall. Greatest success of the event will be through community input, so everybody is encouraged to attend. Another opportunity for input is via an online survey, accessed through the city’s website.
