BC Ferries rate cut a surprise, says corporation

Premier Gordon Campbell didn't share the details of his plan to cut fares with BC Ferries, even though the company will have to make major changes following the surprise announcement.

Campbell said Wednesday eveningthat BC Ferries fares will be cut 33 per cent in December and January. He also ordered the restoration of three cancelled off-peak sailings on the Horseshoe Bay-Langdale and Horseshoe Bay-Nanaimo routes.

A one-thirdcut in rates would drop the current fare for a car and driver on the main routesfrom $60, including the fuel surcharge, to about $40.

BC Ferries spokeswoman Debra Marshall said the company did not learn about theplans until it heard them on televisionwith the rest of province.

Marshall called the announcement "great news for the travelling public" but noted BC Ferries is waiting for government instruction on how it should implement the changes.

Campbell made the announcement during a live broadcast in which he laidout his plans to fight an expected slowdown in B.C.'s economy caused by the world economic crisis.

The ferry rate cuts are a temporary measure intended to reduce fares over the holiday season after rising fuel prices led to steep increases over the summer, said Campbell.

"It will require $20 million in one-time funding. This will reduce cost for passengers and will act as a bridge until lower fuel prices work their way through to lower ferry fares," Campbell said Wednesday evening.