Fare hikes approved by B.C. Ferries commissioner

TheB.C. Ferriescommissioner has given the green lightfor increases in some fares by up to 27 per cent over four years, starting next spring.

The final price-cap decision by Martin Crilly adjusts his preliminary ruling from last March oncoastal ferryprices.

Starting April 1, fares for the major routes will increase by 6.4 per cent. In each of the subsequent three years until March 2012, the major-route fares can'tincrease by more thanthree per cent ifannual inflation holds attwo per cent or less.

The cost of passage on other ferry routes will rise by four per cent April 1,withincreasescappedat 7.1 per centovereach of the subsequent threeyears, assuming a similar inflation rate.Compounded, that means non-major routes face a 27-per-cent hike by 2012.

Crilly says he approved the hikes because of vessel and terminal renewal, recovery of deferred fuel costs, taxpayer funding not increasing as quickly as costs and general cost inflation.

David Hahn, presidentof British Columbia Ferry Services, warned last week that fuel costs and the need for new shipswould drive fare hikes.

He said the company's fuel bill will be more than $90 million next year, compared to just $45 million in 2002.

New vessels under construction in Germany are much more fuel efficient and should help save some money.

The ships will cost $542 million, with the first arriving this fall and going into service early next year.

B.C. Ferries is also having the German shipyard build a replacement for the Queen of the North, which crashed into Gil Island locatedin the Hecate Straitand sank last March, killing two people.

Equipped with 36 vessels, B.C. Ferries is the primary provider of coastal water transportation in British Columbia.