BC Ferries fare-setting process under review

B.C.'s independent ferries commissioner is launching a review of the way ferry fares are set, sayingpassengers are very concerned aboutincreases.

"I think it's fair to say that if increases are necessary that they need to be reasonable, affordable and predictable," Ferries commissioner Gord MacAtee said Thursday.

In February, BC Ferries CEODavid Hahn suggested some fares would have to doubleover the next four years unless the government increases the corporation's subsidy.

MacAtee said he can't recommend a bigger subsidy or set the company on a different course, but he will review the Coastal Ferry Act, which sets down the rules for the ferry system.

He also said he'll take a hard look at the way fares are setincluding the protocols of his own role as independent commissioner, who putsa cap on fare hikes.

Hahn said he welcomes a review of the fare structure, but noted that the company has little control over many of the costs.

"I think there's going to be some limited options on what can be done," said Hahn. "A classic example would be the cost of fuel: in 2004 it cost the company $50 million a year. This year it's $120 million."

B.C. Transportation Minister Blair Lekstrom said everything is on the table and he won't prejudge the outcome.

The review is to be completed in about six months.