BC Ferries Welcomes Efficiency Report Findings
BC Ferries’ President and CEO Mike Corrigan said he welcomes the BC Ferries Commissioner’s Performance Review of the Efficiency of BC Ferries, along with several other review and assessment reports released today.
“In his efficiency assessment of the company, the Commissioner re-confirmed that BC Ferries is well-run, that we demonstrate good cost control and that we have a strong culture of efficiency,” said Mike Corrigan, BC Ferries’ President and CEO.
The efficiency assessment also indicates that: administrative expenses have declined by 15.1 per cent since 2009; executive compensation is at the low end of the four largest provincial crown corporations that BC Ferries was compared with and is appropriate for an organization of its size and complexity; the management structure is appropriate; and overtime hours and absenteeism rates have declined. The assessment of BC Ferries Vacations also indicates that the business case for the service is sound given the consumer take-up since the inception and the high level of participation by hotel and destination partners.
“On behalf of the Board, I want to acknowledge the achievements of President and CEO, Mike Corrigan and the executive management team for exercising strong financial leadership and all of BC Ferries’ employees for their contribution towards realizing cost savings throughout the organization,” said Donald Hayes, Chair of the Board of Directors of BC Ferries. “The team has been navigating through challenging times and with perseverance, has accomplished outstanding results.”
The Commissioner also released the Preliminary Decision on Price Caps for the Fourth Performance Term, in which he has set the increase in price caps (or average fare increases) at 1.9 per cent per year from April 1, 2016 through March 31, 2020.
“These price caps establish rate stability and certainty for ferry travellers for the four years beginning April 2016. In an environment with a $3 billion capital program required, coupled with significant costs to deliver safe and reliable ferry service, being able to keep fares at or below the rate of inflation is a major accomplishment,” said Corrigan.
BC Ferries supports the Commissioner’s comments that all the key stakeholders had a role to play in making the ferry system financially viable for the operator, sustainable for the taxpayer and affordable for the ferry user. The government amended the legislation to expand the powers for British Columbia Ferry Services Inc., 500-1321 Blanshard Street, Victoria, BC V8W 0B7 oversight by the Commissioners and provided $86 million in new funding over Performance Term Three. BC Ferries expects to significantly exceed the $54 million efficiency target set by the Commissioner for Performance Term Three by approximately $30 million, and ferry users are adapting to revised service levels, which has improved capacity utilization.
The role of the Commissioner is to balance the interests of ferry users, taxpayers and the financial sustainability of the ferry operator. Customers have been calling for lower fare increases and these price caps are approximately at the rate of inflation.
Under contract to the Province of British Columbia, BC Ferries is the service provider responsible for the delivery of safe, efficient and dependable ferry service along Coastal British Columbia.
