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Opinion: Fine print shows how much the government has taken control over the ferry company, even taking control of wording press releases
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VICTORIA — The New Democrats have been touting their $500-million bailout of B.C. Ferries, announced in March, as evidence that the government is doing its bit to help the service through a year of troubles.
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Premier David Eby picked up the theme again Friday, telling reporters that the New Democrats are here to “support” the ferry service as needed.
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But the actual terms of the $500 million transfer is such that the money isn’t available yet.
Nor can the funds be used for purposes like — to mention three current challenges — recruiting staff, expanding the fleet or developing a website that actually works.
When the premier announced the half-billion-dollar giveaway to Ferries back in March, he said the funds could mainly be used to limit fare increases.
The ferry corporation was forecasting annual fare increases averaging 10 per cent for the four-year period starting April 1, 2024.
The government’s goal was to hold the increases “below three per cent a year,” subject to final approval by the independent ferry commissioner.
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A second condition said some of the money could be used “to support greenhouse-gas-emissions reduction through electrification of vessels and other initiatives to green the fleet and operations.”
The announcement led to a lively debate in the legislature over how the New Democrats decided on half a billion dollars as opposed to some other number.
“Was there a specific request from B.C. Ferries for this $500 million?” asked Opposition MLA Peter Milobar.
“No there was not,” replied Transportation Minister Rob Fleming.
How then did the New Democrats come up with the amount?
“That policy direction was determined by the finance minister and the premier,” said Fleming, all but admitting that he and his ministry had little to do with it.
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“How did $500 million get calculated as the money B.C. Ferries actually needed?” continued Milobar.
“The number was arrived at by looking at information that was known to government and that was provided by B.C. Ferries,” replied Fleming.
No strings attached? There would be strings, said Fleming.
“A contribution agreement will be drafted and completed, flowing the legal authority for these funds — that will be done and completed by March 31.”
The text of that agreement, running some 16 pages, is posted on the Transportation Ministry website.
The first thing that stands out is that the money is not available for use until the four fiscal years beginning April 1, 2024.
The payment schedule provides $50 million in the first year, $100 million in 2025, $150 million in 2026 and the final payment of $200 million in the 2027-28 financial year. The money is available on Sept. 30 of each of those years, so the first payout is still a year and two months away.
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The text provides some leeway for B.C. Ferries to amend the payment schedule so long as it does not exceed the grand total.
The money can only be used for one of two purposes: to limit fare increases and to reduce greenhouse gas emissions.
Any amounts not used for those purposes and left over at the March 31, 2028, end of the four-year term must be paid back.
In return, B.C. Ferries agrees to provide progress reports on how the money is used. Nor will it reduce service levels or the sailing schedule during the four years it is making use of the provincial government handout.
The most revealing part of the agreement — revealing in what it says about NDP government’s political intentions — is the section dealing with public statements about the $500 million.
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“B.C. Ferries will not issue news releases, media statements nor make any public statements or speeches with respect to this agreement about the contribution, its annual instalments or provincial involvement in the initiatives without the province’s prior written approval, which may be withheld by the province at its discretion.”
B.C. Ferries is obliged to provide the province with “all relevant news releases, media statements and speeches” at least three working days before any scheduled release.
Moreover “B.C. Ferries will not use any logo, trademark, official mark or other branding of the province except in accordance with the province’s written approval.”
The corporation is further bound to use such branding strictly “in the form provided by the province and to comply with the graphic standards and any conditions communicated by the province to B.C. Ferries from time to time.”
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Last — but surely not least — in every statement it makes regarding the disposition of the province’s half-a-billion dollars, B.C. Ferries must include the following words: “We gratefully acknowledge the financial support of the province of B.C. through the Ministry Of Transportation And Infrastructure.”
On Friday, Eby repeated the familiar line that the ferry corporation “is independent of government.”
Increasingly it is not.
The New Democrats asserted political control over the ferries last year when they put Joy MacPhail on the board and she fired the CEO.
This year, with the terms of the $500 million bailout, they’ve taken control of the ferry service’s priorities and even dictated what words the corporation can use in speeches, statements and news releases.
vpalmer@postmedia.com
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