Updated: Fri Nov. 06 2009 14:52:19

ctvbc.ca

A report released Friday by the B.C. Office of the Comptroller General called for an overhaul of the governance structures of both BC Ferries and TransLink to improve accountability, transparency and oversight.

On Ferries

Looking at the ferry operation, the report stated that the BC Ferry Authority, which holds the single outstanding common share of BC Ferries, should have oversight for and require accountability from the board of directors.

However, the members of the authority have followed the practice of appointing all 9 of its members to the 13-member BC Ferries board, the report stated.

The report recommended that the practice end due to an "inherent conflict."

The report also noted that executive compensation was "significantly higher" than salaries paid by several larger public sector entities. For instance, the BC Ferries chief executive officer's 2008/2009 compensation was $1,035,000 -- more than double the average compensation of CEOs at BC Hydro, ICBC, BC Lottery and WorkSafe BC, the report stated.

The report noted that customer-service levels have remained consistently high over the past five years.

But the report said the commission that regulates BC Ferries could play an expanded role by managing customer complaints and issuing an annual public opinion on how well BC Ferries is carrying out its responsibilities.

On TransLink

Looking at TransLink, the report found "significant operational issues that have gone unaddressed" and inaction by TransLink and the Mayors' Council (which oversees the board) to balance expenses and revenues will result in substantial deficits in 2010 and beyond.

TransLink failed to contain rising costs, resulting in an operating deficit of $130 million annually, the report stated.

The TransLink board has made progress recently by adopting a more business-like approach by providing staff with clear direction in areas such as capital spending and customer focus, the report stated.

The report found that the size of the board is reasonable and their compensation is slightly high. However, the total number of executive in TransLink and its subsidiaries is excessive, the report stated.

The report recommended expanding the role of the commission that regulates TransLink, including giving it the power to oversee costs and service levels.

Tom Prendergast, TransLink president, announced Thursday that he is leaving TransLink at the end of the month to return to New York to serve as president of the New York City Transit Authority.

Ministry response

B.C. Transport Minister Shirley Bond said Friday in a statement that she will review the findings and talk to both agencies before making decisions on the recommendations.

"This review is timely, as it's been six years since BC Ferries was restructured and two years since TransLink was reorganized," Bond said.