It's been clear sailing for eight years for BC Ferries in setting fares, but the government dropped the anchor on Tuesday, introducing legislation that temporarily caps fare increases.
Under the bill introduced Tuesday, fares will rise by 4.15 per cent next year, but further proposed hikes are on hold and BC Ferries will be prevented from cutting sailings. Meanwhile, a service review prompted by public concerns over fare increases will get underway.
Transportation Minister Blair Lekstrom said he wants fare stability at the privately-operated, but government-supported company.
Independent Ferry Commissioner Gord Macatee was recently tasked with reviewing the ferry system, which is one of the largest in the world, serving more than 20 million customers annually.
Last week, the government announced Macatee's review will focus on fare hikes and how they affect coastal communities.
The Macatee review was announced after Lekstrom objected to the ferry company's plan to raise rates four per cent on major routes each year for the next three years and eight per cent on minor routes.
"We have to find ways to make sure that this system not only is one of the best in the world, but that it's affordable and sustainable," Lekstrom said Tuesday.
"That's the view and the lens the commissioner is looking at."
Lekstrom introduced legislation to amend the Coastal Ferry Act, which governs the ferry system, to allow Macatee to conduct the review.
Under the legislation, the government will set the interim fare hike cap on all routes for 2012-2013 and prevent BC Ferries from cutting sailings until a final decision on price caps is made.
The law would also prevent BC Ferries from asking for extraordinary increases in the fare cap until the commissioner completes his work early next year.
The legislation gives Macatee the power to recommend changes to better balance the interests of ferry users with the financial needs of BC Ferries, said Lekstrom.
Prior to 2003, the government set ferry rates, but under the Liberals, BC Ferries started to operate as a private company, which included turning terminals into marketplaces and controlling fares.
BC Ferries was not immediately available for comment.
This summer a family of four -- two adults and two children -- travelling by vehicle between Swartz Bay near Victoria to Tsawwassen near Vancouver will pay $92.40 one way.
