A report to UBCM aims to quantify damage to the provincial economy from reduced use of B.C.'s ferry system.

Analyst stands by report on ferry fares impact

Coastal communities want province to rethink fare hikes based on economic damage

The author of a study that estimates rising ferry fares have seriously damaged the provincial economy is standing by his conclusions in the face of sharp criticism from Transportation Minister Todd Stone.

Peter Larose projected 31 million more passengers would have taken BC Ferries over the last 10 years had the province kept fare hikes to the rate of inflation.

He pegged the losses at $2.3 billion in economic activity and $610 million in taxes to various levels of government.

“I have extreme confidence in the results,” Larose said, adding they are more likely an underestimate. “I think it’s probably significantly higher.”

He spoke to a policy session at the Union of B.C. Municipalities convention in Whistler Tuesday after Stone issued a letter and took to the airwaves to condemn the UBCM-sponsored study.

“It is unfortunate that the analysis speculates on what might have been, rather than providing any concrete solutions on how to take the coastal ferry system into the future in a cost effective and sustainable way,” Stone said in a Sept. 19 letter to UBCM’s president.

The minister said the study failed to properly consider various factors, from the effects of the 2008-09 global recession to rising fuel prices and demographic changes.

He said it was “irresponsible” and “unproductive” for UBCM to release the “unsubstantiated and sensational” estimates.

Stone’s letter also said the analysis was flawed because it assumed all the money not spent due to reduced ferry travel went out of the province, instead of being spent in B.C. in other ways.

Larose sought to reassure UBCM delegates that his projection is correct and doesn’t mean the economic damage in coastal B.C. is being offset by gains in other parts of the province.

But Tofino Coun. Ray Thorogood questioned that logic, arguing Lower Mainland residents deterred from a trip to Vancouver Island by high fares might instead head east to the Okanagan.

“We’re not saying this is the be all and end all of all analysis,” said Campbell River Coun. Claire Moglove, who sits on the UBCM committee that commissioned the work.

She said the aim is to do further work and engage the province in a real dialogue on stemming the decline in BC Ferries ridership.

“What we want from the provincial government is to sit down and start talking about solutions.”

Moglove added that UBCM decided to probe the impact of high fares because the province wouldn’t.

UBCM delegates vote Wednesday on a resolution in response to the findings.

Current rate caps allow for maximum increases of four per cent this year and 3.9 per cent in 2015.

Just Posted

Tal Bachman, Lance Lapointe head to Duncan Brew Pub with Hometown Hockey

The event includes prizes and a silent auction, with all proceeds going to support KidSport Cowichan

Column: Connie Kaldor, Robbie Burns and more headed to Cowichan

Last minute notice of two great acts at the Duncan Showroom tonight

PHOTO GALLERY: Who’s playing? Lake Cowichan kids love hockey

all of Lake Cowichan’s hockey teams are getting ready for the association’s… Continue reading

Lake Cowichan hockey jamboree ready to take the ice

All six age groups will play games at the Cowichan Lake Sports Arena over the course of the day

B.C. cougar kitten rescued after mother struck by vehicle

Conservation Officers find home for young kitten found dehydrated and frostbitten near Williams Lake

Plan your Hometown Hockey weekend

Find your favourites on the Hometown Hockey schedule

Hometown Hockey: Cowichan Capitals events

On Jan. 20 there will be special features during the game for Hometown Hockey

VIDEO: Storm watching at Pacific Rim National Park Reserve

Some local surf beaches near Tofino have even beenclosed due the the large swell forecast.

Animal protection group urges B.C. vet association to ban cat declawing

Nova Scotia was the first Canadian province to ban declawing

Barenaked Ladies, Steven Page, to be inducted into Canadian Music Hall of Fame

Canadian band to get top honours at 2018 JUNO Awards

B.C. out of the running for Amazon’s next headquarters

Toronto is the only Canadian city left in the running despite the province backing Metro Vancouver’s bid for new Amazon headquarters

B.C. hockey player nominated for Hobey Baker Award

Myles Powell is a forward at Rochester Institute of Technology

Post interest rate hike debt tips

What to do about your debt and mortgages after the interest rate hike

Most Read