B C Ferries taking heat from all sides.

They have collected a princely sum of cash from an insurance settlement, they are receiving payments for runs that they can’t actually complete at the moment and they’re charging more and more for those passengers that can book a reservation to sail on their vessels.

There’s a lot of money coming in at the moment and not a lot going back into the communities that they serve. Making for a situation that is causing more than a few people to wonder what exactly is going on at the B. C. Ferry Corporation these days.

And as if there wasn’t enough attention on the daily happenings at the Ferry Corporation, today a former safety director of the company spoke out, filing a lawsuit claiming that the corporation did not listen to his warnings that a catastrophic accident was just waiting to happen.

Darin Bowland, who resigned after the sinking of the Queen of the North ferry in March, has filed a writ of summons in B.C. Supreme Court, claiming damages for negligent misrepresentation, wrongful dismissal and loss of reputation.

His lawsuit makes for a story that is guaranteed to be leading the news for the foreseeable future. It will also shine the already hot spotlight squarely on the workings of the B. C. Ferry Corporation, which so far has been pretty good at deflecting a lot of the attention from itself over the sinking of the Queen of the North and other issues regarding Ferry service in the province.

With each day bringing a new revelation and possibly more litigation, perhaps the time has come for the Province to call hearings into the state of its Ferry operation. Things don’t seem to be working very well at the moment and for the sake of its customers, employees and the reputation of the fleet, the time has come for a thorough investigation into everything involving the Corporation’s handling of its affairs.

The Ferries are far too important to this province to continue to stumble along in their present state of disarray, from safety concerns to business models and plans for the future, it’s time for the government to regain some kind of control over the way the situation has seemingly deteriorated over the last few months.

While the latest events seem to have left the Daily News behind the curve a bit of late, they have caught up to the insurance payout and fuel pricing issues, a situation they address in the story listed below.

BC Ferries’ payout attacked by critics
By James Vassallo
Prince Rupert Daily News
Tuesday, June 13, 2006
Pages One and Three

B. C. Ferries has received nearly $69 million in insurance for the sinking of the Queen of the North.

The settlement from the March 22 disaster that claimed the lives of two people has created, as the company notes in its year-end financial statement, “a significant improvement over the fourth quarter loss of $31.3 million last year.”

This year’s fourth quarter loss of $24.8 million would have been comparable to last year if not for a partial receivable of $6.6 million from the settlement. The rest of the insurance money will make its way onto the company’s financial statements in the first quarter of the 2007 operating year.

“It is important to note that all of our earnings are invested back into our terminal and vessel construction programs,” said B. C. Ferries President and CEO David Hahn, adding an internationals search is underway to find a replacement vessel for the Queen of the North.

“Over the next five years, we will invest $200 million in our terminals and add eight new vessels at a cost of $1 billion to ensure the continued safety and reliability of our fleet.”

Despite the introduction of two fuel surcharges that have been authorized already, the soaring cost of fuel remains a major concern for the company and may add insult to injury for Northern travelers.

B. C. Ferries experienced a 50 per cent increase in fuel cost last year, from $50 to $75 million. As a result of the higher oil cost, yet another fuel surcharge is expected to be put on travelers any day now. It is currently under review by the B. C. Ferry Commissioner and would amount to 3.5 per cent on major routes and 9 per cent on minor routes, including the Prince Rupert-to-Port Hardy and Prince Rupert-to-Queen Charlotte Islands route. A public consultation is not required.

The company’s reaction to the insurance settlement and the forthcoming increases on services B. C. Ferries aren’t providing has left North Coast MLA Gary Coons NDP ferries can ports critic, far from amused.

”On voice of B. C. Hahn was saying that his balance sheet will look positive from this tragedy,” he said. Meanwhile, communities are taking a huge hit with 70 per cent less tourists. You’ve got the government (Transportation Minister Kevin) Falcon, and the company, Hahn fighting over the insurance money that should be going to communities.”

It’s shameful,” said Coons

According to Coons any profits the company is experiencing are a direct result of the government’s privatization scheme and price gouging of coastal communities dependent on ferry service.

“When the privatization model was first unveiled, the government promised stable rates and better service.” He said. The cancelled sailings we saw last summer and fall aren’t examples of better service. Removing a passenger shelter from the Quadra Island ferry certainly doesn’t qualify as better service.”

“And the only thing consistent about fares is that they’ve consistently risen.”

Fares have risen more than 30 per cent in the past four years.

“We can’t put profits ahead of affordability and safety,” said Coons.

“We don’t expect highways to turn a profit. We expect that highway construction and maintenance will get good value for the dollars we put in.

“Ferries should be no different. This is basic transportation that our province depends on for all kinds of social and economic reasons. It must remain affordable.”