Premier Eby urges federal government to boost ferry subsidies in B.C. citing unfair funding gap with Eastern Canada after fares cut by 50% there.
B.C. Premier Seeks Equal Federal Support for Ferry Users
British Columbia Premier David Eby is calling on Ottawa to address what he calls an “unfair funding gap” between ferry services in Eastern Canada and those in B.C. Speaking Monday, Eby demanded that the federal government increase its subsidy for B.C. ferry users, following a recent federal decision to cut ferry fares in the East by half.
Fares Drop in East, but B.C. Support Remains Flat
As of August 1, ferry fares for passengers, vehicles, and commercial traffic in federally supported Eastern Canadian routes—including between Nova Scotia and Newfoundland and Labrador—will be reduced by 50%. The move comes with a federal funding boost to Marine Atlantic, a Crown corporation, along with a freeze on commercial freight rates. In contrast, Eby noted that Ottawa provides only $1 per person in ferry subsidies for B.C., compared to $300 per person in the East.
Longstanding Subsidy Structure Sparks New Debate
Eby criticized the decades-old subsidy arrangement, which dates back to a 1977 agreement negotiated by then-premier Bill Bennett. The current structure, he argued, leaves B.C. ferry users to shoulder the bulk of operating costs. B.C. Ferries operates as a private entity owned by the provincial government and runs one of the world’s largest and most complex ferry systems.
Economic Pressure Mounts Without Increased Aid
According to B.C. Ferries, without additional federal assistance, fares could rise by over 30% in 2028 due to mounting operational and capital expenses. The company emphasized that most system costs are currently paid directly by users, a situation Eby says is unsustainable and inequitable compared to federal treatment of Eastern ferry systems.
Political Scrutiny on Chinese Shipbuilding Deal
The funding controversy comes amid backlash over B.C. Ferries’ decision to award a contract for four new hybrid vessels to a Chinese shipyard. While Transport Minister Chrystia Freeland expressed disappointment, federal and provincial Conservatives have called for the $1-billion deal to be scrapped. The House of Commons transport committee is now investigating the loan from the Canada Infrastructure Bank that supports the deal.
Calls for Broader Inquiry and Canadian Shipbuilding
Eby said he will urge the committee to widen its probe to include what he sees as systemic funding imbalances. He added that this is an opportunity for the federal government to support domestic shipbuilding and ensure future ferry procurement stays in Canada. “Let’s use this moment to fix a broken policy and invest in Canadian industry,” he said.
Ottawa Cites Constitutional Obligations in Response
In response, Freeland’s office maintained that federal ferry funding prioritizes constitutionally mandated and interprovincial routes, such as those in Atlantic Canada. The Canadian Ferry Association echoed that position, noting the legal responsibility to connect provinces like Newfoundland to the mainland, while suggesting B.C.’s situation is different by design.
Debate Highlights Ongoing Infrastructure Inequities
The disagreement has reignited a broader debate over federal infrastructure support across provinces. While Ottawa’s position is rooted in constitutional commitments, Eby and other provincial leaders argue that evolving transportation needs demand modernized and equitable funding formulas. For B.C.’s ferry users, the coming months may determine whether fare relief is on the horizon—or if the gap continues to widen.
For continuous coverage and real-time updates, keep following Maple News Wire.
