Minister Garneau’s appearance before the Standing Committee on Transport, Infrastructure and Communities (TRAN) on Main Estimates 2020-21 and Supplementary Estimates (B), 2020-21 held on November 5, 2020

52. TRANSFER FUNDING TO THE BC IN RESPECT OF THE PROVISION OF FERRY AND COASTAL FREIGHT AND PASSENGER SERVICES

Requesting $14,001.00 for the 2020-21 Supplementary Estimates B

The Grant to the Province of BC In Respect Of the Provision of Ferry and Coastal Freight and Passenger Services. Transport Canada is seeking access to $14,001.00 in 2020-21 as part of the Supplementary Estimates B process.

  • Transport Canada provides an annual grant to the Province of British Columbia to support coastal ferry services.
  • This activity supports the department’s strategic objective of an efficient transportation system.
  • The program fulfills the federal government’s legal obligations as set out in the agreement between the Government of Canada and the Province of British Columbia signed in 1977 whereby the Province would assume the sole responsibility for coastal ferry services in return for an on-going indexed grant from Canada.
    • The grant is indexed annually by the increase in the consumer price index in Vancouver.
  • Funds being sought through Supplementary Estimates B are required to meet federal government’s obligation under the agreement. The amount appropriated in the main estimates was based on a forecast increase of the Consumer Price Index in Vancouver. The actual increase was slightly higher necessitating additional funding to fulfill the agreement.
  • Funding supports the provision of ferry services in British Columbia where there are no affordable, publicly accessible alternatives to ferry service between the island and main land.

    If Pressed:
  • The Government of Canada is not considering re-opening the agreement at this time.

Planned spending has increased by $14,001.00 over the level in the 2020-2021 Main Estimates. This is a result of the increase in the Consumer Price Index for Vancouver, B.C, upon which the subsidy payment to the Province for the provision of ferry services is indexed, as per the agreement. The amount in the Main Estimates was based on a forecast Consumer Price Index increase (2.15%), this additional funding reflects the actual increase (2.19%).

Planned spending for 2020-21 is $32,028,098.