Nanaimo Daily News, April 11, 2015

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BRITISH COLUMBIA

Vancouver mayor, premier critical of oil spill response

Clippers battle for BCHL title

Premier Christy Clark and Mayor Gregor Robertson say the federal response lacked for the long delay in initiating a cleanup and not alerting B.C. officials for more than 12 hours. A7

Nanaimo faced Penticton Vees in Game 1 of the Fred Page Cup finals Friday night and won 5-2

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The newspaper of record for Nanaimo and region since 1874 || Saturday, April 11, 2015

» Transportation

COLLIERY DAMS

Province tells city to have dams fixed by Oct. 15 SPENCER ANDERSON DAILY NEWS

Mike Corrigan, president and chief executive officer of BC Ferries, sat down Friday with members of the ‘Daily News’ editorial staff. [AARON HINKS/DAILY NEWS]

Ferries president touts increased traffic levels Corrigan says corporation is on track to cut costs by $84 million SPENCER ANDERSON DAILY NEWS

B

C Ferries vehicle traffic and passenger levels were up five and four per cent respectively in March, with even larger gains of 11 and 10 per cent in February, the corporation said Friday. CEO Mike Corrigan says the increase in traffic shows the corporation is well-positioned to enter a new period of inflation-level fare increases, thanks to major operating cost reductions, lower fuel prices and a low loonie — and despite a looming $3-billion capital program over the next 12 years that will see several ships replaced. He sat down with the Daily News Friday in a wide-ranging interview that focused on the ferry service’s future, the challenges of running the service and the public perception problem he says has dogged the corporation. He pointed to a recent report from the B.C. Ferry Commissioner (www.bcferrycommission.ca), the independent regulator that caps fare increases across the system.

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Mainly cloudy High 11, Low 4 Details A2

“But what I’m proud of is the fact that we’ve been able to get the fares in line going forward. There’s fare certainty now.” Mike Corrigan, BC Ferries CEO

The report cites reduced costs in executive compensation $1.2 million each year since 2009. By the end of this year, BC Ferries expects to have cut costs by approximately $84 million over four years. Fares are also capped at 1.9 per cent from 2016 to 2020. “From our standpoint, we’re seeing a real rebound in ferry traffic and talking to tourism associations across the Island and chamber of commerce and others, we’re all expecting a pretty strong summer, so I think that’s positive,” he said. “We’ve got some challenges with ferry traffic over the years and you’ve got to get more than a couple of months in a row to say that you really

turned a corner, but we believe that we have a few things working in our favour now,” he said. Corrigan acknowledged fare increases continue to top the list of concerns from users of the ferry system. Ferry users in small coastal areas have said that rising fares threaten the viability of their communities. Price increases were capped 4.15 per cent in 2012, followed by 4.1 per cent in 2013, four per cent in 2014 and 3.9 per cent this year. But Corrigan said reducing fares or holding them flat was not realistic “when you’re running the most complex ferry system in the world like we are and the challenge we have with costs that are rising without our control.” When asked what he felt the biggest misconception he hears from ferry users was, he replied: “We like everything about B.C. Ferries, but the fares are too high.” “It’s all about fare affordability. It’s the number one issue . . . it’s an easy story to cover in the media, it’s very simple,” he said. “I know that ferry stories

are always at the top of. . . the most-read stories, we always get top billing. Because we’re always going to be near and dear to people’s hearts because there’s a million people in B.C. who are totally dependent on the ferry system.” However, Corrigan said ferry fares are “decent value” and said more needs to be done to promote the ferry service, adding that negative coverage may drive away visitors. “Just think, if you’re somebody from Europe or even from the U.S. and you type in ‘BC Ferries,’ and the first four stories you read are ‘fares, fares, too expensive, killing traffic . . .’ I mean, what are people going to do?” he asked. “Absolutely (fares) have (gone up),” he said. “But what I’m proud of is the fact that we’ve been able to get the fares in line going forward. There’s fare certainty now.” BC Ferries has been compared to the Washington state ferry service, cited by some as a stripped down, cheaper mode of sea travel that B.C. should emulate. See FERRIES, Page A6

A provincial order has been placed on the City of Nanaimo to select a remediation option for work on the Colliery dams by May 1, with a separate deadline of May 22 to submit design and construction plans. The order, issued by B.C. water rights comptroller Glen Davidson, also calls for the city to be “substantially completing the chosen remediation option by October 15, 2015.” The letter will come before city council at Monday’s committee of the whole meeting, after council defied a previous direction from the province on Feb. 25 that called upon city to submit plans to address safety concerns stemming from the structures by March 27. Instead, city council passed a motion by Coun. Gord Fuller by a margin of 5-3 to develop an emergency preparedness plan and flood monitoring plan for the dams, instead of immediately preparing for physical alterations at the dams. The motion was supported by councillors Bill Bestwick, Jerry Hong, Bill Yoachim and Jim Kipp. Mayor Bill McKay and councillors Wendy Pratt and Ian Thorpe were opposed. Coun. Diane Brennan was absent. Davidson’s order instructs the city proceed with one of two options previously developed to add flood routing capacity to the lower dam. The first is building a new labyrinth spillway, at an estimated cost of $8.1 million. The second, the construction of an auxiliary spillway several metres across at a cost estimated between $3 million and $6 million. McKay noted the city has an opportunity to appeal the order, but that will not immediately result in a delay of the order from the water comptroller. “I guess we’ll have to see what’s going to happen here Monday night,” said McKay. The mayor said he had not yet discussed the letter with his fellow council members. He said the city will get a legal opinion on its appeal options. The city could also ask for more time to investigate a less costly ‘overtopping’ option for the lower dam embankment, McKay said. SAnderson@nanaimodailynews.com 250-729-4255 » We want to hear from you. Send comments on this story to letters@nanaimodailynews.com. Letters must include daytime phone number and hometown.

Hillary Clinton to start bid for U.S. presidency

U.S., Cuban leaders set to meet at summit

Should she win the nomination, Clinton would face the winner of a Republican primary season that could feature as many as two dozen candidates. » Nation & World, A9

Symbolism of a face-to-face exchange today between the two leaders could signal progress even though both sides are working through nettlesome issues. » Nation & World, A9

Local news .................... A3-5 Markets ...............................A2 B.C. news ............................. A8

Editorials and letters ..... A4 Sports ................................... B1 Scoreboard ........................ B3

Classified ............................ B6 Obituaries ........................... B6 Comics ................................. B5

Crossword ................. B5, B6 Sudoku ................................. A2 Horoscope .......................... B7

Nanaimo Daily News, nanaimodailynews.com and Harbour City Star reach more than 60,000 readers each week in print and online. General inquires: 250-729-4200 | Newsroom: 250-729-4224 | To subscribe: 250-729-4266 | Copyright 2015. All rights reserved

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