Newfoundland Ferry Rates – a provincial election issue?

Transport Action Atlantic is an all-volunteer non-partisan advocacy organization, with a history dating back nearly half a century. Our mandate is to promote and campaign for convenient, affordable and sustainable public transportation services for Atlantic Canadians. That’s why we’re asking what we believe is an important question during the current Newfoundland and Labrador election campaign.

TAA has been increasingly concerned at the serious escalation in Marine Atlantic ferry rates, which have more than doubled over the past two decades because of increased cost recovery demands from Transport Canada. An updated backgrounder on this issue is available HERE.

Why should a federally funded ferry service be an issue in a provincial election? Because it’s apparent that the Government of Canada is not meeting its obligations under the 1949 Terms of Union, and provincial politicians should be taking them to task.

We are inviting parties and candidates in this campaign to present their views on this critical issue. TAA believes that the ferry service between Port aux Basques and North Sydney should be considered a part of the Trans Canada Highway, and that the cost to users should be comparable to driving the same 180-km distance. That principle was incorporated in the 1949 Terms of Union, under which Newfoundland and Labrador became Canada’s tenth province, which specifically addressed railway rates as that was the dominant transport mode at the time. Highway has now completely superseded rail, but we maintain that the spirit in which the Terms of Union were originally drafted should be fully respected. The Government of Canada appears unwilling to do this – despite a commitment made by Justin Trudeau as opposition leader prior to the 2015 federal election. Clearly, it falls to provincial politicians to speak out and demand that Ottawa meet its constitutional obligations.

In the aftermath of the COVID-19 pandemic, with air transportation in serious crisis and unlikely to recover in the near future, affordable ferry service is particularly important to the struggling tourism sector. If the Atlantic Bubble is restored by summer 2021, Marine Atlantic will be uniquely positioned to bring significant numbers of visitors from the Maritimes – if the price is right.

Accordingly, we are requesting answers to these questions:

1.         Does your party support the principle that the ferry service between Port aux Basques and North Sydney is a part of the Trans Canada Highway, and as such the cost to users should be comparable to travelling the equivalent distance by road?

2.         Regardless of the outcome of the February 13 provincial election, will your party demand a full review of the existing Marine Atlantic ferry rates to ensure that the Government of Canada is compliant with the spirit of the 1949 Terms of Union?

TAA has sent the above questions to the parties, and we are awaiting their responses. Meanwhile, we suggest that voters who are concerned about ferry rates should engage their local candidates on the issue.

Ideas in Motion: Federal Ferry Rates – a Newfoundland election issue

Why would a federally-funded ferry service be a provincial election issue? It’s really quite simple! Canada has a constitutional obligation under the 1949 Terms of Union to provide a reliable and affordable ferry service between North Sydney and Port aux Basques, but the cost to users has been surging rapidly upwards at an alarming rate. The Government of Newfoundland and Labrador must be vigilant to ensure that this federal responsibility is respected.

It’s been nearly 72 years since Newfoundland and Labrador became Canada’s tenth province, completing Confederation from sea to sea. Transportation was a key concern for the people who designed the Terms of Union – and cost was an essential factor. Accordingly, Term 32 obligated Canada to provide a ferry service between North Sydney and Port aux Basques, while providing assurance against the higher cost of living resulting from geography. Specifically, framed in conformity with the dominant transportation mode of the day, the 100-nautical-mile marine route was to be rated as an all-rail movement. The additional handling and operational costs of the ferry service were to be absorbed by the Government of Canada through Crown-owned Canadian National Railways. In simple terms, the Cabot Strait crossing was treated as if it were a bridge.

Much has changed in the intervening years. The narrow-gauge Newfoundland rail line was abandoned in 1988; the railway passenger service on the island had been discontinued two decades previously. Traffic on the “constitutional” ferry route is now all highway-based.  But the basic principle of Term 32 remains. While road has replaced rail, the ferry service operated by the federal Crown corporation Marine Atlantic Inc. (MAI) must be viewed in the contemporary sense as an extension of the Trans Canada Highway. If the spirit in which the Terms of Union were drafted is to be respected, vehicles crossing the Cabot Strait should be charged no more than the cost of driving them 180 kilometres by highway. Arguably, there should be no additional fares for commercial drivers or the occupants of passenger vehicles. It is significant that these extra costs do not apply to users of the Confederation Bridge to Prince Edward Island, which is also a constitutional obligation of the Government of Canada.

Over time, the best intentions of the latter-day Fathers of Confederation have been eroded. In the past two decades Marine Atlantic’s rates have more than doubled – an increase greater than three times the national inflation rate. Security fees and fuel surcharges have also been added. Notably, there are no such additional costs to users of the Confederation Bridge, where tolls are tied to the cost of living index.

Under the previous Conservative government, Transport Canada imposed a cost recovery target of 65% on MAI. This has remained unchanged under the current Liberal administration – despite a campaign commitment by Justin Trudeau in 2015 that termed the existing cost recovery requirement as “unreasonable” and pledged to address it if elected. It’s a promise that has not been fulfilled, and ferry rates have continued to rise in excess of the cost of living index.

Transport Action Atlantic believes the spirit of the Terms of Union that made Newfoundland and Labrador a part of Canada should be respected, and that Term 32 must be viewed in a modernized context. The ferry crossing of the Cabot Strait is part of the Trans Canada Highway, and should cost users no more than driving the equivalent distance by road. This is an obligation assumed by the Government of Canada in 1949, and remains as valid today as it did then – notwithstanding the passage of time and changes in transportation technology.

With the federal government’s reluctance to address the issue, TAA believes that provincial politicians should be demanding answers. Unless there is a strong call for action from within the province, Ottawa clearly will not treat it as a priority. Recent talk about an undersea tunnel crossing of the Strait of Belle Isle should not be used as an excuse to delay dealing with the serious issue of ferry rates. Even if a “fixed crossing” between Newfoundland and the mainland is demonstrated to be feasible, its construction would lie many years in the future. Today’s ferry rates, by the Prime Minister’s own admission, are much higher than they should be – and immediate action is required. We are therefore inviting all parties in the 2021 provincial election to present their position on this important matter.

January 27, 2021

Atlantic Transport News – January 2021

Happy New Year! Welcome to the January edition of Atlantic Transport News!

Here’s a look at what you’ll find in this edition:

MOTORCOACH SERVICE IN NEW BRUNSWICK UNDER THREAT

Thousands of New Brunswickers are about to lose their only remaining public transportation link. With the provincial government unwilling to extend a helping hand to assist it through the COVID-19 crisis, Maritime Bus has announced indefinite closure of its services between Moncton and Campbellton and Fredericton and Edmundston, effective January 15.

Company founder Mike Cassidy, who came to the rescue after Acadian Lines abandoned its service in the Maritimes in 2012, has been providing line-haul motorcoach service ever since. However, he says, his passion for “public transit on provincial highways” has to be balanced with available financial resources. In April 2020 as the first wave of the pandemic took hold, Maritime Bus carried just 650 passengers – a dramatic plunge from 14,500 in the same month of 2019. The three provincial governments provided a one-time grant at that point to help offset the company’s losses, and indicated a willingness to negotiate an ongoing agreement for the duration of the crisis. The tentative deal to help cover the May to December was concluded with officials of all three provinces, but New Brunswick Premier Blaine Higgs refused to endorse it, citing his government’s policy of not subsidizing for-profit companies.

“Unfortunately, one province didn’t want to play in the same sandbox as the other two,” Mr. Cassidy said in a CBC interview. “The only way to reduce my operating costs is to travel less kilometres in the province of New Brunswick.”

The Higgs government decision ignores the reality that Maritime Bus lost over $3 million in 2020, and has continued to provide an essential public service on all its existing routes throughout the pandemic – albeit at a reduced level. Transport Action Atlantic has urged the Province to reconsider this regressive policy, which will leave residents of the North Shore and the Upper Valley without any public transportation options.

New Brunswick Green Party Leader David Coon also called on the premier to come to the rescue and keep the bus routes operational. He said the service loss will, among other things, deprive residents in the affected areas of vital access to healthcare services, adding that the buses are essential for people who cannot afford a car or are unable to drive.

For his part, Mike Cassidy says he’s committed to maintaining passenger and parcel service throughout the three Maritime provinces, noting that his company has a proven record over eight years, with no public funding except for the one-time contribution from the three provincial governments last spring.

“I want to take the high road by staying in business and keeping a base of bus service for our region until we are back to the new normal of people travelling again sometime this year when certain stakeholders and political decision makers are in a better place and a better frame of mind to make impactful social community decisions,” he said, adding that “it goes without saying Maritime Bus optimistically hopes public bus transportation will be a key strategic component in future community connectivity discussions.” 

ATLANTIC BUBBLE STAYS DEFLATED AMID NEW TRAVEL RESTRICTIONS

Don’t expect to see the Atlantic Bubble return anytime soon. That’s the clear message emerging from provincial premiers and health authorities in the aftermath of a relatively subdued and travel-restricted holiday season across the region. But all the precautions and restrictions were clearly not sufficient to keep the pandemic’s second wave contained. New Brunswick in particular recorded a dramatic upsurge in COVID-19 infections in the first week of the new year, prompting a return to the more restrictive “orange level” throughout the province effective at midnight on January 5.

While per-capita case counts remained low in comparison to Quebec, Ontario and Alberta, the region’s leaders were taking no chances. Nova Scotia, which had continued to allow other Atlantic Canadians to enter without self-isolating after the other three provinces had suspended the bubble in November, imposed restrictions at the border with New Brunswick on January 8. Meanwhile, Newfoundland and Labrador Premier Andrew Furey announced that his province would remain outside the bubble at least into February. And, New Brunswick announced that owning property or having family members in the province would no longer entitle non-residents to visit under the latest travel restrictions. All provinces were actively discouraging “non-essential” travel, but there appeared to be a variety of interpretations as to what that actually meant. One obvious complication is the relatively high number of residents who travel outside the region to find employment.

As of noon on January 10, the total reported active case count in the region stood at 212, over 80 percent of which were in New Brunswick.

Alerts continue to be issued about possible COVID exposure aboard flights into Atlantic Canada, while travel companies and some airlines appear to be flouting the advice of political leaders and public health officials by actively promoting offers to lure people onto planes and into resorts.  Intergovernmental Affairs Minister Dominic LeBlanc was clearly not amused, telling Brunswick News in a recent interview that he views the practice as “absurd”. The minister added that the Government of Canada won’t be interested in helping airlines financially if they aren’t interested in restoring regional routes.

ANOTHER SETBACK FOR AIR SERVICE IN THE REGION

In what one airport CEO described as a “massive blow”, Air Canada is implementing further flight suspensions throughout Atlantic Canada, effective January 11. The move includes a total shutdown until further notice of all scheduled passenger operations at Sydney and Saint John, as well as suspension of four routes serving Charlottetown, Fredericton, Deer Lake, and Halifax.

Derrick Stanford, president of the Atlantic Canada Airports Association, said the latest round of cuts has whittled down service to an unsustainable level, adding that this is the third significant round of service reductions in six months. It follows hot on the heels of major cutbacks implemented in November by WestJet that wiped out most of that airline’s presence in the region.

“Our industry cannot survive and operate in these conditions, and we are seeing the worst-case scenario playing out here today,” Mr. Stanford said. “This will have a huge impact on our region’s economy, on the ability of families to reconnect, on the movement of essential workers, and on airport employees and businesses.”

Meanwhile, St. John’s-based PAL Airlines is adjusting its services from Moncton to Newfoundland and Labrador to accommodate the latest round of travel restrictions as best it can. The airline has abandoned its service between Charlo NB and Wabush NL, and combined it with a new route linking Moncton with Deer Lake. And, until interprovincial travel restrictions are eased, non-stop service between YQM and YYT has been temporarily eliminated. Effective January 10 until further notice, a tri-weekly DASH-8-300 flight will run St. John’s – Deer Lake – Moncton – Wabush and return. PAL’s Janine Brown says a daily St. John’s – Moncton – Ottawa routing is still their post-pandemic objective, with a separate service planned for Deer Lake and Wabush.

ST. JOHN’S WALKS BACK A LITTLE ON METROBUS CUTS

Metrobus users in St. John’s will not have to deal with schedule cutbacks during the worst months of winter after all. Faced with mounting criticism, City Council has backtracked somewhat on its plan to implement the reduced summer schedule in January, in an effort to meet a severe budget crunch. The 2021 transit subsidy will still apparently be hit by the intended cut of $800,000, but the savings will now be achieved by deferring planned service improvements, rather than cutting back on frequency during the three most severe months of the year. The reductions will now begin in April. Frequency changes in summer are a normal response when student ridership drops substantially and more people are biking or walking.

Meanwhile, service is back to near-normal schedules on most urban transit systems in the region, although ridership, and consequently revenues, remain a long way below pre-pandemic levels.

CAMPOBELLO FERRY GETS ANOTHER EXTENSION

The Campobello ferry normally runs only in summer, and was not designed for operation under winter conditions. PHOTO – Maurice Haddon

The normally-seasonal Campobello Island ferry has received yet another extension. The New Brunswick government will now continue its financial support until February 7, 2021, to enable service four days a week (weather permitting) between Campobello and Deer Island, which is in turn connected with the NB mainland by year-round ferry. The only permanent access for the island’s 700 residents is through an international bridge to Lubec, Maine – a circuitous connection complicated by COVID-19 travel restrictions.

The Campobello ferry usually operates only during summer, and the privately-owned vessel is not well suited to sea conditions often encountered at this time of year. The schedule is therefore a bit of a moving target, and the operator, East Coast Ferries, is using social media to keep its customers informed.

Meanwhile, Campobello’s plight has found its way to the pages of the Toronto Star.  This detailed item was published on January 3: https://www.thestar.com/news/canada/2021/01/03/cut-off-by-geography-and-covid-19-this-canadian-island-is-calling-out-for-a-link-to-the-rest-of-canada-to-no-avail.html