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 Highway has now completely superseded rail, but we maintain that the spirit in which the Terms of Union were originally drafted should be fully respected.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

Transportation and COVID-19 – an Atlantic Canada update as of June 1, 2020

Atlantic Canada continues to fare better than the rest of Canada under the COVID-19 emergency, with Nova Scotia and Newfoundland and Labrador showing a significantly improving public health picture over the past month. New Brunswick, unfortunately, suffered a setback in the Campbellton area late in May, and at month end was reporting a total of 12 active cases, out of a total of 30 in the four provinces. The Atlantic premiers remain focused on keeping the infection away from the region, and rigid travel restrictions remain in effect. The tourism outlook for 2020 is bleak indeed.

The only interprovincial travel now available in the region (other than private auto and a single daily Q-400 return flight between Halifax and St.John’s) is the tri-weekly service still being maintained by a struggling Maritime Bus on all its major routes. While the company is clearly hurting, owner Mike Cassidy remains optimistic about its post-pandemic future:

Perhaps taking a cue from the tight provincial border controls, VIA Rail announced on May 6 that its Ocean service would remain suspended until at least November 1. Beyond some vague references to using the hiatus as an opportunity to upgrade the aging HEP-1 stainless steel long distance equipment, VIA offered no real explanation as to why they were going so much farther than any other passenger carriers, and cancelling service nearly six months into the uncharted future.

https://media.viarail.ca/index.php/en/press-releases/2020/rail-extends-suspension-canadien-and-ocean

When it does return, the train will apparently be very different than before. In a written statement responding to an enquiry from the Moncton Times &Transcript on May 26, the Crown corporation said it was “pleased to announce an operational plan that will allow to continue operating the Ocean without access to the Halterm rail loop.” Pressed for further details, VIA declined to answer any of the newspaper’s questions. Neither has the company had any apparent engagement on the issue with provincial governments or the municipalities it serves. It is evident, however, that the product will be further downgraded from the already inadequate service offered at the time of the abrupt shutdown on March 13.

Meanwhile, public transit in the region’s larger urban centres continues to struggle, while remaining operational on a limited basis. Expenses have not fallen in proportion to the greatly reduced ridership, and of course many systems are suffering a further revenue shortfall because they are unable to collect fares from their few remaining riders. Transport Action Atlantic has urged the mayors of all cities and towns in the region that operate public transit to get behind the campaign for federal funding to ensure survival and recovery of these systems in the post-COVID era.

As the COVID restrictions gradually ease in Halifax, capacity on city buses was increased as of May 30 by once again allowing passengers to stand. A maximum of five standees are now permitted on conventional buses, at any given time. Standing passengers are asked to monitor physical distancing and should avoid positioning themselves immediately next to seated passengers or other standing passengers. Alternating seats will continue to be blocked off with appropriate signage. Mask usage is encouraged, and those who are feeling ill are warned not to use any transit service until their health returns to normal. Buses and ferries continue to operate on a reduced schedule, and fare collection remains suspended until further notice. The head of the transit workers union, meanwhile, warned that it could take up to two weeks to restore a full schedule.

https://www.halifaxtoday.ca/local-news/public-transit-will-not-be-a-back-at-full-strength-by-june-5-2392144

In St. John’s, Metrobus Transit reports ridership was down close to 85 percent in the first quarter of 2020. The “Snowmageddon” blizzard in January was a contributing factor, but COVID-19 had the most drastic effect, according to a May 28 story in the Telegram, resulting in an increased subsidy requirement of nearly a quarter million dollars for the three-month period.

https://www.thetelegram.com/news/local/metrobus-ridership-down-85-per-cent-during-pandemic-454712/

Marine Atlantic’s constitutionally-mandated ferries between North Sydney and Port aux Basques have continued to maintain twice-daily departures throughout the pandemic emergency, with enhanced measures introduced to protect the health of passengers and crew. Initially maximum passenger limits of 250 per sailing were imposed to facilitate social distancing, but this has been subsequently reduced to 100 per departure. Meanwhile, the seasonal Argentia ferry, which is heavily dependent on tourism traffic, has been cancelled for the entire 2020 season. The other seasonal federally-funded “constitutional alternative” ferry service, between Nova Scotia and PEI is now operational – but only for large commercial trucks and their drivers. Bay Ferries Saint John-Digby vessel is continuing to offer one daily round trip, again with limits on maximum passengers permitted. And, the restart of the troubled “Cat” service between Yarmouth NS and Bar Harbor, Maine, has been postponed to mid-July at the earliest, and probably won’t run at all in 2020 if the US-Canada border remains closed.

Air access remains very limited, but so is demand. With continuing border restrictions imposed by all four Atlantic provinces, it appears that there is little difficulty maintaining social distancing even on infrequent flights by smaller aircraft. Some regional airports are showing only two or three flights a week on their departure boards, while Saint John is shut down completely. The normally-bustling Halifax Stanfield terminal was showing just seven flights a day at the end of May, with St. John’s likewise hosting just a handful of landings. Among the smaller terminals, Fredericton appears to have the most frequent service, with two daily Air Canada departures to Montreal and tri-weekly WestJet flights to Toronto. Air Canada is tentatively planning to ramp up its service at a number of locations effective June 22. Many of WestJet’s domestic routes are suspended through July 4, and Porter Airlines has extended its complete shutdown to July 28. It remains to be seen what demand will be like as we move into summer, and how long it might take for travel to again become an attractive proposition.

The deepening concerns about air transportation in the post-COVID era have prompted revival of the long-standing suggestion of a single, centrally located airport for New Brunswick. The concept appears be gaining some traction, drawing the surprising comment from one airport CEO that it just might have some merit. At least one respected columnist has endorsed the idea, with the caveat that high speed rail linking the cities of Moncton, Saint John and Fredericton must be part of the package. We’re not holding our breath on that one!

For updates on public transportation issues across the country, check out the latest newsletter from our national affiliate, Transport Action Canada:

https://myemail.constantcontact.com/-Transport-Action–June-Newsletter—Standing-up-for-transit–inter-city-rail-and-motor-coach-services.html?soid=1126215294753&aid=2a7kLan7_qs