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.
As polling day for the 2019 federal election draws ever closer, it’s increasingly apparent that climate change and the factors that influence it are becoming key issues for voters. Transportation is acknowledged to be a major contributor to greenhouse gases, and the opportunity has never been better for Transport Action’s sustainable transportation agenda to make its presence felt as Canadians go to the polls. Not to mention convenience and affordability!
Our national board has prepared a series of policy briefings for distribution to parties and candidates during the campaign. Transport Action Atlantic has been instrumental in three of these documents on matters specific to our region. We’ve also contributed to several others that have nation-wide implications, including intercity motorcoach services and long-haul passenger rail.
TAA is an all-volunteer, non-partisan advocacy organization. Our goal is to promote convenient, affordable and sustainable public transportation for all Atlantic Canadians. During the current federal campaign we believe it is important – and reasonable – to ask candidates of all political persuasion where they stand on these issues.
We are pleased to present these policy briefings, under the common theme Ideas in Motion. We encourage you to read and discuss them. If you agree with us that they deserve priority attention among campaign issues critical to Atlantic Canada and its future, please share them and encourage others to join the cause as well. Don’t miss this opportunity!
The three policy briefings focused on Atlantic Canada are published in their entirety below, and you can find a link to the national items at the bottom of the page. You can open or download any of these briefings as a PDF using the links below each item, so you can save, print and share them as you wish!
A vision for renewed VIA Rail service in the Maritimes
(Photo – Tim Hayman)
Passenger
rail in Atlantic Canada today is a sorry remnant of what it used to be. For the
past three decades it has been declining at a more precipitous rate than elsewhere
in the VIA Rail system. In fact, portions of the Quebec City-Windsor corridor have,
in recent years, seen significant improvement in both frequency and capacity.
The
most recent setback for VIA’s Maritime service came in October 2012, when the
frequency of the region’s sole remaining train was cut to just three times
weekly, under the guise of being an “improvement” to better meet the public
demand. VIA’s then-CEO was insistent that the Ocean was primarily a tourism product – completely ignoring the realities
of local needs and travel patterns. The train has suffered significant
ridership losses and increasing operating costs since the cutback. VIA is now
paying more to operate fewer trains, and its most recent corporate plan
acknowledges that passengers in the Maritimes are being poorly served by the
current schedule.
The
tri-weekly operation eliminated the possibility of same-day returns to the
Maritimes from Montreal, and one-day round trips to Moncton for residents of
New Brunswick’s North Shore – an important consideration for people who have
few other public transportation options. The lack of frequency also rules out
rail as a choice for weekend travel, and it limits its usefulness when severe
winter conditions make other forms of transportation unreliable or impossible.
Frequency
and reliability are key components to making passenger rail service viable. Transport
Action Atlantic believes that a daily Ocean
with equipment appropriate to meet market demand at different times of the year
would be the most effective way to serve communities all along the route, as
well to provide a quality seasonal tourism product.
The
2018 federal budget allocated funding for VIA to replace its entire Quebec
City-Windsor corridor fleet, and an order for new trains has been placed with
Siemens. This is an important step, but VIA’s long distance equipment used on
trains outside the Corridor is aging and in urgent need of replacement. A refurbishment program is underway for much
of this stainless steel “Heritage Fleet” – some of which is more than 70 years
old and has already been rebuilt several times. But there is concern that this
is not sufficient as a long-term solution. The British-built Renaissance
equipment currently used on the Ocean
is nearing the end of its service life, and when it is removed there will likely
not be sufficient capacity to meet peak season demand. The time has come to
place priority on investigating options for new long distance rolling stock.
Extensive
market research should guide both the acquisition of new passenger cars and
refurbishment of the existing fleet. A variety of accommodation and onboard
amenities should be available to accommodate various travel budgets, including
an enhanced economy service for those willing to pay extra for additional
comfort and personal space without the luxury pricing of sleeper class. Simply
put, the product should meet the needs of the marketplace.
There
is also the issue of track infrastructure. The total Montreal-Halifax travel
time for the Ocean today is longer
than it was in the era of steam locomotives – largely due to the deteriorated
condition of CN’s Newcastle Subdivision in northern New Brunswick. Passenger
train speed is limited to just 30 miles per hour on a lengthy stretch of track
where 70 mph was safely permitted less than 20 years ago. Federal investment
several years ago was meant to improve the track, but the money has been spent
and speeds have not been restored. Furthermore, there are frequent delays due
to reduced siding capacity, particularly between Moncton and Halifax. Clearly,
more investment is required, but in so doing the infrastructure owner needs to
be held to account to ensure the outcome meets the intended objectives.
Canada
does not end at Quebec City! Canadians outside of the corridor also deserve
investment in modern passenger rail equipment and services.
The potential for restoration of rail freight service
to Cape Breton Island remains strong – and the Government of Canada has an
obligation to shoulder its share of responsibility. Nearly five years after the last freight
train ran over the 96-mile section of the former CN Sydney Subdivision, the
Province of Nova Scotia continues to pay the current owner of the line,
US-based Genesee and Wyoming Corporation, a monthly allowance of up to $60,000.
This covers such expenses as salaries, insurance, security and building
maintenance directly attributed to the line between St. Peter’s Junction and
Sydney, in return for which G&W will not apply to remove the track.
Recent
indications are that the provincial government is not planning to renew this
arrangement beyond the current fiscal year – unless there’s substantial
progress toward a proposed marine container terminal in the Sydney area. But
there’s so much more to consider than just the international shipping business.
Originally built at taxpayer expense,
this rail line was a public asset for over 100 years, and when Crown-owned CN
turned it over to the initial private operator in 1993, its then-CEO gave
assurance in writing to the premier of Nova Scotia assuring continuing rail
service in the event the new arrangement didn’t work out. The subsequent
privatization of CN did not simply make that commitment go away. If it’s
no longer an obligation of the railway company, then the Government of Canada
must accept responsibility for a commitment made by the Crown corporation’s CEO
on its behalf.
The traffic that previously moved on the
railway has been forced to use an inadequate highway system, with serious
environmental and safety implications, not to mention the maintenance burden
placed on the Province as a result of damage to infrastructure caused by heavy
transport trucks. The Nova Scotia government also faces growing pressure for
extremely expensive highway twinning – at far greater cost than the modest
investment required to place the rail line back in service.
It is Transport Action Atlantic’s
position that the federal government should begin by reacquiring the line for
net salvage value, and turn it over to the Province with a commitment from the
New Canada Building Fund sufficient to restore it to Class 3 condition. Nova
Scotia would then engage a willing and competent operator. A further
infrastructure investment in several small intermodal facilities at strategic
locations would enable traffic to both Cape Breton and western Newfoundland to
be transported by rail in a more environmentally sustainable manner, while
substantially reducing the maintenance burden on highway infrastructure and
enhancing road safety.
Preserving
the rail line could also allow the possibility of re-establishing passenger
rail to Cape Breton at some point in the future. The Halifax-Sydney route
operated by VIA Rail prior to 1990 was a well-patronized service, and could be
a part of a policy to expand passenger rail across the country. Such an
initiative would be fundamentally limited to areas where tracks still
exist.
Governments do not need to be in the business of operating railways, but they should be establishing policies and making financial commitments that encourage more – not less – of Canada’s commercial traffic to move by rail. ______________________________________________________________________________
Open the PDF to share this Cape Breton Rail briefing, or click the button below to download.
Affordable Newfoundland ferry rates – a constitutional commitment
It’s
now been 70 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
federally-supported ferry service between North Sydney and Port aux Basques,
and provided 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
crossing of the Cabot Strait 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.
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 charges for commercial drivers or the occupants of passenger vehicles. It is
significant that these additional 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 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 inflation rate.
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. A recent recommendation by the House of Commons Transportation Committee to further study the concept of an undersea tunnel crossing of the Strait of Belle Isle should not be used as reason to delay addressing the ferry rate issue. 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. ______________________________________________________________________________
Open the PDF to share this Newfoundland Ferry Rates briefing, or click the button below to download.
In addition to these three regional policy briefings, Transport Action Canada and Transport Action Ontario have developed briefings on several other items – policy support for VIA Rail, rebuilding a national bus network, and Southwestern Ontario rail and bus.
You can view and download any of these briefings, along with the Atlantic items, from the Transport Action Canada POLICY BRIEFINGS website.
Marine Atlantic’s customer satisfaction levels and on-time performance continue to improve – but the cost recovery targets demanded by Transport Canada continue to soar.
Marine Atlantic’s customer satisfaction rates increased to 77 per cent during the 12-month period ending March 31, 2017, and on-time performance rates improved to 91 per cent. The vessel reliability rate stood at 99 per cent, and the Newfoundland ferry service recorded its second consecutive year of growth, the first back-to-back passenger increases in almost two decades.
There was quite a bit of good news to report as the Crown corporation held its annual public meeting in St. John’s on November 6. However, there was one very sobering statistic presented by board chair Kris Parsons and CEO Paul Griffin. During the last fiscal year, Marine Atlantic achieved a record 70 per cent cost recovery, “falling within the targeted range as directed by the Government of Canada.” It generated $111.7 million in revenue, while the service cost $209.4 million to operate. The federal subsidy for the year was $94 million.
The cost recovery ratio has risen steadily over the past two decades, climbing from approximately 45 per cent in the late 1990s. During that period, user rates have soared at triple the national inflation rate – in sharp contrast to tolls on PEI’s Confederation Bridge, which are tied to the cost-of-living index.
During the last federal election campaign, Liberal Leader Justin Trudeau publicly lambasted the Harper Tories for their fixation on cost recovery for the ferry service, and promised that a Liberal government would address the issue. They haven’t: Since the election there have been two rate increases at Marine Atlantic – both well in excess of the cost-of-living index. A third is anticipated for 2018, although it had not been announced as of this writing.
