Modernize federal ferry funding

AI summary

Petitioners ask the government to modernize federal ferry funding and provide long‑term operational support for BC Ferries. The government responds it provides support via existing agreements, a 1977 indexed grant (~$38.6M) and CIB investments.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

PETITION TO THE HOUSE OF COMMONS IN PARLIAMENT ASSEMBLED We, the undersigned residents of Canada, draw the attention of the House of Commons in Parliament Assembled to the following: Whereas ferries are essential marine highways connecting coastal communities, workers, families, businesses, and supply chains to the rest of Canada; Vancouver Island is approaching one million residents and BC Ferries carries more than 22 million passengers annually; according to analysis prepared by the Library of Parliament, BC Ferries received approximately $1.63 in federal operational support per passenger in 2024-25, compared to approximately $291 for federally supported East Coast ferry systems; Canadians in Atlantic Canada and British Columbia both deserve strong federal ferry support because these services are essential national transportation infrastructure; current federal ferry funding agreements rely on outdated constitutional arrangements and formulas created decades ago, when Vancouver Island had roughly half its current population; Vancouver Island and coastal communities should not have to become separate provinces in order to receive fair federal ferry support; and it is no longer sustainable to operate one of the world's largest ferry systems without stable, long-term federal operational support; Therefore, We, the undersigned, Citizens and Residents of Canada call upon the Government of Canada to modernize federal ferry funding policies and provide fair, stable, long-term federal operational support for BC Ferries as essential national transportation infrastructure.

Government response

Response by the Minister of Transport and Leader of the Government in the House of Commons Signed by Mike Kelloway Canadians and businesses across Canada rely on safe and efficient ferry services to keep communities connected and support the economy. The Government of Canada recognizes that ferry services are lifelines for communities and investments are required to ensure safe, reliable and affordable service, as well as to reduce greenhouse gas emissions and underwater radiated noise. Transport Canada’s direct support for ferries in Canada is limited to ferry services that: (i) are constitutionally mandated such as the ferry services between Newfoundland and Nova Scotia provided by Marine Atlantic Inc; (ii) serve remote communities, such as the interprovincial ferry service between the remote community of the Magdalen Islands, Quebec, and Souris, Prince Edward Island; or (iii) are interprovincial and have a history of longstanding financial support from the Government of Canada. In April 1977, Canada and the Province of British Columbia entered into an agreement under which the Government of Canada would pay an annual grant to British Columbia to support ferry and coastal freight and passenger services. In exchange for the provision of federal funding, the Government of Canada was relieved of any obligations related to the ferry services, while the province agreed to assume sole responsibility for deciding which ferry services should receive financial assistance. The grant, which is indexed annually, is approximately $38.6 million in 2026-27. In addition, the Government of Canada has taken steps to provide various types of assistance to ferry operators in Canada, including waiving tariffs on the importation of used ferry vessels of all sizes, making ferry-related infrastructure projects eligible for funding under the new Building Canada Fund, including vessel purchases or conversions, wharves, passenger terminals, and access road infrastructure, providing funding to BC Ferries through the Safe Restart Agreement during the COVID pandemic, as well as loans to BC Ferries to help renew its fleet. Response by the Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada Signed by Jennifer McKelvie, M.P. The Government of Canada thanks the petitioners for sharing their concerns regarding the importance of fair, stable, and long-term federal support for ferry services as essential transportation infrastructure connecting coastal communities. The Canada Infrastructure Bank supports BC Ferries through targeted investments aimed at modernizing critical transportation infrastructure, improving service reliability, and advancing the transition toward lower-emission ferry operations. These investments are focused on capital infrastructure and are distinct from operational funding provided by government. The Canada Infrastructure Bank’s involvement with BC Ferries is centred on two key investments: the Island Class Ferry Electrification Program and the Major Vessels Program (Fleet Renewal and Capacity Expansion). The Canada Infrastructure Bank has committed approximately $75 million to support the acquisition of four battery-electric Island Class ferries, as well as the installation of the associated shore-side charging infrastructure. This investment is designed to address the higher upfront capital costs associated with zero-emission vessels, thereby accelerating the deployment of cleaner technologies within BC Ferries’ fleet. By supporting electrification, this initiative is expected to contribute to reductions in greenhouse gas emissions, while also improving local environmental outcomes through reduced noise and air pollution. In addition, the introduction of these vessels enhances operational flexibility, allowing BC Ferries to better align vessel deployment with route demand while maintaining reliable service levels. In addition, the Canada Infrastructure Bank is providing financing of up to approximately $1 billion to support the procurement of new, larger hybrid (diesel-battery) vessels, as well as related terminal and electrical infrastructure upgrades. This investment is intended to replace aging vessels that are nearing the end of their service life, while also expanding system capacity on high-demand routes serving the Vancouver area. The new vessels are designed to be compatible with future electrification as supporting infrastructure is further developed, enabling a phased transition toward lower-emission operations. Beyond environmental considerations, the investment is expected to improve overall system reliability, reduce the risk of service disruptions, and support long-term demand growth. It also helps mitigate upward pressure on ferry fares by providing access to financing at favourable terms. Through these investments, the Canada Infrastructure Bank contributes to the development of modern, resilient, and sustainable ferry infrastructure that supports essential transportation services for coastal communities and regional economic activity.