B.C. Launches Review of Independent Authorities: Translink, BC Ferries
VICTORIA – The Province is launching a review of publicly funded, independently regulated transportation authorities to ensure customers and ratepayers are receiving maximum value for services, Finance Minister Colin Hansen and Transportation and Infrastructure Minister Shirley Bond announced today.
The review was requested by Bond and will look at both TransLink and BC Ferries operations.
“During these challenging economic times, we must ensure that services provided to ratepayers are done so in a way that is financially sustainable and provides maximum value for all British Columbians,” said Hansen. “Both BC Ferries and TransLink have been mandated to provide vital transportation services for millions of people, and we must ensure the governance arrangements are operating as efficiently as possible and the authorities are meeting their service objectives.”
Comptroller general Cheryl Wenezenki-Yolland will conduct the reviews of both companies. The reviews, to be completed by Sept. 30, 2009, will look at all aspects of the operations, from regulatory environment to corporate structure to financial performance. Following completion of the reviews, a final report containing recommendations will be made public. The recommendations may also identify other areas needing further examination. All recommendations must be consistent with the entities independence.
“Like all other entities that receive public funding, it is essential both TransLink and BC Ferries operate in a financially sound and sustainable manner,” said Bond. “It has been six years since BC Ferries became a private operation, and two years since TransLink’s governance model was revised. It is important we ensure both organizations are meeting their financial and service expectations that came about with the new models.”
The review will specifically look at:
- The division of responsibility between the Province and the respective entities.
- The size, composition, appointment process and compensation for the board of directors.
- The regulatory environment, including responsibilities, authorities and powers of the Ferry Commission as well as the regional transportation commissioner and Mayors’ Council on Regional Transportation.
- The operating costs and service delivery models, including the company’s efforts to reduce costs using Alternate Service Providers, and actions to increase productivity and quality customer service.
- A review of options available to the Province that are consistent with the entities’ independence under generally accepted accounting principles (GAAP) and which would ensure that existing and future independent, regulated, publicly created authorities such as BC Ferries and the South Coast British Columbia Transportation Authority are effectively structured to:
- Protect ratepayers’ interests with minimal administration costs, including hard caps on compensation levels for senior executives and board members.
- Protect clearly mandated customer service levels.
- Improve transparency and public accountability for decisions and performance levels.
