Premier Eby Demands Fair Federal Funding for BC Ferries

British Columbia Premier David Eby has called for increased federal funding for BC Ferries, citing a persistent “structural unfairness” in how federal resources are allocated across Canada. Eby’s remarks come on the heels of an announcement by Prime Minister Mark Carney, who revealed significant reductions in transportation service fees in Eastern Canada, including cuts to tolls on the Confederation Bridge.

The tolls on the federally owned Confederation Bridge, which links Prince Edward Island to New Brunswick, will decrease from over $50 to just $20 starting later this week. Additionally, ferry fares across Quebec and the Maritime provinces will be slashed by 50 percent for passengers, vehicles, and commercial traffic. Eby argues that this decision highlights a disparity in funding and support for BC compared to other provinces.

Eby stated, “The structural unfairness of the fact that not only are British Columbians paying equalization to eastern provinces in the amount of billions of dollars, but also we have to watch the federal government show up on the East Coast and subsidize ferry users.” He pointed out that Eastern provinces receive approximately $300 in subsidies for every dollar allocated to BC Ferries users.

The Premier noted that the federal subsidy level for BC Ferries has remained unchanged for nearly 20 years. Under the original 1977 federal subsidy agreement, BC Ferries receives a subsidy to support its operations, which function as an extension of the highway network, including the Trans-Canada Highway leading to Vancouver Island. The annual payment is indexed to the Vancouver Consumer Price Index.

According to BC Ferries’ annual financial statements, the organization received $36.92 million in federal subsidies for the 2024/2025 fiscal year, down from $35.64 million in 2023/2024. Over the same period, BC Ferries’ annual operating budget has surged from $926 million in 2019/2020 to $1.18 billion in 2024/2025, necessitating further investment in infrastructure and fleet renewal.

Eby emphasized the need for a reassessment of federal policies regarding ferry users in British Columbia, asserting, “We need the same per capita funding that any other province gets.” He expressed frustration that BC residents contribute significantly more in federal taxes than they receive in return. The Premier’s concerns echo a longstanding complaint from both B.C. and Alberta regarding the fairness of the federal equalization formula.

Federal equalization payments, initiated in 1957 and enshrined in the Canadian Constitution Act of 1982, aim to ensure that all provinces can provide similar levels of public services despite varying abilities to generate revenue. Provinces with below-average fiscal capacity receive payments to help equalize services. However, B.C. and Alberta have consistently argued that their contributions to federal revenues far exceed the benefits they receive.

Eby’s call for change extends beyond ferry funding. Last year, he formally requested federal support for six major infrastructure projects in B.C., including the replacement of the George Massey Tunnel, estimated to cost $4.15 billion. Though the federal government offered hundreds of millions in funding, the provincial government deemed it insufficient.

BC Ferries is also grappling with capacity issues due to an aging fleet and rising demand. The organization recently announced plans to procure four new vessels, with financing from the Canada Infrastructure Bank. The decision to build these vessels in a Chinese shipyard has sparked controversy, with critics arguing for greater federal investment in domestic shipbuilding.

Eby reiterated the need for fair treatment in federal funding across all sectors, stating, “Fairness, equality, and access to programs in the federal government for provinces is mission critical.” The Premier’s call for reform reflects broader concerns regarding equitable distribution of federal resources and support for critical infrastructure in British Columbia.