|
Post by Northern Exploration on Aug 23, 2009 16:05:49 GMT -8
Oh, wonderful. If you believe that BC Ferries is still a puppet of the provincial government, this whole idea becomes laughable. This actually has some legitimacy, however marginal. HST is preferable to PST as it has a concept called "input tax credits" (ITCs), basically, GST/HST registrants in completing thier GST/HST Tax Remitances subtract the input tax credits from the amounts the owe. However as BC Ferries transportation is an "exempt supply" (the section is posted elsewhere) they neither collect tax nor receive input tax credits on the amounts they pay for thier transporation operations. (Food and Retail are both 12% taxed supplies, and they would receive ITCs on any payments on supplies for those operations). The counter arguements is that this is a normal commercial risk, and/or the marginal increase in costs to BC Ferries is minimal(depending on whether thier current purchases are Exempt, 0% rated or 5%/12% rated supplies). I believe this is correct, but I don't deal with Sales Tax so often. A Provincial Bi-Election has been called here in Ontario for a riding that has been a fairly safe Liberal stronghold. The incumbant is stepping down and a new face is running. Runnng against him is a popular newpaper columnist. This is being touted as a test of the HST here. You can imagine with the population base and what a huge boost to the provincial coffers the tax will be. No one has clearly sad (freudian slip meant "said") what the new money is going to be spent on though . The debate is over what should be included and what excluded. There is talk of housing under $400,000 being exempt. One point of view is to funnel all the new revenues into infrastructure and transit and it might be a winner for the province because people will see the results. Dump it in the general revenue and no one see results. The HST is nothing new in the maritimes and no one seems to notice because it was that way from the start. It will be very interesting to see how this plays out in BC and Ontario and whether a provincial government head will roll over it.
|
|
|
Post by Taxman on Aug 23, 2009 17:28:27 GMT -8
I should clarify, it is the reason HST is preferred by some... the increase in tax base is never preferred.
|
|
|
Post by Dane on Aug 24, 2009 15:27:53 GMT -8
Oh, wonderful. If you believe that BC Ferries is still a puppet of the provincial government, this whole idea becomes laughable. There's even a few Provincial Government departments that are railing against HST because of implementation effects, the one I see most visibly being BC Parks which currently doesn't charge or collect PST and the price points, which are legislated take this into account. So either Park fees have to go up to make up the difference, which requires an Act of the legislature, or they take a 7% hit when they already have a "deferred budget" for 2010.
|
|
|
Post by Northern Exploration on Aug 25, 2009 7:56:58 GMT -8
I worked for a Quebec company so we had to charge using the different taxes depending on where the client was based. There were times when it was more advantageous to a client to be billed from the Montreal office. And other times better to bill from my Toronto office.
PST in Ontario is calculated based on the total cost before taxes. QST in Quebec is calculated on the total cost plus GST. And for Maritime clients you had to calculate HST. Some things were tax exempt and at other times weren't. For example envelopes for certain uses were sales tax exempt but only sometimes. A whole company specialized in getting sales tax refunds for envelopes and other specialty marketing products. Doing national work frankly was a total headache and you needed to be constantly keeping abreast of tax changes in ten provinces. Smart clients knew how to work the system and would place orders from the most advantageous location and saving a lot of tax in the process.
If the HST actually simplified things it would be wonderful. And since it appears that the exceptions will be all over the map, it seems like we are exchanging complexities. In some cases it will be simpler but others more complex. Since the provinces never can agree on much, unless it is opposing Ottawa on something, it isn't likely. If we actually had provincial free trade across Canada and corporate taxes could be simplified and standardized, the economic spin off I think would be bigger than we realize.
|
|
|
Post by Low Light Mike on Nov 20, 2009 8:37:16 GMT -8
Company 2nd Quarter (July-Sept 09) results released yesterday. I'll review the MD&A report soon, and post any new information here. Reports will be available at www.sedar.com. =================== Here's the traffic stats: Tariff revenue for the 2009/10 year's 2nd quarter increased 6.1% from the 2008/09 year's 2nd quarter. So the $ increase for tariff revenue was higher than the traffic increase. That means that prices increased (duh). What was the dollar effect of this? Using a blend increase of 3% (for the 4.3% vehicle traffic & 1.7% passenger traffic increases), if the prior year's quarterly tariff revenue of $151,994,00 were increased by 3% for the traffic increase, the current year's quarter tariff revenue would be $156,554,000. But tariff revenue for the current year's quarter is $161,336,000. So the $ impact of higher fair rates is approx $4,782,000. And of course that's not trying to guess about how better traffic would have been with lower fares and the impact of that on total tariff revenue.
|
|
|
Post by Low Light Mike on Nov 20, 2009 18:58:20 GMT -8
Excepts from the quarterly MD&A report, for the quarter ending September 30, 2009: ================== I thought that Dave said he was a private-sector guy. This description sounds public sector: ======================= I think Dave is missing one of the factors: =============== - I thought that Dave already made his feelings clear on the report? ==================== - On the "other routes", if a fare was $100 at the end of the previous term, it will be $126.66 at the end of the current term, assuming Zero-inflation re the CPI. So we're getting a 26% increase over 4 years, plus the effects of normal CPI inflation. ============== Operating expenses: Maintenance =================== The Federal Govt is helping out, for work done in local shipyards: ================= The reason for the CoastSaver fares: ===============
|
|
|
Post by Low Light Mike on Dec 30, 2009 12:51:47 GMT -8
Regarding the cover-photo on the BCFS 2008/09 annual report: www.bcferries.com/files/AboutBCF/AR/Annual_Report_08-09.pdf- Which ship do you think this is? I've been scratching my head, trying to figure it out..... There are no bridge wings, so it's not a V or B The person is close to the bridge, like a C-class, but a C-Class's bridge is higher-up, compared with the outside passenger deck. Any ideas?
|
|
|
Post by Scott (Former Account) on Dec 30, 2009 13:01:11 GMT -8
The location of the photo is Departure Bay. Jesse Island on the left and Five Fingers is out in the distance behind it.
Without a doubt, it is the Queen of Oak Bay...
|
|
|
Post by Low Light Mike on Dec 30, 2009 13:03:37 GMT -8
The location of the photo is Departure Bay. Jesse Island on the left and Five Fingers is out in the distance behind it. Without a doubt, it is the Queen of Oak Bay... I was thrown-off by the vertical height between the passenger and the bridge windows. My mind's eye told me that the bridge was a lot higher-up from the wrap-around passenger walkway. I guess not... thanks Scott.
|
|
|
Post by Low Light Mike on Feb 27, 2010 15:55:55 GMT -8
Here we go again, with another quarterly report released. This is for the 3/4 way through their fiscal year, so it's the 9 months ended 12/31/2009. The Management's Discussion & Analysis report is found on www.sedar.com. Here are some highlights of items that I haven't seen before, or things that I found interesting: =========================== Here are the overall new issues and updates: Traffic has improved, and this is before the Olympic impact. ---------- Funny how honouring the Coastal Ferry Services Contract is not one of their stated objectives.... --------------- ------------------- Interesting conclusion here, that the alternate provider could have done the service more effectively. Then blame the Province for not approving it.
|
|
|
Post by Low Light Mike on Feb 27, 2010 16:19:23 GMT -8
Other items of interest from the 3rd-Quarter MD&A report: ====================
SailSafe results - looks like some good measurable results so far:
----------------------
Geographic breakdown of earned revenues:
--------------------
Major route traffic increases. Some more detail for Neil to use as ammunition in future rebuttals to unsuspecting members:
-------------------------
A breakdown of how the Northern Routes are funded for revenues:
---------------
Northern routes traffic has Decreased for the 9-months this year, compared with the prior year. This is in spite of a new ship in-service. Wow.....
------------------
Here's the Other Routes (ie minor routes) revenue breakdown. Compare this to that of the Northern Routes noted above, which are funded 28% by customers, compared with 53% by customers for these minor routes.
--------------------
How much does it cost to replace a damaged propeller?
-----------------------
A couple interesting things here: - The Federal Gov't helps to fund various refits, through an interest rebate program. - The Quinsam refit is considered a life-extension. Further proof that replacement of minor-vessels is being pushed-back.
----------------
What about the retired vessels? Here's some news. Saanich was sold for peanuts (assuming that the market value was peanuts - sigh ;D). - and who knew that BCF was selling surplus land in Richmond? - And doesn't that large gain on the sale of the Esquimalt look odd? Some purchaser is looking foolish....
--------------------------
|
|
|
Post by Low Light Mike on Feb 27, 2010 16:43:39 GMT -8
Some more comments on the 3rd Quarter MD&A report: ============ Comments on capital asset upgrades at terminals: ----------------- Some more Quinsam detail. - Yes Scott, "Betterment" is an accounting term. Don't make fun of it.... -------------------------- Interesting that vessels are now generating sewage. I thought it was just the people on the vessels.... -------------------------- For berth projects, check out this chart: - tie up for 2nd ship at Prince Rupert sounds like a good idea. --------- Some detail on Tsawwassen Berth #4. -------------
|
|
|
Post by Low Light Mike on Jun 11, 2010 18:28:34 GMT -8
MD&A report for year ended March 31, 2010 has just been released. It's here: www.bcferries.com/about/investors/index.htmlHere are the highlights for things that are new, clarified or just plain interesting to me: ======== ------------------- -------------------- - "within the next five years". I wonder whether this means newbuilds, or just live-extensions? ---------------------- -----------------------
|
|
|
Post by lmtengs on Jun 11, 2010 22:22:21 GMT -8
The location of the photo is Departure Bay. Jesse Island on the left and Five Fingers is out in the distance behind it. Without a doubt, it is the Queen of Oak Bay... I was thrown-off by the vertical height between the passenger and the bridge windows. My mind's eye told me that the bridge was a lot higher-up from the wrap-around passenger walkway. I guess not... thanks Scott. I'm gonna make a really late response to this one, just because I want to To my knowledge, the Queen of Alberni's wheelhouse is higher than on the other C's, therefore you might have been confusing the two heights.
|
|
|
Post by Scott on Jun 11, 2010 22:42:30 GMT -8
Has anyone visited this yet? I was down there during the Olympics and they had signs up around where it would be, but I haven't been there since. Sounds like a bit of a tourist trap. Late edit: It has its own website - www.bcferriesvacations.com/travel-center/
|
|
|
Post by lmtengs on Jun 11, 2010 23:57:07 GMT -8
Has anyone visited this yet? I was down there during the Olympics and they had signs up around where it would be, but I haven't been there since. Sounds like a bit of a tourist trap. Late edit: It has its own website - www.bcferriesvacations.com/travel-center/So this is what we're spending our money on now? Actually, the website looks kinda inviting. BC Ferries should revamp their entire website similar to this. I think I might drop by soon
|
|
|
Post by Northern Exploration on Jun 12, 2010 12:26:24 GMT -8
Thanks Flug for posting that. Of interest to me is the improvement in the two credit ratings. This is a strong indication of the financial health of BCFC and as well the ability to borrow money at good rates.
|
|
|
Post by cobblehillian on Jun 13, 2010 8:32:10 GMT -8
Despite a modest to high debt load and a probable slow increase in interest rates on borrowing the bond raters gave a higher rating. Does this have anything to do with the relative ease with which BCF can improve revenue through fare and food increases?
This would not be the first time bond raters boosted the ratings of a transportation operator that could raise revenue take with minimal bureaucratic resistance.
|
|
|
Post by Northern Exploration on Aug 18, 2010 18:50:33 GMT -8
Woo I think that is my first time being locked, well at least respectfully. I can cross that off my bucket list now and work up to an unrespectful lock. I was hoping there would be a bit more meat in the report but on a very quick scan just more comments on the fed money. The money that has been allocated under the fed stimulus program requires that the projects be complete prior to the deadline or the money goes poof back into "the promised but never spent column of the fed ledger." I wonder how on track BC Ferries is. A lot of municipalities might find themselves on the hook for projects if they don't move their buns. The problem is that many of the contractors are so busy, projects are way behind. I imagine the security funds that BC Ferries is also spending is under a different deadline and might not disappear.
|
|
|
Post by Low Light Mike on Aug 18, 2010 19:13:16 GMT -8
I was hoping there would be a bit more meat in the report but on a very quick scan just more comments on the fed money. The full MD&A report should be on www.sedar.com sometime tomorrow. That report is a lot more detailed. The press-release is always pretty thin.
|
|
|
Post by Low Light Mike on Aug 18, 2010 19:27:51 GMT -8
BCFS just did its annual reporting to the BC Ferry Commissioner. The report is available on the Ferry Commissions website, here: www.bcferrycommission.com/BCFSReport_to_Commiss0910.pdfHere are some highlights: - If you're interested in this information, check out this part of the report:
|
|
|
Post by Low Light Mike on Aug 19, 2010 17:45:52 GMT -8
Highlights from the BCFS MD&A report, for the 2010/11 1st quarter. Report dated July 29, 2010, available on www.sedar.com. ========== - the traffic mix changes -------------- HST hurts this business. -------------- - here's a recent news item. -------------- -------------- - Remember the days when BCFS was expecting to replace minor & intermediate vessels? --------------
|
|
|
Post by Scott on Aug 19, 2010 18:16:25 GMT -8
Highlights from the BCFS MD&A report, for the 2010/11 1st quarter. Report dated July 29, 2010, available on www.sedar.com. ========== HST hurts this business. -------------- - You might be the best person to ask, Flugel... why are many business leaders supportive of the HST (or is it just a few vocal ones?) saying that it's good for business when it seems that it's actually adding to the costs of many businesses? Is the cost to BC Ferries mainly due to the goods and services that they purchase? If it was just administration costs, you would think it would be easier to process one tax than two taxes, but if it increases the costs of the goods you are buying, then I suppose that's where the increase in costs comes in. Another potential HST cost they may also have to worry about a slow down in business if the HST does negatively affect the BC economy as some suggest it is. But I don't think that is taken into consideration in this report. BTW.. thanks for going through it and picking out the highlights, Flugel!
|
|
|
Post by Northern Exploration on Aug 21, 2010 13:27:49 GMT -8
Highlights from the BCFS MD&A report, for the 2010/11 1st quarter. Report dated July 29, 2010, available on www.sedar.com. ========== HST hurts this business. -------------- - You might be the best person to ask, Flugel... why are many business leaders supportive of the HST (or is it just a few vocal ones?) saying that it's good for business when it seems that it's actually adding to the costs of many businesses? Is the cost to BC Ferries mainly due to the goods and services that they purchase? If it was just administration costs, you would think it would be easier to process one tax than two taxes, but if it increases the costs of the goods you are buying, then I suppose that's where the increase in costs comes in. Another potential HST cost they may also have to worry about a slow down in business if the HST does negatively affect the BC economy as some suggest it is. But I don't think that is taken into consideration in this report. BTW.. thanks for going through it and picking out the highlights, Flugel! From my perspective it is now just one tax you have to collect, and remit. One cheque. There were three possibilities for tax, GST, PST, and PST exempt. Now there is two, HST or HST exempt. So tracking and the accounting is simplified. The biggest impact on businesses and charities that rely on the mail for communications is that postage is no longer exempt. This has a severe impact on charities. A good portion of the population still is mail dependant (older people) and they happen to be the best donors. This will force charities to use cheaper methods, and a good portion of donors will just stop giving or switch their support to charities that can afford to mail, if they are not comfortable with internet or other forms of donations. I am not sure how much it really in the long run will impact BC Ferries specifically, beyond what is says in the SEDAR filing. It does vary according to sector and how much simplification HST makes. It is interesting that in Ontario the addition of the HST went by very unnoticed, similar to the GST when it was implemented. There was more fuss beforehand and things died down very quickly after. Some restaurant meals are now more expensive, and I have yet to hear from my contacts what the impact has been. It remains to be seen as well if there is an impact on house sales above $400,000. Time will tell if the challenges in BC win or not. I suspect that a vocal minority have fueled the debate so far and the general experience of the populace as a whole has yet to be felt. Will they be ambivalent a la Ontario and Maritimes before that, or will the populace get on board with the protest. Polls are somewhat unreliable as it is a motherhood issue with everyone always saying they dislike taxes and we get taxed too much. That is different than day to day tolerance.
|
|
|
Post by Low Light Mike on Aug 21, 2010 17:45:26 GMT -8
re HST impact on BCFS:
Similar to the GST, BC Ferries provides both Exempt and Taxable services/sales for the HST.
- Cafeteria and gift-shop sales are taxable for HST - All other revenues are Exempt for HST.
Here's what that means to BC Ferries:
1) For the Cafeteria & gift-shop sales, BC Ferries collects the tax from the customer. Lets say that this is $1,000 for the month. - for the direct costs related to those sales activities (ie. cost of goods sold and other direct overhead), BC Ferries gets credit for the HST that BC Ferries has paid on those expenses. Lets say that this is $600 for the month. - Then after month-end, BC Ferries does it's HST tax return and remits $400 to the Receiver General. That's calculated as the $1,000 tax collected, less the $600 tax paid on those taxable activities.
2) For all other revenues/service activities and the overhead and administration: - There is no HST to charge the customer on fares. - For all the HST that BC Ferries pays to its suppliers on these exempt activities (which is almost all of BC Ferries costs, because it's everything except for cafeteria & gift-shop related items), BC Ferries can't claim the HST that it pays. It becomes part of its cost.
OK, so for those following along here, this means that the issue is on the costs that BC Ferries pays related to its HST exempt activities........which I've stated is almost all of its activities, so its almost all of its costs. - Those costs used to be split between some that was GST & PST taxable, and some that was only GST taxable. So some added 12% cost to BC Ferries and some added only 5% cost to the company. ie there were some things that only had 5% GST before (like contract labour, consultants, professional fees, etc). - Under the new system, anything that had GST before will now have the new 12% HST. There is no longer any break by having some expenses taxed at only 5%.
That is the reason why the HST has the effect of increasing BC Ferries expenses.
|
|