Post by EGfleet on Jun 14, 2006 9:40:43 GMT -8
B.C. Ferries receives $67.9M on sunken ferry insurance claimCanWest News Service
Published: Monday, June 12, 2006
BC Ferries received $67.9 million in insurance compensation for the sinking of the Queen of the North earlier this year, the corporation said Monday.
The settlement was noted in the company’s year-end financial details, in which net earnings increased $14.7 million, or 2.6 per cent, over last year to $49.9 million.
The company said $6.6 million of the proceeds from the insurance settlement offset insurable losses, and the balance will be recognized in the first quarter of its 2007 fiscal year.
"It is important to note that all of our earnings are invested back into our terminal and vessel construction programs," said BC Ferries president David Hahn. "Over the next five years, we will invest $200 million in our terminals and add eight new vessels at a cost of $1 billion to ensure the continued safety and reliability of our fleet."
The Queen of the North was travelling from Prince Rupert, B.C., to Port Hardy, B.C., when it rammed at full speed into Gil Island on March 22 and sank 400 metres to the ocean’s floor. There were 101 people on board. Gerald Foisy, 46, and his companion Shirley Rosette, 42, died.
Foisy’s adolescent daughters have since launched a lawsuit against BC Ferries. No figures are cited, but 15-year-old Brittni Lee and 12-year-old Morgan Taylor are seeking damages, the cost of bringing the suit and whatever other relief the court considers appropriate.
Alexander and Maria Kotai are also asking BC Ferries to compensate them for their physical losses as well as for pain and suffering. The Kotais said in a lawsuit that they lost all their clothing, family photos and heirlooms when the ferry sank. They were moving from Kitimat, B.C. to Nanaimo, B.C.
The Transportation Safety Board sent a letter to BC Ferries on May 11 advising the crew was not familiar with new or modified equipment installed on the Queen of the North during a refit just weeks prior. Of special concern was new steering equipment, including the gear for autopilot.
The safety board, Transport Canada, and the RCMP are conducting investigations into the sinking. BC Ferries is conducting two investigations.