Post by Low Light Mike on Jul 28, 2009 19:55:32 GMT -8
Here's a new thread for this topic that I posted somewhere else already. I've moved my post (and replies too) to this here thread.
Thanks to member NewFlyer for the suggestion to put this into its own thread. That also lets us discuss the TransLink aspect here too.
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www2.news.gov.bc.ca/news_releases_2009-2013/2009FIN0007-000165.htm
Keep in mind that this Gov't review is just a fishing-expedition looking for ideas for improvement. The Province can't interfere by telling the ferry company how to operate or where to cut costs....unless the Province does something legislative or tries to break the contract. (ask a health care worker about whether the Province has ever broken a legal contract.....).
The Province could try to amend the Coastal Ferry Agreement or Act, but I'm not sure what they're legally allowed to do.
The Province could try to amend the Coastal Ferry Agreement or Act, but I'm not sure what they're legally allowed to do.
I would think, with little education on the subject, they could do anything they wanted being the largest only voting shareholder. Really, if they had trouble getting BCFS to comply with anything they could remove 15% or so of the subsidy and let the company go bankrupt.... But I realize that's not really how things are done, in the real world.
Thanks to member NewFlyer for the suggestion to put this into its own thread. That also lets us discuss the TransLink aspect here too.
===========
Province of BC is reviewing BC Ferries:
www2.news.gov.bc.ca/news_releases_2009-2013/2009FIN0007-000165.htm
PROVINCE LAUNCHES REVIEW OF INDEPENDENT AUTHORITIES
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.
==========
BACKGROUNDER
TRANSLINK, BC FERRIES REVIEW TERMS OF REFERENCE
The assessment should include a review of the models, including:
The division of responsibility between the Province, the respective entities, commissions and authorities.
The size, composition, appointment process and compensation for the board of directors of the BC Ferry Authority, BC Ferry Services Inc as well as the South Coast British Columbia Transportation Authority.
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 of the entities 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.
In addressing these matters, the comptroller general will:
Review all relevant legislation, contracts and agreements.
Review the December 2006 auditor general report entitled “Changing Course – A New Direction for British Columbia’s Coastal Ferry System.”
Review the January 2001 auditor general report entitled “Transportation in Greater Vancouver; A Review of Agreements Between the Province and TransLink, and of TransLink’s governance structure.”
Review the British Columbia Ferry Commission and Regional Transportation Commissioner Annual Reports.
Review TransLink annual reports.
Retain technical experts and conduct studies, research and analysis (e.g. financial review including debt management) as deemed appropriate.
Consult with the commissions, authorities, and operating entities, as well as any other stakeholder deemed appropriate.
Contact:
Erin Kelly
Public Affairs Officer
Ministry of Finance
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.
==========
BACKGROUNDER
TRANSLINK, BC FERRIES REVIEW TERMS OF REFERENCE
The assessment should include a review of the models, including:
The division of responsibility between the Province, the respective entities, commissions and authorities.
The size, composition, appointment process and compensation for the board of directors of the BC Ferry Authority, BC Ferry Services Inc as well as the South Coast British Columbia Transportation Authority.
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 of the entities 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.
In addressing these matters, the comptroller general will:
Review all relevant legislation, contracts and agreements.
Review the December 2006 auditor general report entitled “Changing Course – A New Direction for British Columbia’s Coastal Ferry System.”
Review the January 2001 auditor general report entitled “Transportation in Greater Vancouver; A Review of Agreements Between the Province and TransLink, and of TransLink’s governance structure.”
Review the British Columbia Ferry Commission and Regional Transportation Commissioner Annual Reports.
Review TransLink annual reports.
Retain technical experts and conduct studies, research and analysis (e.g. financial review including debt management) as deemed appropriate.
Consult with the commissions, authorities, and operating entities, as well as any other stakeholder deemed appropriate.
Contact:
Erin Kelly
Public Affairs Officer
Ministry of Finance
Keep in mind that this Gov't review is just a fishing-expedition looking for ideas for improvement. The Province can't interfere by telling the ferry company how to operate or where to cut costs....unless the Province does something legislative or tries to break the contract. (ask a health care worker about whether the Province has ever broken a legal contract.....).
The Province could try to amend the Coastal Ferry Agreement or Act, but I'm not sure what they're legally allowed to do.
The Province could try to amend the Coastal Ferry Agreement or Act, but I'm not sure what they're legally allowed to do.
I would think, with little education on the subject, they could do anything they wanted being the largest only voting shareholder. Really, if they had trouble getting BCFS to comply with anything they could remove 15% or so of the subsidy and let the company go bankrupt.... But I realize that's not really how things are done, in the real world.