Report on provincial ferry services highlights maintenance costs, safety concerns

The Auditor General's annual report of provincial ferry services pointed to the increasing costs of aging vessels and inconsistencies in safety inspections as issues needing remedy.

John Noseworthy's report, which was released last month, showed the average age of the 18 vessels in the province is 34 years, with the average age of 10 government-owned vessels at 30 years, while the average age of the eight contracted vessels is 39 years.

A consultant hired by government concluded that vessels more than 25 to 30 years are typically unreliable and expensive to maintain, the report stated.

The two ferries which run across the Strait of Belle Isle, the M.V. Apollo and the M.V. Sir Robert Bond, are 39 and 34 years old respectively.

Aging vessels become increasingly costly, the report found. For instance, The Bond went from $4.9 million in 2007 to $8.4 million in 2009, an increase of $3.5 million or 70 per cent. The two government-owned vessels operating in Labrador (The Bond and The Northern Ranger, which services Goose Bay and the southeast and north coasts) experienced the highest increase in costs from 2007 to 2009.

Mr. Noseworthy told the Pen that in 2005 government committed to developing a plan for ferry operations throughout Labrador. In 2007, the Northern Strategic Plan was released for five fiscal years, from 2008 to 2012, with an objective to evaluate options for the provision of two new ferries for the Labrador Straits ferry route that would provide year-round services (pending ice conditions).

"We didn't see any evidence at the department of an evaluation of those options or for the replacement of two vessels for Labrador," Mr. Noseworthy said. "We thought that such an evaluation was particularly important given the age of the vessels and the conditions in which they operate."

But Transportation Minister Tom Hedderson maintains government is in the midst of the vessel replacement strategy, though it's not contained in a single document.

"We know the age of the vessels and the rising costs, and that's why we have been, in recent years, trying to strengthen our marine service a number of different ways," Mr. Hedderson said.

"We pay attention to the Auditor General and we take what he says seriously. We don't always agree, but we react and then we incorporate those recommendations into where we're going."

Mr. Noseworthy said the Department of Transportation and Works needs to do a better job planning and keeping records.

He said Transport Canada inspects vessels annually. However, the consultant the department hired to look at the vessels indicated that Transport Canada considers compliance with its regulations and standards necessary - but not sufficient to provide for safe operation.

"So operators should develop safety standards in addition to that of Transport Canada," Mr. Noseworthy said. "Interestingly enough, the department did develop standards in 2009-2010 for government-owned vessels, but not for these contractor-owned vessels (i.e. The Apollo).

"So there's nothing in the contracts with those contractors that would allow the department to conduct these safety inspections. They can do physical inspections, but not these safety inspections. So they haven't developed any additional standards and they don't conduct those."

Minister Hedderson said his department hired a safety compliance officer last March and hired a contract compliance officer last June.

"In actual fact, we understand that Transport Canada takes care of the technical safety standards that are required of all the vessels in Canadian waters, and we've gone a step forward and hired a safety com pliance officer; that person now has been tasked with developing a safety management system manual," he said, adding that to date there have been three inspections and audits of contractors.

The report failed to find that government conducted regular physical inspections and audits.

Mr. Noseworthy said there wasn't enough planning, documentation and analysis on file to support some decisions.

For instance, in April 2009, the department called tenders for a contractor-owned vessel to operate ferry service in Labrador for a 10-year period with an option for 5-year renewal. There's no information on file to show that all options had been considered and that a contractor-owned vessel was the optimal arrangement, he said.

"Hopefully they will reflect on this and make some changes and do a better job in their planning and support exactly what they're doing and look at the physical and safety inspection issue," Mr. Noseworthy said.

But he added government's response to findings and recommendations has historically been positive.

Following up on past recommendations, he found 90 per cent of the time government acted on recommendations.

"Overall I'd have to say the response to recommendations has been quite good."