By Alex Binkley
True North Perspective
The auditor general is the guardian of the public purse strings so it's quite astonishing to see her admonish the federal government for an instance of not spending enough money.
In a special report to Parliament, Auditor General Sheila Fraser cuffed Ottawa for under funding the Marine Atlantic ferry service between Newfoundland and Nova Scotia. It's guaranteed as part of Newfoundland's joining Canada.
Politicians and businesses in Atlantic Canada have complained for years about the deteriorating quality of the operation and Ottawa has responded with the occasional band aid. Fraser says Ottawa has to get serious before Marine Atlantic completely loses the ability to move half the freight and passenger traffic to the island. It needs to invest $1.5 billion over the next 25 years to replace old ferries and shore facilities as well as improve the management of the operation.
The problems at Marine Atlantic didn't develop during the last few years although the Harper government didn't use its stimulus plan to do anything to fix them. And they are indicative of what other government operations—VIA Rail, the Canadian Coast Guard and the military have struggled with for years. VIA finally hit the budgetary jackpot this year. The ports and airports did as well until they were taken over by local operators.
Successive federal governments have lacked the will power to set up these operations on a properly managed and funded basis with the result they get shortchanged regularly in the federal budget process. They don't generate sufficient votes or seem important enough to Ottawa centric bureaucrats. The financial shortcomings are often compounded by poor management and leadership caused by patronage appointees to senior jobs.
Conditions are so bad at the ferry service that during the peak tourist period of the summer of 2008, the ferries ran on time on only 10% of the trips. The others were delayed by mechanical breakdowns and weather.
But it gets more remarkable. Marine Atlantic finally convinced the feds in 2008 to let it contract for an additional ferry. It does and the service finds a vessel that comes too late and in need of considerable work before it's ready for service. On top of that, the Canada Revenue Agency wants $12 million in taxes for the ship. What value does the taxpayer get from having one part of government tax another?
Fraser wants the federal government to create a long-term funding plan for Marine Atlantic so it can acquire new ferries and upgrade its facilities in Port aux Basques and North Sydney. But Marine Atlantic and Transport Canada are still trying to reach an agreement on a plan for re-equipping the ferry service. It makes one wonder how the auditor general's staff can see the problem but not Transport.
November 27, 2009 — Return to cover.
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