The province has renewed its contract with BC Ferries.

The four-year term covers April 1st of next year to March 31st of 2024. The Coastal Ferry Services Contract gets renewed at the end of each four-year performance term. BC Ferries gets its government funding through the contract which also defines routes and minimum service levels.

Compared to the previous deal, the government says this contract reflects increased annual funding from the province to BC Ferries of $32.5 million to support fare affordability and another $5.8 million annually to support the increase of 2,700 round trips on 10 minor and northern routes announced earlier this year.

In March the BC Ferries commissioner released the preliminary price cap decision for this period. He recommended BC Ferries be allowed to raise fares by an average of 2.3 per cent for each of the four years to keep pace with the rate of inflation. The commissioner has until the end of September to make a final decision on the average allowable fare increase for this contract.