BC Ferries will lower fares by two per cent later this month using a rebate from the federal government.
Federal minister Stockwell Day and BC Ferries CEO David Hahn made the announcement Friday morning in Whistler at the Union of B.C. Municipalities convention.
The fare cut is due to take effect on Monday, Oct. 18.
"Our customers will significantly benefit from this announcement," Hahn said in a release. The CEO said the decision represents a "substantial commitment" from the B.C. government to lower fares on the minor, northern and Sunshine Coast routes.
BC Ferries is also allocating $20-million to upgrade assets in the ship repair and maintenance business, though details have not been finalized.
Ottawa is returning $119.4-million to the ferry corporation for import taxes it paid on four new Coastal class ferries built in Germany. The vessels launched in B.C. in 2008.
BC Ferries says the vessels were delivered $150-million under budget as a result of the rebate.
