VICTORIA — BC Ferries says it will be “impossible” to keep fares down without more government money after B.C.’s transportation minister reversed course Wednesday on possible major changes to ferry service from Nanaimo to the Lower Mainland.

Todd Stone said he heard loud and clear that it was not acceptable to consider closing one of Nanaimo’s two major ferry terminals, or reduce or redirect service to Nanaimo from Horseshoe Bay to the Tsawwassen terminal. Tuesday he told The Sun those changes were up for consideration.

“I determined over the last 24 hours in discussing this at length with my Island colleagues, who are doing their job on behalf of their constituents on Vancouver Island and in West Vancouver-Sea to Sky, that consolidating the two terminals in Nanaimo is not a good idea,” said Stone. “So we’re not going to pursue it.”

Stone also said the government will not allow BC Ferries to eliminate the Departure Bay to Horseshoe Bay route, though it had been suggested Tuesday that vehicle traffic could be redirected from there to Tsawwassen because of $200 million in upgrades required to the Horseshoe Bay route.

The flip-flop left BC Ferries’ CEO Mike Corrigan stunned, because Stone’s decision effectively stopped the ferry corporation from looking for savings by altering its major routes, which account for 80 per cent of its costs.

“Without more government funding in the ferry system it’s going to be impossible to hold fares to inflationary increases,” said Corrigan, who also stated that fares will rise system-wide by about four per cent per year unless changes are made.

BC Ferries says it needs $45 million over four years from the province to keep fare increases at a rate of increase of two per cent.

“If 80 per cent of our costs come from the major routes and we’ve already looked at the other 20 per cent of the minor [routes] and north [routes], there’s really not a lot left considering we can’t change the coastal ferry contract without government input.”

Corrigan said he did not hear from Stone before government backtracked on consultation.

“The government has certainly short-circuited the consultation process. We were expecting it to take anywhere from 1.5 to two years to get through the process and it’s taken less than 24 hours.”

Stone’s retreat came after blowback from the minister’s Liberal colleagues and a major public outcry.

Stone admitted he heard “some very strong and eloquent arguments” from Comox Valley Liberal MLA Don McRae and Parksville-Qualicum Liberal MLA Michelle Stilwell on Tuesday and Wednesday that closing the Departure Bay terminal could harm the economy of the mid-Island and coast.

“It’s a great transportation link and my constituents want it to continue,” said McRae.

Stone said he moved quickly to “turn this around” and rule out the closures “to avoid any further concern or anxiety among people on Vancouver Island in particular.”

Residents, merchants and ferry commuters expressed frustration in the sleepy oceanside village of Horseshoe Bay, where many of the 1,000 permanent residents depend on ferry traffic to keep their businesses alive. Predictions of economic doom led to some business owners using the term “ghost town” to describe Horseshoe Bay’s future should the plan go ahead.