Transportation minister Shirley Bond has ordered a review of TransLink and BC Ferries aimed at cutting costs and ensuring they're financially sustainable.

The review means a possible new overhaul of TransLink and its board, which was radically transformed less than two years ago by former transportation minister Kevin Falcon.

"We want to better understand why their fiscal challenges exist," Bond said. "I felt it was a prudent step."

The division of responsibility between the province and the two independent authorities is to be examined, as is the size, composition, appointment process and compensation for their boards of directors.

The pay levels of the new TransLink board have been controversial – the nine unelected directors are now nearly paid five times more than the former 12-member board of local mayors and city councillors were.

Critics have also objected to the new board's policy of meeting behind closed doors.

The review is to generate options to:

- Minimize administration costs and put hard caps on pay levels for senior executives and board members.

- Protect clearly mandated customer service levels.

- Improve transparency and public accountability for decisions and performance levels.

Bond wouldn't say if she would restore a more directly elected board to TransLink, but said pay levels for the board and senior staff are a worry.

She also cited the "unfortunate" move by BC Ferries directors last year to vote themselves a 60 per cent pay hike.

"There is concern about compensation costs," Bond said. "I believe we've got to look at the administrative load, the number of people involved in administration – there's a whole series of questions to be asked."

Also to be examined are the roles of the Ferry Commission and the regional transportation commissioner and Mayors' Council on Regional Transportation.

The review comes as TransLink is in the throes of determining how to fund its aim of an ambitious $450-million transit expansion that has the backing of a rare consensus of the region's mayors.

Bond said TransLink, like other provincial agencies, needs to first look for internal efficiencies before seeking more taxpayer support.

She said she believes a more "moderate" expansion option can be found that's manageable for TransLink but still allows construction of the promised Evergreen Line to Coquitlam.

Area mayors and the board have been united in calling for Victoria to approve new funding mechanisms for TransLink, warning of severe transit service cuts if the authority doesn't get enough money to finance a major expansion.

They also fear a scaled-down expansion could eliminate rapid transit extensions in Surrey and Vancouver from the plan, and trigger fresh infighting among cities.

The reviews are to be performed by Comptroller General Cheryl Wenezenki-Yolland and are to be complete by Sept. 30.

The announcement comes as TransLink's board scrambles to table its proposed 10-year plan by the end of this week.

The mayors council must vote by the end of October on whether to approve supplemental funding.

Port Moody Mayor Joe Trasolini said he's hopeful the review is a signal the province is realizing TransLink needs more money beyond what local residents can provide.

"Perhaps the reality is hitting home," Trasolini said, adding it's possible the province may opt to take over complete responsibility for TransLink.

Local cities were stripped of virtually all power when the new board took over in January 2008.

Surrey Mayor Dianne Watts, who chairs the mayors' council, said area mayors are frustrated their only role in running TransLink is now the unpopular job of approving tax hikes.

TransLink executives put a brave face on the review announcement and skirted questions of whether they're overpaid.

CEO Tom Prendergast said he believes the review is justified and can be done as work proceeds to craft the 10-year plan.

"I don't see it as meddling," he said, adding the province has a duty to ensure the transportation authority is serving the public well.

"What's most important is that we don't lose sight of what we need to do for the region, which is get the appropriate amount of money for the size of expansion the system needs to undertake."

He confirmed the review may look at options to contract out or privatize transit service.

Maureen Bader, B.C. director for the Canadian Taxpayers' Federation, said TransLink "needs to be completely reformed" and introducing the threat of privatization would help.

"Unless you bring in competition from the private sector, they have no incentive at all to rein in spending," she said. "They just go back to the taxpayer for more money. They don't have to worry about going out of business."

James Steidle of the group Keep TransLink Public said the TransLink board should be directly elected.

"A lot of people have been concerned about transparency and accountability," he said. "They haven't had open board meetings for the last year and a half, which is crazy given the decisions they're having to make."

Burnaby Mayor Derek Corrigan called the new governance review an indictment of Falcon's reconstruction of TransLink.

"Pretty clearly, Shirley Bond doesn't want to wear the mess that was created by Kevin Falcon," he said.

Corrigan said the review also underscores the standoff now between local mayors, who are refusing to raise property taxes to fund TransLink, and the province, which won't put up other funding sources.

"So when you're in that desperate a situation the thing to do is to have an independent review."