Ferry services won't face fresh competition probe

By Ross Findon and Richard Wright

Monday, January 14, 2013

 

A SENIOR government figure has ruled out creating any 'public service obligation' on ferry companies.

Isle of Wight MP Andrew Turner raised the issue of Wightlink cuts in parliament on Thursday, a day before he met with the Isle of Wight Trades Union Council (TUC) to discuss the situation.

Mr Turner, who described ferry services as a lifeline to the Isle of Wight, told parliament: "In 2009, a market study found the threshold to involve the Competition Commission had been reached, but it was decided not to make a referral.

"Will the Leader of the House arrange for a statement to be made on what alternative remedies might be available?"

House of Commons leader Andrew Lansley said he would arrange for the Departments for Transport and of Business Innovation and Skills to meet with Mr Turner to discuss the issue.

But he ruled out any intervention on competition grounds.

Mr Lansley said: "Without going into detail, let me say that there is no opportunity to intervene over any lack of competition in relation to these services.

"From the Department for Transport point of view, neither is there a case for a public service obligation."

Under European Union law a public service obligation allows subsidies to be paid to companies providing an agreed level of service on unprofitable routes.

On Wednesday, the Isle of Wight Council is to discuss a motion put forward by leader Cllr David Pugh calling for the government to recognise ferry services as vital infrastructure routes, similar to train and bus routes.

Following Mr Lansley's comments, Cllr Pugh said: "I read with interest the Leader of the House’s comments.

"The motion to Full Council does not explicitly seek a public service obligation, but proposes that the Council urges the government that these services should be treated with a similar strategic status to England’s bus and train networks."

Following their meeting with Andrew Turner, Isle of Wight TUC spokesman Steve Butler said: "It is our view that the ferry services cut by Wightlink should be re-instated.

"That would give more opportunity for people to work in mainland employment and also enable Islanders to have more access to mainland venues for social occasions.

"We do urge the MP to seek talks with government departments to obtain some form of subsidies for inward investment that is needed to enable companies to set up businesses.

"At the present time the high cost of ferry services is a barrier in bringing materials to the Island and then returning any finished product to the mainland."

He said the Isle of Wight TUC wanted to be part of any Island delegation to Whitehall to put forward the Island situation.

Reporter: ross.findon@iwcp.co.uk

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by Tim Brayford

15th January 2013, at 13:20:14

Regarding the fixed link ask yourself:- if you were a venture capitalist which would you rather fund, a fixed link or a new ferry service. If you are one of the Islands burgeoning unemployed ask yourself:- do you want a proper well paid full time job or not, a fixed link will help facilitate this, the existng ferry service clearly does not, romantic notions about living on an island should not cost people their livelihoods.

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by Mark Hitchman

15th January 2013, at 08:18:54

A bridge will only be built if there is a deal within a new PFI agreement, and I can't see that happening!

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by GLEN MANEY

14th January 2013, at 23:32:25

I'd hate to see a Bridge.

I do think though that the ferry charges are a restriction of trade for Islanders and that there should be a daily foot passenger ticket of £5 return for anyone being able to prove an Island address and a mainland employer.It's simple economics.Workers bring their money home and spend it with Island businesses.

I think competition to Wightlink and Red Funnel is the only answer UNLESS these companies actually look long term instead of short term.

They are one of the fundamental reasons behind the slow economic death of the Island from tourist,business and individual viewpoints.

It surely has to be COMPETITION time.

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by Den Young

14th January 2013, at 19:59:02

i told you all not to hold your breath ,NOTHING WILL CHANGE

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by DAVE SCOTT

14th January 2013, at 19:07:02

q: Mike Crowe 'the loud-mouthed ones' - he might be a self-obsessed dilusionist but he DOES have a wicked sense of irony !!!

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by Mike Crowe

14th January 2013, at 17:25:41

"" Our survival depends entirely on an asset management company and a foreign owned asset stripper.""

My posting, where I was trying to explain to the dumbheads about asset stripping was removed.

You won't have to wait long for the Bridge Tim. Then see the loud mouthed ones slink off with their tails between their legs :-)

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by Richard Curzon Beet

14th January 2013, at 17:13:03

This simply shows the total contempt that Government has for the people of the Isle of Wight. If there is no public service obligation on the ferry operators then we cannot be regarded as UK citizens as we do not have the same rights of travel and passage of goods and services as the rest of the country. Our survival depends entirely on an asset management company and a foreign owned asset stripper. Great! At least we know where we stand. I know the ferry companies are businesses but so are many other companies who manage to make profits and fulfil their public service obligations. Can you see the bus or train companies being allowed to give up their public service obligations? The Solent is our road to the rest of the world. As UK citizens, it is our right to travel freely like anyone else.

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by Tim Brayford

14th January 2013, at 17:12:26

Forget the ferries,move the IW into the 21st century by building a fixed link.

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by Martin Heath

14th January 2013, at 16:09:31

I doubt DP can recall very much at all. The man seems to be blessed with an inordinate amount of incompetence.
Net result, the ferry companies still have the fare paying public over a barrel. I can't see this situation changing any time soon.

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by Dave Dawson

14th January 2013, at 16:00:29

Perhaps Councillor Pugh recalls that his failure to support the Islands MP with his initial submissions that helped scupper the original investigation.

Shame on you Pugh

Any views or opinions presented in the comments above are solely those of the author and do not represent those of the Isle of Wight County Press.

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