What type of viability study does the Committee envisage holding into whether the St. Malo-Jersey route is a natural monopoly

1240/5(1988)

QUESTION TO BE ASKED OF THE PRESIDENT OF THE HARBOURS AND AIRPORT COMMITTEE ON TUESDAY, 4th NOVEMBER 2003 BY SENATOR P.V.F. LE CLAIRE

Question

Would the President –

1. a d vise memberswhat type of viability study the Committeeenvisagesholding into whether the St.Malo- Jersey  route is  a natural  monopoly' and  whether the  Committee believes  that  the Administrateur Judiciare ofEmeraudeLines', MadameSophieGautier,is able to help in this process?
2. c o nfirm that the Committeeconsiders that such a study cannotbe undertaken by the Jersey Competition Regulatory Authority?
3. i n form members what he meant whenhe stated that hewanted to make sure such a studywould be truly independent and the further away from government the better' and was this statement an indication that he does not believe that the Jersey Competition RegulatoryAuthority is truly independent?

Answer

1. T h e type of viability study is best indicated in the following drafttermsof reference:

1 . To carry out an in depth review of the economics and future viability, of passenger and car carrying ferry services between the Island and France and the Island and the United Kingdom operating year round with capacity to meet the demands of all categories of user (island residents, tourists, day trippers, commercial) and at the best value; and

2 . T o recommend action that could be taken to enhance the viability and security of the services; and

whether  or  not  the  long  term  interests  of  the  Island  would  be  served  by  encouraging  open competition'.

I s h a ll expect the study to take full account of the work already done and to build on it so that we are not

paying for old ground to be re-worked.

M  e m bers may want to consider these draft terms and I am more than happy to receive input, which might

improve the specific nature of them.

I t i s my opinion that those selected to carry out the study will wish to meet with a wide range of people.

The study will need to concentrate on economic and commercial facts, rather than opinion. In this regard, the Administrateur Judiciaire of Emeraude Lines may well be a key person.

2. T h e JerseyCompetition Regulatory Authority made it clear in its car ferry study(page6, 3rd bullet point) that consultantswouldbe needed.

I t is also explicit in article 6(3) and 6(4) of the Competition Regulatory Authority (Jersey) Law 2001, that

external bodies with their own expertise should advise the Authority and that such advice can then be provided to the Economic Development Committee.

T h e study cannot therefore be undertaken by the JCRA itself.

3. B y making this statement I meant that we need commercial facts toprogress matters. Opinionsorpersonal loyalties toonecompanyor another can obscure the facts. I think that a studycarried out independently of Government will help to reassurethepublic that they are getting the facts.

4. A  s to the extent oftheAuthority'sindependence, its functionsunder article 6(2)and 6(4) are quite independent ofgovernment as is madeexplicitunder article 10(2)and I certainly donotdisputethat.