OXERA report into sea transportation links between Jersey and both the UK and France

1240/5(2155)

WRITTEN QUESTION TO THE PRESIDENT OF THE HARBOURS AND AIRPORT COMMITTEE

BY THE DEPUTY OF ST. JOHN

ANSWER TO BE TABLED ON TUESDAY 14th SEPTEMBER 2004

Question

1. F o llowing the publication of the report byconsultantsOXERA into sea transport links betweenJersey and both theUnitedKingdomandFrance, would the President explain why he questioned the conclusionof the report on the basis that the Consultants had "underestimated" the amountof competition on the Jersey to St. Malosearoute?
2. D o es the Committee accept that the OXERAconclusions are very similar tothoseof the initial report published bytheJerseyCompetitionRegulatory Authority (JCRA)in that they both highlight that too much capacitycould affect the long-term viability of sea transport operators?
3. W o uld thePresident confirm whether the Committee accepts theoverallconclusion of the reporttobe that it wouldbemore beneficial to the future viability of the routes for a single operator, governed byan appropriate Service LevelAgreement, to belicensed? If so, will the Committee undertake to study the report's contents carefully and to take steps, with the Committee's officers where appropriate, to ensure that the conclusions of the report are implementedas a matter ofurgency?

Answer

I answered a similar oral question from Deputy Baudains on 20th July this year.

At that time I confirmed that the JCRA reports of 2002 and 2003 concluded that new services and routes need to be encouraged for the benefit of the Jersey consumer.

To the end of July this year private vehicle movements on the St. Malô route were up 32% over the same period in 2002. This is in despite of the problems, mainly not of their own making, experienced by the newest operator on the route. Members will recall that they were unable to utilize the Solidor V, the much smaller Aline suffered with engine failure and the replacement Seacat was not in service until after Easter.

For July alone private vehicle movements between Jersey and St Malô reached a record high of 7,788. This is 338 more than in July 2003 and 2,238 above the corresponding number in July 2002 – a 40.2% increase.

On the U.K. route, where there is a solus operator, vehicle movements have continued to decline. This indicates, initially at least, that competition has had a positive effect.

As to the recommendations contained in the OXERA report, the Economic Development Committee will be considering these and the responses to them by all interested parties, including the ferry operators, before deciding on how best to proceed and which recommendations to bring to the States.

Should the decision be to move from regulation by ramp permit to regulation by route, as suggested by OXERA, Jersey cannot act in isolation. It will be essential to have the agreement and co-operation of the Guernsey authorities.   Consultation will, therefore, need to take place with that Island's representatives. In any event, change cannot be imposed until the ramp permit for the northern operator expires in 2006.