Fresh tendering for ferry services and joint approach with Guernsey

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WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 31st JANUARY 2006

Question

Would the Minister inform members –

( a ) what consideration, if any, has been given to the possibility of opening ferry services to the Island to a

fresh tendering process? and,

( b ) what progress, if any, has there been in talks with his Guernsey counterpart regarding the possible

adoption of a joint approach to ferry services on the southern route?

Answer

1. Members are aware that towards the end of last year the former EconomicDevelopmentCommittee had approved a draft air, sea and transport policy to be progressed bythe new Minister.As far assea transport services wereconcerned, the draft stated that ferry operatorswantingto operate services to and from the Island would only be granted a ramppermitif they had a service levelagreementwhich would be issued on a non exclusive basis.

T h e context that faced the former Economic Development Committee in arriving at that view was that not

only did competition exist on the route but it had done so for a considerable period of time. The situation that emerged in December 2005 when Emeraude Jersey Ferries withdrew its service from the Jersey/St Malo route, however, meant that it was right and proper that the options available to the Island should be reviewed in light of the changing market situation.

I c onfirm that a review of the full range of options available to the Island commenced late last year including

a fresh look at whether it would be better to test the market in some way. The review of is ongoing and comments and/or advice have been sought on particular aspects of possible future options from the Law Officers Dept, Oxera, the JCRA and Harbours.

T h e Minister for Economic Development is aware of the importance of the Island's sea transport services on

both the southern and northern routes for many aspects of Island life and the Council of Ministers has been asked to consider this matter at its meeting on the 9th February 2006. The States were advised on the 13th December 2005, that the intention was to make a decision on future policy on sea transport services by the end of February 2006. That is still the intention.

2. I am pleased to inform the States that discussionshave been held this weekbetweenMinisters and officers from  Economic Development and Ministers  and officials  from  the  States  of Guernsey  Commerce and EmploymentandPublic Services Departments.

T h e purpose of the meeting was to consider how the Islands interests could best be served in securing ferry

services that the Islands need. The meeting was a continuation of discussions held in 2005 at staff level arising  from  consultations  on  policy  proposals  at  that  time  being  developed  by  the  former  Economic Development Committee.

T h e possibility of joining the Guernsey and Jersey markets is likely to be attractive to ferry operators as it is

likely to strengthen the commercial viability of routes serving the Channel Islands. It is, therefore, considered that there would be benefit from closer cooperation between the Islands to secure sufficient and reliable services that meet the needs of the travelling public.

T  he Islands have agreed that further discussions should now take place to identify the services that both

Islands require and whether these could be incorporated into an integrated service level agreement which could be used to secure ferry services on routes serving the Channel Islands. Clearly this process would include services related to the southern sector.

I t is the wish of both Islands that they should be served by reliable long term services and we will be working

together to secure that outcome.