Are there any policies or plans in place to increase competition for the freight market

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WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT BY DEPUTY T.A. VALLOIS OF ST. SAVIOUR

ANSWER TO BE TABLED ON TUESDAY 8th JUNE 2010

Question

"Could the Minister advise whether there are any policies or plans in place within the Economic Development Department to increase competition for the freight market; will there be changes made over the course of the next 12 months and, if not, why?"

Answer

The States Strategic Plan 2009-14 is clear. We are to "Maintain a strong, environmentally sustainable and diverse economy." (Priority 2 in the Plan)

The Department's policy is also very clear: We have not in the past, nor do we at the moment foresee, a need to interfere with the open market arrangements that have long existed in the sea freight market.

Furthermore, in 2008 the States agreed some important changes to the 1962 Harbours (Jersey) Regulations. These now lay down the way facilities and services can be authorised by the Harbour Master. Crucially, the States issued Policy Guidelines (as attached). Key amongst those are Objectives (b), (c) and (d):

2. to satisfy all current and prospectivedemandsfortheservicesand facilities;
3. to promote competition, efficiency, economyand effectiveness incommercial activities connected with portand shipping services;
4. to impose a minimumof restriction on persons engaged in commercial activities connected with port and shipping services.

There are three separate and long-established shipping companies running regular freight services to and from Jersey. These are Condor, Huelin Renouf and Channel Logistics.

In addition to increased passenger and car capacity the new Condor Rapide is able to take light freight up to 7.5 tonnes, enhancing the Island's ability to export local produce such as shellfish. Meanwhile, Huelin Renouf now runs two ships and only extended its services this Spring to include Cherbourg and Alderney in the ports served from Jersey.

Although the current arrangements provide more than enough freight capacity there is no bar to other operators applying to enter the market. Having said that, there is no reason at the moment to make new plans to deliberately seek to increase competition in an already very competitive market.

Harbours (Jersey) Regulations 1962, as amended SCHEDULE 1 (Regulations 4, 5 and 6)

POLICY GUIDELINES TO BE FOLLOWED BY HARBOUR MASTER

1 Application

This Schedule applies to the following functions of the Harbour Master –

1. the designationof a facility or service underRegulation4(1);
2. the grantof a permitunderRegulation5;
3. the designationof a facility or a service under Regulation 6(1);and
4. the negotiationof an agreementunderRegulation 6(7).

2 Performance of function by Harbour Master

The Harbour Master must perform a function to which this Schedule applies in a manner that is best calculated to ensure that, so far as is reasonably practicable and safe –

1. shipping services and facilities in the harbours and territorial waters; and
2. shipping services betweenJerseyand other jurisdictions,

are provided in a manner that achieves the objectives mentioned in paragraph  3.

3 Objectives

The objectives referred to in paragraph 2 are –

1. to protect and further the lo-ntegrm interests ofend-usersof the servicesand facilities;
2. tosatisfy aclulrrent andprospectivedemands for the services and facilities;
3. to promotecompetition,efficiency,economy and effectiveness in commercial activities connect with portand shipping services;
4. toimpose a minimumof restriction on persons engaged in commercial activities connected with p and shipping services;
5. to ensure that personsengagedincommercial activities connected with port and shipping servic have sufficient expertise and financial and other resources to conductthe activities.

4 Harbour Master not to show preference or to discriminate

The Harbour Master must not show undue preference or unfairly discriminate in exercising a function to which this Schedule applies.