Guernsey & Jersey Joint Policy Statement on Sea Links
The Jersey and Guernsey Governments agreed a Joint Policy Statement on Sea Links in early 2008 that provided for car and foot passenger ferry operations through to 31 December 2013. Because it is time-limited that statement has been under review together with the memoranda of understanding currently in place with the incumbent service operator. The joint policy statement is not intended to create any third party legal rights.
Detailed discussions have been undertaken during the last year and, for a variety of reasons, new long-term memoranda of understanding with the incumbent operator are not considered appropriate at the present time. However, to ensure continued provision of effective roll on/roll off (RoRo) passenger, car, and freight services in the short-medium term, unless there is demonstrable market or operator deficiency, neither administration will pro-actively seek new operators on any existing route in the period prior to 31 December 2018.
Particular factors taken into consideration in adopting this policy decision include the introduction of the International Maritime Organisation and EU regulations on sulphur emissions by ships that will come into effect in 2015 that will necessitate expensive engine modifications to its traditional Ro/Pax and Ro/Ro freight ships. In addition, new ship designs include vessels driven by LPG (liquid petroleum gas) and the best type of replacement high speed vessels, at this stage, is far from clear.
This presents an opportunity for the two Island governments to re-state their joint resolve to provide a coordinated and effective approach to sea transport whilst accepting that no long-term solution is currently available but needs to be considered. During the five year period between 2013 and 2018 the Jersey and Guernsey governments will continue to develop a coordinated and effective approach to sea transport that will lead to a fully integrated long term policy and strategy position. Thus, as a basic policy position, it is believed that, in the interests of the people of the Islands, the States of Guernsey and the States of Jersey should share a common aspiration:
“..to maintain and develop year round, long-term, reliable, robust and reasonably priced roll on/roll off passenger, car and freight ferry services. These services should be of sufficient quality and frequency to meet the travel needs of Island residents, the business community and tourists.”
The appropriateness of this aspiration was tested via the pan-Island consultation on sea links that was conducted during the latter part of 2010 which revealed broad support for the Islands’ aims.
Policy aims can, however, conflict with each other - a low priced fare may be bought with a consequently lower quality or less reliable service. The guarantee of a robust service (such as an all-weather conventional ship available at the same time as a fast ferry) comes at a price. Unrealistically low fares and higher capacity may result from competition but make it impossible to sustain the breadth of service in the long-term given local economies of scale. Both Islands recognise this inevitable, and to some extent insoluble, dilemma and on the other hand, the importance of such links to the Islands.
Government can guide and oversee matters but there is always a limit to how much is achievable by overt intervention. A good level of service and reasonable fares are undoubtedly achieved by a strong relationship between shipping operators and their customers and not by government standing proxy for one party alone. Because of this, the current stance of the two Islands is that they will most effectively achieve their sea transport aims by establishing some overarching parameters and keeping regulatory matters to a minimum. This would only be reviewed if there were material market or operator failure to meet the policy aims of this statement.
On the UK northern routes, a year round reliable service is currently being achieved by an operator offering both a conventional ro-pax and fast ferry services. That operator also provides year round reliable fast ferry services on the southern route to France. However, should a new application be received for services to and from the UK and/or France, there will be value in assessing the effect that additional competition and expanded capacity could have on the northern and/or southern routes and whether or not a potential new operator could provide an acceptable level of services, (i.e. a standard of service that meets the Islands’ agreed ‘common aspiration’, as stated above), in the event that it became the sole operator and/or its impact upon long term service provision.
Whilst the Islands’ basic policy position, as described above, concerns RoRo services for cars and foot passengers, as a consequence of reviewing the Joint Policy Statement, Guernsey has deemed it appropriate to include within the Statement the provision of RoRo freight ferry services for the Island that should be of sufficient quality and frequency to meet the needs of its residents and the business community. Jersey endorses that position. However, it does not seek to have a new explicit agreement on freight which is already managed through permits issued by the Harbour Master and which appears to operate effectively.
The Chairman of the External Transport Group in Guernsey and the Minister for Economic Development in Jersey have agreed that:
- In the medium-term RoRo passenger car ferry services will not be subject to a tender process.
- The administrations in Guernsey and Jersey will work with any prospective operator to ensure that the Islands’ sea transport (car ferry) needs will continue to be adequately served. Remedies will be sought for identified deficiencies.
- Unless there is demonstrable and material market or operator deficiency generally, with this joint policy statement, or with the memoranda of understanding, neither administration will pro-actively seek new operators on any existing RoRo route in the period prior to 31 December 2018. However the option to do either of these things or to run a tender process will be retained and exercised in the event of such deficiency. Notwithstanding the underlying policy regarding a tender process, the Islands and the incumbent operator will formally review and make recommendations on the extension, or otherwise, of arrangements beyond 31 December 2018 no later than 31 December 2016.
- Notwithstanding the above, an application from any new operator would be fully evaluated with particular regard to how the proposal might meet the policy aims of both Islands.
- Any decision whether or not to seek tenders for services would be taken by the two Islands together. If, to achieve the policy aims, a tender process was believed necessary on any particular route, the incumbent operator would be given eighteen months’ notice of the intention to tender, except where there was a significant threat to adequate service which demanded a shorter timescale.
- In the case of Guernsey, the preceding five points of agreement will also apply to the provision of RoRo freight ferry services.
The EU Regulation 1177/2010 on Sea Passenger Rights comes into force on 18 December 2012 and will afford a better degree of protection to passengers in respect of certain aspects of the service they receive. Compensation for delayed or cancelled services will in particular be more readily available than at present. In addition to the requirements placed upon the operator by these provisions the Islands believe that, in respect of car and foot passenger services, any operator should:
- Maintain published information in the form of a Customer Charter, Terms and Conditions of Carriage or some other means, which as a minimum will include the effective management of passengers and their cars in the event of delayed, disrupted or cancelled sailings and meet other requirements laid down by the two administrations;
- Address all customer complaints openly, effectively and swiftly;
- Undertake passenger surveys on a regular basis to test the services delivered and publicise the results;
- Maintain and publish a record of vessel performance against schedules and publicise results;
- Seek comment from the relevant administration for annual sailing schedules;
- Seek approval from the relevant administration for increases in maximum prices and to provide commercial reasoning for such increases.
The primary mechanisms that influence restrictions upon fare increases are the market and actual, or the threat of, competition. Alternatively, the threat of entry, substitution to other modes of transport and consumer behaviour (choosing not to travel) may act as a sufficient constraint on prices where direct competition does not exist. The Islands’ current stance is to maintain the option to further develop local competition law or increase the use of competition regulatory authorities rather than direct government intervention should this prove necessary.
Customer complaints not successfully dealt with by the operators themselves will as far as possible be addressed by the appropriate bodies such as local Trading Standards services and the UK Passenger Shipping Association.
The mechanisms that each Island uses to manage the routes, control market access and administer the harbours will differ and will be set out in individual Island agreements or a memoranda of understanding. However, the broad policy structure made explicit in these statements will be adhered to by both administrations.
States of Guernsey | States of Jersey |
Chairman External Transport GroupDated - | Minister for Economic Development Dated - |
gov.je