Ferry companies could help Islanders get a better deal on cross-Solent ferries if their fare structures were more transparent – that was one of the suggestions from a meeting with the Office of Fair Trading which took place last Friday (11th August).
There was also a call for evidence about past ferry fares, as there had not been any recording of figures by previous administrations at County Hall.
The meeting, between Island MP Andrew Turner, Cllr David Pugh of the IW Council, Ken Dueck of the IW Economic Partnership, and Vincent Smith, the OFT’s Head of Competition, was designed to ascertain what information should be presented to support an reference to the competition authorities.
Mr Turner said,
“The meeting concluded that there were a number of bases on which a case could be pursued. First a complainant must show that one company has a dominant position in the market. We believe that can be done.
“Second, we need to know how hard it is for users to shift from one service to another. If you live in Cowes and work in Southampton, it may be obvious to you that you won’t use the Fast Cat. But the OFT will want to know what prevents you using the car ferry from East Cowes. If you are coming to the Island from south-west London, does it make any difference whether you cross with Wightlink or Red Funnel?
“Third, we have to show that prices have changed adversely and in a way that is not justified on the basis of the companies’ cost structures. Again, for that we need evidence. The OFT can investigate business costs, and examine (for example) whether capital financing costs are disproportionate in relation to turnover. But we need the help of Islanders – and past and present visitors to the Island – to show how fares have moved in the past, as there has been no collection of this data over the years to help provide comparisons.
“Without hard evidence of past fares, and of the extent to which users can or cannot move from one service to another, it will be much harder to make a successful case. I therefore appeal to anyone who may have this information going back over the last, say, five years, to send it to me.
“Finally, it was observed that sometimes cheaper than headline fares are available, particularly for off-peak travel, but passengers don’t know about them. It is in the interests of the ferry companies and Islanders alike that more places are filled on off-peak sailings, so we will be pressing the companies to improve their websites so passengers can find the best deal, even if it means leaving perhaps an hour or two earlier than planned.”
Cllr David Pugh, who attended the meeting on behalf of the Isle of Wight Council, added:
“As a Council we would support any moves to make differing fare structures more transparent, and believe that this would not only bring benefits to Islanders, but also to the ferry companies who would see increased usage as a result.
“We would encourage Island residents to bring forward any particular concerns that they may have on fare increases, along with examples of particular journey patterns, as Andrew suggests. Only then we will be able to assess whether a case can be put to the OFT for further investigation.”
Mr Turner asked for any evidence to be sent to him at 24 The Mall, Carisbrooke Road, Newport, Isle of Wight, PO30 1BW.