Office of Fair Trading investigation into Isle of Wight ferry services

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on 27th February I heard that the Office of Fair Trading (OFT) decided to launch a market survey into the Island's ferry services following my campaign asking them to take action.  The deadline has now closed and the OFT are considering the evidence submitted.

I am grateful to everybody who has already provided me with useful information - it has all been passed to the OFT in support of the submission.  I have passed the OFT two further submissions which cannot be made public because it used information which has been given to me on a confidential basis.

This campaign is not political - it is for the good of the Island and I have received support from Islanders across the political spectrum and, of course, those with no political views at all.  

The reasons I asked for an investigation are :

• The ferries operate an essential public service and they should not adversely affect the development of trade. The Secretary of State for Transport has confirmed that these matters should be raised with the OFT.
• The last proper investigation into the cross-Solent ferry market was in 1991 and all the reasons for that investigation are still valid.
• Due largely to high sale prices of Wightlink and Red Funnel over the years both companies are servicing very large debts.  This increases fares which penalises all users of this essential public service. The OFT should examine the ferry businesses to ensure the profit levels are fair.
• There have been recent changes in pricing policy that adversely affect Island residents (such as Wightlink’s reduction without consultation from 12 to 6 months for the use of Multilink tickets - which was later reversed).
• It is very difficult to find the most cost effective fare – there is much evidence of confusion from ticket offices, telephone services and the internet.
• It is widely believed that fares have risen much faster than inflation and this should be investigated.
• There is no access to berthing facilities on the Island for any new operator as they are effectively controlled by the existing companies. This prohibits competition. There is less competition now than when the market was last investigated in 1991.
• The market has never been investigated under current legislation (the Enterprise Act 2002) and using the OFT’s own guidance there should now be an investigation.
• The cross-Solent ferry market should be compared to other services in the EU and elsewhere.

Click here to read the full submission document. (PDF)
Appendix 1