Andrew Turner's request for the Office of Fair Trading to investigate Isle of Wight ferry services

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I am asking the Office of Fair Trading (OFT) to look in detail at the ferry services and either negotiate agreements with the ferry companies to provide a better deal for Islanders or pass the matter to the Competition Commission for a full market investigation on the cost of the ferry services and other matters.

I have made a number of suggestions for improvements.  For example substantially discounted fares for Island residents and special tariffs for those who need to visit mainland hospitals.  I also suggest a price freeze for three years (with no reduction in services) and full consultation with the Island tourism sector and Island businesses to see how the service can be improved to meet their needs.  You are welcome to add your suggestions.

I will be submitting a large file of evidence from many people to support this request – this will not be made public due to privacy issues.

I am grateful to everybody who has already provided me with useful information - all of it will be passed to the OFT in support of the submission.  If you have anything that you think would be helpful please do pass it on to me.   I would be particularly pleased to receive old price lists, tickets or receipts - anything that provides evidence of prices paid in previous years.

I am asking you to support my call for an investigation as lots of support will make it more likely that we will achieve a positive result.  This campaign is not political - it is for the good of the Island so I shall be seeking support from Islanders across the political spectrum and, of course, those with no political views at all.  Your family and friends who do not live on the Island but are affected by the cost of the ferry services are also very welcome to support the campaign. 

The reasons for this request 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 (almost 40% of turnover). 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 from 12 to 6 months for the use of Multilink tickets).
• 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