A MAJOR review of the terms agreed with DFDS in handing the ferry firm a 20-year operating contract is to be carried out.
The Economic and International Affairs Scrutiny Panel is looking to assess whether the contract will meet the operational, service and economic expectations of Islanders.
The decision by Jersey’s government to hand DFDS the 20-year contract has proved controversial after plans for a joint ferry tender process with Guernsey were scrapped after the Sarnian island awarded the contract to Brittany Ferries – previous operator Condor’s parent company.
And DFDS have had a difficult start of life in Jersey since taking over the Island’s routes in March this year.
The Danish operator has faced criticism for passenger delays, its winter timetable which axed the high-speed Poole sailings and, in particular, its flat-rate freight charges which were a condition of the contract set by Jersey’s government.
Several retailers have claimed that DFDS’s freight charges had increased their costs which would have to be passed on to customers, with Morrison’s alone telling the panel last month that it was facing a shortfall of up to £400,000.
In response to the criticism, Economic Development Minister Kirsten Morel agreed to publish the concession agreement which sets out the terms of the Danish ferry operator’s service for the next 20 years.
The Panel has now launched it review to evaluate the terms of that agreement and explore some of the issues raised. In particular, the panel has said it wants to analyse the flat-rate charging system as well as service levels, future investment in vessels, transport of pets and accessibility.
Panel chair Deputy Montfort Tadier said: ‘The ferry service is a vital lifeline for all of us whether for leisure or for getting goods into and off the Island.
“It is important, given the 20-year contract with DFDS, that we are assured the Island has the best deal, especially with regards to the implications of the flat-rate card.
“The panel has heard mixed feedback on this and wants to speak to all stakeholders in order to understand the pricing for end users, not just from DFDS but also from third-party freight operators.
“From the submissions the Panel has received, and from our recent hearing with retailers, it seems there are several concerns about how the current situation is impacting businesses, islanders and visitors alike. There has been a lot of focus on the tender process, but now it is essential that we ensure the concession agreement we have for the next 20 years, is fit for purpose.”
The Panel will be holding a number of public hearings and all stakeholders are asked to share their views on the economic impact they have seen since the service was introduced by emailing scrutiny@gov.je
The panel has confirmed it will present its findings and recommendations to the States Assembly before the end of the current political term.
