THE Chamber of Commerce has heavily criticised the lack of consultation with the business community before the government signed 20-year deal giving DFDS exclusive use to the Harbour’s vehicle ramps.
Although the organisation said that the Danish firm had “proved to be a professional ferry operator”, it criticised the selection process and reiterated the concern of its importing and exporting members over the new agreement’s impact on prices.
Making a submission to a Scrutiny panel review into the “concession agreement” that formalises the relationship between DFDS and the Island, the Chamber wrote: “A key concern remains the lack of any meaningful consultation with business leaders and freight logistics experts in Jersey prior to key decisions being taken.
“This absence of engagement meant that decisions were made without in depth understanding of the operational realities required to service existing retailers and the wider market.
“By contrast, Guernsey undertook consultation with retailers and business representative organisations as part of its tender process, allowing local operational knowledge to better inform both policy decisions and outcomes. That approach has been notably absent in Jersey.”
It adds: “Chamber members who are key importers and exporters of goods to the Island have expressed significant dissatisfaction with the outcomes of the concession process.
“Much of this dissatisfaction may have been alleviated had meaningful consultation with industry and Chamber occurred prior to, or during, the stages when the concession agreement was being discussed and negotiated.”
In its submission, the Chamber expresses concern over several elements of the new deal, including the level of DFDS’s ‘flat’ rate card for freight, the increased cost and complexity of having two Channel Island ferry operators, more food waste after cancellations and delays, and the lack of low-loading options due to “additional movement dues”.
In conclusion, the Chamber wrote: “This evidence demonstrates a clear link between the lack of meaningful consultation with industry during the ferry concession process and a series of policy and operational outcomes that have increased costs across the supply chain.
“Decisions taken without engagement with retailers, freight operators, and business representative bodies have resulted in higher freight charges, missed port costs, weaker service protections, and limited policy mitigation.
“The intention of the flat rate was to encourage competition within the freight market, while it is understood that this has created opportunity for some users, it appears that the given benefits are not being passed on and are more likely seen as a saving and retained as additional profit to the lower volume freight companies.
“The cumulative effect of these decisions is borne not by operators or government, but by consumers, particularly through higher food prices.”
