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PUBLICATION of the government’s deal with DFDS will help passengers and businesses compare their own experiences with the ferry company’s legal obligations, a politician reviewing the agreement has said. Deputy Montfort Tadier thanked Economic Development Minister Kirsten Morel for publishing the ‘concession agreement’ this week. The Deputy, who chairs the International and Economic Affairs panel, added that he doubted it would have been released had his panel not pushed for its release. The agreement, which is redacted in places, contains a number of obligations that were not in the government’s previous arrangement with Condor, including granting DFDS exclusive access to the Elizabeth Harbour ramps, a commitment to introduce three new ships by the end of 2031, a new fee structure, including permitted maximum and average fares, and agreed staffing arrangements. Responding to the publication, Deputy Tadier said: “I think it is important that those with an interest in the ferry service – including passengers and especially the freight and business communities – can understand more about the new relationship with DFDS. “The panel will now take the time to review the redacted contract and its accompanying documents. “We also wish to compare the redacted version with the unredacted version to understand if what has been withheld from the public is reasonable. “Following this, the panel will determine the appropriate next steps in continuing its scrutiny of the matter.” Some retailers have been critical of the new ferry service, particularly the flat rate card for freight which was a stipulation of the agreement. Previously, Condor offered volume-based discounts which favoured large importers of produce, including food. Retailers argue that that kept prices down but the government say that it led to opaque deals that may have compromised safety as well as adversely impacting smaller-scale importers. Deputy Morel has argued that Jersey’s sea links should be a ‘toll bridge’ and not a gate through which entry can be negotiated. However, he has admitted that costs will go up as a consequence. He said this week: “We need to protect the ferry service, and if that means a slight increase in prices, I say that that is worth paying for.” This prompted one retailer to tell the JEP that the minister had “appeared to have changed his position by accepting that prices would go up”. He added: “In moving away from a system that discounted volume, we now have an indirect tax on food. “The bottom line is that the minister has accepted that there will be price increases, although this will now be mitigated by DFDS absorbing the per-unit charge. “However, we don’t know whether this will be just for this year or forever. “This is something for Deputy Tadier and his panel to look into.” The mitigation the retailer was referring to was a decision between the government and DFDS for the ferry operator not to pass on a port charge that it was previously invoicing freight customers. DFDS Jersey Route Director Chris Parker said in an email to customers, sent last week: “Following a joint review of the port charging framework, DFDS will limit the application of port dues to a per-tonne basis only and will not pass on the per-unit charges previously communicated. “In line with this clarification, DFDS will remove the per-unit charge from freight invoices, and any port dues already paid and now deemed not applicable as a result of this review will be held as a credit against customers’ accounts.” The JEP has asked the government for more details of this decision.
