My Lords, I start by thanking the noble Lord, Lord Berkeley, for tabling this Motion to Regret. I agree with almost everything he said. Of course, there are contrasting models in operation for ferry services around the UK, from market-based models to very much more subsidised models. Those complaining about the Solent services often look to other services for comparison, but the problem is that no two islands are really the same. People are searching for a model which provides the guarantee of service that the isolation of many UK islands requires but also an incentive for efficiency.
To look at a comparison of the islands, let us take Lewis off the west coast of Scotland as an example. Lewis is 130 miles off the mainland. It is about 350 miles from Edinburgh and about 600 miles from London. In contrast, the Isle of Wight is only 14 miles from Portsmouth and there is a ferry service which takes only 45 minutes. There is no regular air service, but there does not need to be one because of the short distances. The Isles of Scilly, whose service I know relatively well, are 35 miles off the coast. There is a sea crossing which is only for those with strong nerves and a strong stomach. It takes nearly three hours on what is a very elderly boat. I was therefore delighted to hear that there is funding to help deal with this situation. In reality, people go backwards and forwards to the Isle of Wight on a daily basis as commuters. You are not a daily commuter on a regular basis on the “Scillonian”, but of course people do go back and forth in a day to take up medical appointments. The vast majority of medical services are provided on the mainland.
We need a nuanced approach. Even in good times, islanders in general across the UK complain about their connectivity. There is, and rightly so, an emphasis on the importance of lifeline services. The SI to which this Motion to Regret relates suspended some elements of the Competition Act in relation to the Solent ferry services. There are three companies involved—one hovercraft service and two ferry services—so there is an element of competition. However, of course, during the pandemic they were apparently down to 10% of
the normal passenger numbers and obviously it was not commercially viable. Yet it was obvious that essential services had to continue—freight as well as lifeline services—in terms of life-saving services.
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Can the Minister answer some specific questions about this £10 million? What was it given for, who was it given to, and what guarantees do the Government have that that money was well spent? Local MPs have complained about the cost of services and about their availability for health appointments, for example. Two Conservative MPs have complained about this, saying that because the two ferry services are owned by financial institutions, they are not operating in the interests of local people.
The noble Lord, Lord Berkeley, referred to the 2009 review, which apparently showed that prices were largely competitive in comparison with prices for similar distances and services in Europe. The pricing system that is offered is very similar to that used on the railways. I agree with the noble Lord that it is not regulated, but it is the same structure as we have on the railways. If you are a commuter going at the most popular times, you pay a lot more than if you are going in the middle of the day or late in the evening, for example, when services are not popular. The same structure is used on the airlines as well. Therefore, it is not an unusual structure in transport in our country.
There was a petition in 2018; the Government contrasted the Isle of Wight with Scotland and the Scottish islands, and made the point that there was a very much lower population density in Scotland and that there was no evidence of market failure.
Finally, in answer to recent questions from local MPs and politicians, the Government have sought to suggest that the local authority should shoulder responsibility for ensuring that services are reasonably priced. I will say two things to that. First, local authorities have no power to do that, and secondly, they do not have the money at the moment. The local ferry operators say that they are proud of the special prices they provide for many local people and for people travelling to health appointments. My response to them is that they probably need to do a great deal more if they are to continue in their situation, because there is talk of a new operator to be set up, run by a local consortium.
In the meantime, I understand why the Government are not pursuing this SI in the future—because they believe that the pandemic is over—but, by doing this, they have clearly avoided a solution to an issue which local politicians, and in particular local residents, are very concerned about.