2026.03.09 Statement by the Chair of the Economic and International Affairs Panel regarding Ferry Service Review

STATEMENT TO BE MADE BY THE CHAIR OF ECONOMIC AND INTERNATIONAL AFFAIRS SCRUTINY PANEL

ON MONDAY 9th MARCH 2026

Ferry Service Concession Agreement Interim Report (S.R.6/2026)

I am grateful for the opportunity to speak about the findings of the Economic and International Affairs Scrutiny Panel's Interim Report presented last week, which set out the Panel's initial assessment of the Ferry Service and the Concession Agreement between government and the Ferry Operator.

The review was initiated following substantial public and commercial feedback on the impact of the new service. In response, the Panel explored how closely the service reflects the expectations set out in the Agreement and whether it addresses the needs of Islanders. The Panel also examined what steps the Minister for Sustainable Economic Development has taken in response to emerging issues.

The Panel gathered its evidence from public hearings, targeted stakeholder letters and public submissions.

The Panel also employed the service of an experienced adviser with extensive knowledge of the maritime industry to provide independent analysis of the Concession Agreement. His report helped informed many of our findings and recommendations and can be viewed in appendix (2) of the panel's report.

The evidence receivedfrom passengers, businesses and community groupsshows that while there have been some positive developments, significant issues remain across both passenger and freight services:

• Islanders reported longer journey times, reduced opportunities for day trips, frequent timetable changes, perception of increased fare pricing, inconsistent customer service, and ongoing barriers for those with additional needs or travelling with animals.

• The  continued  lack  of  interisland  vehicle  transport  is  also  having  clear  social  and economic impacts. Businesses commenting on the freight service raised concerns about the lack of meaningful engagement with users before key decisions were made.

• Cancellations, delays, rising costs and the new pricing structure of the flat-rate card have caused disruption, pricing increases, increased food waste and concerns about supply chain resilience.

• Stakeholders also highlighted uncertainty around vessel investment.

• Overall, while the  operator is meeting the minimum contractual requirements, those minimum standards do not match user expectations, underscoring the need for stronger oversight, clearer governance, and closer alignment between the Agreement and the needs of Islanders.

The Panel's report also draws Members' attention to several areas where further tightening of oversight and governance are needed to ensure the ferry service meets Islanders needs, with key recommendations centring around the following:

• Cost analysis of passenger fares to ensure that pricing caps are set at an appropriate and justifiable level

• Strengthening the governance of the Concession Agreement, particularly the scope and authority of the Monitoring Committee, which must be equipped to provide effective oversight throughout the contract term

• Development of solutions to address the lack of inter-island connectivity

• The need for an independent review of the flat-rate freight pricing structure to assess its impacts and if it is meeting its intended goals

• Ensuring early, structured engagement with freight users before any changes to schedules or operations are proposed, to minimise negative effects where possible.

The Panel recognises that efforts are being made both by the ferry operator as it continues to stabilise its services, and by the Minister for Sustainable Economic Development in monitoring performance  and  maintaining  oversight.  These  steps  are  welcome.  However,  the  Panel's recommendations are designed to ensure that this progress is not only maintained but strengthened; that it is supported by clearer governance and a consistent focus on the needs of Islanders and businesses.

Our intention is to ensure that the operation of this lifeline service evolves in a way that reflects the realities of living and working on an island community. Ultimately, the Panel's recommendations aim to secure a ferry service that is sustainable, affordable and reliable, and more aligned with the expectations of the people and businesses it serves.

The purpose of this Interim Report has been to set out the evidence needed to support informed government action. With key contractual milestones approaching, including the first-year KPI review and decisions on vessel investment, continued scrutiny is essential. It will be for the next Scrutiny Panel to take this work forward and ensure both government and the operator deliver meaningful progress.

I would like to thank all stakeholders and members of the public who took the time to write to of speak with the panel - including the Minister and the Route Director of DFDS in Jersey for their time and responses.

Finally a big thank you to my Panel members, Vice-Chair, Deputy Karen Wilson , Deputy Max Andrews and our recent addition Deputy Beatriz Porée ; and most of all our Scrutiny officer and her team for the excellent work they have done in the completion of this report, especially at such busy time of the parliamentary term.

Sir, I commend the report to the Assembly and welcome any questions that members may have.