Solent Routes (Hansard, 8 March 1995)

§ 10. Mr. Barry Field
To ask the President of the Board of Trade who will be conducting the inquiry into the Solent routes following the Monopolies and Mergers Commission report; and when he expects to make an announcement.

§ The Parliamentary Under-Secretary of State for Corporate Affairs (Mr. Jonathan Evans)
The Director General of Fair Trading will review the cross-Solent ferry services market this year, as announced in 1992 on publication of the Monopolies and Mergers Commission report. I understand that the director general is to seek the opinions of interested parties shortly and will announce his findings in due course.

§ Mr. Field
Following the escape from Parkhurst prison, my hon. Friend and the nation now appreciate just how difficult it is to leave the Isle of Wight. Although the majority of my constituents appreciate the tremendous improvement that has taken place in the quality of service on the cross-Solent ferry routes, nevertheless anxieties remain about the high prices.
I should like my hon. Friend to be able to reassure me that the next, and second, inquiry will consider costs carefully, especially as the first inquiry concluded that the ferry routes to the Isle of Wight are the most expensive in the whole of the world, yet reached no conclusion.

§ Mr. Evans
My hon. Friend has always given special attention to that issue, and I recognise that. He must be aware that the MMC's report concluded three years ago that, although there was a monopoly position on the Isle of Wight in favour of Wightlink, it did not operate against the public interest in terms of profits or fares, and that that restricts the power of the President of the Board of Trade to take remedial action. We do not have legal power to act unless there is an adverse finding by the MMC.
In that context, the then Secretary of State announced that the position continued to require monitoring, and for that reason the position would be reviewed three years later. That review is to take place, and I am sure that the opinions outlined yet again by my hon. Friend will be expressed to the director general.