§ Mr. Clemitsonasked the Secretary of State for Prices and Consumer Protection whether she will make a statement on the implementation of the Monopolies Commission's Report on cross-Channel car ferry services.
Mr. Alan WilliamsThe House will recall that on 11th April 1974 I announced that the Government accepted the conclusions and recommendations in the Monopolies Commission's report on cross-Channel car ferry services. I then said that I was asking the Director General of Fair Trading to discuss implementation of the Commission's recommendations with the United Kingdom operators.
The Director General has been devoting particular attention to improving the fare structure in accordance with the Commission's recommendation that this should be reviewed when application for any increase in fares was considered. The United Kingdom operators have agreed to introduce a three-tier seasonal tariff for cars with effect from 1st January 1976. There will be standard season rates from 1st April to 8th July and from 6th September to 31st December, a total of nearly 31 weeks. In the summer 786W season of just over eight weeks—9th July to 5th September—car rates will be approximately 20 per cent. above the standard season rates and in the 13-week winter season—1st January to 31st March—they will be approximately 20 per cent. below the standard season rates.
Lengthy discussions have also taken place between the United Kingdom operators and the DGFT concerning the rate and fare increases sought by them for 1976. Original estimates made by the United Kingdom operators were that, due to extremely sharp increases in their costs, rates for 1976 would need to rise overall by up to 39 per cent. and that increases of this magnitude would not lead to unreasonable profits being made. However, the operators have now proposed, and I have accepted that for 1976 the standard season rates should be the same as for the summer season of 1975—subject to one exception where they will be lower—and that the winter season rates should be the same as obtain now.
The increase in the 1976 summer season rates, as compared with rates in the corresponding period of 1975, will vary by amounts from £2 for a Mini to £5 for the largest car, on the routes most used. From 1st April 1976 there will also be an increase in fares for passengers accompanying cars, and surcharges will be introduced for Hovercraft travel between Dover and Boulogne.
I am asking the Director General to continue his discussions with the United Kingdom operators to ensure the effective implementation of the Commission's recommendations about the Harmonisation Conference and pooling arrangements, and also to obtain further improvements in the tariff.