§ Mr. Cartwrightasked the Secretary of State for Prices and Consumer Protection whether he will make a further statement about the progress being made towards implementation of the recommendations of the Monopolies Commission's report on cross-Channel car ferry services.
§ Mr. John FraserThe House will recall that on 18th December 1975 the then Minister of State made a statement about the progress made in implementing the recommendations made in the Monopolies Commission's report on cross-Chan-36W nel car ferry services. He then said that he was asking the Director General to continue negotiations with the United Kingdom operators.
One of the Commission's recommendations was that when any application for an increase was being considered the possibility of introducing improvements in the fare structure should be reviewed, in particular the possibility of introducing modifications, which, while having regard to social considerations, would give greater recognition to the differences in costs associated with differences in demand within the summer period.
The Director General has reached agreement with the operators that they will introduce a system of "weekend surcharges" in the peak summer season of 1977. The arrangements, which involve amendments to the three-tier tariff agreed a year ago, divide the year into a "summer season"—4th July to 4th September —and a "standard season"—the remainder of the year. During the "standard season" the operators will, as in 1976, be free to charge reduced rates at periods of low demand. During the "summer season" the operators will charge car rates which will not be less than 120 per cent. of the rates charged during that part of the standard season immediately preceding the "summer season".
Within the "summer season" there will be a "peak summer season"—15th July to 27th August—during which the rates charged for cars travelling on Fridays and Saturdays will be not less than 140 per cent. of the rates charged during that part of the standard season immediately preceding the "summer season". However, the weekend surcharges will not apply on Sundays or to motorists who both book and pay for their "peak weekend" journeys before 1st May 1977.
There are no agreed differentials on passenger fares, but the operators are free to make seasonal variations in these fares if they wish. The operators are simplifying the arrangements for charging for cars according to length. I have agreed to changes in the maximum rates and fares to be charged which reflect both the new structure I have described and changes in costs.
The new arrangements will apply to all reference services from Dover, Folkestone, Harwich and Newhaven except that 37W British Rail Hovercraft will be free if it wishes to operate a longer "summer season" on its Dover-Boulogne service. British Rail's Newhaven-Dieppe service will follow broadly the same pattern as its other sea ferry routes. Slightly different arrangements will apply to services from Southampton, where the "weekend surcharges" on car rates will apply to night services only on Fridays and Saturdays in the peak summer season. Daytime railings will be charged at the summer season rates.
The new arrangements will help ensure that those who travel at the peak times of the year will meet the extra costs of providing the capacity needed to convey them. Motorists will have incentives either to travel in June or September, that is to say before or after the main summer season, or to travel in the midweek or on Sundays during the peak summer season. This should in due course help to even out traffic flows and reduce the demand for new ferry capacity which might be under-used for much of the year. Families with schoolchildren who are obliged to travel at weekends in the peak summer season will have an opportunity to avoid the burden of weekend surcharges by travelling on Sundays, or by day on Saturdays from Southampton. Those with fixed period holidays will be able to avoid weekend surcharges if they book and pay in advance.
I consider that the new arrangements constitute a major further step towards implementation of the Monopolies Commission's report. I believe that further improvements may none the less be possible in later years, and I have asked the Director General to continue negotiations accordingly. However, I have indicated to the operators that I am willing to consider a reduction or even elimination of supervision in the light of experience gained in 1977.