At a meeting to address community concerns over the proposed increase in the cost to use the ferry between Studland and Sandbanks in Dorset, the boss of Sandbanks Ferry Mike Kean says he’s “hopeful” the application will be successful.
The community drop-in session in the studio at The Mowlem in Swanage on Wednesday 11th December 2024, saw a good turn out of local residents who were able to question the chair of the Sandbanks Ferry company Mike Kean, the managing director Jason du Toit, and director Rosie Kean.
Chair of the Sandbanks Ferry Company Mike Kean (left) speaks with councillor Beryl Ezzard (right) who represents Wareham on Dorset Council. It’s forecast the Sandford Road will be more congested if the tolls go up on the alternative ferry route out of Purbeck
Increase the tolls and reduce the discount
The event was ahead of the public inquiry in January 2025, which will decide whether the ferry company will be allowed to increase the ferry tolls, reduce the bulk buy ticket discount which most favours local residents, and reintroduce a road toll.
As the ferry operates under an Act of Parliament, any changes like increasing the fares have to be approved by the UK Government’s secretary of state for transport.
In 2020, a planning inspector decided that the ferry company could increase vehicle tolls by around three percent a year until 2031. Alongside the rise, regular passengers who bulk bought tickets would get an increased discount.
So historically, buying books of 10 tickets attracted a 10 percent discount and books of 50 got a 15 percent discount but that was increased in 2020 to up to 28 percent and 32 percent respectively.
However in 2023, the ferry company wasn’t happy with the deal and made a new application to increase the tolls and reduce the discount on the bulk purchase of tickets.
A number of information boards were displayed around the studio at The Mowlem for the community drop-in event
“Inflation peaking at 14 percent”
Speaking to Swanage .News, Mike Kean said:
“I’m hopeful that the application will be approved as there’s a solid legal case and we meet and exceed the statutory test required.
“The reason we need to reapply is because we didn’t foresee inflation peaking at 14 percent, the rise in corporation tax and the increase in our costs of about £90,000 a year.
“We need to generate more income to go towards the ferry replacement fund in order to purchase a new ferry in 2034, as the current ferry will be 40 years old by then.”
According to the ferry company, there’s currently £4.5 million in the ferry replacement fund but it estimates it needs £18 million to fund a new ferry to be delivered in 2034.
Between 1995 and 2018, the ferry company paid out £12 million in dividends and placed £2.4 million into the ferry replacement fund.
Now it needs to ensure there’s enough money for the new ferry.
Mike Keen said:
“We chose to stop paying dividends and since 2018 no dividends have been paid to shareholders. If the new application is approved, the first dividend won’t be paid until 2033. That’s 15 years that investors won’t receive a return from the business.”
Managing director of the Sandbanks Ferry Company Jason du Toit (right) chats to Swanage residents
“We are a victim of the huge discount”
The ferry company is restricted by law from borrowing more than around £5 million so it can’t make up the shortfall from borrowing without a change to the Act of Parliament, which would be costly in itself.
Mike Keen added:
“The other reason we’ve made a new application is because at the last inquiry in 2020 the company agreed to introduce more favourable discounts for the bulk purchase of tickets.
“Before that was introduced about 10 percent of passengers were buying in bulk and about 90 percent were paying the full price of the toll at the toll booths – now it’s about 50 percent who are buying in bulk. We are a victim of the huge discount.
“At the time it was a means to an end and we got the tolls increased, but since the defection to bulk purchases it’s meant our revenue has gone down.
“Originally we suggested the discount for 10 tickets should be reduced from 28 percent to 15 per cent and the discount for 50 tickets should be reduced from 32 percent to 20 per cent.
“But following feedback we are now proposing a discount of 24 percent on multiples of 10 tickets and 28 percent on multiples of 50, and we’ll phase it in over four years for passengers to have more time to adapt to the change and cushion the burden.
“I do have sympathy for those who need to use the ferry and find the cost difficult, but we can’t make exceptions for individuals.”
Residents make their views known by filling out a feedback form
“We want to reconnect with the local community”
There’s been an extraordinarily large number of objections to the ferry company’s proposals. The public inquiry team say that they have registered the complaints of 633 objectors.
The ferry company application is also opposed by a consortium of Dorset Council, Bournemouth, Christchurch and Poole Council, Swanage Town Council, Studland Parish Council, Langton Matravers Parish Council, Worth Matravers Parish Council and Corfe Castle Parish Council.
Mike Kean said:
“I was surprised by the number of objections, we were expecting some but not that many from our valued customers – and we do value them.
“We want to reconnect with the local community and our customers. I think we lost touch during the pandemic and this event is part of the first step in achieving that.
“I’m proud of what we do. Despite the two outages in 2019 and 2022 due to catastrophic failures, which were just bad luck, during planned operations we provide a service 99.9 percent of the time. I’m pretty damn proud of that and it’s much better than buses and trains!”
The ferry company says no toll booths will be moved and no new toll booths built
“ANPR cameras on the current toll booths”
So what about the plan to reintroduce a toll to travel along Ferry Road in Studland? This is the approach road to the ferry and the area 25 feet either side of the road’s centre line is privately owned by the company. This also includes much of the verges.
Mike Kean said:
“The main reason to bring in the road toll is to generate further revenue to go into the ferry reserve fund. Anyone who has paid for the ferry, won’t have to also pay the road toll.
“We’ll put ANPR (automatic number plate recognition) cameras on the current toll booths to detect who has just come off the ferry, so they won’t have to pay twice.
“We’re still looking into the technical details but people should be able to pay for the road toll using an existing sandbanks ferry card or via an app.
“There will be a marshal who will traverse the road either by foot or on wheels, and photograph numberplates of vehicles that are stationary. There will be a 30 minute grace period and then the marshal will go down the road and if they haven’t paid, they will receive a penalty charge notice.
“People using the National Trust car park or going to the Shell Bay Restaurant won’t have to pay.
“We really do hope to raise money from this, otherwise we wouldn’t have been pushing for it but potentially, if the costs of setting this up and administering it mean we aren’t making money, it will be back to the drawing board!”
Questioned about any dispensation for anyone with a disability who could only access the Studland peninsula by vehicle, Mike Kean said:
“We’re not planning (to give a dispensation) for Blue Badge holders. We haven’t singled out any group – we can’t discriminate. There’s 30 minutes when they can drive up and down the road without paying. In many car parks Blue Badge holders still have to pay.”
Sandbanks Ferry contributes about a quarter of the Fairacres Group’s profits
“Projections for next year are looking phenomenal”
The ferry company is owned by the Fairacres Group Ltd, which also owns a hotel business called Review Hotels.
Following a number of unfortunate business decisions, exacerbated by the Covid pandemic and the closure of hospitality, Review Hotels was in debt by nearly £10 million according to a balance sheet dated 31st March 2024.
Mike Kean said:
“Apart from the ferry company, the rest of the business is strong and profitable. Other companies in the group like those in hospitality have been up and down, but the final financial projections for next year are looking phenomenal.
“The ferry company only contributes a small amount to the group’s overall profits and every business within the group needs to stand on its own feet.
“However if we get the ferry toll increase, we hope the group will be able to support the ferry if needed. It’s not just me who can make that decision as other shareholders who have legal responsibilities will have to agree.”
Another company was set up in 2021 called Fairacres Group (Holdings) Ltd and there was some suggestion that the ferry company was now owned by the new company. Mike Keen added:
“The ferry company is still owned by Fairacres Group Ltd and hasn’t moved ownership. We are a very simple group with only six limited companies. We’re very transparent and we don’t delay in filing our accounts.”
The group’s profits in the 2024 financial year exceeded £1.9 million, a quarter of which came from the ferry company in a non refit year.
Poole Harbour Commissioners building in Poole, Dorset
“Change of venue has created lots of aggravation”
While the issues over the new application have attracted many objectors, in a strange twist, the location of the subsequent public inquiry has caused even more of a furore.
It was to be held in Studland village hall but the ferry company says it was forced to change to the larger venue of the Poole Harbour Commissioners building in Poole.
The inquiry will now start at 10 am on Tuesday 21st January 2025 and is expected to last several days. An evening session will be held at 6.30 pm at the Springfield Country Hotel in Stoborough near Wareham on Wednesday 22nd January 2025.
Mike Kean said:
“The change of venue has created lots of aggravation, and while as the applicant the decision is left at our doorstep, we have had to meet the statutory criteria for public inquiry venues.
“We looked across Bournemouth, Poole and Swanage hotels, the RNLI HQ, The Tank Museum and churches and after a process of elimination, the only one that met the criteria of availability, size and accessibility was the Poole Harbour Commissioners building which can seat 372 people.
“We would have preferred the Studland village hall. There will also be an evening session at the Springfield Country Hotel in Stoborough near Wareham.
“On Tuesday 28th January the ferry company will run a bus from Swanage via Studland to the inquiry in Poole and back, free of charge for those wishing to speak.
“On each day of the inquiry, the ferry company will provide free, one way car travel from Sandbanks to Shell Bay for anyone who has attended the inquiry that day and can provide their used parking ticket for the Poole Harbour Commissioners car park.”
The application to the department of transport and the cost of the public inquiry to the ferry company is estimated to be more than £100,000 but Mike Kean says it is worth it:
“We have to have the ability to replace the ferry and keep going. Any business needs to make a profit – businesses need to attract investment and have sufficient levels of profit.
“Other chain ferries like the King Harry ferry in Cornwall and the Dartmouth ferry in Devon are privately owned and can charge what they want. And then there’s the state owned ferries like the Torpoint in Devon or the Cowes ferry on the Isle of Wight, which don’t make a profit and are subsidised.
“We are hammered on both fronts – we can’t charge what we want and we don’t get any state help – we are quite unique!”
Councillor Ben Wilson (right) who represents South East Purbeck on Dorset Council which includes Studland, speaks to Rosie Kean (centre facing)
“We have had to put up with it”
As well as local residents attending the community drop in event, there were a number of Swanage town councillors including Sarah Vile, Sarah Brookes and John Lejeune, along with Dorset Council councillors including Beryl Ezzard, Ben Wilson and Bill Trite.
Many of those who attended weren’t convinced with the ferry company’s claim that it needed the toll increase to generate additional revenue
Speaking after the event, councillor Bill Trite, who represents Swanage on both the town council and on Dorset Council said:
“It was agreed in 2020 that the ferry company could increase the toll by three percent a year for the next 10 years but they haven’t stuck with it. The agreement should have been respected.
“A lot of us – and other local businesses – have had to put up with a lot over the pandemic, with inflationary price increases and the rise in the cost of living. These have been unfair circumstances but we have had to put up with it. I hope the inspector bears this in mind.
“The choice of the venue in Poole is inappropriate – it may be fine for the applicant but not for those in Purbeck who stand to be most affected if the application is successful. It’s an important principle to always hold these meetings closest to those most affected.
“The Poole Harbour Commissioners building is not a neutral venue as many people from Swanage will find it expensive and difficult to attend. It’s like a FA cup final when one of the teams is allowed to choose where the match is played!”
QR code to give the ferry company feedback
Further information
- Documents about the toll proposals are on the Sandbanks Ferry website
- The free ferry bus will accommodate up to 50 people and will leave Swanage at 8 pm and Studland at 8.15 am. It will depart the inquiry venue, returning to Purbeck at around 5 pm.
- The bus is offered on a first come first served basis to those who are intending to speak at the inquiry and who contact the ferry company via the email community@sandbanksferry.co.uk to reserve a seat
