Ahead of a public inquiry into proposals to raise the cost of using the Sandbanks Ferry, Swanage Town Council has voted to work with Dorset Council to strengthen its objections to the plan and share legal representation.
At an extraordinary meeting of Swanage Town Council on Monday 9th September 2024, members of the public and councillors expressed their total opposition to the price increases proposed by the ferry company, and in a separate move Purbeck Transport Action Group published its objections and said that public ownership of the company should be considered.
The ferry links Studland to Sandbanks in Dorset, across the mouth of Poole Harbour, taking many residents to work or hospital appointments
Three day public inquiry
The operation of the ferry, which links Studland with Sandbanks in Dorset, is governed by a 1923 Act of Parliament and any changes to the tolls must be agreed by the UK Government’s secretary of state for transport.
It cannot operate as a regular business and set its prices at whatever rate it wishes.
Following the ferry company’s application to increase the ferry tolls, reintroduce a road toll, and reduce the bulk buy ticket discount which most favours local residents, a three day public inquiry is expected to be held from Tuesday 10th to Thursday 12th December 2024 at Studland village hall.
The ferry company’s office in Studland
“Ferry company faces significant and ongoing losses”
The ferry company says if it doesn’t get its way to increase tolls now, then it won’t have enough money in its ferry replacement reserve to buy a new ferry in 2034, as planned.
In the explanatory notes, accompanying the proposed revision of the tolls, the ferry company says:
“In light of inflation and the increase in passengers purchasing the heavily discounted bulk vehicle passes the ferry company faces significant and ongoing losses.
“In the financial year to 31st March 2023, the ferry company made a loss before taxation of £721,149 and a loss after taxation of £438,087.
“In the last financial year to 31st March 2024, the ferry company made a profit before taxation of £906,141 and a profit after taxation of £537,205. This profit being essentially cancelled by the losses in the previous year.”
Significant increases in tolls are proposed, especially for cyclists and foot passengers
Proposed toll increases
- Pedestrian (one way toll from Sandbanks): Current toll £1. Immediate increase to £1.75 followed by annual CPI inflation increase
- Pedestrian (one way from Shell Bay, Studland): No current toll charge and no proposed future toll
- Pedal or motorcycle (bikes): Current toll £1. Immediate increase to £1.75 followed by annual CPI inflation increase
- Passenger vehicle less than 16 persons (cars): Current toll £5.30. Immediate increase to £6.26 followed by annual CPI inflation increase
- Passenger vehicle more than 16 persons (coaches): Current toll £10.60. Immediate increase to £12.52 followed by annual CPI inflation increase
- Goods vehicle less than 3,500 kg (vans): Current toll £5.30. Immediate increase to £6.26 followed by annual CPI inflation increase
- Goods vehicle 3,501 kg to 20,000 kg (trucks): Current toll £10.60. Immediate increase to £12.52 followed by annual CPI inflation increase
The Swanage Chamber of Trade says that new increased tolls would be a barrier to local economic growth
Successive costly public inquiries over the years
Over the years, including 2004, 2006, 2009, 2014, there’s been an application by the ferry company to increase the tolls and each was authorised following a public inquiry. However in 2018, the application was dismissed by the inspector who concluded:
“I am not convinced that the proposed return on investment is reasonable or appropriate given that it is secured above the ferry replacement reserve and is maintained at an artificial level not directly linked to the company’s profits.
“The proposed tolls would significantly increase the fares payable for the crossing.”
In 2021, the ferry company was back to ask for more money and wanted tolls to be linked to inflation, however this time a different inspector agreed on increases but fixed them at 3 percent per year until 2031.
For the inquiry in 2021, Dorset Council, along with Bournemouth, Christchurch and Poole Council and Swanage Town Council jointly hired a barrister to represent them and were referred to in the inquiry as the consortium. This not only reduced the individual cost to each council but was able to present a united front.
The success of the joint legal approach is expected to be replicated again in 2024 following Swanage Town Council’s unanimous vote to support Dorset Council’s objections to the proposed increase in tolls. It also agreed to contribute towards the cost of the legal representation.
Studland Parish Council chose to represent itself in 2021 having had significant experience of these public inquiries over the years, however as negotiations continue behind the scenes, it may, along with other parishes, join with the other councils to oppose the ferry company.
A meeting about the ferry toll increases at Studland village hall on Wednesday 4th September 2024 was packed with standing room only
Community frustration
There is growing community frustration with the ferry company’s regular applications to ask for more money, especially as the 2021 inquiry set out a plan which was meant to last until 2034.
Each time a public inquiry is held, this costs the councils a significant amount of money in order to be legally represented.
There is also concern over the security of the money in the ferry company’s ferry replacement reserve. It is ring fenced in its accounts but not legally safeguarded, as pointed out by the inspector at the 2018 public inquiry.
The ferry company is owned by the Fairacres Group, 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 £9 million according to a balance sheet dated 31st March 2023.
Cyclists using the ferry face a 75 percent increase in the toll
“Significant economic, environmental and employment problems”
Purbeck Transport Action Group has now published its objections ahead of the public inquiry. The group is made up of representatives from parish and town councils, as well as all transport organisations including the Purbeck Community Rail Partnership, bus companies and cycling groups.
Along with its objections it goes as far to say that public ownership or a public/private partnership of the ferry operation should be considered, so that the public interest, particularly that of ferry users and local businesses and residents, is made the primary concern.
In its submission, the Purbeck Transport Action Group outlines the harm that the new increased tolls could create:
“If enacted, the proposals will present significant economic, environmental and employment problems for Purbeck residents and businesses, affecting the ability and affordability of transport to and from jobs in Studland.
“There are also potential effects on traffic flows in both directions, which have impacts on the environment and the economics of businesses.
“Therefore any increase would need to be fully justified. The financial case made in these documents is inadequate and can be disputed.”
The proposal is for the foot passenger toll to be unfrozen and raised from £1 to £1.75
Express your view
Concluding the Swanage Town Council meeting, councillor Bill Trite who represents Swanage on the town council and Dorset Council, urged everyone who wished to have their voice heard on the subject to make their own submissions. The deadline for individual objections is Thursday 12th September 2024. He said:
“It’s really important that we as Swanage Town Council object to the latest ferry company’s proposals but I’d also like to remind every councillor that they may also write to the public inquiry giving their own individual views.
“This also applies to the members of the public who have come along to this meeting and all local residents who wish to express their objections.”
Further information
- All the documents about the toll proposal are on the Sandbanks Ferry website
- Objections to the ferry company’s application must be submitted by Thursday 12th September 2024 via email to nationalcasework@dft.gov.uk or by letter to the Secretary of State, Department for Transport, Tyneside House, Skinnerburn Road, Newcastle Business Park, Newcastle upon Tyne, NE4 7AR, marked for the attention of Sandra Zamenzadeh (Casework manager, National Transport Casework Team).
