Exclusive: Actions by NDP Govt will kill local ferries – Ira Smith
![The ferry operator was also particularly critical of a $0.10 fuel increase that had been added recently by the NDP Government [which had been removed by the VIP some time back in the 1990’s] which he said the present government refuses to remove. Photo: VINO/File](https://www.virginislandsnewsonline.com/cache/images/800x_f_Ferry_Dock.jpg)
Speaking exclusively with Virgin Islands News Online in reaction to a news article published on the same site on July 16, 2013, the businessman asserted, “If government does not assist the ferry [operators]… Native Son, Bobby [Road Town Fast Ferry]; Smith’s and Speedy’s [then] we would all die a natural death.”
Smith said, “I, along with fellow ferry operators, would pursue legal actions against the government, if they go ahead with the plan that is circulating.”
The proprietor contended that he confronted both the Minister for Communications and Works Hon Mark H. Vanterpool as well as Premier Dr the Hon. D. Orlando Smith about reports indicating that negotiations were underway for the government to source ferries from overseas and Premier Smith allegedly denied knowing anything of the plans while Hon. Vanterpool said he “did not wish to discuss the issue by telephone”. Smith said he has not heard back from the Minister since, despite many calls to his office.
Claude Skelton-Cline not truthful
Smith one of the first Virgin Islanders to start a ferry business has also challenged denials made by Director of the BVI Ports Authority, Mr Claude Skelton-Cline that he did not tell ferry operators that they would receive no subsidy from government coffers.
“He told me, Ira Smith, to my face that government would not subsidize the ferries,” he alleged.
Smith further alleged that Skelton-Cline stated it in a series of meetings with the last being when he, accompanied by his son, went to the Ports Authority to have a meeting with Skelton-Cline. It was in Skelton-Cline’s office that the last discussion is alleged to have taken place.
When asked why he felt that Premier Smith did not intervene to resolve the issues affecting ferry operators since the National Democratic Party (NDP) campaigned on helping local businesses, Smith drew reference to the fact that being first cousins the Premier did not want to put himself on the line as the public would view it as favouritism based on the family ties.
Mr Smith further drew reference to the Georgie Hill road being constructed and the ballooning cost of the project. It is his opinion that Government has extended themselves so much in other areas that it seems impossible for them to do anything to help the ferries.
Passenger complaints
Responding to issues arising from complaints made by passengers on local ferries as raised in the previous Virgin Islands News Online article, Smith said he had a conversation recently with the BVI Tourist Board Director Sharon Flax-Mars and said complaints were not usually forwarded to the ferry companies. Smith also indicated that the complaints were sometimes not as they seemed either.
High fuel cost
The ferry operator was also particularly critical of a $0.10 fuel increase that had been added recently by the NDP Government [which had been removed by the VIP some time back in the 1990’s] which he said the present government refuses to remove. Each of the companies reportedly spend in excess of $24,000.00 per week for fuel and the removal of the $0.10 would make a difference of $700.00 to $1,000,00 each week.
“Don’t you think somewhere with the cost of fuel, we need help from government?” he asked. “It doesn’t mean they must give us cash, take off some of these charges that they give us. They just put on ten cents on the fuel [cost] last year; we keep begging them to take it back off,” he continued.
Smith explained that though the figure may seem small, it was a tremendous burden when added up together and it was one of the additions that were made in the first budget in the current NDP administration.
“We are not asking for hand outs from Government just help us by taking away some of the taxes and burdens that are making it difficult for us to survive,” he told this news site.
Departure Tax Increase-He Opposes it and allegedly told Premier
Smith also discussed the potential effects of the recently legislated departure tax increase which is scheduled to take effect on August 1, 2013 and which he is opposed to. The ferry operator said he has conveyed this to the Minister of Finance, Dr. Smith.
He stated that Premier Smith had allegedly said the tax wouldn’t affect the ferry business but “we have begun seeing signs of this in a reduction in the numbers of travellers to St Thomas,” the ferry operator said.
“I think it has started to happen already,” he related, “you’ll see only one person going to St Thomas and bring back a lot of things, which means to me, that less persons are travelling to St Thomas from Tortola.”
He said the departure tax increase of $10.00 wasn’t the only increase as there is also an expected security tax of $5.00 that has also been added which takes the increases to $15.00.
“I don’t think [government] thought about [the effects on ferry operators] and I don’t think they’re deliberately doing us any harm; but whether deliberate or accidental it is doing us harm,” he declared.
He explained that in the past, it was easy to guarantee at least two full loads for ferry operators on certain holidays but this is not the case anymore given the reduction in travellers. “That’s where the money for the ferries comes from,” Smith said.
While explaining that he spent nearly $80,000 on upgrades recently for one of his boats, Smith bemoaned the fact that he may never be able to recoup the costs of the upgrades. “When, if ever, will I be able to recoup [by] going to St Thomas?” he asked. “With the normal overheads of maintaining the vessels where parts that we can’t do without but we have to replace on a regular basis cost thousands of dollars each, it’s almost an impossible game. Yet, we feel that we should keep [going to St Thomas] because the country needs it; but the people who are in control of the country don’t seem to care about what happens.”
When asked generally how much it costs to maintain the vessels, he stated, “We spend roughly $20,000.00 in spare parts and oil every month...And if we have to rebuild an engine, the parts can cost from $10,000.00 to well over $20,000.00 depending on the parts needed for the engine being rebuilt.”
Passenger Fares
When asked about the ticket cost, Mr. Smith stated, “While we, the operators, know that the fares are not covering the current expenses we also realize that with the present state of the economy it would be difficult for us to expect to increase them. What we would like to point out is that the current fare has been stagnant for a number of years and even with the past increases it has not increased to match the escalation of the cost to run the service.”
He added, “Our everyday costs have basically tripled and the number of travellers has slowly trickled down making it harder for us to survive each day. It is because of this, we have repeatedly asked the Government for help but it seems to be falling on deaf ears.”
Mr. Smith is still calling on the NDP government, a government that he has always supported and voted for, to not let the local ferry companies go out of business.
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45 Responses to “Exclusive: Actions by NDP Govt will kill local ferries – Ira Smith”
I agree with Ira This government will kill any thing local for expats and whites
It seems like u r in the government to know if the land is paid for I think if you wasn't hiding behind a name u wouldn't lie! That land is paid for up to date so u best check ur reciepts. As for the boat that is sunk I think u need to check the ownership on that for it is not part of our fleet. While u may be right with the condition of the area u need to get ur facts straight and maybe look into y after so many years it is only this year that the land that we reclaimed over on road reef that has been finally released to us. We would have gladly been over there out of ur hair but ask R. T. O'neal y it took so long from the 80's till now and then only giving us a small portion of the area we reclaimed but giving out the majority to others. Check Ur Facts!! I ain't hide behind no name!
If these ferry operators sat down and agreed on a BVI-STT ferry service we might all benefit. Stop the racing and mashing up your ferries.
If you can't compete and operate a successful ferry business then consider getting out of it Ira with your 50 year old third world ferries.
Now how about this $40. plus $15., $55.00. More people to travel to st. thomas.
I don't side with people receiving handouts from government but if they going to subsidize outsiders they could fully well help their OWN people...
If you would read carefully you would realise that all three (3) of the ferry services running to St. Thomas are suffering from this poor economy. If one company was to close up shop it would not be long before the others follow suit. If you did take the time to read it is also obvious that Mr. Smith is not asking for hand outs he is more asking for a reduction in some of the fees. It it obvious that some of you bloggers just don't read before you blog! And for your information the company with the best boats is also suffering ask Speedy how he is doing and he will tell you that the ferry service is a dwindling market!
actually economics he isn't begging the government for money. these companies started their businesses without the help of government. but government has a responsiblity to the people and business community included to keep the country "open for business"... government controls the cost of doing business with their taxes and fees
To make matters worse the ferry operators are unapologetic about their tardiness and seems to care less about the inconveniences caused to passengers, especially to our tourists who our little country depend on for revenue. Though disappointed I am happy to hear that you have already decided to return to our beautiful shores next year which is encouraging to say the least.
Thanks for choosing the BVI and in particular my home town Virgin Gorda.
a) avoid PR try to fly directly into St. Thomas
b) try to arrange for a flight that arrives before 3 (you should have been on an earlier flight from PR if you do go there.
c) In the event that you get to tortola after 6, there are two boats out of Beef Island every night going to Virgin Gorda. One at 8:00 - North Sound Express and one at 10:30 - Speedy
d) Try to travel on a Tuesday, Thursday or Saturday when Speedy has a direct trip to Virgin Gorda from St. Thomas
Sorry that you had those issues!
You suit ur screen name cause with a comment like that u r very dangerous person! If you read the whole article you would see that Ira complained about the fares being too low but it would be impossible to raise them and here you are talking about lowering them?? The Port tax has nothing to do with the ferry fares so why would you want them to deduct the port fees from the ticket to make it harder for the ferries to survive? Everyone needs to get together and petition to government to not raise the Port fees as I do agree that it is going to affect the amount of people travelling.
@ Are U Serious
If you check into most ferry services world wide as well as bus services, the majority of them are subsidized but I respect your opinion on you don't agree with handouts.