Ferry operators blast alleged secret government deals!
![“Local Operators were never in the real sense of the word, offered [by] government to buy boats,” a source claimed](https://www.virginislandsnewsonline.com/cache/images/800x_s_Speedys.jpg)
No subsidy for local operators
In an exclusive interview with Virgin Islands News Online, it was disclosed that Director of the BVI Ports Authority Claude Skelton-Cline allegedly told the source that the government would not subsidise the ferry operators in any way and also allegedly stated that this measure had already been tried and had failed.
The source said he had no knowledge of government ever trying to subsidise local ferry companies and asked the companies when this had been attempted. The only answer he reportedly got was for the Anegada route, which is still ongoing and working. “I didn’t know that [Skelton-Cline] had the ability to speak for government, but obviously he did, because nothing has ever happened,” the source disclosed.
According to the well-placed source, Skelton-Cline allegedly asked how ferry operators would repay government if boats were ever purchased for them and they were allowed to run them.
“Whenever there was any talk about aid,” the source alleged, “[the Works Minister] never answered to them. But [Skelton-Cline] let them know, no way, they’re not going to get any aid."
It has been argued that subsidy was paid to American Eagle and Liat, which Government continuously denied but it is general knowledge that both the Airlines before mentioned were subsidized as well as the new airline, Seabourne is now allegedly being subsidized. He argued that aid had been provided to airline operators for years and continuously denied but this was eventually confirmed by Premier, Dr The Hon. D. Orlando Smith.
The source said that the closest that the operators might have come to receiving aid, is a suggestion that operators be given $65,000 each to cover operating costs for a six-month period followed by government’s consideration of their performance afterwards.
The source said that it was suggested by ferry operators that government check with St Thomas and St John authorities in the US Virgin Islands (USVI) and they would discover that the US Federal government have ordered two Catamarans from Midship Marine.
Government reportedly responded that the boats would be leased by operators and the US Federal government would be repaid. The source said the truth of the matter was that the lease agreement would see USVI operators making a repayment of $1 per year on the lease.
“Government stays far away from committing themselves to help in any meaningful way,” the source said.
Government’s alleged leasing arrangement
In a move that could prove even more disastrous for ferry operators, the source said information had been received that someone was solicited by government to lease two boats for them.
The source disclosed that Government Officials have purportedly contacted an agent seeking to lease two boats at costs hovering between $98,000 - $150,000 per month. The operator said the government proposal allegedly includes the purchase of fuel for the boats, payments and housing for the crew as well as payment to the tune of $8,000 per month for the person contracted to conduct the leasing arrangement. All of this would add up to roughly $2.5 Million per year. The question here, the source said, is why is Government trying to get itself involved in a private industry by trying to take it over instead of trying to help the local operators. According to the source, these same funds they are willing to spend over the period of a year could be given to the present operators to improve the existing service.
The source further alleged that Skelton-Cline approached authorities in St Thomas and was told in no uncertain terms that the time spots that the ferries operate on belonged to the ferry operators and these could not be given away.
He suspected that operators might be told that they would not be able work at local wharves since this was under the control of government. He argued that if this much money could be paid for a leasing arrangement, it was unclear why the requested aid by operators could not be met.
Government’s board proposal
“Local Operators were never in the real sense of the word, offered [by] government to buy boats,” the source claimed. He said government had made suggestions in several meetings that two or three catamarans were needed by each of the ferry companies. It was finally stated that Government would help the Operators to solicit funds but not to help in any other fashion.
Instead, the source claimed, a counter offer was made by government representatives that operators should give one boat each for government to operate through a board appointed by government.
The suggested board would be appointed by the Works Minister and would be comprised of five representatives with a sixth person being the Director of the Ports Authority. The source revealed that it was related that a Chairman would later be selected from amongst the group.
According to the source, when the Minister was allegedly asked earlier this year who would control the board when there were six persons appointedby government and only three ferry representatives his response was that the ferry operators would be in control. The source said there was a response by one ferry operator, “if we are outnumbered before we get to anything, then obviously we are not in control of this board.” The source said this discussion eventually died a natural death.
Ferry Schedule arrangements
The source said ferry operators had requested over a year ago for a ferry schedule to be implemented to prevent the overlapping that is currently in existence but this initiative had never materialised.
According to the source, discussions had been raised repeatedly about the need for a schedule and always ended in operators being told to provide one.
Eventually, “[Skelton-Cline] provided a crazy schedule that he came up with by himself without ever discussing it with anybody,” the source alleged. This schedule had vessels arriving and departing from different ports at various times without taking other ports into consideration as well as it would have resulted in the companies wasting fuel making empty trips or having to use more than one vessel to fulfil the schedule, the source explained.
The Ports Director allegedly told the operator if he only had three passengers to take to St Thomas at any time, then that that is what he must do.
When expressed to him that going to St Thomas was already a problem for the ferry operators and the suggestion of working with the Ports Director’s schedule essentially meant that two-three boats would have to be used every day. As the vessels were already running empty trips it was noted that this would only put a greater burden on the companies. When the question was put to Skelton-Cline if they would pay for the empty trips and the extra cost of additional vessels he allegedly frankly stated “No”.
Ticket agent scheme
Another scheme was reportedly proposed that government would be the ticketing agents for anyone wishing to go to St Thomas. Operators then reportedly asked how they would be paid under this scheme. “They said you [operators] would get your money within twenty-four hours.”
This proposal was proven to be impractical by the illustrating that if travellers were to trek on a Thursday or even Friday for instance, operators would not receive their “monies” until the next Monday or Tuesday after deposits had been made and then still would have to wait for cheques to clear which would be an additional 2-3 days. That in itself would cripple the ferry operators more as they would not have any capital readily available to work with to purchase fuel or parts in the event of a [mechanical] breakdown.
Our source said that this proposal also appeared to have died a natural death.
Ports Director denies allegations
When contacted Director of the BVI Ports Authority, Claude Skelton-Cline denied having discussions with the ferry operators about whether they would ever be subsidised. “I have not had any meetings with any ferry operators. All ferry operators’ meetings are with the Minister. I take my direction from the Minister,” Skelton-Cline said.
He did confirm having discussions with the operators sometime last year, but said those discussions only centred on scheduling issues which he explained were the only issues within his ambit.
“Any commercial matter, that’s a Ministry of Finance matter,” the Ports Director said. “I can’t speak to anything about subsidy, that’s beyond my powers.”
Mr Skelton-Cline said he did not receive any directives from the Minister at any point to speak about any commercial issues in relation to subsidy.
With regard to scheduling issues, he said, “we always have discussions on scheduling.”
Attempts made by this news site to reach Premier Smith and Minister for Communications and Works Hon. Mark H. Vanterpool were unsuccessful.
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25 Responses to “Ferry operators blast alleged secret government deals!”
I hope this is true so these greedy bastards can cut their $h1t out!! Government do what you got to do!!!
But did not contact any of the ferry operates. to get the facts.
I beg the Government to step in and correct this overdue situation !
WHAT A CALAMITY...THE NDP GOVERNMENT SAID THAT THEY WILL HELP POOR PEOPLE RIGHT...THINK AGAIN...POOR "cool"...THE HOUSE OF ASSEMBLY FIRED HIM AND THEN HIRED WAL*** RESTAURANT TO NOW CATER FOR THE HOA...WHAT A THING TO TELL THE KING...WHAT IS NEXXXXXT!!!
Hmm you need to get your facts straight! If you are calling any run funded by Government a subsidy then you need to understand that the Anegada run is subsidized by Government and that has been a FF run for the last 3 years so you need to correct yourself when you say that FF never was subsidized or have you forgotten the late run from Red Hook at night that FF ran? Again Subsidized!
Speedy was also subsidized for their trips to Anegada and when chartered paid twice the amount as the other ferries that were subsidized to run to Anegada.
Native Son is a US company, they should not be looking to a British Government for help so you are correct on that one.
Let me set the others straight on the St. John boats that run every day, they are subsidized also and the federal government saw that they are still suffering and pledged the funds to build them each a vessel to the tune of $3 million plus each which they are giving to them to run but those vessels would not be able to run foriegn until a certain amount of time (years I presume) has passed and they belong to them outright.
The airlines were subsidized. American Eagle was paid for every empty seat that it had so they basically had a full payload even if they left the island with 1 (ONE) passenger. And where are they today? They have gone bankrupt. Liat was also subsidized and before Seaborne started they were negotiating a subsidy.
The way I see it is if you can subsidize the airlines which to date are all foreign, the Government needs to
A) Look into helping a local airline to take over the PR and USVI routes and let it expand in the future to the other islands.
B) Help the ferry services in order that they could provide a better service.
C) Stop the banks from charging some of these high rates so that some of the less fortunate can get loans they can afford.
D) Stay out of trying to take over private industries!
What do you think is next?
They are after the ferries and word is they are also after the cruise ships. After that it would be the taxi's I guess! No business would be safe this place is seeming to be Communist! It is only in that type of Government that this sort of conduct is normal.