Premier’s Office to deal with Smith's Ferry Service freight charges—Hon Vincent O. Wheatley
District Nine Representative, Hon Vincent O. Wheatley, confirmed receiving complaints and said the matter has become a major source of distress for Anegada residents and businesses.
Speaking with Virgin Islands News Online (VINO), in a candid response to the situation, Hon Wheatley said, “I have discussed this matter with the Permanent Secretary in the Premier’s Office. I am really not sure what the solution is. I have also spoken to the operator’s representative, who feels justified in doing this. It makes an already challenging situation much worse for the people of Anegada who must travel to get stuff for their homes and businesses.”
Up to the Premier’s Office
While Smith’s Ferry receives a government subsidy, Hon Wheatley noted that the absence of a formal contract has created a regulatory vacuum that allows the operator to set freight charges without oversight. “My understanding is there is no formal contract in place at this time. I have been told by one operator that they do intend to request an increase in their subsidy. This is a very vexing issue that needs to be addressed right away, as it negatively impacts the people of Anegada.”
He told this publication, however, that the responsibility for resolving the issue lies with the Premier’s Office. “It’s up to the Premier’s Office to bring a new agreement. It’s been spoken of for years now, raised at all levels, including in the House of Assembly. Until this matter is resolved, I will be raising it constantly.”
Residents who contacted VINO expressed frustration over the rising freight charges and enquired whether the government has considered implementing price controls.
Hon Wheatley confirmed that he is aware of these concerns and had recently discussed the issue with the Permanent Secretary in the Premier's Office, Mrs Carolyn E. Stoutt-Igwe. “Though the ferry is subsidised, there is little that the Premier’s Office can do at this time, as there is no formal contract in place to control how and what should happen. Hopefully, this will be rectified soon. This is really overbearing right now,” he said.
The roots of the current crisis trace back to 2005 when the Federal Aviation Administration (FAA) issued a Notice of Emergency Suspension to Clair Aero, a locally-owned air carrier, revoking its operating certificate and licences. The loss of Clair Aero’s services severed the transportation link between Anegada and Tortola, forcing the Government to urgently contract Smith’s Ferry Service Ltd to provide interim inter-island transportation.
Contract Expired
The original contract with Smith’s Ferry, signed in September 2005, required the operator to run two round trips per day, three days per week, for an initial four-month period. Despite the expiration of this contract, Smith’s Ferry was allowed to continue under the same terms until a second contract was signed in August 2007 for an additional two years.
The contract stipulated that Smith’s Ferry would receive a daily operating guarantee of $3,000, amounting to $468,000 annually. Passenger fare collections were to be deducted from this guarantee, with the operator entitled to retain the first $500 collected each day. Over the initial two-year period, Treasury records show that the government paid out $481,757, 000 comprising the guarantee, the $500 daily collection retention grant, and fuel variation compensation.
When the second contract expired in 2009, the service was put to tender, and Road Town Fast Ferry was awarded a temporary contract with a flat annual payment of $456,000.
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22 Responses to “Premier’s Office to deal with Smith's Ferry Service freight charges—Hon Vincent O. Wheatley ”
If there is no contract with Smith Ferries, then stop paying the subsidy until they drop the freight rates. Have Acquatic Dreams or Ocean Dreams lined up to take over is Smiths does not immediately accept the new deal.
1. How do you give a subsidy of that amount to any company without a contract in place and therefore not be able to require them to meet certain criteria?
2. When a company - without a contract - does not cooperate, why does the responsible (I use that word lightly) ministry not reach out to the several other local operators to replace the uncooperative entity?
3. The article says Road Town Fast Ferry was awarded a temporary contract in 2009 - that's not Smith's Ferry. Could someone please clarify?
I see the COI has changed nothing.
We are talking about spending a $1,000,000,000 on an airport to get tourists that can already get here from the US get here but residents can't even go to their homes and back on a sister island.
VI political thinking and spending is pathetic, greedy, selfishness.
That’s $150.
Infant tickets are $15.00. Airplanes are free.
Each bag is $10.00. Including strollers.
They don’t let you take your small carry on. Airplanes do.
Round trip is $95.00 but if you change your return date (not the ferry company) it’s an additional $25.00.
Prices before Covid were $50 round trip. Covid is gone. Please fix this government of the Virgin Islands.