Oral Answers to Questions

Debate between Stephen Hammond and Andrew Turner

Thursday 10th July 2014 Commons Chamber

[Mr Andrew Turner (Isle of Wight) (Con)]

T6. Governments sometimes help with one Department but take away with another—on this occasion the non-ministerial Her Majesty’s Revenue and Customs. Will my hon. Friend make an assessment of the Isle of Wight’s connectivity and the impact on the Solent growth deal of HMRC removing the island’s ferry services from the tonnage tax regime? HMRC says it is not going to sea, which sounds a bit odd.

[Stephen Hammond]

My hon. Friend has lobbied me on a number of occasions about the island’s ferries. In this particular regard, qualification for the tonnage tax is a matter for HMRC. It is our understanding that since 1 July 2005 ferries have had to be operating at sea to qualify for tonnage tax. The cross-Solent ferries are regarded as operating within an estuary, as opposed to the sea, and therefore do not qualify, so there is no impact on the Solent growth deal in respect of these services.

Oral Answers to Questions

Debate between Stephen Hammond and Andrew Turner

Thursday 12th September 2013 Commons Chamber

[Mr Andrew Turner (Isle of Wight) (Con)]

11. What assessment he has made of the (a) cost and (b) reduction in service of ferries between the Isle of Wight and the English mainland; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Transport (Stephen Hammond)]

My hon. Friend will remember that I visited the Isle of Wight earlier this year, as did my right hon. Friend the Secretary of State. We are of course aware of the fares for the ferry services and of the level and frequency of service provided by the island’s three ferry operators. There has been no formal assessment. This is a competitive market, and it is for the ferry operators to decide the level of fares and services based on market conditions.

[Mr Turner]

The island’s ferries provide lifeline services and the repeated cuts damage our quality of life. Wightlink has enormous debts, which are paid for out of the island’s economy. I plead with my hon. Friends to enter into dialogue to consider how public service obligations can be introduced so that we have the certainty to build our economy and create more jobs.

[Stephen Hammond]

My hon. Friend will remember that I met him and a delegation from the island earlier in the year. I promised then to meet Wightlink, and have done so. There are more than 200 sailings to and from the island each day, so there is no apparent market failure. I hear my hon. Friend’s plea to put public service obligations in place and we will continue to keep them under review, but at the moment there is no case to do so.