Groundhog Day

Written for my other blog, Fullerswatch.

The golden weather after 18 months of improvements in services on the Waiheke ferry has come to an abrupt end when Explore Ferries decided to pull the plug on its sailings from 8 May. It cited lack of patronage which would not enable them to get through the Winter.
But this simple reason masks a multitude of systemic failures in the Auckland ferry scene, and if they are not remedied we will unlikely see any competing service ever again. This might suit Fullers' shareholders and cashflow very much, but it is an unsatisfactory state of affairs for passengers who can now only look forward to the resumption of the old service attitudes and upped fares. The public transport regulator, AT, is happy to look the other way because it cannot afford to offend Fullers, lest they would need to fund a ferry service themselves and that is the last thing they want to happen.

This blatant favoritism of AT for the incumbent was obvious from the start:
- Explore was forced to dock at Pier 3 - while Pier 2 and Pier 4 were upgraded in no time (for the exclusive use of Fullers).
- At all times AT inspectors were present at Pier 3 to see whether Explore staff made any mistakes. Any passenger reaction and complaints about the conditions Explore had to work under was immediately used as a stick to beat Explore with.
- The ticket booth was miles away from Pier 3 and at Matiatia better hidden than the toilets.
- The exempt service let Fullers double its sailings at short notice and even when they could not meet their own timetable, nothing was or could be done to hold them accountable.
- The extension of the supergold card loot was delayed for over a year, and when Explore offered passage for free in the meantime, nothing was done to make payment retroactive, i.e. make Fullers hand over part of the cash as they did not transport all pensioners as claimed between Auckland and Waiheke.
- Preventing Explore from running a bus service on Waiheke, or even specifying in the Waiheke Bus contract all buses on Waiheke should meet all services, resulting in a useless service to and from Explore sailings (Fullers causing chaos for its own bus services after introducing a half hour service was left unexamined or cared about).

It is now up to politicians at all levels to remedy this market failure and tackle this private monopoly head on with some urgency. The Local Board needs to lobby all players involved to ensure a satisfying outcome for islanders and visitors alike. City Councillors need to seriously look at the dysfunction, incompetence and obvious favouritism at Auckland Transport. National politicians need to abolish the 'exempt status' of Fullers and bring it under the umbrella of the PTOM system, so services can be regulated, in case it remains a monopoly, or tendered for, in case there are other companies interested in providing the service.

Civic duty

I've sent in my submission on the draft 2012 Auckland Region Public Transport Plan. Here it is:

SUBMISSION TO THE AUCKLAND REGIONAL PUBLIC TRANSPORT PLAN 2012

I wish to make this submission to the draft Auckland Regional Public Transport Plan as a resident of Waiheke Island who has had 12 years' experience of daily commuting to the city on Fullers Ferries, using the bus services on the mainland and on the island. As an Auckland ratepayer I contribute to the subsidies doled out to the various current public transport operators under the PTMA/PTOM scheme.
I have been a member of “Fullerswatch”, a public watchdog covering public transport and monopoly issues on the Hauraki Gulf and will use its past research and postings to illustrate issues in this submission. But overall this submission is my personal opinion.

ISSUE 1: WAIHEKE ISLAND'S CURRENT PUBLIC TRANSPORT PLIGHT

Waiheke Island is unique in Auckland's transport system in that it is served by two private monopoly providers, Fullers Ferries and Sea Link. Both companies are the lifelines for the island's well-being and economic development, including a valuable source of rates revenue for Auckland Council.

Waiheke is a nationally important tourist destination for Aucklanders, New Zealanders and many international visitors. Those two companies allow islanders to live locally and commute to town for work and play. Many Aucklanders come to Waiheke for day trips, weekends and summer holidays.
In all, about 1,000 commuters a day are kept off Auckland roads by being able to commute by ferry.

The island bus service, owned and operated by Fullers, is a feeder service for its ferries, but doesn't really function well as a convenient local public transport service for islanders. It gets subsidised by Auckland Transport, while the ferry route is a fully commercial, unsubsidised and "exempted service”.

Fullers Ferries (and Sea Link) isn't really a public transport company. It is a private transport provider mainly aimed at tourists. Its commuter service is incidental, although highly valuable in the off-season for Fullers’ cash flow. But it is not its priority service as vessels get taken out of commuter service when they are hired by private functions and groups.

Fullers’ monopoly on the Hauraki Gulf has been long established after it saw off its last competition late last century. The company has enjoyed this happy position for over a decade, unchallenged by any viable competition or regulatory intervention in fares and service delivery. It also enjoys priority berthing rights at the Downtown Ferry Terminal.

The outlook for the next ten years for the Waiheke ferry service is grim. The Draft Plan envisages a "doubling of passenger numbers" but, as far as I know, there are no plans by Fullers to invest in any new low emissions vessels, despite the "youngest" boat being 16 years old. I would love to know what the Fullers’ reaction is to the draft Plan’s "Ferry Standard for New Ferries used in Urban Passenger Service for modern, low emission ferries, and will ensure that vessels used on future contracts for ferry services conform with this standard". (My guess: a snigger)

The current fleet will still be ageing, suffer even more regular breakdowns, mishaps and fires than we have been experiencing lately. Vessel survey periods will become lengthier, causing smaller replacement service vessels to be continually overcrowded.
The only thing we can be certain of is that fares will rise, no matter what happens to economic conditions, fuel prices, labour and other operating costs.
We can look forward in the coming 10 years to monthly pass fares in the $600+ range, extrapolating from the 75% rise over the past 12 years (from $199 in 2000 to $355 in 2012).

ISSUE 2: "EXEMPTED SERVICES"

Nowhere in the Draft Plan is this concept rationalised. Why are these services exempted? Who decreed this and on which economic or social advantageous grounds? What purpose do they serve being outside the Auckland Transport public transport remit? Why will they remain exempt in the next 10 or 20 years from the integrated system envisaged by the Plan? Why do you think it is rational to keep their fares systems in place when the general desire is to have integrated fares and transport modes?

This exempted services concept needs to be abolished. There is no rational, nor economic reason to maintain balkanised public transport services across Auckland with separate and mutually incompatible fare structures.
London's Oyster and Hong Kong's Octopus cards, on which Hop mirrors itself, offer passengers travel across all transport modes: underground, buses, trams and ferries. There are no sane reasons why the Auckland Hop card should not offer this same interoperability across transport modes in Auckland: buses, trains, all ferries and Airport bus. Not having this integration has a baffling effect on the tourist arriving at Auckland Airport, who is faced with an Airport bus to downtown and to Manukau. One of which he can buy a Hop card for, enabling him to use it later during his visit on other buses and trains. If he wants to visit Waiheke, there is another separate fare to be paid to Fullers - and if he's lucky, his Hop card may be acceptable on the Waiheke Bus (since that is an AT subsidised service and thus not "exempt").

In this RPT Plan there is no mention of how the damning comments in international guides such as Lonely Planet on the poor state of PT in Auckland is going to be tackled. Certainly not by maintaining the exempt service status of the first two transport modes an international tourist comes face to face with after a long haul flight. Crucially, this same problem, of course, confronts Waiheke Islanders, Aucklanders and New Zealanders as well. Why set up a whole infrastructure of integrated fares and transport modes while at the same time exempting pretty important parts of it? Why keep on this confusion and inconvenience for seasoned and one-off travellers alike?

Exempt status means the companies can set fares, timetables and conditions at will.

This is unacceptable.

Sailings get delayed, cancelled or have to return to base due to technical failure on a regular basis with few apologies and little compensation for missed connections, flights or appointments. There are no commercial consequences for the company so it has no incentive to improve its service delivery.

Fullers has basically proven itself to be incapable of providing a quality service in terms of punctuality, reliability and passenger comfort, at a reasonable fare for the past 12 years, ever since the competition on the run was seen off in the last century. It acts as a typical monopolistic private provider only interested in its bottom line and adopting a cost-plus-plus mentality in its fare policy. Fare box recovery is already 102% on the Waiheke route: we pay a full unsubsidised fare plus wharf tax (i.e. fares could be halved and still meet your 50% target?).

This has resulted in Fullers commuter fares consistently being the highest in the world among commuter ferry operators, and fares over the past 12 years have risen higher than the CPI inflation figure - which includes business cost price factors like fuel and labour - would justify.
You only need to compare this price evolution to the commercial domestic aviation market: 10 years ago a flight from Auckland to Wellington cost the equivalent of a Fullers Waiheke monthly pass. Now airfares are the equivalent of one return ticket. There is never any chance of $7 Air New Zealand promotional fares - let alone current 1c JetStar offers on the Hauraki Gulf.

Auckland Transport should monitor service delivery for operators outside contracted services as well as all other PT providers.

ISSUE 3: PTOM

Fullers (and Sea Link) must be brought under this regime with the abolition of the "exempted service" category as soon as possible and certainly by the time all public transport in Auckland is regulated, planned and implemented under one umbrella, zone- and fares-wise.

I have no illusions that the ferry companies will fight – as a Flemish proverb has it “like the Devil in a bath tub of Holy Water” – this inclusion from ever happening. But that doesn’t mean you, as the public transport regulator, cannot do that. The Plan PTOM definition states: "Grow confidence that services are priced efficiently and that competitors have access to public transport markets".

This should mean that Auckland Transport should ensure a level playing field on Hauraki Gulf and adopt as its main task being a PT regulator and monopoly buster – something which has been sorely lacking in the past.

ISSUE 4: SUPER GOLDCARD

An overhaul of the Super Gold Card system is needed, especially by linking card IDs with public transport tickets issued to prevent opportunities for fraud by operating companies and protect the taxpayer.
The Super Gold Card must be replaced by Hop card allowing discounts/free travel in predetermined time periods. This would allow for proper surveillance and audit.

ISSUE 5: FARES AND ZONES INTEGRATION TO INCLUDE WAIHEKE ISLAND

The Waiheke ferry service should be included on equitable basis in any fare structures and zone geography that are proposed. Octopus card in Hong Kong includes the Airport service, underground, bus, trams and ferries. Hop card should mirror this integration. Fullers Waiheke must be brought into this system with stored value discounts, monthly passes and daily caps.
All ferry services need to be integrated in the zone system, not point to point (Point 4.3.c. (p36)).
Regards Figure 6-1 (fare zone boundaries): Waiheke should be 4 zones from the CBD, like Manurewa and Papakura are, as they are a similar distance away.
Pine Harbour ferry is same distance too from CBD and there is no rational reason not to have a similar fare structure for Waiheke ferry (in comparison, currently a 40-ride ticket is $355 on Pine Harbour and $469 on Fullers)

ISSUE 6: INFRASTRUCTURE

Abolish the wharf tax.
Waihekeans in effect pay, due to their sheer numbers using the wharves, for the investment and maintenance of all other wharves in the region, but we don't get to own them despite our investment. Bus users don't pay a separate "bus shelter tax", nor train passengers a "station tax", thus ferry passengers should not be charged a wharf tax.

END NOTES

Waiheke Islanders are a feisty and hardy lot, and a politically active and aware community. We care about our island, its future and its environment, social conditions and well-being for our diverse inhabitants, most of which are not well-off.
While we are not always happy campers within the Auckland City set up, we have a legitimate grievance against what we perceive as inaction and neglect of our transport links within AT’s regulatory framework. We want this remedied within the Draft Plan and the ability to travel by islanders and visitors alike to be seamless and on an equal footing with other areas in the city.

Downfall parodies

I had been thinking to take on the challenge to make a "Downfall/Untergang" parody but needed the right subject that would offer a rich amount of material to lampoon. And recently two issues came up that were right up my alley.

The first one concerns a controversial real estate development on Waiheke Island, approved by the local Island local authority board, that attracted vociferous protest from locals trying to prevent the building, brought in from town on a barge, from landing on the beach and affect the waterfront reserve land. A local topical issue, which may not mean much to you or enlighten you about the local sensitivities and references, but it has had great acclaim and the video has been shown during the movie intervals at the local Waiheke Island cinema.

The second one refers to the recent price hikes in fares on the Waiheke ferry service. Fullers Ferries is a private monopoly company owned by Souter Holdings (of Stagecoach fame). It is unbeholden to the local authority transport entity "Auckland Transport" and sets it timetables, fares and conditions at will without any recourse. Waiheke Island is completely dependent on its services for its existence, economically and socially.

Aerofloat re-branding launched

Fullers: We'll Take You There Out.

The Super Gold Card loot

The Campaign 4 Fair Ferry Fares obtained the official information figures on how much Fullers has raked in from the Government Super Gold Card subsidies.
A tidy sum of $756,000 went straight to Fullers' bottom line as it was achieved and received without any increase in costs for the company: hardly any extra staff or sailing had to be put on the Waiheke run (and it showed in the groaning boats over the summer).
The Herald reports:

Excursions to the island by an average of just over 200 pensioners a day accounted for almost a quarter of the Government's contribution to free off-peak travel on trains, buses and ferries throughout the Auckland region. [...] Campaign 4 Fair Ferry Fares spokeswoman Cathy Urquhart, who obtained the Government subsidy breakdown from the transport authority, says she is not begrudging senior citizens and war pensioners the freedom of her island.
"That's absolutely fine, seeing them all over the island," she said yesterday. "But at the same time we've got young people having to move off the island because they can't afford the fares. Fullers is pocketing a huge benefit from the Super Gold card scheme and the falling diesel prices, but haven't yet passed on those savings in a fair and transparent way."
Dr Urquhart's group campaigned fiercely against increases in ferry fares in October after Fullers blamed hefty fuel and maintenance cost rises. Although Fullers has since reduced one fare and also partly rescinded increases on other routes, the group has continued to press for more cuts as diesel prices have kept falling.
It issued a table yesterday claiming that the monthly Waiheke fare was now 23 per cent higher in terms of how much diesel it could buy than an average level since mid-2005.

Fullers responded with the usual bleating of other rising costs and the purchase of two inappropriate vessels from Tasmania which can't do the Waiheke run when the wind is blowing. But no response of the hypocrisy of using diesel hikes to increase fares and then denying a fare discount when diesel prices are at 2 year lows.
The drop in patronage that "has now been stemmed" was due to the gouging the company indulged in last year. Ferries were the only public transport mode that lost customers last year. It's not rocket science to find out why.
So now Fullers pockets are lined with our tax dollars, plus monopoly fares. Congratulations, Brian Souter, you bought a money printing press.

More rebel rabble rousing

From the C4FFF press release:

Waiheke Island commuters are about to find out just much food you can buy for $44. A protest organised by the Campaign for Fair Ferry Fares (C4FFF) will provide food for thought for the island's commuters on 1 October, when Fuller's new monthly ferry fare increases come into effect.
Members of the Campaign for Fair Ferry Fares will be at Matiatia Wharf, showing commuters and ferry users just how much will be coming out of their monthly food budget once they are purchasing tickets and monthly passes at the new increased rates.
Over the past six years, Waiheke commuters have faced dramatic price hikes of 52%. The latest increase of 12.7% has boosted the monthly commuters' pass from $300 to $344 and, for some Waiheke families, the household budget can't stretch any further.
C4FFF spokesperson Cathy Urquhart said, 'For some people on lower incomes, the choice is between fares or food. So we are putting $44 worth of food on the wharf to illustrate the impact for people and their families.'
C4FFF will be urging fellow commuters and community members to write to their politicians and request a reduction in fares.
'ARTA has powers under the new Public Transport Management Act to regulate the route and its affordability, but this will take a minimum of two years to be actioned. We can't wait that long to see the disastrous impact on families and local businesses as people leave the island. We need our politicians to act now'.
C4FFF held its first protest last month on September 1 after Fullers Ferries first announced the price hikes. A coffin full of petitions was carried onto the Fullers 8am sailing to protest against the death of diversity on the island.
The 'Food for Thought' protest will begin at Matiatia Wharf on Wednesday 1 October at 7am and continue until the 8am sailing.

Shirin Brown, one of the members involved in the campaign, will be on the Scrutiny programme (on Triangle Television 1 October 7.30pm, and Stratos Television on October 7 at 9.30pm)

From our island chief rebel rabble rouser:

Hear-ye! Hear-ye! Hear-ye!

A public meeting has been called to discuss the solutions to the unsustainable increase in ferry fares.
Chaired by John Stansfield, Executive Director, Cleanstream Ltd.
Mike Lee from the ARC, Judith Tizard MP (Associate Transport Minister), Denise Roche, Green candidate for Auckland Central, Nikki Kaye, National candidate from Auckland Central, Jan Scott from FUG, Ray Ericson from the Community Board will all be in attendance. Fullers and ARTA have also been invited.

Public meeting 21st September, 2pm Ostend Memorial Hall

We need to ensure that Ferry Fares are sustainable for all the community. An increase of 52% over 6 years is hurting families, older people and young people. If nothing is done, Waiheke will become a place where only wealthy people can live.
We need to exert pressure to get change. One glimmer of hope is the newly passed Public Transport Management Act which empowers ARTA to get information from Fullers about its commercial operations. Pressure from our community is the only thing that can ensure that affordability becomes a criteria for our ferry route.
To be effective we need a full meeting, so come along have your say.

Oh, and the Fair Fares campaign has a website now.

Ferry price comparisons

I got curious to find out whether there is anywhere else in the world that is in a similar situation as Waiheke Island, i.e. a good-sized commuter population that is dependent on a ferry service to get to its main workplace. I'm surprised it's rather difficult to find and to compare prices as many different options exist and passes cover more or fewer other transport modes too (perhaps you could make me some suggestions).

In New Zealand, there is the Wellington ferry to Eastbourne, which costs $245 a month. Of course, Eastbourne commuters have plenty of other transport options.

Overseas, there is the Seattle to Vashon Island route. A monthly pass (valid for 31 return rides in a calendar month) costs US$118 (NZ$166). Comparison with Waiheke is difficult: there is no weekend service to Vashon and only three sailings a day during the week. The pass also doesn't cover any other transport mode. The monthly pass to Fauntleroy (West Seattle), which has many more sailings, costs US$55 (NZ$78).
The San Diego to Coronado ferry is free to commuters.
Many ferry services are to islands which also have road access (and thus an alternative for commuters), i.e. the Staten Island Ferry in New York, which is free of charge. The Sydney ferry system is another. Yearly combined ferry/bus passes are between A$1,280 (NZ$1,562) and A$2,200 (NZ$2,684) depending on the zones travelled. Inner harbour ferries in Boston cost commuters US$198 (NZ$279) a month (Commuter Boat Pass also good for unlimited travel on Local Bus, Subway, Express Bus, Inner Harbor Ferry, and Zones 1-4 on Commuter Rail). None of the destinations are islands.
The Alameda-Oakland ferry in San Francisco charges US$170 (NZ$240) for 20 return trips within a calendar month
The Hong Kong Star ferry between Central and Tsim Sha Tsui costs HK$110 (NZ$20) a month. Of course there many other transport options in Hong Kong and the public transport has the wonderfully integrated Octopus Card system.
In Vancouver all-mode monthly passes (including SeaBus) cost between C$73 (NZ$99) and C$136 (NZ$184) depending on the number of zones.
In Scandinavia, Malmö has now become a suburbs of Copenhagen, thanks to the Øresund bridge/tunnel linking the two. Ferries are not really the preferred commuter option there.

Additions:
In Maine, Peaks Island Frequent Rider costs US$87 (NZ$123.50). Cliff Island costs US$127.50 (NZ$181).
Isle of Wight (Ryde to Portsmouth) fast ferry costs £150.80 (NZ$392)

So, in summary, the Auckland to Waiheke commuter ferry service is one of the most expensive stretch of water in the world. Regards the Isle of Wight fare, one should consider UK wages are way higher than in NZ, I would still posit that Waiheke actually is the most expensive fare.

Annus horribilis continues

Adding insult to injury, as one of my fellow commuters put it succinctly, Fullers ferries is having another season of engine breakdowns, shoddy service and a general Winter of discontent among its customers. It doesn't seem to be enough for them to announce extraordinary inflated price rises, but to reduce the service to a slow trickle akin to water torture.
Last night the hordes waiting for the 6.30pm had a sinking feeling all was not well, what with the Jet Raider already out of action for over a week, and now the Discoverer laid up with engine trouble too. It was left to that dinky toy, Quickcat II, to do a major commuter run and it chugged into port already 10 minutes late. The hardworking Fullers tannoy announcer (almost as hardworking as the Fullers ferry delay/cancellation text information disseminator) tried to assure us it would only be five minutes - but we all know what Fullers' definition of 5 minutes is: it's comparable to its claim the journey time to Waiheke is 35 minutes, but not many boats have actually achieved that claim without blowing a gasket.
So we all filed onto the Quickcat II (it always reminds me of live sheep shipments) to be squashed together and with knowledge that not everybody would be able to board. Packed to the rafters and all set to go, the captain informed us that we would not be leaving until St John's Ambulance staff had picked up a patient off the boat, who had been lying in sick bay when everybody got on. And the ambulance wasn't turning up soon.
Meanwhile the Superflyte was arriving back from Waiheke - as if it was lapping the Quickcat II in a cycle race. Now the captain informed us that Superflyte would be leaving at 7.15pm and would make it to Waiheke far faster than his toy boat could. So the hordes disembarked to change boats, filing past the mortified patient again, who I hope didn't think it was his fault he inconvenienced those 200 people.
So my commuting time last night from work to home took three hours. No apology from Fullers on Superflyte, not even a discounted drink on board. Surely Fullers is an odds-on favourite for worst customer service company in New Zealand.

After a flurry of press activity on and off-island (with a promise of article in the next Herald on Sunday to come), the rock dwellers are now looking at what more direct action to take when the fare hikes bite come Monday. We've been asked to wear black to mourn the death of diversity on Waiheke by all that economic cleansing, and a symbolic coffin will be carried.

I've added my $44 worth:
- Boycott the ferry cafes longterm. They've pocketed your $44 drinks budget already in the monthly pass price rise
- Ask the ARC/ARTA to cancel the alcohol purchase restrictions and replace their on-board licences with BYO licences. If you can bring your coffee on board, why not your own beer?
- Ask the Commerce Commission to launch an inquiry into the monopolistic and anti-competitive practices by Fullers/Stagecoach/Infratil, looking at the barriers for a competitive service on the Waiheke ferry service, and the dereliction of duty by ARTA/ARC when they allowed Fullers to buy Pacific Ferries.
- Ask the ARC/ARTA to call for tenders for a competitive service, including integrated ticketing on buses to prevent level field distortions
- Ask the ARC/ARTNL/ACC to refund the $20 a month wharf charge to passengers, which is now being pocketed by Fullers. No wharf charges should be imposed especially as third world conditions on Pier 2 persist. Wharves should be funded from general infrastructure investment (as trains stations and bus stops are), not from a departure tax. (And since Waiheke passengers paid for all the Auckland region wharves, can we now assume proper ownership of them too, so we can set our own charges for use)

UPDATE: Fullers are now allowing pass holders to purchase the September pass at the August price.
UPDATE: Popular protest at the ferry terminals over the price rises previewed. More background news article.

An extra turn of the screw

Fullers have finally formulated the way they are going to increase patronage, encourage tourism to Waiheke Island and generally care for the economic well-being of the island: they're putting the fares up by three times the current inflation rate.
A monthly pass will now cost $344 (up from $300, or 15%). A simple fun day out for your family and kids will now cost a small fortune and it'll be cheaper and more convenient to throw them all in the car and drive to Raglan or Ruakaka instead.

The "justification" the company gives is the usual baloney of increased operating and fuel costs (needless to say fares never come down when oil prices fall).
So the economic cleansing of the island continues apace: higher ferry fares will make people look at relocating off-island closer to work, if they have to commute; make it more costly to "import" workers who need to reverse commute to Waiheke (accommodation on the island is hardly affordable for low paid service workers anyway) so provision of services will become more expensive on Waiheke; and it will encourage people on fixed incomes, such as pensioners, to cash up and move out, which is also encouraged by relentless property tax increases imposed by a city council bent on keeping its income stream safe rather than focusing on how much more they rake off the island than spend there in services.

The Fullers-friendly owners of two local newspapers (Marketplace and Waiheke Week) faithfully reprinted the Fullers press release with little comment. Perhaps the deadlines were cleverly observed by the Fullers PR people. But it didn't prevent Waiheke Week (you can always rely on Merv to take the hard-done-by-capitalist company corner against the tree-hugging, rabble-rousing islanders) from editorialising that Fullers has no responsibilities towards Waiheke's economic or social well-being, and new island developments such as Ridgeview and Isola Estate will bring in extra passengers of a kind that never need to look at their black American Express card account, let alone a ferry fare ticket.

You can't blame Fullers for loyally carrying out what any monopoly business would do if it was it its place: squeeze the customer pips til they squeak. Infratil shareholders demand their dividend for buying up the business, and there is no regulator standing in the way of charging the highest fares and delivering the lowest service possible.
So there's the rub: the Auckland Regional Council and its toothless transport regulator have no say in whatever gouging a company like Fullers can engage in, simply because Fuller refuses to accept a subsidy for the Waiheke run as it would come with financial and regulation strings attached. Now it has no minimum service requirements; it can cancel sailings when it wants; organise schedules as it pleases; charge fares it can get away with and employ boats of a dubious quality on its runs. In short, it wants us to pay a first class fare for a cattle class service.

Coincidentally, BBC Hardtalk interviewed Ryanair boss Michael O'Leary last night, saying his business model to attract more customers is to keep on slashing prices and make costs as transparent as possible for passengers. You can now fly "anywhere" in Europe for £10 on his airline and promised not to impose fuel charges on his customers.
Here in New Zealand we have also signs of market forces working in favour of customers in the airline and bus travel industries: Pacific Blue and The Naked Bus offer enticing fares to places all over New Zealand at prices that wouldn't be possible under monopoly conditions. So basically all we need is a "Naked Ferry" company to come in to put a rocket under the Jet Raider and stick it up Fullers where the sun don't shine.

What is now needed is an official inquiry by the Auckland Regional Council into why there is no effective competition possible on the Hauraki Gulf and the ways to remedy this market failure. One clue is the integrated ticketing arrangement between Fullers Ferries, the Waiheke Bus Company and Stagecoach Bus, which allows seamless transfers for commuters (only those with monthly passes) between transport modes. Any new company coming in can't offer this considerable advantage and this has to change by region-wide integrated ticketing between bus, train and ferries with a capped price on monthly usage.
So come on, ARC Chairman Mike Lee, where are your market credentials and your monopoly busting skills when we need them?

UPDATE 1: This morning (18 Aug) Fullers warned passengers on the morning commuter boats that a smaller vessel would be in service due to a Jet Raider "technical failure". It may lead to passengers being denied boarding the 8am sailing. So I took the 7.20am which was more packed than usual. It is clear that Fullers really isn't up to its task of transporting passengers comfortably, at a reaonable price and on time.
UDPATE 2: A version of this blog entry was sent to the NZ Herald as a letter to the editor (which they don't put online) and my fellow commuters shouted that it was splashed all over the page as a headline. Which made me blush, of course. But I hope it will shame Fullers into pulling their socks up and reconsider this price hike as a PR disaster.
UPDATE 3: I mailed this blog entry to all Auckland councillors on the Auckland Regional Council and Chairman Mike Lee got back to me:

"I have raised this issue with ARTA in terms of what we can do and will respond in more detail as soon as possible.
I completely share your concerns especially given the news that some very questionable arrangement has enabled Fullers to pocket the public's wharf tax component of the ticket. I have raised these concerns in the media to put the spotlight on Fullers."

Fullers ferry service

Time to fire off another letter to Fullers for their abominable ferry service:

A sign on the Jet Raider said that during the survey period for Quickcat my Waiheke service would be provided by Jet Raider. A similar sign said the same thing when Surperflyte is on survey. Why do I cop the Jet Raider for both surveys? Why can't the 7.20am ex Matiatia and 5.30pm ex Auckland people get the unsurpassed Jet Raider service for a change? What have I done wrong to deserve these 6 weeks of choice between diesel fumes upstairs and methane fumes downstairs every year?

UPDATE: This is what I got back from Fullers:

Thank you for your recent e mail enquiring about vessel allocations on our Waiheke services.
As you are probably aware, Jetraider is a back up vessel to both Superflyte and Quickcat on Waiheke services.
The 7.20am ex Matiatia and 5.30pm ex Auckland are our busiest services and we will reschedule vessels to provide the maximum space and comfort to the majority of passengers wherever possible, which will mean changes to the allocation of vessels from time to time.
Your comments concerning diesel fumes and methane fumes on the Jetraider are noted and acknowledged and while we cannot remedy the outside smell of diesel fumes completely, we have had positive feedback on the improvement to the odour within the vessel since it has returned from it’s own survey. I will ensure our maintenance team investigate further your feedback on methane fumes within the cabin.

So the answer is: Yup, another six weeks of Jet Raider for you, matey.

And while we're at it...

Again this week a major Fullers ferry has been taken out of service for some unknown reason: passengers don't need to know why or how long, we just need to keep stumping up, keep our mouths shut and be grateful there is a ferry service at all, what with Infratil being kept busy with chasing Auckland Airport directorships.

So we now have endure rides on that crowd favourite, the Vomit Comet, sorry, Jet Raider. Not that it would matter much if only they could get rid of the diesel fumes above and the toilet stink below the waterline. But the constant lateness of the damn thing is what riles most passengers.
Fullers has been posting notices around patronizingly warning passengers that their ferry won't wait for them at departure. Unfortunately there is no same guarantee offered it will ever arrive on scheduled time and the Jet Raider is always 15 to 25 minutes late.
In the UK, public transport operators get fined or their licence withdrawn if their services are habitually late. Why can't we have a similar system here? It would certainly them where it hurts and make haste of regular maintenance and upgrades.

Cross-posted from Maxx.

Air passengers: 1 - ferry passengers: nil

News from a public transport system that works:

"Qantas intended spending $10 million on introducing its Cityflyer brand, which now operates between the six main Australian centres, to New Zealand. That would include:
* A $3 million upgrade of domestic club lounges in Auckland, Wellington and Christchurch.
* Refurbishing aircraft cabins.
* Self-serve check-in kiosks at airports.
* An enhanced free food service and morning newspapers.
* A free bar service from 4pm on weekdays."

While I read that, sitting on a wind and rain-swept Auckland ferry Pier 2, I can't but marvel with envy at how the free airline market caters for its passengers. Imagine what ferry travel would be like if there were Qantas ferries competing with Infratil for customers. We'd be pampered with Koru club style waiting facilities instead of wino hangouts; have refurbished ferries that don't stink of diesel and freshly pumped out sewage; ferries that might actually arrive on time instead of patronizing warnings that ferries will not wait for you; and all for prices that can go down instead of always up.
(I'm only using the ferry as an analogy, the same is of course true for bus and train services)

Come on, Qantas/Pacific Blue/AirNZ, branch out into our transport mode and give a heave to bad and expensive service.

Why is the ARTA negligent in its job for it guarantees the present monopoly gouging to continue? And how do we get rid of it?

My point is that the lack of competition is the direct cause of bad and overpriced service on ferries. 1,000 commuting passengers a day is a large market - how many plane routes or bus lines carry that many people twice a day in New Zealand?
Virgin runs planes and trains in the UK, so multiple transport modes can be run by one company (Infratil runs buses, ferries and airports!) - hell, they could even offer "frequent flyer points" applicable to all their transport modes.

Booking seats on ferries in advance would be quite handy and those advance sales are attractive for traveler and company alike, as it does for planes and the Naked Bus Co. It would force Fullers to actually deliver a reliable and attractive service instead of the guaranteed monopoly they enjoy now.
Imagine if you could book your daily commute bus seat: no more standing room only and the driver knows where to pick up his booked passengers. Guaranteed filled seats and regular income - perhaps even without a public subsidy. Everybody would be better off with some lateral thinking and free market innovation.

There would be nothing wrong with cut price peak services and extra charges for extra services like a Koru Club or free drinks. It would offer passengers choice. Now the only choice we have is a stinking Jet Raider at first class fares.

Stranded on an island again?

Another party weekend is upon us on Waiheke and Fullers have been putting up posters on the ferry "advising" party goers to return on the 8.15pm and 10.15pm ferries. The only proper response is a Tui ad.
But it shouldn't be rocket science, really. Why not run an all-night boat, say, every two hours, so party goers can relax and enjoy themselves in the knowledge they can get back home at some stage? Basic good customer service and what a ferry service should be there for, I would have thought.
Let's hope the Red Cross is ready this time with blankets and hot drinks for the stranded.

Fullers prepares to trial smart card ticketing

One of our island newspapers reported:

Fullers is getting ready to start trials of a new smart card ticketing system that may see passengers pre-paying fares and receiving special offers at the click of a button.
Fullers chief executive officer Doug Hudson announced plans for the card to members of the Ferry Users Group (FUG) at a meeting on Friday, last week, and discussed using their help with trials in May.
The system will allow a much more flexible charging structure and provide possibilities not currently available, such as variations in fare structure on different sailings, special discounts for regular ferry users, and online payments for tickets.
Hudson said Stagecoach had already been trialling the card on its bus services in Wellington but the new system would be the first of its kind in Auckland and only the second to be trialled nationwide.
The new system would involve staff using portable “swipe” machines for the cards, which would enable fares to be collected and might also be used for purchasing drinks and food on board.
He said a two-month trial period would be needed to collect data on monthly and 40-trip tickets and to find out how the system would work best for the company and its passengers.
“The trial would last for two to three months but it will take another three or four months after that for us to scope the project.
“We won’t know what the options are until we find out what the customers want and their usage patterns. At the moment, we’re kind of second guessing,” he added.

I think that's not a bad idea per se. It should also be expanded priority boarding, free refreshments and a Koru Club for cardholders. After all, if you're spending $3,600 a year on a transport company, you would expect to be treated as a first class customer, no?

Stranded on an island (update 2)

The plot thickens (via TV3):

"It has emerged the skipper of a ferry that last weekend left over a hundred passengers stranded on Waiheke Island, had refused to return for them.
The passengers couldn't all fit onto Fullers' last sailing.
The company says it's looking into why the skipper ignored a manager's request for him to make another trip.
And he says Fullers is making sure visitors to the Island's annual food and wine festival today are well catered for."

The gossip I heard on the ferry home last night was that some of the crew on the last vessel that night refused to return to Waiheke to pick up the rest of the passengers because in a previous instance last year they were not paid by Fullers for the overtime they put in then. So, if true (if Fullers management reads this, please feel free to clarify the issue), the complete fault lies with Fullers management, and not with the crew in question. Nobody is obliged to work for free, surely.
And now instead of fixing Fullers problems, such as running all night boats during summer weekends when a lot is happening on Waiheke, Fullers' owner Infratil resorts to a more effective weapon against its customers: blackmail:

"Listed infrastructure investor Infratil could exit its $250 million bus and ferry services if radical transport proposals are pursued by local government.
Infratil director Tim Brown said the proposals would ultimately see the country's bus and ferry networks run by bureaucrats who would collect the fares and pay private operators a fee to provide the service.
They would also have the right to buy the business if it did not meet local authority targets."

Stranded on an island (update 1)

The Herald ran an editorial on the issue:

"This is not the normal culture of a business that runs a public service; it is not even the culture of state-owned service providers these days. Fullers' behaviour last Saturday night was a throw-back to the days when so-called public servants would close the counter on a queue of customers if the clock struck closing time."

Indeed, and even writing letters to Fullers results in patronising and nonsensical replies, but which you're not allowed to make public!

Stranded on an island

It's not often Waiheke Island makes the front page of the largest newspaper in New Zealand two days in a row. The last time was when the foot & mouth hoax hit.
But this weekend it was all fun and games, what with several - newspaper reports say 120, my fellow ferry commuters this morning said there were only about 20 - Fullers ferry ticket holders left stranded on the island side after a good night out at various functions, parties and weddings. The ferry company neglected to provide sufficient capacity to take back all passengers, to whom they happily sold tickets earlier in the day. Worse, Fullers didn't even send over another boat to pick up the castaways, as they were wont to do in earlier (more customer-friendly) times. Nope, they raked in their ticket cash and the ferry management said:

"When most of the people choose to come back on the last sailing it makes it a little difficult."

Well, bugger me, Fullers, I know you like that, but isn't providing passenger services what you are actually in business for?
Now a few people face charges for "breaking into" the wharf building, because they were cold and hungry during their 8 hour wait overnight. Well, duh! Our famous island hospitality has been severely dented by this incident. At least the wharf building should have provided shelter - isn't that what it was built for? Every ticket sold by the ferry company includes a "wharf tax" so technically speaking they didn't break in but gained access to what they had paid for.
On the second day after the incident, Auckland Regional Council leader Mike Lee waded into the issue calling the ferry company excuses "nonsense". Pity the ARC has little power over Fullers because they run the Waiheke service as a pure monopoly without local body subsidies, which means they are un-beholden to any conditions on service and quality delivery, timetabling and fare structures. A pure capitalist text book case of bugger the customer for all he's worth.
Despite all this fun and nonsense, there is really a serious issue involved. Our island is basically dependent on its 1,000 daily commuters and the hordes of tourists who visit irregularly. All have to use Fullers Ferries who happily gouge whatever dollars they can get out of us and you (you can come on another ferry service from a suburban part of town but this is impractical). And if this suddenly becomes uneconomic our whole island economy will be far more affected than any foot and mouth disease can throw at us.

Fullers woes

With fuel prices locally at almost year lows due to a combination of lower world market prices and a higher New Zealand dollar against the greenback, private car users have been reaping the benefit of lower prices at the pump. $1.47 a litre is well down from $1.76 only weeks or months ago. So everybody has been climbing into their cars again, since public transport companies have been steadfastly refusing to lower their fares, as you would expect since they earlier raised prices due to fuel cost increases.
I wrote to that effect to the local island newspaper, which published my letter as the leading entry on the letters page - thank you very much, Simon - and sent a copy to Fullers Ferries for a reaction:

Sir,
Now that the diesel price is back where it was 12 months ago, can we expect a commensurate drop in the ferry fare prices in time for October (hiked because of fuel price increases, according to your literature at the time)?
Regards,

It took Acting Operations Manager Michael Fitchett six days to reply. And unfortunately I can't tell you what he wrote back, due to Fullers communications policy "to freely respond to questions in a confidential manner with customers".
That's a pity. But in short the reply was that the diesel price reduction has not been that dramatic it would impact on fares and they didn't know where it would go in the future (and hence, I presume, it's better to hedge your bets on your side of the balance sheet than on the side of your customer).
So in all, public transport prices only go up. They will only go down if faced with competition and that is, helas, not on the horizon for our island service.

The public transport gods have been particularly cruel this last week. Five of Fullers vessels are currently out of service for various reasons, including annual service and general engine failures, resulting in chaotic timetabling, lateness in arrivals and departures, and plenty of irate passengers who were denied boarding on several occasions as far too small vessels have to do commuter runs they were not designed for.
Even the "Ferry Users Group", memorably described by one of my fellow commuters as a floating Rotary Club, not normally known for militant or even slightly disrespectful criticism, pointed to a less than satisfactory maintenance regime at Fullers. Abject abuse of monopoly while running your resource into the ground is what I would call it.

I can't feel sorry for Fullers since I'm still expected to pay a first class fare for a cattle class service - and guess who will be paying for all the repairs and necessary future fleet upgrades?

UPDATE 26 October: The Waiheke Gulf News reports Fullers will give us a $50 discount on November's monthly passes (normal price $300) for putting up with the inconvenience. Pity that can't be made permanent since the diesel price has come down by that amount.

Fullers ferry fare increases

Hmmm, sorry for the lack of posts lately. There was too much work on so not much time to pursue this hobby. I did write a letter to the local island newspaper about the unjustified ferry price increases on August 1.
Basically we're being gouged by a private monopoly who can control the price of our freedom of movement at random, unencumbered by any price controls or subsidy strings attached to their service delivery, but that's the price of international monopoly capitalism, obviously. (Fullers is majority owned by Stagecoach, which in turn is a subsidiary of the evil bigoted Scottish Empire of the same name.)
The newly revamped Maxx website for Auckland transport users had a good thread on the issue, instigated by moi, naturellement.