Belfast City Council Development (Economic Development) Sub-Committee Update on SeaCat Irish Sea Service (April 2005)
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Contents |
Purpose of Report
The purpose of this report is to update Members on the outcome of the meeting held between Members of the Economic Development Sub-Committee and SeaCat officials on Friday 4th March, 2005.
Background
Members will be aware, at the Economic Development Sub Committee of Wednesday 12th January, 2005 agreement was sought to write to SeaCat to request a meeting following announcements regarding the potential closure of the fast ferry link service between Belfast and Troon.
A letter on behalf of the Sub-Committee was sent to the General Manager of SeaCat Irish Sea Service on Wednesday 19th January, 2005 requesting the opportunity to meet with company officials during the 30 day consultation period.
Belfast City Council was forced to make contact again with the ferry operator on Monday 7th February, 2005 having not received a response to City Council’s request. At this time it became apparent that SeaCat had in fact sent a response to the Chair, advising of two possible meeting dates in January, however the correspondence had been sent to an incorrect address and was therefore not received within the necessary timescale for consultation.
Although Seacat officially announced the closure of the fast ferry service on Monday 7th February, 2005 SeaCat agreed to meet with Members of the Sub-Committee on Friday, 4th March, 2005.
The following paper provides Members with an update on the discussions that took place between Council and SeaCat and makes a series of recommendations regarding future activity with existing ferry operators in Belfast.
Update
The meeting was attended by Councillor McGimpsey, Councillor Rodgers, Councillor Newton, Ms Lisa Trimble and Ms Diane Poole, General Manager of SeaCat Irish Sea Service.
Prior to Closure
For two years prior to announcing closure of the service, the Sea Containers company made many attempts to retain the Belfast to Troon service by investigating the opportunities that existed to join services with other ferry operators, or to find alternative owners for the SeaCat company.
As the trading losses continued to climb, SeaCat approached Government for advice and guidance on the prospect of accessing funds under the Air Access Grant. The Air Access Grant had £4 million to help develop new routes to improve tourism. Although SeaCat put forward a strong case that suggested the grant should be available for all transport, SeaCat were sadly informed that the fund was not in place to subsidise the shipping industry.
The Northern Ireland Tourist Industry Confederation (NITIC) was also approached for help but were unable to assist.
Current Situation
Ms Poole provided Members with an update on the current situation regarding the closure of the Belfast – Troon fast ferry service.
A total of 45 redundancies were made as a result of the loss in service; 41 people employed in Belfast and four in Troon. Of the 41 Belfast redundancies, 22 have been redeployed within the SeaCat company (call centre), 17 have sought employment elsewhere (mainly in the retail and transportation sectors) and two have yet to confirm details of future employment. It is anticipated that the remaining two individuals will be offered employment within the call centre should they choose not to seek employment elsewhere.
The call centre facility will remain in Belfast at the Harbour Commissioners building and will not only be the contact centre for the Isle of Man Steam Packet but will also provide reservations for the new Irish Sea Express commencing in April (Liverpool – Dublin). On Monday 14th March, 2005 all staff in the call centre that were previously employed by SeaCat will have a transfer of undertakings to the Isle of Man Steam Packet company.
The Isle of Man Steam Packet Company, one of the longest established ferry operators has a user agreement to 2020 which gives the company exclusive rights to the Irish Sea and states that it must provide 4 services a week to Ireland.
Port fees have been paid to Belfast Harbour Commissioners for the next 12 months and as a result SeaCat owns the terminal for a further one year.
The SeaCat vessel is now operating on the Hoverspeed's Dover Calais route.
SeaCat believes that Sea Containers long term strategy is not in the passenger ferry market.
Other operators are currently investigating the opportunities that may exist for returning to Belfast.
Impact of Closure
It is estimated that closure of the service will result in a £1million loss to the economy. Closure has also resulted in a series of knock-on effects to suppliers and travel companies. Travelbreak (NI) is a Tour Operator based in Belfast who specialise in short break packages by ferry utilising the services of SeaCat, HSS, Stena and P & O. The scheduled service between Belfast and Troon operated twice daily in both directions. The closure of this service has resulted in a considerable loss of business to Travelbreak, anticipated by SeaCat to be in the region of £200,000. Other suppliers affected include Belfast Harbour Commissioners, Belfast Ship Stores, Value Cabs, Modern Office Supplies, Ballygowan, United Cleaning Services, British Telecom and BP.
Ms Poole confirmed that closure of the service to Troon will result in an annual loss of 300,000 visitors to Northern Ireland.
A total of four ferry routes have recently closed including Belfast – Troon; Belfast – Heysham; Ballycastle – Campbeltown and Liverpool – Dublin. This should create concern in itself, as the customer will now be paying more to cross the Irish Sea as competition has been reduced.
Future Actions
A number of recommendations emerged from the meeting and are presented below for Members consideration.
- In the absence of an organisation willing to listen to the issues being faced by Irish sea operators there is a real need for Belfast City Council to engage with existing ferry operators in Belfast, including that of StenaLine and P&O Irish Sea.
- Regular briefing meetings between Council and the ferry operators should be encouraged in order to understand the problems being faced by operators in the area. SeaCat advised that these meetings should be held independently of one another due to the competitive nature of the industry.
- Lobby other companies such as the Isle of Man Steam Packet Company to ensure the best possible deal for the customer.
- Develop links with Ayrshire Council to investigate the potential that exists for reopening the Belfast to Troon ferry service.
- Regular updates should be sought from the Belfast Harbour Commission on items that are of importance to the Belfast economy, such as closure of a fast ferry link service between Belfast and Scotland.
Environmental Implications
None.
Equality Considerations
None.
Capital City Strategy Reference
To drive the economic growth of Belfast.
LED Plan Reference
Driving economic change.
Budgetary Implications
None.
Recommendations
It is recommended that Members:
- Note the contents of the report; and,
- Provide guidance on the way forward.
Decision Required
To approve the foregoing recommendations.
