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 reasonable 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.

What's that smell?

On the 8: 00 am sailing from Waiheke - 8:15 am Fuller’s release septic waste off Quickcat into Rangitoto Channel off Islington Bay.

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.

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.

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

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.

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!

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.