loW service stays
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a Freight operators using the Isle of Wight ferry services are to retain their present level of service — the Government has confirmed that it will not be moving against the main operator, Wightlink.
In a Monopolies and Mergers Commission report issued last week, the MMC concluded that Sea Containers subsidiary Wightlink has a monopoly in the supply of ferries between the island and mainland England, but that it does not operate against the public interest.
However, because of the potential for abuse of Wightlink's dominant position, the market will be reviewed in three year's time.
In 1990 Wightlink accounted for about 80% of freight vehi
des, 94% of coaches and 85% of cars across the Solent, There are three other cross-Solent ferry operators: Red Funnel, which is owned by Associated British Ports Holdings; and two independent operators, Hovertravel and Cowes Express.
Announcing the report, Trade and Industry Secretary Peter Liliey said: "The MMC found that competition between Wightlink and other operators exists but is not strong.
While they found that Wightlink's profits were high — and towards the limit of what was acceptable for a company in its market situation — they concluded that in current circumstances neither its profits nor its fares were against the public interest."