‘Subsidy not enough’
INTER-ISLAND ferry service provider, Victoria Marine Ltd is seeking an increase in Government’s shipping franchise subsidies from the $2.3 million allocated to them.
In his presentation to the standing committee on natural resources, the company’s managing director Joe Tagi said the company suffered losses every year because the subsidy failed to relieve the company’s expenses.
While presenting a video regarding the MV Brianna’s operations in the Lau Group, Mr Tagi told the committee that his company continued to service the remote islands of Lau despite these losses in order to assist people.
Mr Tagi had welcomed Government’s proposal for an increase of the franchise contract to 15 years, adding that an increase was needed to make the company viable commercially.
“If we increase the term but the subsidy doesn’t go up, nothing will change,” he said on Tuesday.
“Increase in subsidies will enable us to cater for other problems. The current subsidy provided is not enough to improve the quality of ships and getting new vessels.”
Mr Tagi said increase in fuel prices, uneconomical routes, delayed trips served by their vessels incur high costs for the business.
He said without Government assistance, his shipping business would have no other choice but to seek other profitable routes.
Committee’s chairman Jale Sigarara commended Mr Tagi’s efforts to provide services to the people of Lau.
Mr Sigarara said Parliament would have the final say on the requests of the shipping company which single-handedly serviced the Lau Group.
He said all stakeholders issues raised on the franchise scheme would be taken into consideration by the standing committee before it is put before Parliament for debate.