Complaint made to Commerce Commission over state of Cook Strait ferries

Consumer NZ claims Interislander and Bluebridge Cook Strait ferry operators are misleading passengers about their rights.

The watchdog has filed a complaint with the Commerce Commission as it believes the operators are also failing to meet their obligations under the Consumer Guarantees Act.

Bluebridge and Interislander ferries have both been hit with breakdowns and engine problems over the past few weeks. Some of the ferries have broken down partway through journeys across the strait.

Multiple sailings have been cancelled and thousands of passengers left stranded as both ferry operators are booked to capacity until mid to late March.

Consumer NZ chief executive Jon Duffy said ferry operators were required to carry out services (in this case scheduled sailings) with reasonable care and skill, as well as providing a service that’s fit for purpose.

“Given the frequency of sailing disruptions, caused by mechanical issues, we do not think the operators are using reasonable care and skill in providing their service.

“It’s our view that when someone makes a booking, they do so expecting the ferry to arrive at its destination at the scheduled arrival time.”

Interislander executive general manager Walter Rushbrook said delays were caused by a compounding set of factors, including some mechanical issues, weather, and the Covid-19 pandemic.

Each passenger’s situation was assessed on a case-by-case basis and there were circumstances where delays were outside of Interislander’s control, Rushbrook said.

“Depending on those circumstances, the Consumer Guarantees Act may not apply but, where it does or where we have obligations under our terms, we make sure we comply with those obligations, including appropriate compensation such as full refunds.

“This is a complex area and we are working through the legislation and legal requirements. The statutory regime for ferry operators is also very different to that of airlines due to a number of international treaties that apply to airlines. For ferry operators, the focus is making sure we meet our obligations under New Zealand legislation and our terms and conditions.”

Interislander was happy to work with the Commerce Commission if it decided to investigate, Rushbrook said.

Bluebridge has been approached for comment.

Consumers would usually be entitled to remedies including damages for foreseeable consequential loss relating to a breach of the Consumer Guarantees Act, Duffy said.

“Once people start having to fork out for accommodation and alternative travel arrangements, because of a cancellation or delay due to mechanical issues, we think the disrupted passengers are legally entitled to claim those costs back from the operator.”

These displaced passengers have had to fork out hundreds of dollars for flights - some abandoning their cars with plans to fly back in a month to retrieve them - and others have had to find medium-term accommodation until they can squeeze on to another sailing across the strait.

Complaints to Consumer NZ said the ferry operators were only offering ticket refunds or bookings on alternative sailings, Duffy said.

Operators are pointing to their terms and conditions, which state they are not liable to consumers for costs beyond ticket refunds, he said.

Duffy said it appeared both operators were trying to contract out of the Consumer Guarantees Act, which the watchdog considered to be in breach of the Fair Trading Act.

Commerce Commission fair trading general manager Vanessa Horne confirmed the complaint had been received.

“We will be assessing the information received, to decide whether to open an investigation. Our assessment looks at the nature of allegations and whether they potentially raise a concern under the Fair Trading Act.”