Ferry pre-conditions not in place

Many residents on the Woy Woy Peninsula support a fast ferry commuter service from Ettalong to Sydney, but have concerns as to its financial viability.

They are aware that a tourist ferry service, using the existing Ferry Rd wharf, could easily be introduced with a low-cost upgrade to that wharf.

The only reason for utilising prime foreshore land on The Esplanade is to provide facilities necessary for an ongoing commuter ferry service to Sydney.

Discussions at Gosford Council meetings in 2005 and 2006 appreciated the above matters and made reference to three pre-conditions necessary, as determined when the State Government was involved in 2002/3.

Those pre-conditions/safeguards required the proposed operator, Fast Ships Ltd, to have in place before contracts could be finalised:

- a legally binding contract for the provision of a suitable vessel(s).

- a binding arrangement for berthing rights at Circular Quay (or equivalent).

- a viable financial business-operating plan, subject to due diligence by Gosford Council/State Government.

This week (December 14), I was allowed to inspect the relevant legal documents, being the Deed of Agreement and Lease and Sub-lease signed by Council and Fast Ships Ltd in July 2006.

I was very surprised to find the agreements do not appear to require any of the pre-conditions noted above to be in place prior to any work commencing on The Esplanade.

Instead, for a project which I estimate in capital terms to require some $25m to cover two vessels, a wharf-terminal and funding for a financial plan, Council only requires a deposit of $500,000 before work can commence - some two percent of the estimated project costs.

One has to ask why Council would do this, assuming it is not lack of commercial acumen.

Why wouldn't Council at least demand the same safeguards as the State Government?

No one wants a ferry terminal-wharf on prime foreshore land without a long-term commuter ferry service to Sydney.

I hope the project does not prove to be a "property play" to secure 40-year access to public Crown-Council owned foreshore land and that a commuter ferry service proves not to be financially viable.

If so, Peninsula and Central Coast residents will lose access to prime foreshore due to Council's lack of ensuring appropriate commercial safeguards were embodied in the agreements and contracts.

Michael Gillian Ettalong Beach