Consumer NZ complains to Commerce Commission about Cook Strait ferries

Consumer NZ has lodged a complaint about Interislander and Bluebridge to the Commerce Commission, saying both Cook Strait ferry operators are misleading passengers about their rights and failed to carry out services with “reasonable care and skill”.

The consumer watchdog believed both operators did not meet their obligations under the Consumer Guarantees Act (CGA) for the recent cancellations and delays.

“Under the CGA the ferry operators are required to carry out services (scheduled sailings) with reasonable care and skill,” said Consumer NZ chief executive Jon Duffy​. “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.

“If a scheduled sailing is cancelled or substantially delayed due to mechanical issues then, as far as we’re concerned, the operator has failed to provide reasonable care and skill or a service that is fit for purpose.”

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Regular maintenance and a string of mechanical issues meant at one point last week, Interlander’s Aratere was the only operational ferry out of six ships to carry passengers between Te Ika-a-Māui and Te Waipounamu last week, wrecking havoc on travel plans for people at both ends of the Cook Strait.

Booking cancellations have disrupted freight, and left customers frustrated, angry and out of pocket.

A week ago, Interslander was trying to reschedule bookings for about 5000 people and 1500 cars affected by Kaitaki cancellations.

A week earlier, KiwiRail staff moved mattresses and bedding into the Picton ferry terminal, with passengers stranded by cancellations caused by Cyclone Gabrielle looking at more than a week in the port town before they could next get on a ferry.

Duffy said consumers were usually entitled to remedies including damages for foreseeable consequential loss relating to that breach.

In the case of Bluebridge and Interislander, Duffy believed disrupted passengers were legally entitled to claim costs for accommodation and alternative travel arrangements from the operators, who only offered ticket refunds or rescheduling on alternative sailings.

He said the operators, who “pointed to their terms and conditions” which stated they were not liable for costs beyond ticket refunds, were attempting to “contract out of the CGA”.

“As a result of this misleading behaviour, disrupted passengers are being left out of pocket. In our view, they’re legally entitled to claim these costs back.”

Interislander executive general manager Walter Rushbrook said the current delays experienced by passengers were caused by a number of factors, including mechanical issues, weather, and the impact of Covid-19 on crew numbers.

While each customer’s situation was assessed on a “case-by-case basis,” there were circumstances regarding the current delays that meant some of them were out of Interislander’s control.

Depending on those circumstances, the Consumer Guarantees Act may not apply. Where it did apply Interislander made sure it complied with the obligations of the act, including 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.”

Rushbrook said Interislander would be happy to work with the Commerce Commission if it decided to investigate.