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Low to middle-income earners could be driven off Waiheke Island unless the Fullers ferry route is opened up to fair competition or regulated as a monopoly, ferry users say.
The cost of travelling from Waiheke to Auckland has increased 52 per cent over the past six years, and it is suggested that last month's increase places the commuter route among the most expensive in the world.
According to statistics compiled by the lobby group Campaign for Fair Ferry Fares, a return from Auckland to Waiheke costs 164 per cent more per kilometre than one to Half Moon Bay, Pine Harbour or Gulf Harbour.
A return journey on the Waiheke ferry costs passengers $0.74 per km, compared to $0.54 per km on Sydney's ferry to Manly, $0.47 per km from Seattle to Bainbridge Island and $0.25 from Wellington to Picton.
But Fullers chief executive Doug Hudson says Waiheke residents need to consider the quality of service - ferries operate until midnight every night of the week because the company realises it is servicing an island and commuters have no other option.
He disagrees it is one of the most expensive routes around, pointing out it is more expensive per kilometre to take the ferry from Auckland to Devonport. Hudson says fuel costs have increased 70 per cent from last year to this year, but the number of passengers has increased 1.3 per cent over the same period.
Fullers operates six ferry services in Auckland and the Waiheke ferry guzzles more than half of the company's total fuel costs, Hudson says.
He says Fullers realises operating costs are not going to disappear so it is looking at other ways it could control the fares, such as whether it could change the timetable seasonally.
"We don't like putting the fares up, it's always regrettable," he says.
Waiheke's residents say the latest price rise on the route to the island knocks $44 off a regular commuter's monthly budget, and is already pushing those on salaries of $40-$60,000 or less off the island - either that, or holding them captive.
Cathy Urquhart, who leads the Campaign for Fair Ferry Fares, says for people on lower incomes, the choice is now between fares or food.
Her group surveyed a cross-section of ferry users in 2006 and found all income levels were unhappy about rising fares. Those earning $60,000 or less per year - more than half of the respondents - said they would have to cut down on food or other household items to afford the ferry fares.
It's the tip of the iceberg for families whose budgets are already stretched, says mother-of-two Sue McCann, who has lived on the island for 13 years. The increase means it now costs her family $80 to get to Queen St - the equivalent of a car journey to the Bay of Plenty. Last year it was closer to $65.
McCann says she knows eight Waiheke families who have left for Australia in the past six months.
The increase in fares was a major reason single-parent Dominique Simanke, who had lived on Waiheke for 14 years and commuted to Auckland with her son, shifted to New Plymouth in August.
The cost of monthly ferry travel for her and her son had already risen from $339 in 2002 to $460 in 2006, and will be $516 after the latest increase. On top of that, parking is no longer free at the wharf.
"I couldn't afford it any more, even without children it's a lot of money to fork out at the start of the month," says Simanke, who also believes Waiheke has lost its diversity over the past few years - you need a lot of money to live there now.
"The island stands to lose so much if it loses its commuters," she says.
But it's not just the commuters - tourism numbers will also fall, McCann says. She owns a tourism store in Oneroa and is worried about the impact of fares on local retailers.
Most of the spending is thought to come from domestic visitors - with higher fares, the island's frequent visitors will reduce their trips, and new migrants may decide not to visit at all, McCann says.
Urquhart says she would like to see the ferry route opened to fair and free competition, or recognised as an essential service and regulated.
Hudson says there are no barriers to entering the Waiheke ferry market, and he suspects the reason there is no competition is because of high costs.
He says the perception that Fullers controls the route is untrue.
The idea of a subsidy has also been floated at meetings - this would be something all households would have to contribute to regardless of whether they use the service or not.
The Auckland Regional Transport Authority (ARTA) says it has no powers to influence commercial activities under existing legislation.
The authority has not been approached by Fullers to withdraw all or part of its commercially registered service, but if the company ever does choose to deregister all or part of its commercial registration, ARTA will call for tenders through an open competitive process to form a contract.
