Response to interpellation 2023/24:589 on the design of compensation for higher prices in Gotland ferry traffic
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
KD argues that the government has acted decisively to secure an unusual compensation for high prices in the ferry traffic to Gotland 1 2. KD emphasizes that the support is a transparent crisis measure that directly lowers ticket prices for passengers and freight customers 3. KD believes that everything possible was done to use existing mechanisms at the EU level 3. KD argues that the issues concerned an extraordinary effort as a result of an extraordinary situation 3. S appreciates that a follow-up of the funds is taking place. S argues, however, that the chosen model is strange and not particularly well-thought-out 4.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Statsrådet Andreas Carlson (KD)
Madam Speaker! Hanna Westerén has asked me how the reporting of the compensation for higher prices in the ferry traffic will practically take place, how it is ensured that the compensation in its entirety is allocated to achieve lower prices in the ferry traffic, and what happens with a potential surplus after the compensation period ends, in the event that not enough people have traveled and qualified for the compensation.
Increased freight and ticket prices for the ferry traffic to and from Gotland have negatively affected the economic situation for Gotland's residents. The Government therefore decided at the end of 2023 on the ordinance (2023:727) on state support for ferry traffic to and from Gotland. Destination Gotland has since applied for and been granted support according to the ordinance.
It is pleasing that Destination Gotland, as a direct consequence of this support, will lower prices for a period. Destination Gotland has announced that the support shall benefit its travelers and that there shall be transparency in how the money is used. The company has also announced that tickets at reduced prices can be booked for as long as the support amount lasts.
Trafikverket is responsible for the follow-up of the support paid out according to the ordinance. In the support decision, Trafikverket has specified as a condition that the recipient shall provide the information needed for the follow-up of the support. I intend to follow up on how the support is used.
Hanna Westerén (S)
Madam Speaker! I thank the Minister for Infrastructure for the answer. I particularly appreciate that it has been clarified that there will be a follow-up on how the funds are used. That was what I requested in a previous written question, but then I did not receive an equally clear answer. Therefore, I really appreciate the signal regarding the follow-up.
It is so vitally important - and that is what I know we agree on - that our common funds are used for what they are actually intended for. Funds allocated to Gotlandstrafiken shall, of course, be used in Gotlandstrafiken.
That compensation is issued for higher prices during an ongoing contract period is unusual. It is therefore so important and welcome for us who live and work on Gotland that this compensation has been granted at all. But it is also therefore so incredibly important that this occurs in an orderly manner and that it is possible to follow up. And as a Gotlander, I naturally want the possibility to always exist to do so again. Therefore, the follow-up of how the funds have been used becomes incredibly important.
The construction that was chosen for this compensation still appears strange. Therefore, I hope that the Minister for Infrastructure can today shed some light on why this specific model was chosen. For those listening, I can add that this is a model that gives someone a hundred kronor in reduced price on almost all tickets and freight during a specified two-month period.
The Minister for Infrastructure surely knows, just as I do, that travel to and from Gotland has not directly broken any records recently. That makes me even more questioning as to why this specific construction was chosen. Why was it done now and under these conditions?
According to the latest forecast regarding travel to and from Gotland, travel had decreased by approximately 6 percent. It is therefore unfortunately not so many who are traveling to Gotland right now.
Then I still wonder if the assessment is that these funds will be used in their entirety. What happens to funds that are potentially not used in the current model, if the travel has simply been too low? Are the funds frozen? Do they fall to the operator? Can periods with compensation be extended?
It is no secret that I am in opposition to the sitting government. But in this matter, I come with an open mind, with hope for greater care for Sweden's only island region. As I have said in a previous debate here today, the Gotland traffic is our highway. That it functions and that it can be traveled under safe and reasonable economic conditions is absolutely crucial for life on the island I come from.
The news of this compensation was so incredibly welcome but also quite surprising precisely because such compensation is rare. We have had quite few compensations during ongoing contract periods. Therefore, I am so incredibly keen that the conditions for this compensation are crystal clear and that it is possible to do this again if we end up in a new situation where prices spiral.
Based on what I know today, this design does not appear to be particularly well-thought-out. It is bothersome, to be honest. Therefore, I still wonder why this specific model was chosen and if there was no other way.
Statsrådet Andreas Carlson (KD)
Madam Speaker! Let me first say that I think it is very positive and pleasing to hear Hanna Westerén speak appreciatively about this compensation. It is true that this is something unusual. It is not a common occurrence that this type of compensation is implemented during the current contract period. But it was important for me personally and for the government to do everything we can in the situation that arose where prices skyrocketed. It affected both residents on Gotland and other travelers who travel to Gotland. Tourism and the visitor industry are an important part of the Gotlandic business community. It also affected the freight. We know that the transport of food both from Gotland to the mainland and vice versa is an important part of this.
The design of the compensation that we decided upon aimed to lower prices for adults, pensioners, youth, students, teenagers, children, and freight customers. It is, therefore, a broadly targeted initiative. This means the type of price reductions that Hanna Westerén describes. This is simple and easy to oversee. It is directly visible on the ticket price.
Madam Speaker! As I also said, Trafikverket has been tasked to follow up on this.
Destination Gotland has stated that it is important that the money goes directly towards lowering ticket prices. As I see it, there is of course no reason to distrust this ambition. But Trafikverket has a clear monitoring assignment when it comes to the payment itself.
Theoretically, the payments for reduced prices could continue for a longer period. It is Trafikverket that has the responsibility to follow up on the support. Thus, it also becomes clear what lessons can be learned regarding this design.
But to answer the question again, this is something unusual. But we saw this as something urgent and also that it was implemented as quickly as possible. We also ensured that the European Commission's acceptance for this compensation was obtained. Thus, this compensation became possible to pay out.
This will be transparent in that Trafikverket is reviewing it. There is certainly every reason to learn from this if different compensation models need to be designed in the future. But the most important thing has been that the passengers and freight customers are affected.
Hanna Westerén (S)
Madam Speaker! I thank you for the answers, even though they are to some extent confusing. I have great confidence in our Swedish authorities, and I live constantly in the belief that it probably would have been possible to find a somewhat smoother and more transparent model.
It is quite true, as the Minister for Infrastructure says, that one sees this price reduction directly on the ticket. But it is still difficult to do what we usually say in the agency administration, that it is important to be able to follow the money. I therefore still wonder what happens when the period is over but the money remains. I also wonder what the Minister for Infrastructure's position is on a possible new compensation. Does the Minister imagine that we use the same model, or does he believe there are lessons to be learned and opportunities to reshape? I would still like to recommend that we investigate another model where it is more certain that the funds are fully used, and preferably also that those residing on Gotland are prioritized higher.
It is not the first time that this issue has been debated in the chamber - the question of the conditions in the Gotland transport, not just the compensation issue. For a representative from Gotland, this issue is constantly topical.
A procurement process is currently underway for the next contract period. The ongoing cost crisis has resulted in price increases for freight and passenger traffic of nearly 50 percent in less than a year. It is a staggering figure. I would like to see the mass protests that such a price increase would generate in any other type of transport. It is a staggering figure that very palpably threatens growth, competitiveness, and the possibility of living, existing, and working on Gotland.
It was recently noted - I hope the Minister for Infrastructure is aware of it - that Gotland's population is no longer increasing after actually having done so for several years. It is no far-fetched thought that the ferry prices actually have an impact. I wish for the government to take this most seriously, because it is a completely unreasonable situation that Gotland in so many areas is left to the good will of the state authorities and that we have such diametrically different conditions in different parts of the country.
In other parts of the country, infrastructure projects are advocated for so that people can save a few minutes when commuting to work, and on Gotland, we have to fight, procurement after procurement, for our somewhat reasonable ferry times - but in addition, as I have already explained, pay incredibly high ticket prices. We are not really covered by ordinary infrastructure planning.
As I said earlier, the compensation was unusual but welcome. But I still want more information than that - without prejudging the procurement, for neither I nor the Minister for Infrastructure shall do that. I wonder how the Minister for Infrastructure intends to act so that Gotland's attractiveness does not decrease further. I know it is impossible to vaccinate ourselves against price increases similar to those we were hit by a few years ago, but I want to know what the Minister intends to do to at least protect us from them. We cannot have this situation for travelers and freight buyers in Gotlandstrafiken.
Statsrådet Andreas Carlson (KD)
Madam Speaker! I answered the question regarding whether it is theoretically possible to continue lowering the prices over a longer period if any surplus were to occur. Destination Gotland has been clear that the money should be paid out to the travelers and the freight customers, and Trafikverket is responsible for following up on the support.
This is surely an expression that the government takes the issue most seriously, Madam Speaker. We are now doing something as unusual as sending a compensation to travelers and freight buyers in Gotlandstrafiken during the current contract period. If anything, it is a sign that the government takes this most seriously. We could have stood here and had a different debate today, Madam Speaker, if we had not received the support in place. There were those who believed that the prospects for getting this through were not so good, but my conviction and the government's determination have ensured that we were given the opportunity to secure the compensation.
This benefits Gotland's travelers, residents, and visitors. It is, of course, also a part of the attractiveness, given that it is important to have competitive prices in Gotlandstrafiken - not least in light of what I said in my previous post, namely that the tourism industry is very important, that Gotlandstrafiken is an important part of the food supply, and not least that this concerns the residents on the island. It is about their infrastructure to reach the mainland, Madam Speaker.
There may certainly be variants of the model, but there is a transparency and clarity: It directly affects the ticket price, and Trafikverket has been tasked to follow up on this. I am very pleased that this is something we were able to get in place. I also think the member deserves recognition as she also highlighted in the interpellation that she appreciates the compensation for higher prices in the ferry traffic.
Hanna Westerén (S)
Madam Speaker! I appreciate the news that an extension is possible. It is of course a positive piece of news, and I appreciate it - as likely most people in Gotland do with me.
As the Minister for Infrastructure has said and as I have noted, this is unusual. Therefore, it pains me that one takes this rather unusual step and actually introduces a compensation but then – as I perceive it – does not place enough weight on the model. It gives me a feeling that there is a risk that this will become a one-off occurrence when it should rather be something that one has as an ace up the sleeve to use during new, large price increases.
Of course, I would however wish that this did not need to exist as an ace up the sleeve or as a one-time occurrence. I want us to have a more stable foundation to stand on when it comes to the Gotland traffic - more long-term conditions regarding the price issue, safety, and the question of flagging, which we have discussed in an earlier interpellation debate today. The compensation is indeed a symptom of the fact that the Gotland traffic is not regulated in an optimal way today, which means that we are worsening the conditions to live, reside, and operate on Sweden's largest island in Sweden's largest island region.
It is my accompanying note to the Minister for Infrastructure. I am happy to repeat that I welcome the compensation, but it is part of a very large issue where all of Gotland would be much better served by further stability in the conditions we have to work under.
Statsrådet Andreas Carlson (KD)
Madam Speaker! The support is part of the possibilities that existed to pay out support due to the extraordinary price increases in natural gas in relation to other fuels as a result of Russia's aggression against Ukraine. It is therefore a type of crisis support that we have notified the EU Commission about, and therefore it is designed in this way. It is a model that is transparent for the individual - it is directly visible on the ticket prices - and which means that Trafikverket shall follow up on the support. The company Destination Gotland has also been clear that the money shall be used to lower ticket prices and freight costs.
This is an unusual occurrence, but it was an opportunity that existed from the mechanisms at the EU level and which we did everything we could to utilize. There are other parts, which we can discuss in other contexts, to strengthen the competitiveness of shipping and Gotland, but the questions that have been asked today and which I have answered, Madam Speaker, were about an extraordinary effort as a result of an extraordinary situation.
I am very pleased that we managed to get this across the finish line, which benefits Gotland's residents, Gotland's companies and travelers to and from the island. I think that is something positive, and I am proud and happy that we share the view that this is something unusual but also welcome and necessary.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.