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Threat of Guernsey Air Freight Hike Rescinded

NFRN members in Guernsey have been on tenterhooks for the past few weeks over proposals from the island Minister of Public Services to increase the price of air freight imported into the island by 3.4p per kilo in order to raise £1.8m to fund capital projects.

According to the NFRN: “Still smarting from an action by the Financial Times, who hiked its Channel Island prices by 30p and reduced retailer margins to just 20%, Guernsey newsagents were fearful that a rise in air freight costs would force other publishers to take similar action.

In an attempt to dissuade the Guernsey States from increasing air freight charges, a meeting was arranged with Deputy Bernard Flouquet, Minister Public Services, and two of his colleagues on Thursday 24th March. Representing the news industry were: David Sheppard (NFRN Guernsey Branch President), Naresh Purohit (NFRN NEC Member), David Daniel (NFRN Trade Relations Manager), Bryan Lowe, (H Le Gallez & Son, wholesaler) and Des O’Dwyer, (News International representing the NPA).

After making a strong case against the proposed increase in air freight charges, which would herald bad news for both Guernsey newsagents and newspaper and magazine readers, it was apparent that other interest groups had already met with the Minister to express their opposition to the proposal. It was also clear that the Minister had also encountered some opposition from within his political colleagues in the States Government, such that a number of amendments to the proposals had been tabled.

Following the meeting, David Sheppard made contact with both the Guernsey Press and local Guernsey radio in order to build pressure in advance of the debate in the States Government on Wednesday 30th March.

After the debate it is a relief and pleasing to hear that on a vote of 33 to 7 the Guernsey States Government has thrown out the proposal to increase the air freight charge and is, instead, looking for other solutions to raise money for capital projects.

David Daniel said: “Due to the unique nature of news retailing in Guernsey, the opportunities for the NFRN to help and support our valued members on the island are comparatively few. Neither Naresh nor I, therefore, had any hesitation in responding to a request for help on the air freight proposals. It is pleasing to see that the threat is now lifted and that the Guernsey States Government now has an opportunity to adopt a fairer and more broad-based fiscal approach to raising revenue for capital projects and not just attacking imported air freight.

“Whilst in Guernsey, Naresh Purohit and I also had the pleasure of attending and meeting a number of members at the Guernsey Branch AGM at which David Sheppard was re-elected as Branch President. It is easy to see why his Guernsey colleagues treasure this indefatigable Federation stalwart who does so much on behalf of his members.””