MACKINAC ISLAND -- An official with the Michigan Chamber of Commerce is weighing in on a dock purchase plan for Mackinac Island.
Richard Studley, President and CEO of the Chamber of Commerce wrote an open letter to the Mayor of Mackinac Island Friday.
The City of Mackinac Island is considering purchasing docks and entering into a franchise agreement with one ferry company, which some say will create a monopoly on ferry service to the island.
The entire letter sent is below:
September 24, 2010
An open letter to the Mayor and City Council of the City of Mackinac Island
Dear Mayor Doud,
I'm writing in regard to news reports about the City of Mackinac Island's efforts to purchase docks and potentially enter into a franchise agreement with just one company, creating a monopoly on ferry service to the island.
As a former municipal official - City Manager of Alma and Grand Ledge City Council member - I understand the desire to ensure transportation service to the island and respect the importance of local control.
That said, any effort to guarantee transportation service through a government-approved monopoly would be unnecessary, inappropriate and potentially very damaging to the economy of the island, Mackinaw City and St. Ignace.
Free enterprise and healthy competition among ferry operators has served the straits region well for many decades. As a dock porter for the Murray Hotel and the Island House Hotel in the mid-70s, I personally witnessed the benefits of competition for visitors to the island.
As a Chamber executive, I continue to visit Mackinac Island at least once a year and appreciate the choice between ferry operators. Competition has taken Mackinac Island from once-a-day ferries to runs as often as every 15 minutes.
Without that competition, the quality and quantity of ferry service would not be what it is today and would likely decline in the future.
Shepler's Mackinac Ferry Service has served the island since 1945, when its only vessel was a sixpassenger speed boat. Today Shepler's employs 150 people, 100 of whom benefit from the company's health insurance and 401(k) plans.
The straits community can't afford to lose a job provider like that. Frankly, with Michigan's unemployment rate still second highest in the country, I'm concerned that news of a city using its franchise authority to put a successful, family-owned and operated company out of business would damage our state's reputation at a time when we can least afford it.
Cancelling one or more of the franchises for ferry service would probably result in:
Higher prices for consumers
Longer waits for service with more unhappy customers
Closure of a long-time local business with deep community ties
In closing, I respectfully request that you reconsider any plan to cancel franchises and instead work to maintain good quality ferry service provided by several privately owned and operated businesses.
Sincerely,
Richard K. Studley
President & CEO
600 S. Walnut Street Lansing, MI 48933 (517) 371-2100 Fax: (517) 371-7224
Michigan Chamber of Commerce Website
The next meeting on the issue will be held October 6 at 5:00 PM on Mackinac Island
