THE future of the Hythe to Southampton ferry could be under threat following the introduction of car parking charges in the New Forest.

White Horse Ferries says the number of people using the service has dropped by up to 16 per cent a month since free parking was scrapped in January.

Ferry bosses claim the controversial charges are the "single most serious threat" to the future of the service, used by 500,000 people a year.

They have written to New Forest District Council and demanded the immediate abolition of the fees.

The company is still reeling from the financial crisis caused when the dredger Donald Redford smashed into Hythe Pier last November. Ferries operated from Hythe Marina until the 123-year-pier reopened on January 6.

Repairs were funded by an insurance payout and a settlement from the owners of the dredger, but White Horse Ferries was hit by extra costs as a result of using the marina and also suffered a drop in passengers.

Parking charges, coupled with loss of long-stay parking places near the pier, have added to the firm's financial woes.

Fewer people have parked in Hythe and taken to the ferry to Southampton since the pay-and-display meters appeared.

Drivers have to pay 50p an hour, or £3 if they want to park for longer than five hours. Adult return tickets on the ferry cost £4.20 at peak periods, resulting in an overall bill of £7.20.

Richard Lay, a director of White Horse Ferries, has written a hard-hitting letter to council chief executive Dave Yates.

The letter says: "Since the introduction of parking charges there has been a serious reduction in the number of passengers using the ferry.

"We experienced reductions of 16 per cent in January, 11.5 per cent in February and 12 per cent in March. They were calculated after all other distorting factors had been removed.

"If this continues the impact on the ferry will be very serious.

"It represents the single most serious threat to the future of the service and we request the immediate removal of the charges in Hythe."

Mr Lay told the Daily Echo: "It's the first year since 1994 that we've seen a drop in trade - and it's a significant drop."

Asked if he thought the ferry could be driven out of business he said: "Anything is possible."

The service, which employs 26 staff, is used by people who do not have a car or want to avoid the ever-increasing congestion on roads between Hythe and Southampton.

County councillor Brian Dash said: "The ferry is a vital transport link and must be maintained at all costs."

In a statement the district council said that it considered the downturn in White Horse's profits were "as likely to be a consequence of unforeseen events such as the accidental damage to Hythe Pier as the introduction of car parking charges".

It went on: "We are gathering information on parking trends in Hythe and elsewhere. When the data has been analysed we'll be in a good position to provide an objective assessment on the impact of the new charges."