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Government cancels Brexit ferry contracts
The Department for Transport is cancelling contracts to provide extra ferry services after Brexit in a move which could cost the taxpayer tens of millions of pounds.
The government paid Brittany Ferries and DFDS £89 million to secure extra freight capacity between the UK and Europe in the event of the UK leaving the European Union without a deal.
Some of the extra capacity might be sold, but if not, the government could lose millions.
Transport secretary Chris Grayling gave the go ahead to the contracts to ease pressure on the port of Dover after Brexit by arranging for more services to other ports.
A third contract awarded to Seaborne Freight and worth £13.8 million was cancelled after the company, which didn’t own any ferries, lost its financial backers.
Earlier this year, the National Audit Office estimated that if the government were to cancel the ferry contracts, it would lose £56.6 million. However, a government spokesperson told the BBC: "The termination of these contracts has resulted in less cost to the taxpayer than the termination costs reported by the NAO."
The government has already had to pay £33 million in on out of court settlement with Eurotunnel, after it argued it should have been considered for one of the contracts.
The DfT is also facing a legal challenge from P&O Ferries, which is arguing that the money given to Eurotunnel has put it at a competitive disadvantage.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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