DfT cancels Brexit ferry contracts at £50m cost

 

A further £50m has been lost on the botched Brexit ferry deal contracts after the Department for Transport (DfT) cancelled them altogether.

This comes on top of the £33m paid in compensation to Eurotunnel over the botched procurement process, exposed in part by Transport Network, and £1m paid to consultants.

Contracts worth £89m with Brittany Ferries and DFDS to secure ferry space for vital goods across the Channel have been cancelled, resulting in the £50m termination cost.

This follows the cancellation, without compensation, of a £14m contract with Seaborne Freight, which made the headlines after it was revealed the company had no ships.

The contracts were drawn up after a belated DfT risk assessment found the risk of a no deal Brexit to vital shipping capacity in the Channel could run to billions.

In November 2018, DfT estimated 'six months’ disruption without intervention would be £5.25bn, while the benefit of its planned intervention would be around £1.3bn, at a total cost to government of £270m'.

'The maximum early termination charge the Department would pay, which is if it cancelled all contracts ahead of 29 March 2019, is £56.6m,' the National Audit Office said, although the DfT appears to have negotiated this down.

The date of Brexit having been pushed back from 29 March to 31 October, the cancellation of the contracts was necessary because, despite the process being based around contingency planning, there was no provision for the start date to be delayed.

Government sources told the Guardian that further ferry contracts could be taken up in the autumn but that it was cheaper to cancel the existing ones and then go back to market.

It has also emerged P&O Ferries is set for legal action against the Government over the £33m settlement with Eurotunnel. P&O said the compensation left its ferry service facing an unfair disadvantage.

A DfT spokesperson said: 'The Government’s freight capacity contracts were a vital part of contingency measures, ensuring goods like medicines could enter the UK in the case of disruption during a no deal Brexit.

'Following the extension, the Government is reviewing all preparedness plans. The Government’s freight capacity contracts for the summer period are no longer needed and have therefore been terminated.

'The Government has taken this decision now as it represents the best value for money for taxpayers. The termination of these contracts has resulted in less cost to the taxpayer than the termination costs reported by the NAO in their own analysis of the freight capacity contracts.'

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Senior Travel Plan Officer

Somerset County Council
£25,991 to £29,577 per annum
Fantastic opportunity in Somerset to work in our Travel Plan Team within the Highways Development Management service as a... Somerset
Recuriter: Somerset County Council

Outdoor Learning Assistant

Kirklees Metropolitan Council
£11,036 per annum
You will contribute to the outdoor learning programme for a wide range of participants visiting our Centres. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Director of Operations

St. Helens Metropolitan Borough Council
£92,968 - £98,282
This role is an opportunity for talented, corporate thinking and grounded leaders to grow personally and professionally in... St Helens, Merseyside
Recuriter: St. Helens Metropolitan Borough Council

Principal Traffic Management Engineer

City and County of Swansea Council
£38,890 to £42,821 per annum
You will enjoy an interesting and satisfying work-life with many opportunities to develop valuable skills and experience in the delivery of... Swansea (Abertawe)
Recuriter: City and County of Swansea Council

Refuse Driver (LGV Chargehand Driver)

Royal Borough of Greenwich
£22995 - £24258 per annum + plus contractual overtime and allowances
It is an exciting time in Waste and Street Services at the Royal Borough of Greenwich. This is a opportunity to be part of a busy, successful team mak England, London, Greenwich
Recuriter: Royal Borough of Greenwich

Principal Traffic Signal and ITS Engineer

Warwickshire County Council
£40,876.00 - £42,821.00 plus annual standby allowance of £2,562.84
You will be responsible for the day-to-day operation and maintenance of our Urban Traffic Management and Control System. Warwickshire
Recuriter: Warwickshire County Council

Refuse Driver

Royal Borough of Greenwich
£22.995 - £24.258
The successful candidates will work anywhere within the Borough of Greenwich, work outside in all weathers, and be able to use... Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Public Protection Group Leader

Kirklees Metropolitan Council
£43,857 - £45,859
You will develop a strategic approach to deliver a service which promotes jobs and businesses, protects the safety of... Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Project Officer - Air Quality

Kirklees Metropolitan Council
£27,741 - £30,451
We’re looking for an additional team member to support the Senior Environmental Health Officers in... Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Customer Support Officer

The Royal Borough of Kensington & Chelsea Council
£25,833 - £29,796 per annum
The successful candidate for this role will be someone who has great administration and customer service qualities, and... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Refuse Driver (LGV Chargehand Driver)

Royal Borough of Greenwich
£22.995 - £24.258
It is an exciting time in Waste and Street Services at the Royal Borough of Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Citizen & Consumer Protection Team Manager

Sandwell Metropolitan Borough Council
£41,881 - £46,845 per annum
We are looking for a committed and driven individual to join the team.  You will manage an area team with... Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Parking Control Design Engineer

Royal Borough of Greenwich
£32.430 - £34.794
We are seeking to recruit an engineer to join our busy and dedicated design team. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Environmental Health Officer

The Royal Borough of Kensington & Chelsea Council
£33,600 - £45,400 per annum
An opportunity has arisen in the Health and Safety Team, for an Environmental Health Officer / Health and Safety Practitioner. Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Cyfarwyddwr Corfforaethol - Economi a’r Amgylchedd / Corporate Director Economy & Environment

Caerphilly County Borough Council
£117,115 - £130,128 p/a
Tîm Caerffili-YN WELL GYDA’N GILYDD Team Caerphilly- BETTER TOGETHER Caerphilly (Caerffili)
Recuriter: Caerphilly County Borough Council

Project Engineer

North Yorkshire County Council
£24,982 to £35,745
We have an exciting Project Engineer opportunity in our Boroughbridge Highways Operational office. Boroughbridge, York
Recuriter: North Yorkshire County Council

Highways Asset Commissioning Officer

Somerset County Council
£30,451 to £34,728 per annum
Somerset is a great place to live, work and play, with a spectacular countryside and coastline Somerset
Recuriter: Somerset County Council

Highway Development Manager

Coventry City Council
£48,545 - £52,090
Coventry is a great place to live and work and it’s getting even better - and having the right infrastructure is vital. Coventry, West Midlands
Recuriter: Coventry City Council

Noise and Nuisance Officer

The Royal Borough of Kensington & Chelsea Council
£31,434 - £34,986 per annum
We would like you to have some experience in working in Environmental Health so that you can show an understanding of... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Service Manager - Engineering & Project Delivery

Telford & Wrekin Council
£47,853 - £53,792 per annum (including market factor)
Are you looking for a challenge and diverse range of work in your next career move? Telford, Shropshire
Recuriter: Telford & Wrekin Council