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 Traffic Engineer

East Riding of Yorkshire Council
£32,029 - £34,788 per annum
Currently seeking an enthusiastic and experienced individual to manage our Traffic Team. East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Ugobus Driver (multiple positions)

Essex County Council
Up to £18938 per annum
Please note that we have permanent, fixed term and relief contract opportunities on a part time, job share and flexible working basis. The salary is u England, Essex, Chelmsford
Recuriter: Essex County Council

Principal Transport & Infrastructure Planning Officer

Essex County Council
£52000 - £57570.0 per annum
Please note this is a two year fixed term contract with a potential for extension, subject to budget and workload. Job purpose Calling all transport P England, Essex, Chelmsford
Recuriter: Essex County Council

Food Safety Environmental Health Officer

Camden London Borough Council
£36,630 to £42,490
Seeking a highly motivated and experienced Environmental Health Officer to join our busy Food Safety team. Camden, London (Greater)
Recuriter: Camden London Borough Council

Policy Planner

London Borough of Richmond upon Thames and London Borough of Wandsworth
£25,327 - £36,486 depending on skills and experience
We have an exciting opportunity within the Spatial and Transport Planning service for 2 x Policy Planner roles... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Highways Inspector

Cambridgeshire County Council
£19,554 - £23,836
Looking for candidates who have experience of highways maintenance and have a sound technical understanding of highways. Cambridgeshire
Recuriter: Cambridgeshire County Council

Street Services Recruitment Day

Royal Borough of Greenwich
Competitive Salary
This role involves collecting residents and business wheelie bins and waste containers you will work as... Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Assistant Tree Officer

Camden London Borough Council
£25,880 - £27,904
Looking for an assistant tree officer to join a busy Tree Section working with the most up to date arboriculture equipment’s and IT resources.  Camden, London (Greater)
Recuriter: Camden London Borough Council

Pollution Environment Health Officer

Camden London Borough Council
£36,630 to £42,490
Seeking a highly motivated and experienced Environmental Health Officer to join our busy Environmental Health team. Camden, London (Greater)
Recuriter: Camden London Borough Council

Traffic Officer

Bedford Borough Council
£23,313 - £26,999 per annum
You will work as part of the Highways team providing specialist knowledge and advice on traffic management issues. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Vehicle Technician x2

Sandwell Metropolitan Borough Council
£24,313 - £28,785 per annum
Seeking to recruit two Vehicle Technicians, based at our Waterfall Lane Depot in Cradley Heath. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Senior Design Engineer - Guildford

Surrey County Council
£39,438 - £43,744 per annum
An opportunity has arisen within Surrey County Council's Highway Design & Delivery Team... Guildford, Surrey
Recuriter: Surrey County Council

Environment and Low Carbon Work Package Manager

Essex County Council
£38400 - £42420 per annum
Please note that this position is to be offered on a 3-year, fixed term contract.Interviews likely to be held week commencing 30th September 2019.Esse England, Essex, Chelmsford
Recuriter: Essex County Council

Director of External Operations

Somerset West and Taunton Council
£100,000
Somerset West and Taunton Council has been through a transformation that puts customers at the heart of everything we do. Taunton, Somerset
Recuriter: Somerset West and Taunton Council

Surface Water Engineer (Maternity Cover)

Essex County Council
£30300 - £35000 per annum + plus benefits
Essex is committed to enabling inclusive economic growth, helping people get the best start and age well, helping create great places to grow up, live England, Essex, Chelmsford
Recuriter: Essex County Council

Zero Emissions Network Officer

Tower Hamlets London Borough Council
£33,759 - £34,986
We are looking for an enthusiastic Zero Emissions Network Officer Tower Hamlets, London (Greater)
Recuriter: Tower Hamlets London Borough Council

Contract Supervisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£31,013 - £36,486 depending on skills, knowledge and experience
The role of Contract Supervisor (Waste and Street Cleansing) will require you to support ambitious plans to provide services for residents Richmond upon Thames, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Flood Risk Manager

Birmingham City Council
£43,662 - £54,574
The role requires the post holder to be the lead professional for the Authority’s Flood Risk Management and drainage function Birmingham, West Midlands
Recuriter: Birmingham City Council

Head of Highways & Transport

Lewisham London Borough Council
up to £72,705
As our lead expert on highways and transport, you will set the direction and lead on all transport related matters Lewisham, London (Greater)
Recuriter: Lewisham London Borough Council

Assistant Director

Hounslow London Borough Council
Up to £82k
Working across a wide range of high profile direct services, the emphasis for this role is on partnership working. Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council