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A choice between Brittany Ferries and rival bidder DFDS came down to extremely fine margins for Guernsey – one had boats, and the other didn't, the politician leading the process has claimed.
As Jersey Ministers set to meet to make their final decisions at midday today following crunch talks with both bidders to get further financial information yesterday, Express spoke to Guernsey's Economic Development President Neil Inder about some of the factors that led the island to pull the trigger on announcing Brittany Ferries as its preferred provider – whether Jersey agrees or not.
In a confidential memo to States Members seen by Express, Economic Development Minister Kirsten Morel explained that the cause of Jersey's hesitation was that they needed to ensure that the company that delivers the service is "financially sustainable and able to invest in a new decarbonised fleet, without placing excessive risk on the people of Jersey".
Deputy Inder said he believed the two bids had been quite level, with weaknesses and strengths in both.
"What was absolutely clear is that Brittany Ferries was a big brand. It was now underpinning what was the old Condor problem which existed. So that helped."
He added that DFDS was also a solid company.
"Really a lot of it was down to the mobilisation of the fleet. The fleet actually exists. DFDS didn't have a fleet that it could mobilise," he said.
"If the choices are so close, and you've got to look for other reasons as well, and the other reason was 'they've got boats, you haven't'."
In April, DFDS said that it had entered into an agreement with Tasmanian ferry manufacturer, Incat, to conduct a design study for a 72-metre-long hybrid vessel – with the option of converting it to a fully-electric craft. It came just hours ahead of its pitch to officials in Jersey.
A spokesperson for DFDS yesterday told Express that the company was absorbing the news about the Guernsey announcement and its implications.
They added that, at this stage, they could not comment further, particularly as the Jersey process remains active.
Pictured: Jersey's Economic Development Minister Kirsten Morel said he didn't want any burden put on Jersey taxpayers as a result of the ferry contract decision.
Brittany Ferries declined to comment further this week, beyond a statement from CEO Christophe Mathieu, who said he was "thrilled" about Guernsey's decision and expressed confidence that Jersey would reach a similar conclusion.
Yesterday, the Chair of Jersey's Public Accounts Committee – the panel responsible for scrutinising the spending of public money and good governance in procurement and tender practices – said she believed there had been a "failure" in the process.
Deputy Inna Gardiner told Express it was "clear" that there "is a big problem with communication between Guernsey and Jersey on all levels, despite what we were told previously" and questioned why Ministers still did not have all the required information from bidders when the process was due to have concluded at the end of September.
The PAC Chair said it was of "great concern that Jersey is now in a compromised position [as a result of Guernsey's unilateral announcement]" and therefore had to make a 15-year decision "under duress".
She said she hoped the final decision would be "evidence-based" – a sentiment echoed by the Economic Affairs Panel, which said yesterday: "The Panel hopes the Minister will base his final decision on the evidence provided during the tendering process, ensuring that it reflects the long-term interests of the Island by creating a financially stable and sustainable ferry link for Jersey."
Pictured: Deputy Inna Gardiner said Jersey must not be pressured over such a significant decision.
Deputy Inder said he would not engage in a conversation about Jersey's decision-making process when asked about why he was so happy with the financial and contractual information when Jersey had not been.
He stressed that professional States advisers with procurement, legal and financial expertise all gave the same message to Guernsey's government that Brittany Ferries was the correct choice for the island when the committee discussed its presentation.
Brittany Ferries will provide the island's freight and passenger services, using its management and infrastructure as well as deploying Condor's current fleet, he said.
The company had a turnover of approximately €450m in 2023, operating nine vessels with 2,500 employees, and is the majority shareholder in Condor.
Guernsey has strong financial links with Condor after loaning it £26m, while also investing another £3m in April 2023 to buy what is now the Condor Islander.
Pictured: The Condor Islander leaving St Peter Port after berthing trials.
Deputy Morel told Express that Jersey Ministers did not want to strike a deal that "could end up placing risk on Jersey taxpayers".
Deputy Inder stressed he believed that Guernsey taxpayers' money was safe under the new deal.
There are no solid plans in place about inter-island travel should Jersey pick DFDS, he said.
"Ideally for us, Jersey would make the decision and join us with the Brittany Ferries proposition. That may not happen, but very quickly after that, once they've made their decision, we've got to come back sensibly, like adults, and politically, and deal with the Guernsey/Jersey links, and I've had assurances from Deputy Morel that will happen."
It was always a part of the contract that the two islands could diverge at any point in their decision – "someone always had to go first," Deputy Inder said.
He added that further talks need to take place as part of the pre-contract negotiations about aspects like service frequency, freight and passenger costs.
"There are bits of negotiation that have to happen over the next few weeks," Deputy Inder said.
"But the great news is those boats are still travelling between the islands, and we are delivering on Jersey's operating agreement. That's what we're doing."
He said he was sure that both islands went into the contract talks with openness and the right intent.
"I'm absolutely certain both the Guernsey and the Jersey evaluators have done the right thing and have come to very similar conclusions, where the percentage gaps are ultimately political. It was a political decision of Guernsey to make its decision, and it will be a political decision for Jersey to make its own decision."
While many have viewed the islands' diverging approaches as evidence of a fresh fall-out between the islands, Deputy Inder said there was not a "massive rift".
"It looks like a big split between Guernsey and Jersey, but it's not at all," he said.
There has been no sign of political dissent about the announcement in Guernsey.
The island's leading Policy and Resources Committee, which holds Guernsey's purse strings, had been kept informed about the decision-making process, as had the States Trading and Supervisory Board, which has responsibility for the harbours and Environment and Infrastructure, which is responsible for the supply chain.
"There's been no great reveal, but that's what an experienced parliamentarian would normally do."
He said he had full support from politicians leading other committees.
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