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Financial information confirms Minister's ferry fears – but what are they?

Financial information confirms Minister's ferry fears – but what are they?

Friday 01 November 2024

Financial information confirms Minister's ferry fears – but what are they?

Friday 01 November 2024


"Concerns" which saw Jersey stop short of endorsing Brittany Ferries as the Channel Islands' new key ferry provider alongside Guernsey were "validated" after an emergency meeting yesterday where more financial information was shared – and those fears may soon be brought to light.

DFDS and Brittany Ferries, the parent company of Condor, are vying for the contract to provide lifeline sea links to Jersey and Guernsey.

Guernsey – which jointly purchased a new ferry with Condor and loaned the company £26m to prevent an undisclosed "potential emergency" occurring last year – unilaterally announced on Wednesday night that it had taken the decision to "push ahead alone" with Brittany Ferries.

But Jersey's Government said it had "further questions" for the two frontrunners and held urgent meetings on Thursday to gain more detailed information relating to their financial stability.

In a confidential memo to States Members leaked to Express, Economic Development Minister Kirsten Morel said Jersey needed "to be satisfied that the company that delivers them is financially sustainable and able to invest in a new decarbonised fleet, without placing excessive risk on the people of Jersey".

Concerns "validated"

However, a carefully worded statement released this evening by Government following a round of urgent Ministerial talks today confirmed the Minister had not been convinced by the detail that was provided.

"The Council of Ministers has had positive discussions on our lifeline ferry services. The questions asked of the operators were in the best interests of Jersey's public and were on crucial elements of operator ownership, financial viability, and future investment in vessels," the statement read.

"We have sought answers to these questions throughout the process and the Council of Ministers is pleased to have received some clarity over the past 24 hours to validate the concerns of the Minister for Sustainable Economic Development.

"We are now considering the answers and will make a further announcement on Monday."

DFDSCondor-2.jpg

Pictured: DFDS is the other bidder.

Contacted by Express after the statement's release, the Minister declined to provide further information on the exact nature of his concerns.

But those concerns may now be forced into the open, with backbench politicians calling for the Minister to call a special States Meeting so that the public can have greater "transparency".

Could confidential information finally be made public?

States Assembly meetings are covered by what's known as 'parliamentary privilege' – this means that States Members cannot face legal action for any information they share during the course of the meeting, even if it would ordinarily be confidential.

Such a meeting would allow the Minister to speak freely about the information he has been privy to, and what has led to significant hesitation in reaching an agreement with Guernsey on a preferred provider.

Deputy Montfort Tadier, the Chair of the Economic and International Affairs Scrutiny Panel, said: "As a Panel, we believe islanders have a right to expect that timely due process is applied to the current negotiations. It is not for the Panel to offer its opinion as to which company, if any, is best placed to be awarded the contract, but we do believe it is important that the public are able to have confidence in the process and at present, we do not believe that is the case.

"While the Panel understands the need for confidentiality regarding the bid process, that has made it difficult for the process to be scrutinised by either politicians or the public. 

"The Panel would strongly encourage the Minister for Sustainable Economic Development to call a special States meeting to consult with all States Members on the preferred way forward and bring some transparency to the process so far."

Condor Ferries suffered a £1.4m loss between March 2022 and March 2023, and in December the operator was tight-lipped over what it described as a "temporary but challenging time", just months before its CEO stepped down with immediate effect. It never disclosed what those issues were.

As previously reported by Express, accounts for the investment company under which the ferry firm sits said that its future is contingent on whether the company wins the tender – though the impact of only servicing just one island, should Jersey opt for DFDS, remains unclear. It is also unknown whether DFDS would be willing to operate 'half' the contract it bid for – the operator declined to comment while the Jersey process remains active.

Guernsey's decision about "fleet"... not sunk costs

Deputy Morel's counterpart in Guernsey, Deputy Neil Inder, denied that the fact Guernsey's government had already spent money propping up Condor was behind the decision to opt for its majority shareholder, Brittany Ferries, as the preferred provider.

Instead, he told Express yesterday that it was because they already had a fleet ready to go.

Inder

Pictured: Deputy Neil Inder, Kirsten Morel's counterpart in Guernsey.

He also said that he had no concerns that taxpayers may end up being burdened.

"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'."

£700k/month spent on contingency

Speaking to Express this evening, Deputy Morel also confirmed that, since January, Jersey and Guernsey have collectively been spending up to £700,000 each month to have two freight vessels – currently located in Dunkirk and the Irish Sea – on standby.

He said this was part of contingency planning.

He also said Ministers were all on the same page following today's talks.

Follow Express for updates...

READ MORE...

Top Condor exec stepped down near end of tender process

"They've got boats, you haven't" – Guernsey shares what clinched ferry decision

Confidential memo sheds light on Jersey's ferry hesitation

TIMELINE: On tender-hooks... The ferry-tale (or nightmare) so far

Fears Jersey "under pressure" while ferry bidder finances remain unclear

Jersey calls for answers as Guernsey goes it alone with Brittany Ferries

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