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Government asked to explain £33m payment to Eurotunnel

4 March 2019 (updated on 4 March 2019)

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Shadow Transport Secretary Andy McDonald asked the Government about its £33 million payment to Eurotunnel.

This follows a recent out of court settlement of £33 million paid by the UK Government to Eurotunnel for a Brexit-related ferry contracts, one of which was awarded to Seaborne Freight and later cancelled amid controversy.

Members of the Opposition have called on Chris Grayling, the Transport Secretary, to answer the urgent question, with some going so far as to call for his resignation.

The Secretary of State for Health and Social Care, Matt Hancock, replied to the urgent question on behalf of the Government and stated:

"The best way to ensure a smooth and orderly exit from the EU, both for the NHS and for the wider economy, is to support the deal that the Attorney General is currently finalising. Anyone in this House who cares about the unhindered supply of medicines should vote for that deal, but leaving the EU without a deal remains the default position under the law, and it is incumbent on us to keep people safe. It is therefore vital that adequate contingency measures are in place for any Brexit scenario.

Preparing for a no-deal exit has required significant effort from the NHS, the pharmaceutical industry and the whole medical supply chain, and I pay tribute to their work and thank them for their efforts on these contingency measures. The settlement struck between the Government and Eurotunnel last week is an important part of these measures. Because of the legal action taken by Eurotunnel and the legal risks of the court case, it became clear that, without this settlement, we could no longer be confident of the unhindered supply of medicines. Without this settlement, the ferry capacity needed to be confident of supply was at risk. As a Government, we could not take that risk, and I doubt anyone in this House would have accepted that risk, either. With this settlement we can be confident, as long as everyone does what they need to do, that supply will continue unhindered. Under the settlement, Eurotunnel has to spend the money on improving resilience, security and traffic flow at the border, benefiting both passengers and business."

Andy McDonald responded to the Secretary and said:

"Even in this golden age of ministerial incompetence, the Transport Secretary stands out from the crowd. He leaves a trail of destruction in his wake, causing chaos and wasting billions of pounds, yet he shows no contrition, no acknowledgment of his mistakes and no resolve to learn and improve. He is now ridiculed in The New York Times. The mayor of Calais has banned him from his town. The Transport Secretary has become an international embarrassment. The Prime Minister is the only person in the country who retains confidence in this failing Transport Secretary, and she does so only because of her own political weakness. The public deserve to know: how many more calamities is the Prime Minister prepared to tolerate? How many more billions of pounds will she allow him to waste before saying, “Enough is enough”? This country cannot afford this Transport Secretary. He should be sacked without delay."

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