Government pressed on no-deal ferry contracts

This follows reports that the Department for Transport has cancelled ferry contracts intended to ensure that key imports could continue in the case of a no-deal Brexit.

The Government's handling of no-deal ferry contracts was previously criticised after a contract was awarded to a company - Seaborne Freight - with no ships, which was later cancelled.

Responding for the Government, Transport Secretary Chris Grayling told the House,

"Following the Article 50 extension until the 31st of October, the Government has now decided to terminate the current contracts with Brittany Ferries and DFDS with immediate effect to minimise the cost to taxpayers. The termination of those contracts cost £43.8 million. That's lower than the [National Audit Office]'s estimate of the total termination costs. [...] That represents around 1% of the overall £4bn package of no-deal EU exit preparations which this Government has wisely taken to ensure we are ready for all eventualities."

Brown used his urgent question to press further on the accountability for the issue and said:

"The Minister said earlier on that this £43mn cancellation of the ferry contract is only 1% of the Brexit preparation costs, as if it doesn't matter. In actual fact, these ferry contracts overall are going to cost probably up to £120mn depending on the P&O settlement. So when does somebody become accountable for this waste of money?"

• Watch Parliament TV: Urgent question on cross-channel ferries and freight
• Read Commons Hansard: Urgent question on cross-channel ferries and freight

Image: Bill Boaden, Geograph

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