British Govt to cancel contracts for ferry services in the case of a no-deal Brexit

British Govt to cancel contracts for ferry services in the case of a no-deal Brexit
The UK's Transport Secretary Chris Grayling.

The UK is to cancel all the contracts for ferry services to be provided in the case of a no-deal Brexit.

The country's Department for Transport is to cancel the contracts at a cost to the department of around £50m (€58m), a source has said.

Transport Secretary Chris Grayling awarded contracts worth a total of more than £100m (€116m) to three firms - Brittany Ferries, DFDS and Seaborne Freight - to run extra services from ports on England's south coast including Plymouth, Poole and Portsmouth to ease pressure on the main Dover-Calais route.

After the expected March 29 date of EU withdrawal was delayed, first to April 12 and now October 31, the new services were not required.

The UK's National Audit Office estimated in February that the maximum cost of compensation to ferry operators if contracts were terminated would be £56.6m (€65.6m), but a Whitehall source said the actual figure was expected to be around 10% lower.

Seaborne's contract to provide sailings from Ramsgate was scrapped in February after an Irish company backing the deal pulled out.

The announcement that the remaining contracts are now to be torn up is likely to fuel speculation that the Government no longer believes a no-deal Brexit might happen.

More on this topic

Varadkar and Johnson to hold phone call ahead of G7 summitVaradkar and Johnson to hold phone call ahead of G7 summit

Clarke ‘wouldn’t object’ to leading national unity government to avoid no-dealClarke ‘wouldn’t object’ to leading national unity government to avoid no-deal

Howlin: Sinn Féin's refusal to oppose no-deal Brexit in British parliament 'infuriating'Howlin: Sinn Féin's refusal to oppose no-deal Brexit in British parliament 'infuriating'

Brexit hits UK grocer AsdaBrexit hits UK grocer Asda

More in this Section

English mother who drowned young twins in bath locked up for 10 yearsEnglish mother who drowned young twins in bath locked up for 10 years

Bomb attack causes death and injury in Pakistan mosqueBomb attack causes death and injury in Pakistan mosque

US congresswoman decides against West Bank visit citing ‘oppressive conditions’US congresswoman decides against West Bank visit citing ‘oppressive conditions’

Hero pilot says landing in Russian cornfield ‘was only hope’ after birds hit plane enginesHero pilot says landing in Russian cornfield ‘was only hope’ after birds hit plane engines


Lifestyle

Italy is a volatile place as you probably know, not just the passions of its people but is a place of active volcanos and frequent earthquakes. One of the most devastating earthquakes in recent years was the one that struck the Amatrice region in 2016.Wine with Leslie Williams: Some tasty Italian selections

It’s confirmed, being a dog owner is good for you. Esther McCarthy spoke to four celebrities about pride in their pooches.Animal magnetism: Celebrities and their treasured pets

We recently began watching a new sitcom called, ‘The Kids Are Alright’. It follows an American family in the early seventies as they raise eight sons.Lindsay Woods: I’m a dormant individual by nature but my children are adrenaline junkies

Rosscarbery antiques fair offers plenty of variety, writes Des O’Sullivan.See the value of rare notes and diamonds

More From The Irish Examiner