P&O Ferries sues government over Eurotunnel handout
P&O Ferries is suing the government in the latest twist to the long-running saga over the Department for Transport’s attempt to secure extra freight capacity to the Continent if Britain leaves the European Union without a deal.
The DfT awarded Brittany Ferries, DFDS and Seaborne Freight contracts worth more than £100 million to guarantee additional sailings between the UK and Europe.
However, in February, the DfT was forced to cancel the contract with Seaborne after the start-up company’s financial backers pulled out.
Then in March it was forced to hand Eurotunnel £33 million in an out of court settlement after the train operator challenged the way in which the DfT had awarded the contracts without giving it a chance to bid.
Eurotunnel argued that it should have been invited to pitch as it had previously run a cross-Channel ferry service, unlike Seaborne which didn’t even have any ships.
Now P&O Ferries, which didn’t bid for the DfT’s Brexit ferry contracts, is suing the department over the £33 million Eurotunnel hand-out, claiming it puts its business at a ‘competitive disadvantage’, said the BBC.
In a statement, P&O said: "We have repeatedly made clear during decades of providing vital transport services between Britain and the Continent that we are happy to compete with other providers on a level playing field.
"We also fully accept that it was prudent of the government to make contingency plans to protect international supply chains in the event of a hard Brexit.
"However, we do not believe that the payment of £33m of public money to Eurotunnel to settle its legal challenge to these plans is fair or reasonable.
"It is explicitly designed to be invested in the tunnel’s infrastructure and if left unchallenged would put our services at a competitive disadvantage."
A government spokeswoman said: "We are confident we acted appropriately in reaching the agreement with Eurotunnel."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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