Chris Grayling defends handing no deal Brexit ferry contract to Seaborne Freight - the firm with no ships

James Morris11 February 2019
WEST END FINAL

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Transport secretary Chris Grayling has defended the government’s decision to hand a £13.8million Brexit ferry contract to a company with no ships, saying “not a penny” of taxpayers’ money went to the firm.

The under-fire transport secretary’s Labour counterpart Andy McDonald said Mr Grayling’s performance was “off the Richter scale of incompetence” and demanded he resign in an exchange in the House of Commons this afternoon.

Mr Grayling took to the Commons despatch box on Monday to defend awarding the contract to Seaborne Freight to run services between Ramsgate and Ostend in the event of a no deal Brexit.

The contract was cancelled on Saturday after an outside company, which had promised to purchase ships for Seaborne, backed out.

Chris Grayling answers questions in the House of Commons
PA

Mr Grayling told the Commons: “Seaborne’s proposition to the department was backed by Arklow Shipping, Ireland’s biggest and one of Europe’s largest shipping companies. Their support for the proposition from the outset… provided confidence in the viability of this deal.

“Arklow confirmed to me that they intended to finance the purchase of ships and would be major shareholders in Seaborne.”

Mr Grayling continued: “My department monitored closely the progress of Seaborne towards meeting its contractual commitments. By last week the company had secured firm options on ships to operate on the route.

“However, late last week, despite previous assurances, Arklow suddenly and unexpectedly withdrew their backing in Seaborne.”

One member of the opposition benches shouted: “I’m not surprised!”

“In light of this,” Mr Grayling pressed on, “I took the decision to terminate this contract.

“As I have repeatedly clear, not a penny of taxpayers’ money has gone or will go to Seaborne.”

He added the government’s similar contracts with Brittany Ferries and DFDS “remained on track”.

Chris Grayling answers questions in the House of Commons about Seaborne Freight
PA

Shadow transport secretary Andy McDonald retorted: “He simply can’t keep blaming others for his own mistakes. This disastrous decision sits squarely with him and his office.

“This transports secretary’s approach to transport and wider Brexit contingency planning is off the Richter scale of incompetence.

“For the good of the nation and the sake of some resemblance of faith being restored to this shambolic government, shouldn’t he now at long last do the decent thing, and go?”

Mr Grayling replied to his Labour counterpart: "I have to say that he brings a new meaning to the words utter hogwash.

"He clearly wasn't listening when I said we've spent no money on this contract."

Theresa May’s official spokesman said on Monday that the Prime Minister “continues to have full confidence” in Mr Grayling.

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