Sunday, March 17, 2019
More failing by Grayling
Just when you think that Chris Grayling could not dig himself into a deeper hole it transpires that the botched contracts he put in place to help the country ferry in vital goods in the case of a no-deal Brexit could cost almost £30m more if the UK’s departure from the EU is delayed.
The Independent reports say that the deals that were set up to take account of a potential no-deal exit on 29 March could see firms receive compensation for expenses incurred and may also cost more if the departure date alters, creating extra work:
The controversial ferry process put in place by the Department for Transport had already seen a row over the collapse of one contract with Seaborne Freight, which had no ferries, and a £33m out-of-court settlement with Eurotunnel.
On Saturday, The Financial Times reported the cost of a delay to Brexit could amount to a further £28m in relation to the contracts.
Brittany Ferries, which has contracts worth £46.6m under the deal, said the terms “included fair and proportionate compensation in a deal scenario, taking account of the significant preparatory work and concomitant costs incurred by Brittany Ferries”.
It said the firm had already “incurred a series of direct costs and resource commitments” and “the new schedule cannot now be changed, even as an extension to Article 50 seems likely”.
Additional staff had been employed and more than 20,000 existing bookings had been changed, the firm noted.
Thank goodness Grayling is not also negotiating with the European Union.
The Independent reports say that the deals that were set up to take account of a potential no-deal exit on 29 March could see firms receive compensation for expenses incurred and may also cost more if the departure date alters, creating extra work:
The controversial ferry process put in place by the Department for Transport had already seen a row over the collapse of one contract with Seaborne Freight, which had no ferries, and a £33m out-of-court settlement with Eurotunnel.
On Saturday, The Financial Times reported the cost of a delay to Brexit could amount to a further £28m in relation to the contracts.
Brittany Ferries, which has contracts worth £46.6m under the deal, said the terms “included fair and proportionate compensation in a deal scenario, taking account of the significant preparatory work and concomitant costs incurred by Brittany Ferries”.
It said the firm had already “incurred a series of direct costs and resource commitments” and “the new schedule cannot now be changed, even as an extension to Article 50 seems likely”.
Additional staff had been employed and more than 20,000 existing bookings had been changed, the firm noted.
Thank goodness Grayling is not also negotiating with the European Union.
