No-deal Brexit ferry company which owns no ships is a 'start-up' business, Chris Grayling admits

Jacob Jarvis2 January 2019
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The transport secretary has described a ferry company that will receive a multi-million pound contract in the event of a no-deal Brexit as a "start-up business".

The Government has faced a backlash for awarding the £13.8m contract to Seaborne Freight after a Tory councillor in Ramsgate told the BBC it has "no ships and no trading history".

Chris Grayling said the Government looked “carefully” at taking on the services of Seaborne Freight, which has never run a service over the Channel, in the event of a no-deal.

The business would carry goods between Britain and mainland Europe if the former leaves the bloc without an agreement, as part of a £13.8million agreement.

Mr Grayling, speaking to Radio 4 Today, defended the decision following a raft of criticism.

The ferry contract for Ramsgate is supposed to ease the pressure on Dover
Adrian Dennis/AFP/Getty Images

He said: "It's a new start-up business, Government is supporting new business and there is nothing wrong with that.

"We have looked very carefully at this business and have put in place a tight contract that makes sure they can deliver for us.

"I make no apologies for supporting a new British business."

Seaborne Freight would run a route between Ramsgate and Ostend in Belgium, beginning at the end of March should there be no Brexit agreement between the UK and the EU27.

It was awarded the contract as one of three deals worth a total of £108 million contracts last week, creating additional crossings to ease the pressure on Dover.

Lorries queued on the A20 in Dover, Kent
PA Archive/PA Images

Seaborne was established two years ago but currently has no services running.

Mr Grayling added: "This has been looked at very carefully by a team of civil servants who have done due diligence.

"We believe they are on track to run services from April, yes."

The Department for Transport previously said "the extra capacity and vessels would be provided as part of its first services".

"As with all contracts, we carefully vetted the company's commercial, technical and financial position in detail before making the award," it said, according to the BBC.

A general view of the harbour in Ramsgate, Kent
Gareth Fuller/PA

This came after numerous detractors questioned how a proper process had been carried out to decide upon the contract.

Paul Messenger, a councillor for Ramsgate, questioned whether the government had carried out sufficient checks on the firm.

He told the BBC: "It has no ships and no trading history so how can due diligence be done?"

While Labour MP Tonia Antoniazzi, a supporter of the Best for Britain campaign for a second referendum, also lambasted the plans.

She said: "Never has it been clearer that our Government is selling us down the river over Brexit. A firm that has never run a ferry service before has been awarded a multi-million pound contract and they don't even have any ships."

"We know our ports aren't ready for a no-deal disaster, but is hiring a firm that's never dealt with this kind of thing before really going to help? This idea should have been sunk before it saw the light of day."

The new preparations come as MPs prepare to vote on Theresa May's much-maligned Brexit deal.

The vote, which was delayed in December, will allow Parliament to decide on whether to back the agreement confirmed with the European Union.

Should they not, numerous politicians including the Prime Minister herself have touted the potential that there could be no-deal, with EU figures repeatedly stating there will be no more negotiations.

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