DFDS ‘failed to commit on schedules and ticket prices’

Economic Development president Neil Inder revealed yesterday that the Danish firm wanted the right to make unilateral changes to a proposed 15-year contract with Guernsey and Jersey if the routes proved less profitable than hoped.

He also quashed rumours that Condor/Brittany Ferries would require taxpayers’ money to run a Guernsey-only service, which it is understood to be days away from finalising, after Jersey refused to reappoint the incumbent operator over concern about its finances and instead opened a new tender process.

‘DFDS introduced a number of commercial levers, in fact derogations, in the event that its profit requirements were not achieved,’ said Deputy Inder.

‘These levers included introducing a unilateral right for the operator to adjust freight and passenger pricing, the sailing schedule and minimum service requirements.

‘All the risk transfer from the DFDS bid was straight onto the people of the Channel Islands.’

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More information finally emerged about the collapse of the Channel Islands’ joint tender process when Bailiff Sir Richard McMahon allowed Deputy Gavin St Pier to ask Deputy Inder an urgent question in the States Assembly.

That prompted numerous supplementary questions, as other deputies publicly showed an interest in the issue for the first time, weeks after it started dominating the political agenda in Jersey.

Deputy Inder admitted there would be some flexibility in Guernsey’s contract with Condor/Brittany Ferries, but insisted it would protect the island better than the deal DFDS was after.

‘There has to be some flex in things like change in prices and fuels and labour markets,’ he said.

‘What they don’t have is a unilateral derogation to change the schedule, change passenger pricing or adjust the minimum service requirement, which is what DFDS was effectively offering.’

Deputy Inder rebutted claims made by his Jersey counterpart, Deputy Kirsten Morel, that Guernsey had announced it was backing the Condor/Brittany Ferries bid prematurely, and agreed with Policy & Resources that several attempts were made to agree a joint position.

Deputy Inder three times called on the Scrutiny Management Committee to organise a public hearing about the months-long tender process and next steps.

Scrutiny president Yvonne Burford said afterwards that she was unhappy that Deputy Inder declined to make a statement in the Assembly, which would have provided other members with more notice and a formal period for questions of at least 15 minutes.

‘I am disappointed and perplexed that Deputy Inder did not choose to seek leave to make a statement in the Assembly, which would have enabled him to set out full details on the matters surrounding the ferry tender, line by line,’ said Deputy Burford.

‘This would also have allowed all of the other 39 members of the Assembly to ask him questions.

‘Should we still be sitting on Thursday, I hope he will seek leave to make such a statement, after which, should the Scrutiny Committee still feel matters are outstanding, we will consider what further action is needed.’

A schedule of sailings for a Guernsey-only service is expected to be released any day.