In April 2023, Condor and the States of Guernsey both invested £3m. in a joint venture to purchase the Condor Islander, and receive a commercial return from the ferry operator.
The States also made a loan from the bond of £26m. which was due to be repayable at a fixed rate of interest over 10 years.
The ferry was at that time being operated in New Zealand.
Controversially, the States had used emergency powers to proceed with the transaction.
The Guernsey Press asked the States whether any details of the loan have been changed since it was taken out three years ago, and whether there have been any changes in the agreement following Brittany Ferries’ acquisition of a majority stake in Condor Ferries in 2024, and gradual phasing out of the company’s name.
‘I understand that the previous Policy & Resources Committee decided to extend the repayment period by seven-and-a-half years, as part of wider discussions with Brittany Ferries about the services it would offer the island as its primary ferry operator,’ said P&R vice-president Gavin St Pier.
‘I believe the loan extension supported Brittany Ferries as it began this new era, while ensuring taxpayers continued to get a good return on their investment.
‘I was not on the committee at the time but it would seem the decision was intended to have been mutually beneficial.’
Condor said in the aftermath of the deal that it could have secured bank funding for the purchase but chose to work with the States.
Despite the financial support there was no preferential treatment for the island in terms of routes and schedules when Condor was serving both Guernsey and Jersey, and no oversight in day-to-day operations.
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