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Jersey and Guernsey to have "equal say" in ferry contract discussions

Jersey and Guernsey to have

Tuesday 10 September 2024

Jersey and Guernsey to have "equal say" in ferry contract discussions

Tuesday 10 September 2024


An agreement is in place to ensure Jersey and Guernsey have an "entirely equal say" on the islands' new passenger and freight ferry provider – which is expected to be revealed next month.

Jersey's Economic Development Minister Kirsten Morel said this morning that the winner of the procurement process, which saw Jersey and Guernsey invite bids from qualified firms earlier this year, is expected to be announced in October.

So far three major ferry operators have been reported to have put themselves forward to win the tender, including the incumbent Condor Ferries whose current agreement is due to end in 2025.

Danish shipping giant DFDS confirmed its intention to secure the contract in April, while it is understood that Irish Ferries has also submitted a bid.

During this morning's States sitting, Deputy Tom Coles asked for an update on the procurement process and when the Assembly could expect to be informed of who has been awarded the contract.

DFDS.jpg

Pictured: DFDS vice-president Filip Werne Hermann at an open meeting in Jersey in April having confirmed the operator's intention to win the contract.

Deputy Morel responded: "As members are likely to be aware, there has been competitive interest in providing future sea connectivity under a combined contractual arrangement with the governments of Jersey and Guernsey.

"While securing the right outcome carries a very high political priority, the work is lead and undertaken by officials who will make an objective, evidence-based recommendation to me and my counterpart in Guernsey for final political approval in October."

He added: "I currently expect to be in a position to inform members and the public of the successful bidder during October."

Deputy Morel also said there had been "no delays" throughout the tender process.

"This is an entirely 50/50 experience"

Following further questions from Deputy Montfort Tadier and Deputy Jonathan Renouf, Deputy Morel explained that his "counterpart" in Guernsey was the President of the Committee for Economic Development, Deputy Neil Inder – and that there was a memorandum of understanding "as to how we will work in the event of disagreement".

Kirsten_Morel_outside.jpg

Pictured: Jersey's Economic Development Minister Kirsten Morel said a decision on the tender process was expected in October.

Deputy Morel added: "Part of that agreement is obviously for both parties, both islands, to work together in very good faith to ensure that we do come to an agreement at the end of it."

He also confirmed that the islands will have an "entirely equal" say within the discussions.

"This is an entirely 50/50 experience, so to speak."

Such an agreement may provide reassurance to islanders on both sides after previous concerns over a lack of communication over the direction of Condor. 

Back in 2022, Guernsey taxpayers helped with the purchase of a roll-on roll-off ferry, the Islander, with millions also lent to help keep the operator afloat.

However, Jersey was blindsided by the purchase – with Jersey's then-Economic Development Minister and current Chief Minister describing the announcement as "unexpected" despite the two islands having pledged to work "closely" together.

Islander_and_voyager.jpg

Pictured: The States of Guernsey helped fund Condor's purchase of Islander.

Today, Deputy Coles also asked about priority areas outlined during the procurement process, to which Deputy Morel replied: "Our priorities were around reliability, frequency, future fleet investment, strengthening the southern supply route and also operating times that work for islanders – so it's a much more customer-centric perspective."

He added: "How different organisations respond to each criteria is entirely up to them," explaining that there was "a balance to be struck" between "being prescriptive" and "not wanting to stifle innovation".

Express recently revealed how the future of Condor Ferries appears to be contingent on whether the company wins the tender.

Accounts of Condor UK Holdings Limited – the investment company under which Condor Ferries sits – were filed with Companies House last month.

The reports state that winning the tender from March 2025 onwards is "fundamental" to the operations of the company and the wider group.

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