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Fears Jersey "under pressure" while ferry bidder finances remain unclear

Fears Jersey

Thursday 31 October 2024

Fears Jersey "under pressure" while ferry bidder finances remain unclear

Thursday 31 October 2024


Jersey’s Economic Development Minister has stressed that the Government wants to avoid a deal that “could end up placing risk on Jersey taxpayers” after Guernsey unilaterally confirmed Brittany Ferries as its preferred bidder for the lifeline sea links contract – sparking fears Jersey will have to make a decision "under duress".

Guernsey – which jointly purchased a new ferry with Condor and loaned the company £26m to prevent an undisclosed "potential emergency" occurring last year – said last night that it had taken the decision to "push ahead alone" with Condor's new owner to "provide certainty for island residents and businesses".

Jersey's Government, which only saw the announcement at the same time as the public and media, responded shortly after, saying it had "further questions" for the two frontrunners and would be seeking urgent meetings today.

Ministers seeking to avoid "placing risk on Jersey taxpayers"

Express understands that some of the clarifications being sought relate to financial stability of the providers.

Economic Development Minister Kirsten Morel would not confirm exact details of the information requested, but told Express last night: “The procurement process is designed to deliver resilient and stable ferry services to the islands for the next 15 years. 

"It's really important that we understand the risks associated with all the bids and whether they will be able to deliver those services for the full 15-year period. 

“We do not want an outcome that could end up placing risk on Jersey taxpayers.

“The Council of Ministers agreed today that we need more information, which is why we’re reaching out to both bidders to receive clarifications.”

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

Condor Ferries suffered a £1.4m loss between March 2022 and March 2023, and Express recently revealed how accounts for the investment company under which the ferry firm sits said that its future is contingent on whether the company wins the tender. The impact of serving a single island remains unclear.

It is also unclear whether DFDS – the other frontrunner – would be willing to serve Jersey alone, given Guernsey's position.

"Making decisions under duress is not where we should be"

Some social media commentators described Jersey as having been left with a "gun to its head".

Deputy Inna Gardiner, Chair of the Public Accounts Committee, said she recognised that "signing a contract with Brittany Ferries/Condor will allow seamless continuation of the service", but stressed that "making decisions under duress is not where we should be".

She told Express it was of "great concern that Jersey is now in a compromised position and might be pressured to sign a ferry contract users will regret for the next 15 years. Evidence-based decision making is required here, not expedient compromises."

She also questioned whether Condor would be profitable serving Guernsey alone, "which also brings into question the financial stability and resilience of the ferry service we may choose".

gardiner.jpg

Pictured: Deputy Inna Gardiner said Jersey must not be pressured over such a significant decision.

Noting that Scrutiny members had not been made privy to the full detail of negotiations, Deputy Gardiner said she "cannot say which company will be best to serve the island, as I don't have the data", but stressed that the Scrutiny wants to see a decision taken based on evidence "and not because Guernsey chose first and we didn't have a choice".

"We do not want to choose a ferry company we may have to support financially going forward," the Chair of the panel responsible for scrutinising spending and good governance added.

Jersey's Chamber of Commerce CEO Murray Norton said last night that local business leaders want the "best deal for Jersey", including "the best equipped vessels and best financial stability for now and the next 15 years".

Christophe Mathieu, CEO of Brittany Ferries and Condor Ferries, struck a confident note last night.

"As we have maintained from the beginning, we have the right ships, the right schedule and experience to support the Bailiwick in the long term. We also look forward to the Government of Jersey joining us in this initiative. With over 70 years of providing freight and passenger services to Guernsey and Jersey, collaborating will allow us to optimise the schedule for the benefit of both islands," Mr Mathieu said.

Guernsey's Economic Development President Neil Inder said last night that an arrangement will be put in place which "leaves the door open for Jersey if Jersey does decide to seek a different approach".

"Failure" in the tender process...?

Deputy Inder maintained that the outcome was not a "failure of the tender process".

But Deputy Gardiner disagreed, and said the "failure in our tendering process was avoidable".

She said it was "clear" that there "is a big problem with communication between Guernsey and Jersey on all levels, despite what we were told previously" and questioned why Ministers still did not have all the required information from bidders when the process was due to have concluded at the end of September.

"Jersey's Government has a long history of having difficulty in the decision-making process, governance and accountability whilst dealing with major projects and contracts. The recommendations from Scrutiny, the Public Accounts Committee and the Comptroller and Auditor General have made in numerous reports over the decade has clearly fallen on deaf ears," she said.

"This is a symptom of an underlying problem which we will need to address and does not bode well for future tenders.

"I can't stress enough how important it is that a choice is made to provide sustainable, reliable and secure ferry services to the island based on hard evidence and not because Ministers are put under pressure from the various stakeholders involved in this process.

"I truly hope that the Council of Ministers will find a way to resolve this situation with Guernsey and the ferry companies without compromising the service for the next 15 years."

WHAT THE PUBLIC SAID...

The shock announcement last night sparked significant reaction and debate on social media, particularly among members of the 10,500-member-strong Condor Ferries Users' Group on Facebook":

"Jersey call your choice and let us get this done for crying out loud. No one can plan for next year. Tourism in limbo. Say what it is get it done." - Chris Murray

"This has now become farcical, I'm sure everyone assumed it would be a joint statement from both Islands as to the preferred operator. Given Guernsey has now indicated their preference independently one must assume Jersey wished for one of the other two. There is obviously not sufficient capacity for two operators so where do we go from here. Who has the casting vote, another complete shambles." - Arthur Falla

"Guernsey and Jersey have a terrible track record of working together in the best interests of the Channel Islands." – Jsyguy

"I for one am thankful to Deputy Inder for announcing this. It brings it to a head. We have to plan for next year." – Chris Murray

"There surely cannot be enough traffic to justify separate routes! Come on, sort yourselves out!" Richard Buchanan (former Constable of St Ouen).

"...This makes the infamous poll on here pale into significance." - James Morris

Follow Express for updates...

READ MORE...

Jersey calls for answers as Guernsey goes it alone with Brittany Ferries

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WATCH: "This was a blunder, it was not bias”

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