Oral Answers to Questions Debate

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Department: Department for Transport

Oral Answers to Questions

Andy McDonald Excerpts
Thursday 10th January 2019

(5 years, 2 months ago)

Commons Chamber
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Chris Grayling Portrait Chris Grayling
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This is why 90% of the new contracts are with DFDS and Brittany Ferries. As I said, I am disappointed that the Scottish National party does not welcome the DFDS contract that will provide additional routes from east coast ports to northern Europe, which will be beneficial to Scottish business.

Andy McDonald Portrait Andy McDonald (Middlesbrough) (Lab)
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Putting to one side the ridiculous and desperate allegations of the Secretary of State that Labour is anti-business and his banal allegations over Brexit, I point out that the Seaborne fiasco lays bare his total incompetence and the complete failure of due diligence. Before granting the ferry contract, was he aware of the debt or the promissory note between Ben Sharp, now Seaborne’s CEO, and Mid-Gulf Offshore, acknowledging Sharp’s indebtedness to that company of over $1 million, which remains unpaid?

Chris Grayling Portrait Chris Grayling
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That clearly got under the hon. Gentleman’s skin because he really does not like Government supporting new start-up businesses. The reality is, as I said earlier this week, that due diligence on this contract was done by Slaughter and May, Deloitte and Mott MacDonald, as he would expect, and off the back of that we formed a contract which we pay nothing for until the service is delivered.

Andy McDonald Portrait Andy McDonald
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Here’s another one the Secretary of State might not answer. As a result of this debacle, a variety of legal challenges to the Secretary of State may well flow from, among others, existing freight service providers with capacity. On Tuesday, he said that Seaborne will be able to run ferry services immediately, but on Wednesday the Government said that Seaborne will not be able to open the route between Ramsgate and Ostend until late April at the very earliest. Surely that puts Seaborne in default of its contract to deliver services from 29 March and the contract is therefore void. In those circumstances, should not he reverse his appalling judgment and cancel the contract without delay?

Chris Grayling Portrait Chris Grayling
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We will hold all the companies that have presented us with proposals to the terms of their contracts.