EU Exit Preparations: Ferry Contracts

Debate between Chris Grayling and David Hanson

Tuesday 5th March 2019 Commons Chamber

[Chris Grayling]

I will leave my right hon. Friend to make his point, because I do not want to start debating discussions within the Government.

The hon. Member for Kilmarnock and Loudoun asked why we started this procurement when we did. As I have said, we and the national health service had been preparing for disruption at the ports lasting approximately six weeks after exit day. However, based on the negotiations, on comments coming from Brussels and on what we saw happening on the other side of the channel, the analysts changed that assumption late last autumn and recommended that Government prepare for a longer period of disruption.

At that point, the Department of Health and Social Care rightly highlighted the fact that that would put significant pressures on their stockpiles of drugs. The Government therefore collectively decided following discussions in Cabinet Committees to go to the ferry industry to secure capacity to guarantee the delivery of drugs to this country in the event of a no-deal Brexit. That was a collective decision, and it was the right decision. We talked to all the current ferry operators working across the North sea and the English channel, plus any other operator with tangible plans to do so. That is where the procurement came from.

[David Hanson (Delyn) (Lab)]

Is this not the key question, however? Did the right hon. Gentleman have advice from his officials that negotiations solely with ferry companies would result in a legal challenge by Eurotunnel, which ultimately he has now paid off with a £33 million investment from taxpayers?

[Chris Grayling]

We knew, in accelerating the procurement process, that there was a legal risk. That has been highlighted in the NAO report. However, it was my judgment, the judgment of my accounting officer and the judgment of those who vetted the plan across the Government that that was a risk that we should take, given the need to ensure that we had a supply of drugs into the country in the event of a no-deal Brexit.

[David Hanson]

The right hon. Gentleman has said that there was a legal judgment that there was an element of risk. He took that risk, and his actions have therefore cost the state £33 million.

[Chris Grayling]

We took a collective decision, in the light of the legal advice, which was taken by me, by my accounting officer, and by those who approved this across the Government, and we did so—[Interruption.] We did so because we judged it important to ensure that we had a proper supply of drugs to the NHS in the event of a no-deal Brexit. I challenge Labour Members, as they chunter from the Front Bench, to say that they disagree with ensuring a supply of drugs to the UK in a no-deal Brexit.

Seaborne Freight

Debate between Chris Grayling and David Hanson

Monday 11th February 2019 Commons Chamber

[Chris Grayling]

We made provision in the contracts that we signed with Brittany Ferries and DFDS for additional capacity on other routes, that were not in our original mix. Those are options that we are free to take up and we will have cross-Government discussions in the next few days to assess current needs and forecasts and see whether that is required.

[David Hanson (Delyn) (Lab)]

The Secretary of State says that there are no costs to Government, so for the avoidance of any doubt, will he place in the Library the costs of any legal fees and the numbers and types of civil servants working on both the pre-work and the cancellation? Will he tell us the total cost of all that to the taxpayer?

[Chris Grayling]

My Department is accruing a bill of many, many millions of pounds, preparing for a no-deal Brexit in a whole variety of different areas—we are working on maritime, aviation and haulage—and I regularly answer questions about those amounts through written questions. I am also always happy to place information on those amounts in the Library of the House.

Seaborne Freight

Debate between Chris Grayling and David Hanson

Tuesday 8th January 2019 Commons Chamber

[Chris Grayling]

My hon. Friend is absolutely right; that is normal, and we do not actually do enough of it. The Government are frequently criticised for contracting only with big business and not with small business. Ironically, now we are contracting with small business for a small part of a package we need, we are getting criticised for it, so we cannot win either way.

[David Hanson (Delyn) (Lab)]

Further to the question asked by my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger), will the Secretary of State confirm that one director of this company owes £580,000 to HMRC from a previous failed administration? Will he say what due diligence was undertaken on that contract? Will he also tell us how we are going to repay that money to the Treasury?

[Chris Grayling]

I am not going to comment on individual tax affairs. All I am going to say is that due diligence was carried out into the participants in this business and no reason was found why they should not contract with Government.

Rail Update

Debate between Chris Grayling and David Hanson

Monday 5th February 2018 Commons Chamber

[Chris Grayling]

This is now very much my approach. My view is that if the service is really good, revenues will follow. While it is absolutely essential that one seeks to achieve best value for the taxpayer in a bidding process, there is already a different balance between the amount of money bid and quality, and the balance will continue to evolve towards quality. That is what matters to passengers, and what drives revenues.

[David Hanson (Delyn) (Lab)]

If the Secretary of State rushed, he would just about get the 6.10 from Euston to Flint in north Wales, and it would cost him £283 for a return ticket. In the next two years of the direct award franchise for the west coast main line, does he expect prices to stabilise, or indeed fall?

[Chris Grayling]

The right hon. Gentleman is an astute Member of the House, and I have no doubt that he would have bought an advance ticket for a fraction of the sum he mentioned. Really good value is available on the west coast main line, although for those who turn up at the last minute—as, indeed, is the case with airlines and many other forms of transport—there is a higher price to pay. I believe that since the passenger numbers on the west coast main line continue to rise and services continue to be rated good, the current operators must be doing something right.

Rail Update

Debate between Chris Grayling and David Hanson

Wednesday 29th November 2017 Commons Chamber

[Chris Grayling]

Kettering is a fine town and a well represented constituency, and I can absolutely understand the case that my hon. Friend and Kettering would make for its hosting the operating team. He is absolutely right that it is at the heart of the midland main line. It might have some competition from Derby and others, but he makes a strong case.

[David Hanson (Delyn) (Lab)]

The Chancellor of the Exchequer mentioned in the Budget last week the north Wales growth deal, which includes a proposal for a metro linking north Wales and the north-west of England much more effectively. Has the Secretary of State received a cheque from the Chancellor?

[Chris Grayling]

Actually, it was my suggestion that we look at the project. I have listened to the right hon. Gentleman and understood the argument, and the Chancellor has provided development funding so that we can take that work forward.