“Brittany Ferries had the boats” - slim margins helped decide the ferry contract

Friday 01 November 2024

A choice between Brittany Ferries and rival bidder DFDS came down to extremely fine margins, Economic Development President Neil Inder has indicated.

As Jersey continued frantic talks with politicians there still to make up their minds about who to award the ferry contract to after 10 months of negotiations, Deputy Inder spoke about some of the factors that made him so sure Guernsey had got it right having already announced Brittany Ferries as its pick.

Jersey are expected to make a decision today with their Economic Development Minister Kirsten Morel having told other States members that they needed to be satisfied that the company that delivers the service is "financially sustainable and able to invest in a new decarbonised fleet, without placing excessive risk on the people of Jersey".

Deputy Inder said that the two bids had been quite level, with weaknesses and strengths in both.

"What was absolutely clear is that Brittany Ferries was a big brand. It was now underpinning what was the old Condor problem which existed. So that helped."

He added that DFDS was also a solid company.

"Really a lot of it was down to the mobilisation of the fleet. The fleet actually exists. DFDS didn't have a fleet that it could mobilise. If the choices are so close, and you've got to look for other reasons as well, and the other reason was 'they've got boats, you haven't'."

A spokesperson for DFDS said yesterday that the company was absorbing the news about the Guernsey announcement and its implications. They added that, at this stage, they could not comment further, particularly as the Jersey process remains active.

Deputy Inder said he would not engage in a conversation about whether Jersey had done something right or wrong when asked about why he was so happy with the financial and contractual information when Jersey was not so far.

He stressed that professional States advisers with procurement, legal and financial expertise all gave the same message that Brittany Ferries was the correct choice for the island when the committee discussed its presentation.

Brittany Ferries will provide the island's freight and passenger services, using its management and infrastructure as well as deploying Condor's current fleet.

The company had a turnover of approximately €450m in 2023, operating nine vessels with 2,500 employees, and is the majority shareholder in Condor

Guernsey has strong financial links with Condor after loaning it £26m. while also investing another £3m. in April 2023 to buy what is now the Condor Islander.

Pictured: The Condor Islander leaves St Peter Port after berthing trials.

Deputy Inder stressed he believed that taxpayers money was safe under the new deal.

He had a phone conversation with Deputy Morel before making the announcement.

There are no solid plans in place about inter-island travel should Jersey pick DFDS.

"Ideally for us, Jersey would make the decision and join us with the Brittany Ferries proposition. That may not happen, but very quickly after that, once they've made their decision, we've got to come back sensibly, like adults, and politically, and deal with the Guernsey/Jersey links, and I've had assurances from Deputy Morel that will happen."

It was always a part of the contract that the two islands could diverge at any point in their decision: "someone always had to go first," Deputy Inder said.

Further talks need to take place as part of the pre-contract negotiations about aspects like service frequency, freight and passenger costs.

"There are bits of negotiation that have to happen over the next few weeks," said Deputy Inder.

"But the great news is those boats are still travelling between the islands, and we are delivering on Jersey's operating agreement. That's what we're doing."

He was sure that both islands went into the contract talks with openness and the right intent.

Pictured: Jersey's Economic Development Minister Kirsten Morel.

"I'm absolutely certain both the Guernsey and the Jersey evaluators have done the right thing and have come to very similar conclusions, where the percentage gaps are ultimately political. It was a political decision of Guernsey to make its decision, and it will be a political decision for Jersey to make its own decision."

It was not a "massive rift" between the islands, he said.

"It looks like a big split between Guernsey and Jersey, but it's not at all."

There has been no sign of political dissent about the announcement in Guernsey.

Policy & Resources had been kept informed about the decision making process, as had the States Trading and Supervisory Board which has responsibility for the harbours and Environment & Infrastructure, which is responsible for the supply chain.

"There's been no great reveal, but that's what an experienced parliamentarian would normally do."

He said he had full support from P&R, the STSB president Peter Roffey and the E&I president Lindsay de Sausmarez.

Pictured top: Economic Development Minister Neil Inder.