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The CCA has bemoaned its ability to share details of a recent decision to empower Policy & Resources to help Condor buy a ferry.
P&R has loaned Condor £26million to bolster £6million in joint equity from the States and Condor to buy the long-mooted MV Straitsman. The ferry was originally meant to be bought through the Guernsey Investment Fund (GIF) but after that deal fell through the Civil Contingencies Authority was convened to expediate an alternative funding agreement.
The CCA was required because there was a potential critical risk to the island’s supply chain if the deal wasn’t completed. The exact nature of this ‘critical risk’ has since been questioned and the CCA has released a statement explaining its position.
“There is now no immediate or imminent risk to our supply chain,” said the CCA.
“The Authority met to consider a critical matter that was time-sensitive, and therefore required the use of the CCA's powers to ensure appropriate action was taken promptly to mitigate as far as possible an emergency situation from arising. The mitigating action involved securing the purchase of a vessel, but to be absolutely clear, the CCA’s mandate was engaged because of the critical risk to the Bailiwick’s supply chain that would have very likely arisen had this particular vessel not been purchased at this particular point in time.
"In other words, from the CCA’s perspective, the purchase of the vessel was not an end in itself: it was the means to avert a potential emergency, specifically and uniquely related to the Bailiwick of Guernsey, that was likely to arise as a consequence of that purchase not taking place. There was a high degree of confidence in the Authority and among its advisors that this risk would have materialised had the vessel not been purchased in the timeframe available.
“Much to its frustration, the CCA cannot explain the specific details of this risk at this point in time due to the sensitivity of the information (which includes sensitive commercial and – importantly – non-commercial information), but islanders can take assurance from the fact that the Authority’s emergency powers could not have been invoked had the situation simply been about P&R buying a ferry. There are rigorous tests that have to be satisfied to justify the use of emergency powers, and these tests were met in more ways than one.
“The CCA’s interest in this matter extends only as far as safeguarding critical supply lines. The previously announced approach, where Condor was working with the Guernsey Investment Fund, would have achieved the same outcome had it been possible to progress the deal as previously arranged to completion, however it wasn’t. This, combined with sensitive information the Authority was made aware of, catalysed the need for the CCA’s involvement.”
The CCA said it was satisfied that purchasing the vessel at this specific time was “essential and satisfied the need to act to prevent a potential emergency occurring in accordance with the Civil Contingenecies (Guernsey) Law 2012”.
Additionally, Express asked several questions of P&R following the announcement that £26million would be lent from the States Bond to Condor.
Previously the President of Policy & Resources, Deputy Peter Ferbrache, said any purchase of a new ferry would involve Jersey, within this context we asked what kind of conversations have been had with the government of Jersey.
Furthermore, the GIF should operate at arm's length from government and its unclear how conversations between the Fund and P&R have occurred. Express asked about the nature of these conversations.
Finally, if the purchase of Condor is now being done through a loan and not through an opaque financial vehicle like GIF there should be a service level agreement outlining the exact nature of the return and risk for the States of Guernsey.
P&R chose not to reply on the above.
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