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Guernsey's newly contracted ferry provider could lose access to key St Peter Port harbour facilities if Condor's debt arrangements aren’t kept up.
That’s according to the President of the States Trading and Supervisory Board, after his board faced accusations of being “nonchalant” over the amount of debt the previous iteration of Condor Ferries had accrued.
Deputy Neil Inder made the claim during the a Scrutiny hearing earlier this week, when he said that he “was genuinely surprised at the amount of debt that was allowed to carry on at the STSB level without it ever being raised”.
The President of Economic Development told, anecdotally, how he and his Jersey counterpart, Deputy Kirsten Morel, had written to Condor Ferries, before the Brittany Ferries take over, telling it to clear the debt.
During Monday’s Scrutiny hearing, Deputy Inder asked: “How on earth did we ever get the island to this point, where we effectively become a credit line for any supplier? I was genuinely surprised at the amount of debt that was allowed to carry on at STSB level without it ever being raised, and they were quite nonchalant about it.
“I think there's a greater question over how each of our governments manages its debt.”
Pictured: Deputies and Civil Servants representing Economic Development had to field questions from the States Scrutiny Management Committee on Monday.
It was one of many interesting twists and turns to emerge from the meeting, which aimed to pry open the dealings with both Brittany and DFDS, and the process of picking a ferry operator to service the Channel Islands, before that collapsed into the separate service agreements that are now in place.
You can read more about the unsolved inter-island links HERE, the passing of financial tests by both providers HERE, and some of the contract details, like the break clause that could be triggered to cut the contract five years earlier than planned, HERE.
Following the Scrutiny hearing, STSB provided Express with a statement, penned by Deputy Peter Roffey.
“Guernsey Ports has numerous customers, and it would not be appropriate to discuss the individual credit arrangements in place for specific companies," he wrote.
“More generally, if companies are in breach of existing credit arrangements, then appropriate steps will be considered. This could include the restriction of access to port facilities until outstanding balances are cleared, instigation of legal proceedings to recover debt, or, in extreme cases, actions to impound or seize assets.”
Although the specific amount can’t be highlighted, we do know the amount of debt accrued at Guernsey Ports last year was over £3.5 Million. Whilst 2022 saw £1.5m and 2021 £3.4m.
STSB says that should payments by any of those companies that contributed to the debt not be kept up, then the services they’re using will be kept under lock and key, although with the necessity of the links, routes and services provided, it wouldn’t be a decision for the States body alone.
“Where companies are supporting essential supply chains and transport links, a key consideration in seeking any debt recovery would be the continuity of essential services," wrote Deputy Roffey. "Decisions in that regard are therefore not taken by STSB in isolation, but through consultation with the Policy & Resources Committee and other relevant States Committees.
“STSB is not nonchalant and takes its responsibilities in respect of debtors and debt management extremely seriously.”
Brittany Ferries "very comfortable" with debt structure for Condor
Talks have taken place between Jersey's government and the banks lending money to Brittany Ferries
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