Prime Minister Theresa May has said she will “ensure” the Department of Transport looks at the issue of costs to Thanet council for keeping Ramsgate Port ready for ferry crossings.
She made the pledge in Parliament today (February 13) in response to a question from South Thanet MP Craig Mackinlay.
The MP asked for assurances Thanet council would be “indemnified” for costs “from here on in” for keeping the port in a state of readiness for potential post-Brexit extra ferry crossing capacity.
The plea has been made days after a £13.8m contract between Seaborne Freight, which proposes to un a Ramsgate/Ostende route, and the Department of Transport was terminated.
The contract with Seaborne Freight was awarded in December as part of Post-Brexit resilience plans to ease possible backlogs at Dover {Port and the Channel Tunnel – despite Seaborne being a start-up company with no vessels or track record.
But it was axed last week with government saying Seaborne would not reach its contractual requirements and the firm’s’ backer’ Arklow Shipping had pulled out of the deal.
Arklow’s involvement had not been made public prior to the announcement of Seaborne’s contract being terminated and the Irish shipping firm has said no deal was signed between the two companies.
Thanet council has plans to ditch £500,000 used to keep Ramsgate port in readiness for a ferry operation and axe a further £130,000, totalling £630,000 – or £730,000 in a full year -from its 2019/20 budget if no ferry contract is signed.
The authority needs savings of £1.8 million in order to balance the books. Councillors have been told the biggest expense is at Ramsgate Port.
The budget report was due to be voted through on February 7 but was withdrawn following discussions between Thanet council leader Bob Bayford and Secretary of State for Transport Chris Grayling that afternoon.
Cllr Bayford said that although an ‘uncomfortable decision’ may have to be made to close sections of the port and make cost savings the approach from the Department for Transport would delay that until a date on or before March 11.
News broke of the contract termination just over 24 hours later.
Ramsgate Port has racked up a £20million deficit since 2010. Losses include £5million in live export compensation paid after the High Court overruled a live export ban from the port put in place by the then-Labour led council and £3.4million for bankrupt TransEuropa Ferries unpaid fees and charges.
Mr Mackinlay said: ““I’ve always considered the likelihood of delay at the Dover-Calais crossing to be remote no matter what the outcome of the Brexit negotiations.
“Regional representatives from the Pas de Calais share my view because international law governing cross-border trade protects the crossing.
“I know the Department for Transport is already in talks with a number of companies to secure additional freight capacity and Ramsgate will remain at a state of readiness under any outcome.
“Thanet will do what’s in the national interest to assist with Brexit preparedness; we’ll be proud to do so, but it’s wrong to expect Thanet taxpayers to pay for it.
“I’ll continue to stand up for South Thanet and have pointed out forcefully to the government that local taxpayers must not be financially disadvantaged by national Brexit preparations undertaken locally.”
The MP has also berated Labour leader Jeremy Corbyn, who said the Seaborne contract decision had increased Thanet council’s deficit by £2million.
Mr Mackinlay questioned where the figure had come from, saying it was news to himself and the council.
Evasion
Thanet’s Lib Dem party says the PM’s answer evaded giving a specific pledge that government would foot the bill for port readiness.
Martyn Pennington, Chair of East Kent Coast Liberal Democrats, said: “It’s clear that our Tory MPs are incapable of standing up for Thanet, and TDC has remained a laughing stock. Why hasn’t Grayling resigned? He plays politics with Manston.
“Meanwhile Gale and Mackinlay have done nothing for us – our health services are being dismantled and moved elsewhere, our bus services are being axed, and our schools are in crisis.”
