Ferry operators at Dover were 'misled' over rate increases
Price hikes to fund new terminal will be used to fill hole in pension fund, operators claim
P&O Ferries, Norfolkline and SeaFrance have threatened Dover Harbour Board (DHB) with legal action after it increased ferry charges on the grounds that it needs to develop a new terminal, but they claim it will actually use the cash to reduce its pension deficit.
In a letter to DHB, the three cross-Channel operators allege that £30 million (US$45 million) of DHB’s £60 million cash pile amassed from previous increases, will be put towards its pension fund deficit rather than the £400 million Terminal Two project.
They also claim DHB plans to increase its prices by 35% over the next three years and that the board’s CEO, Bob Goldfield, had told them the port needed to build up reserves in case privatisation failed.
Helen Deeble, CEO of P&O Ferries, said: “We feel we have been misled. We were forced to pay higher charges to fund a new ferry development, but it now seems that £60 million will simply end up as part of the privatisation assets of the port.
“We are all clear that this is an abuse of DHB’s monopoly power. We are considering the various legal actions available to us.
“We want to ensure that the money is ring-fenced for use only in the ferry terminal investment, or be returned to customers.”
In a letter to DHB, the three cross-Channel operators allege that £30 million (US$45 million) of DHB’s £60 million cash pile amassed from previous increases, will be put towards its pension fund deficit rather than the £400 million Terminal Two project.
They also claim DHB plans to increase its prices by 35% over the next three years and that the board’s CEO, Bob Goldfield, had told them the port needed to build up reserves in case privatisation failed.
Helen Deeble, CEO of P&O Ferries, said: “We feel we have been misled. We were forced to pay higher charges to fund a new ferry development, but it now seems that £60 million will simply end up as part of the privatisation assets of the port.
“We are all clear that this is an abuse of DHB’s monopoly power. We are considering the various legal actions available to us.
“We want to ensure that the money is ring-fenced for use only in the ferry terminal investment, or be returned to customers.”
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