Ferry operators' fury over Dover snub
Consultation on privatisation 'a waste of time'
Dover Strait ferry operators have launched a stinging attack on Dover Harbour Board (DHB) in a row over privatisation plans.
Norfolkline, SeaFrance and P&O hit out DHB’s consultations with them over plans to privatise the port, describing them as a “meaningless waste of time” that had not made “one iota of difference”.
A spokesman for the three operators said: “The whole exercise has been completely pointless.
“DHB has ignored everything we have said and we now believe they are simply playing for time, keeping us at bay while they hope their privatisation approach goes through on the nod in next week’s budget.”
DHB launched a consultation process after it announced plans to privatise in January. In March, the three operators criticised DHB for misleading them over the reasons behind hikes in port charges over the last three years and plans to increase charges by 33%, compared to 2009, by 2012.
DHB said it needed to increase prices to raise funds for a new terminal because its trust port status meant it could not borrow the money from other sources.
However, the operators said they later found out that funds raised by price hikes, which came to around £60 million (US$88.6 million), would be spent on DHB’s pension fund deficit to smooth the path to privatisation. They also said they had learnt that there would be no obligation to develop the terminal under the terms of privatisation.
Helen Deeble, CEO of P&O Ferries, said: “We have given DHB every opportunity to address our concerns but they have not done so, and we are at the end of our tether.
“This is highly regrettable. They have presented only one alternative to the present structure, with very little detail and no consultation with us. We are seriously concerned that, with no protection from future tariff increases, the very economic model of the ferry industry is threatened – which, in turn, threatens jobs.”
Robin Wilkins, MD of SeaFrance UK, said: “DHB is intransigent and acting as though its voluntary privatisation scheme is the only game in town, when there might well be alternatives that would better serve both national and local interests and the commercial interests of the stakeholders, and might better safeguard local employment.”
Deeble has written to UK Shipping Minister Mike Penning advising him that the talks with DHB are over.
She also said that in lieu of any kind of an appeals process, P&O Ferries was left with no choice other than to make a pricing complaint under the Harbours Act 1964.
Norfolkline plans a similar complaint and is deliberating whether to take the case to Brussels under European competition law.
In response, DHB said: “We were unaware of the statement by the ferry operators and are continuing discussions with them in order to reach a positive outcome.”
Norfolkline, SeaFrance and P&O hit out DHB’s consultations with them over plans to privatise the port, describing them as a “meaningless waste of time” that had not made “one iota of difference”.
A spokesman for the three operators said: “The whole exercise has been completely pointless.
“DHB has ignored everything we have said and we now believe they are simply playing for time, keeping us at bay while they hope their privatisation approach goes through on the nod in next week’s budget.”
DHB launched a consultation process after it announced plans to privatise in January. In March, the three operators criticised DHB for misleading them over the reasons behind hikes in port charges over the last three years and plans to increase charges by 33%, compared to 2009, by 2012.
DHB said it needed to increase prices to raise funds for a new terminal because its trust port status meant it could not borrow the money from other sources.
However, the operators said they later found out that funds raised by price hikes, which came to around £60 million (US$88.6 million), would be spent on DHB’s pension fund deficit to smooth the path to privatisation. They also said they had learnt that there would be no obligation to develop the terminal under the terms of privatisation.
Helen Deeble, CEO of P&O Ferries, said: “We have given DHB every opportunity to address our concerns but they have not done so, and we are at the end of our tether.
“This is highly regrettable. They have presented only one alternative to the present structure, with very little detail and no consultation with us. We are seriously concerned that, with no protection from future tariff increases, the very economic model of the ferry industry is threatened – which, in turn, threatens jobs.”
Robin Wilkins, MD of SeaFrance UK, said: “DHB is intransigent and acting as though its voluntary privatisation scheme is the only game in town, when there might well be alternatives that would better serve both national and local interests and the commercial interests of the stakeholders, and might better safeguard local employment.”
Deeble has written to UK Shipping Minister Mike Penning advising him that the talks with DHB are over.
She also said that in lieu of any kind of an appeals process, P&O Ferries was left with no choice other than to make a pricing complaint under the Harbours Act 1964.
Norfolkline plans a similar complaint and is deliberating whether to take the case to Brussels under European competition law.
In response, DHB said: “We were unaware of the statement by the ferry operators and are continuing discussions with them in order to reach a positive outcome.”
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