Brexit: No-deal Ferry Contracts

Lord Hunt of Kings Heath Excerpts

Wednesday 1st May 2019 Lords Chamber

[Baroness Vere of Norbiton]

There were a couple of points there from the noble Baroness, for which I am grateful. Knowing what I know now from my short time in the department and from my time as a Defra Whip, I believe that, had I been the Secretary of State, I would have made the same decisions. These are very important contracts. The other thing to be aware of is that the contracts had to be as flexible as possible. Many will say, “Oh, they do not seem particularly flexible”, but this is all dependent on the maritime market, which is not the same as other markets. The maritime market operates in periods of weeks and months rather than hours and days. We believe that the legal advice is appropriate. I can confirm that a case is being brought by P&O, but obviously I cannot comment on an ongoing legal case.

[Lord Hunt of Kings Heath (Lab)]

My Lords, can I ask the noble Baroness two things? First, where did the money come from? Has it come from government contingency funds or out of the direct expenditure plans of her department? Secondly, if this insurance deal is not to be repeated, as seems to be implied, do I take it that the Government have firmly—and will in the future—set themselves against a no-deal Brexit?

[Baroness Vere of Norbiton]

I believe that the money will have come from the no-deal Brexit funds made available from the Treasury. If that is not the case, I will of course write to the noble Lord. I did not say that these contracts would not be repeated. The situation is that no deal is still the legal default, so what is going to happen next is pretty much what happened last time—