Brexit: No-deal Ferry Contracts

Debate between Baroness Ludford and Baroness Vere of Norbiton

Wednesday 1st May 2019 Lords Chamber

[Baroness Vere of Norbiton]

I thank my noble friend for that question. Yes, we can be absolutely sure. Perhaps I may address the point about Seaborne, as it seems to be the elephant in the room. Not a single taxpayer pound was paid to Seaborne. The management of Seaborne perhaps made some very serious errors, but the biggest thing that happened was that its credible partner and backer, Arklow Shipping, pulled out of the deal.

[Baroness Ludford (LD)]

My Lords, is it not the fact that this was not insurance for the taxpayer but a political gesture by the Conservative Party and Prime Minister—which was demonstrated by the fact that the Prime Minister has told MPs this afternoon that when she made her “no deal is better than a bad deal” statement in the Lancaster House speech in 2017, it was “in the abstract”? She has now disowned it, which shows that it was never a real issue but was just political grandstanding.

[Baroness Vere of Norbiton]

No deal remains the legal default. I remind the noble Baroness that had no deal happened—obviously, we hope that it does not in future, either—there would have been a significant constriction of flows of trade across the short straits between Dover and France to perhaps 12% to 13% of what is currently is. That is why we had to take out these contracts. The contracts were to other ports; they made sure that important class 1 goods—medicines and things that noble Lords would find to be extremely important and beneficial to our citizens—would get through.