Emeraude blames the States for allowing competition from Condor

Emeraude Ferries said it had built up losses of 15m euros on the route, and that the past six months had cost it 300,000 euros a month to do nothing.

Engine problems on the Solidor Five ferry stopped sailings last December.

Seven remaining local employees are to lose their jobs. The company said the route had been mothballed for the foreseeable future but not killed off.

Competition issue

Emeraude Ferries parent company Sogestran said it had been unable to source an acceptable vessel to replace the Solidor Five for the 2006 season, and was forced to make the decision to close Emeraude without further delay.

Jean Paul Jerome, the director general of Emeraude said the company's fortunes began to decline in 2003, the year Condor Ferries were allowed to compete with them on the Jersey to St Malo route.

He has blamed the States for refusing to grant them exclusivity for cars and freight.

But Senator Len Norman, the former harbours and airport president, has rejected the claim.