Ferry deal protected food supply chain - minister

A Jersey minister said it was "really unfortunate" having a separate ferry operator to Guernsey had increased food prices - but it had protected the island's supply chain.

Authorities from the two islands opted for different providers after a joint tender process failed to result in a unanimous decision last year, with Jersey selecting DFDS, while Guernsey chose Condor's parent company Brittany Ferries.

Sustainable Economic Development Minister Kirsten Morel said Jersey's choice was based on wanting a "resilient service" and the government was not confident in Brittany Ferries' finances.

Christophe Mathieu, CEO of Brittany Ferries, said the firm's investment track record "speaks for itself".

Mark Cox, chief executive of the Channel Islands Co-op, said the separate tenders had resulted in increased costs for customers across both islands because of port dues on top of flat-rate charges.

Morel said the costs had increased because freight costs had not been paid in the past, putting Condor Ferries in a financial predicament.

The minister said in November 2023, before negotiations had started, Condor Ferries contacted the Channel Island governments asking for £40m "to continue operating".

He said: "If you look at Brittany Ferries' accounts, the end of 2024, Condor Ferries was valued at 130m euro (£113m).

"That is partly because the appropriate price for freight was not being paid and therefore Condor could not invest in itself."

Morel said Condor came to the governments with two proposals before the tender process.

He said both proposals "did not talk about investing in a future fleet except as in partnership with governments".

"Jersey does not believe that we need government to be investing in a new fleet and we worked with Guernsey and came up with the view that actually the islands don't need to do that," he added.

Morel said with this belief at the forefront of him and his team, it could not choose Brittany Ferries as Jersey's ferry service provider.

He said: "I want a long-lasting, sustainable, resilient service where the ferry company can invest in new ferries - that's what we have.

"If that has led to increases in prices, that's really unfortunate... but it just shows the real level of the cost of running a ferry service - I will not apologise for protecting Jersey's food supply chain."

Morel said there was "activity on both sides" regarding the negotiations but argued Jersey had "a much more transparent political system" - saying only its side of the dealings had been made public.

In 2022, the States of Guernsey helped Condor Ferries buy a new ferry, claiming it was "securing the island's sea links".

In the deal, it provided £3m of taxpayer money and also loaned £26m to the company.

Morel said Jersey were not notified of the purchase, but believed Guernsey had "a particular interest in a particular company winning" and "being the continued provider".

Condor's then chief executive John Napton said in 2023 it could have found alternative funding for its new ship.

Morel said the States of Guernsey purchasing a vessel "was fine", but Jersey could not "pay for that Guernsey decision" with a joint ferry tender.

He said: "There is a lack of transparency around the whole of Guernsey's decision-making system, we can see that in their decision to buy a ferry, no one still knows what the emergency was that led to that."

The States of Guernsey has been approached for comment.

Mathieu said Morel needed to "quit the blame game" and "take some responsibility for the mess he made of the Jersey ferry contract".

He said: "In Guernsey, this has been clearly reflected in enhanced service levels, more reliable schedules, competitive fares and a renewed sense of optimism – alongside a resurgence in tourism.

"Regarding investment, our track record speaks for itself - five brand new ships delivered in the last five years."

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