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Brexit delay could cost millions in extra payments to ferry firms

Any delay to the UK leaving the EU could cost the government tens of millions in extra payments to keep its no-deal ferry contracts in place. Conservatives tell MEPs to consider election bid if Brexit deal fails Read more It seems unlikely the contracts will now be realised after MPs voted to instruct Theresa May to seek an extension to article 50, which would delay Brexit beyond 29 March. According to the Financial Times, the cost of the delay could reach £28m. Brittany Ferries, which has contracts worth £46.6m under the deal, said the terms “included fair and proportionate compensation in a deal scenario, taking account of the significant preparatory work and concomitant costs incurred”. It said the firm had already “incurred a series of direct costs and resource commitments”, including hiring new staff and changing more than 20,000 bookings, and “the new schedule cannot now be changed, even as an extension to article 50 seems likely”. 'I feel frustrated': the Brexit view from Edinburgh and Hastings Read more The contracts are intended to ensure imports of medicines and other vital supplies to the UK continue in the event of a no-deal Brexit causing chaos on the short Dover-Calais and Channel tunnel routes. A National Audit Office memorandum in February noted the potential problems caused by a delay to the article 50 process. “If the date of the UK’s exit from the EU changes, and there is still the possibility of a no-deal EU exit, the department will need to decide how it wishes to proceed with the contracts,” the NAO said in February. “There is no provision for the start date to be delayed, but the department may seek to negotiate this with the operators.” A Department for Transport spokesman said: “As the prime minister has made clear, the legal default in UK and EU law remains that the UK will leave the EU without a deal unless something else is agreed. “Leaving with a deal is still our priority, but as a responsible government it is only right that we push on with contingency measures, that will ensure critical goods such as medicines can continue to enter the UK.”

Chris Grayling’s failings: ferry fiascos and no-deal Brexit planning

The transport secretary, Chris Grayling, has fought off calls for him to resign over a series of costly controversies. But was the man at the centre of them all really to blame? The Guardian’s Peter Walker looks back at a catalogue of crises that have a habit of engulfing the cabinet minister now known as ‘Failing Grayling’. Plus: Rob Evans on the blacklisting of trade unionists and the role of undercover police When reports emerged that the transport secretary, Chris Grayling, had awarded a ferry contract to a company without any ferries, he faced widespread derision. Last week, the contract was cancelled and the government reached a humiliating £33m out-of-court settlement with Eurotunnel. It was the latest in a long line of controversies that have engulfed Grayling during his political career. But despite the setbacks, he has continued to win promotions and remains in the cabinet with key responsibilities in planning for Brexit. These lists were funded by major companies, including the construction industry, and resulted in people losing work when those businesses deemed them to be troublemakers. This week, the police have finally admitted their involvement by having shared information about individuals with the blacklisters, and have compiled an internal report that has been seen by the Guardian’s reporter Rob Evans. He describes tracking down the office of the blacklist in Worcester.

Brexit: sack Grayling over ferry fiasco, demand MPs

Theresa May faced cross-party calls to sack her transport secretary, Chris Grayling, last night, after the calamitous collapse of a no-deal Brexit ferry contract handed to a company with no ships. Senior Tories said the prime minister had turned “a blind eye” to Grayling’s decision to award the £13.8m contract to Seaborne Freight to run ferries between Ramsgate and Ostend, despite widespread derision and accusations that it had been awarded illegally. Several MPs suggested Grayling should now consider his position after his department revealed the contract had been cancelled, and Bob Kerslake, the former head of the civil service, said the saga would “just confirm the view of many that this country is in a mess”. “Chris Grayling holds a critical position in government, trying to mitigate what would be a very serious crisis for the country if we leave the European Union without a deal,” she said. The prime minister should also be considering whether there is not someone else who could do the job better.” Another senior Tory MP said Grayling was a “walking disaster zone”, adding: “A no-deal Brexit would be a major national crisis and stories like this suggest we have not got the people in place who are capable of responding to it.” Another said: “Grayling never has a grip on the detail, as the Seaborne mess shows. He has already lost the confidence of the civil service as they now require a ministerial directive for the government to spend money on ferries.” Downing Street last night said the prime minister had full confidence in Grayling. The Department for Transport said the deal was terminated after Irish company Arklow Shipping, which had backed Seaborne, stepped away from the deal. There is increasing international business concern about the prospect of a no-deal Brexit. The Japan Business Council in Europe, a body that represents the European arms of 85 Japanese companies including Fujitsu, Hitachi, Toyota, Honda and Panasonic, said its members were preparing for the “severe consequences” of leaving the EU without a deal. “A no-deal exit would bring severe consequences not only to our member companies directly, but also to our supply chains and customers,” said Lars Brückner and Graham Holman, joint heads of the council’s Brexit task force.