Alderney ferry loan decision 'will take time'

Treasury and Resources said guaranteeing a loan for a private company was an "unusual matter" and the risks needed to be thoroughly examined

The decision on guaranteeing a loan for a bigger ferry operating to Alderney will not be rushed, Guernsey's treasury department has said.

Ferry firm Bumblebee has asked Guernsey States to guarantee a £1.4m loan for a 140-seat fast ferry to run.

Managing Director Dan Meinke said improving ferry links could have "enormous" economic benefits.

A Treasury and Resources spokesman said while it was a priority, no timescale could be given on a decision.

He said: "We certainly appreciate the importance of completing this process as soon as possible.

"However, this is an unusual matter, involving as it does the provision of a States' guarantee of around £1.5m for a private enterprise and requiring a thorough analysis of the risks that this might pose to taxpayers.

"The department itself does not have the authority to agree to such a guarantee, so in the event that it does support the proposal, it will be the subject of a report to the States."

Dan Meinke claimed improved links could generate £500,000 for the Alderney economy

Bumblebee has operated since 2012 using a 32ft (10m) catamaran and earlier this year purchased Island Rib Voyages

Mr Meinke said the "chances of a fast Alderney ferry operating in 2016 are fading" as the firm would need to let tour operators know shortly in order to get the services advertised for next summer.

The firm's proposals are for a 25-30m (80-100ft) catamaran to operate between Guernsey, France and Jersey to Alderney in the summer months.

The plans for a low-cost service operating under a capped subsidy have been approved by the States of Alderney, but require the loan being guaranteed by the States of Guernsey.

Mr Meinke said the firm's projections are for up to 10,000 passengers being carried annually.