Guernsey States and Condor to split cost of new ferry

The States of Guernsey and Condor Ferries will invest £3m each into the purchase of the ferry

The States of Guernsey is putting up nearly £30m of public money, to help buy a new Condor ferry.

Both the States and Condor will invest £3m into the boat and the States is also lending the ferry company £26m, to be paid back over a decade. 

The new vessel will be renamed the Condor Islander.

Civil Contingencies Authority (CCA) chair Deputy Peter Ferbrache said the purchase was essential in preventing a "potential emergency".

Mr Ferbrache said the CCA was asked to consider a "critical matter that was time-sensitive", requiring the use of its powers to "ensure appropriate action was taken promptly" to secure the purchase of the additional vessel.

He said it had to be done to "mitigate potential critical risks to our supply chain".

"We concluded that the purchase of this vessel at this time is essential and after taking legal advice, satisfies the need to act to prevent a potential emergency occurring," he added.

John Napton, Condor's CEO, said the purchase would support the local economies and would be an "important step in showing our long-term commitment to improving sea links".

The company was bought by Columbia Threadneedle European Sustainable Infrastructure Fund and Brittany Ferries in 2020.

The States said the joint arrangement would be self-financing, and produce an investment return "which will benefit Guernsey's public finances".

The boat will be used for a supply route from Portsmouth, for inter-island and freight services from France.

"The benefits in resilience brought by the purchase of the vessel will also be of benefit to our friends in Jersey, who we remain committed to working with on the enhancement of our long-term lifeline sea links," Mr Ferbrache said.

Analysis by BBC Guernsey Political Reporter, John Fernandez

It's been a long-held goal of Mr Ferbrache's to secure the island's sea links by buying a conventional ferry like the Commodore Clipper.

After almost a year and a half of negotiation with Condor, the States has now managed it through a deal which sees public money spent on a vessel for a commercial company.

The big question for the States now is what kind of preferential arrangements for Guernsey does this new purchase mean?

Policy and Resources has stressed that it is keen for a new service level agreement with Condor Ferries and is open in saying that does not have to include Jersey.

The other big remaining question is when did the situation become an emergency for Guernsey's Civil Contingencies Authority?

Policy and Resources told scrutiny on 21 March the ferry hadn't been bought by Condor, despite an announcement by the company the week before it had.

It appears in the week after, concerns the deal may fall through led to "potential risks to the island's supply chain", forcing the purchase of this new vessel.

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