Scrutiny committee to investigate ferry purchase

Condor Ferries' CEO said there were "always alternative financing options" for the new vessel

A scrutiny committee says it will look into the purchase of Condor's new ferry.

In March, the firm announced it had purchased a 125m (410ft) ferry currently called MV Straitsman.

The States provided £3m of taxpayers' money and also loaned £26m to the company.

The Scrutiny Management Committee (SMC) said it had questions to ask about the purchase.

On Tuesday, Condor said it sought States assistance to purchase the vessel after problems funding it through the Guernsey Investment Fund.

The Guernsey Investment Fund was set up in February 2018, with the States committing to invest £25m of taxpayers' money.

The aim of the body was to "achieve long-term capital growth through investments which have a Bailiwick of Guernsey focus or which may benefit, directly or indirectly, the development of the bailiwick".

Condor CEO John Napton said bidding for finance through the fund would not have given the company enough time to secure the ship within the vendor's deadline.

"This, in turn, would have meant that the vessel would have been acquired by one of the other bidders. The opportunity to build additional, essential long-term resilience would therefore have been lost," he said.

"The States of Guernsey then became involved because... there were strategic reasons to secure the vessel for the Islands' lifeline sea links.

"Had the States of Guernsey not become involved in the funding, given the set of circumstances set out above, the vessel would not have been secured."

Questions were asked at May's States meeting on Wednesday by Deputy Gavin St Pier, looking for clarity on why the States partially funded the purchase.

President of Policy and Resources Deputy Peter Ferbrache told deputies he could not reveal many of the reasons behind the purchase, because of the rules around disclosure and the Civil Contingencies Authority (CCA).

Under Guernsey law it is illegal to reveal what had been discussed by the CCA.

He did reveal the Policy and Resources Committee (P&R) asked Condor Ferries to issue a statement to clarify what had happened during the purchase.

Mr St Pier felt there were further questions to be answered by P&R about the purchase.

Some deputies said they were happy with the explanation they had been given by Mr Ferbrache.

Deputy Simon Vermeulen said: "I am 100% content with the answers given and it's a sensible purchase and I can see how the island would benefit from reliable food links in the chain of supply."

President of the SMC, Deputy Yvonne Burford, said "there are a few more questions that need asking, and scrutiny will be looking at doing that".

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