GREG Clark, the Business Secretary, has defended a ferry contract in a no-deal Brexit situation being awarded to Seaborne Freight despite one of its directors allegedly owing £600,000 to HM Revenue and Customs in relation to another firm.
During Commons Business Questions, Drew Hendry, the SNP’s transport spokesman, told MPs the director in question had said: “The Government did not even consider the money owed to HMRC to be relevant. Is that a sign of a Government who are out of control over Brexit?”
Mr Clark replied: "Of course, it's fair to observe not a penny of Government money has been paid to this company and will only be paid, as I understand it, on receipt of services provided."
But later Labour’s Andy McDonald blasted the decision to award Seaborne Freight the no-deal ferry contract, saying it "violates every current best practice guidance issued by Whitehall".
Mr McDonald, who secured an Urgent Question in the Commons on the matter, said: "This is a shoddy and tawdry affair and the Secretary of State is making a complete mess of it. This contract is very likely unlawful and violates every current best practice guidance issued by Whitehall.
"When will he realise that this country cannot continue to suffer the consequences of his gross incompetence. Why is this calamitous Secretary of State still in post?" asked the Middlesbrough MP.
It emerged that Seaborne Freight won a £13.8 million contract to run freight from the UK to the EU in the event of a no-deal Brexit despite never having run a ferry service and not owning any ships.
In response, Chris Grayling, the Transport Secretary, said he would not "address the idiocy" of Mr McDonald's comments but added: "This Government has let a contract for which we will pay no money until and unless ferries are running; that is responsible stewardship of public money," he declared.
Meanwhile, council bosses have been warned thatin a “worst case scenario” a 20-mile southbound stretch of the M3 motorway could be closed to cope with backed-up lorries at Portsmouth's ferry port should there be a no-deal Brexit.
The Hampshire port currently handles 500 lorries a day but this could double with a no-deal as it sought to relieve the burden faced by Dover.
Mike Sellers, the port director, said the distance from the freight gates to the motorway network was only 13 lorry lengths and the introduction of any delays to processing vehicles on to ferries could lead to lorries backing up on to the motorways.
He warned this could cause major traffic problems for the city, including the naval base and hospitals.
A Department for Transport spokesman said: "The Department is not planning to stack lorries on the M3."
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