The public purse will take a £50m hit after the DoT (Department of Transport) ended its no-deal Brexit ferry contracts.
Chris Grayling’s department had agreed £108m contracts with three ferry organisations, to assist with moving goods in the event of a no-deal Brexit.
He has decided to terminate the agreements after the UK’s departure date was moved to the end of October.
Even though the deals were cancelled it is likely to cost around £50m to honour part of the initial contracts.
A spokesperson for the Department of Transport said: “The Government’s freight capacity contracts were a vital part of contingency measures, ensuring goods like medicines could enter the UK in the case of disruption during a no deal Brexit.
“Following the extension, the Government is reviewing all preparedness plans. The Government’s freight capacity contracts for the summer period are no longer needed and have therefore been terminated.
“The Government has taken this decision now as it represents the best value for money for taxpayers. The termination of these contracts has resulted in less cost to the taxpayer than the termination costs reported by the NAO in their own analysis of the freight capacity contracts.”
Labour’s Shadow Transport Secretary Andy McDonald said: “Chris Grayling and the ferry contracts will evermore be a case study in ministerial incompetence.”
Labour calculate Grayling has cost the taxpayer and economy £2.7 billion
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