Ferry companies say port privatisation could be disaster
16:12, 28 June 2011
by Graham Tutthill
The future of the ferry industry and the jobs of thousands of people who depend on it could be "irreparably damaged" if the port privatisation plan goes ahead.
That’s the warning from P&O Ferries chief executive Helen Deeble in a strongly-worded letter to the government this week.
She said there had been a total breakdown in the relationship between her company and Dover Harbour Board.
Writing to members of the Transport Select Committee, and all Kent MPs, Mrs Deeble said she was "deeply unhappy" about the way the ferry companies were being treated by the management of the harbour board over the privatisation proposal.
"We are very worried that the prospects of our vital industry and those of thousands of employees dependent upon it will be irreparably damaged if Dover Harbour Board is allowed to proceed with its privatisation scheme unchecked," she said.
"When the Port of Dover first announced its intention to apply for a transfer scheme to change its status to that of a private entity, we raised serious concerns about the nature and extent of such plans
"At no time subsequently have we been able to have a satisfactory dialogue with the chief executive (Dr Bob Goldfield) and board of Dover Harbour Board.
"Given the monopoly nature of the port in providing ferry berths (there are no other deep water ports in the vicinity suitable for the existing operators’ vessels) the proposed structure and emphasis on profit growth act as an open encouragement to increase tariffs with impunity.
"The operators believe DHB is abusing it’s dominant position and that this situation will be exacerbated after privatisation unless control mechanisms are in place."
Mrs Deeble said it was vital that if the port sale went ahead, the process should be managed by the government, not the harbour board.
"We believe that there is a serious conflict of interest when, under their proposals, DHB will decide which bidder is selected.
"They have already indicated they do not favour (Dover MP) Charlie Elphicke’s proposals for a ‘People’s Port’ whereas the ferry operators are more persuaded by his plans because they recognise the key role that major stakeholders can play in the future success of the port. DHB’s plans do not."
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