Let’s be honest about it – there are only 4 modes of transport – road, rail, ship and aviation – so the Transport Secretaries brief is neither extensive or complicated.
Therefore, in our view, the fact that the P&O Ferries situation even occurred – is a damning assessment of the competence of our Transport Secretary.
Back in 2005, Irish Ferries reflagged it ships to Cyprus (another “EC member country), which allowed them to immediately replace local Irish crew with East European Agency staff – greatly reducing their wage bill – as well as allowing them commercially to undercut their shipping rivals who were “playing by the rules” on salaries.
In 2021 Irish Ferries came to Dover to fight for the Dover Calais traffic
The trade unions warned that this would result in “unfair competition”
But Doug Bannister – chief executive of the Port of Dover – welcomed these “salary pirates” with open arms – declaring “We are delighted to welcome Irish Ferries to Dover. This announcement gives the millions of customers across the UK and the Republic of Ireland who value the intrinsic benefits of the shortest sea crossing to Europe, the prospect of even more choice”
And less than a year after their arrival – their price cutting based on low agency staff costs (below UK minimum wage) was having the desired effect on gaining traffic – offering a family in a BMW a return Dover – Calais in April for £135. This was 20% lower than could be offered by P&0 and DFD.
So, it seems that it was a “damned if you do and damned if you don’t” dilemma facing P&O’s ferries Chief Executive Peter Hebblethwaite – as whichever course he took – would have a drawback.
And like it or not – he took the tough but right decision for his Company.
And we hope that our Transport Secretary – instead of “bashing” P&O for embarrassing him – will take instead the correct position of making all ferry companies working in British waters – have the same “playing field” – i.e. be tough on Irish Ferries to allow P&O and DFD the chance to prosper based on safety, and customer experience