'Government must continue furlough of P&O Ferries staff to avoid enormous Covid-19 impact on Dover' say Liberal Democrats
Published: 15:32, 19 May 2020
Updated: 13:57, 20 May 2020
The government and P&O Ferries are being called upon to continue to furlough 1,100 staff to avoid mass redundancies.
That's the call from the Dover & Deal Liberal Democrats as the freight and passenger operator plans to cut 687 seafaring posts from the Dover to Calais route.
The party believes an extension to the government's jobs retention scheme, possibly beyond Chancellor Rishi Sunak's October extension, is a much needed short term solution to mitigate the "enormous" direct and indirect impact on the town.
Long term measures they want imposed include: regeneration at the marina/docks to include a more industrial route expanding into marine engineering or environmental protection; a University Campus centred around marine biology, oceanic preservation and sustainability on the seas and further training for local people.
Party Secretary, Caroline Howden said today: “This bombshell decision is clearly going to have a devastating effect on the town of Dover and the local economy, as P&O Ferries is one of its biggest employers.
"Redundancy is not what the people of Dover voted for when they elected Natalie Elphicke MP in December 2019.
“The Government must step up to the plate immediately and take action to assist P&O Ferries’ employees, put in place a plan and finance to assist in the regeneration of Dover and extend the transition period for Brexit otherwise this will be just the beginning of a very slippery slope towards real economic damage from which it will take our historic town of Dover generations to recover.”
In March the company furloughed 1,100 staff on full pay followed by a further 300 a month later.
It is now operating a reduced three ship model, while the tourism traffic that supplemented the route has dried up because of the Covid-19 pandemic.
It is accepted by P&O in letters to staff that the company's financial crisis will extend beyond coronavirus lockdown as P&O faced criticism after its Dubai based owner DP World paid out $332million in dividends to its shareholders, which the company maintains it was legally bound to do after announcing the 2019 profits.
In a party statement it said the the move by P&O Ferries, coupled with the significant impact of the coronavirus pandemic and the very real possibility of a No Deal Brexit is set to cripple the town and its residents.
They are calling for a Universal Basic Income for everyone "meaning thousands across Dover District would not be left behind."
Natalie Elphicke, MP for Dover & Deal, said: “This is no time to exploit an issue trying to re-ignite the tired old Leave/Remain debate.
"It is a time to be battling to save local jobs and that is what I am doing.
“I have worked hard to secure millions of pounds of Government support for the ferry industry, including an extra £35 million announced yesterday.
“What we now need is for the company’s Dubai owners to step up and I am continuing to work with P&O and the unions to save as many local jobs as possible.”
P&O Ferries has declined to comment and has not divulged how much of the £35 million it has received for the Dover to Calais route.
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Beth Robson