Government releases £35 million to protect Dover and Folkestone freight but there are doubts it will prevent P&O job losses in Kent
Published: 19:02, 18 May 2020
Updated: 20:25, 18 May 2020
The government is releasing millions of pounds to cross-Channel freight operators but serious doubts remain over whether it will save hundreds of at risk jobs in Kent.
Ferry operator P&O is currently consulting over whether to make 1,100 jobs redundant – half of which are set to be slashed in Dover.
Vital freight routes will continue to run during the coronavirus crisis to supply medical supplies and food to the UK after a £35 million package was announced by the government today.
Six deals have been agreed between operators and the government to maintain freight capacity and the flow of goods through ports like Dover and Folkestone to and from the continent.
The government said Dover's routes between Calais and Dunkerque and the Folkestone to Coquelles operation run by Eurotunnel are included.
But trade union bosses have raised concerns about a lack of conditions attached to the agreement to protect employees' futures.
Dover and Deal MP Natalie Elphicke called on P&O – which is owned by the State of Dubai – to help its British workers.
Mrs Elphicke said: "I have fought hard to persuade ministers to back Dover’s port and ferry industry – so I welcome the government’s substantial package of support.
“The government has now provided tens of millions of pounds through this and the extended furlough scheme.
"It’s time for the Government of Dubai to do their bit and stump up to support P&O and protect British jobs.”
Reacting to the government's announcement, the RMT said unless urgent action was taken to protect the workforce, the government will have failed them.
Mick Cash, RMT general secretary, said: "No freight moves without seafarers. The government needs to remember this when dishing out public money to private ferry companies during the pandemic.
“We are extremely concerned there are no conditions attached that will protect seafarer jobs from the likes of P&O owners in Dubai who are using public funds to pursue mass redundancies in Dover and Hull now and cheaper foreign crews replacing UK seafarers when passenger demand returns.
“We need action now to protect our seafarers’ jobs for the long term or the government will have failed to protect these strategically vital jobs in working class communities.”
A Department for Transport (DfT) spokesman said the funding announced today will "support the flow of critical goods into the UK" but is not intended to support individual companies or resolve challenges businesses are facing.
They added companies operating the routes supported will not make a profit during the government's period of support.
"We recognise how challenging this period is for the transport sector and encourage all firms to make use of the many other measures the Government has introduced to support businesses during the pandemic," the spokesman added.
"We will continue to directly engage maritime companies and associations to help tackle the challenges they are facing.
"We have been working closely with both operators and unions to understand how we can protect UK jobs, whilst keeping critical freight moving. We remain committed to growing the number of UK seafarers."
P&O placed 1,100 workers on furlough in March and a further 300 last month.
The company has now launched a redundancy consultation which would see its operations in Dover decimated despite being handed out millions in government cash through the furlough scheme and other grants.
It asked the government for a £150m bailout while its parent company DP World has said it will help but has faced scrutiny over paying out millions to shareholders during the crisis. It is understood P&O has now received the government cash.
The £35m funding will give 16 of the country's most important routes new protected status for nine weeks after a loss of demand and traffic since the Covid-19 pandemic, the DfT said.
It follows an agreement between the UK, France and Ireland to maintain the routes.
Transport secretary Grant Shapps said: “From the very beginning of the outbreak, we have committed to do whatever it takes to minimise the disruption caused by COVID-19.
“By taking this action, we have helped protect the movement of goods and services in and out of the UK, safeguarding the flow of supplies across the Union.”
P&O declined to comment when approached by KentOnline today.
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Matt Leclere