DOVER MP Gwyn Prosser claims Hoverspeed has fuelled rumours that the company is about to scrap its Dover-Calais fast-ferry service by being "furtive and secret" about its plans.

Earlier this year James Sherwood, Sea Containers’ president, said the company’s financial performance was "unsatisfactory".

Cheaper flights, higher fuel costs, over-capacity on the Channel, intense price competition between operators SeaFrance, P&O Ferries, SpeedFerries and Norfolkline and decline in passenger numbers have all hit Hoverspeed.

Mr Prosser said: "They have been refusing to speak with the recognised trade union NUMAST and they are being very coy about talking to local media which has led to speculation that the whole company can be lost from Dover.

"Every job loss is deeply disappointing. Everyone knows there is intense competition on the Channel at the moment and the arrival of SpeedFerries has caused them more difficulties.

"On the bright side we know the new operator seems to be doing well and has promised to bring a new craft onto the Channel in the next two months doubling their capacity and creating work for those who might be made redundant from the present Hoverspeed operation."

More than 100 jobs based at Dover and another 56 in France and Belgium would be at risk if Sea Containers, the operator’s parent company, axed the service. Talks are to be held with Hoverspeed staff next week.

Sea Containers spokesman Steve Lawrence said a decision would be announced by the end of this month.

He said: "All I can do is confirm that Hoverspeed plans to make fundamental changes to its Dover-Calais fast-ferry business."

"As a result, it will start immediate consultations with its permanent staff in the UK and Europe."

Conservative spokesman Paul Watkins said the news was "predictable".

He said: "People have been expecting a decision for some time on this. The market for the cross-Channel trade is not going to get any easier and one only hopes that Hoverspeed will be fair to their employees and offer them good conditions and re-training opportunities in conjunction with the Employment Agency.

"This is a continuing trend and I am sure we will hear again that there are pressures on all cross-Channel carriers and further changes will come out of the woodwork."

The company has previously stopped its operations for the winter months.