Dover too important to national interest to be passed to private
owners
27 August 2010
Allowing the port of Dover to fall into private hands would be
disastrous for the UK’s transport and economic interests, Unite the
union has warned today (Friday, 27 August). And at a time when
ferry companies at the port are struggling to survive, the business
case is not stacking up either, says the union.
The warning comes on the day of the closure of the consultation
conducted by the Dover Harbour Board (DHB) on a proposed sell-off
of the historic port, which remains a hub for UK tourism and
trade.
Unite fears that the government may seek to use any positive
response to the DHB's consultation as a pretext to fast-track a
sell-off. An earlier consultation exercise carried out
earlier this year by the DHB attracted some very significant and
forceful opposition.
The union is joined in its opposition to sale by the ferry
operators, two of whom, Unite believes, have lodged formal
objections with the Department of Transport over the
proposals. The ferry companies say that there is already too
much competition for customers on the route to France due to
competition from the Channel Tunnel, but fear a private owner will
push for a further increase in the number of operators.
LD Lines, for example, has just announced that it will be ending
its services on the Dover to Boulogne route from early next month
due to over capacity. P&O has warned staff of possible cutbacks
on the Channel services. Sea France, which also operates on the
route, is struggling with debts estimated at euro 180 million.
Norfolk Line, which also sails from the port, has also objected to
the plans.
Despite the clear pressure on ferry companies at the port, the
Port Authority wants a sale, claiming that trust status limits its
room to raise capital.
The proposed privatisation scheme would unleash the biggest
revolution in the corporate structure of the highly-profitable
publicly owned port in more than 400 years, since James I provided
the October 1606 charter under which the trust port now operates.
The latest published accounts (2008) show that profits of around
£25 million were made on revenues of around £61 million.
The previous Labour government announced in December 2009 that
it was consulting on the proposal to sell off the port in order to
raise money to help cover the budget deficit. The unfavourable
response to the sell-off plans meant they were put on ice, but the
coalition government reopened the debate in July this year, setting
a deadline for comments of today (Friday 27 August).
But Unite fears that the real driver behind privatisation is
that shedding trust status would reduce labour standards and
wages. Further, the present trust ownership arrangements,
which ensure support for the training of young people is bound to
be dropped too, Unite says, as a private company will be more
interested in shareholder return than discharging its social
responsibility.
Julia Long, Unite national officer for the docks and ferries
sector, stated: “The proposed privatisation of Dover is against the
national interest. It is a disastrous idea and should proceed
no further.
“The UK is an island nation. We need a first class sea
port like Dover to be in public hands. There is simply too much at
stake to leave the running of this vital link to Europe in the
hands of those who will milk this national treasure for profits at
the expense of the travelling public and British commerce.”
Unite regional officer Jane Jeffery added: “Dover proved its
worth to the nation earlier this year when the “wrong type of snow”
closed the Channel tunnel and the ash cloud damaged aviation.
“But Dover as a trust port is also a huge asset to the regional
economy and local community. It won’t just be the nation’s
coffers which lose out, but the people of the Dover region too if
the port is sold off.”
ENDS
Notes to editors
- The government is being advised on the sale by
PricewaterhouseCoopers
- LD Lines is removing the all of its services on the Dover
- Boulogne route and transferring pre-booked places to other lines,
wherever possible, after claiming the passenger service was an
estimated 40 per cent overcapacity on cross-Channel
routes.
- One of the main beneficiaries of the charitable donations,
which the trust is currently obliged to make, is a scheme which
forges links between schools and industry called Young Enterprise.
This programme gives 15 to 19 year olds the opportunity to gain
valuable personal experience of how business works.
- Associated British Ports, owner of 21 UK ports including
Southampton, Hull and Immingham, has expressed an interest in
Dover. It is also interested in the fate of the other trust ports
of Tyne, Shoreham and Poole should they go on the market,
increasing its control over British coastal facilities.
- Forth Ports has also expressed an interest in the ongoing
privatisation process with a view to expanding its portfolio. Forth
Ports owns Tilbury, near London and Grangemouth in Scotland.
Unite’s submission to the Port of Dover consultation
For further information, please contact Pauline Doyle on 07976
832 861
Email to a friend
