PRESSURE is mounting on Condor to provide “reassurances” to Islanders and businesses about its financial status as the ferry firm remained tight-lipped about what it described as a “challenging time”.
Former Economic Development Minister Deputy Lyndon Farnham has called for “more transparency” from the operator and the government, after Condor dismissed rumours that it had gone into administration with a two-sentence statement on Friday afternoon.
It came just a week after the ferry firm proposed hiking freight prices by 19%, saying it could no longer afford to absorb costs.
Responding to rumours which began circulating late last week, Condor issued a statement from its chief executive, John Napton, saying: “Condor has been working with its stakeholders to overcome a temporary but challenging time. “We are confident that this is very near to being resolved and will have no impact on our services now or in the long term.”
Financial documents available on the Companies House website show that Condor had to refinance a loan this year.
Interest rates have risen significantly since the firm’s repayment was initially due – in 2022 – with the Bank of England base rate currently standing at 5.25%, following several successive rises.
The documents on the Companies House website also say the firm has been operating against a “challenging economic backdrop”, caused by the rising cost of living as well as economic “uncertainty” due to the war in Ukraine.
In a brief joint statement yesterday, the Jersey and Guernsey governments said they “welcome the reassurance which Condor gave by issuing a public statement on Friday”.
They added: “Condor has an operating agreement with Jersey, and a memorandum of understanding with Guernsey, to provide ferry services until 2025, and those agreements are still in effect. Both governments have numerous commercial agreements in place with a wide range of businesses, and neither government would comment publicly on any of those commercial matters.”
But Deputy Farnham called upon “all parties involved to be as transparent as possible while Condor addresses whatever challenges it is facing”.
He added: “Islanders deserve more reassurance from Condor that it will be able to continue to operate, and reassurances from government that contingency measures are in place to maintain Jersey’s passenger and supply chain resilience.”
The JEP also asked for an interview with Economic Development Minister Kirsten Morel but was told by the government press office that he would not be commenting.
Meanwhile, in a joint statement with the States of Guernsey, the government confirmed that the trial of the largest vessel ever to berth in Jersey – the 163-metre-long DFDS Finlandia Seaways – had been “successful”.
The statement read: “The successful entry, berthing and exit from the ports in St Helier and St Peter Port confirmed the viability of a vessel of this type as a further option for contingency planning purposes, and helped to inform the circumstances and measures that would be required in order to enable this option.
“This further strengthens the Islands’ resilience. Once again, we apologise for any inconvenience caused to planned travel and thank Condor for rescheduling around the exercise.”
Ports of Jersey previously said that the government-commissioned berthing trial was part of “ongoing testing of contingency plans for a number of possible risks, of which supply links form a key part”.
