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U.K. Government to Pay Eurotunnel £33 Million Over Brexit Contracts U.K. Government to Pay Eurotunnel £33 Million Over Brexit Contracts
(about 5 hours later)
LONDON — Add this to the list of headaches faced by Britain’s government as it frantically tries to prepare for Brexit: a 33 million pound (about $44 million) payment to settle a lawsuit brought by Eurotunnel, the company that operates the rail link between France and Britain.LONDON — Add this to the list of headaches faced by Britain’s government as it frantically tries to prepare for Brexit: a 33 million pound (about $44 million) payment to settle a lawsuit brought by Eurotunnel, the company that operates the rail link between France and Britain.
Eurotunnel had sued Britain’s Department for Transport over the handling of contracts to provide extra transportation capacity in the event the country leaves the European Union without a deal in place.Eurotunnel had sued Britain’s Department for Transport over the handling of contracts to provide extra transportation capacity in the event the country leaves the European Union without a deal in place.
The company accused the British government of limiting competition by not having open bidding for the contracts, worth millions of dollars, according to the court filings.The company accused the British government of limiting competition by not having open bidding for the contracts, worth millions of dollars, according to the court filings.
In December, Britain’s government signed contracts with DFDS, a Danish shipping company, and Brittany Ferries, a French company, to supply extra freight capacity to bring essential goods and medicines into the country in the event of a no-deal Brexit.In December, Britain’s government signed contracts with DFDS, a Danish shipping company, and Brittany Ferries, a French company, to supply extra freight capacity to bring essential goods and medicines into the country in the event of a no-deal Brexit.
The government also signed a contract with Seaborne Freight, a ferry company that was later found by the BBC not to have run a ferry service before. The deal came under heavy criticism, with one lawmaker calling it a “shell company.” The firm was also ridiculed for echoing the website terms and conditions of a business specializing in takeout meals. Seaborne Freight pulled out of the contract.The government also signed a contract with Seaborne Freight, a ferry company that was later found by the BBC not to have run a ferry service before. The deal came under heavy criticism, with one lawmaker calling it a “shell company.” The firm was also ridiculed for echoing the website terms and conditions of a business specializing in takeout meals. Seaborne Freight pulled out of the contract.
The government settled the case with Eurotunnel to avoid a prolonged legal tussle as it tries to make arrangements for March 29, when the country is scheduled to exit the European Union.The government settled the case with Eurotunnel to avoid a prolonged legal tussle as it tries to make arrangements for March 29, when the country is scheduled to exit the European Union.
Government departments and Britain’s businesses have been furiously preparing in case the country leaves the European Union without an agreement setting the terms of the separation. There are fears that the lack of clarity over port arrangements could lead to gridlock on the roads and problems getting food and medicine to people in Britain.Government departments and Britain’s businesses have been furiously preparing in case the country leaves the European Union without an agreement setting the terms of the separation. There are fears that the lack of clarity over port arrangements could lead to gridlock on the roads and problems getting food and medicine to people in Britain.
“We are taking steps to ensure supply chains continue to function, whatever the circumstances of our departure, and that mitigation is in place to avoid disruption at borders,” Stephen Barclay, the Brexit secretary, said in a statement on Friday.“We are taking steps to ensure supply chains continue to function, whatever the circumstances of our departure, and that mitigation is in place to avoid disruption at borders,” Stephen Barclay, the Brexit secretary, said in a statement on Friday.
Chris Grayling, the transport secretary, added that, “While it is disappointing that Eurotunnel chose to take legal action on contracts in place to ensure the smooth supply of vital medicines, I am pleased that this agreement will ensure the Channel Tunnel is ready for a post-Brexit world.” Chris Grayling, the transport secretary, added, “While it is disappointing that Eurotunnel chose to take legal action on contracts in place to ensure the smooth supply of vital medicines, I am pleased that this agreement will ensure the Channel Tunnel is ready for a post-Brexit world.”
Eurotunnel agreed to withdraw its case and has agreed to unspecified measures to improve security and traffic flow as part of the agreement. Eurotunnel agreed to withdraw its case and take unspecified actions to improve security and traffic flow.
“Eurotunnel has concluded an out-of-court agreement with the secretary of state for transport, that will ensure that the Channel Tunnel remains the preferred route for vital goods to travel between the E.U. and the U.K.,” the company said. “Eurotunnel has concluded an out-of-court agreement with the secretary of state for transport that will ensure that the Channel Tunnel remains the preferred route for vital goods to travel between the E.U. and the U.K.,” the company said.