Joint Government statement regarding Eurotunnel court case

The Government has today (Friday, 1 March) reached an agreement with Eurotunnel that will deliver improvements which will ensure the Channel Tunnel is ready to continue to keep passengers and freight moving post-Brexit.  

Under the agreement, Eurotunnel has committed to implement measures which will improve security and traffic flow at the border, benefitting both passengers and businesses. The investment will include improved access to the UK terminal, increased security protection within the terminal and improved traffic flow through the terminal.

As part of the agreement, Eurotunnel has also withdrawn its legal claim against the Government, protecting the vital freight capacity that the Government has purchased from DFDS and Brittany Ferries. 

This freight capacity will help ensure the continued supply in a no deal scenario of crucial medicines, medical supplies and veterinary medicines.

Brexit Secretary, Stephen Barclay, said:

"Our focus is firmly on delivering a deal but it is important we prepare for all scenarios.

"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." 

Transport Secretary, Chris Grayling, said:

“The agreement with Eurotunnel secures the Government’s additional freight capacity, helping ensure that the NHS has essential medicines in the event of a no deal Brexit.  

“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.” 

Health Secretary, Matt Hancock said:

“As set out to Parliament this week, securing additional transport routes is a key component of our no-deal preparations, so I'm pleased this case has been settled amicably and we can count on these extra supply routes as an important part of that contingency.

“While we never give guarantees, I'm confident that, if everyone – including suppliers, freight companies, international partners, and the health and care system - does what they need to do, the supply of medicines and medical products should be uninterrupted if we leave without a deal.” 

Ends

Notes to editors

• ·        The primary reason that the Government took a decision to come to an out of court agreement with Eurotunnel was to ensure these vital goods would not be put in jeopardy in a no deal scenario. 
• ·        A lengthy legal case and the uncertainty it creates is not in anyone’s interest. Leaving the EU with a deal remains the Government’s top priority. This has not changed.
• ·        These contracts were entered into in December 2018 to ensure that – in the event of a no deal Brexit on March 29 – supplies to the NHS and other critical goods essential for national security were protected. 
• ·        The procurement process was carried out at pace in the Autumn following revised assessments of the likely impacts of no deal Brexit, which anticipated significant disruption potentially lasting for up to six months following March 29. 
• ·        These measures will ease pressure on the Port of Dover and ensure more freight can pass through Kent and on to the Continent.
• ·        We are working closely with Eurotunnel, and our transport partners across the country, to ensure the right contingency measures are in place ahead of 29 March to keep Britain moving. We will continue to explore all possible options to secure additional freight capacity in the event of a no deal Brexit.

• The Government has reached an agreement worth up to £33m with Eurotunnel.
• We have agreed to support a series of measures that will ease the pressure, and minimise disruption, at our EU borders, as well as improve security.
• It will benefit passengers through improved security (with improved scanners) and improved traffic flow to ease congestion at the terminal.

• A court case would have put at risk the vital extra freight capacity that the Government has secured with DFDS and Brittany Ferries.

• Losing these contracts would risk:

• The supply of vital medicines and medical supplies
• Veterinary medicine to protect against the outbreak of animal diseases

• The Government continues to do the responsible thing and prepare for all eventualities.
• To ensure complete transparency, the Permanent Secretary at the Department for Transport has asked the Comptroller and Auditor General, Sir Amyas Morse, to further review the entire procurement process.