By stewartb

It looks as if Cornwall and the Isles of Scilly are experiencing the benefits, the security of privately-owned and commercially-operated ferries.

From Business Cornwall online (July 18, 2024): ‘The new fast ferry which is set to link the Isles of Scilly with Cornwall arrived in Newlyn Harbour yesterday evening (July 17). Following sea trials, the Atlantic Wolff is set to begin service next week. (my emphasis)

‘John Wood, the CEO of Harland & Wolff and Scilly Ferries, said: “We are delighted that Scilly Ferries enters into service tomorrow giving day trippers and Scilly residents alike a fast, friendly and flexible service.

“This is the service the local community has been calling for over many, many years. It will bring much needed tourists to the islands and boost the islands’ economy. We know from meeting people locally there is a huge pent-up demand and I’m looking forward to it being a great success.”

That was two weeks ago. This is from Cornwall Live today (August 1) – ‘Scilly Ferries’ response after service collapses before maiden crossing’

‘A new ferry service between mainland Cornwall and the Isles of Scilly has been scrapped for good before it even started. Scilly Ferries and its bright yellow and black catamaran were due to begin business this summer after a series of delays. But it has now been announced that it will not even do its maiden trip to St Mary’s after struggling parent company Harland & Wolff announced it would refocus on its core business.’

This seems to be one of the outcomes of the parent company’s failure to obtain a loan guarantee from the new UK Labour government. On July 19 the BBC News website reported:

‘Harland and Wolff had applied for a government loan guarantee.
It wanted to take on £200m of new borrowing to refinance an £90m high interest loan from its current lender, Riverstone, and invest in its operations as it scales up ahead of a major Royal Navy contract.

‘It was seeking to borrow from a consortium of UK banks, but needed the government to act as guarantor – meaning if the loans were to go bad the state would step in to repay the lenders.
The new government considered it would be irresponsible to give the guarantee to the heavily loss making firm.’

Will the Labour government consider it prudent for the Ministry of Defence to award a ‘major Royal Navy contract’ to such a risky company?