Coronavirus (COVID-19) PSO freight scheme subsidy spend to end of scheme (12 July 2020)
Published 9 September 2020
© Crown copyright 2020
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This publication is available at https://www.gov.uk/government/publications/public-service-obligation-freight-scheme/coronavirus-covid-19-pso-freight-scheme-subsidy-spend-to-end-of-scheme-12-july-2020
The government’s public service obligation (PSO) freight scheme safeguarded vital freight routes into, and across, the UK. The scheme supported the wellbeing of the country by ensuring critical goods, such as food and medical supplies, continued to move freely.
The scheme started on 9 May 2020 and closed, as planned, after 9 weeks on 12 July 2020.
The scheme comprised 16 routes, operated by 6 operators, covering:
- the Western Channel
- the Short Strait
- the North Sea
- routes between GB and Northern Ireland
Information on the contracts is published in the Official Journal of the European Union (OJEU) and Contracts Finder.
The aim was both to safeguard freight flows and to minimise the overall cost to taxpayers. Only routes assessed to be at risk of becoming commercially unviable (and, so, at risk of closure) due to the impact of COVID-19 were considered for funding.
Each operator and route were subject to rigorous checks and analysis by commercial and technical experts.
Actual payments to operators varied according to:
- agreed costs
- revenue
- freight volumes
As freight volumes recovered, the amount of subsidy payable would generally reduce.
The tabled values show the estimated total PSO subsidy by route and operator, noting that, for each route, the subsidies provided decreased as the scheme progressed. The costs associated with the final weeks of the scheme are going through a ‘due diligence’ process and so may still change. However, any corrections are not expected to have a significant impact on the total amount.
Invoices have been checked and assured. Payments are only made to reimburse the legitimate costs of service not recovered by commercial revenues. All revenues from passengers or freight flows are taken into account and subtracted from the overall sums paid.
| Operator | Route | Payment, excluding VAT |
|---|---|---|
| Brittany Ferries - B.A.I Bretagne Angleterre Irlande SA (contract details) | Portsmouth-Santander | £1,091,000 |
| Brittany Ferries - B.A.I Bretagne Angleterre Irlande SA (contract details) | Portsmouth-Cherbourg | £974,000 |
| Brittany Ferries - B.A.I Bretagne Angleterre Irlande SA (contract details) | Poole-Bilbao | £193,000 |
| DFDS A/S (contract details) | Dover-Dunkerque | No payment due |
| DFDS A/S (contract details) | Dover-Calais | £7,000 |
| Eurotunnel (contract details) | Dover-Coquelles | No payment due |
| P&O Ferries Holdings Limited (contract details) | Dover-Calais | No payment due |
| P&O Ferries Holdings Limited (contract details) | Cairnryan-Larne | £772,000 |
| P&O Ferries Holdings Limited (contract details) | Tilbury-Zeebrugge | £1,164,000 |
| P&O Ferries Holdings Limited (contract details) | Teesport-Europoort | £424,000 |
| P&O Ferries Holdings Limited (contract details) | Hull-Europoort | £762,000 |
| P&O Ferries Holdings Limited (contract details) | Hull-Zeebrugge | £1,272,000 |
| Seatruck Ferries Ltd (contract details) | Heysham-Warrenpoint | No payment due |
| Stena Line Ltd (contract details) | Rotterdam-Killingholme | £770,000 |
| Stena Line Ltd (contract details) | Cairnryan-Belfast | No payment due |
| Stena Line Ltd (contract details) | Harwich-Rotterdam | £282,000 |
| Stena Line Ltd (contract details) | Harwich-Hoek van Holland | No payment due |