Transport Secretary Chris Grayling has faced calls to resign over the move
AN SNP MP has warned of the precedent that could be set by the awarding of a £14 million contract to a ferry firm with no ships and apparent large debt.
The MP pointed out the company had “negative assets of nearly £400,000” and “terms and conditions copied from a takeaway”.
He continued: “Will all UK businesses see such largesse from the Government over procurement contracts?
“One of the directors of Seaborne ran a company which went into liquidation owing HMRC nearly £600,000 using EBT [Employee Benefit Trust] tax avoidance schemes.
“According to the director, the Government didn’t even consider the money owed to HMRC as relevant – is that a sign of a Government out of control on Brexit?”
But UK Business Secretary Greg Clark (pictured above) defended the Government’s move, claiming the contract’s £14m would not need to be paid if a no-deal Brexit was avoided, as the firm’s services would not be needed.
Clark added it was “prudent and responsible” for the Government to prepare ahead of a no-deal situation, and he hoped the opposition would “take the opportunity to obviate the need for those contingencies”.