Larne route jobs fears for crisis-hit service

The pandemic has caused a collapse in passenger numbers.

Currently just one P&O freight ship is operating on the Irish Sea crossing from Larne to Cairnryan after announcing that it was to “lay up” a ferry on the route.

The company said it has been “looking to find around £250m in funding to ensure it can come through the current crisis” caused by Covid-19. It has already furloughed 1,400 workers.

A P&O Ferries spokesperson said: “Since the beginning of the crisis, P&O Ferries has been working with its stakeholders to address the impact of the loss of the passenger business.

“It is now clear that right-sizing the business is necessary to create a viable and sustainable P&O Ferries to get through Covid-19.

“Regrettably, therefore, due to the reduced number of vessels we are operating and the ongoing downturn in business, we are beginning consultation proceedings with a proposal to make around 1,100 of our colleagues redundant.”

P&O says its business model “requires a mixture of passengers and freight on the ships, but the Covid-19 outbreak caused passenger numbers to collapse, leading the firm to come under pressure”.

The company has asked the UK government for £150m of support for its operations. Last month, Infrastructure Minister Nichola Mallon announced financial support of up to £17m for Irish Sea ferry operators to keep supply chains open during the emergency.

However, P&O believes that “the problem is too big for any one party to solve on its own, so is had been working hard to secure support from its shareholder DP World and unions, totalling £257.5m, to safeguard jobs and the viability of the business”.

The importance of sea routes for Northern Ireland’s connectivity and the potential for loss of services on the Irish Sea due to the coronavirus pandemic have been highlighted to the Secretary of State by MLAs.

Ulster Unionist economy spokesperson John Stewart MLA has described the decision by P&O Ferries over 1,100 redundancies across its network as “disappointing but not surprising”.

Mr Stewart said he warned the government a month ago over the exposure of the Port of Larne, which is owned by P&O, which has just one ship remaining on the route from the port.

In a statement, he added: “Every other commercial port in Northern Ireland is a ‘trust’ port in public ownership.

“I believe that government should look closely at the status of the Port of Larne, given its strategic transport importance as the shortest and fastest route to and from mainland GB for freight traffic.

“In April, the NI Executive’s joint announcement with the UK Department of Transport of a support package of £17m to keep vital supply routes open, including P&O Larne/ Cairnryan, was welcomed.

“But what is going to be left of P&O and Larne Harbour after this support runs out after two months and after redundancies are made?

“The future for the harbour looks very bleak at the moment, without a change of ownership.”

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