Thread by @lewis_goodall

EXC: I understand that the Department for Transport is cancelling their no deal ferry contracts. And guess what: the ferry companies will be paid anyway. A proportion of the cost of the contract will be paid. If no deal planning is resumed, likely new contracts will be needed.

The Department for Transport says: “We are reviewing contingency plans to ensure costs to the taxpayer are minimised and are already selling additional ferry capacity back to the market.”

One ferry company gives some indication of the disruption they've gone through to prepare: "since Dec we have changed our schedules, added 20 weekly sailings, disrupted 30k passengers and hired more staff, all to be ready for what is now not needed..."

...and the consequence for DfT is that they have to accept that the termination clauses now apply.

which means - yes - paying a proportion of the original contract costs (which take account of the costs we have incurred to prepare)."

The National Audit Office have estimated that the cancellation costs of these contracts would be some £56.6m.

Department for Transport source tells me the cost will "be about 10% less" than the NAO figure suggests. So just a cool £50m or so then.

Add this to the £2bn cost of overall no deal planning spent which- as a I revealed last month-has also been canned. It has been a very costly business for a country which, apparently, hasn't got a lot of money to spend.

I also understand that if no deal becomes likely again in October, new contracts would have to be drawn up, with a new set of costs.

.@AndyMcDonaldMP, Lab’s Shad Transport Secretary says: “Chris Grayling’s approach to procurement has costs taxpayers tens, if not hundreds of millions of pounds. His career has left a trail of scorched earth and billions wasted. This country can not afford Chris Grayling.”

The PM is asked about our story by @hilarybennmp at the liaison committee. She replies: "We've decided to cancel the contracts with Brittany Ferries and DFDS, these contracts were vital contingencies...they both inclued early termination fees..."

"...to ensure we would not have to pay the full contract cost in the event capacity was no longer needed."

Baroness Vere, transport minister, when asked in an urgent question about no deal ferry cancellation, the £50m was well spent because as a result we had "an insurance policy."

But if it is an insurance policy, given no deal has only been delayed, why have they cancelled it?

Vere confirms that if no deal looks likely, all this will happen again: "No deal is still the legal default so what will happen next is pretty much what happened last time."

The House of Lords then burst into a sad laughter.