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Having reflected on this overnight I feel that any complaint or challenge by IOSSC is very unlikely to succeed and therefore the aim of the complaints being made by them is to damage, or attempt to damage, HARL.
My reasoning is that as a threshold issue I have grave doubts, as I have said previously, that the guarantee is even a subsidy for the purposes of the Subsidy Control Act. If you read the document in the link in my 17 May 18.28 post there are four limbs to the test of whether any financial support amounts to a subsidy. In relation to the EDG the closest analogy I can think of is a business start up loan which is guaranteed by the government. However there is one very important difference between the two with the EDG the loan from the banks is at a commercial rate of interest while with a business start up loan the loan is if I recall is either interest free or with a low interest rate.
Secondly, the EDG cannot be used as far as I am aware to support Scilly Ferries. I say this because while it can be used for working capital purposes this must be tied to making HARL able to win export orders. As such providing support to Scilly Ferries from the loan would seem to be outside the scope of what the loan guaranteed by the EDG can be used for.
Finally, the argument that the guarantee would distort the market fails because the EDG would be used for a different market to the one they are in. So even if the EDG was a subsidy and it had a distortive effect it would not give rise to the basis of a claim by IOSSC as they would not be adversely affected.
The Daily Telegraph article does show us the probable source of the current problems, or at any rate, one of the sources. Clearly the IOSSC seems to want to cause trouble for HARL in an attempt to get rid of a rival.
Whole thing is a smokescreen by the media cabal. The right thing to do is secure the jobs and create a world leader for decades to come.
£200m is 🥜 🥜 🥜.
Okay @david. Back to bed imho
Glad I’m not the only one who has been pondering overnight about all of this. Somethings just not adding up though.
HARL comment to Telegraph yesterday was (exact quote): ‘A spokesman said: "These issues have not been identified to us as a barrier to securing
the loan guarantee.”’
JW on social media today (exact quote) ‘Everything we are doing in relation to Isles of Scilly is ring fenced as we suspected this may happen.’
Either you expected it or you didn’t. The statements don’t reconcile to me. Whether the legal issue is valid or not, Harland and Wolff should have been all over this from the start. To say ‘it’s not been identified as an issue’ is just negligent.
If JW spent as much time thinking about updating shareholders as he did about engaging with Scilly islanders over his cornflakes on Facebook, maybe we’d all know what the grand plan is and why operating a ferry service is so important to the potential detriment of a £1.6billion contract.
JW said in the rns , update on finance next couple of weeks I believe this will be the case so maybe it’s as much as he can say atm imho
Some good sensible and valued posts this morning many thanks for posting everyone
I disagree L . Without doubt it is the responsibilty of the CFO to have contingency plans in place for every possoble scenario. Inclusive of, but not limited to, alternative finance options , possible objections and from what quarter and why.
The IOSSG would perhaps have been high on any such contingency list.
Just because they were aware it might happen , is not the same as being offically informed.
The Steamship group conversing with the papers is the first time this has reared its head , very late in the day. The questions asked by Kevan were a precursor to the news yesterday and it was pretty clear what was coming next imo.
The fact that Harl again outpaced them , took legal advice and ringfenced any spend is super.
As the UKEF loan is not yet granted, they have plenty of time to ensure no comingling of funds.
With regards to informing us more about the financial loan , we can clearly see that all responses to questions asked in Parliament basically say , can't answer commercially sensitive. Harl cannot comment on it.
In light of yesterdays news , i'm pleased they have said nothing pertaining to their business plans for Scilly , less said the better.
Bottom line, Harl don't need the Scilly route to survive, Scilly group need Harl to fail for them to survive longterm. 'Much ado about nothing'
Stokey get your pen out , next one has to be about Shipbuilding , main protagonists very colourful charachters , you have the enemies within and the rowdy bunch at the back.
I hope to have official news soon, current state of play is farcical .
Fab post Lottie !