THE EUROPEAN Commission has given its formal blessing to the P&O Stena Line joint venture for three years, but plans to re-examine the issue following the abolition of duty-free sales later this year.
It gave the deal limited approval in November 1997 – subject to its final verdict – which allowed the joint venture to go ahead on March 10 last year. The formal permission now runs until March 2001.
In a statement, the EC said: “This will enable the Commission to re-examine the impact of the joint venture on the cross-Channel ferry market after the summer season in the year 2000.”
SeaFrance managing director Robin Wilkins, who has previously protested against the lack of conditions put on the P&O Stena Line joint venture, said: “I think it would be churlish for us to continue to gripe about it, since we are competing successfully.”
However, he claimed the autumn of 2000 was far too early for the Commission to assess the impact of the duty-free ban on the ferry market.
And he added: “I think the three-year clearance is meaningless because I can’t see the joint venture being unravelled.”
A P&O spokesman welcomed the EC’s formal confirmation of the company’s deal with Stena Line and said it was entirely natural that the Commission would want to look at the position again after the abolition of duty-free sales in June.