Select Committee on Foreign Affairs Written Evidence


Submission from Mr L Hale, Company Secretary, St Helena Line Limited

OVERSEAS TERRITORIES

  Our attention has been drawn to a submission by Mr Andrew Bell dated 15 October 2007 to the Foreign Affairs Select Committee inquiry into the Overseas Territories.[253] Mr Bell's evidence is, unfortunately, inaccurate in a number of respects as regards the relationship of The St Helena Line Limited (SHL) with Crown Agents and several of the other issues raised have been the subject of correspondence involving the Department for International Development (DEID) and National Audit Office.

  At Paragraph 1.3 of his submission Mr Bell states that SHL is a branch of Crown Agents. This is incorrect as SHL is a UK registered company which acts for the St Helena Government (SHG) in holding legal title of the RMS St Helena. The company was formed at the behest of HMG and SHG. Its core objective is the provision of a safe and reliable shipping service to meet the needs of St Helena (as determined by SHG) at the lowest achievable cost and demand upon funding made available by the DFID. SHL operates under a formal agreement with SHG and DFID, To assist with the achievement of this objective, SHL engages the services of third party ship managers. Since 2001, when the contract with Curnow Shipping Limited (a company of which Mr Bell was a director) was terminated, the ship management contract has been held by Andrew Weir Shipping Limited.

  In the same paragraph Mr Bell refers to Crown Agents' "hired in shipping consultant". Again this statement is inaccurate and no consultants are provided by Crown Agents to SHL. Following the formation of SHL, Crown Agents was requested by SHG and DFID to nominate a Chairman for the company's Board of Directors and to provide certain administrative services relating to the company's operations. The shipping consultant was appointed by SHL with the approval of its Principals to assist SHL to meet its objectives.

  In Paragraph 1.4 Mr Bell states that control of SHL has been left with Crown Agents. As will be clear from the preceding paragraphs this statement is also incorrect.

  Finally, in Paragraph 1.8 Mr Bell asserts that SHL and Crown Agents have never been required to openly bid for their government contract. As will be evident from the foregoing, it would be difficult to envisage a situation in which SHL might be required to bid for the very service for which it was established.

30 January 2008






253   Ev 259. Back


 
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