Our Ref: BR2/14/2
26th April 2021
JOB SECURITY - EUROSTAR INTERNATIONAL LTD
A meeting has taken place with the Lead Officer, trade unions and Senior DfT officials convened by the TUC regarding the future of Eurostar.
This follows several contact meetings between the DfT and HM Treasury to push the case for definite and meaningful financial support for Eurostar International Ltd. The meetings have focused on exploring options to enable Eurostar to survive and to continue to operate following the downturn in revenue and passenger numbers for the past 13 months. This is also considering no immediate signs of an early return to normal business given the varying lockdown restrictions and conditions across Europe.
The company, despite having virtually no revenue, are still incurring normal costs that comes with running the business. Eurostar are currently receiving a second phase of financial support through lenders and bank loans, but these are short-term loans that will keep the company going until September.
The DfT continues to take a hard line and their stance is that the responsibility lays with the Eurostar Shareholders, who in turn claim to have already given major financial support. The Government is not willing to give a cash subsidy, grants or take a stake themselves. They may review their position if the shareholders give a direct cash injection. If the joint approach were not possible the company may consider a conditional loan through “BIRCH” funding which is when all other avenues are exhausted, and the company were about to fail.
The union is in constant dialogue with all those involved and is ensuring all avenues are explored. The National Executive Committee has considered this matter and has instructed me to continue with our engagement with all parties to protect our members. All further updates with the ongoing situation will continue to be reported to your NEC and I will of course also keep you updated with developments.