PM: Passport contract is free trade at work

Eurosceptics describe decision to award a Francodutch firm the contract as a ‘national humiliation’

Theresa May has defended the decision to allow a Franco-dutch firm to make Britain’s new blue passports after Brexit as ministers said that the UK must be a “strong proponent of global free trade”. The Home Office is facing a legal challenge from the British firm which currently produces the passports after the 11-year contract was awarded to Gemalto, which is listed in Amsterdam and Paris. Senior Tory eurosceptics have described the decision as a “national humiliation”.

THERESA MAY defended the decision to allow a Franco-dutch firm to make Britain’s new passports after Brexit as ministers said that the UK must be a “strong proponent of global free trade”.

The Home Office is facing a legal challenge from the British firm that currently produces British passports after the Government awarded the 11year contract to Gemalto, which is listed in Amsterdam and Paris.

Senior Tory Eurosceptics have described the decision as a “national humiliation” and accused ministers of failing to understand the “symbolic importance” of ensuring that Britain’s passport is made by British workers.

However, Downing Street insisted that the procurement process for the passport had been “fair and open” and would deliver “best value for money”.

Andrea Leadsom, the Leader of the Commons, said: “We compete in a global marketplace. That is and will continue to be the case. Great UK companies compete on a world stage and often win business around the world, and they will continue to do so, both before and after we leave the EU.”

The contract was awarded after the Government opted to tender it across Europe under EU rules. Ministers decided that a national security exemption, which would have ensured the passports were made in Britain, was not justified. The Home Office claimed that the contract with Gemalto would save up to £120 million. However De La Rue, the British company that lost out, said that the bid was so low that it was not “viable”.

Martin Sutherland, chief executive of De La Rue, told The Daily Telegraph: “We will appeal this. We are assessing our options and looking at what the grounds for appeal might be. It’s a surprising and disappointing decision.

“There are such tight margins, or even negative margins, that it’s just not a viable business. It is an incredulously low price. This bid is so low that you have to question whether it’s viable. Will people actually get their passports? It could turn into a fiasco.

“I would think that the production of a document of such integrity as the passport would fall under a national security exemption. It is one of the most sophisticated passports in the world.”

He said the Prime Minister should tell workers at the firm’s Gateshead factory why the Government had decided to give the contract to a French company.

Jacob Rees-mogg, a Eurosceptic Tory MP, said: “We are free-marketeers but this is of symbolic importance, they should be British-made.”

Gemalto said it was aware of reports regarding the contract, adding: “As the process is still ongoing and the terms of engagement are confidential, we cannot make any further comment.”

A Home Office spokesman said: “[Gemalto] demonstrated that they will be best able to meet the needs of our passport service with a high quality and secure product at the best value for money for customers and taxpayers.”

sir – For all practical reasons, it matters not where our new blue passports are to be made. But they are a potent symbol of our independence from the European Union.

They symbolise our new freedom in a way no other single item can. To make them abroad is an asinine decision by people who totally misunderstand what is happening. Dennis Spruce

Welwyn, Hertfordshire

sir – Sir Bill Cash, the chairman of the Commons European Scrutiny Committee (report, March 22) has complained about the prospect of a Franco-dutch company winning the contract to make the blue British passport when the United Kingdom leaves the EU.

Sir Bill’s complaint puzzles me. I had always thought, perhaps in innocence, that major Brexiteers, such as Sir Bill, championed the virtues of free trade and rejected the insular nationalism of protectionism.

Indeed Sir Bill’s distinguished ancestor, John Bright, of whom he’s rightly proud, was a leading 19th-century free-trader and anti-protectionist.

To avoid any doubts about the strength of this case, may I recommend Sir Bill’s laudatory biography of Bright and his free-trade beliefs, published in 2011?

Lord Ryder of Wensum

London SW1

sir – I read that the Government would save £50 million by awarding the passport contract to a Francodutch company. Does it not realise that a British company would pay corporation tax and its profits would be spent in Britain? Chris Sturmey

Tugby, Leicestershire

sir – Do the Brexiteers and Liam Fox, the Trade Secretary, live in a parallel universe? Their main reasoning for leaving the EU is to give us the chance to strike new deals with the rest of the world, more cheaply and without having to bother with EU rules. Well, when we are out of the EU, it will by definition become part of the rest of the world, and if it can produce more cheaply something that we need, then job done. Bill Jolly

Lancaster

sir – There are calls to “repatriate” the printing of blue passports at an extra cost to the British taxpayer of £50 million – all to reverse a colour change that apparently we didn’t need to make in the first place.

No doubt we shall see more of such nonsense after Brexit. William Furness

Glastonbury, Somerset

sir – French passports can only be printed in France, to ensure their security. It would seem that the Home Office, under the direction of Amber Rudd, has no such concerns for the security of the United Kingdom. George Gooden

Woodbridge, Suffolk

sir – Will there be a tariff on blue Brexit passports imported from Europe? Mark Solon

London E1

sir – With all the other Brexit necessities the Government is involved in, the replacement of our passports is surely very low on the to-do list. Why not shelve the idea until we are rid of all this EU red tape, thus allowing us to use a British-based company to fulfil the contract? Brian Smith

Herne, Kent

sir – Might we soon see Jacob Reesmogg throwing his passport into the Thames at Westminster? Hubert Pragnell

Canterbury, Kent

sir – It could be worse. If Jeremy Corbyn was in charge UK passports could be made in Russia. Hugh Lantos

Litton Cheney, Dorset