Councils confirm no further financial bailout for Hythe ferry which will cease trading on 31st December

THREE local councils which have previously financially supported the Hythe ferry have confirmed there will be no further bailout.

As reported by the A&T the ferry will cease trading on Saturday unless a new buyer can be found.

In a joint statement, Hampshire and Southampton councils said they were sad to hear of plans to end the service having worked hard to provide financial support.

They added: "Unfortunately, following the Covid pandemic and the rising cost of living, demand has not returned to previous levels and we are not able to provide the amount of ongoing subsidy that would be needed to keep the service running.

"We very much hope that a new operator can be found."

A spokesperson for NFDC told the A&T: "Whilst it is regrettable that the business is due to cease trading on 31st December, the council is not currently playing a role in looking for a suitable buyer."

Last March the three councils committed to each giving the service £7,500 a month for three months amid concerns it

Lee Rayment, managing director of Blue Funnel Cruises Ltd which saved the service in 2016, said it had been running at an unsustainable loss.

He announced: "It has sadly got to a point where Hythe ferry has reached a position whereby it is no longer financially viable to continue trading as a business, despite best efforts, cutbacks and voluntary assistance.

"In fact, we are now running at a loss, which cannot be sustained during the historically quiet winter months."

Around 18 staff, a mixture of full and part-time, work for the ferry.

Mr Rayment told the A&T that if a buyer could not be found he would have to sell the boat to pay staff redundancy.

As reported in the A&T last year a fundraiser by local resident Ashleigh Mutimear also helped bring in much-needed funds for the ferry after her target of £37,500 was reached thanks to generous donors.

A book by local author and illustrator Simon Chadwick, which told the tale of a friendly seal, also helped to raise £10,000.