U.K. Delays Final Decision on Passport Manufacturer by Two Weeks

(Bloomberg) -- The U.K. delayed a final decision on who will manufacture the country's post-Brexit blue passports by two weeks, after criticism from the media and a losing bidder, De La Rue Plc, over the designation of a Franco-Dutch firm as the government's preferred choice.

While Gemalto NV remains the preferred bidder, a “standstill” period for companies to seek more information from the Home Office and decide whether to appeal the decision has been extended at De La Rue's request, Prime Minister Theresa May's spokesman, Max Blain, told reporters in London. The extension starts on Tuesday.

“What it means is this process whereby bidders have the ability to make approaches to the Home Office or consider a legal action, as I think De La Rue has spoken about, that process has been extended,” Blain said. “This has been a rigorous, fair and open competition. The preferred bidder demonstrated they are best able to meet the needs of the passport service.”

Basingstoke-based De La Rue, holder of the current passport contract, has said it may appeal the government's decision, which would see British passports manufactured in France after the U.K. has left the European Union. The government said doing so could save the taxpayer as much as 120 million pounds ($169 million).

But it also sparked a furious response in the media and the Daily Mail in particular. The newspaper devoted a front cover to the issue, asking Britain's ruling class: “Why DO you hate our country, its history, culture and the people's sense of identity?”

The opposition Labour Party's Brexit spokesman, Keir Starmer, also questioned the decision, saying last month that British passports should “of course” be manufactured by a U.K. company.

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net.

To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Stuart Biggs, Kevin Costelloe

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