The firm that makes British passports today saw its share price plummet after it was revealed that the blue document promised by Brexiteers will be manufactured in France.
The boss of De La Rue bitterly criticised Brexit-backing ministers who had been “more than happy” to boast of reviving “an icon of British identity”.
It also emerged that France and Germany prevent foreign firms from bidding to make their passports on “national security” grounds.
The Home Office, however, decided that there was no security reason why blank paper and cardboard books with an embedded computer chip should not be made elsewhere in the EU.
De La Rue shares fell nearly five per cent, shedding 25p to 479p in early trading, and chief executive Martin Sutherland said it was particularly unfair because his Gateshead-based plant was “not allowed to compete for the French passport contract”.
“I’m going to have to go and face those workers, look at them in the whites of the eyes and try and explain to them why the British government thinks it’s a sensible decision to buy French passports, not British passports,” he told BBC Radio 4’s Today programme.
He said it was “disappointing and surprising” that such an “icon” was being moved abroad and challenged Theresa May to come to the North-East to explain to workers herself.
“I think we have heard, over the last few weeks and months, ministers more than happy to come on the media and talk about the blue passports and the fact that the blue passport is an icon of British identity. Now this icon of British identity is going to be manufactured in France.” He said the company had been “undercut on price” and would appeal.
The Home Office said France used a state-owned printer to make its passports and said the blank passports would only be programmed with sensitive data after they were imported.
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Culture Secretary Matt Hancock appeared to hint that there was hope for the firm, saying on the Today programme that the procurement process had not been finalised.
However, Whitehall sources said the process would be followed “to the letter”, with 10 days or so for an appeal.
Franco-Dutch company, Gemalto, won the £490 million contract by bidding £50 million less than De La Rue.
Leading Brexiteer Priti Patel, who has called for free trade deals around the world, said the news was “a national humiliation”.