P&O Ferries, Norfolkline and SeaFrance have threatened Dover Harbour Board (DHB) with legal action after it increased ferry charges on the grounds that it needs to develop a new terminal, but they claim it will actually use the cash to reduce its pension deficit.

In a letter to DHB, the three cross-Channel operators allege that £30 million (US$45 million) of DHB's £60 million cash pile amassed from previous increases, will be put towards its pension fund deficit rather than the £400 million Terminal Two project.