A FERRY route linking Sussex and France has been safeguarded – for now.

The contract to run the Newhaven-Dieppe cross-channel ferry has been extended for at least another year.

The reprieve was welcomed by business and political leaders.

But despite increasing passenger and freight numbers, its long-term security remains unsure.

The French-owned ferry route is run at a massive loss with €231 million spent in subsidies over the past ten years.

Last year French officials threatened to pull the plug on the service, plunging the future of the link and harbour, which supports 500 jobs and 40 companies, into doubt.

The French now say the link does have a future – but only if it can cut the taxpayer subsidy and better promote the route on both sides of the Channel.

Despite being unprofitable, over the past six years passenger traffic has gone up between 1.5% and 2% a year while freight has grown at 39,000 to 40,000 pieces per year, according to a recent study by Ernst and Young.

But new regulations come into force in February 2015, meaning investment in low-emissions technology costing millions more Euros.

Newhaven Town Council and Newhaven Chamber of Commerce recently travelled out to France for crisis talks.

They discussed changes such as reducing staffing levels, new timetables, the reintroduction of a second ferry and increased promotion.

Annie Lorys, president of the Newhaven Chamber of Commerce, said: “We are pleased that the ferry line has been given a reprieve until December 2015, but it is obvious that the way the ferry is currently run needs to change.

“We hope that a solution is found as we consider the ferry an important part of Newhaven’s identity and character as well as an important contribution to the local economy.

“We very much hope that this iconic ferry line continues to run well into the future.”

Councillor Rod Main, member of Lewes District and Newhaven Town Councils, said: “Without the ferry service, Newhaven could easily become a dormitory town for Brighton.

“In the interests of cross-channel relations, it is important to ‘hold our end up’ and not let the French try to do it all.

“If we do, they are likely to fail and that will be the end of it.

“Even trying our best this side of the channel, the future is not guaranteed.

“It may still all disappear at the end of 2015 no matter what we do.”