Northern Isles ferry services to go out to contract ‘as soon as possible’

THE latest contract for providing lifeline ferry services to the Northern Isles will be put out to tender “as soon as possible”, transport minister Humza Yousaf has confirmed.

While ferry firms will have to bid for the routes to Orkney and Shetland, Mr Yousaf said he still planned on giving the next contract for the Clyde and Hebrides services direct to state-owned CalMac.

Mr Yousaf said putting the services for the Northern Isles out to tender had been the “strong preference” of businesses and the local community.

He added: “We have always said we would take the views of the local community into account when it came to the procurement of the next Northern Isles ferry services contract.

“Through the consultation process, it’s become clear that the preference of the local communities is for this contract to be put out to tender rather than a direct award to an in-house operator.”

He added that European state aid rules meant it would not be possible to make a direct award before the current contracts for the Orkney and Shetland routes run out.

“The latest correspondence from the European Commission means satisfying European law for a direct award will take us beyond the currently-extended Northern Isles contract,” the minister said.

“As a result, we will start the tender process next month in order to allow enough time to complete this high value and complex procurement, ensuring that communities and businesses have the certainty they need.

“Delaying this any further would put the continued delivery of ferry services at risk, something I am not prepared to do.”

He added: “The decision to tender the Northern Isles contract does not change my position on the future approach to be taken for the next Clyde and Hebrides contract.

“I remain minded to make direct award to CalMac if we can satisfy all the necessary criteria.”

Tory MSP Jamie Greene welcomed that the services would be put out to tender but criticised the government’s “obsession” with nationalisation.

He said: “If users of the service in Orkney and Shetland have little appetite for this nationalised and centrally-controlled service, why does the minister insist on dogmatically pursuing that agenda?”

He urged Mr Yousaf to “take the nationalisation agenda off the table once and for all”.

Lib Dem Shetland MSP Tavish Scott agreed putting the services out to tender was “the right decision”.

However, Labour’s Colin Smyth said: “It’s clear that the basic principle that public transport is an essential public service not an opportunity for private profiteering is one that isn’t shared by the SNP.”

He added: “It’s clear today that a pattern is developing when it comes to this government’s commitment to public ownership – they simply don’t have one in practice.”

Green MSP John Finnie said the situation was “extremely disappointing” and a “lost opportunity”.

“The Green Party hoped that the purchase of these vessels may have been the first step to public ownership,” he said.