Ferry firm hits back at union over Vietnam boat contract
THE Isles of Scilly Steamship Group has come under fire as their new passenger ferry is being made in a shipyard in Vietnam.
GMB Union, a general trade union that represents workers, said it was “outraged” that the £42million contract wasn’t given to a UK company.
They called the news an “absolute scandal”, blasting the group for not sharing the job with the local community “that needs the work”.
But the group, which operates the shipping service from Penzance to the Isles of Scilly, has hit back at the claims, insisting they “support British industry” and that their “fundamental duty is to make the right long-term choices for the company and for the lifeline link, and our decisions are based on that alone.”
A spokesperson for GMB Union said: “It’s an absolute scandal – instead of building these ferries at a proud UK shipyard, in the heart of a community that needs the work, they’re being built on the other side of the world.
“Shipbuilders of the South West have been hugely let down by the Government and the Scilly Isles Steamboat Company.
“These ferries could have been built at Appledore once again, supporting local jobs, or at least within the wider UK if this was not possible.”
The Isles of Scilly Steamship Group announced plans to replace the ageing Scillonian III ferry in 2019.
Last year, the company, which also operates the Skybus plane service between the islands and Land’s End Airport, Cornwall Airport Newquay and Exeter Airport, announced it had completed its procurement process and had chosen French shipbuilder Piriou to build the Scillonian IV passenger ferry as well as a new freight ship.
In January the group said finalising the deal with Piriou would mean the new Scillonian IV ship should come into service in 2026. It said the new ship will be faster, more comfortable and more environmentally sustainable than the present Scillonian III.
In April last year, the firm announced it had secured a £33.6m loan from private asset finance provider Lombard to fund its own plans.
A spokesperson for The Isles of Scilly Steamship Group said: “We commenced planning the vessel replacement programme in 2019. This involved an exhaustive procurement process to select the right shipyard, based primarily on quality, technical expertise, experience and design capability, but also cost, amongst other factors.
“Harland & Wolff, who own Appledore, were one of five shipyards which made up our shortlist. There were three main reasons why Harland & Wolff were not awarded the contracts: lack of recent experience in building technical vessels; inability to offer a refund guarantee; and a much higher overall cost.
“We are a British company which has been serving the lifeline link between Cornwall and the Isles of Scilly for more than 100 years, employing over 200 people on Scilly and in West Penwith. We are duty-bound to make decisions that are in the best interests of the company and the islands we serve and as such, we are proud to have appointed Piriou to build these ships – a decision we first announced in Summer 2023. Piriou offer quality, experience, technical expertise, value for money, financial stability and can provide a refund guarantee.
“We are disappointed in the statement from the GMB Union, which we note comes some six months after we announced our decision. We support British industry and have a strong supply chain here in the South West.”