SNP ministers sued by their own ferry firm
THE SNP Government is facing the “fiasco” of being sued by its own ferry company.
Connectivity and Islands minister Paul Wheelhouse yesterday revealed the stateowned ferry operator Calmac had raised legal proceedings over a disputed £450 million contract.
Calmac is challenging a decision by Scottish ministers to award the Northern Isles ferry service to commercial rival Serco Limited in September.
The Government-owned firm lost out to what it claims was a more expensive bid, and began a formal challenge process in October, putting the contract into “extended standstill”.
Calmac has now escalated the process with legal proceedings, leading to the automatic suspension of the new contract.
It said it had been “left with no option” after repeated failed attempts to get more information about the scoring process.
Passenger services should remain unaffected.
Serco has run the service for the past seven years, and the contract would have extended it for six years with an option for a two-year £160m extension.
The contract covers the public service sea routes from the mainland to Orkney and Shetland, as well as shorter hops from Scrabster in Caithness to Stromness in Orkney.
Asked about the situation while election campaigning in Midlothian, Nicola Sturgeon said: “It’s a legal process, so it’s not appropriate for me to comment on that, other than to say the Scottish Government is confident in our processes and will proceed on that as you would expect. But we’ll let the legal process take its course.”
Mr Wheelhouse revealed the development in a parliamentary written answer in a letter to the transport spokespeople of the other parties at Holyrood.
In it, he said: “Calmac Ferries Ltd have raised legal proceedings on the Scottish ministers’ decision that Calmac’s tender to operate the Northern Isles ferry services was unsuccessful.
“On Scottish ministers’ behalf,
Transport Scotland are liaising with the current operator, Serco Northlink, to make arrangements for the extension of the current contract to maintain continuity of service and full connectivity to and from the Northern Isles.”
Duncan Mackison, chief executive of David Macbrayne Ltd, said: “On a number of occasions now we have requested detailed information about the scoring process used for the Northern Isles tender process and have been disappointed in what has been received so far.
“We have been left with no option but to instigate legal proceedings until we can be confident the process was carried out in a manner compliant with relevant procurement legislation. As this matter is now subject of legal proceedings it would be inappropriate for us to comment any further at this time.”
Serco declined to comment. Highlands and Islands Tory MSP Jamie Halcro Johnston said: “It’s quite incredible that the SNP is being sued by one if its own quangos.
“When factored in with the completely unacceptable delays with the two new ferries being built, the delays on reducing fares to Orkney and Shetland and its refusal to meet its pledge on fair funding for interisland ferries, this really is turning into a fiasco.
“This is what happens when you have a nationalist government completely distracted by the constitution.”
Labour highlighted a previous Scottish Government commitment to award contracts for lifeline ferry services directly to public sector operators where possible.
Labour transport spokesperson Colin Smyth said: “This fiasco exposes the SNP’S mishandling of this lifeline ferry services contract.
“Their incompetence and opposition to public ownership has led to the extraordinary situation we now have of a Government being taken to court by its own company.
“Meanwhile, communities who rely on these services have no certainty on what is going to happen to their lifeline services.
“This chaos could have been avoided if the SNP had followed through on their commitment to scrap the wasteful and confusing tendering process and directly awarded lifeline ferry services to public sector operators.”
Highlands Green MSP John Finnie added: “I expect the Islands Minister to come before Parliament as a matter of urgency, explain exactly what is going on and how my constituents will be affected by this saga.”
Libdem Orkney MSP Liam Mcarthur said: “It is deeply disappointing that Calmac has chosen to go down this route. It is not clear what the basis for the legal challenge is but communities in Orkney and Shetland will be appalled at this latest development.”
Libdem Shetland MSP Beatrice Wishart added: “Procurement for the next Northern Isles contract has been hit by a number of unacceptable delays which does nothing to reassure people in the Northern Isles that the Government is committed to improving our lifeline ferry services.”