The Herald

SNP ministers sued by their own ferry firm

- By Tom Gordon

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.”

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