Government to save £5.5m buying ferries

Transport: Passenger vessels to join freight boats purchased this year

The Scottish Government says it expects to save around £5.5 million this financial year as a result of its purchase of the Northern Isles ferries.

The government bought the three passenger vessels Hjaltland, Hrossey and Hamnavoe last year after previously leasing them from the Royal Bank of Scotland.

Earlier this year, the two freight boats MV Helliar and MV Hildasay were also taken into public ownership. They were previously chartered from Fortress.

Minister for Energy, Connectivity and the Islands Paul Wheelhouse said the “recurring savings flowing from this investment are in the region of £5.5 million in 2019-20”.

Responding to a question f r o m n o w - r e s i g n e d

“This saving has been factored into 2019-20 budgets”

Shetland MSP Tavish Scott, the minister said: “This saving has been factored into 2019-20 budgets contributing towards maintaining a range of transport-related policies including reduced fares to and from Aberdeen and Lerwick and to and from Kirkwall and Lerwick, the continuation of the Air Discount Scheme rate at 50% and contributing to meeting wider cost pressures including those associated with inter-island ferry services and concessionary travel.”

Mr Wheelhouse said that taking five vessels into portfolio of government-owned Caledonian Maritime Assets Limited ensured that the ships are “available also the the the for long-term deployment on these routes to support the island communities”.

The opportunity to buy the vessels was not available prior to 2018-19.

The Conservatives’ Highlands and Islands list MSP Jamie Halcro Johnston said it would be “welcome” if the forecast savings come to fruition.

However, he said “these must be put to use for improving transport connections for the Northern Isles”.

“With more than a year having passed since the deadline, the SNP administration in Edinburgh has still not met its pledge for reduced ferry fares across the Northern Isles routes,” the MSP said.

“Island councils are still having to subsidise the costs of the inter-island ferries, despite a longstanding promise of fair funding. And ministers sit on their hands while serious disruption is caused to our air links.”

The next contract for operating the Northern Isles ferry service, meanwhile, is expected to be awarded by government agency Transport Scotland in August.

The eight-year deal is worth around £370m, but only current operator Serco NorthLink and the publicly-owned Calmac are in the running.

Photograph by Sandy McCook DEAL: The Hamnavoe alongside the harbour at Stromness in Orkney.