Island ferry subsidies ‘unlawful’ firm claims

A firm claims a proposed £370 million contract to provide ferry services to the northern isles poses an “existential threat” to its market position.

Lawyers for Pentland Ferries told judge Lord Boyd that the Scottish Government is acting unlawfully in its plans to offer subsidies to attract companies to operate sailings between the mainland and Orkney and Shetland.

However, Pentland Ferries, which currently operates a service between Gills Bay in Caithness and St Margaret’s Hope in Orkney, believes the proposed £370m subsidy is unlawful.

It believes the proposal breaches strict European competition rules and if successful would force it to stop trading.

Yesterday at a judicial review at the Court of Session, lawyers for Pentland asked Lord Boyd to declare the proposal unlawful.