After 50 years, is this the death knell for CalMac?
●Beleaguered firm could face the sack ● £4m consultants to weigh up options ● Move may open door to privatisation
CALMAC could be sacked by the Scottish Government in a radical response to the crisis afflicting Scotland’s ferry network, The Mail on Sunday can reveal.
For decades, the state-backed ferry service has had a monopoly on routes across the West Coast, its distinctive red and yellow lion rampant logo a prominent feature of Scottish life.
But in the wake of crippling breakdowns, spiralling repair bills and fury from islanders regularly left without vital services to the mainland, this newspaper can disclose that in a desperate attempt by Ministers to overhaul the network, the company could lose the contract for running ferries.
Consultants have been drafted in to assess the future of CalMac, a move set to cost the public purse up to £4 million.
Turner & Townsend, a firm used to fix the hugely delayed and over-budget Edinburgh trams fiasco, will work out the legal, commercial and technical implications of continuing the Government’s contract with CalMac – and advise Ministers whether it would be best to award the job to another company.
It follows a damning report into Scotland’s ferry network published last year – Project Neptune – which criticised CalMac’s lack of long-term planning and a ‘sub-optimal’ approach to repairs and maintenance.
The move is set to reignite the debate about whether or not the ferry network should be privatised.
Last night, opposition parties expressed outrage that consultants would be weighing up the future of the Clyde and Hebrides ferries contract, rather than the
Scottish parliament.
Scottish Conservative transport spokesman Graham Simpson said: ‘The Scottish Government is spending up to £4 million to help it prepare the next Clyde and Hebrides ferries contract and yet have not said what kind of operating model they are seeking.
‘They promised to have crossparty discussions about this, having got the Project Neptune report done, which set out various options.
Islanders deserve to know if CalMac will get first refusal, if other operators will be considered, if councils could run services, or if the contract could be broken up.
‘Parliament has not been consulted on any of this, which is an appalling state of affairs.’
According to a contract uploaded by Transport Scotland, Turner & Townsend will be paid a maximum of £4 million for up to three years of work, when the current CalMac contract is up for renewal next year. A spokesman for the government body said: ‘External specialist legal advisers and specialist commercial and technical advisers have been appointed to support the preparation of the next Clyde and Hebrides Ferry Service (CHFS) contract. It is not uncommon to utilise specialist support on this type of complex, high-value project.’
A source confirmed Turner & Townsend would be assessing whether CalMac is a suitable contractor. The Scottish Government has previously ruled out privatising the routes but even if they are not privatised, another company could be brought in to run them.
It would be a significant change, given CalMac has been running boats across the West Coast for more than a century.
News of the company’s future as Scotland’s ferry operator being in jeopardy comes as Ministers have come under intense pressure over the ailing service.
Repair bills have topped tens of millions of pounds and island communities have been left virtually cut off from the mainland by a series of breakdowns among the vessels operated by CalMac.
Figures provided to the Liberal Democrats show it has spent £100 million on fleet repairs in the past five years alone. CalMac yesterday declined to comment.